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04-22-97 BRCITY OF OTSEGO WRIGHT COUNTY, MINNESOTA BOARD OF REVIEW 7 P OTSEGO CITY HALL APRIL 22, 1997 Roll Call: Mayor Larry Fournier; Councilmembers: Virginia Wendel, Vern Heidner, Suzanne Ackerman, Mark Berning. Staff: Elaine Beatty, City Clerk/Zonin'g Administrator, Judy Hudson, Deputy Clerk Pete Merges, City Assessor, Doug Gruber, Wright County Assessor, Mayor Fournier called the Board of Review to order at 7:03 PM. Mayor Fournier made introductions. Mr. Gruber explained the purpose of the Board of Review is to review assessments for 1997 which is used for taxes payable in 1998. The council does not have authority to review this years taxes or last year's valuation. As a general rule of County the base structure valuation went up 5%, there were some minor adjustments but nothing significant, there are some adjustments on garage valuations, no significant changes to commercial. Land values were adjusted throughout the County based on sales. The big increase was on the Ag, Green Acres values. Green Acre values in Otsego were up over 11% compared to others of 19% in other areas of County. Most were increased 15% to 16%. Residential increases were from 5% to 10% depending on the area. The Council has authority to change any value this year but can't change valuation on the whole City more than 1 %. There is 205.5 million valuation in Otsego. Pete Merges commented the one thing he found going over sales this year was houses with basement finish, which has been a big factor the last couple of years. Houses with basement finishes have seen substantial increases. This runs from 5% to 10% but not every house had this. The review area was spread out this year. Mr. Merges also explained the only issue tonight is to talk about property values and will not discuss tax dollars. Steven Zoubek, 118-060-002040 9325 Nason Court NE Sorenson Ridge Phone: 241-8884 1997 Value: $157,100 Mr. Zoubek: Stated value is $20,000 more than he paid for it. House was just built, moved into it in December, 1996, mortgage appraisal came back at $129,000. Pete Merges: Went over structure size with Mr. Zoubek and what is finished. Mr. Merges recommended to review. CM Heidner motioned for City Assessor and County Representative to review this parcel at 10:30 AM on April 29, 1997. Seconded by CM Wendel. All in favor. Motion carried. Board of Review of April 22, 1997, contd. Page 2. Adam and Lisa Freiberg 118-121-006020 10061 Kahler Ave NE Island View Estates 1997 Value: $111,100 The Freibergs felt the valuation is too high. Pete asked about basement finish and the Freiberg's thought about 20%. Pete also went the structure size of the home, garage, deck, central air, fireplace in basement. Pete said his records indicate more than a 20% basement finish and recommended a reduction of $8,100.00 CM Ackerman motioned to reduce valuation by $8,100 for a new valuation of $103,000. Seconded by CM Heidner. All in favor. Motion carried. Merlin Bode 118-058-001010 13555 95th street NE Bulow Estates 1996 Valuation: $75,700 1997 Valuation: $78,600 Mr. Bode felt there was too big of a jump in this year's valuation. Felt it should be at $69,600, had a offer of $70,000 recently and paid $72,500 in 1995. Pete Merges went over this property's structure, reviewed in 1994, and graded it at a Grade 5.5 (Wausaw Home). His recommendation was to leave as is as it is being treated as all others. Mr. Gruber gave Mr. Bode a 1997 Tax Refund Packet. Mayor Fournier motioned for City Assessor to review this property on Tuesday, April 29,1997 at 11 AM. Seconded by CM Wendel. All in favor. Motion carried. Darrell and Bonnie Watkins 6800 Clementa Ave NW Buffalo MN 55313 118-802-024304 - 1997 Land Valuation: $27,400 118-802-024303 - 1997 Land Valuation: $50,100 Unplatted Land Property recently obtained through annexation Mr. and Mrs. Watkins feel the valuation is too high, gone up $34,000 and no improvements. Part of land was condemned. House is non -conforming and doesn't meet the setbacks. Mr. Merges recommended to review. CM Wendel motioned for City Assessor to review at 9 AM, April 29,1997. Seconded by CM Ackerman. All in favor. Motion carried. Board of Review of April 22, 1997, contd. Page 3. Diane Cahill 118-800-152202 9020 95th Street NE Unplatted 1996 Valuation: $91,000 1997 Valuation: $95,300 Ms. Cahill felt value went up too high and asked how values are arrived at. Mr. Gruber explained how valuations are determined. Ms. Cahill was satisfied with the explanation and did not request any thing else. No