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HomeMy WebLinkAbout1988 05-02 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 2, 1988 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 7:07 p.m. ROLL CALL Mayor Dean Nyquist, Councilmembers Gene Lhotka, Celia Scott, and Rich Theis. Also present were City Manager Gerald Splinter, City Assessor _Peter Koole, Property Appraiser Joe DaBruzzi, and Administrative Aid Patti Page. Councilmember Hawes was not present at the meeting. 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 its 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 City 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 preregistered 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 1988 sales ratio study; noting the aggregate ratio is 94.0; the median ratio is 93.8; and the coefficient of dispersion is 5.2. He then briefly discussed the definition of a coefficient of dispersion. He stated the average sale price of a home in Brooklyn Center is $74,440, and the average market value is $69,951. 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 -2 -88 -1- i i He went on to review an article that had appeared in the Sunday newspaper and explained because of changes that were approved by the State Legislature property taxes will increase by $190 million in 1989. He pointed out that 97% of this increase will come directly from the metropolitan area. The City Manager reminded the City Council and those present in the audience that the Board of Equalization is in session to review the property values not the taxes being paid on the property. PUBLIC INQUIRY REGARDING LOCAL ASSESSMENTS Mayor Nyquist recognized Edward Noble, 5117 Xerxes Avenue North. Mr. Noble explained there is vacant land attached to his property, and this parcel is landlocked property. He explained years ago the City rezoned property in his neighborhood, allowing apartments to be built in the area, and the positioning of T.H. 100 have practically made it impossible for a planned access to this extra property. He stated he felt something should be planned by the City to allow access to the land which would then allow for a home to be built on it. He explained he is not the only one in this situation; there are two other property owners in the area with the same problem. The City Manager stated that the access to the parcels has been taken by MNDOT for T.H. 100. He noted the problem is creating an access to these empty parcels. Mr. Noble stated he also did not feel the City should be allowed to enter people's homes to review them. Mr. Noble added he believes he has a constitutional right to privacy and the City is invading this privacy. The City Assessor stated State Statute gives the City or County Assessor the right to enter a person's home every four years to appraise it. Councilmember Lhotka inquired what the City's past policy has beei on valuing landlocked parcels. The City Assessor stated generally excess land within the City is valued at $9,000 an acre. Councilmember Theis inquired if $9,000 an acre is the going rate for this area. The City Assessor stated vacant land with an access in Brooklyn Center is at a premium, and $9,000 an acre is much below the actual selling price. He pointed out in 1987 the City Council reduced the value of Mr. Noble's excess property from $1,700 to $1,000. Councilmember Lhotka stated he agrees with the appraiser's findings, but he would like to have staff investigate the possibility of creating an access into these parcels to allow for buildable lots. There was a motion by Councilmember Lhotka and seconded by Councilmember Scott to affirm the City Assessor's 1988 valuation for the following PID numbers: 10- 118 -21 -41 -0006 and 10- 118 -21 -11 -0009. The motion passed unanimously. Mayor Nyquist recognized Mr. Carl Lidberg, 7032 Willow Lane North. Mr. Lidberg inquired as to how the appraiser arrived at this valuation. The City Assessor explained that the appraiser did a physical inspection of the property in March and also did comparisons with the three comparable properties making adjustments for the differences. He pointed out that one of these properties was most comparable to the subject property, and the indicated market value for the comparable property is $119,000 for 1988. He noted staff is recommending no f change in the valuation of the Lidberg home. r 5 -2 -88 -2- I r - CORRECTION The City Assessor then went on to review the process used in choosing comparable properties. Mr. Lidberg inquired why the appraiser did not use one of the homes directly across the street from his. The City Assessor stated there is a totally different market for the home directly across the street versus a home on the river. He added that all homes and lots on the river are different and they will not have the same value. The City Manager added that sometimes what appears to be identical on the = outside is vastly different on the inside. Mr. Lidberg stated he would like a comparison done between his home and another property located on the river. He noted he had tried to obtain the square footage information from the City Assessor's office but had been informed it was not public information. The City Assessor stated this information is public information and noted he was not sure why Mr. Lidberg was told it was not public information. There was a general consensus among Councilmembers to lay over a decision on this property until later in the meeting to allow Mr. Lidberg and the appraiser time to review the other property in question. Mayor Nyquist recognized Mr. Donald Eliason, 5313 Boulder Lane. Mr. Eliason stated there has been a 16% increase in the market value of his home over the last four years and a 37.4% tax increase. He added that he disputes the 37.4% tax increase. The City Manager pointed out the purpose of this meeting this evening is to make sure that valuations of homes are equal to the values of similar other homes in Brooklyn Center. He inquired how long Mr. Eliason has owned this home. Mr. Eliason stated he bought the home in 1984. He added that he feels the City is very predictable when it comes to valuing homes. Councilmember Lhotka stated he does not understand why there was such a large increase in the market value of this home. The City Assessor stated an appraisal has been done of the home and staff believes this house was originally undervalued. Mayor Nyquist inquired when the home was last appraised. The City Assessor stated it was appraised in 1987. Councilmember Lhotka stated he has a real problem with such a large increase for this property. Mayor Nyquist inquired what the market values were of the other homes used as comparables. The City Assessor stated the market values of the other homes were as