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
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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
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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.
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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.