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05/04/1987 BOE - 00011206��'i''"�; i � • i •� �� ��:;,� • ! i� • I�yor Nee reopened the Board of Review I+�eeting, which was oontinued from April 20, at 7:38 p.m PLIDGE OF ALI,EGIANCE• N�yor Nee led the Goimcil and audienoe in the Pledge of Allegiance to the Fl ag. ROLI, CALL- 1�ENBII2S PRFSII�7T: Mayor Nee, Cbtmcilman Gooclspeed, 6xmcilman FYtzFatrick, ��cilman Schneider and Cotmcilwanan Jorgenson MEFSERS ABSFNT: None Msyor Nee stated this meeting is a continuation of the Board of Review meeting of April 20. He stated the purpose of the Board of Review is to review values plaoed on �operties in the City L� the Assessor's Office. He stated several persons have requested a review of these values and some itens were tabled fran the last meeting in order to allaa staff further time 1 to research. MARIAN CRABTREE 7100 RIVERVIEW TERRACE N E Mr. l�clsen, City Assessor, stated he was unable to gain access to Mrs. CYabtxee's home so all the xe-examination of the property was from the outside. He stated two FsimaLy mnoerns raised at the last meeting were the size of the lot and the square footage of the home. Mr. Madsen stated in checking the dimensions of the }xoperty, it was fo�md they were all correct and the lot size is approximately 116 feet wide. He stated it was mentioned the property aa�r di�h't have access to the street, but as far as he can determine, this is not the case. Mr. Madsen stated he felt the value of $119,000 should not be changed. �imcilman Fitz�atrick stated the question was raised that land values may have been affected }x some outrageously hic� single �ale. Mr. Maclsen stated values were not oumFared witl� any specific land sale, however, a study was made with the cities of Brooklyn Center, Brooklyn Park, and Coon Rapids rec�rding sales of river properties and, k�sed on this study, it was felt increases were long overdue. He stated there was one sale of land in 1980, ahout a block fran this FxoFerty, which sold for $69,000. He stated the land value on Mrs. Crabtree's �operty is at $47,700. Mr. l�clsen stated not much credence was given to the $69,000 sale, as it was felt this was a rather inflated price. He stated the value of the river lots in Fridley � incra3sed 5�, the �me as other lots in the City, plus $7,500 wkuch anoimted to a 25� increase. -1- :..� •�� . � . � . � Mc. Zeddies, attorr�ey repxesenting Mrs. CYat*ree, stated this lot is inusual as it only has a 15 foot ent[y to the street which affects the value. He stated because of the configuration, which the City wanted for possible future expansion of the road to the south, the lot has 60 feet which is useless and the way it is being assessed is �mfair. Mr. Zeddies stated the property aaner cbesn't object to the value plaoed on the hane, but the value of the lot. He stated there is not one lot in Brooklyn Center that is val�d above $35,00� and the� are acoessible to the tiver. He stated this lot has about a 60 foot tank and there is no way to obtain access to the river. Mr. Zeddies stated he checked values of lots on this street and there is only one lot to the north that has an assessed value of approximately what is beinq proposed for this lot and all the rest are laaer. Coimcilman Fit2g'�trick asked haa the additional $7,500 value on river lots was determiried. Mr. l�hcisen stated an average was taken on what lots should be increased l�sed on the stuc� of FricIlEy and other nei9hboring oommunities which have lots on the river. He stated there were sales which shaved FYic�e3's values laaer than the average for these kincls of properties. He stated it was felt values had to Ue incra�sed and brought in line with other �operties in the City. l�yor Nee asked if the other oommunities glan to incxease their values � acoordingly. Mr. N�dsen stated he hasn't checked their 1987 assessnents and mainly rc�iewed sales that took plaoe on river property, but there aren't a lot of sales of this type of �operty. Coimcilman Schneider asked if tl�e land value was based on square footage. Mr. Nhclsen stated it is 6ased on the width and applying a deFth factor. He stated the width increases the value of a lot rather than the depth since the width, la�sically, determines the size of a structure on a particular lot. lbimcilman Fitz�atrick asked if tl�e tmusisl frontage of this lot was taken into mnsideration