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05/11/1981 BOE - 00013222�� ; _.:� THE MINl1TES OF THE BQARD,OF REVIEW MEETI[yG �3F TIIE CITY COUfJCIL GF __ MAY 11, 1981 The City Counc�l met as the Board of Review and the meeting was called to order at 7 32 p. m. by Mayor Nee. PLEDGE OF ALLEGIANCE: Mayor Nee led the Council and audience in the Pledge of Allegiance to the Flag. ROLL CALL MEMBERS PRESENT: Mayor Nee, Councilman Fitzpatrick, Councilwoman Moses, Councilman Schneider and Councilman Barnette MEMBERS ABSENT: None P1ayor Nee stated the purpose of the 6oard of Review is to examine the equity of the Assessor's establishment of market value on a person's property. He stated the �Gouncil has some ab�lity to ad,7ust a proposed market value, either up or down, as a result of these proceedings. Mayor Nee stated any questions raised this evening may not be able to be resolved to the owners satisfaction and, therefore, it may be necessary to refer the �tem to the Assessor to give him a chance to examine the issue. ��layor�Nee stated it is important a proptrty owner make his appeal known at these proceedtngs in order to protect his further r�ghts of appeal to 6ther bodtes. Mr. Merv�n Herrmann, City Assessor, stated the Council has the right to raise or lower any particular property, as they see fit, after reviewing the facts. He po�nted out they cannot reduce the aggregate assessment more than 1%. Mr. Herrnann stated there are representatives from�.the County also present here this eventng to answer any questions. Mr. Herrmann explained any appeals will be recorded and the property owner will then protect his right to appeal further to the County or State, if they so desire. He stated, �f the issue isn't settled wtth the City, County, or State, the owner can appeal further to the courts. h1r. Larry Vogt, 1357 Fireside Drive, appeared before-,the Council and stated he felt the City's market value of $73,700 on his home was roughly $10,000 to $12,000 h�gher than what �s reflected in two appraisals he received, one from an appraisal consulting firm and one from a local real estate appraiser. Mayor Nee asked when the other two appra�sals were done on his home. Mr. Vogt stated one was done on April 21, 1981 and the other on March 14, 19�1. Mr. Mervin Herrmann stated the appraiser did go out last week, and at that time, could see ne reason to change the value of $73,700 placed on h1r. Vogt's home. Mr. Herrmann felt, in th�s case, he would like this appeal to go to the County for an outside appraisal of the property. Mr. Herrmann �ave the Council further information� on the year the home was built and the s�ze of the garage and home. Mr. Vogt stated bo�h appraisals he has give comparable sales figures of homes located in the close vicinity. ' , � a �� BOARD OF REVIEW MEETING OF MAY 11, 1981 PAGE 2 Councilman Schneider asked the value placed on the home last year, and Mr. Herrmann stated it was $62,000. Mr. Herrmann pointed out the biggest portion of increase was on the land value in that area. Mr. Vogt stated directly to the west of his home is a dou6le bungalow and across the street from his lot is a small commercial building. Mr. Herrmann stated he would like to see the appraisals Mr. Vogt has in � hts possession and he would be mostly interested in comparable sales figures regarding the year in which these homes were sold. Mr. Uogt stated the compara6le figures are for homes that have been sold in the last year, and he could provide the information this evening. Mayor Nee stated he felt staff should review th�s property and pointed out the Counc�l was aware of Mr. Vogt's argument and felt he had quite a convincing case. Mr. Geor e Wicklund, 101 Gtbralter Road, stated last year his home was assessed at 43,300 and this year it is at $50,5D0 which is over a 16-1/2i increase and ques�ioned how they arrived at this figure. Mh. Herrmann, City Assessor, stated the value on Mr. Wicklund's home went up 6% this year and�the land value went up 50%. He stated the previous value on the land was $10,400 and it is now $15,600. Mr. Wicklund asked if all similar properties were raised the same percent. Mrt Herrmann stated each part�cular lot was taken into consideration as its size and the area to come up with a uniform assessment. He stated, in certain areas, th�ngs have changed so the land had to be revalued. Mr. Wicklund asked when these increases were going to end. Mr. Herrmann .,tated it depended on what people will pay for real estate in the future. � Mr. Herrmann also explained the tax credit received