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MF.Mv iv: may.,,- i city FROM: Finance Director —Treasurer Brager /LJ DATE.: March 12, 1986 RF.: APPLICATION OF CENTURY MERCURY MUrOR FREIGHT CO THE. COMMISSIONER OF REVENUE, STATE. OF MINNESOTA FOR A REDUCTION IN ASSF.SSrn VAIAIATIONS OF THEIR REAL ESrgTF. the City has received correspondence from the Property Equalization Division, Department of Revenne, State of Minnesota regarding an application that Century Mpreory Motor Freight has filed with the Commissioner of Revenue for reduction in assessed valuation of their real estate located within the City. This reduction or abatement of property taxes has been recommended by the Ramsey County Board of Commissioners, the Ramsey County Auditor, and the Ramsey County Assessor. Minnesota Statutes, Section 270.19 provide that where the reduction in Assessed valuation of any property exceeds SIUU,000 the City, Town, or School District in which property is located may request a hearing to object to the reduction or abatement. If the City would require a hearing on this application a request would have to be made within 20 days, or by March 26, 1986. On receipt of this letter I telephoned Daniel Flaherty of the Ramsey County Assessors Office and learned the following: 1. Century Mercury Motor Freight made application for the reductinn in assessed valuations and submitted an independent appraisal which stated the vaLle of their property as $1,350,000 in estimated market value. 2. The Ramsey County Assessors Office conducted their own appraisal of the property and determined that the estimated market value should be $1,700,000. This is the value which they used to calculate the assessed valuations For taxes payaDle 1983, 1984, 1985, 1986. The variation in the assessed valuations for those years is due to the change in the meL`od of the calculation of the assessed valuation pursuant to changes in the formula mandated by the State Legislature. 3. The reduction in assessed v& uations of the property for the years 1983 through 1986 will result in an abatement of the City's share of property taxes for those years in the amount of 57,419.22. This amo-int will be deducted from the property tax set,:em�nts that the City will receive in 1986.