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05/02/1983 BOE - 00012606� THE MINUTES OF THE FRIDLEY BOARD OF REVIEW MEETING OF MAY 2. 198� The City Council met as the Board of Review and the meeting was called to order at 7:08 p. m. by Mayor Nee. PLEDGE OF ALLEGIANCE: Mayor Nee led the Council and audience in the Pledge of Allegianee to the Flag. ROLL CALL: MEMHERS PRESENT: Mayor Nee, Councilman Fitzpatrick, Couneilman Hamernik, Councilman Schneider and Councilman Barnette MEMBERS ABSENT: None Mayor Nee stated the purpose of the Board of Review is to hear comments or questions from property owners regarding the values placed on their property. Mr. Leon Madsen, City Assessor, introduced the County Assessor, Mr. Gayle Leone and Mr. Aloyus Barek of the County Assessor�s Office, who are required to be in attendance at this meeting. Mr. Madsen stated the Board of Review would hear comments regarding the 1983 values placed on properties for taxes payable in 1984. He stated the Board has the power to ehange any value within the legally described limits. Mr. Madsen stated, aecording ta State law, at least 20� of properties in the City have to be inspected each year and this year the area was in School District No. 14 and the properties south of Mzssissippi Street. � Mayor Nee stated, basically, what the Soard of Review is to determine is whether or not the Assessor set his estimated market value at a correct level. He stated the City and County Assessor run sales ratio studies on a periodic basis, and they try to come within 95h of the estimated value. Mayor Nee stated last year Columbia Heights raised a point that the City was under assessing and an order was received to make an ad�ustment to equalize this within the County, therefore, about a 4� increase is reflected which includes the ad�ustments and takes into consideration normal lnflation. The following persons spoke regarding the values placed on their properties. Mr. Arvid Krogsveen, 6711 Quincy Street, stated he is the owner of a 1oti on 71st Way and East River Road and felt the value of $16,OOD placed on the lot was too high. Mr. Madsen stated this lot is 120 x 160 Peet and by using a base or site value, a 80 x 125 foot lot in that area would be valued at �1$,000 and ad�usting a larger lot, they arrive at a value of $18,000 and this is reduced by 15� beeause it is vacant. � ��t% `y s� BOARD OF REVIEW MEETING MAY 2. 198� PAGE 2 Mayor Nee stated he noticed the lot was for sale and asked what price Mr. Krogsveen was asking for it. HIr. Krogsveen stated he hoped to get $20,000 for the lot. Mayor Nee felt the $16,000 value mi$ht very well be the right estimate of what the lot is worth. Councilman Barnette stated the fact that he is asking $20,000 for the lot seems the value placed on the lot would be correct. Councilman Fitzpatrick stated the Board is obliged to consider only one � thing and that is market value and the Assessor has valued this lot at $16,OD0 and, if the owner is asking $20,000, this figure seemed correct and there wasn't any basis for reducing the value. Mr. Madsen stated there were a number of smaller lots in the area where homes were built and those lots sold for $15,000. There was no action by the Board to reduce the value, therefore, the Assessor's value was sustained. Mayor Nee stated the record will show that he did appeal the value and this would give Mr. Krogsveen the right of appeal to the County. Mar,7on Enterprises, 6525 University Avenue. Mr. Madsen stated Mar�on Enterprises had contacted them and wished to be recognized that they are protesting the value, but they were unable to attend this evening. MOTION by Councilman Barnette to receive the protest fro� Mar,7on Enterprises. Seconded by Couneilman Schneider. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. Mr. Gregory Felt, 233 Ely Street, appeared before the Board and indicated he felt the value of $80,7D0 placed on his property was too high. Mr. Felt presented figures whieh he stated showed the average value of � homes in his neighborhood is about $65,000. Mr. Felt stated it would be impossible for him to sell his home for $80,700 because of the location which is close to the railroad tracks and also near an industrial area where they get fur�es from the spray painting operation. Mr. Felt stated a reasonable value for his home would be 77,400. Mr. Felt stated he has had a 3�4� inerease in the value of his home from 1981 to 1g8�+ and didn't believe housing has increased more than 12 to 15�• Mr. Madsen stated there are a number of items in this property that are slightly above average or above meeting the City's code, and felt the value was well within the market. Councilman Fitzpatrick felt the Assessing Department should review this item since it may be difficult to sell this property for $80,700 because of the close proximity of the railroad tracks and to the spray painting company. � BOARD OF REVIEW MEETING MAY 2. 