when the value was determined. Mr. Madsen stated this was not taken into acootmt as this would be, �sically, the same as lots on a cul-de-sac, He stated the biggest oonoern is the width which determines the size of a structure on a lat. (bimcilman FitzFatrick asked if Mrs. Crabtree intends to take her concerns to the Cotmty if there is no c3iange remimnen�d in the value. Mr. Zeddies stated this matter was discussed with Mrs. CYabtree and it was felt she has to take the next step in the process. He felt there is some area of mmFsanise. He stated if it is felt there has to be a 58 increase in properiy value, it would be fair, but to add another $10,000 or $11,000 to the land value dich't make any sense. � N�yor Nee stated he felt sane property aaners felt the increase was radical and stated he would like to see the stuc� that cbewnented the increases. He stated the sales dich't seem to justify that figure. -2- ��� 'VW,iY.'J� .;r �?�7l•�� �)+'i■S_?1� u�4 • �' � Mr. Zeddies stated this house was listed with a re31 estate oomFany in 1985 for $150,000. Mrs. CYabtree advised the realtor if an offer over $110,000 was reoeived to sutmit it to her. He stated the house was on the market for three moriths and prospective buyers felt the price was ridiculous. He stated they dich't like the acoess and dich't want to raise children there because of the hic� l�nk down to the river. He stated not one person made an offer on the house. He stated you have to deal with reality and not with hypothetics, Mr, Zeddies stated the Board of Review o�uld make a decision this ever�ing and save evexyone the time and expense of groceeding further, if there is a only a reasonable increase in the val� of the land. Cotmcilman Fitzpatrick stated the problen is the same formula has been applied to a ntunber of properties and if a substantial decrease is remmmenc3ed, there muld he a problen with other properties. Mr. N�clsen stated possibly the average value of all river lots wuld be determir�ed and used as a Ixzsis. He stated this lot is probably one of the widest lots on the river. Coimcilman Schneider stated in order to take advantage of the additional width for this lot, the existing hane would have to be renoved. Mr. Madsen stated there is always the possibility the property aaner may wish to add on to the �operty and e�ra land for e�cpansion has a very high value. He stated he is oonfic�nt the value placed on this property reflects a true market value. � Cotmcilman Goodspeed asked if tl�ere were other lots on the river that have this odd shape. Mr. I�c�en stated two other areas have a si.tuation that is worse where they share acoess. He stated it is not �musual as long as there is enouc�i rocm on the lot to Fark vehicles. NDTIDN L� Coimcilman FitzFatrick to affi�m the value glaoed on this Ixoperty 1� the Assessor's Offioe. Se�nded t� Cotmcilman Gooclspeed. Mc. Qureshi, City [+L�r�ger, questioned if the value of the 60 feet on the east of the lot was renoved, how it would affect the total value. Mr. l�dsen stated it would k�e vexy little, probably about $500. Mr. Qureshi felt there may be some rationale to give a reduction on this portion because of the possible extension of the road and the uniqueness of the lot oonf iguration. ebimcilman Fitzpatrick stated he cbubted that the owner would ac�pt a$500 reduction and suspected they would take their case to the Coimty. Mr. Zeddies asked if Mrs. Crabtree would have access to the study done l� the four oonummities and the method that would be used for a reduction. Mr. N�clsen stated the stuc}3 is available for review and open to the public. UI�N A VOICE VOTE TAI�N ON �S3E ABOJE NpTION, Councilman Fitzpatrick, � Coimcilman Goodspeed, O�imcilman Sdineider and Mayor Nee voted in favor of the motion. �tmcilwcman Jorgenson voted against the motion. Mayor Nee declared the motion carried k� a 4 to 1 vote. -3- �'W 5_'I�,� i'�..