09/28/1970 Council Minutes (2) - Laserfiche WebLink

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1 1 Mr. L'Allier asked if the revision of the tax laws would make mobile home parks more attractive to the municipalities; Mr. Walters stated that they would be no more so than now, but he felt that they were attractive now. Mr. L'Allier then asked why they were changing the tax structure; Mr. Walters stated that it was for debt purposes only; the assessed valuation of the municipality would increase. Mr. Summers took the floor to present figures of his own. He stated that a mobile home park of 100 units of $8,000 value each would bring $26,332.80 in taxes using the current mill rate of 263.33 (State), this giving $13,166.50 to the schools and $7,899.84 to Lino Lakes. In addition, the assessed valuation of $28,000 would bring $12,242 in real estate taxes, with $8,409.20 going to the schools and $1,800 to Lino Lakes. The total then would be $21,575 to the schools and $9,700 to Lino Lakes in 1971. Mr. Summers stated that a Metro Council survey of 36 trailer parks (out of 72) in the area had shown an average of .187 school age child per trailer or 5.3 units per school age child. Thus, this 100 unit court would produce about 19 school age children. Although they have agreed to adults only in Phase 1, the school district would still receive from $1,000 to $1,100 for these non- existent children. Mr. Summers proceeded to give the depreciation schedule for mobile homes, stating that the taxable value of a new trailer is 10% of its list price; this value decreases 1 % /yr. until the taxes paid are the same as on a new trailer of $2,000 list price, with the rate of decrease of 4 to 1, based on $10,000. Mr. Summers noted that meanwhile the mill rate is going up sufficiently to nearly offset the depreciation. Mr. Summers stated that it was unfair to assume that the whole park would depreciate and drop in value as such because new trailers would be constantly replacing older ones which are moving out. Because of this turnover, approximately the same license fees would be collected with perhaps a slight increase and the under- lying land value keeps going up. Mr. Summers then presented figures showing that the total taxes on an $8,000 list mobile home on a pad would be $362.42 whereas the taxes collected on an $8,000 house would be $204.32 based on our current mill rate and the 30% deduction for sales ism exemption. Some disucssion followed on depreciation percentages of lower value trailers in comparison, with persons in the audience purporting that more children are to be found in trailers in this area than the averages used for the metro area. Mr. Walters stated that the next subcommittee meeting on the proposed legislation would be on October 16 in Room 18G of the Capitol Building. Mr. Bohjanen moved to grant (as per his motion at the July 27 meeting) rezoning to commercial (Ord. 6S) to Gilbert Menkveld and a special use permit for a mobile home park providing that Mr. Menkveld's sewer plan meets with Pollution Control Agency's recommendation and that he complies with our ordinances; also that he indicate the age of the trailers to be accepted in the park at 7 to 10 years, providing also that the trailers should look like new models when brought in; that this be for Phase 1 of the plan only and that it be limited to school age children; that Mr. Menkveld would hole the Village free and clear if there were any lawsuit on this matter, also that the following variances to requirements be allowed: 1. The size of the lots would be 4,900 sq. ft. and 5,300 sq. ft. with a density of 4.8 units per acre.