05/24/1982 BOE - 00012926�
THE h1INUTES DF TNE BOARD OF REVIEW OF THE CITY OF FRIDLEY, MINNESOTA
MNY 24, 1952
The Meeting of the Board of Revtew was called to order by Mayor Nee
at 7�32 p. m.
PLEDGE OF ALLEGIANCE:
Mayor Nee led the members of the Board of Review and the audience �n
the Pledge of A1legiance to the Flag,
ROLL CALL:
MEMBERS PRESENT
P4EMBERS ABSEfJT
Mayor 14ee, Councilman Qarnette, Councilman
Hamerm k and Counc�lman Fitzpatrick
Councilman Schneider
Mayor PJee stated the purpose of this meeting is for the Council to meet
as the 6oard of Rev�ew in regard to quest�ons raised by property owners
on the market value established for properties tn the City.
He stated any questions property owners may have regarding the value
placed on thetr property should be raised at thts meeting.
Mr. Std Inman, City Clerk, stated this year there were a number of
questions from the property owners regarding taxation �n the C�ty.
He stated some of the taxpayers had the idea the City could levy
taxes as they wished, however, th�s is regulated by a law passed by
the Legislature.
Mr. Inman also pointed out that in 1982, the homestead credit did not
rise and the effect this has is, as taxes increase, the taxpayer's share
also �ncreases.
� Mr. Inman stated the assessed value, based on market value, is set by
State law. He further stated the C�ty's m�ll levy is applied to the
entire City, but there is a stgnificant difference �n the levy for
school d�stricts wlth�n the C�ty.
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Mr. Herrmann, City Assessor, stated each year the City has to physically
reappraise at least 25% of all properties, and th�s year that area was
6etween Mtssiss�ppi Street and 69th from the east boundry to the rail-
road tracks and west of the railroad tracks from 61st to ,7ust north of
Rickard Road.
hir. Herrmann stated they are also required to re-evaluate property
where any improvements have been made.
P1r. Herrmann thanked the Council for taking the �n�tiative to meet as
the Board of Review as some communities have appo�nted other persons
to undertake this task. He stated he believed the Council has an under-
standing of both the Assessor's posit�on and the taxpayers' position.
Mayor Nee stated the power of the Board of Review main1y relates to
whether or not the value placed on a person's property fairly reflects
the market value. He stated if, after thts meeting, the pr°op�rty owner
�s not sattsfled with the Board's dec�s�on, they w�ll have the right to
appeal to the County and posstbly th� state.
MR. WILLIAM DOYLE - 6551 OAKLEY DRIVE:
P7r. Doyle stated he purchased his home about m ne months ago for $95,000
and the list prtce was $100,000. He stated in discussions with the
realtor, who represented the sellers of his home, he was told the market
value placed on the home was from $94,000 to $96,000.
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Ne stated he has a current estimate from a realtor saying the house
would sell, at most, for �100,000. He stated he has two official
documents to this effect if the Council wished to review them.
Mr. Doyle stated the Assessor's value placed on his home is �98,7D0
whtch is nearly 100! of the market value. He stated he was told the
assessor's value is 85% to 90%0 of the market value,
Mr. Doyle felt the calculations to establish the value were made
based on a formula and the location was not considered. He stated
he was told his home would sell for more tf it was �n a different
locat�on. He pointed out the average assessed va7ue of homes in his
area is 361,80D.
Mr. Herrmann stated he had talked with Mr. Doyle and the average value
of the homes �n the area is $61,800, however, another home has a value
of �87,600.
Mr Herrmann stated the location was taken into consideration at the
time the property was assessed which amounted to a lesser rate per
foot. He stated the change in value from last year was from $98,700
to $99,700 or a$1,000 increase, and would recommend the County make
an apprasial of this property.
Mr. Leone, County Assessor, stated they have a formal application
from Mr. Doyle to review this property as of January, 19�1. He stated,
if they come up with a reduction, it would be reflected in the 1982
assessment.
Mayor Nee asked �f the Board of Review had the power to reduce the
value.
Mr. Herrmann stated it would be in their power to do this, �f they so
desired.
MOTION by Councilman Hamerm k to set the market value of the property
at 6551 Oakley Street at $95,000. Seconded by Councilman Barnette.
Upon a vo��ce vote, all voting aye, Mayor Nee declared the motion carr�ed
unanimously.