�_�l� �_ ��� 5 � � � JOHN DAHL. 1065 63RD AVENUE N.E. Nh�. Nhdsen, City Assessor, stated Mr. Dahl was mailed a full list of all residential �xles for 1986 in Fric�ey and ofPered assistanoe, havever, staff has received no response fran iv.m. He stated in d�ecking with the �imty to see if this sale had been reoorded, it was found the sale had never been reoorded with a deed, mntract for deed, or certificate of real estate value. He stated there was a purchase agreenent filed with an application for hanestead at tYie Cbwzty Assessor's Office. He stated this homestead will not be valichted until necessaty widenoes are reoorded, therefore, the Coimty cbes rrot reooc�ize this sale. Mr, N�cisen stated as far as the �tmty is �ncerried, the p�roperty a,or�ers are l�rtin and Kathy Burditt. (bincilwanan Jorgenson stated she widerstands Mr. Ixihl had an appointment to close on this property and would not close. She stated Martin and Kathy Burditt are still the avners and have no objection to the value placed on the �xoperty. �imcilwanan Jorgenson stated she has a problem if Mr. Dahl isn't the property aaner and hasn't closed on the home and yet is here to argue the value plaaed on the Fxoperty. Mr. L�hl, stated the Burditt's didn't furnish the documents to close the sale. He stated this issue is to be resolved We�esday. Mr. Dahl stated the first closing was set for last Novanber 1 and he obtained possession because he gave then a d�wn Xsyment, � Councilwanan Jorgenson stated she received a di£ferent story from the Burditt's that N1r. L�hl didn't want to provide the balance of the money aaed. Mr. Dahl stated he has to go to court regarding this fiqure. Coimcilwanan Jorgenson stated she �derstands this has been settled 1� the oourts in favor of the Burditt's, Mr. Dahl stated the issue was to be resolved, Yut the Burditt's dich't have the cbaunents. Coimcilman Schneider asked if the $59,500 figure was one of the issues. Mr. Ihhl. stated this has nothing to do with the case, but the issue is the l�lanoe aved. Mr, L13h1 stated the �ale of the house went throuc� and he received the tax stat�nent fran Anoka Co�ty and filed with then that he is the deed holder. Coincilman Schneider asked Mr. Ikzhl if he or the seller �id a realtor's wmmission. Mr. I.l3hl. stated the whole transaction was through a realtor. Cotmciltnan Schneider stated staff has contacted him and he indicates he dich't aollect a mmmission and only reviewed the purchase agre�nent as a oourtesy. He stated he mntacted a real estate agent to purchase this home and didn't Imaa if there was a real estate oorrnnission paid. Mr. Dahl stated he was pleased with the information received from the Assessor's Offi�. He stated at the last meeting, he �id $59,500 for his hane which included futnishings. He stated in reviewing the informatian � pravided to him, he mmFared hanes built about the same year and with the same amoimt of s�uare footage as his hane and the average value was $57,420. Mr. L�hl stated he checked to determine i£ any of the hanes were in a heavy —4— O�Pi��"�-- .,� , ..� • • a � a �i�a�� • � � � traffic area and none were in such areas. He stated he considers his home in a ha3vy traffic area and has semi-trailers on his street as the� use 63rd _ to access onto the highway. Mr. Dahl stated he would like to see a reduction in the value of his hane. Nhyor Nee stated the persons wha aan the hane have indicated they have no objection to the value placed on the �operty. [�. N�clsen stated the tax statenent does have Mr. Dahl's name on it, He questiorred if a contract for deed or warranty deed dich' t have to be f iled before a person's name would appear as the aaner. He stated when he checked witl� the Cotmty, tl�ere was no deed filed and yet the tax statenent went out in Mr. Ik3hl.'s name. Coimcilman Schneider felt there was a lat of �nfusion as there is a letter fran the fee aaners which cb not wntest the value and the oontract £or deed owner is oontesting the value. Cotmcilwanan Jorgenson state8 Mr. Ik�hl. indicated he had ar�ther appointment for closing this Wec�esday and then he may Ee the fee owner. NDTION t� cbtmcilman Schneider to affiLm the val� placed on this ptoperty IX the Assessor's Office. Se�nded Ix Coimcilwanan Jorgenson. Upon a voice vote, all voting aye, N�yor Nee declared the motion carried unammously. � Mr. Starky, representing the Anoka Coimty Assessor's Offioe, stated in order to appear before the Coimty Board of F13ual�zation, an appointment should be made with the Coimty Assessor's Offioe, He stated this meeting is scheduled for July 6, 1987. N�yor Nee stated ariyone who disagrees with the actions of the Board of Review this evening should contact the �imty Assessor's Office to schedule an ap�ointrnent for their appeal, NDTION ]x Cotmcilman Schneic�r to reoeive the letter fran Marti❑ and Kathy Burditt indicating they have