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HomeMy WebLinkAbout04/19/1989 Council Minutes1 1 1 COUNCIL BOARD OF REVIEW APRIL 19, 1989 The annual Council Board of Review was called to order by Acting Mayor Reinert at 7:00 P.M., Wednesday, April 19, 1989. Council Members present: Neal, Bisel. Council Members absent: Bohjanen. Mayor Benson was absent. Mr. Jeff Nienaber and Mr. Scott :Varner from the Anoka County Assessor's office, City Administrator, Randy Schumacher and Clerk- Treasurer Marilyn Anderson were also present. Mr. Schumacher explained that until this year Lino Lakes has hired a City Assessor. However, as the inequities became more evident and as the work load increased it became evident that a part time assessor could not accomplish what was expected of him. The City contracted with the Anoka County Assessors office for the 1989 appraisal. This action would allow for a more uniform method of appraisal and meant that all parcels in Lino Lakes would be evaluated in the same manner as most of Anoka County. The Council also required that the County Assessors office review and re- appraise all parcels of land in Lino Lakes in 1988 and 1989. The purpose of this action is so that there will be no lag time and all parcels will be at an equal rate. Mr. Nienaber explained that he did search sales in the City of Lino Lakes and compared the sales to what was on the Assessor's records. He found that there was a problem with land values in the City and started placing true values on each parcel. He will finish this process in 1989. This will bring the value of all parcels as close as possible to the true market value. Acting Mayor Reinert explained the procedure to be followed this evening. The Clerk will call the name of a resident from the "green cards" that have been completed by persons entering the chambers this evening. The concern regarding property values will be discussed and if the Assessor feel the figure he has placed on the property is correct, the landowner can ask the Assessor to come to the property for another review. If the Assessor still feels his value is correct, the property owner can then appeal to the County Board of Review on June 19, 1989. Robert Knabe, 6483 - 20th Avenue, PIN 26- 31 -22 -44 -0003 - Mr. Knabe explained that his property value increased $25,200 over the previous valuation. Mr. Nienaber explained that the increase was due almost entirely to the increase in the value of the land. Mr. Knabe explained that his land is almost all swamp with a large ditch running through the entire property. Mr. Nienaber said he would come and look at the property again, however the previous years valuation was $7,700 and Mr. Knabe bought the land for $18,000. Previously the land was dramatically undervalued. - Mr. Varner asked for Mr. Knabe's telephone number and he will 0 7 2 COUNCIL BOARD OF REVIEW APRIL 19, 1989 call Mr. Knabe and make an appointment to view the property. Alvin DeMotts, 6265 Holly Drive, PIN 33- 31 -22 -24 -0003 - Mr. DeMotts explained that his valuation has raised $6,600 from $62,900 last year. He explained that he owns three acres of land and almost all of At is marsh. Mr. Nienaber explained that he reviewed the property about a week ago. He has valued one acre at the lowest rate for residential housing and the balance of the property is valued at $100 per acre which is also the lowest value he can place on the property. Mr. DeMotts explained that he had his property appraised by a bank and they were somewhat lower. Mr. Nienaber explained that banks are somewhat subjective in their valuation. Mr. DeMotts said he could not see why his valuation should go up as much as it did. Mr. Nienaber explained that he felt his valuation reflected the true market value. Geraldine Letourneau for Gloria McLean, 2040 Otter Lake Road, PIN 36- 31 -22 -23 -0019 and 35- 31 -22 -13 -0002 - Mrs. Letourneau explained that Mrs. McLean owns Outlot A and B of Otter Lake Estates. She noted that last year the value of Outlot A was reduced and asked that Outlot B be handled in the same manner. Mr. Nienaber explained that there is a difference in the size of the two parcels, however he did use the same process in determining the market value of each lot. He further explained the reason why Outlot A was reduced for 1989 however it will go up for 1990. Mrs. Letourneau explained that the lots were not buildable because they did not have street frontage. She felt the values should not be the same as a buildable lot. It was explained that there is access and a street could be built to service each parcel. Parcel PIN 35- 31 -22 -13 -002 - Mrs. Letourneau explained that the value of this