Loading...
HomeMy WebLinkAbout2021 04-05 CCM Local Board of AppealMINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA LOCAL BOARD OF APPEAL AND EQUALIZATION APRIL 5, 2021 1. Call to Order The Brooklyn Center Local Board of Appeal and Equalization was called to order by Mayor Milce Elliott at 6*00 p.m. The meeting was conducted via Zoom. 2. Roll Call Mayor Milce Elliott and Councilmembers Marquita Butler, April Graves (joined the meeting at 5:12 p.m.), Kris Lawrence -Anderson (joined the meeting but initially inaudible), and Dan Ryan. Also present were City Manager Curt Boganey and City Cleric Barb Suciu. 3. 2021 Board of Appeal and Equalization Meeting Agenda Items Mayor Elliott welcomed meeting attendees. He stated this is the first of 2 meetings providing an opportunity for taxpayers to voice concerns about their property classifications. He added County Property Assessors have joined the call to address any questions. He noted the reconvene meeting will be held April 19, 2021 at 6:00 p.m. of needed. 4. Local Board of Appeal and Equalization (LBAE) Certification Forms Mayor Elliott stated the Assessor will submit Local Board of Appeal and Equalization Certification Forms on behalf of the Local Board, due to the meeting format. Councilmember Ryan asked whether Board Members will be asked to come to City Hall to sign certification documents in person. City Manager Curt Boganey stated, due to the pandemic, State law and regulations have been modified to allow the Assessor to attest to the presence of the Board members who have joined the meeting. 5. Questions Regarding the Local Board of Appeal and Equalization Duties Josh Whitney, Hennepin County Residential Property Assessor, provided a brief summary of the Assessor's duties and responsibilities. He noted the purpose of the appeals process is to provide a Fair and objective forum for property owners to appeal their property values or classifications. Mr. Whitney reviewed the 2021 assessment summary, with 1/5 of Brooklyn Center residential properties reviewed each year, and records updated. Statistical analysis is provided for all properties sold between November 1, 2019 and September 30, 2020. The overall value increase 04/OS/21 -1- for property types was 4.4% with 297 exempt parcels. Evaluation notices were mailed in March 2021. Mr. Whitney stated he has received approximately 29 phone calls, including conversations or virtual inspection, and all issues were settled with property owners. He added there was one write- in residential appeal and three commercial appeals that occurred within the 10-day window. These d appeals will require discussion in front of the Boarof Appeals. Mr. Whitney stated Brooklyn Center saw a significant increase of 45.5% in home sale prices since 2016. He added the median sale price in Brooklyn Center is $240,000. He noted median sale prices of surrounding communities: $283,000 in Brooklyn Park; $255,000 in Crystal; $292,000 in New Hope; $264,000 in Robbinsdale; and $209,000 in the Camden neighborhood of Minneapolis. Mayor Elliott asked why townhouses have had the largest price increase percentage from last year at 7.4%. Mr. Whitney stated townhomes are an affordable segment of the real estate market. 6. Appearances by Taxpayers with an Appointment Mr. Whitney read a written appeal received within the 10-day window that he has already resolved with the property owners. The appeal was received March 30, 2021 for 511 56th Avenue N (PID 101-118-2142-0057) from property owners Janet Mary Saathoff and Holly Rae Saathoff. The Saathoffs disagreed with the value as they had a collapsed sewer line between the house and the street that caused water damage, rendering the lower level useless due to mold. The homeowner ,mailed 7 photos of the damage, which are included in the meeting packet. Mr. Whitney stated he removed the finished basement from the valuation which lowered the value from $209,000 to $190,000. The property owners concurred via email. Ashley Gunderson, Hennepin County Commercial Property Assessor, stated two calls were received that day that they have not been able to review: 5220 Camden Avenue N, 2 parcels containing TopGolf; and 5930 Brooklyn Boulevard, a multi -tenant retail property. She added the Assessor's Office is working with the owner of 5930 Brooklyn Boulevard and will continue to do so up until the reconvene. She noted the TopGolf assessment is complex, and a recommendation for a "no change" is requested to give the Assessor's Office more time to work through the valuation with the property owner. Ms. Gunderson stated a property owner, Al Franz, has joined the meeting to give a presentation on his property at 2781 Freeway Boulevard. Mr. Franz stated the pandemic has reduced functionality of the building for the tenants of the building. The reprographics business relied on walk-in customers to the showroom for demonstrations of graphic printers, and that space is no longer utilized. Another tenant, Provision Health, has asked for a reduction of their square footage by 1,100 square feet. A build -out in 2014 cost approximately $65,000 in Suite 120, but that tenant had to close their business due to the pandemic, which represented a loss of $16,500 in rent as well as legal fees of $3,000. 