Loading...
04/10/1989 BOE - 00006851THE MINUTES QF THE MEETING QF THE BQARD OF REVIEW OF APRIL 10. 1989 � CALL TO ORDER: Mayor Nee called the meeting of the Board of Review to order at 7:30 p.m. ROLL CALL• MEMBERS PRESENT: Mayor Nee, Councilwoman Jorgenson, Councilman Fitzpatrick and Councilman Billings MEMBERS ABSENT: Councilman Schneider Mayor Nee stated the City Council meets as the Board of Review to review issues concerning the proposed market value established for properties in the City by the City Assessor's Office. Mr. Madsen, City Assessor, stated the values assigned to the properties affect taxes payable in 1990. He introduced Mr. Gordon Starkey and Mr. A1 Barck of the Anoka County Assessor's Office. Mr. Madsen stated this Board has the power to increase, decrease, or affirm values on properties as assessed by the Assessor's Office. He stated a number of calls were received as there were � some fairly substantial increases. Mr. Madsen stated 11 persons called and indicated they wished to voice a protest and the Council may receive more before the end of the meeting. 1. BLAINE AND LEE"JONES, 54 LOCKE LAKE ROAD: Ms. Jones stated they have two plats of land and one is valued separately as there is no structure on it. She stated they have lived in this home since 1986 and, in reviewing the values, it was noted the value on the parcel with the home has increased a little under 12 percent and the vacant property has increased over 14 percent. Ms. Jones stated the taxes have increased 24 percent. She stated her concern is that it is such a large increase in value for the short period of time they have owned the property. Councilwoman Jorgenson asked if Ms. Jones was referring to the taxes payable to the City or the entire tax bill. Ms. Jones stated the increase covers the entire tax bill. She stated if the trend is to have this much of an increase every year, she felt it was excessive. Ms. Jones stated they do not have access to any of the parks or any sidewalks, but still pay extremely high taxes for this location. She stated they were not the only ones who have a concern as other neighbors are also concerned about taxes and the park access question. � Mr. Jones stated they have to cross Locke Lake, railroad tracks, or East River Road in order to have access to a park. BOARD OF REVIEW MEETING OF APRIL 10, 1989 PAGE 2 ' Mrs. Jones stated they paid $130,000 for the home in 1986 and the market value placed on the property is now $137,600. She questioned why the value on the vacent lot would increase 14 percent when it is not buildable. Mr. Madsen stated land values increased this year, basically, 14 percent across-the-board. Ms. �ones asked if the parcels were combined into one tax parcel if this would change the value. Mr. Madsen stated the Assessor's Office viewed the property as one lot and proportioned the increase for land values to the vacant property. Councilwoman Jorgenson asked the reason for the 14 percent increase in land values. Mr. Madsen stated a study was done throughout the County and if Fridley had not increased land values, the City would have been on a lower ratio than other cities in the County. Councilwoman Jorgenson asked if this action to increase the land � values was on the City's part or direction from the County. Mr. Madsen stated it was a cooperative effort as the ratio was below 90 percent and the State would like it to be within 93 to 95 percent. He stated the land value for this property is $45,300 for a parcel about 150 by 261 feet. Mr. Jones stated Locke Lake has eroded the yard and part has fallen into the lake. Mr. Madsen stated probably not quite one half of the lot is under water. He stated the lot is one of the larger lots in terms of square footage. Councilman Fitzpatrick stated the Board's purpose is to determine if the value placed on the property is the true market value. Mr. Jones asked if all property values in Fridley increased by 14 percent. Mr. Madsen stated all single family residential building sites increased by this percentage. Mr. Jones asked if the areas experiencing increases had access to the City's park system. He questioned if this is taken into � consideration in establishing property values. � � � BOARD OF REVIEW MEETING OF APRIL 10, 1989 PAGE 3 Mr. Madsen stated if there was a trend where actual sales were higher in areas where there is park access as opposed to those who do not have this access, it would be recognized. He stated he cannot recall the presence of a park being an influence in the value of property. He stated he has found people who live right next to a park have concerns. Councilman Billings asked Mrs. Jones what she felt was the fair market value of her property. Mrs. Jones stated she did not think the $137,600 figure was unreasonable, but felt it was increasing