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Home My WebLink About2012 04-30 CCM Board of Appeal and 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 APPEAL AND EQUALIZATION APRIL 30, 2012 CITY HALL—COUNCIL CHAMBERS 1. CALL TO ORDER The Brooklyn Center City Council met as the Board of Appeal of Equalization and the meeting was called to order by Mayor Tim Willson at 7:00 p.m. ROLL CALL Mayor Tim Willson and Councilmembers Carol Kleven, Kay Lasman, Lin Myszkowski, and Dan Ryan. Also present were City Manager Curt Boganey, City Assessor Nancy Wojcik, Appraiser Jill Brenna, Appraiser Technician Jason Vaith, and Deputy City Clerk Maria Rosenbaum. 2. LOCAL BOARD OF APPEAL AND EQUALIZATION (LBAE) CERTIFICATION FORM City Assessor Nancy Wojcik introduced the Local Board of Appeal and Equalization and discussed the Certification form. 3. THE PURPOSE OF THE LOCAL BOARD OF APPEAL AND EQUALIZATION Ms. Wojcik explained the purpose of the Local Board of Appeal and Equalization. 4. QUESTIONS REGARDING THE LOCAL BOARD OF APPEAL AND EQUALIZATION DUTIES There were no questions regarding the Local Board of Appeal and Equalization duties. 5. THE ASSESSOR'S REPORT Ms. Wojcik reported that the 2012 assessment has experienced declining market valuations, though certain types of property are not continuing that trend. Lender-mediated sales continued to dominate the market for sales of residential properties and commercial/industrial properties saw variations in changes based on property use. Smaller and/or older style apartments are holding flat at last year's values; growth is beginning to be seen in the overall apartment market in suburban Hennepin County. 04/30/12 -1- Ms. Wojcik reported on sales for residential, commercial/industrial, and apartments occurring during the October 1, 2010, through September 30, 2011, study period, along with Comparisons of the Brooklyn Center Assessed Value by Property Type for 2012 to 2013 Tax Payable Years; Percentages of Parcels Changing in Estimated Market Value 2011 to 2012; Residential Median Assessed Value and Tax Capacity Tax Years 2003-2013; Median Sale Prices; Commercial and Industrial Analysis by Use 2011 versus 2012; and Apartment Analysis 2012 versus 2011. During the summer of 2011 the Assessor's Office conducted property reviews within an area located north of 65th Avenue North, west of Xerxes and South of 73' Avenues to the westerly City limits. The summer inspections began at the end of April 2011 and included approximately 1,700 parcels; all quintile inspections were completed by the end of October 2011. The overall value changes made to the 2012 assessments were as follows: Citywide (including all property types) -7.0 percent Citywide(excluding new construction) -8.3 percent Citywide (residential single-family detached only) -11.8 percent Citywide (excluding new construction) -11.9 percent Commercial (excluding new construction) -3.1 percent Industrial (excluding new construction) -1.2 percent Apartments (excluding new construction) 0.7 percent Condominiums (excluding new construction) -5.6 percent Townhouses (excluding new construction) -20.1 percent Double Bungalows (excluding new construction) -14.9 percent Residential Neighborhoods: #50455 Residential Off Water -11.8 percent #56 Residential Waterfront -15.9 percent 6. QUESTIONS REGARDING THE ASSESSMENT REPORT There were no questions regarding the Assessment Report. 7. APPEARANCES BY TAXPAYERS WITH APPOINTMENTS The following addressed the Board to appeal their 2012 estimated market values: Spencer Ung, Ung Properties, LLP, 5301 Dupont Avenue North,expressed that he believes the value is too high; and the property was listed on the market for $309,000 for over one year and also listed for $329,000 for the past two prior years. Mr. Ung believes that the values should be based on supply and demand markets and as an investor he asked if the Board would consider reducing the value from anywhere in the range of$260,000 to $290,000. Ms. Wojcik read her report and explained staff's recommendations for the property located at 5301 Dupont Avenue North as included in the packet. After reviewing market listings, the list time of the subject, sale comparables, and the market derived income approach, it is her 04/30/12 -2- recommendation to reduce the subject property for the 2012 assessed value from $326,000 to $300,000 or a total of$50,000 per unit for taxes payable in 2013. The reduction is supported by the sales comparable approach and current market listing. A motion by Councilmember Lasman, seconded by Councilmember Ryan to reduce the 2012 estimated market value of $326,000 to $300,000 for taxes payable in 2013. Motion passed unanimously. Nhut Van Dang, 3707 50th Avenue North, expressed that he believes the 2012 