HomeMy WebLinkAbout05-23-2016 Local Board of Appeal and Equalization MinutesBOARD OF REVIEW MINUTES
May 23, 2016
APPROVED
1 CITY OF LINO LAKES
2 MINUTES
3 BOARD OF APPEAL
4
5 DATE May 23, 2016
6 TIME STARTED 5930 p.m.
7 TIME ENDED 6*10 p.m.
8 MEMBERS PRESENT Council Member Maher, Manthey, Rafferty,
9 Kusterman and Mayor Reinert
10 MEMBERS ABSENT : none
11
12 Staff members present: Public Safety Director John Swenson; City Clerk Julie Bartell
13
14 Anoka County Assessor Staff present: Molly Johnson, Commercial Appraiser; Scott Schutz,
15 Residential Appraiser.
16
17 Mayor Reinert called the meeting to order as a reconvened session of the 2016 Local Board of Appeal
18 and Equalization.
19
20 The council had continued the matter of the appeal of the property owners of the following parcels
21 from the Board meeting of May 9. The council had directed county assessor staff to gather additional
22 information on the value of the properties in question and to work with the appellants on their
23 concerns.
24
17-31-22-22-0045 475 APOLLO DR UNIT 471 F & G INC Industrial Bldg
17-31-22-22-0047 475 APOLLO DR UNIT 479 F & G INC Industrial Bldg
17-31-22-21-0017 UNASSIGNED SITUS M & M FINANCIAL CO Vacant Land
17-3l-22-22-0042 474 APOLLO DR LINO LAKES BUS CTR PHASE 1 LTD Industrial Bldg
17-3l-22-21-0028 524 APOLLO DR UNIT 101 LINO LAKES BUSINESS CENTER LLC Industrial Bldg
17-31-22-21-0029 524 APOLLO DR UNIT 102 LINO LAKES BUSINESS CENTER LLC Industrial Bldg
17-31-22-21-0030 524 APOLLO DR UNIT 103 LINO LAKES BUSINESS CENTER LLC Industrial Bldg
17-31-22-21-0031 524 APOLLO DR UNIT 104 LINO LAKES BUSINESS CENTER LLC Industrial Bldg
26 Molly Johnson noted her review and visit to the property. She went over the information in her
27 communication to the appellants; it does offer a reduction in valuation for some property. The
28 information was sent to the property owners but they did not contact her to discuss the situation so
29 therefore she didn't receive any additional data to support their appeal to lower valuations.
30
31 Property owner Jackie McNamara said that Assessor Johnson had noted that some of the property was
32 listed for sale and she used the sale price as a guide. Ms. McNamara said that the property is not
33 listed for sale and while she had mentioned at the last meeting that they did have property up for sale,
34 ultimately they received only very low offers so they took it off the market. Ms. Johnson suggested
35 that they did not use the listing value in the valuation work.
36
0
BOARD OF REVIEW MINUTES May 23, 2016
APPROVED
37 Mayor Reinert said it sounds as if the justification for the valuation increase comes from the
38 comparables.
39
40 Ms. McNamara said she isn't contesting what others say they sold their buildings for but, in the case
41 of her property, she cannot get the proposed market value for their buildings even though they are
42 quality properties and fully rented. The valuation is far above what they've been offered.
43
44 Ms. Johnson noted that Industrial Flex Values were raised overall (as outlined in the information
45 provided to the council) so these aren't the only properties that were raised; property values on
46 industrial property were raised overall based on data.
47
48 Council Member Manthey asked about sales data in the area of Apollo Drive. Ms. Johnson noted
49 one property that sold for just over $50 per square foot. Before the adjustments proposed that would
50 reduce the valuation, these properties were valued at $48 per square foot.
51
52 Council Member Maher asked what purchase offers the McNamara did receive. Ms. McNamara said
53 below 2016 market values; she doesn't recall the offer by square foot.
54
55 Property owner Patrick Fogerty asked if staff knows the finish of the building that was sold; a medical
56 building with high cost finishes would have more value and he thinks that may be the property that
57 sold. He added that he is concerned about a high valuation when he in fact has suffered losses on the
58 properties.
59
6o Mayor Reinert asked why the appellants didn't contact County staff after receiving their
61 communication. Ms. McNamara said she didn't feel the communication was a conversation opener
62 but rather a final offer. Mayor Reinert suggested that the board did anticipate some communication
63 between parties. Mr. Fogerty said he tried to call today but it was really too late.
64
65 Mayor Reinert noted that the County suggestion is a reduction of over $200,000 in value.
66
67 Council Member Kusterman suggested that the appellants could have looked for properties to
68 compare with their own and that would have been a fair argument. He reviewed the schedule and
69 wondered if the board could reconvene again. The deadline for action by the Local Board is May 29.
70
71 Ms. McNamara pointed out to Ms. Johnson that income and expense for the property is an option to
72 consider the valuation and that data would provide another view.
73
74 Ms. Johnson explained that the County uses market data. Based on what she found on leases, she
75 saw $6.00 per square foot moving up to $6.70 a square foot. They don't use the income approach if
76 they have sufficient sales data.
77
78 Mayor Reinert asked if there were other calls from the area and Ms. Johnson said she received several
79 from industrial property owners in the county but not from Lino Lakes.
80
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BOARD OF REVIEW MINUTES
May 23, 2016
APPROVED
81 Mayor Reinert reviewed options for board action. He suggested that the council could accept the
82 county proposed valuation change, make a different change or continue the meeting.
83
84 Council Member Manthey suggested that this may be a longer discussion than can be handled at the
85 city at this point and perhaps the county board of appeal is the best option now.
86
87 Council Member Kusterman moved that the board forward the matter of the appeal of the
88 McNamara's and Mr. Fogerty to the County Board of Appeals. Council Member Maher seconded
89 the motion. Motion adopted upon a voice vote.
90
91 The meeting was adjourned at 6:10 p.m.
92
93 These minutes were considered and approved at the repP6 Council eting on June 13, 2016.
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96 Julianne artell, City C erk Jeff ei ayor