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HomeMy WebLinkAbout1987 05-11 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 May 11, 1987 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 7:05 p.m. ROLL CALL Mayor Dean Nyquist, Councilmembers Gene Lhotka, Celia Scott, and Bill Hawes. Mayor Nyquist noted Councilmember Theis was unable to attend this evening's meeting. Also present were City Manager Gerald Splinter, City Assessor Peter Koole, Property Appraiser Joe DaBruzzi, and Administrative Aid 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 valuation within the City, and to allow time for public inquiry regarding local assessments after the City Assessor makes his report. The City Manager introduced Peter Koole, 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 their review. He noted if an individual prefers to bypass these steps he may go directly to tax court. He added the Board of Equalization reviews the City Assessor's work, and he explained the City appraisers are fully certified by the State of Minnesota. He stated the Assessor's responsibility is to treat the value of similar properties in similar ways with regard to valuations. He also noted the City Assessor's office has asked that people call his office prior to the Board of Equalization meeting to make an appointment with the staff to discuss the particular request, and also, if necessary, to register for an appearance at the Board of Equalization. He explained the people who pre- registered would be handled first at this evening's meeting. THE CITY ASSESSOR'S REPORT The City Assessor next reviewed the sales ratio studies. He explained the sales ratio study was a substantive part of what is done by the Assessing Department. He briefly reviewed the 1987 sales ratio study; noting the aggregate ratio is 92.7 %; the median ratio is 92.7 %; and the coefficient of dispersion is 4.9 %. He then briefly discussed the definition of a coefficient of dispersion. He stated the average sale price of a home in Brooklyn Center is $72,176, and the average market value is $66,919. He also explained the Assessing Department analyzes the sales by style, location, price, age, and neighborhood. He reviewed the valuations of several homes located in different parts of the City, including homes located on a lake or river, in proximity to a highway or freeway, commercial and multiple family units, and homes located near park land. 5 -11 -87 -1- PUBLIC INQUIRY REGARDING LOCAL ASSESSMENTS The City Manager explained three pre- registrations had been received for this evening's meeting. Mayor Nyquist recognized Edward Noble, owner of 5117 Xerxes Avenue North. Mr. Noble explained there is vacant land attached to his property, and this parcel is landlocked property. He stated no access can be gained to this vacant parcel unless it is across his residential property. He stated he does not feel the market value for this vacant piece of property should have been increased to $1,700. He noted the property can never be developed and will always be attached to his lot. Councilmember Lhotka inquired what the property value was in 1986. The City Assessor stated his staff is looking up that information. He briefly reviewed the report which was submitted on this parcel of land and noted over the past year the appraiser has revalued all landlocked parcels. He stated the value of a vacant parcel is very difficult to prove in Brooklyn Center because there are not many vacant parcels, whether they be buildable or not buildable, left in Brooklyn Center. The City Assessor stated Mr. Noble's property was valued at $1,000 in 1986. He added this value dates as far back as 1979 and possibly longer. Mayor Nyquist inquired if the lot would meet the minimum requirements for a buildable lot. The City Assessor stated it would be just short of minimum requirements, but it would need its own access. He noted if the land did have its own access and were buildable it would be valued at $19,000. Councilmember Lhotka stated he would have no objections leaving the market value at $1,000. Mayor Nyquist inquired if the present lot and attached parcel were combined into one single parcel would the total market value change. The City Assessor responded negatively. There was a motion by Councilmember Lhotka and seconded by Councilmember Scott to reduce the 1987 market value for the property located west of 5117 Xerxes Avenue North, PID #10- 118 -21 -11 -0009, to $1,000. The motion passed unanimously. The City Assessor introduced the next appeal which was from Walt Filson, who was representing Mr. & Mrs. Neil Grindheim. Mr. Filson stated Mr. & Mrs. Grindheim are missionaries in Indonesia and they are presently renting their home during their absence. He noted the home is being rented for less than most apartments charge in the City. He added the rent barely covers the principal and interest for the house payment. He stated the Grindheim's are contesting the loss of their homestead status and noted the loss of this status is creating a hardship for them. Councilmember Scott inquired if there was a law regarding temporary absences and homestead status. The City Assessor stated there is no law regarding temporary absences, but the Attorney General has made a ruling that temporary absences of up to one year may still qualify a home for homestead status, as long as the home is not rented