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06/01/1976 - 00014798� � CONTINUATION OF THE BOARD OF REVIEUI MEETING OF MAY 24, 1976 (JUNE l, 1976) The annual Board of Review Meeting was continued at 7 35 p m on June Councilwoman Kukowski chairtng the meeting in the absence of Playor Nee �oined with the Board of Review in givinq the Pledge of Alleq�ance ATTENDANCE i� .�a 1, 1976, by . The audience Roll call was taken. Present were Playor Pro Tem Kukowski, Councilman Hamernik, Councilman Starwalt, and Councilman Fitzpatrick, Nas�m Oureshi, City Planaqer, Mervtn Herrmann, City Assessor, Leon P4adsen, Deputy Assessor, Walter Plulcahy, City Appraiser, and Gordon Starkey, representinq the Anoka County Assessor's office MOTION by Councilwoman Kukowski to approve the minutes of the 6oard of Rev�ew meeting of May 24, 1976 Seconded by Councilman Starwalt Upon a voice vote, all voting aye, the motion was carried unanimously. Mr. Herrmann explained that the Board of Review at �ts meeting on P9ay 24 had requested the Assessor's office to prepare fact sheets on certain properties on which questions had been raised, and to present these fact sheets and the�r recommendations regarding the valuattons on these properties to the Board of Review at thts time ITEM N0. 1--LAMAl1R, INC., 5601 EAST RIVER ROAD (AUDITOR'S SUBDIVISION NO 78, PARCEL 2885, PLAT 54159; AND SECTION 22, PARCEL 200, PLAT 539221 Mr. Herrmann mentioned that the land for Wickes sold for $1.26 per square foot �n November, 1970, and GTE Sylvania sold for $1.24 per square foot in November, 1974 Wickes is both a warehouse and a retail store and GTE Sylvania is a warehouse only. At this time LaMaur, Inc does not have thetr property ful'y utilized and actually less than fifty per cent of thetr land is beinq used Normally vacant property is given a reduction towards the cost of development of the property compared to property already developed. For this reason the Assessor's office recoinmended a reduction of $142,500--a$1D,400 reduction on Parcel 200, Section 22, and a$132,100 reduct�on on Parcel 2885, Auditor's Subdivision No. 78. This reduction amounts to approximately three per cent of the total valuation. Mr. Herrmann also mentioned that LaP9aur, Inc. has not been able to obtain complete roof insurance as their roof is in need of addtt�onal work to make it �r�surable against wind damage. At this time they have only heen able to insure the roof with a$250,000 deductible clause. A further reduction of $180,000 could be allowed due to this fact, but it would not affect their actual taxes next year For this reason the Assessor's office dtd not recommend this further reduction at this t1me, but said the condit�on of the roof will be taken into consideration when th� valuation is placed on the property for January 2, 1977. Mr. Wallace Johnson, representing LaPlaur, Inc., mentioned the fact that a portion of their property has been sold as an easement to Anoka County for roadway purposes, and LaMaur and the Assessor's office had already agreed on a reduction due to th�s situation, so actually the reduction in value is only about 3120,000 after the value for the roadway has been removed from their total valuation Mr Johnson said that Laf1aur, Inc agrees with the Assessor's recommendation. MOTION by Councilman Fitzpatrick to concur with the recominendation of the Assessor's office and allow a reduction of $1n2,500 on the total valuation of LaMaur, Inc 'Seconded by Councilman Hamerm k Upon a voice vote, all votinq aye, Mayor Pro Tem Kukowski declared the motion carried unanimously. ITEM N0. 4--HENRY ZIMMER, 4021 CALIFORNIA STREET NORTHEAST (LOT 3, 6LOCK l, i�JILSON ADDITION, PARCEL IOD, PLAT 59592) P4r. Herrmann stated that an appraiser from the Assessor's office had made a phys�cal reappraisal of this property and based on the locat�on of the nroperty and the neighborhood, a 31,000 to $2,000 reduction in total market valuation is recommended. h10TI0N by Counctlman Fitzpatrick to allow a$2,000 reduction in the estimated market value on this property because of the poor location Seconded by Councilman Hamern�k. Upon a voice vote, all voting aye, Mayor Pro Tem Kukowski declared the motion carried unanimously. q r� CONTINUATION OF BOARD OF REVIEW MEETING ITEM N0. 7--RICHARD HARRIS PAGE 2 MDTION by Councilman Starwalt to table consideration on these properties tt11Mr Harris appeared or untii all other items under consideration at this meetinq have been taken care of. Seconded by Councilman Hamernik Upon a voice vote, all voting aye, Mayor Pro Tem Kukowski declared the motion carried unanimously. (Mayor Nee arrived at 7 45 p.m.) ITEM NO 9--GABRIEL GIANCOLA, 1D9 HARTMAN CIRCLE (LOT 3, BLDCK 2, SANDHURST AD�ITIDN, PARCEL 520, PLAT 58945) ITEM NU. 10--JOHN AND CAROL BEAULIEU, 129 HARTMAN CIRCLE (LOT 8, BLOCK 2, SANDHUP.ST ADDITION, PARCEL 720, PLAT 58945) ITEM NO 11--RAYMOND J. ANDERSON, 125 HAP.TP1AN CIRCLE (LOT 7, BLOCK 2, SANDHURST ADDITION, PARCEL 680, PLAT 58945) The Board of Review debated whether these items should be tabled in case any of the property owners concerned might yet