follows: 6101 Scott Avenue North - $67,700, 5307 62nd Avenue North - $71,900, 6112 Quail Avenue North $65,800, and 5207 Paul Drive - $75,000. There was a motion by Councilmember Lhotka and seconded by Councilmember Theis to affirm the City Assessor's 1988 valuation for the property at 5313 Boulder Lane. The motion passed unanimously. The City Assessor stated the next appeal was from Leslie Reinhardt, 5713 Humboldt Avenue North. He noted Mr. Reinhardt was not present this evening and also would not allow the appraiser to enter his property for reviewal of the property. He added staff is recommending no change in the 1988 valuation. The City Assessor explained the Council may affirm the appraiser's recommendation which would allow Mr. Reinhardt the opportunity to appeal before the County Board or the City Council could take no actin at n all because Mr. Reinhardt did not appear, and then he would forfeit all rights to a County appeal. Councilmember Lhotka stated he would like to leave the opportunity open for Mr. 5 -2 -88 _3_ CORRECTION Reinhardt to appeal to the County. There was a motion by Councilmember Lhotka and seconded by Councilmember Scott to affirm the City Assessor's 1988 valuation of the property at 5713 Humboldt Avenue North. The motion passed unanimously. Mayor Nyquist recognized Mr. Radney Pullis, 7211 Dallas Road. Mr. Pullis stated he has been working on an - addition that was started in November of 1982. He added he feels his home has been taxed very erratically over the years, and he feels his home is currently valued $6,000 too high. Councilmember Theis inquired if normal repair items affect the value of a home. The City Assessor stated normal maintenance items that are not required for the sale of a home are ignored when figuring market value. Councilmember Lhotka asked what the valuation was for 1987. The City Assessor stated it was $98,500. He explained that generally a City Assessor or appraiser would tend to wait until an addition was complete before assigning a value to it. However, when the completion of the addition drags on over a number of years a value must be given. He added that the total valuation increase was not all due to the addition but also to the rate of inflation. He explained staff is recommending reducing the market value for this home from $112,300 to $106,900. There was a motion by Councilmember Theis and seconded by Councilmember Lhotka to reduce the 1988 valuation of the property at 7211 Dallas Road to $106,900. The motion passed unanimously. The City Assessor stated the appraiser has informed him that Mr. Lidberg, 7032 Willow Lane North, would like the Council to take action this evening to allow him to keep his options open for appealing to the County. There was a motion by Councilmember Lhotka and seconded by Councilmember Theis to affirm the City Assessor's 1988 valuation for the property at 7032 Willow Lane North. The motion passed unanimously. Mayor Nyquist recognized Wilbert Anderson, 5507 Irving Avenue North. Mr. Anderson stated from 1986 to 1987 there was a $3,400 jump in his valuation and from 1987 to 1988 a $3,700 increase. He stated he did not question for the first increase because of the rate of inflation, but he feels the second increase is rather high. The City Assessor briefly reviewed the three comparables which were done for this home. Mr. Anderson stated if the comparable homes sold for the prices stated, they were greatly inflated. He added he feels the market value for these homes is greatly inflated in comparison to the neighborhood. Councilmember Scott inquired if homes in this price bracket generally sold faster than other priced homes. The City Assessor responded affirmatively. Councilmember Scott noted if homes in this price bracket sold the fastest, it would then push the market values up. Mr. Anderson stated a real estate agent has told him there are no $80,000 homes in this neighborhood. There was a motion by Councilmember Scott and seconded by Councilmember Theis to affirm the City Assessor's 1988 valuation for the property at 5507 Irving Avenue North. The motion passed unanimously. 5 -2 -88 -4- t The City Assessor stated the next registrant is William and Bonnie Schutte. He noted the Schutte's contacted him this afternoon and stated there has been a family emergency and they would like their request to be considered as a written request. There was a motion by Councilmember Theis and seconded by Councilmember Scott to affirm the City Assessor's recommendation for the following PID numbers: 35- 119- 21 -11- 0009, 35- 119 -21 -11 -0010, 35- 119 -21 -11 -0007, and 35- 119 -21 -11 -0008. The motion passed unanimously. The City Assessor .introduced the next appeal which was from Edgar S. Steele. The City Assessor stated Mr. Steele feels that the market value of two vacant properties are being affected by the contamination of the Joslyn pole yard to the north of the subject properties. He noted after much discussion and review of the area, staff has determined that pollution may be detrimental to the sale of vacant lots. He added there are three other vacant parcels in the area, but these owners did not contact the City. However, staff feels these lots should also be reviewed. He stated staff is recommending a 25% reduction in value for Mr. Steele's two properties and the three other vacant parcels in the area. There was a motion by Councilmember Scott and seconded by Councilmember Lhotka to reduce the valuation by 25% for the following PID numbers: 10- 118 -21 -32 0057, 10- 118 -21 -32 -0067, 10- 118 -21 -32 -0058, 10- 118 -21 -32 -0059, and 10- 118- 21 -32- 0056. The motion passed unanimously. The City Assessor introduced the next appeal from Equitec Financial Group, Inc. He referred the Mayor and Councilmembers to the brief letter submitted by Mr. Jeffrey Humphrey. There was a motion by Councilmember Theis and seconded by Councilmember Scott to affirm the City Assessor's 1988 valuation for the following PID numbers: 35- 119 -21 -22 -0008, 35- 119 -21 -22 -0007, 35- 119 -21 -22 -0011, and 35- 119 -21 -22 -0005. The motion passed unanimously. The City Assessor stated Mr. Dave Huang, 6400 Girard Avenue North, contacted his office today and asked that he be allowed to have his request considered as a letter request to keep his options open for the County review. There was a motion by Councilmember Lhotka and seconded by Councilmember Theis to affirm the City Assessor's 1988 valuation for the property at 6400 Girard Avenue North. The motion passed unanimously. i ADJOURNMENT There was a motion by Councilmember Lhotka and seconded by Councilmember Scott to adjourn the meeting. The motion passed unanimously. The Board of Equalization adjourned at 8:57 p.m. i City erk Mayor 5 -2 -88 -5- i