change. Rod Bengston 118-026-001060 Otsego Acres 1st Addition 14340 89th Street NE 1996 Valuation: $104,100 1997 Valuation: $107,000 Mr. Bengston asked what is the basis for this valuation and is he assessed the same as new construction, his home is 20 years old. He noted there are mobile homes one block away, UPA lines in back of his home, neighboring homes running around $90,000 and his is more. He purchased this home for $71,000 in 1991. Mr. Merges went over the square footage's of the house, basement finish, brick trim, garage, bathroom in basement, deck, detached garage, air conditioning. Built in 1976, depreciated but has been upgraded. Mr. Bengtson also complained that taxes have doubled since he has lived here. He also stated his garage is not a finished garage. Mr. Gruber explained how taxes are calculated. Mr. Merges stated he doesn't have the garage down as finished. Pete also found a comparable house two lots down. He also noted ODay Acres sales haven't been influence by neighboring mobile homes. Mr. Gruber suggested for Mr. Bengtson to contact local Realtors and he can come to the County Board of Review. Mr. Merges recommendation was this is being treated equally and is at fair value. CM Berning motioned to lower valuation of garage by $1,500 bringing the valuation to $105,500. Seconded by CM Wendel. All in favor. Motion carried. Jeffrey Trisko 118-048-003090 8971 Packard Avenue 1996 Valuation: $126,200 1997 Valuation: $128,700 Mr. Trisko feels the valuation is too high. Mr. Merges went over the structure and square footage's, central air, fireplace, porch, 3 car garage. Built in 1991. Board of Review of April 22, 1997, cont'd. Page 4. Mr. Trisko said the basement is not finished but there is a fireplace. Mr. Merges graded this as a 7.5. same as others and lot value is $25,700. There was a difference with the square footage's. Mr. Merges recommended to go out and measure. CM Heidner motioned to review this property on April 29, 1997 at Noon. Seconded by CM Ackerman. All in favor. Motion carried. Sherry and James Michael 118-052-001050 No show Clifton and Laverna Noll 118-011-001050 15420 89th Street Barthel Acres 1996 Valuation: $78,200 1997 Valuation: $81,500 Laverna Noll wanted justification for valuation since in the 26 years they have lived here, the square footage has not increased, only improvement was a bigger deck with screens on it, no air conditioning, lower level is not complete, 89th Street is still gravel, no street lights and no other improvements in 26 years. 980 square feet. Pete Merges has 912 square feet and reason for increase, he explained how the State requires him to be between 90% and 105% of market value. Sales are looked at. He also noted this will be reviewed next year. Mrs. Noll feels she would have to put in $20,000 to sell her home. Mr. Gruber felt that unless this house is totally trash, this valuation is right. He also explained to her how sales are reviewed, mass appraisals etc., He offered for her to come down to his office and he will go over all of this with her but she should make an appointment. Mrs. Noll had no other requests at this time. No change. Ronald and Janice Belch 118-011-001040 15425 90th Street Barthel Acres 1996 Valuation: $92,900 1997 Valuation: $101,700 Mrs. Belch stated the valuation is too high and why so big of an increase in one year. Mr. Merges stated he reviewed in 1993 and asked how much of the basement is finished. Mrs. Belch thought at least three-quarters finished. Pete explained the basement finishes went up approximately $2.00 and up per square foot, the garage went up $500, 132 sq. feet of house doesn't have basement, main house went from $44,800 to $45,600. He recommended a review visit. Board of Review of April 22, 1997, cont'd. Page 5. CM Berning motioned for City Assessor to review on April 29, 1997 at 11:30 AM. Seconded by CM Ackerman. All in favor. Motion carried. Linda and Lawrence May 118-800-232101 Unplatted 8632 Kadler Ave NE 1996 Valuation: $90,100 1997 Valuation: $93,800 Mrs. May feels there has been too big of a jump every year and maybe it is assumed the basement is finished. Mr. Merges noted he has no finished basement, and went over the house, garage, tuck under garage. Mrs. May asked if septic systems affect valuation and living in a rural setting. Mr. Gruber said he has seen around the lakes a little with septics but hasn't seen a negative to this. Pete noted homes in the rural setting will bring more value than an urban setting. Mrs. May requested assessor to review. Mayor Fournier motioned for City