appear at the meetinq, 6ut decided to consider these properties because they felt they had no further questions to ask the property owners Mr. Herrmann stated that due to the longer time it seems to take to find buyers for properties located in a hiqher traff�c area, it could perhaps be �ustified to allow a five to eight per cent reduction in estimated market value, but it would not affect the actual tax they are pay�nq in 1976 based on the limited value Councilman Hamernik questioned if there is any need or ,7ustification for a reduction in the estimated market valuations on these properties, as comparable sales in the area were h�gher than the valuations placed on the properties by the Assessor's office. Mr Herrmann said on the market for put up for sale. � that these properttes do take lonqer to sell and are somettmes put a period of time, then are taken off the market, and later are aga m � Mayor Nee questioned why, when an actual property sold for less than the esttmated market value placed on the property by the Assessor, should the Valuation not be reduced to the amount of the selling price. He felt tt ts unfair to haVe a valuation on a property higher than the actual selling pr�ce because the sellinq price was what the property was worth to the owrier. Mr. Qureshi pointed out an example whereby identical townhouses in the Innsbruck fdorth area have sold for as much as $�,000 difference Wtthtn any particular area, some properties sell for more than the estimated market value and some se11 for less. Of the three properties be�ng d�scussed, Councilman Starwalt pointed out that although one property sold for less than the estimated market value, another sold for more than the valuation Mr. Herrmann said that all of the homes were well constructed. Mr. Madsen pointed out that if every property was given a valuatton based on the selling price, there would be no equality throughout the City. All State and appraisal orgam zations are firm in their belief that valuations must be based on a num6er of sales of comparable properties and not on any one individual sale, because there are so many individual factors involved in each sale. There will be an actual physical reevaluation of these properties in 1978. Counc�lman Fitzpatrick felt that even thouc�h all the property owners in this area did not appear at the Board of Review meetin9, it would be unfair to allow a reduction � ina selected few properties and not reduce the valuation of all properties affected by the same factors of no�se and traffic His feeling was that particular attention should be given in appraising all properties wh�ch are located in hiqh traffic and noise areas, noting also that they take longer to sell, so that none of these properties are overvalued Mr Herrmann said that Um versity Avenue, East Rtver Road, Highway No. 65, and Freeway No 694 have been considered as hiqh traffic areas, Plississippi Street was examined particularly one year because of complaints of the traffic, but it was discovered that selling prices were above the esttmated market valuations so this did not prove to be a factor Councilwoman Kukowsk� asked if the 6oard of Rev�ew felt that any one individual property could be sinqled out as having a qreater problem, and P1r. Herrmann repeated that all of the properties concerned were m ce homes CONTINUATION OF BOARD OF REVIEW MEETIPIG PAGE 3 MOTION by Councilman Fitzpatrick to concur with the Assessor's or7q�nal market valuations on these properties, but that the administration be instructed to review the market value of all homes affected by thorouqhfares, based on the problems that have been discussed at the Board of Review meeting Seconded by Councilman Starwalt Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unam mously Mayor Nee requested that a letter be sent to each of the three property owners under discussion to advise them that no reduction was made in their present valuation � because it would have made no difference in their taxes for this year, but that a study is to be made of the valuations placed on all homes located on high traffic thoroughfares to be sure that the properties are not over-valued ITEM NO 14--GEORGE BACDN, 1336 HILLCRES7 (LOTS 21 AND 22, BLOCK 3, MOORE LAKE HILLS AD�ITION, PARCEL 1250, PLAT 56886) Due to the fact that in revtewtng Mr. Bacon's property appraisal card an error was discovered in selecting the proper rate on the 1975 assessment, the recommendation of the Assessor's office is to reduce the value of this property from $53,560 to $51,150, a reduction of $2,410. This is the amount of the over-valuation The error will not affect the tax payable in 1976 because the limited value is still less than the corrected market value. MOTION by Councilman Starwalt to reduce the estimated market value of this property by $2,410, which will correct the error made in the rate Seconded by Councilman Hamernik. Upon a voice vote, all votinq aye, Mayor Nee declared the motion carried unantmously ITEM NO 15--MARVEY MAYER, 7431 ABLE STREET NORTHEAST (LOT 13, BLOCK 2, NAGEL'S WOODLANDS AQDITIQN, PARCEL 1950, PLAT 569861 