Loading...
04-26-21 Local Board of Appeal and EqualizationCITY OF OTSEGO LOCAL BOARD OF APPEAL AND EQUALICATION MONDAY, APRIL 26, 2021 5:30 PM OTSEGO PRAIRIE CENTER Call to Order. Mayor Jessica Stockamp called the Local Board of Appeal and Equalization to order at 5.30 PM. Roll Call: Mayor Jessica Stockamp; Councilmembers: Tom Darkenwald, Jeff Dahl, Brittany Moores, and Tina Goede. City Staff: City Administrator/Finance Director Adam Flaherty; Parks and Recreation Director Ross Demant; City Planner Daniel Licht (*)a and City Clerk Audra Etzel (*)K This meeting is preceding under MN State Statute 13D.021 allowing members to appear by telephone or video conference due to the ongoing health pandemic and state of emergency. Those indicated with a (*) attended via video conference. i. Local Board of Appeal and Equalization Comments by the Assessor. Tony Rasmuson, County Assessor; Lori Thingvold, Senior Commercial Appraiser, Jaimee Jenson, Appraiser; Tammy Anderson, Appraiser; and Mike Vanderlinden, Appraiser from Wright County attended. Mike Vanderlinden, Wright County Appraiser, stated the purpose of this Local Board of Appeal and Equalization is to review the 2021 assessment for property taxes due and payable in 2022. The Board has the ability to make changes to individual property valuations and classifications based on the appeals presented to them, with the exemption to the following — they are unable to open any prior year's assessment, including for taxes payable in 2021. They are unable to grant an exemption. They are unable to order property 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. Minnesota state law requires Assessors to value property at 100 percent of the market value, the statutes allow the Assessor to be within a range of 90 to 105 percent of market value. The assessors estimate of market value is prima facie valid correct the burden of proof is on the taxpayer to prove that the assessor's value is in error. The sales ratio study period is from October 1, 2019 to September 30, 2020. Sales that occur during this time are the basis for the January 2, 2021 assessment date. The following statistics summarize what has occurred for the Wright County Assessment for 2021. 2,115 residential and seasonal recreational sales had occurred with a time adjusted medium sales ratio percent of 90.69%, values have increased 4.79% county wide bring us to approximately 95%. 24 commercial sales with a median sales ratio of 95.4%, commercial values were increase 1.27%. 3 industrial sales with a median sales ratio of 90.98%, industrial values were increased 4.52%. 9 apartment sales with a median sales ratio of 91%, values were increased 5.31% on average. The market values on AG property increased by 3.71% county wide. Overall property types in Wright County had an increase in market value of 4.43% for the 2021 assessment. The current assessment meets or exceeds standards for uniformed assessment and jurisdiction as established by the International Association of Assessment Officers. Residential land and buildings increased 4.42% in Otsego based on 365 qualified sales. He further stated commercial &industrial values increased approximately 3.78%. Page 1 of 5 Tammy Anderson, Senior Appraiser — distributed handouts to the City Council regarding sales. Review Valuations of Property Owners. Open Forum. Three properties located near Coborns, called and spoke with Mr. Vanderlinden. The packet contains sales that have taken place. Bob Albold, 118-500-221207, 15565 90t" Street NE. Spoke with Mr. Vanderlinden at Wright County on a couple occasions. The county is comparing his property to the Lefebvre property, this property is still unsold. He has 10 acres land locked away from everyone with no city assessments, streets, curbs, sidewalks, or fire hydrants. He would like to plead his case. Wright County's best comparison is Odean and 70t", like Bob's purchased by investor and surrounded by investor property, this sold September 30, 2020 for $484,500, Tammy Anderson from Wright County said on a zoning map this is a transition area. When looking at valuation each year they look at what is the highest and best use of this property. If someone were to sell, what would they likely sell it for and why. Looking at the development coming in on both sides and the guided use on the future land use plan that has been adopted by the city, they are looking at sales of similar zoned and land use when they are looking at values. Lots of comparisons in the area, lots of activity. Looking at sales coming in and responding likewise with their values. CM Darkenwald asked Mr. Albold what he thought was a fair value. Mr. Albold noted the proposed values went from $285,000 to $485,000, He feels a 4.3% increase would be fair. Katherine Coles, 118-500-221202, 15613 90t" Street NE, looked at comparisons and nothing compares to their property. Took into consideration the curb appeal of their home. Has lived here for 31 years and plans to stay. No longer has left turn access and now has a four -lane road in front of their house. Commercial business right next to their property open 7 days a week, with delivery trucks coming and going and has a 70-unit apartment in their back yard. No longer a nice quite neighborhood. Has city sewer and water on the SE corner of their property, at the city's request. Instead of a 26.2% increase in property tax would like to see 3- 4% increase. Charles Kolles, 118-500-221201, 15509 90t" Street NE, no one wants to be next to a commercial development, who will buy you out? No one is looking at his property. Last year he fought being commercial. Work your whole life and getting taxed out. Mr. Vanderlinden noted all three properties are in a very unique situation. This is the reason they are doing both a residential perspective and a commercial perspective. Prepared residential sales grids for all three properties. Currently recommending no change based on the strength of the residential comparables for Coles and Kolles properties. Mayor Stockamp asked about the Albold property. Mr. Vanderlinden spoke with Mr. Albold and his property came in at $485,000, the county did offer $436,000. Mr. Albold had not agreed to the amount yet and wanted to speak at the meeting. Ms. Anderson with Wright County understands their concerns, being in a transition area