no objection to the value placed on this property, Semnded tr� Cotmcilman Goocispeed. Upon a voioe vote. all voting aye, N�yor Nee declared the motion carried unanimously. � :�� U�� Y. :i ui � Mr. Nhdsen, (xty Assessor, stated this property was reviewed on April 23 and there was a L��sss Fatio cbor in the walkout wall wh�.ch has been renwed and replaoed with a how-style cbor and windows. He stated the City's Building Inspector told the oontractor this site is not conducive for a walkout because of the �oblen with the drainage. He stated the oontractor has oammen�d work to aortect the Fxoblan, k�ut at this time is not oompleted, Mr. Nhclsen stated he felt the estimated wst to oomplete this job is $1,000 � and would recommend a reduction in the value Ix this amoimt. Ms. Vierkarit stated to even tax a house that is still Lmd`r o�nstruction is -5- a^[+f�?� n� 'l Y5 � � ��� � � �1 � �I_ u� 5i � � � ridicul.ous, She felt the City should share s�ne of the responsibility foc her �oblen, as thEy should have mac� sure the foimchtion was oorrect when the house was being constructed. Ms. Vierkarit stated $1,000 would not cover the oost to mmglete the reoessaxy work to wrrect her problens. 5he stated the estimates she reoeived were fran $1,400 to $1,500. Ms. Vierkant stated the house is still imder w nstruction, as there has not been a final inspection and she can only live in or�e-half of it. Mr. Madsen stated he would not argue with the $1,400 to $1,500 figure to mmplete the neoes�ary oonstruction work on this hanE and would be willing to reoommend a rec�ction of $1,500. Ms. Vierkant stated she is �aying ta�s on a house that isn't wmplete and felt she s�hould only pay ta�s on half of the hcxne. i+hyor Nee stated all the Soaxd of Review, under the law, is permitted to mnsid�r is whether or not this is a fair market value and not whether the aaner has other problens with the �operty. He stated they are concerned with the other arg�nnents made, but is not a part of this process of the Soard of Revifta. He advised Ms. Vierkarit if she was not s�tisfied with the actions of the Board, she oould wntinue her appeal to the Cbimty. NDTIDN LX Cotmcilman Goodspeed to reduae the value placed on this property k� the Assessor's Office 1� $1,500 from $7Q,500 to $69,000. Seconded by � Councilwanan Jorgenson. Upon a voice vote, all voting aye. Mayor Nee c�clared the motion carried unanimously. H_A1z�EES' RE3►_'AURANr. 289 57TH AVENUE N.E. Mr. N�dsen, City Assessor, stated an extensive revicia was made of this proFerty and during the �ocess, an erzor was fotmd in the s�uaxe footage. He stated the �rrect footage of the huilding is 4,5$8 and not 4,834 square feet. [�. Nhclsen stated this error was also made on the 1986 aseessnent and a mrrection should be macl� for that ya3r, as well as the 1987 assessment. He stated he would, therefore, recoimnend a reduction on the 1987 value, to include the mrrection for the 1986 value, fran $432,400 to $412,600. Mr. N�dsen stated a stuc� was made on �al.es of 29 restaurant type rxoperties in the �in Ci�ies area during 1985 and 1986 and the overall analysis re�ealed the average kuilding area was 3,323 square feet; average land area was 47,814 s.�uate feet; average �tle �ioe per s3uare feet of building was $123; and there were seven with a�ale prioe �mder $100 a s�uare foot. He stated this stuc'� included the sale of three Hardees' restaurants which ranged fran $100 to $165 a s3uare foot. Mr. Nels�n, re�esettting Hardees', stated Mc]bnald's value is $298,000; Burger King's is $320,000; and Hardees' is valued at almost $100,000 more than these �operties. He stated Hardees' is being penalized for moving into a lxe-existing building with larger square footage which raises the ' value. Mr. Ne].son stated the k:uilding the� purchased was 3,600 s3uare feet and 900 sxuare feet was added to make it wnform to Hardees' specifications for a total tuilding area of 4,500 s3uare feet. He stated much of this � O�Cu�'.3 �.