04-25-22 Special City Council Meeting MinutesOTSEGO CITY COUNCIL SPECIAL MEETING
MONDAY, APRIL 25, 2022
5:30 PM
OTSEGO PRAIRIE CENTER
Call to Order.
Mayor Stockamp called the meeting to order at 5:30 PM.
Roll Call:
Mayor Jessica Stockamp; Council members: Tom Darkenwald, Tina Goede, Brittany Moores, and Jeff
Dahl. City Staff: City Administrator/Finance Director Adam Flaherty; City Planner Daniel Licht; and City
Clerk Audra Etzel.
1. Local Board of Appeal and Equalization
Comments by the Wright County Assessor.
Tony Rasmuson, County Assessor; Jaimee Jensen, Appraiser; Tammy Anderson Appraiser; Mike
Vanderlinden Appraiser; Lori Thingvold Senior Commercial Appraiser; and Kirsten Olson Appraiser,
Mr. Vanderlinden stated the purpose of this Local Board of Appeal and Equalization is to review the 2022
assessment for property taxes due and payable in 2023. The Board has the ability to make changes to
individual property valuations and classifications based on the appeals presented to them with the
exception of the following: they are unable to open any prior year's assessments including for taxes
payable in 2022, they are unable to grant an exception, they are unable 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 Statutes, section 274.014. Minnesota State law requires the assessors to value property at 100
percent of the market value; the state statue allows the assessor's to be within a range of 90405% of
market value.
The assessor's estimate of market value is prima facie valid correct. The burden of proof is on the
property owner to prove that the assessor's value in in error, per MN Statues, section 271.06a The sales
ratio study period is from October 1, 2020 to September 30, 2021. Sales that occur during this time
frame are the basis for the January 2, 2022 assessment date. Several statistics for the sale period were
reviewed as included in the packet.
The current assessment meets or exceeds standards for uniformed assessment in all jurisdictions as
established by the International Association of Assessment Officers.
Mr. Rasmuson said the DOR certification book was used for values, noting any value reductions must be
justified due to shifting the tax burden to other properties in the jurisdiction. The assessor's role is to
classify and appraise the properties, not tax. Mr. Rasmuson reviewed the property taxation timeline and
impact market appreciation has on market value. The current market is not unique to Wright County,
surrounding counties are seeing 13%-24% residential value increases.
The Homestead Market Value Exclusion under current law, reduces the taxable market value for
properties qualifying for homestead valued below $413,800. The formula set by state law phases out
the benefit as the estimated value increases. Properties with a total estimated market value of $76,000
receive the maximum benefit of a 40% reduction in taxable value. Properties valued between $76,000
and $413,800 have their exclusion calculated by taking the maximum exclusion ($30,400) and reducing
it by 9% of the market value over $76,000. Properties valued at $413,800 or more do not receive the
exclusion.
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Mr. Rasmuson reviewed the Property owner appeal options and noted that if taxes go up more than
12% owners can apply for a property tax refund in August.
CM Darkenwald asked about the Homestead Market Exclusion and if any bills are being introduced to
amend the current formula to match the market increases? Mr. Rasmuson was not aware of any at this
time. CM Darkenwald asked if the City Council still has the ability to adjust values to what is just and
reasonable, based on Minnesota Statute 274.01? Mr. Rasmuson said statute has not changed. CM
Darkenwald further asked about the percentage increases proposed.
Otsego residential land and buildings (less new construction) increased approximately 18.89%. The
property value increases are the result of 385 qualified sales used in the residential sales ratio study.
Commercial & industrial values increased approximately 15.99%.
Mr. Vanderlinden has a list of value reductions based on inspections and is looking for a motion to
approve.
Davika &Michael Smith; 118-014-001050; value of $286,800 reduced to $271,100
Wade Klick; 118-292-002130, value of $436,000 reduced to $403,600
Ben Higginbotham, 118-081-000116; value of $212,100 reduced to $182,100
Betty Matras; 118497-012040, value of $404,700 reduced to $394,800
William Codere; 118-081-000091; value of $214,051 reduced to $177,500
The Assessor's notes included acronyms for reductions: Effect Year Built (EYB), Basement Finished
Average (BFA), Deck Good (DKG), and Deck Fair (DKF).
CM Darkenwald motioned to reduce the values based on inspection to PID's: 118-014-
001050, 118-292-002130, 118-081-000116, 118497-012040, and 118-08i-000091 as
noted, seconded by CM Dahl. All in favor. Motion carried 5-0.
LeRoy Lindenfelser at 118-800-221401 contacted Wright County at 4pm today via email and has not
replied back to I County Assessor's office since.
Review Valuations of Property Owners
Property owners with appointments:
Charles Kolles 118-500-221201 15509 90th Street NE, not present.