04/OS/21 -2- Mr. Franz stated he wants to keep his tenants in Brooklyn Center, and he likes the building, but he will have to reduce rent to keep the tenants, due to the pandemic as well as a surge in crime in the neighborhood. He added he feels taxes within the range of $44,000-50,000 would be acceptable to keep things going. He noted the value of the building is decreased by crime in the area. He thanked the Board for giving him the opportunity to make his presentation. Eric Bjorklund, Property Assessor, gave a review of the Franz property, a 22,700 square -foot flex - industrial property built in 2001. Most of the building space is at grade or ground level and fully occupied with three tenants. Franz Reprographics comprises 70% of the building. Mr. Bjorklund stated, to determine the property market value, he conducted an appraisal using sales comparisons and income capitalization and reconciled the results. The income approach value was $1,540,000, and the sales comparison value was $1,975,000. The two approaches reconciled in the middle but towards the lower end of the value at $1,750,000. Mr. Bjorklund stated his recommendation is to sustain the 2020-2021 estimated market value of $1,415,000. Mr. Franz agreed. Ms. Gunderson stated, with regard to the other two commercial properties, the Board could vote no change to continue the assessments to the County Board level. Councilmember Ryan stated he supports the recommendations, which will allow the property appellants to proceed with the assessment appeal process. Councilmember Ryan moved and Councilmember Graves seconded to approve the recommendation of no change for 6420 Camden Avenue North and 6930 Brooklyn Boulevard. Mayor Elliott requested clarification regarding the TopGolf property assessment and asked whether there is not enough time for the assessors to work out an agreement. He also asked whether there is time to work out an agreement with the property owner at 6930 Brooklyn Boulevard, Ms. Gunderson stated the Board can decide whether to recommend no change or reconvene. Councilmember Graves stated there was no vote on the motion that is on the table. She added she supports moving forward with the recommendation as she is concerned about adding a reconvene date that other Board members may not be available to attend. Mayor Elliott stated a reconvene date is already set for April 19, 2021 at 6:00 p.m. Mayor Elliott stated, on the question of the motion, there can be discussion once a motion is made but before a vote is taken. Motion passed unanimously. 04/OS/21 -3- Mayor Elliott moved and Councilmember Graves seconded to approve the amended valuation for 511 56t' Avenue North of $109,000, Motion passed unanimously. Councilmember Graves moved and Mayor Elliott seconded to accept the recommendation of no change for 2781 Freeway Boulevard. Motion passed unanimously. 7. Appearances by Taxpayers without an Appointment -None. 8. Consideration of Written/Email Appeals -None. 9. Reconvene Meeting Date —April 19, 2021 at 6:00 p.m. 10. Recess Councilmember Graves stated she would like to make a motion to adjourn. Mayor Elliott asked whether there is any other business. Councilmember Graves moved and Mayor Elliott seconded adjournment of the Board of Appeal and Equalization meeting at 7:08 p.m. Discussion during the motion: Councilmember Ryan asked, as a point of order, whether City Staff have confirmed that there is no further business. Mayor Elliott confirmed this. He added there is o poi nnt of order on an adjournment. Councilmember Ryan stated it is necessary to determine that there is no further business. Motion passed unanimously. 04/OS/21 -4- STATE OF MINNESOTA) COUNTY OF HENNEPIN) ss. Certification of Minutes CITY OF BROOKLYN CENTER) The undersigned, being the duly qualified and appointed City Clerle of the City of Brooklyn Center, Minnesota, certifies: 1. That attached hereto is a full, true, and complete transcript of the minutes of a Locai Board of Appeals and Equalization Session Meeting of the City Council of the City of Brooklyn Center held on April 5, 2021 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 Apri126, 2021, Regular Session. City Clerk 04/OS/21 -5-