MR. WILLIAP1 TURNQUIST - 7601 BRIGADOOfJ PLACE-
P1r. Turnyuist stated he felt he was not given a fair valuation on h�s
home. He stated when he first recieved his notice regarding the assess-
ment, he contacted the Assessor's Office and was told they might have
miscalculated, however, he was later contacted and told all the figures
did check out.
Mr. 7urnqu�st s�tated he purchased h�s home over a year ago and paid
$91,900 and the market value �s at $91,800 which is 99.9% of the price
he pa�d for the home. He stated he was told the assessed value should
be approx�mately 90% of the market value, and felt he shoultl be assessed
at 90°% or 93! of the market value which would lower hts Assessor's market
value to approxTmately �85,000.
Mr. Turnquist gave several comparisons of other homes in his area where
the assessor's value averaged 87% to 90% of the purchase pr7ce of the
home.
Mr. Herrmann stated Mr. Turnquist's home is rated as a B- home and the
homes in that area are very well built.
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He stated there is quite a fluctuation for the area, as one home is at
107% and one at almost 102/, and felt the value placed on Mr. Turnquist's
home was a true market value.
MOTION by Councilman Fitzpatrick to refer the matter of the value placed
on b1r. Turnquist's property at 7601 Br�gadoon Place to the City Assessor's
Office for further review and report. Seconded by Councilman Barnette.
Upon a voice vote, all votrng aye, Mayor Nee declared the mot�on carr�ed
unanimously.
� Nlr. Madsen, of the City Assessor's Office, stated there are a number of
definitions of market value which would be that price in dollars agreed
upon by a 6uyer and seller knowledgable of all the uses to which a
proper•ty can be put and acting under no undue pressure. He stated a
specific selling price wouldn't necessartly 6e recognized as market
value, but if you get a certain number of sales on like properties,
you can probably take an average.
MR. 4dILFRED CHICHY - 6950 HICKORY DRTVE:
It was noted that Mr. Chichy had made inquiry regardtng the value placed
on hts property as he felt �t was too high.
PhR. TaNY NQCKLOW - GEORGE IS IN FRDDLEY:
Mr. Tony Nicklow, owner of George is tn Fridley, stated their taxes have
more than doubled in the last three years and would like to have th�s
checked, He stated in 1978 the taxes were $1D,300 and this year they
were $21,100,
Mr, Herrmann, City Assessor, stated �n 1980 there was an increase of
$36,000 for new construction and in 1981, there was nothing new, but the
value changed because of the new construction He stated the value this
� year increased only 3%.
Mr. Herrmann stated what Mr. PJicklow is referring to is the taxes he is
paying this year which is based on last year's value, however, he did
not come in last year to protest the value placed on the property. He
stated the only way this could be changed is to go to the County for a
review.
Nayor nee stated the only thing the Board of Review can consider now is
if the value for 1982 is a fair market value. Mr. Micklow felt he would
like this market value reviewed,
N10TION by Councilman Fitzpatrick to refer this matter of the value placed
on George's �n Fridley to the City Assessor's Office for further review
and report. Seconded by Councilman Hamerm k. Upon a voice vote, all
voting aye, Mayor Nee declared the motion carried unantmously.
RILL NICKLOW - SNOREW00� INN
Mr Nicklow stated every four years the C�ty reviewed the value of the
properties, however, every year they are assessed at a h�gher value and
pointed out they haven't done any improvements in the last several years.
Mr. Herrmann, C�ty Assessor, stated every year they have to reassess 25%
of the Ctty, but the other 75% is also read,7usted.
, P9ayor Nee asked Mr. Nicklow if he felt the value placed on his property
of $483,700 was fair or if he wished to file a protest.
Mr. Pdtcklovr stated he felt this was reasona6le and wouldn't file a protest.
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PIINUTES OF THE BOARD OF REVIEW
MR. DENNIS ROELKE - 8215 RIVERVTEW TERRACE.
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Mr Roe7ke stated he has six lots and what the City d�d �n 1982 was
div�de off two of the lots and called them a buildable lot. He stated
he understands this isn't a buildable size �n Fridley, antl would need
a variance 6efore he could possibly build on that lot.
Mr. Quresh�, City Manager, stated the�City has allowed construction
on 50 foot lots in the Riverview Heights area.
Mr. Roelke stated these lots are his backyard and he doesn't want to
6uild on any of it and was here to protest the fact that they have
separated the parcel.