at an unusually high rate which is probably unrealistic for the area. She stated the taxes have increased almost 25 percent in two years. Councilman Billings stated the taxes for the City have remained very stable. He stated this year there was an increase in the taxes for the County and School District. Mrs. Jones felt somewhere along the line there has to be a limit for the benefits they are receiving. She stated there is a lack of parks and sidewalks and felt they were on the losing end with a 12 percent increase in the assessed value over the last two years. Councilman Fitzpatrick stated if the argument was that the property could not be sold anywhere near the value placed an it, a change could be considered. He stated, however, this is not the case. Mr. Burns, City Manager, questioned how the value of this property related to others in the area and why the home was assessed for more than the sale price. Mr. Madsen stated the sale was in 1986 and from this date and the beginninq of 1989, there was an increase in the market values. He stated for properties on Locke Lake, ratios were compared for five parcels and they were at 94 percent. Mayor Nee stated the reason the gross taxes escalated was because the write-down the State gives becomes less when you get into that price home. MOTION by Councilman Billings to reaffirm the value of $137,600 placed on this property by the City Assessor's Office. Seconded by Councilman Fitzpatrick. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. 2. TERRY MICKLEY, 241 RICE CREEK TERRACE: Mr. Mickley was not present at this time, therefore, the following action was taken: � BOARD OF REVIEW MEETING OF APRIL 10, 1989 PAGE 4 � MOTION by Councilman Billings to table this item to the end of the meeting. Seconded by Councilman Fitzpatrick. Upon a voiae vote, all voting aye, Mayor Nee declared the motion carried unanimously. 3. DON CRISPIN. 6820 OAKLEY STREET: Mr. Crispin was not present at this time, therefore, the following action was taken: MOTION by Councilman Billings to table this item to the end of the meeting. Seconded by Councilman Fitzpatrick. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. 4. GEORGE ZIIK, 721 68TH AVENUE: Mr. Zuk stated his market value last year was $66,300 and this year it is $69,700. He stated he has a letter from a realtor, Jeff Firnstahl, who assessed the property between $66,00o and $69,000. He stated he cannot sell his home £or $69,700 and the property is over valued. Mr. Madsen stated four properties in the area were sold in 1988 � which were comparable to Mr. Zuk's property. He stated the property at 6830 Monroe Street sold in May of 1958 for $74,500 and it was valued $700 higher than Mr. Zuk's. He stated a home at 6842 Monroe Street sold in August, 1988 for $74,500 and $72,100 is the value on this property. He stated the property at 6598 Monroe Street sold for $76,000 in May, 1988 and $71,800 is the value placed on this property. He stated another comparable home at 6870 Brookview Drive sold in April, 1988 for $75,500. Mr. Madsen felt all these homes were comparable with Mr. Zuk's as far as square footage and amenities. He stated in taking these sales into account, it would appear Mr. Zuk's value is somewhat low. Mr. Madsen stated he cannot argue with the appraisal received by Mr. Zuk, but does not know what comparables were used. Mr. Zuk stated a home similar to his would sell for about $67,000. He stated it has to be proven to him that he could sell his home for more than this amount. He stated all homes are different and the homes used for comparison probably have a lot of remodeling and are in better shape. Mr. Madsen stated in determining the value, the assumption is made that normal maintenance is provided. IIe stated values are not reduced if maintenance may have been lax unless it is to the point where there is damage to the property. ' Mr. Zuk stated the homes Mr. Madsen cited are in much better shape than his home. He stated they have oak woodwork which he does not. ' � � BOARD OF REVIEW MEETING OF APRIL 10, 1989 PAGE 5 Mr. Madsen stated the first three homes all have pine trim and only one has oak woodwork. Mr. Zuk stated he has lost two large Elm trees which also enhance and increase the value of a home. Mr. Madsen stated trees are not a consideration in determining the value of the property. Mr. Zuk stated when you are speaking of market value, trees do add to the value. Mayor Nee stated it is not possible to establish an exact value, but if it is within 90 to 95 percent of the selling price of the property, it would be close. Councilwoman Jorgenson stated she drove by Mr. Zuk's home and felt it was very comparable to those in the neighborhood. Mr. Zuk stated strictly by driving by one cannot address the market value. He stated he would like to