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04-19-07 BRCITY OF OTSEGO BOARD OF REVIEW THURSDAY, APRIL 19, 2007 6:30 PM, OTSEGO CITY HALL 1 Mayor Larry Fournier will call the 2007 Board of Review to order. Mayor Fournier opened the Board of Review at 6:35 PM Roll Call: Mayor Larry Fournier; Councilmembers: Vern Heidner, Jessica Stockamp, Mark Thorsted and Tom Darkenwald. Staff: Judy Hudson, City Clerk/Zoning Administrator and Pete Merges, City Assessor. Wright County Assessors: Tony Rasmussen, Keith Triplett and Randy DesMarais. 2 Recognition of Pete Merges. Mayor Fournier thanked Pete Merges for all his years of service to the residents of Otsego and presented him with a Plaque. 3 Comments by the Wright County Assessor. Keith Triplett reviewed the Agricultural values, they went up 1.59% in Otsego and 2.4% County wide, Green Acre value varied from a 10% to 14% increase, market values stayed the same, pole sheds went up $1 per sq. ft and those with concrete another $1 per sq ft. Tony Rasmussen reviewed the Commercial and Industrial saying that they went up 6.5%, and the sales ratio is about 88%. They are seeing a lot of activity in Otsego which is the 5th largest in Commercial and Industrial Value in Wright County but he sees that changing very soon. 4 Comments by Otsego City Assessor, Pete Merges. Pete Merges explained that the Board of Review is to discuss valuation only and only for Year 2007. For the most part, the estimated market value did not change. There were some changes along Highway 101 on land. If anyone was in the Review Area there could have been a change if there was something found that wasn't on the records. He said he has received phone calls saying values are going down but he hasn't seen anything yet that is going down. He sees properties are on the market longer than they were on year ago. Mr. Merges stated that any reviews of properties will be scheduled for April 26 starting at 9AM. One property owner must be home. CM Heidner asked what was the sales ratio to assessed value on residential value. Mr. Merges said they are at 94% and that is the reason there were no increases. Mr. Merges explained the State requirements. Mayor Fournier asked if in his 32 years assessing, the State has ever come in and did an increase. Mr. Merges said they have done that twice. CM Darkenwald asked the assessors to explain Limited Market Value (LMV). Mr. Rasmussen said the LMV is set up by Legislation and can only go up 15% for residential property in any one year. This amount is what you pay taxes on. Randy DesMarais said 2008 is the last year for limits on Market Values increases unless Legislation continues it. To set this you look at the median sales. 5. Review valuation of property owners from the County Sign Up List Jeff Ophoven, 118-155-001030 EMV $222,200 (land only) Mr. Ophoven said he has had this land for sale for three years and hasn't been able to sell it and listed it at $189,000. He feels he is being taxed on 3.3 acres but there is only 40,000 sq. ft. of buildable land. He feels is getting runoff from the Duke property as the wetland is getting higher. CM Heidner motioned for the Assessors to review this property on April 26, 2007 at 9 AM. Seconded by CM Stockamp. All in favor. Motion carried. John Littmann 118-010-084070 9700 Nashua Avenue NE EMV $289,700 Mr. Littman stated his valuation is too high. Mr. Merges said his home was reviewed on 10-15-06 and said the house is graded at 7, 3 bathrooms, fireplace and central air, basement finish valued at $35,700 and at 1,500 sq. ft. Mr. Merges said the new valuation is $317,600. Mr. Littman said he purchased the house in 1998 and the only thing he did was add air conditioning. CM Heidner motioned to have the Assessors review this property on April 26 at 9:30 AM. Seconded by CM Thorsted. All in favor. Motion carried. Walter VanVleet 118-019-002061 EMV $303,600 Mr. VanVleet said the County records show 5 acres but it is only 1.17 acres. Mr. Merges said the GIS shows 1.3 acres. The assessors recommended reducing to $229,600. CM Darkenwald motioned to reduce the valuation to $229,600. Seconded by Mayor Fournier. All in favor. Motion carried. Chris Dehn Mark Dehmer 118-800-144300 EMV $497,300 Mr. Dehn said they purchased this land 4 years ago and can't develop it. They paid $383,000. Mr. Merges said it is valued at $16,000 per acre. CM Heidner motioned to direct the City Planner to prepare a report outlining what can be developed on this property. Seconded by CM Stockamp. All in favor. Motion carried. Jeff Stelmach 118-197-010040 7354 Marlowe Avenue NE 2 EMV $354,800 Mr. Stelmach said they purchased their home in November of 2006 for $297,000 and haven't done anything in it except to paint two rooms. The assessment is $58,000 more than the purchase price. CM Thorsted motioned for the Assessors to review this property on April 26 at 10 AM. Seconded by CM