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Home My WebLink About2013 04-29 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 29, 2013 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, Kris Lawrence-Anderson, and Dan Ryan. Councilmember Lin Myszkowski was absent and excused. Also present were City Manager Curt Boganey, City Assessor Nancy Wojcik, Appraiser Jill Brenna, Appraiser 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 2013 assessment has experienced declining market valuations again in most markets; however, in single family properties, the first six months of the study showed slower decline, and the later six months showed a shift to market growth. The mixture for the complete ratio time period still showed decline overall, but growth has continued through the spring of 2013. Not all property types are continuing the trend. Lender-mediated sales continued to exist in the market for sales of residential properties. Commercial and Industrial properties saw variations in changes based on property use. Smaller and/or older style apartments are holding flat at last year's values,but larger apartment complexes are seeing a shift 04/29/13 4- in the market and beginning to see growth in the overall apartment market in suburban Hennepin County. Ms. Wojcik reported on Assessed Value by Property Type Tax Payable Years 2013 to 2014; Median Sale Prices; Percent of Parcels Changing in Estimated Market Value 2012 to 2013; Residential Median Assessed Value and Tax Capacity Years 2005-2014; Commercial and Industrial Analysis by Property Type Use 2013 versus 2012; and Apartment Analysis 2013 versus 2012. During the summer of 2012 the Assessor's Office conducted property reviews of single family and townhome properties in an area located north of Lilac Drive, east of Xerxes, and south of 73rd Avenue to the Mississippi River. The summer inspection area involved the review of approximately 1,783 parcels. All quintile inspections were completed by the end of October; and all permit reviews were completed by December 29, 2012. The overall value changes made to the 2013 assessments were as follows: Citywide (including all property types) -0.49 percent Citywide (excluding new construction) -2.70 percent Citywide (residential single-family detached only) -4.12 percent Citywide (excluding new construction) -4.28 percent Commercial 5.00 percent Industrial -0.06 percent Commercial and Industrial Land 18.74 percent Apartments -0.63 percent Condominiums -35.41 percent Townhouses -4.37 percent Double Bungalows -5.90 percent Residential: #50455 Off Water -4.23 percent Nbad#56 Waterfront 4.27 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 2013 estimated market values: Penny Lane, 5434 72"d Circle, expressed concern regarding the estimated market value of her townhome and felt that the property should be valued higher. She indicated that many improvements had been made to the property and that the exterior is in good condition. 04/29/13 -2- Ms. Wojcik read her report and explained staff's recommendations for the property located at 5434 72nd Circle as included in the packet. Her recommendation is to increase the 2013 estimated market value for the property from $61,300 to $63,400 for taxes payable in 2014, based on the characteristic changes from the energy efficient updates. Many of the additional items that Ms. Lane is requesting to be considered for a value increase are not defendable as an increase to value. There was discussion regarding another home in this area and reverse home mortgages. It was recommended to Ms. Lane that if she was considering a reverse home mortgage to seek advice from a third party. A motion by Councilmember Kleven, seconded by Councilmember Lawrence-Anderson to increase the 2013 estimated market value from $61,300 to $63,400 for taxes payable in 2014. Motion passed unanimously. 8. APPEARANCES BY TAXPAYERS WITHOUT AN APPOINTMENT No one appeared before the Board of Appeal and Equalization. 9. CONSIDERATION OF WRITTEN APPEALS The following provided written appeals and were not present. Minnesota School of Business (MSB) Holdings Brooklyn Center LLC, c/o Mike Myhre, 5910 Shingle Creek Parkway, states that after purchasing the property asbestos was discovered and they have spent roughly $60,000 to remove it from the site. Ms. Wojcik discussed her review of the property and is recommending a reduction in the 2013 estimated market value from$3,100,000 to $2,820,000 for taxes payable 2014. A motion by Councilmember Ryan, seconded by Councilmember Lawrence-Anderson to reduce the 2013 estimated market value from $3,100,000 to $2,820,000 for taxes payable in 2014. Motion passed unanimously. AEON, c/o Amanda Moeller, 6221 Shingle Creek Parkway, states that they believe the property is overvalued based on a December 2012 appraisal. Ms. Wojcik discussed her review of the property,and is recommending to sustain the 2013 estimated market value of$5,423,000 for taxes payable in 2014, based on the income and market approaches to value. A motion by Councilmember Ryan, seconded by Councilmember Lawrence-Anderson to sustain the 2013 estimated market value of $5,423,000 for taxes payable in 2014. Motion passed unanimously. 04/29/13 -3- George and Kelli Zeller/Kevin and Margaret Doyle, 2818 Partners, 2105 571' Avenue N, states that the proposed property value of$1,090,000 overstates the value of the property by roughly $190,000. Ms. Wojcik discussed her review of the property and is recommending to sustain the 2013 estimated market value of$1,090,000 for taxes payable in 2014. A motion by Councilmember Kleven, seconded by Councilmember Ryan to sustain the 2013 estimated market value of$1,090„000 for taxes payable in 2014. Motion passed unanimously. Earle Brown Lanel Ltd Ptnshp c/o CPAC, Brad Matheidas, Agent for Owner, 6100 Summit Drive, states that the economic obsolescence justifies a twenty percent adjustment to the current assessment. Ms. Wojcik discussed that she had been working with Mr. Matheidas and would recommend that since he is unfamiliar with the tax appeal process and his request being for such a large tax reduction additional analysis would be needed and the option to continue to the County Board may work better. A motion by Councilmember Ryan, seconded by Councilmember Lawrence-Anderson to sustain the City Assessor's recommendation of getting further analysis at the County level for taxes payable in 2014. Motion passed unanimously. 10. SET DATE OF LOCAL BOARD OF APPEAL AND EQUALIZATION RECONVENE MEETING A date is not needed to reconvene. 11. ADJOURN A motion by Councilmember Ryan, seconded by Councilmember Kleven to adjoun the meeting at 7:59 p.m. Motion passed unanimously. 04/29/13 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 29, 2013. 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 13, 2013, Regular Session. City Clerk Mayor 04/29/13 -5-