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HomeMy WebLinkAbout1990 04-30 CCM Board of Equalization MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA BOARD OF EQUALIZATION APRIL 30, 1990 CITY HALL CALL TO ORDER The Brooklyn Center City Council met as the Board of Equalization and was called to order by Mayor Dean Nyquist at 7:01 p.m. ROLL CALL Mayor Dean Nyquist, Councilmembers Celia Scott, Todd Paulson, Jerry Pedlar, and Philip Cohen. Also present were City Manager Gerald Splinter, City Assessor Mark Parish, Property Appraiser Nancy Bye, and Administrative Aide Patti Page. PURPOSE OF BOARD OF EQUALIZATION The City Manager reviewed the purpose of the Board of Equalization meeting and pointed out the City Council was serving as the Board of Equalization to conduct a review of assessed valuations within the City and to allow time for public inquiry regarding local assessments after the City Assessor makes his report. The City Manager introduced Mark Parish, City Assessor, who pointed out there are various steps an individual may take when seeking adjustments in their valuations, and he explained the meeting tonight is the first step, after which the inquiries pass on to the County; and the County then passes it on to the State for its review. He noted if an individual prefers to bypass these steps, he may go directly to tax court. He then went on to present a brief overview of the tax system currently used and also the 1990 assessment time line. He added the purpose this evening is not to argue about the appropriateness of the tax systems but to discuss the market valuations. THE CITY ASSESSOR'S REPORT The City Assessor explained the State requires 25% of all parcels be inspected each year by the -Assessing Department. He then went on to review the sales ratio studies. He explained the sales ratio study was a substantive part of what is done by the Assessing Department. He noted the aggregate ratio is 93.7 %; the median ratio is 93.4 %; and the coefficient of dispersion is 5.3 %. Councilmember Cohen noted if a resident refuses entry, then the Assessing Department assumes the market value has increased 15 %. The City Assessor noted if entry is refused, the average increase plus an additional 15% is added to the market value. Councilmember Cohen inquired if this additional 15% increase causes the residents change their minds. The City Assessor stated about 50% of the people allow entry after they see the 15% increase. PUBLIC INQUIRY REGARDING LOCAL ASSESSMENTS Mayor Nyquist recognized William Schutte, representing 6715, 6719, 6717,_ and , 6721 Humboldt Avenue North. Mr. Schutte stated in September of 1989, he had his properties appraised, and it was determined they had a market value of $118,500 each. He noted his property was compared with properties in Spring Lake Park, 4/30/90 _l_ I Brooklyn Center, and Minneapolis. Mayor Nyquist inquired why Mr. Schutte's Appraiser used comparisons from other cities instead of Brooklyn Center. Mr. Schutte explained the Appraiser tried to compare his complex with other like- complexes. He noted it is difficult to compare a complex that has only one building versus a complex that has four buildings. Mayor Nyquist inquired if Mr. Schutte has met with the City Assessor. Mr. Schutte responded negatively. Mayor Nyquist inquired if the City Assessor had any suggestions regarding this issue. The City Assessor stated he would like to review the appraisal which Mr. Schutte had completed in September and report back to the Council next week. Mr. Schutte inquired if he would have to be present at next week's meeting, if he did not agree with the staff's recommendation. The City Manager stated he could submit his disagreement in writing. Mr. Schutte stated he had some questions regarding the use of the gross rent multiplier. The City Assessor went on to explain use of the gross rent multiplier. Mr. Schutte stated he would be willing to meet with the City Assessor. There was a motion by Councilmember Scott and seconded by Councilmember Pedlar to continue the appeal of the market value for the properties located at 6715, 6719, 6717, and 6721 Humboldt Avenue North, PID Nos. 35- 119- 21 -11- 0009, 35 -119- 21 -11 -0010, 35- 119 -21 -11 -0007, and 35- 119 -21 -11 -0008, until the May 7, 1990, City Council meeting. The motion passed unanimously. Mayor Nyquist then recognized Debbie Gilmore, 3313 68th Avenue North. Ms. Gilmore stated her realtor has completed an appraisal and found the market value is $76,000. Ms. Gilmore noted if the City Assessor was using the median to figure her property value, it would be at approximately $85,000. . The City Assessor stated the median is only a measure based on sales from last year. He noted it is improper to apply this to an individual property. He stated currently this home is functioning as a two bedroom home. He noted originally there were three bedrooms but it was changed to one large bedroom and one smaller room which is being used as a den. He added typically the Appraiser relies on