Katherine (Mathison) Coles, 118-500-221202, 15613 90th Street NE, said she looked at the comps sent
by the county and feels the comps provided are unreasonable. Mr. Vanderlinden said these are the best
four comps with acreage their office could find. Ms. Anderson noted this has been a topic in past years
and their approach was a residential value; first acre value, adding 2-5 acres, and the value for anything
over 5-acre value. One acre is valued at commercial due to the business, the rest is residential. The
2021 estimated market value was $277,500, this was based on City Council's recommendation last year.
Mrs. Coles noted this exceeds 20% and due to desperation in the housing market others are seeing
increases. Mr. Vanderlinden noted the property is listed for sale. Mrs. Coles said they have no contracts
and the sign is just for informational purposes. Mr. Rasmuson asked if Mrs. Coles had any appraisals or
a market value to show the value should be less? Mrs. Coles said she did not. Mr. Rasmuson said the
market has changed. CM Darkenwald asked if the comp grid was correct? Mrs. Coles said the second
bathroom is not full, the shed on the property is portable and added the county assessed the full 5
acres. Ms. Anderson said the acreage was adjusted .3 acres for right-of-way. Mayor Stockamp noted
the value of $336,100 is between the comps presented. Ms. Anderson said they are looking at the
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comps and adjustments were made for the different features, noting a 3/4 bathroom is considered full by
the market (shower, toilet, and sink). Mrs. Coles said based on that description, she does have two full
bathrooms, but nothing has been done since they moved in 30 years ago. Mrs. Anderson said age is
factored into the formula, with the effective age averaged; they strive to make consistent county wide.
Mrs. Coles said the county did do a walk-through of the property. Last year the City increased 5% last
year, noting they are on a fixed income and her husband is disabled.
Mayor Stockamp appreciates the County keeping the property residential for values. CM Moores
remembers the discussion last year and the county valuing the property as residential. Ms. Anderson
said this is a little more than the 20% because the building value was lower in prior years, now valued
the same as other residential parcels. Ms. Anderson said based on the zoning plan, the property should
be valued as commercial property. CM Darkenwald asked if this should be valued as commercial? Ms.
Anderson, said yes.
Vernon Heidner 118-015-001140 13922 91�t Street NE, asked if Mr. Vanderlinden had the up-to-date
comps he provided? Mr. Vanderlinden said yes. Mr. Heidner's value went from $313,300 to $388,800
(about 24%) following an inspection and he feels the value is still too high and the comps do not match
his property. Mr. Heidner noted all the comps he provided had been remodeled (granite countertops,
special flooring, etc.) and his house does not have these features and feels his house should be
substantially lower. Mr. Heidner noted issues with his house built in 1971 (siding and garage, one
bathroom is original, kitchen4981, green treated deck-1987). Mr. Heidner feels the system the county
uses doesn't fit his value and should be lowered. Mr. Heidner noted none of the comps used are the
examples that he provided to the County. Mr. Vanderlinden did not use the comps provided because
these houses were upgraded with more features, they used comp 5 because it sold as is with significant
issues. Mr. Heidner said it would cost him $170,000 to bring up his value compared to his neighbor's
values; over the years he has added $70,000 in upgrades to a 50-year4d house that still has issues.
CM Darkenwald would like to see the three comps Mr. Heidner provided (PID's: 118-015-002170, 118-
015-002160, 118-015-002180) and now the county calculated their formulas.
Glen Beltrand 118-500-353209 16093 62nd Street NE, not present.
Paul Moriarty, 118-800-141101(1now) 95t" Street NE), 118-800-141406 (access to 10940 and 10830
95t" Street NE) 118-800-141100 (10940 95t" Street NE), 28335 124t" Street, Zimmerman 55398 (10940
95t" Street NE), does not have any facts for valuations. Mr. Moriarty spoke with Mr. Vanderlinden and
feels the value should be lower based on NorthStar Treatment Center proximity to his property. Mr.
Moriarty wants another comp since this is a unique use and is requesting the value be compared to
other counties with a similar use. CM Darkenwald said he recalls the approval for use and the impact is
not supposed to affect the property. Mr. Moriarty feels his property is affected and only those within
350' were notified of the facility. City Planner Licht said staff noticed all property owners within 350' per
MN State Statute. Mr. Licht noted the criteria to make zoning approvals do not consider property values
when making planning and zoning consideration; absent an appraisal it is hard to quantify, for that
reason property values are not considered. Ms. Anderson said there is another treatment facility in
Wright County and there is no impact to those property values. Mr. Moriarty asked if any of those
properties have been sold? Ms. Anderson said the property value has not been affected, with the
current market they are finding someone is always willing to buy.
Mayor Stockamp asked if Mr. Moriarty wants the county to compare to other counties to see if that
would affect the price? Mr. Moriarty would like all three of his properties (26 acres) compared to other
counties that have similar use.
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William Codere, 118-081-000091, 7043 Quantrelle Avenue NE, Unit 91, not present but it was discussed
that an agreed upon reduction was read to the Council earlier in the meeting.
Joel Kolles 118-500-1921011 told Mr. Vanderlinden he decided not to attend.