parcel went from $1,000 to $77,900. She felt that since the Council has refused to allow subdivision less than ten (10) acres this value is very high. She noted that until Lino Lakes does something in the way of allowing subdivisions less than ten acres, this value should be greatly reduced. Mr. Nienaber explained that a similar parcel but less desirable recently sold for $110,000 two or three years ago. He also noted that it is on a lake and he did not use lakeshore values on the property. Mrs. Letourneau said it is a crime to change the value from $1,000 to $77,000. Mr. Nienaber explained that he felt it was still to low. Mr. Halden Deppert asked why he has not been called since he was one of the first persons to arrive for this meeting. Acting Mayor Reinert explained that we do not have a numbering system, the Clerk is calling the names from the cards in the same order as they were given to her. 1 1 1 1 1 1 COUNCIL BOARD OF REVIEW APRIL 19, 1989 073 Halden Deppert, 6100 Woodchuck Circle, PIN. 36- 31 -22 -44 -0021 - Mr. Deppert explained the value of his property rose from $217,600 to $242,200. This is'a $25,000 increase in one year. He felt that when the Assessor comes to place a market value on your property it is in his opinion and no one can do a thing about this situation. Mr. Nienaber explained that his property was previously undervalued. The previous Assessor had the property listed as incomplete and took off a percentage of the value for this reason. Since the house was listed as incomplete, Mr. Nienaber has to go back to the house this year and look at it again. Mr. Nienaber explained that it is unfortunate that there are other homes in this area that are also undervalued. These homes will be properly valued during this current year. Mr. Deppert felt that as long as Mr. Nienaber was in the area he should have re- appraised all the property. Mr. Nienaber explained that he did not have the time to do this and it will be done this year. Mr. Deppert asked why the Assessor has been to,his home each of the last two years and has not been to his neighbors at all. Mr. Nienaber explained that when a property is entered as incomplete, the computer automatically "kicks" out a card telling the Assessor that the property is incomplete and letting him know that the property has to be visited again the following year. In addition Mr. Nienaber explained that the previous Assessor may have tried to give Mr. Deppert a break. Mr. Deppert asked who was responsible for what the previous Assessor did? He felt he would be penalized again. Acting Mayor Reinert explained that Mr. Deppert pin pointed what has happened in this community and explained why the Council has directed that all property be re- appraised within two years. This will give everyone equal value as near as possible. Mr. Deppert felt this may be forcing people out of their homes. Mr. Bisel also explained that the previous Assessor pointed out some inequities and the Council decided to hire Anoka County because the Council felt that this would bring Lino Lakes up to an even basis with the rest of Anoka County. Also the Council saw the need to reappraise all the land at the same time. He noted that most landowners do not mind paying their fair share as long as everybody is doing the same thing. Mr. Bisel felt that by bringing everyone up to "even keel" he hoped that taxes would be reduced. He did not feel that Mr. Deppert was being singled out. Mr. Deppert asked Mr. Nienaber if the increase in his valuation would remain $260,000. Mr. Nienaber said he felt it was a fair valuation and he would be re- evaluating the entire area this year. Mr. Deppert again said he did not understand why his entire neighborhood was not reappraised. 074 COUNCIL BOARD OF REVIEW APRIL 19, 1989 Mr. Nienaber said that there was not enough time this year and the only reason his was done was because his property was listed as incomplete and he had to go to review how much was done since the previous year. Mr. Bisel asked Mr. Nienaber if the State dictates what value must be placed on property. Mr. Nienaber explained that he must place a value on all property as close to real market value as possible. He must be within 90 to 110 percent. If he does not do this the State automatically adjusts all property values by a certain percentage to reach the goal. Harvey Seppanen, 6115 Holly Drive - Mr. Seppanen explained that his land value doubled and he asked Mr. Nienaber to come out and look at his property. Mr. Nienaber has now made an adjustment and he believed that it would reduce his valuation. Mr. Nienaber was asked how land was valued and if the same method was used throughout