Mr. Herrmann stated, basically, for any changes by the Board of Review,
Mr. Roelke should have been here last year. Mr. Roelke stated he wasn't
aware he was being �taxed separately unt�l he received his tax notice.
Mr. Herrmann stated Lots 23 through 26 were constdered as one lot and
Lots 21 and 22 were considered as a buildable lot, however, since they
are not built on a 15i reduction was given.
Mayor Nee asked how much of the value is the presumed building site.
P1r. Herrmann felt if it was valued
be $4,000 to �5,OD0 less than the
bu�ld�ng sites.
as one parcel, it probably would
value placed on it as two separate
MOTION by Councilman Fitzpatr�ck to refer the matter of the value
placed on the property at 8215 Rivervtew Terrace to the City Assessor's
Off�ce for further review and a report. Seconded by Councilman Barnette
Upon a vo�ce vote, all voting aye, Playor Pdee declared the motion carrted
unanimously.
MR. R1IKE FALCO - 5605 W. 6AVARIAN PASS:
Mr. Falco stated his main ob�ection is the 14% increase from 1981 to
1982 and pointed out it was done in a recessionary year when property
values were going down and not up.
Mr Falco stated he paid $86,330 for his townhouse, but 54,650 of that
was for items such as washer, dryer, etc. wh�ch �s not included in
market value of a home.
Mr. Herrmann stated the values were $62,E00 for 19�2 and �71,300 for
1982.
Counctlman Barnette asked h1r. Falco if he would sell his home for
$71,300. Mr. Falco stated he wouldn't like to, but if it was necessary
for him to sell today and he had to r�ove, he d�dn't think he would get
this price.
Councilman Barnette stated what they are reviewing is if the value
placed on his property is fair and equitable.
Mr. Falco felt there shouldn't be another 6% increase after the increases
of 14% frora 1981 to 1982 and a 28% increase in pr�or years.
Mr. Falco stated he saw figures which showetl 1982 sales of homes and
out of these 25 sales, only five were appra�sed higher than his townhouse
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Plr. Madsen stated a sigm ficant factor in this siudy showed that values
of properties are still going up m Fridley, even though there are fewer
sales.
Mr. Falco stated �t seems ominous that out of these 25 sales, four-fifths
are under $71,000.
Mr. Qureshl, City Manager, stated Mr, Falco can seek rev�ew by the City's
Assessing Department or could have a review by the County Assessor's Office.
Mr. Falco stated he dtdn't des�re to go to the City again as they have
already taken a stand.
MOTION by Counc7lman Fitzpatrick to re�er th�s matter of the value placed
on Mr. Falco's property at 5605 W. Bavarian Pass to the County Assessor's
Office. Seconded by Councilman Barnette. Upon a voice vote, all vot�ng
aye, Mayor Nee declared the motion carried unan�mously.
MR. LEIF HENRIKSEN - 6434 RIVERVIEW TERRACE.
Mr. Henrlcksen stated he felt his home was overvalued by �a7,4��. He
stated he wished to pay hts fair share of taxes, but felt the value
should only be �120,000.
Mr. Herrmann, City Assessor, stated he felt Mr. Henriksen's home was
worth the value of $127,400 placed on his property.
Councilman Barnette asked if anyone saw the art�cle in the paper on
Play 20 on how communities rank, as far as taxes, and po�nted out that
Fridley was one of the lowest in comparison with other communtties.
MOTION 6y Gounc�lman Fitzpatr�ck to refer this matter ofi the value
placed on the property at 6434 Rtverview Terrace to the County Assessor
� for rev�ew. Seconded by Councilman Barnette. Upon a vo�ce vote, all
voting aye, Mayor Nee declared the motion carried unaniinously.
MR. AL6IN MYSLAJEK - 6430 RIVER�IEW TERRACE
Mr. P1ysla,7ek stated he didn't want his taxes to go up next year and if
this keeps up, he w�ll have to move.
Mayor Nee pointed out the taxes aren't set at th�s meeting, but the
Board of Review only determines if the value placed on property �s a
fair market value.
h1r. Mysla,7ek stated he would like to request a review of his property
and the value placed on it.
MOTION by Counci7man Barnette to refer the matter of the value placed
on Mr. hiyslajek's property at 6430 Riverview Terrace to the City As�essor
for further r�view and a report. Seconded by Councilman Hamern�k. Upon
a votce vote, all vot�ng aye, Mayor Nee declared the motion carried
unantmously.