out. He noted it is quite clear the home is rented out, and he made his recommendation based upon the law and the Attorney General's opinion. He noted the County Attorney concurs with his recommendation. Mayor Nyquist inquired if it would be possible for the City Attorney to look into this matter more fully. Councilmember Lhotka stated at this point he would have to agree with the City Assessor's recommendation, but 5 -11 -87 -2- he would like to see the issue investigated more fully so the Council could possibly change the property back to homestead status. There was a motion by Councilmember Scott and seconded by Councilmember Lhotka to continue the homestead appeal for 801 Woodbine Lane, PID #25- 119 -21 -31 -0090, until the May 18, 1987, City Council meeting. The motion passed unanimously. The City Assessor stated the next appeal was from Dennis Leonard, 4207 Lakeside Avenue, Unit #325. He stated Mr. Leonard is not present at this evening's meeting and added he is recommending the market value be reduced to the 1986 level. The City Assessor stated the Board is being petitioned regarding 18 units which would be affected by the outcome of the Board's decision. He stated the 1987 value was estimated using a limited sampling of sales. He noted since the time of the valuing staff has been advised that one of the sales appears to be bogus and is in foreclosure at this time. With this information, he stated staff looked at more recent months for additional sales and did find two sales of this style unit which indicates staff has over valued the 18 units. There was a motion by Councilmember Scott and seconded by Councilmember Hawes to concur with the City Assessor's recommendation reducing the values for the following PID numbers: 10- 118 -21 -32 -0082, 10- 118 -21 -32 -0083, 10- 118 -21 -32 -0095, 10- 118 -21 -32 -0096, 10- 118 -21 -32 -0111, 10- 118 -21 -32 -0112, 10- 118 -21 -32 -0122, 10- 118 -21 -32 -0123, 10- 118 -21 -32 -0136, 10- 118- 21 -32- 0137, 10- 118 -21 -32 -0152, 10 -118- 21 -32 -0153, 10- 118.21 -32 -0163, 10- 118 -21 -32 -0164, 10- 118 -21 -32 -0177, 10- 118 -21- 32- 0178, 10- 118 -21 -32 -0193, and 10- 118 -21 -32 -0194. The motion passed unanimously. Councilmember Lhotka inquired why one owner out of 18 felt the value was too high. He also inquired if the values may be going too far back in the other direction. The Property Appraiser stated most models at the Beach have actually gone down in value in the past year and these 18 units will be slightly on the high side. The City Assessor, stated three more appeals have been received for this evening's meeting, and he would like to review the next appeal. He stated the fourth appeal comes from Bruce Sanders, representing the owners of the property known as Northbrook Shopping Center. He stated Mr. Sanders wishes to appeal the 1987 valuation; however, due to time constraints Mr. Sanders is not able to appear in person or furnish any information for this evening's meeting. He stated Mr. Sanders wished to have his appeal read for the Board to protect his options for the future appeals process. There was a motion by Councilmember Lhotka and seconded by Councilmember Scott to accept Mr. Sanders appeal into the record and to affirm the Assessor's 1987 valuation for the following PID numbers: 02- 118- 21 -13- 0024, 02- 118 -21 -13 -0025, 02- 118 -21 -13 -0026, 02- 118 -21 -13 -0027, and 02- 118- 21 -13- 0028. The motion passed unanimously. The City Assessor introduced the next appeal which was from Kevin Smith. Mr. Smith stated he owns a vacant lot on 68th Avenue and has found this particular lot needs substantial soil correction work before it is buildable. He noted the present market value is $18,500, and he believes this value much too high. The 5 -11 -87 -3- City Assessor stated the City will need evidence of the soil problems before any action can be taken. Mr. Smith stated he would have evidence by Tuesday, May 12, 1987. There was a motion by Councilmember Lhotka and seconded by Councilmember Hawes to continue the appeal of the market value on a lot located on 68th Avenue, PID #34- 119 -21 -11 -0076, until the May 18, 1987, City Council meeting. The motion passed unanimously. The City Assessor introduced the next appeal which was from Scott Regan, representing Osseo - Brooklyn Bus Company. The City Assessor stated he and Mr. Regan had spoken earlier in the day, and he had made a recommendation at that time to reduce the market value to $160,900 for the vacant property (Subrecord No. 2) connected to Mr. Regan's land. The City Assessor then briefly reviewed the present market value and the reduction in market value which he is recommending. He added no change is recommended for the bus garage, Subrecord No. 1. There was a motion by Councilmember Lhotka and seconded by Councilmember Scott to reduce the market value for the property at 4435 68th Avenue North, PID #34- 119 -21 -22 -0012. The motion passed unanimously. There was a motion by Councilmember Scott and seconded by Councilmember Lhotka to continue the Board of Equalization meeting to the May 18, 1987, City Council meeting. The motion passed unanimously. ADJOURNMENT There was a motion by Councilmember Lhotka and seconded by Councilmember Hawes to adjourn the Board of Equalization meeting. The motion passed unanimously. The Board of Equalization adjourned at 7:55 p.m. City Clerk Mayo 5 -11 -87 -4-