the County. Mr. Nienaber explained that there are basically five categories of land and each category has a specific value. Mr. Seppanen said he felt it would be helpful if Mr. Nienaber could post these values. He also said a schedule of how a house is valued could also be posted so that landowners could figure out how Mr. Nienaber calculated the market value on their property. Mr. Nienaber explained he could explain how property was valued better if the landowner would come into his office. He felt the system treated all property fairly and equitable. He did not feel this was the place to go over individual parcels since it would take a great deal of time. Acting Mayor Reinert told Mr. Seppanen that he is asking for an educational program that would take a lot of time. He felt this could be taken into consideration. Mr. Bisel suggested that Mr. Nienaber prepare a flyer that could be sent to residents outlining how their property was appraised. Richard Overholser, 6201 Holly Drive - PIN 33-31-22-31 -0004- Mr. Overholser explained that his valuation went up over 30%. He noted that the house is over 100 years old and eight of the fourteen (14) acres of land is only marginal. Mr. Nienaber explained how his property was appraised noting that the eight acres was valued at $2,000.00. He said he would come out and take a look if Mr. Overholser wanted him to do so. Wayne Dailey, 2244 Reiling Road, PIN 36- 31 -22 -13 -0007 - Mr. Dailey asked how Mr. Nienaber valued land. He explained that he had both FHA and a private bank appraise his property and Mr. Nienaber is $15,000 higher than either institution. Mr. Nienaber said his valuation was based on sales in the area. He noted that a lot nearby sold for $29,000. He said he would come out and take a look if Mr. Dailey so desired. Mr. _. Dailey said he would think about this and if he wanted Mr. 1 1 1 COUNCIL BOARD OF REVIEW Nienaber to come out he would call him. APRIL 19, 1989 `) 7 5 Dan Lambie, 5210 Otter Lake Road, PIN 36- 31 -22 -13 -0008 - Mr. Lambie explained he felt his appraisal was way out of line. He asked how many people had been assessed $18,500 for a lot. Mr. Nienaber explained his appraisal was based on sales in the area. Mr. Lambie said his lot was 20% pond and he wanted Mr. Nienaber to come out and look at the property when Mr. Lambie was available to go with him. He questioned the legality of the process Mr. Nienaber was using. He noted that just because one person is willing to pay $25,000 for a lot does not make that lot worth $25,000. Mr. Lambie also asked for a list of people who own acreage so that he could see what their appraisal is. Mr. Bisel told Mr. Lambie that he could go to the Court House and Mr. Nienaber would show him what he has requested. Marvin Kiffineyer. 384 Pine Street, PIN 06- 31 -22 -11 -0003 - Mr. Kiffmeyer said he thought a mistake had been made on his property but now understands what is happening throughout the City. His valuation has risen $18,000 and he said he could not believe4that his taxes would not go up too. Acting Mayor Reinert said that the Council had asked that all land values be raised quickly so that no portion of the City would have a special break. Mr. Kiffmeyer asked if Mr. Nienaber had developed a schedule for one acre, two acre, three acre, four acre and five acre homesites. Mr. Nienaber said he had not developed such a schedule. Mr. Nienaber said he could come and look at Mr. Kiffmeyer's property. Mr. Kiffmeyer will call Mr. Nienaber. David Conde, 8327 West Rondeau Lake Road, PIN 03- 31- 22 -21- 0002 - Mr. Conde said he was concerned that taxes would go up 25% as did his valuation. He did not feel the appraisal on his property was fair and referenced an appraisal completed by Knutson Mortgage Company. Mr. Nienaber explained that the land values in Lino Lakes were not increased according to sales in the City. He said he could look at Mr. Conde's property again is he so wanted. Mr. Conde asked what was his recourse if Mr. Nienaber stood by his original appraisal? He was told he could go to the County Board of Review and if he still was not satisfied he could go to the tax court. Mr. Conde asked if someone other than Mr. Nienaber could come and appraise his property. Mr. Varner said he could. Mr. Varner said he would follow up with Mr. Conde. Bruce Goble, 6569 - 24th Avenue, PIN 25- 31 -22 -41 -0008 - Mr. Goble explained that his valuation rose $24,000 and he said he has never seen the Assessor at his home. Mr. Nienaber said that he has not been in the house but the land was realistically valued. He explained that he normally leaves a tag on the door when he visits and no one is home. The homeowner then