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ITEM 3.2B Board of Review 4.22.2019ITEM 3-28 CITY OF OTSEGO BOARD OF REVIEW OTSEGO PRAIRIE CENTER MONDAY, APRIL 22, 2019 5:30 PM 1. Mayor Jessica Stockamp will call the Board of Review to order. Mayor Stockamp called the Board of Review to order at 5:30 PM. Roll Call: Mayor Jessica Stockamp; Councilmembers: Tom Darkenwald, Corey Tanner, Jason Warehime and Tina Goede. Staff: Adam Flaherty, City Administrator/Finance Director and Tami Loff, City Clerk. Attending from the Wright County Assessor's Office; Wright County Assessor Tony Rasmussen, Assessor Mike Vanderlinden and Assessor Brice Nelson. 2. Comments by the Assessor. Assessor Brice Nelson said the purpose of this Local Board of Appeal and Equalization is to review the 2019 assessment for taxes due and payable in 2020. The Board does not have the authority to open any prior year's assessment. The Local Board does not have the authority to grant an exemption or to remove a property from the tax roll. A quorum must be present and at least one of the members must be trained and certified under MN Statute 274.014. Minnesota state law requires Assessors to value property at 100 percent of the market value however the statutes allow the Assessor to be within a range of 90 to 105 percent of market value. The sales ratio study period is from October 1, 2017 to September 30, 2018. The sales data gathered from that period is used to appraise property. He stated residential land and buildings increased approximately 6.7% throughout Otsego. He further states commercial & industrial values increased approximately 3.84% and agricultural values increased approximately 3.26%. 3. Review Valuations of Property Owners. Open Forum: Daniel Limoseth, 14975 95th Street NE, 118-500-164401 and 118-500-211100; said he owns two lots; From 2018-2019 the value on the one acre lot went from $4,100 to $6,200; he said he called and asked Wright County why it went up and was told because you can build on it. Mr. Limoseth stated years ago he was told by the City the lot was not buildable. He said and now this year (payable 2020) it went up $50,000 and he said his parcel with his house went up approximately $20,000, so with both properties, the value has gone up in total of approximately $60,000 in one year. He feels that is too high. Assessor Mike Vanderlinden explained that the county has been working at getting all the buildable one acre lots in Otsego up to a minimum value of $50,000. City Planner Licht stated yes he can build on that lot. The City Council concurred for Wright County to inspect the home and property and bring back; they also directed the City Planner to review the easement for the one acre lot to confirm that it is buildable. Ryan KorFatis, 8555 O'Dean Avenue NE, 118-031-001090; questioned what he felt was an extreme percentage increase of 47%. He said from 2018-2019 the estimated market value from $103,300 to $107,800. He said the proposed market value for 2020 is $158,200. He said in June of 2016 he did an addition to his garage which on his 2018 taxes it did show new improvements. Assessor Mike Vanderlinden explained this past summer that area was reviewed; all of Walesch Estates and all of Vasseur's Oak Grove, and there were a lot of mobiles and manufactured homes that went up a considerable amount because they were undervalued. He stated that Wright County became aware that people can finance these if they are on a permanent foundation, and banks will now finance these and as a result the demand has gone up increasing the market value. Thain Spar, 6868 O'Dean Avenue NE, 118-500-331200; stated he is here regarding the 10% value increase. He stated a section of his property is not buildable due to wetland. His property has 15.4 acres of wetland and 1 acre of pond of the 23 acre parcel. He said the only spot to subdivide would be on the north. He compared his to the parcel that sold off Odean for $635,000 for 20 acres with fully developable land with access to city water and sewer. He said his acres are not buildable yet he is being billed higher than a lot that was able to subdivide. It was noted that the homes are valued more than $200,000 difference between Mr. Spars home and the one he referenced. The City Council concurred for Wright County to inspect the home and property and bring back. Jerome Bauer, 6685 O'Dean Avenue NE, 118-500-332400; questioned his land value compared,to parcel 118-500-284401. Assessor Mike Vanderlinden said part would be for the improved driveway and then the additional amount would be for access to the pond that the other parcel does not have. Wright County is recommending the following: Erik Thole, 118-041-003080; 9347 Padgett Avenue NE; decrease value from $267,600 to $254,900 based on an interior inspection. Jason and Nicole Davis, 12175 68th Circle, 118-276-003040; decrease value to $414,300 from $428,800 due to basement finish that is not complete. Jeffery and Joan Hasslen, 1339195 th Street NE, 118-010-009010; decrease value to $404,000 from $427,500. CM Darkenwald motioned to decrease value for PID's 118-041-003080, 118-276- 003040 and 118-010-009010 as recommended by the Wright County Assessor. Seconded by CM Tanner. All in favor. Motion carried. CM Darkenwald motioned to close all new appeals. Seconded CM Warehime. All in favor. Motion carried. Mayor Stockamp motioned to continue the Board of Review on Monday, May 6, 2019 at 5:30 pm at Otsego Prairie Center, 8899 Nashua Avenue NE. Seconded by CM Darkenwald. All in favor. Motion carried. Recessed at 6:55 PM. Mayor Jessica Stockamp Attest: Tami Loff, Clerk