MR. JEROME BANICK - 1331 MECJOWP100R:
It was noted that Mr, Banick had made inquiry regarding the value placed
on his property.
� P4RS. RLiH NORTON - 1251 NORTON:
Mrs. Norton stated she was assessed for a basement which she does not
have, but this matter had already gone to the County and she received
a let�er from them regarding a chanqe in her valuat�on.
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Mrs. Norton stated the value placed on her property is �51,2D0 and she
felt this was high because she doesn't have a garage or a basement.
Mr. Herrmann, C�ty Assessor, stated they are sure of the�r figures and
have taken everything into account in determining the market value for
this property. He stated they recognize it doesn't have a basement
and would be using a lower rate per square foot, as well as considering
the age, the depreciation, and also taking �nto account it doesn't have
a garage, fireplaces, or a�r condition�ng. Mr. Herrmann stated the
home was re-valued last year and this year the value was raised 6�.
He also pointed out that Mrs. Norton �s �n School D�strict 16 where
there was a significant increase.
Mrs. Norton stated she fe]t the value was high and would like a further
rev7ew.
MOTION by Councilman Fitzpatrick to refer the matter of the value p7aced
on Mrs. Norton's property at 1251 Norton to the City Assessor's Off�ce
for further rev�ew and report. Seconded by Councilman Hamernik. Upon
a voice vote, all voting aye, Mayor Nee declared the motton carried
unanimously.
MR. RICNARD HARRIS - 620D RIVERUIEW TERRACE:
Mr. Harris stated he didn't receive notices for some of his properties
and asked the City Assessor to give him the f�gures on the values.
Mr. Her rn�ann, City Assessor, stated the market value for h�s home was
�121,100; the property on 77th 41ay was $265,000, the �roperty at 7701
Dla�n was $397,800, the property at 7765 P1ain was $253,900, and the
property at 7710 Ma�n tivas �354,600.
Mr. Flarris asked as of January 1, 19�1 at what percentage they assessed
the new addit�on at 7701 Main Street. Mr. ��adsen stated it was assessed
at 50% and as of January 1, 1982, assessed at 100%.
Mr. Narris stated the increase of 5107,OD0 in the value he didn't realize
reflected only 50; of the total. He stated the total cost of the building
was �ust over $100,000.
P1r. Harris stated 7701, 7703, 7731, and 7741 Main Street �s all one parcel
and the value went from 5306,000 to $397,800.
Mr. Harris stated at 7710 MaTn Street the value went from $344,000 to
$354,000, or an increase of $1D,000, and felt they didn't do that much
in improvements.
Mr. Harris stated �n reference to property at 7710, 7720, 7780 and 7790
PTa�n Street, a builet�n prepared eiudes io the fact that the land ts being
valued as if it could be built on up to 40%. He asked if he would be
allowed to build to 40� on that parcel,
Mr. Harris stated �f the Council would look favorably on his buildin5 to
th�s extent, he wouldn't have a problem with the reasoning, however, if
they don't look on this favorably, he would then have a problem with the
f�gures.
Mr. Qureshi, Crty f9anager, stated the City can't guarantee any parce,l
could be built to 40% as you have to take into consideration setbacks,
parking, and code requirements.
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MINUTES OF THE BOARD OF REVIEW PAGE 7
Mr. Harris stated if he was going to be taxed for this, he felt building
should be allowed or else not reflected in the taxes.
h1r. Narr�s stated he was d�sturbed in the way the notices were sent out
and addressed to "occupant" rather than the name of the property owner
and the fact, �n some cases, he never did receive a notice.
Nr. Harris stated since the Ciiy feels he has such valua6le property,
somethtng should be done to protect it. He stated they have Geen having
� many problems in the area involving destruction of property and it is
beCOming a standing �oke wtth the neighborhood that if you go up there
after 6:00 p. m. you never see a patrol car. He asked when they could
nieet regarding the problems in that area.
Councilman Hamernik stated this was the first he has heard about the
pro6lem and wasn't aware there was a s�tuation ltke this in his ward,
He stated he would like a chance to discuss it w�th some of the admin-
istration and get back to Mr. Harris and will try to do so before the
end of the week.
MOTION by Councilman Hamernik to refer the matter of the value placed
on the parcels at 7701 Main Street to the City Assessor's Office for
rev�ew ac�d report. Seconded by Counc�lman Barnette. Upon a voice
vote, all vot�ng aye, Mayor Nee declared the motion carried unanimously.