for those persons who are 65 or older, based on their income. Mayor Nee stated the requirement of the Council is to establish what they feel the house would sell for, if it was��on the market. He stated the Assessor arrtves at the value by reviewtng what comparable homes sold for in the area. Mr. Wicklund stated he didn't doubt it would sell For the value placed on his home, but d�dn't think it was fair to charge these prices for homes. He questioned if values would go up next year. Mr. Herrmann stated he had to admit that citie� like Fridley, within close proximity of Minneapolis and St. Paul, have greater value because, with the price af gas, people do not want to drive long d�stances to the�r place of employment. Mr. Albin Mysla,7ek, 6430 Rtverview Terrace, requested his taxes be frozen at a value of $78,000 instead of raising it to $93,D00. htayor Nee asked Mr. Mysla,7ek if he felt the home would sell for $93,000 and he stated he paid this for the property, but wanted it valued at only $78,000 Councilman Schnetder explained, by law, the Council can only make sure the value the Assessor has placed on the property represents the true market value and felt if he purchased the home for �93,000, then �t must be worth � th�s amount unless something has happened that causes the value to be lower. Mr. Mysla�ek stated he wanted the value frozen at $78,000 6ecause he is ret�red and won't have the money to pay the taxes. Mayor Nee stated the Council does not have the authority to leave the value at $78,000, �f they feel the market value is $93,000. BOARD OF REUIEW MEETING OF MAY 11, 1981 PAGE 3 Mr. Mysla�ek felt, when a person is rettred, they should recetve a break in taxes and stated he would be sat�sfied if the taxes don't go up. Mayor Nee stated they cannot guarantee the taxes wouldn't increase because of all the taxing distri�ts. He po�nted out there were many other ag�ncies, besides the City, involved in determining what taxes would be collected. Mr. Lief Henr�ksen, 6434 Riverview Terrace, stated in 1975, his home was valued at 81,000 and today the value is at �120,000. He pointed out he w�ll not be able to afford to live in hts home when he retires. Mayor Nee asked i�1r. Henriksen if he would sell his home for $120,000. He stated the po�nt is that you cannot sell homes with the interest rates as they are today. He stated when the Assessor came to his home, even though he hasn't had any changes since he first moved into it, it was pointed out to him that the laundry room and furnance room were finished and the increase in value wouldn't hurt h�m as it would only be a few more dollars. Mr. Henriksen's concern ts what the value w�ll be when he rettres and if he can afford to live in h�s home. Councilman Schneider pointed out the Council can only determine if the value placed on the home is a fa�r value, based on comparable sales. Mlrs. Helen Ar ue, 6648 Channel Road, asked why the value of her home was ra�sed 8,900 fs°om $41,800 to $50,700. Mr. Herrmann, City Assessor, stated part of the �ncrease was because the breesewaY hz�lbeen finisheduhichrai§ed the value by $1,574 and the biggest increase was �n the value of the land from $16,200 to $22,000. f�lrs. Argue stated the brPesway cannot be used all year around. Mr. Herrmann stated this was true ana was taken into consideration in figuring the value. Mr. Herrinarin then f�arther explained how the value was placedonthis lot since it is an unusu�lly large lo±. Mayor Nee asked f�rs. Argue ifshP felt the property would sell for the value placed�'on it. Mrs. Argue stated she didn't know until she talks to a reaa�°r�r^. Mayor Nee stated staff would review the value placed on her home and;tt vdill come agatn before the Cow���l on �une 1, 1'1F31. Mrs. Argue also questioned what could be done about the condition of her neighbor's property. Mr. Flora stated this property owner has been contacLed and the C�ty was 9�ven a date when correct�ve action wouid be taken and the area improved. Mr. Ralph Truax 7880-7884 Elm Street, asked Mr. Herrmann to have his name recorded as having appealed as he wants more time to invest�gate the value placed on this property. hir. Joseph Valtinson, 5215 P�erce Street, stated the value placed on his home in 1979 was $72,860 and this year the value as of �anuary 2, 1981 is $101,400. Mr. Valtinson stated what he ts concerned about is the value placed on the improvements. He pointed out there is another house in his area that cost about $225,OD0 and the value placed on this property ts $129,000. He stated other homes in his area