assessment is overestimated and informed that after fixing the property to bring the value up he has been struggling with keeping it up and has been in the negative for the past three years. Ms. Wojcik read her report and explained staff's recommendations for the property located at 3707 50th Avenue North as included in the packet. After reviewing market listings, comparable sales and market rents, equal weight was placed on the market derived income approach and the market comparable sales. The indicated $67 per sq. ft. from the income approach falls within the market comparable sale price range of$66 to $84 per sq. ft. Both approaches support a $67 per sq. ft. valuation of the property. It is her recommendation to reduce the 2012 assessed value of $398,100 to $375,500 for taxes payable in 2013. A motion by Councilmember Lasman, seconded by Councilmember Myskowski to reduce the 2012 estimated market value of$398,100 to $375,500 for taxes payable in 2013. Motion passed unanimously. 8. APPEARANCES BY TAXPAYERS WITHOUT AN APPOINTMENT Kurt Graham, 6913 Oliver Avenue North, addressed the Board to appeal the 2012 assessment for this property and explained that he has a professional to represent him however his representative was not able to make the meeting tonight. Ms. Wojcik informed she was able to review this property but still needs to put together an appraisal report and that Mr. Graham's Appraiser had called and he would not be able to appear on April 30, 2012, but would on May 7, 2012. There was consensus of the Board for this property to be continued to the Board of Appeal and Equalization meeting on May 7, 2012, at 6:00 p.m. Michael Haase, 3607 50th Avenue North, addressed the Board to express that he believes the value is too high and that he would like to see it reduced to $125,000, due to his recent purchase. There was consensus of the Board for this property to be continued to the Board of Appeal and Equalization meeting on May 7, 2012, at 6:00 p.m. Monte Hanson, 3715 50th Avenue North, addressed the Board to ask that they consider a reduction as he believes the property is only worth $700,000. 04/30/12 -3- There was consensus of the Board for this property to be continued to the Board of Appeal and Equalization meeting on May 7, 2012, at 6:00 p.m. 9. CONSIDERATION OF WRITTEN APPEALS The following provided written appeals and were not present. Chet Yancey, Regal Cinemas Inc., 6420 Camden Avenue North, expressed that he believes there is a high degree of economic obsolescence for this theater style due to the cash flow that decreased by 89 percent since 2006 and the total revenues decreasing by 44 percent. The estimated market rent exceeds the amount the owner could pay in order to have positive cash flow. Ms. Wojcik discussed that Hennepin{County indicated that a request for this large of a reduction is not typically handled in this venue. Large discrepancies are usually handled in Minnesota Tax Court. She added that changes in valuation that exceed $250,000 are reviewed by the Minnesota Department of Revenue. There was consensus of the Board for this property to be continued to the Board of Appeal and Equalization meeting on May 7, 2012, at 6:00 p.m. Lee Sarin, 5810 Xerxes Avenue North, submitted an application for appeal of the $1,370,000 2012 estimated market value and a review has been set for Tuesday, May 1,2012. There was consensus of the Board for this property to be continued to the Board of Appeal and Equalization meeting on May 7, 2012, at 6:00 p.m. Chris Kennelly, Brooklyn Center Hospitality LLC, 2050 Freeway Boulevard, submitted an application for appeal of the $1,805,000 2012 estimated market value and a time needs to be set to review the property. 10. SET DATE OF LOCAL BOARD OF APPEAL AND EQUALIZATION RECONVENE MEETING Councilmember Lasman moved and Councilmember Myszkowski seconded to reconvene the Board of Appeal and Equalization meeting on May 7, 2012, at 6:00 p.m. Motion passed unanimously. 11. ADJOURN Councilmember Ryan moved and Councilmember Lasman seconded to recess the meeting at 8:04 p.m. Motion passed unanimously. 04/30/12 -4- STATE OF MINNESOTA) COUNTY OF HENNEPIN) ss. Certification of Minutes CITY OF BROOKLYN CENTER) The undersigned, being the duly qualified and appointed City Clerk of the City of Brooklyn Center, Minnesota, certifies: 1. That attached hereto is a full, true, and complete transcript of the minutes of the Board of Appeal and Equalization Session of the City Council of the City of Brooklyn Center held on April 30, 2012. 2. That said meeting was held pursuant to due call and notice thereof and was duly held at Brooklyn Center City Hall. 3. That the City Council adopted said minutes at its May 14, 2012, Regular Session. City Clerk Mayor 04/30/12 -5-