CCM 04/23/2018 BOAE
BOARD OF APPEAL AND EQUALIZATION MEETING
CITY OF FRIDLEY
APRIL 23, 2018
The Board of Appeal and Equalization meeting for the City of Fridley was called to order by
Mayor Lund at 6:30 p.m.
ROLL CALL:
MEMBERS PRESENT:
Mayor Lund
Councilmember Barnette
Councilmember Saefke
Councilmember Varichak
Councilmember Bolkcom
OTHERS PRESENT:
Wally Wysopal, City Manager
Scott Hickok, Community Development Manager
James Kosluchar, Public Works Director
Mary Smith, Assessor
Patrick Maghrak, Senior Appraiser
Mary Smith,
Assessor, said this meeting is held in accordance with State Statute 274.01. The
purpose of the Board is to establish a consistent appeal procedure for the January 2, 2018,
valuation or classification. Upon hearing appeals the Board has three courses of action: To
affirm, reduce or increase the current value based on information presented. If the property
owner feels that the Board did not resolve their concerns, they may bring their case to the County
Board of Appeal and Equalization which will be held on June 11 at 6 p.m.
Ms. Smith
reviewed the responsibilities of the Board:
To have a majority of the members in attendance to have a quorum.
There must be at least one member who has attended or taken online, an appeal and
equalization course approved by the Commissioner of Revenue within the last four years.
If a property is omitted from the tax rolls, it may be added by the Board.
The Board may only increase or decrease individual properties.
The amount of a Board reduction cannot exceed 1% of the City-wide aggregate
assessment.
If the Board finds a case of under valuation, it may raise the valuation of the property, but
it must first notify the owner.
The Board must complete and adjourn within twenty days from the time it convened.
Ms. Smith
reviewed the appeals procedures:
To hear property owners that are present and accept any information provided.
Direct staff to review the property.
BOARD OF APPEAL & EQUALIZATION MEETING OF APRIL 23, 2018 PAGE 2
Written appeals will be read once property owners who are present have completed their
appeal.
Ms. Smith
stated according to the Certificates of Real Estate Value received in our office there
were 478 sales. This number is up slightly from last year’s 471, and represents a nominal
volume increase. There were 362 qualified residential sales that occurred in Fridley from
October 1, 2016 through September 30, 2017. These included sales of single family homes,
townhomes, double bungalows and condominiums. To bring the assessment within the State’s
ratio requirement of 90 – 105%, there were increases in structure values of approximately 10% to
15% depending on structure type. Along with the structure increase, land adjustments were also
made. During the 2017 reassessment, staff reviewed neighborhood zones and made changes to
all land zones in order to bring assessed levels towards the goal of 94.5%.
Ms. Smith
stated the county-wide commercial sales ratio was determined to be 95.29%. The
county-wide industrial sales ratio is 94.58%. These ratios compare real estate sale prices to
estimated market value to measure the overall accuracy of our values. Based on sales county-
wide of commercial properties, minimal changes took place to the values. These changes
increased values of Fridley’s commercial properties by 4%. There were increases to industrial
property county-wide; however, certain building types saw a much larger increase than others
based on sales. These changes increased the overall value of Fridley’s industrial properties by
11%. After application of these rate adjustments along with the addition of new construction and
changes made during the annual reassessment, commercial and industrial properties experienced
a 12% increase.
Ms. Smith
said upon review of the apartment sales, an increase of 10-17% was applied to
structures county-wide, depending on the number of units. Along with changes made during the
reassessment and new construction, the result was an overall value increase in Fridley apartments
of 15.29%. To summarize the 2018 assessment, single and multi-family continued with
substantial growth. The commercial and industrial properties also experienced significant
growth.
Ms. Smith
reported residential sales within the first 6 months of the 2019 assessment study
period indicate a 4.54% increase in the average sales price with sales volume similar to last year.
Market time is down by 17% and sellers are getting just over 100% of their asking price. Sale
price ranges are as follows for the first six months of the 2019 assessment:
8 Sales under $100,000
68 Sales from $100,000 to $200,000
70 Sales from $200,000 to $300,000
6 Sales from $300,000 to $400,000
1 Sale over $500,000
As of March 31, 2018, there were only 20 homes on the market and eleven of them had offers
with some form of contingency. This continues a trend of historically short supply and will
likely keep upward pressure on price.
BOARD OF APPEAL & EQUALIZATION MEETING OF APRIL 23, 2018 PAGE 3
MOTION
by Councilmember Bolkcom to move into record the tax appeal letter from Rock
Solid Company received at 4:57 on Monday, April 23, 2018. Seconded by Councilmember
Saefke.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY
Pat Maghrak,
Senior Appraiser, read the nine properties affected by change that were discussed
with the property owners who have agreed with the adjusted estimated market value. Also, the
property that was moved into record was added to the list. The properties are as follows:
Pin Number Address 2018 EMV Adjusted 2018 EMV
24-30-24-42-0006 5601 N Danube Rd $295,800 $258,000
23-30-24-22-0027 6011 2 ½ St NE $198,500 $166,200
13-30-24-31-0046 6366 Pierce St NE $190,100 $185,400
26-30-24-22-0102 5139 Horizon Dr NE $214,300 $202,500
24-30-24-24-0068 5889 Hackmann Ave NE $193,000 $183,100
st
23-30-24-22-0034 250 61 Ave NE $190,200 $187,800
14-30-24-33-0070 6131 Trinity Dr NE $178,900 $163,500
13-30-24-43-0088 6249 Ben More Dr NE $394,500 $335,000
14-30-24-42-0002 510 Mississippi St NE $212,500 $196,400
12-30-24-21-0023 7597 Highway 65 NE $591,800 $591,800
MOTION
by Councilmember Saefke to affirm the adjusted values as listed above. Seconded by
Councilmember Bolkcom.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY.
MOTION
by Councilmember Barnette to close the Board of Appeal and Equalization Meeting.
Seconded by Councilmember Saefke.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED AND THE MEETING CLOSED AT 6:56 P.M.
Respectfully submitted by,
Krista Peterson Scott J. Lund
Recording Secretary Mayor