CCM 05/11/2020 BOAE
LOCAL BOARD OF APPEAL & EQUALIZATION MEETING
CITY OF FRIDLEY
MAY 11, 2020
The Local Board of Appeal & Equalization meeting for the City of Fridley was called to order by
Mayor Lund at 6:30 p.m.
MEMBERS PRESENT: Mayor Lund
Councilmember Ostwald
Councilmember Tillberry
Councilmember Eggert
Councilmember Bolkcom
OTHERS PRESENT: Wally Wysopal, City Manager
Patrick Maghrak, City Assessor
1. Adopt Resolution No. 2020-01 Approving the Equalization of Assessed Valuations of
Real and Personal Property as Recommended by the Local Board of Appeal &
Equalization for 2020.
Patrick Maghrak, City Assessor, stated Council can either affirm, reduce or increase the
estimated market value of a property. The majority of the members of the Board must be in
attendance to have a quorum, and at least one member must have completed an Appeal &
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. Reduction cannot exceed 1% of the City-wide aggregate
assessment. If the Board has a case that is under value, it must first notify the owner before raising
the value. The Board must complete and adjourn within 20 days of the date it convened. The
Board will hear property owners who that are present and accept any information provided and
direct staff to review the property. Written appeals will be read once property owners who are
present have completed their appeal.
Mr. Maghrak noted that the number of sales were similar this year compared to last year.
According to Certificates of Real Estate, there were 488 sales in 2018 compared to 480 sales in
2019. There were 330 homes qualified residential sales in Fridley from October 1, 2018 through
September 30, 2019. This includes single family homes, townhomes, double bungalows and
condominiums. Structure values were increased 5-12% (depending on type) to meet State ratio
requirements (90-105%). Along with the structure increase, land adjustments were also made.
During the 2019 reassessment, staff reviewed neighborhood zones and made changes to all land
zones in order to bring assessed levels towards the goal of 94.5%. The Fridley Roll 2020 after
adjustments was 94.51.
LOCAL BOARD OF APPEAL & EQUALIZATION MEETING OF MAY 11, 2020 PAGE 2
Mr. Maghrak reported commercial and industrial ratios were 95.62% for commercial and 92.04%
for industrial. These ratios compare real estate sale prices to estimated market value to measure
the overall accuracy of our values. Based on sales countywide of commercial properties, modest
changes took place to the values between 2019 and 2020. These changes increased values of
Fridley’s commercial properties by 3.9%. Moderate changes were made to industrial properties
as well, which increased the overall value of Fridley’s industrial properties by 5%. After
application to these rate adjustments along with the addition of new construction and changes made
during the annual reassessment, there was a 4.4% increase in commercial and industrial properties.
Mr. Maghrak stated that upon review of apartment sales, an increase of 5-20% was applied to
structures countywide, depending on the number of units. Along with changes made during the
reassessment the result was an overall value increase in Fridley apartments of 6.7%.
Mr. Maghrak said entry level housing and apartment buildings with four or less units saw the
largest growth and mid/upper bracket homes saw a modest growth rate of 3.2%. Commercial and
industrial properties did well with a moderate growth compared to 2019. Residential sales within
the first six months of 2021 assessment study period indicate a 2.5% increase in the average sales
price with sales volume similar to last year. Market time has increased by 12.5% and sellers are
getting just over 100% of their asking price. Sale price ranges for the first six months of the 2019
assessment include five sales under $100,000; 31 sales $100,000-200,000; 93 sales $200,000-
300,000; 19 sales $300,000-400,000 and one sale over $500,000.
Mr. Maghrak reported that as of March 31, 2020, there were only 26 homes on the market and
15 of them had offers with some form of contingency. Five of the remaining homes were in the
new Loke Point Development.
MOTION by Mayor Lund to adopt Resolution No. 2020-01 with the addition of revised Exhibits
A and B. Seconded by Councilmember Ostwald.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY.
ADJOURN:
MOTION by Councilmember Bolkcom to adjourn the Local Board of Appeal & Equalization
meeting. Seconded by Councilmember Ostwald.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY AND THE MEETING ADJOURNED AT 6:48 P.M.
Respectfully submitted,
Krista Peterson Scott J. Lund
Recording Secretary Mayor