be able to sell his home for $74,000. Mr. Madsen stated the other sales in his neighborhood do reflect that, if Mr. Zuk chose to sell his home, he should be able to get $74,000. Councilman Billings asked Mr. Zuk what made him believe that the realtor who appraised his property was more accurate than the actual fact that homes very similar to his have sold for a higher price. Mr. Zuk stated there are homes comparable to his which have sold for a lot less and would like the decision for the market value based on the actual worth. Councilman Billings asked Mr. Zuk if this item was tabled, if it would give him an opportunity to provide the Assessor's Office with some comparables used by his appraiser. Mr. Zuk stated he would agree with this and would contact the Assessor's Office with additional information. MOTION by Councilman Billings to refer this matter to the staff for further study. Seconded by Councilman Fitzpatrick. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. 5. ICEN THORNTON, 7325-27 EVERT COURT: Mr. Madsen stated the value established for this duplex is � BOARD OF REVIEW MEETING OF APRIL 10, 1989 PAGE 6 � $130,300. Mr. Thornton stated he is the builder and owner of this property and you cannot sell these buildings. He stated about the time the duplex was constructed, the interest rates went to 14 or 16 percent and with the change in tax policy, it makes it very difficult to sell these properties. Mr. Thornton stated out of 18 properties listed on the multiple listing service for the northeast metropolitan location, 16 have expired and there was no sale. He stated the duplex across the street is a very similar building to these on Evert Court and they have been on the market for $130,900 and the owner cannot get that price. Mr. Thornton stated if he was a broker, he would not even accept the listing. Mr. Thornton stated a duplex on Mississippi Street, north of Silver Lake Road, sold for $129,000 and this is a huge building and much larger than his duplex. He stated one that is comparable is located at 7642 Woodlawn in New Brighton and it sold for $109,900. Mr. Madsen stated the City does not have a lot of sales for comparison, but there is a 90 percent ratio of the three which were � sold. He stated he would not argue the fact that sales for duplexes are down. Mr. Thornton stated the cost to construct the building was about $110,000 to $112,000 and he rents the units for $725 and $700 per month. He stated he loses money on the building. MOTION by Councilman Billings to refer this matter to staff for further study. Seconded by Councilwoman Jorgenson. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. 6. BERNICE COONEY, PROPERTY AT 5407 CENTRAL AVENUE: Mrs. Cooney felt the value placed on this unbuildable lot which is less than 6,D00 square feet was too high. She stated it has increased from $5,500 to $10,800. Mr. Madsen stated the value of $10,800 has not changed from last year. He stated the Board did increase the value last year from $5,500 to $10,800. Councilwoman Jorgenson stated this property is the one with the Naegele sign adjacent to Menard's. She stated comparables were done on other Naegele signs in the area. � Mrs. Cooney stated you cannot use the lot and is unbuildable. Councilwoman Jorgenson stated the lot is being used and rented to BOARD OF REVIEW MEETING OF APRIL 10. 1989 PAGE 7 � Naeqele for billboard purgoses. MOTION by Councilman Billings to reaffirm the value placed on this property by the City Assessor's Office. Seconded by Councilwoman Jorgenson. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. Mayor Nee stated to Mrs. Cooney she has the right to proceed to the County for a review on her property. 7. MR. DOWDS, FRIDLEY AUTO SALVAGE. 3737 EAST RIVER ROAD: Mr. Dowds stated he is the owner of the Fridley Auto Salvage on East River Road. Ae stated he expanded his operation and had to lease an extra one and one-half acres from the Burlington-Northern Railroad. Mr. Dowds stated this leased property is the one in question and felt the value was too high. He stated he has no complaints on the other property he owns. Mr. Dowds felt a$5,000 tax bill for this small piece of property was extreme. He stated it is only about 66,000 square feet in size and, in terms of value, it is not a buildable lot. He stated the property is assessed at about $1.70 a square foot which is the � going rate for commercial land in Fridley. He stated this figure is for buildable land which is not the case with this property. He felt this property is a"back lot" and the value should be about 75 cents to $1.00 a square foot. Mr. Dowds stated Denny Taylor, a commercial and industrial real estate broker, stated he would not appraise the property at all because it could not be sold. Mr. Madsen stated he has reviewed the value and