OR Anderson said a letter from Holiday regarding PID 1184734O01.020 was received at City Hall.
Holiday Gas Station sent to all Minnesota cities a letter, stating their value was too high. Ms. Anderson
would request a motion to not change the property value.
Opened to property owners in attendance:
Bob Albold 118-500-221207 15565 90th Street NE, has the long driveway next to the new apartment
complex near Coborn's. His value went up 24% from $308,500 to $405,800, Property is guided half
residential and half commercial. The property is a beautiful 10 acres. Mr. Albold noted all the issues to
develop his property. Ms. Anderson said the property is valued as residential and Mr. Vanderlinden said
improvements were made to the property. Mr. Albold said he did add an attached garage (tool shed).
Ms. Anderson said the value would be the same if a garage or tool shed. In the past the building values
had been lower; the value now is comparable to other residents. Mayor Stockamp asked what support
he had to lower his value? Mr. Albold is trying to stay small knowing the property is proposed for
development, no one wants to buy his land because of the lot size. Mr. Rasmuson said the market is not
slowing and most likely will see this same issue next year as properties are selling within 30 days.
City Administrator/Finance Director Flaherty asked the Mayor if the City Council wanted to continue the
meeting or move onto the 7pm meeting? Mayor Stockamp would like to continue the meeting until all
residents have been heard.
Scott Reimer 118-500-331101 6841 Packard Avenue NE, is feeling special since his value went up
28.170. His house was built in 1972 and they bought in 1996. He doesn't know now people can afford
to stay and live in Otsego. Mr. Reimer said he ran electricity to shed at a cost of $3,700 and his value
went up $11,0000 he is afraid to do anymore improvements if the value is going to increases does not
see the increases as sustainable. Mr. Vanderlinden has not had any contact with Mr. Reimer, the
assessor's office will make an appointment to review the property to make sure they have accurate
information.
The Mayor asked for any more appeals, no one else from the public spoke and the appeals were closed.
Mayor Stockamp motioned no change to the Holiday Gas Station Store value PID 118473-
001020, seconded by CM Moores. Those in favor for; Stockamp, Dahl, Goede, and Moores.
Abstained; CM Darkenwald. Those opposed: None. Motion carried 4-0.
The City will need to reconvene the Local Board of Appeal and Equalization within 20 days to be within
state guidelines.
CM Darkenwald motioned to reconvene the Board of Review in regards to specifically: 118-
500-221202, 118-015-001140, 118-800-141101, 118-800-141406, 118-800-141100, 118-
500-2212071 118-500-331101, and 118-800-221401 on Monday, May 9, 2022 at 5:30 PM at
Otsego Prairie Center, 8899 Nashua Avenue NE, second by CM Goede. All in favor. Motion
carried 5-0.
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MINUTES OF THE CITY OF OTSEGO SPECIAL CITY COUNCIL MEETING APRIL 25, 2022
Mayor Stockamp at 7:17 PM motioned to continue this special meeting to discuss the
progress report following the City Council meeting, seconded by CM Darkenwald. All in
favor. Motion carried S-0.
Mayor Stockamp motioned to reopen the special meeting at 8:45 PM, seconded by CM
Darkenwald. All in favor. Motion carried 5-0.
City Engineer Wagner joined the meeting.
2. Progress Report: Public Works &City Hall Facility Study.
City Administrator/Finance Director Flaherty noted materials were in the packet and the PowerPoint
presentation was handed out at the meeting.
Wold Architects and Engineers representatives Jordan Medeiros and Jonathan Loose are looking for
direction following the Core Planning Group scoring. Mr. Loose reviewed the outcomes of the space
needs study, site selection study and answered questions.
Ms. Medeiros reviewed the scoring within the matrix criteria: cost of land, utilities and site development
30%; size of site and future expansion potential 20%; site circulation 15%; and operations and
geographical location 35%.
The scoring was aggregated into the matrix, and the scoring results were:
• 90th Street & Nashua Avenue (4.60)
• 85th Street (3.63)
• 75th Street & Odean Avenue (2.88)
CM Darkenwald and CM Dahl said the group agreed it was time to bring back the discussion to City
Council.
CM Dahl asked about the acquisition of the property. City Administrator/Finance Director Flaherty said
the appraisal should be available at the end of April and will be reviewed at a future closed meeting.
City Council did not have any questions and feels the 90th Street & Nashua Avenue selection fits.
Mr. Loose noted there have been inflation increases and recommends getting cost estimates for the
proposed site. City Council agrees with moving forward with preparing cost estimates for consideration.
City Administrator/Finance Director Flaherty said this is relevant as staff heads into the budget season.
Other:
City Administrator/Finance Director Flaherty handed out the 2023 budget schedule.
3. Adjournment.
CM Dahl motioned to adjourn at 9:11 PM, seconded by CM Moores. All in favor. Motion
carried 5-0.
Jessica Stockamp
ATTEST•
. Audra Etzel, City Clerk '
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