calls his office and makes an appointment for him to come. -- Mr. Nienaber explained how he appraised the 076 COUNCIL BOARD OF REVIEW APRIL 19, 1989 land and also explained that there may be minor adjustments in the future depending on experience of the sales market. Mr. Goble said it would not be necessary for him to come to his house. Mike Gotwald, 6770 West, Shadow Lake Drive, PIN 29- 31- 22 -13- 0005 - This property is'owned by Mr. Gotwald's father and he has talked to Mr. Nienaber about the situation previously. This is an outlot and most of it is low land flooding when Reshanau Lake floods. Only a small portion of it may be buildable depending on whether or not setback requirements can be met. However, Mr. Gotwald felt it could not be made buildable until municipal water and sanitary sewer is available. Mr. Nienaber explained that the value he has placed on the property is basically for only the buildable portion. He noted that other lots were selling for $40,000 or more and he felt the value was fair. Mr. Gotwald said he felt it was unfair to appraise a lot for what might be available in the future. Mr. Nienaber said he felt it was worth $22,000. He noted that other people had purchased lots on the lake with no intention of building on them, but to just protect their view of the lake. They paid the normal market value for protecting their view. Mr. Nienaber explained that he had other persons in his office look at the parcel. Mr. Gotwald asked if they have seen it when it is two thirds under water? Mr. Nienaber said the basis for his valuation is one buildable portion. Mr. Gotwald said he would get someone else to look at this parcel. Mr. Nienaber has Mr. Gotwald's telephone number. John O'Connel, PIN 29- 31 -22 -11 -0005 - Mr. O'Connel explained that the value of his vacant lot went from $20,000 to $45,900. He noted that the property was probably undervalued initially but felt the increase was too large. He asked where he could go from here and Mr. Nienaber explained that he could attend the County Board of Review on June 19, 1989. Mr. Nienaber also told Mr. O'Connel that he could show him sales in the immediate area ranging to $60,000. Mr. O'Connel said he would like to see this information and Mr. Nienaber will provide this information to him as well as aerial photographs. Dale Robertson, PIN 21- 31- 22- 31- 0001, 21- 31 -22 -24 -0003, 21- 31 -22 -42 -0001 and 21- 31 -22 -24 -0001 - Mr. Robertson explained that he has already contacted both Mr. Nienaber and Mr. Verner regarding his situation. Mr. Nienaber explained that all of the property is within the MUSA area and he used the same process of appraising these parcels as he used for the property to the south of these parcels. Mr. Robertson explained that he felt that Mr. Nienaber had calculated to many potential lots since some of the land may not be buildable. He also asked if Mr. Nienaber had taken into 1 1 COUNCIL BOARD OF REVIEW APRIL 19, 1989 0 7 `Z account that at periods of high water some of the shoreline is flooded. Mr. Verner said that it is possible that the number of buildable lots could be reduced. Mr. Verner also explained that when Mr. Robertson's platting plans become more concrete, he could better determine the number of buildable lots. Mr. Robertson will get back to Mr. Nienaber. Rosemary Storberg, 6978 Lake Drive - Mrs. Storberg asked if the Assessor takes into consideration like neighborhoods when he compares sales. Mr. Nienaber explained that values differ from neighborhood to neighborhood. The land in the southern portion of Lino Lakes sells for more than in the northern portion. Also platted neighborhoods are more valuable than raw land. Mrs. Storberg asked how Lino Lakes compares to Blaine. Mr. Nienaber said we are very comparable. Mrs. Storberg asked if the City or County tells Mr. Nienaber how much to increase values. Mr. Nienaber explained that the values must be within a certain percentage of the sales values or the County directs him how much to increase /decrease the values. Harvey Cheeseborough, PIN 07- 31 -22 -44 -0015 - Mr. Neal read a letter submitted by Mr. Cheeseborough concerning his feeling about his property being devalued because the street in front of the property was widened. Mr. Nienaber said he had looked at the property today and noted that there was an error in the valuation. He will adjust this error and contact Mr. Cheeseborough about the adjustment. Mr. Bisel moved to adjourn at 9:20 P.M. Mr. Neal seconded the motion. Aye. • 078 COUNCIL BOARD OF REVIEW APRIL 19, 1989 These minutes were considered, corrected and approved at the Council Meeting on May 8 , 1989. ( J A .,r Clerk- Treasurer 1 1 1