Due to the fact that this double bunqalow was purchased �n 1974 for $36,500 and we now have a market value of $34,720 with a limited value of 333,665, the Assessor's �office recommends no chanqe in the estimated market value of this property. They are still seven and one-half per cent under the oriqinal sellinq price Councilman Starwalt stated that he looked at this property and had talked to Mrs. Mayer He satd that upon seeing the property, his own opinion was that the value was not too high for this double bungalow and he had discussed thts with Mrs Mayer MOTION by Councilman Hamernik to concur w�th the recommendation of the Assessor's office and retatn the original estimated market value on this property Seconded by Councilwoman Kukowski. Upon a voice vote, all voting aye, Mayor Mee declared the mot�on carried unanimously ITEM N0. 7--RICHARD HARRIS MOTION by Counctlman Hamernik to discuss at this time the commercial properties belonging to Richard Harris which were tabled earlier in the meet�nq. Seconded by Councilman Fitzpatrick. Upon a votce vote, all voting aye, Mayor Nee declared the motion carried unanimously 13, 15, AND 17 - 77TH WAY NORTHEAST (LOTS 11 AND 26-37, BLOCK 8, ONAWAY ADDITION, PARCEL 2020, PLAT 57189) 7710 AND 7720 MAIN STREET NORTHEAST (LOTS 1-10, BLOCK 8, ONAWAY ADDITION, PARCEL 1830, PLAT 57189 '7701 MAIN STREET NORTHEAST (LOT 5, BLOCK 3, EAST RANCH ESTATES 2ND ADDITION, PARCEL 140, PLAT 55754) Mr. Herrmann said that two recent sales of comoarable land in this area indicate an average current going price of $1 DO per square foot includinq all streets and util�t�es paid. The 1976 values on land for these propert�es rannes from �.�D to $ 50 for lots which have structures. For this reason, the Assessor's office recommends no reductions on the estimated market values placed on these properties Mayor Nee questioned why smaller commercial lots have a higher square foot value than larger lots, and this being the case, why LaMaur, for instance, has not dtvided their land. Mr. Herrmann answered that when he first qot into appraising he had wondered about this same th�ng He said it �ust appears that some owners prefer to sell the land all at once and settle for a profit, rather than divide the land and perhaps have to wait as long as ten years before all the lots are sold and all the profit realized, plus the extra costs of platting, interest, taxes, etc. � CONTINUATION OF BOARD OF REUIEW P7INUTES PAGE 4 Mr. P1adsen mentioned that Mr Harris said he was qoing to bring in to the Assessor's office the facts and figures showinq the actual cost of the newest building on his property, 6ut that he never did come into the office or call. MOTION by Councilman Hamernik to concur with the recommendattons of the Assessor's office and make no changes �n the estimated market values plared on these properties. Seconded by Counctlman Starwalt Upon a voice vote, all votinq aye, Mayor Nee declared the motion carr�ed unanimously. h1r. Madsen mentioned that he had met with the representat�ve from Wickes and had gone over the information upon which the Assessor's office had arrived at the estimated market value for Wickes. Their representative told P1r. Madsen that he was qoing to appraise the Wickes property, and that if thev were not in a9reement with the Assessor's valuation that he would again contact Mr. Madsen. Mr. Pladsen has heard nothtnq further. A Mrs Nelson who works in the real estate business was asked if she had anythino to discuss with the Board of Review She explained that she was present to see what decision the Board of Review made as far as the houses located on East River Road, because she will be listtng a house very soon that is located on East River Road approximately one block from these homes. Mrs. Nelson was asked to give her opinion as to a sellinq price for homes located in this area. She said in her opinion these homes should have a reduced market value because she considers the heavy traffic, the noise, and the fumes a definite drawback which would have a marked effect on a sellinq price Playor Nee asked Mr. Herrmann if a record is kept of selling prices of vacant land as it is or properties which have extstrng structures. Mr Herrmann replied that we do keep a record of all sales of vacant land which are recorded at the County, but it is not as complete a record as that of nroperties with existinq structures, because many times land is purchased under a contract for deed, and is not recorded at the County so we have no way of knowin� that a sale has been made. There are a few exceptions, but P1r Herrmann said that about the lowest priced residential lot with water, sewer, and paved streets in Frtdley at the present time is about $8,500. P10TION 6y Councilwoman Kukowski to ad�ourn the continuation of the meetinq of the Board of Review. Seconded by Councilman Fitzpatr�ck. Upon a voice vote, all voting aye, Mayor Nee declared the meetino of the Board of Review ad,7ourned at 3:30 p.m., �une l, 1976 � Respectfully submitted, � �� L'(�-�ZL�i �,,a� Patricia Sykes �������,�`- �' ` � William J. Nee P1ayor � ' �