it is a unique situation. He stated this property was originally on the rolls of the railroad. He stated when the lease went into effect, the City was asked to establish a value for this property and the rest of the property was used as a comparison. Mr. Dowds stated he is not disputing the other property value, but this property is not buildable. Mr. Madsen stated in reviewing the value of this parcel, it was considered as a value to the railroad, as they are the owner, and Mr. Dowds is only leasing the property. Mr. Dowds stated a lease is usually for five or ten years and this lease is only for six months. � Mr. Madsen stated in terms of numbers, he was using an eight to ten percent cap rate and would be willing to go to the ten percent cap rate. BOARD OF REVIEW MEETING OF APRIL 10, 1989 PAGE 8 � Mr. Dowds stated that cap rate should be used only for long term leases, and not for a lease of six months. He stated there is no additional value to the properties adjacent to it because it is such a short term lease. MOTION by Councilman Fitzpatrick to refer this matter to the staff for further study. Seconded by Councilwoman Jorgenson. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. 8. SKYWOOD MALL, 53RD AND CENTRAL AVENUES: MOTION by Councilman Billings to receive the letter from Marquette State Bank objectinq to the value placed on this property and continue this matter to the next meeting. Seconded by Councilwoman Jorgenson. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. 9. FRANK WALZ, 160 HARTMAN CIRCLE: MOTION by Councilman Fitzpatrick to receive the letter from Mr. Walz in regard to the value placed on his property. Seconded by Councilwoman Jorgenson. i7pon a voice vote, all voting aye, Mayor � Nee declared the motion carried unanimously. 10. TRUSTEE GROUP REALTY, 8000 UNIVERSITY, 251-71 COMMERCE CIRCLE SOUTH AND 7151 COMMERCE CIRCLE WEST: Mr. Madsen stated he received a phone call objecting to the value placed on these properties. He stated the properties sold for $2,900,000, and a combined value of $3,498,500 has been established for these three parcels. MOTION by Councilman Billings to continue this matter to the next meeting and refer to staff for further study. Seconded by Councilman Fitzpatrick. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. 11. RECC - FRIDLEY LIMITED PARTNERSHIP. 7685 MAIN STREET. 7260 UNIVERSITY AVENUE AND 7280 COMMERCE CIRCLE EAST: Mr. Madsen stated a law firm in Chicago representing the owners of these three properties has voiced an objection to the values. MOTION by Councilwoman Jorgenson to continue this matter to the next meeting and refer to staff for further study. Seconded by Councilman Fitzpatrick. Upon a voice vote, all voting aye, Mayor � Nee declared the motion carried unanimously. 12. NORMAN WESTON, 1651 GARDENA AVENUE: � ' � BOARD OF REVIEW MEETING OF APRIL 10, 1989 PAGE 9 Mr. Weston stated he purchased this property a year ago for $90,000. He stated a 110 foot blacktop driveway has been installed and he has replaced the plumbing as the pipes froze this past winter because they were on the outside, rather than the inside. Mr. Weston stated he had to replace the electrical system as five amp transformers were used instead of ten amp which made the home a fire hazard. Mr. Weston stated the market value and taxes have increased and he did not believe it should be above $90,000 with all the problems he has had with the home. Mr. Madsen stated he would like an opportunity for the appraiser to review this property. MOTION by Councilwoman Jorgenson to continue this matter to the next meeting and refer to staff for further study. Seconded by Councilman Fitzpatrick. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. Since Mr. Mickley was now present at the meeting, the Council considered his item at this time. 2. TERRY MICKLEY, 241 RICE CREEK TERRACE: Mr. Mickley stated he is questioning the value placed on his new home at 241 Rice Creek Terrace. He stated in building this home, he was concerned about the value of the home due to the neighborhood in which it was located. He stated he sold his previous home at 231 Rice Creek Terrace for $136,6DD. He stated that home was larger and had more amenities. Mr. Mickley stated he built this home for about $95,000 not counting the price of the lot. He stated the lo� is appraised at $42,000. He felt because of the age of that neighborhood, the home should be valued somewhere between $136,000 and $137,000. He stated the valuation established for this property is $141,500. Mr. Mickley stated because of the neighborhood, he did not feel he could sell this home for $141,500. He stated the home he sold last year at 231 Rice Creek Terrace was the most expensive property in that area. Councilman Fitzpatrick asked Mr. Mickley if he did not feel he