�� •�� . � u�� _ . � sFaoe is wasted because it is inefficient, as it wasn't built specifically for a Hardees' restaurant, Mr. Nelson stated they have seating ca�city for 96 persons and at the Blaine Hardee's, thcy have seating for 92 persons with only 3,400 square feet of ixtilding area. He stated if this building was c�signed lx Hardees' to their specifications, 92 persons wuld be acmmmoc2�ted with less square footage. Mr. Nelson stated the value on the Blaine Hardees' is $289,000. He stated the �oper indication for fair market vzlue is what a person would pay for the property. He questioned if someone woud pay $422,000 for a Hardees' when the� aould buy a McA�r�ld's or Burger King for less or another Hardees' for less. He felt the value should be reduoed to $300.000. Mr, l�c�en stated Hardees' value is $92 a s�uare foot, Burger King, $130 a sxuare foot, and McDonald's, $1o4 a ss�uare foot for the buildings. He stated the� value a kuilding on the size, not on the type of txasiness. Mayor Nee stated he felt the argument wasn't made that this was an imre3listic value of the }aoperty, but rather the renodeling was wasteful. Mr. Nelson stated it is a single use building and dich't ]maa who would pay $92 a sluare foot for it. Mr. N�dsen stated the :�les �mFared were all restaurant �operties and the average sale was $123 a s�uare foot. He stated the Fridley Hardees' sold � for $160 a square foot. Mr. Nelson stated there were financing techniques used that ra311y do not re�esent the fair macket value. FDTION ky Cotmcilman Fitz�trick to reduce the value placed on Hardees' property fran $432,400 to $412,600. Se�ndecl L� Cotmcilman Schneider. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. � � y:: ;,� • •�� •,� � � Mr. I�dsen, City Assessor, stated a rc�iaa was made of this property. He stated the aaner felt the beauty shop cra�ted a fimctiorr�l obsolesoenoe, but he felt this was not the mse, as it ouuld be oonverted to a large master bedroan and one of the snaller existing bedrooms changed to a study to proaic� egress to the master bedroan. He stated the value placed on this pxoperty was wmFared with eales in the area and would teco�rnnend no diange. Mr. Hoskins stated in oom�aring his hane with the one across the street that sold for $73,200, his hane cbes not have the �nenities of this one which has four bedroans, two full l�ths, kitchen and dining roan, �t�.o and grill, and an outsic� chimney. He stated in order to obtain the rale, the avner had to disaowit a mntract 20$ so he actually reaeived $66,400. He stated his hane is an ex�nsion and really isn't useable in the winter. He stated it has no permanent siding, carpet, or vinyl trim. He stated it is now valued at ' $75,60o and his taxes went up over $200 this year. Mr, l�c�en stated there was over a 10� increase in the mill rate for School -7- _�.: :i� • yl�l � 4 . � District No. 13 so this wuld acwunt for a lot of the tax increase. Cotmcilman FitzFatrick stated wiYhout any change in the value, the increase ls� the School District �uld change the ta�s mnsiderably. Mr. Nhclsen pointed out property is assessed at 188 for the first $65,000 and over that figure, it is assessed at 28�. He stated this is something the City k�as nothing to cb with, 6ut is State law. � � Mr. Hoskins stated it wasn't so muci� the value that he was acjainst, but the increase in the taxes. NDTION IX Cowzcilman FitzFatrick to affinn the value placed on this �xoperty 1x the Assessor's Offioe. Semnded 1� Co�mcllwanan Jorgenson. Lipon a voioe vote, all voting aye, Mayor Nee declared the motion carried unammously. I ' �I� � ! �I il' �,j; �IYC S# � Mr. Nhclsen, (7ty Assessor, stated he has reoeived no further response from the property owner regarding their objection recorded at the April 20 meeting. Ms. Wright stated they are in the process of having their property evaluated, Yut dich't have the results at this time. Mr. Madsen stated he asswned Ms. Wright would have a response L� this meeting, however, si�e muld oontinue her appeal at the Coimty. Mayor Nee stated it is in the record that the value of this property was protested which would prwide the fotmc3�tion for appeal to the Coimty. NDTION b� Cbimcilman Fitz�atrick to affirni the value plaaed on this property b� the Assessot's Offioe. Se�nBed b,� �lmcilman Gooclspeed. Upon a voice vote, all voting aye, Nhyor Nee declared the motion carried unanimously. NDTION by Councilman Schneider to adjourn the meeting. Seconded by Councilwanan Jorgenson. Upon a voioe vote, all voting aye, Mayor Nee declared the motion carried unanimously and the meeting of the Boar� of Review of May 4, 1987 acYjourned at 9:43 p.m Respectfully subnitted, ���,"�� ?'�-��z',,�,�_ (�role Haddad, Recording Secretary Q'J' � � �A- � C����'�� �. Will iam J Nee Mayor 4��.y�'��