1983 PAGE 3 MOTION by Couneilman Fitzpatrick to continue this item to May 16, 1983 for a further report from the Assessor's Office. Seconded by Councilman Schneider. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. Mr. Jacob Weins, 5809 Arthur Street. Mr. Madsen stated staff talked with Mr. Weins and he is satisfied with the value placed on his property. Mr. Marvin Joppe, 7330-7332 Everts Court, appeared before the Council regarding the value placed on his double bungalow. He stated the value � placed on his property is the same as others in the area, however, he has had difficulty renting his units because of ad�acent property where it is unkempt and a^�unkyard". He stated he actually had to lower the rent in order to fill his vacancy. Mr. Madsen stated, when they valued the property, they 6ased it on the surrounding property as it was zoned, but this one unit has the worst exposure to the unkempt property. Mr. Flora, Public Works Director, stated the property owner to which Mr. Joppe made reference, has 6een contacted regarding cleaning up his property. Mr. Joppe stated the value placed on the property is $111,400, however, last year he paid $132,238 for the property. Councilman Fitzpatrick asked why the value placed on the property is lower than what it was sold for last year. Mr. Madsen stated because it sold for $132,OD0 doesn't necessarily mean it is worth ths amount in the market and his concern is that it was valued equally with other like properties. MOTION by Couneilman Schneider to ad�ust the value of the property at � 7330- 7332 Everts court from $111,400 to $103,000 based on the fact that the litter and junk on the neighboring property impacted rents for this property. Seconded by Councilman Barnette. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. Mr. Ron Burg, 7170 Central Avenue, stated he didn't have a problem with the value, but felt the taxes were quite high and, with the increase in value, it causes the taxes to go up. Mr. Burg stated the value on this four-plex has gone up from $137,000 in 1981 to $157,100, and taxes are $5,800. He questioned what taxes would be on a home valued at $157,000. Mr. Madsen explained the formulas used in assessing multiple units, as compared with single family or homestead properties. Councilman Fitzpatrick pointed out the publie can be heard on issues that would affect the mill rate and taxes at the budget hearings condueted by the school district, city, and county. Mr. Raymond Anderson, 6428 Dellwood Drive, stated he felt the value placed on his duplex was too hight at $88,300. He stated his property would need a lot of improvements in order to bring it up to this value. � � BOARD OF REVIEW MEETING MAY 2. 198� PAGE 4 Mr. Anderson pointed out a brick, three bedroom home in his area recently sold in the $70,000 6racket. MOTION by Councilman Schneider to direct the Assessor's OFfice to further study the value placed on the property at 6428 Dellwood Drive and report baek to the Board. Seconded by Councilman Barnette. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. Mr. H,7almer Anderson, 1491 Rice Creek Road. Mr. Madsen stated Mr. Anderson has left the meeting, however, Mr. Anderson felt the value placed on the property was too high. � MOSION by Councilman Schneider to record the protest by Mr. Anderson for his property at 1491 Rice Creek Road. Seconded by Councilman Barnette. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. Mr. A1 Singer, 1450 Riee Creek Road, appeared before the Board and stated he felt the value of $65,1D0 placed on his property was too high. He stated he purchased this property in July of 1982 for $57,200, therefore, he felt this value was 21-22$ high and requested a reduction. MOTION by Councilman Barnette to direct the Assessor's Office to further study homes comparable to the property at 1450 Rice Creek Road and report baek to the Board, Seconded by Councilman Fitzpatrick, Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. Mr. Fred Covey, 7321 East River Road, stated he was not upset with the value placed on the property, but upset about