moved into a more valuable home than the one he sold. Mr. Mickley stated in order to hold down building costs, he did not install any fireplaces in his new home. He stated what he has in the cost of the construction and the lot is about $123,000. Mr. Madsen stated this property value was reviewed and was originally at $146,600. He stated it was felt by reducing the 6 BOARD OF REVIEW MEETING OF APRIL 10, 1989 PAGE 10 � value $5,100, it would be similar to other properties located on the creek. Mr. Mickley stated the actual cost for construction of the home was $95,296 which includes about $1,200 for landscaping and $6,500 for his own time. Councilman Fitzpatrick stated the purpose is not to determine the construction costs, but the market value. He stated he was inclined to support the recommendation of the Assessor's Office for a$5,100 reduction in value or a market value of $141,500. MOTION by Councilman Fitzpatrick to reaffirm the Assessor's revised value of $141,500. Seconded by Councilman Billings. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. 13. NEIL WANAMAKER. 265 STONEYBROOK WAY: Mr. Wanamaker stated he purchased this home two years ago for less than the appraised value at that time. He stated he received an appraisal from Dave Ryan of Coldwell-Banker and his estimate was $155,500. He stated the City has placed a value of $161,100 on his ' property. Mr. Madsen stated this is an unusual home and he certainly would like to discuss the matter with Dave Ryan. He stated he did not have a chance to review this property. MoTION by Councilman Billings to continue this matter to the next meeting and refer to staff for further study. Seconded by Councilwoman Jorgenson. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. 14. PATRICIA LEVOIR. 6278 BAKER STREET: Ms. Levoir stated she felt the value placed on her property is close to the asking price if the home was to be sold, however, a realtor told her there usually is about an eight percent difference in market value and sale price. Ms. Levoir stated she had the property appraised two years ago, but did not have this figure with her. Mr. Madsen stated this protest came in this evening and he would like the opportunity to review the property. MOTION by Councilman Billings to continue this matter to the next � meeting and refer to staff for further study. Seconded by Councilwoman Jorgenson. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. � BOARD OF REVIEW MEETING OF APRIL 10, 1989 PAGE 11 15. TILFORD AASEN. 6380 JEFFERSON STREET: Mr. Madsen stated Mr. Aasen has left the meeting and requested this item be continued to the next meeting. MOTION by Councilman Billings to continue this matter to the next meeting. Seconded by Councilwoman Jorgenson. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. 16. JOSEPH SINIGAGLIO, 4715 AND 5191-93 3RD STREET: Mr. Sinigaglio stated his property at 4715 3rd Street has a value placed on it at $71,600. He stated he recently had it appraised at $62,400. He also raised the question of value placed on property he owns at 5191-93 3rd Street. Mr. Madsen stated he has not had an opportunity to review these properties and would request the item be continued. MOTION by Councilman Billings to continue this matter to the next meeting and refer to staff for further study. Seconded by Councilwoman Jorgenson. Upon a voice vote, all voting aye, Mayor � Nee declared the motion carried unanimously. 17. GEORGE NELSON. 570 BENNETT DRIVE: Mr. Madsen stated Mr. Nelson had indicated that he felt the value on his property was too high, but would not be appealing. MOTION by Councilman Billings to affirm the value placed on this property by the City Assessor's Office. Seconded by Councilwoman Jorgenson. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. 18. MARTIN PAULAT, 701 BENNETT DRIVE: Mr. Madsen stated Mr. Paulat had to leave the meeting, but wished to protest the value placed on his property. MOTION by Councilman Billings to continue this matter to the next meeting and re£er to sta££ for further study. Seconded by Councilwoman Jorgenson. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. Since Mr. Crispin did not appear at the meeting, the following action was taken: � 3. DON CRISPIN. 6820 OAKLEY STREET: MOTION by Councilman Billings to table this matter to the next ' � � BOARp OF REVIEW MEETING OF APRIL 10, 1989 PAGE 12 meeting. Seconded by Councilman Fitzpatrick. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. ADJOURNMENT: MOTION by Councilman Fitzpatrick to continue this meeting to April 17, 1989. Seconded by Councilwoman Jorgenson. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously and the meeting adjourned at 9:44 p.m. Respectfully submitted, Carole Haddad Recording Secretary Approved: 1/ l/ �� �/'- G' William Mayor i � J. Nee r >>