square footage not the building structure. He noted the homes which were comparable to Ms. Gilmore's were valued at $81,500 to $84,700. He noted after the Appraiser completed a second review of this home, it was determined the market value should be $82,000. The City Assessor stated the current market value is $81,400 and staff is not recommending any change. Ms. Gilmore stated she feels there are many discrepancies in the comparable use by the City's Appraiser. She noted she would have to make many changes, to her home to bring R it up to $82,000. Ms. Gilmore stated her real estate agent used three comparable homes in Brooklyn Center which indicated her home should have a much dower market value. There was a discussion pertaining to market values and the number of bedrooms within a home. Mayor Nyquist inquired if the home at 4206 Woodbine Lane, which was listed in the board book, could be considered comparable to Ms. Gilmore's home.' The City Assessor stated he would hesitate to say it was comparable without being able to review the two homes completely. Councilmember Paulson inquired how a home's appearance can affect the market value. The City Assessor stated the decorative and personal possessions within a home are not taken into account in estimating a property's market value. He noted the Appraiser assumes all homes are in average condition and market values are not reduced if a coat of paint is needed. Councilmember Cohen inquired if the City Assessor has seen the 4/30/90 -2 information Ms. Gilmore has presented. The City Assessor stated he has not seen the information. However, he did believe the Appraiser had briefly reviewed the information. Councilmember Cohen stated he would like to recommend the City Assessor review the information which Ms. Gilmore has presented and report back next week. The City Assessor stated he would also try to cross- reference some of the discrepancies pointed out by Ms. Gilmore. There was a motion by Councilmember Cohen and seconded by Councilmember Paulson to continue the appeal of the market value for the property located at 3313 68th Avenue North, PID No. 34- 119 -21 -11 -0056, until the May 7, 1990, City Council meeting. The motion passed unanimously. The City Assessor stated a request had been submitted in writing by K & K Sales, 4800 Lilac Drive. However, he noted representatives of this property were present this evening and would like to address the City Council. Mayor Nyquist recognized Alan Steigler, Attorney for g K & K Sales and Mary Korzenows ' Y ki. Mr. Y Steigler stated the current estimated market value is $1,116,900. He noted there are new improvements shown on the tax statements but added these are internal remodeling only. Mayor Nyquist inquired if Mr. Steigler has a recent appraisal for this property. Mr. Steigler stated he did not have a recent appraisal but he would be obtaining one. He pointed out in 1988 part of this property was sold. The City Assessor stated he would recommend tabling action on this item until next week. He noted the owner contacted his office last week and began discussions regarding the market value. He added the owner has shown P sincere willingness to work with the staff. He stated one of the questions which must be answered is did the improvements enhance the functional use with regards to their business only or to the market value as a whole. There was a motion by Councilmember Scott and seconded by Councilmember Paulson to continue the appeal of the market value for the property located at 4800 Lilac Drive, PID Nos. 10- 118 -21 -42 -0041 and 10- 118 -21 -42 -0040, until the May 7, 1990, City Council meeting. The motion passed unanimously. The City Assessor stated. there were four parcels which should be considered as letter requests and entered into the minutes. There was a motion by Councilmember Scott and seconded by Councilmember Paulson to affirm the City Assessor's 1990 valuation for the properties located at 6700 Shingle Creek Parkway, PID Nos. 35- 119 -21 -12 -0004 and 35- 119- 21 -12- 0005. The motion passed unanimously. There was a motion by Councilmember Scott and seconded by Councilmember Paulson to affirm the City Assessor's 1990 valuation for the property located at 2200 Freeway Boulevard, PID No. 35- 119 -21 -13 -0012. The motion passed unanimously. There was a motion by Councilmember Scott and seconded by Councilmember Paulson to affirm the City Assessor's 1990 valuation for the property located at 1501 Freeway Boulevard, PID No. 35- 119 -21 -41 -0003. The motion passed unanimously. There was a motion by Councilmember Pedlar and seconded by Councilmember Scott to continue the Board of Equalization meeting to the May 7, 1990, City Council meeting. The motion passed unanimously. 4/30/90 -3- i ADJOURNMENT There was a motion by Councilmember Pedlar and seconded by Councilmember Scott to adjourn the Board of Equalization meeting. The motion passed unanimously. The Brooklyn Center City Council adjourned at 8:24 p.m. e Deputy City Clerk Mayor i i f 4/30/90 -4-