the taxes. He questioned how they can increase the value by 5� and inerease the taxes by 40$. Mr. Qureshi, City Manager, stated the city, county, and schools, basically, set the taxes. He pointed out the sehools get almost 50-55� of the taxes, and the county between 20 to 25�> and the city between 16 and 17�• Mr. Qureshi stated the homestead credit stayed the same so any inerease has a doubling effect. � Mayor Nee pointed out the mill rate the City levied did not increase. Msyor Nee asked Mr. Covey if he wished to carry this protest further. He stated he didn't disagree with the value on the property, but with the percentage of the tax increase. Mr. Rachard Amar, 6654 East River Road, felt the value of $36,700 placed on this property was too high. Mr. Madsen stated an inspection of this property was done in June, 1981 and it was found that very few homes sell for under $40,000. Mr. Amar stated, with the Health Club going in this last year, he felt the value of this property should be going down. Mr. Madsen stated there are some homes in Fridley similar in size to which this property could be compared. � f:i�7� ; � � , � � s MOSION by Councilman Fitzpatrick to direct the Assessor's Office to further study the value placed on this property and report baek to the Board, Seconded by Councilman Hamernik. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. Mr. Dale Knott, 5980 2-1/2 Street. Mr, Madsen stated Mr. Knott wished the record to show he had entered a protest. MOTION 6y Councilman Fitzpatrick to record the protest filed by Mr. Knott for his property at 5980 2-1/2 Street. Seconded by Councilman Barnette. � Upon a voice vote� all voting aye, Mayor Nee declared the motion carried unanimously. Mr. Chris Jelevarov, 6471 Riverview Terrace, appeared before the Council regarding the assessment on this property For water and sewer which was put in 15 years ago. Mayor Nee asked Mr. Jelevarov if he was ob,7ecting to the value placed on his property and he indicated he was not ob,7ecting to the value, but to the assessment. Mayor Nee stated this question was then out of order to be heard by the Board of Review and informed Mr. Jelevarov the Council would hear his complaint when the regular meeting convened after this Board of Revieor meeting. Mr. Richard Harris, 6200 Riverview Terrace. It was noted that Mr. Harris had left the meeting and wished to record a protest. MOTION by Councilman Hamernik to recora a protest from Mr. Harris regarding the value placed on his property. Seconded by Councilman Barnette. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. Mr. Mark Kroll, 123 63rd Way, appeared before the Board regarding the � value placed on his home. He stated all the homes in his area have a lower value than his property and at least two of the homes have been refurnished. Mr. Kroll stated he has had a 24.7� increase in value over over the last three years and felt this has skyrocketed enough and it shouldn't go up another 5X• Pi0TI0N by Councilman Fitzpatrick to direct the Assessor's Office to review the value placed on his property and report back to the Board. Seconded by Councilman Hamernik. Upon a voice vote, all voting aye, Mayor Nee declared the motaon carried unanimously. Mr. Dean Johnson, 5626 6th Street, appeared before the Board regarding the value placed on his home. He stated the value placed on his home is $56,300 and last year he had two real estate people come in and they estimated the value at $5�,000. Mr. Madsen stated the land value is at $16,500 and the total value on the property is $56,300. He stated the house was originally built in 1948 and had considerable remodeling and an addiiton in 197s• � � �' l � `I �� BOARD OF REVIEW MEETING MAY 2, 1983 R*=1'�� He stated the total square footage of the house is 1,266, with no basement, and is rated slightly below average. MOTION by Councilman Hamernik to direct the Assessor's Office to further study and investigate the value placed on this property and report back to the Board on May 16, 1983• Seconded by Councilman Schneider. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. ADJOURNMENT: MOTION by Councilman Barnette to continue this hearing of the Board of � Review to May 76, 1983• Seconded by Councilman Fitzpatrick. Upon a voice vote, all vaLing aye, Mayor Nee dee2ared the motion carried unansmously and this meeting of Nay 2, 1983 ad�ourned at 9:1D p. m. Respectfully submitted, ���..�.� ��-� Carole Haddad William .J:� ee Recording Secretary Mayor � Approved: May 16,1983 � J