are valued at $69,000. Councilwoman Moses asked if houses in the area valued at $69,000 were similar to his home. Mr. Valtinson stated he has a6out 1,450 square feet and most of the homes are about 1,250 square feet. P�r. Ualtinson felt the value placed on his home was high, and it should be lower. Mayor Nee stated the staff would check into this further and come back with a report to the Counc�l attf�P�June 1, 1981 meeting. � , , ' , BOAR� OF REVIEW MEETIPJG OF MAY 11, 1981 PAGE 4 Mr. Richard Harris, 6200 Riverview Terrace, appeared before the Council re9arding the values placed on his properties in the City. He stated the property at 6200 Riverview Terrace had a value of $96,70D placed on it for last year and the new value ts $117,200 which is a 21;� or $20,500 increase. Mr. Harris felt this was a little high. Mr. Herrmann pointed out this �s a river lot and the lot value went from $17,200 to $32,900. Mayor Nee asked Mr. Harris if he felt they had the wrong market value. Mr. Harris stated he honestly doesn't think the property-ts worth that and could see about $107,000, but not $117,000 � Mr. Harris felt the problem is all the papers filed �n Anoka County show about a 12% to 15% additional charge because of the mortc�age company's charge to the-owner. He pointed out if a home sold for $200,000, it would also show another $30,000, which represents 15% of the selling price for the points and this appears as part of the mortgage. Mr. Harris further stated the value of the property at 6210 Rtver�diew Terrace has been raised by $18,000 from $86,000 to $104,000, and felt this value was also high. Mr. Harris raised the question of the value of his property at 7765-7795 Main Street. He stated the�,value this year was $206,500 which is an increase of $40,000 or 19.4°! �n a one year per�od. Mr. Herrmann stated, basically, it was the land that rose in value and the value placed on the land is $77,600 Mr. Harris pointed out there is about 60,000 square feet in each of those parcels, and felt land of this nature was going for about 80 cents a square foot. Mr. Harris stated the property at7701-1-77D3 Main Street also received an increase and questioned what percent of the new addttion is put on this year's taxes. Mr. Herrmann, City Assessor, stated 50% or $71,�,00 is for the new addition. �°1r. Harris questioned if the balance was for the land to which Mr. Herrmann answered in the affirmat�ve. Mr. Harris stated the property at 7710-7720 Main Street had an 11.6% increase in value from $308,600 to �344,300. He pointed out, however, the land across the street had a 19% �ncrease in value. Mayor Nee stated staff would revtew the items brought up 6y Mr Harris with a report back to Council at the �une 1, 1981 meeting. Mr. Harris stated he would like a ruling on the matter of points as he honestly feels the valuation, because of this system, are pro6alby inflated 10% to 15%. Mr. Edward Frogale, 64&0 Rtverview Terrace, stated his lot is assessed at $27,000 and his front yard has ten inches of blacktop below the 9rass as �t was once a street. He stated the value last year was 75,000 and it has now gone to $91,9D0. ' Mr. Frogale stated he could not see a value of $27,200 placed on his lot because of the situatton in his front yard and his hoine is not on the river �- `� � BOARD OF REVIEW MEETIPJG OF MAY 11, 1981 PAGE 5 Mr. Herrmann stated h�s office felt they should take another look at P1r Fogale's property because there seems to be a problem with the value placed on the land, but not the home. He stated the land value has risen from �14,000 to $27,000. Mayor Mee stated staff would revtea� thts matter, with a report 6ack to the Council at the meeting on June 1, 1981. ���r. Herrmann requested the Counctl receive a letter from Robert W. Tivnan, Tax Representative for McDonald's, protesting the value placed on this property and tndicat�ng he wanted additional time to review it further. MOTION by Councilwoman Moses to receive the letter dated May 4, 1981 from Robert W. Tivnan, Tax Representat�ve from McDonald's. Seconded by Councilman Schneider. Upon a vo�ce vote, all voting aye, Mayor Nee declared the motion carried unanimously. ADJOURNMENT• MOTIOfJ by Councilman Barnette to conttnue the Board of Review Meeting to June 1, 1981. Seconded by Councilwoman Moses. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously and the Council ad,7ourned this port�on of the Board of Review Meeting at 9�}0 p. m. Respectfully subm�tted, Carole Haddad �}ecordtng Secy. Approved: June 1, 1981 C� � �' `` �� �, Willtam J. Nee Mayor , ' 1