Stockamp. All in favor. Motion carried. Troy Harrison 118-168-001080 16910 56th Court NE EMV $321,600 Mr. Harrison said he is a Real Estate Broker. He has five homes on the market and four of them are priced under $300,000 and they have decks and fireplaces and his doesn't. He feels his house is valued too high. CM Heidner motioned for the Assessors to review on April 26 at 10:30 AM. Seconded by CM Stockamp. All in favor. Motion carried. Brian Johnson 118-075-004050 8020 Parell Avenue NE EMV $296,600 Mr. Johnson said he is a realtor and doesn't feel he could sell his home for $296,000. The only thing he has added is central air. He tried selling his home last year and couldn't. Mr. Johnson feels his house is worth $280,000. CM Stockamp motioned to have the Assessors review this property on April 26 at 11:30 AM. Seconded by CM Darkenwald. All in favor. Motion carried. David Taus Appello Group Great River Centre 118-239-000010 EMV $401,700 118-239-000020 EMV $342,600 118-239-000040 EMV $333,000 118-239-000050 EMV $200 118-239-000060 EMV $200 118-239-000070 EMV $318,100 118-239-000080 EMV $209,000 118-239-000090 EMV $423,700 118-239-000100 EMV $1,219,400 118-239-000110 EMV $115,600 118-239-001010 EMV $125,100 118-239-001020 EMV $1,701,200 118-239-001030 EMV $423,500 118-239-001040 EMV $140,400 3 Mr. Taus said MnDOT construction of 101 has delayed their development. He feels that if all the improvements were in and some buildings constructed he would accept this valuation. They have about three million dollars of improvements to be installed. Tony Rasmussen said the comps used are across the road and range from $9 to $12 sq. foot and they probably used $10 for this development. Mr. Taus asked if his group could meet with the Assessors and go over everything. Mayor Fournier motioned to direct the landowners and the Assessors to meet and review all these valuations. Seconded by CM Stockamp. All in favor. Motion carried. Caroll Hecklinger 118-017-002010 9382 Ochoa Avenue NE EMV $210,300 Mr. Hecklinger feels his valuation went up too much and he hasn't done anything to the place. Mr. Merges said he hasn't reviewed this property in four years. CM Thorsted motioned for Assessors to review this property on April 26 at Noon. Seconded by CM Stockamp. All in favor. Motion carried. Patricia Kraus 118-036-001130 14448 81st Street NE EMV $65,000 (lot only) She feels she can't sell this lot because of the junk lot behind her lot. Council directed Judy Hudson to check on the house behind this lot regarding junk and blight conditions. 6. Review any letters received. Otsego West LLC 118-205-005090 Lot 9, Block 5, Otsego Preserve 2nd Addition EMV $70,000 Judy Hudson received e-mail from the owner stating this valuation is too high. Judy said she checked with the City Engineer and City Planner. There is a temporary Lift Station on this property making it unbuildable until the Lift Station is removed. Mayor Fournier motioned to lower the valuation to $435.00 Seconded by CM Darkenwald. All in favor. Motion carried. Paul Levenson 118-500-353206 Letter 6140 Quam Avenue NE EMV $402,900 Mr. Merges read Mr. Levenson's letter object to his valuation. 4 The Council discussed with the Assessors the Land Use Plan for this area, which they feel will not develop into Industrial for quite some time. CM Heidner motioned to lower the valuation to $279,700. Seconded by CM Thorsted. All in favor. Motion carried. Mayor Fournier motioned to direct the Assessors to review these whole area valuations. Seconded by CM Stockamp. All in favor. Motion carried. Darrel Farr Dev Corp 118-184-000080 EMV $222,000 118-184-000150 EMV $90,000 118-800-263100 EMV $1,456,500 Tony Rasmussen read Mr. Farr's letter objecting to the valuation. Mr. Rasmussen recommended the platted parcels be changed to commercial. Mayor Fournier motioned to change the zoning to commercial on the platted. Seconded by CM Heidner. All in favor. Motion carried. The Council agreed to leave the unplatted parcel as Agricultural. Tom Darkenwald 118-500-341100 EMV $2,371,693.00 118-500-274203 EMV $531,607.00 118-500-262201 EMV $3,103,650.00 118-500-271400 EMV $3,588,360.00 118-500-262203 EMV $734,893.00 118-500-233301 EMV $300,144.00 118-500-262200 EMV $74,052.00 Mr. Darkenwald said that some of these values have doubled and tripled and would like to review these with the Assessors. Mayor Fournier motioned to direct the Assessors to review these valuations with the Darkenwald family. Seconded by CM Heidner Voting In Favor: Mayor Fournier, CM Heidner, CM Stockamp and CM Thorsted Abstained: CM Darkenwald Motion carried. 7. Continue Board of Review to May 7, 2007. (Must be held within 20 days of April 19, 2007) CM Heidner motioned to continue the Board of Review to May 7, 2007, 6 PM. Seconded by CM Stockamp. All in favor. Motion carried. 9:17 PM E Mayor Larry Fournier ATTEST: Judy Hudson, City Clerk/Zoning Admin.