Assessor to review property on April 29, 1997 at 9:30 AM. Seconded by CM Wendel. All in favor. Motion carried. Terrance and Judy Wood 118-026-005020 Otsego Acres 1st Addition 8841 Obrain Avenue 1996 Valuation: $99,800 1997 Valuation: $109,600 Pete went over history: In 1996, valuation started out at $104,200, after Board of Review it was reduced to $100,200 because of water problem. Mrs. Woods also went to the County and they reduced to $99,800. Pete couldn't see a water problem there this year and raised it back up to $109,600. Mrs. Woods stated the water problem is a temporary solution and not permanent. Mayor Fournier agreed it is a temporary solution. Pete noted the houses in this area are graded a little lower. House is at $81,800 and add 5% and land is at $18,000. Mr. Gruber noted it would be at $103,900 and would be about a 4% increase over last year. Pete said he will check this every year. Mrs. Woods stated she wants no increase from last year. Mayor Fournier motioned to reduced valuation to $100,200. Seconded by CM Heidner. All in favor. Motion carried. Mrs. Woods stated she was satisfied. Board of Review of April 22, 1997, cont'd. Page 6. Mr. Gruber stated William Lampson, Mrs. Woods neighbor, should be treated similar. William and P Lampson 118-026-005010 8879 OBrian Avenue NE 1996 Valuation: $86,200 1997 Valuation: $94,600 CM Heidner motioned to reduce valuation to $86,200. Seconded by CM Ackerman. All in favor. Motion carried. Marvin and Mary Reich 118-500-351303 16686 65th street 1996 Valuation: $138,400 1997 Valuation: $144,400 Mr. Reich questioned what his taxes are doing for him, no water, no sewer, no street, no blacktop, no gas, no street lights, no access to 101, school taxes are too high, very concern with extra miles getting to his house now that his access to 101 has been removed especially for emergency vehicles. Value on land - no one sees it, only one neighbor. Pete asked if the 13 acres are tillable and he works with the valuation and not the taxes. Mr. Reich thought only 10 acres were. Pete went through the square footage of home, graded as average home, tuck under garage, pole shed (2), now building value went up around 5% and land value went up to $58,500 from $56,000. Mr. Gruber felt this property would have to be in tough shape not to get $144,400 for it. He gave them a copy of the 1997 Tax Property Refund Book and suggested they consult with their accountant. No change. Brian and Wendy Svoboda 118-060-002030 9351 Nason Court Sorenson Ridge 1997 Valuation: $162,200 New built Mr. Svoboda stated the valuation is too high. The appraisal came in at $152,000. The house isn't complete. Mr. Merges went over the square footage's, 3 car garage, no fireplace no air. Mr. Svoboda said the basement is under the one story and none under the two story. Mr. Merges recommended to review. CM Wendel motioned for the City Assessor to review on April 29, 1997 at 12:30 PM. Seconded by CM Berning. All in favor. Motion carried. Board of Review of April 22, 1997, cont'd. Page 7. Caroll and Colleen Hecklinger 118-017-002010 Great River Acres 3rd Addition 9382 Ochoa Avenue NE 1996 Valuation: $93,300 1997 Valuation: $96,700 Mr. Hecklinger stated there has been no changes done to the property. He moved there and bought it for $67,700. Talked to the County and they appraised it at $75,000. He also stated the basement isn't completely finished. Mr. Merges went over the second garage and noted this is a CAP Home and recommended to review. CM Berning motioned to have City Assessor review this property on April 29, 1997 at 10 AM. Seconded by CM Ackerman. All in favor. Motion carried. John Karnes 118-034-001050 8360 Oakwood Ave Vasseurs Oak Grove Estates 3rd Addition 1996 Valuation: $36,700 1997 Valuation: $37,700 Mr. Merges noted the change in valuation was in land value. Mr. Karnes would like to know why the increase. There is now water coming across his yard. Are trailers considered real estate? Pete went over structure at 14 X 70 trailer valued at $8,800, entry way at $400, skirting and a 26 X 26 garage at $4,100. Mr. Karnes stated if he sold he would have to put in a new septic. A neighbor's with a basement is valued at $10,000 less. Mr. Merges went over the neighbor's home and he also recommended a site review of Mr. Karnes. Mayor Fournier motioned for City Assessor to review this property on April 29, 1997 at 1 PM. Seconded by CM Wendel. All in favor. Motion carried. Mr. Gruber will send Mr. Karnes a disability income form. Gregory and Marylyn Noll 16471 70th Street NE 118-500-352101 Unplatted