is rough. Need to come to a conclusion not based on who is there or if they have been there for three or 30 years, the value is based on what it would sell for on the open market. Looking at Page 2 of 5 values in transition area. Summary of the three properties, someone is going to pay a higher square foot for the land, not the buildings. Last year the building value was completely removed. Buildings are there and do need to be recognized and that is why they are added back in this year. No value contributed to the right-of-way on any of the properties. CM Darkenwald asked what was last year's proposed value was for the properties? Coles proposed property $266,300 to $336,400 Kolles proposed property $268,400 to $346,600 (29%) Albold proposed property $296,100 to $485,800, Wright County agreed to go down to $436,200 CM Darkenwald asked about the added building values in regards to highest and best use, wondering how you include saying that commercial value shows highest and best use in the future, when the house would most likely be torn down if a commercial use. Ms. Anderson with Wright County said these are in transition, where they are at right now. Wright County said the city could reconvene or pass to the county board. The Council would like to look at last year's minutes and how the County came up with the values for all three properties. The County has asked for information from the property owners on what they would sell the property for. All three properties are currently zoned A-1 Agricultural. CM Moores this needs closer review and not comfortable making a decision tonight. Council will schedule a reconvene at the end of the meeting. Wright County noted if ready to develop value would be at $5.00 a square foot. Travis Wims, 118-339-001010, 8853 Kahl Way NE, stated he was at the meeting last year. Was told if he had an appraisal this would factor into the value. Looking at refinancing he received an appraisal in August 6, 2020 for a value of $470,000, which is below the value listed with the county. Will provide a copy of the appraisal for the record. His house is unique, has photos to prove Mr. Vanderlinden spoke with Travis. Used the three comps in the finance appraisal the sales were 9-11 months old at the date of the appraisal, time adjustment was not completed. Wright County proposed $497,025, Mr. Wims thinks $490,025 is a fair market value, about $7,000 less. Mr. Wims left photos for Council to review. Wright County has not been in his house to inspect, Mr. Wims would allow. Jeffrey &Colleen Nelson, 118-271-001120, 17052 58th Court NE —proposed taxes for 2022 from $379,200 I located in River Pointe on about a 1/3 of an acre. They have been speaking with Mr. Vanderlinden. In the process of finishing the basement, only the bathroom has been finished and Mr. Vanderlinden did propose and adjustment based on that information. Looked at the comps and they don't seem comparable, one had an acre of land. Found two comps from their neighborhood sold in May 2020. CM Darkenwald said he wants comparables brought back to see comparisons. Mayor Stockamp asked about the acreage comp if the land was deducted, needs to be reviewed. Mr. Nelson will leave the two address for Mr. Vanderlinden to review. Page 3 of 5 Matthew Thell, 118-500-333205, 14186 62"d Street NE, One acre parcel that is a driveway/road and jumped from $100 to $3,600, Other parcel with the home went from $221,100 to $225,700. Mr. Thell is not contesting the property value of the parcel with the home. Wright County is looking at both parcels valued at use for the 5-acre parcel. There would be no access to the property without the driveway, Wright County used to use $100 value; now looking at the whole picture. Planner Licht noted the driveway has a separate PID, done prior to the city being incorporated, either parcel is showing up as a plat, would not be allowed today. If you look at both parcels, the increase overall of a little over 2%. Wright County increased to $3,600, because the $100 did not meet the standard. Mr. Vanderlinden said the county has been trying to clean up these issues. Will add to list to review. Gerard Zachman, 118-500-333100, 6495 O'Dean Avenue NE, he has ahalf-acre1,000' — hammer handle. Garbage trucks were backing down. Does not have exclusive use to the property. The City of Otsego uses the property and residents are benefiting from the property use. Value is proposed to go from $3,400 to $3,700. Four feet are encroached and Mr. Zachman does not feel he should be paying the taxes on that portion. Agreements states it is supposed to be staked every 50', so everyone knows where the property lines are. The road migrates every year. Wants something done with garbage trucks and emergency vehicles turning around at the end of the road. Mr. Vanderlinden noted normal land increase year over year to 7.27%. Green Acres is being applied to this land. Wright County will look at the agreement and review the status. Mayor Stockamp stated the Council would like more information brought back to review the issues discussed. Email received today from Clem Darkenwald regarding PID 118-500-262100. He is contesting the increase over the two-year period, can only appeal one year. This property is 7 3/4 acres piece with river front and building entitlement. The county did not have time to prepare due to the timing, but told Mr. Darkenwald he would read into the record. CM Darkenwald would like to recuse himself from this portion of the discussion. The City will need to reconvene the Local Board of Appeal and Equalization within 20 days to be within state guidelines. Mayor Stockamp motioned to reconvene the Board of Review on Wednesday. May 12, 2021 at 5:30 PM at Otsego Prairie Center, 8899 Nashua Avenue NE, seconded by CM Darkenwald. Discussion CM Darkenwald asked the Wright County Assessor's office to please have the comparables to compare, along with Mr. Travis Wims appraisal and other documentation. Roll Call: In favor; Goede, Stockamp, Darkenwald, Moores and Dahl. Against: none. Motion carried 5-0. 2. Adjourn. Mayor Stockamp motioned at 7:03 pm to reconvene the meeting on Wednesday, May 12, 2021, seconded by CM Moores. Roll Call: In favor; Goede, Stockamp, Darkenwald, Moores and Dahl. Against: none. Motion carried 5-0. Page 4 of 5 1Audra Etzel, City Clerk Page 5 of 5