R, h1IKE NELLER - 8245 RIVERVIEW TERRACE:
Mr. He71er questioned the value on an unbuildable lot wh�ch went from
$2,600 to $4,800 and why there was such a great difference in the value
of the lot, as compared with the home value.
��tr. Herrmann stated land values increased substantially, however, they
could review it.
� h1�TI0N by Counc�lman F�tzpatr�ck to rev�ew the matter of the value placed
on this property at 8245 Riverview Terrace and report back on June 14,
1982. Seconded by Counc�lman Hamerm k. Upon a voice vote, al1 voting
aye, h1ayor Nee declared the motion carried una m mously.
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MR. R06ERT MIKULAK - 8241 RIVERVIEW 7ERRACE_
Mr. Mikulak stated land values �n the Riverview Heights Addit�on increased
drastically as compared with other areas in the City.
hir. Herrinann stated the area was valued in 1972 and the land wasn't
revalued until 1982 and the �mprovement of the area during that nine
year period ls very lmpresslve.
Mr, f+likulak stated his concern, basically, is the land value increase and
��ranted facts as to why it has increased.
Mr. Herrmann stated lots tn Frtdley are high priced and it �s hard to
ftnd a building site in the City.
Mr. Qureshi, City Manager, stated the question is whether the value placed
on his home is a fair market value. h1r. M�kulak stated he was not disputina
�this quest�on, but was concerned about facts regarding the increase in the
land values for thts area.
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MOTIOfJ by Councilman Fitzpatrick to note this protest by Mr. Mtkulak
and refer th�s matter to the City Assessor's Office for review and a
report. Seconded by Counc�lman Hamerm k. Upon a voice vote, all voting
aye, Mayor Nee declared the mot�on carrned unanimously.
MR. RICHARD HARSTAD - 1131 - 72ND AUENUE:
Mr. Harstad stated he was here �n reference to their industrial site
where he felt the value has gone up too much. He stated the value �n
1980 was $546,600; �n 1981 it was $682,600; and in 1982 it was �703,100
He stated he is a little latein talking about last year's value, but
felt the value placed on the property last year probably reflects the
true market value.
Mr. Harstad stated their company used to be located in northeast
Minneapolis, however, they purchased property between 72nd and 73rd
off Highway 65 for their facility. He stated they checked into many
suburbs, before locating in Fridley, and from conversations �t was
found Fr7dley had the most congenTal people to work wtth and the best
tax rates. Ne stated the tax rates were between 50 and 60 cents a
square f�oi and, as they have a 28,800 square foot building, it would
put them between the $15,000 and $16,000 bracket for taxes.
Mr. Harstad stated the taxes for thts coming year were $31,150 which
makes it about �1.10 a square foot. He explained when you try to
market that, you �ust m�ouldn't get anyone in there. He stated next
year the taxes w�ll be higher because the market value went up.
Mr. Harstad stated they paid $70,000 for the land and are now paytng
one-half that pr�ce every year on taxes. He requested a review of the
value placed on the property.
Mr. Herrmann, City Assessor, stated one �tem last year was the structure
wasn't completed and now the extra amount has been added. He also
stated the land value increased and this property is in School Oistrict
16 where the mill rate is h�gh.
Mayor fdee stated he was sori°y if he was m7sled on the square footage
tax basis. He stated the C�ty's tax levy has been stable, but the
school d�strict levy has been more volatile.
MOTION by Counc�lman Barnette to refer the matter of the value placed
on this property at 1131 - 72nd Avenue to the Ci�y Assessor's Office
for review and a report. Seconded by Counc�lman Hamerm k. Upon a
voice vote, all voting aye, Mayor flee declared the mot�on carried
unanirriously.
MOTIOPJ by Councilman F�tzpatrick to continue this hearing of the Board
of Review�to June 14, 1982 at -7:30 p. m. Seconded by Councilman
Barnette. Upon a voice �ote, all voting aye, Mayor Nee declared the
motion carr�ed unanimously.
ADJOURNPIENT:
This meetingof the Board of Review was ad,7ourned at 10 40 p. m. to be
continued to June 14, 1982 at 7:30 p. m.
Respectfully submitted,
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r'�il.Cit �%.' �2G� �[.(�9
Carole Haddad
Recording Secretary
Approved: May 7, 1982
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W�11`�iam J. Nee
htayor
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