land 1996 Valuation: $90,400 1997 Valuation: $90,000 Mr. Merges noted the State took some land from him. Land was $20,000 and was reduced to $17,500, building value went up $2,100. Board of Review of April 22, 1997, cont'd. Page 8. The letter requested because of lost of trees and the State took land for $10,000, no improvements to home, home is over 27 years old and needs work, the valuation is too high. Also a merge lane was placed in front of his and is wondering if there is a depreciation factor. Mr. Merges stated on January 23, he and a representative from the Country's Assessor Office reviewed the property upon owner's request. They found the basement finished, extra bathroom in basement which both were in poor condition. Pete lowered the land value. He feels if the lot was empty it is still a buildable lot which is valued at $17,000 including the septic and well. Mr. Merges recommended no further review at this time since he was just there. CM Heidner motioned to take no action and leave as is. Seconded by CM Berning. All in favor. Motion carried. Steven Brosko 10148 Parrish Avenue NE 118-500-104402 Unplatted Land 1996 Valuation: $85,000 1997 Valuation: $85,300 The letter requested a review of this property. Elaine Beatty stated the owner wants to move his house. Mayor Fournier motioned not to review and no formal action. Seconded by CM Wendel. All in favor. Motion carried. Donald and Sally Ebner 118-030-000221 10273 Parrish AVENUE Riverside Park 1996 Valuation: $78,900 1997 Valuation: $81,600 Mr. Merges noted the land value stayed the same. The house was built in 1939 and went over the valuation. He feels the house might be valued too high at $50,000, it is graded at 6.5 (average) and maybe should be at a Grade 6, the basement is poor. By lowering to Grade 6 would bring total valuation from $81,600 down to $77,600. CM Ackerman motioned to lower valuation to $78,900. Seconded by CM Berning. All in favor. Motion carried. Board of Review of April 22, 1997, cont'd. Page 9. Alan Valerius 118-031-002060 14328 87th street Vasseur's Oak Grove Estates 1996 Valuation: $87,300 1997 Valuation: $96,300 Mr. Merges noted the land increased in value of only $500. In 1995 Board of Review reduced value to $85,300 from $94,900 and since than only 5% increase each year. Mr. Gruber read Mr. Valerius' letter which stated he doesn't think his property is worth this valuation and requested to have it reappraised. Pete said the house was graded 6.5 and reduced to Grade 6 because house came in two pieces. He recommended a Grade 6, house at $68,600, land at $22,500 for a total of $91,100. CM Berning motioned to change to Grade 6 reducing the valuation to $91,100. Seconded by CM Wendel. All in favor. Motion carried. Brian and Cheryl Helgeson 118-134-002140 5802 Queens Avenue Wokson Hills 1996 Valuation: $93,600 1997 Valuation: $96,400 The letter stated the owner feels the valuation is too high. Mr. Merges noted the owner paid $95,000 in 1991. He attended the Board or Review before and valuation was lowered. He noted they will be reviewing this Fall and therefore recommended no change. CM Heidner motioned to leave valuation at $96,400. Seconded by CM Berning. All in favor. Motion carried. Arlene Holen 118-019-001031 14182 96th Street NE Hylo Acres 1996 Valuation: $121,000 1997 Valuation: $128,000 Pete Merges noted the holding pond walls are caving in, garage is normal but maybe could be lowered. House built in 1974. Mrs. Holen feels she could be more than this amount if selling. CM Wendel motioned to leave valuation at $128,000. Seconded by CM Berning. All in favor. Motion carried. Board of Review of April 22, 1997, cont'd. Page 10. Mr. Gruber distributed This Old House application and went over. Otsego staff is currently distributing these. He explained the Board of Review is required to reconvene within 20 days. It was noted the Board of Review would reconvene on May 12, 1997 at 6 PM. Pete Merges went over his pay schedule. He feels he should be paid as much as the County, who are currently receiving $6.50 per parcel when they go out and review and this will be increased to $6.75 next year. Pete is currently at $6.00 per parcel and is requesting $6.50 per parcel, effective as of September 1, 1997. Mayor Fournier requested this to be placed on the May 12, 1997 City Council Agenda. CM Heidner motioned to continued the Board of Review on May 12, 1997 at 6 PM. Seconded by CM Wendel. All in favor. Motion carried. 10:55 PM Mayor Larry Fournier Elaine Beatty, City Clerk/Zoning Adm. Recorded by: Judy Hudson, Deputy Clerk