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SPECIAL CITY COUNCIL MEETING
LOCAL BOARD OF APPEALS AND EQUALIZATION MINUTES
May 7, 2013
CALL TO ORDER
The meeting was called to order at 6:01 p.m. Present were Mayor Hedberg, Councii members Keeney,
McGuire and Morton, City Manager Boyles, Finance Director Erickson and Administrative Assistant Green.
Scott County Assessor Thompson, Appraiser Bohnsack and Appraiser Bethke. Councilmember Soukup
was absent.
PUBLIC HEARING
Local Board of Appeal and Equalization Hearing
Mayor Hedberg announced the purpose of the meeting is to address the value and classification of proper-
ties as ofJanuary 2, 2013 for taxes payable 2014. Stated that taxes and budgets will not be addressed in
this meeting and that Board action will be taken on all appeals prior to adjournment of the hearing. If addi-
tional assessment or research is necessary, the Board will reconvene on May 20, 2013, at 6 p.m. in the
Parkview Community Room.
Mike Thompson, Scott County Assessor, provided a PowerPoint presentation describing the assess-
ment process and timeline. Reviewed the foreclosure filings history for the period 2006 — 2012; as well as
metlian assessed residential valuations. Explained changes in lakeshore and green acres valuations.
Described qualified sales that are used when considering property value. Discussed the appeals process.
Mayor Hedberg opened the public meeting at 6:13 p.m.
Comments:
Madison Groves, PID 250970030,16410 Park Avenue SE, provided a letter that summarizes his issue.
Understands that the formula for calculating valuation is already set, but wanted to talk about related is-
sues.
Hedberg: Stated that this meeting is for considering valuation, but noted that City Manager Boyles and Fi-
nance Director Erickson will contact him to undertstand his concerns better and if he still wants to air his
concerns, he can come to a public forum at a council meeting.
Hedberg: Stated there is one item on the consent agenda: Chad Groves, 3362 Wild Ridge NW, and PID
254360280. The original valuation was $551,300. The amount was appealed and the valuation was ad-
justed to $525,100. Asked Thompson if that amount was mutually agreeable.
Thompson: Stated that Assessor Bethke met with Groves to inspect the property. Bethke and the proper-
ty owner came to a mutual decision that that was an appropriate valuation.
MOTION KEENEY, SECOND BY MORTON TO APPROVE THE RECOMMENDATION OF THE COUNTY
ASSESSORS OFFICE FOR THE CONSENT AGENDA.
VOTE: Ayes by Hedberg, Keeney, McGuire and Morton. Councilor Soukup was absent. The motion car-
ried.
Hedberg: Stated that two other appeals have been received:
Phone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com
Wells Fargo,16817 Duluth Ave SE, PID 251770010 and 259020211
Roger Kamin,14253 Shady Beach Trail NE, PID 250450010
Suggested that either a determination could be made at this meeting; or the County Assessor can evaluate
them and bring back a recommendation for consideration at the continuation of this meeting.
McGuire: Stated he prefers to have the County staff review and bring recommendation.
Morton: Concur as wants an opinion from the County.
Keeney: Concurred.
RECESS
MOTION BY MCGUIRE, SECOND BY KEENEY TO RECESS THE MEETING TO BE CONTINUED ON
MONDAY, MAY 20, 2013 AT THE PARKVIEW COMMUNITY ROOM.
VOTE: Ayes by Hedberg, Keeney, McGuire and Morton. The motion carried and the meeting recessed
6:20 p.m.
RECONVENE
Mayor Hedberg called the continuation of the Local Board of Appeal and Equalization meeting to order on
Monday, May 20, 2013 at 6:00 p.m.
Present were: Mayor Hedberg, Council members Keeney, McGuire and Morton, City Manager Boyles, Fi-
nance Director Erickson, County representatives Thompson, Bohnsack and Bethke, and Mr. Kamin. Coun-
cil member Soukup was absent.
Roger Kamin, 14253 Shady Beach Trail NE, PID 250450010
Assessor Thompson gave his report. Mr. Kamin distributed and reviewed his arguments.
McGuire: Asked whether the home is a one and a half story or two stories. Kamin clarified that it is one
and a half story. Reviewed the comparables intlicating that two of three are higher. Reviewed inconsisten-
cies between the comparables and his property.
Hedberg: Clarified the role of the LBAE.
Keeney: asked about the boat house value.
Thompson: Replied they would typicafly count the boat house, but they are very hard to value as there are
fewer of them and some have more or less utility value. Also has had difficulty factoring in location to TH
13 and access into the valuation.
McGuire: Attempted to compare properties and features.
Keeney: Agreed access is difficult. Acknowledged that access has an impact.
Thompson: Needs concrete data that shows how properties are impacted. Only finro properties would
provide data. Assessors valued the property at between $930,000 and $1,120,450.
The Board agreed that some adjustment is appropriate. Front footage discussed was between 106-feet vs.
110 feet depending upon where measured.
MOTION BY MCGUIRE, SECOND BY KEENEY TO REDUCE THE VALUATION BY 5% OF THE LOT
VALUE FOR A REDUCTION OF $23,600.
VOTE: Ayes by Hedberg, Keeney, McGuire and Morton. The motion carried.
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DRAFT 05 07 and 05 2013 City Council meeting minutes
Mayor Hedberg clarified the process. Thompson stated the total value is $972,200 and Kamin could ap-
peal. Should apply same approach to the property on the other side of the access and fort other accesses.
Wells Fargo,16817 Duluth Ave SE, PID 251770010 and 259020211
Assessor Bethke reviewed three bank comparables, one of which was the same as provided by Wells
Fargo. Hedberg clarified the location of a comparable on CR 42. Reviewed other bank properties that sold
during the period. Lease rates are comparable. Negotiated transaction to buy in both cases. Third compa-
rable was confidential, but offered a slightly lower lease. VNent with $16 per square foot. Appellant wanted
$8. The leased value the County used justifies no change and that is what the Assessor recommended.
McGuire: Asked why only bank comparisons.
Bohnsack: Replied that it is a highest and best use question. Had a couple of comparables with lease on-
ly.
Hedberg: Wanted to know what the lease rate is for a bank.
Bohnsack: $13.50 net.
Hedberg: Upper floor is 1,700 square feet asking $14 net net. Location probably accounts for the lease
rate. Site access, standard quality exterior distinguishes it from other businesses.
Keeney: Asked why the appellant used mismatched comparables.
Bethke: Replied that can happen with out of state owners and numerous properties for which they are
seeking adjustment.
MOTION BY KEENEY, SECOND BY MCGUIRE TO AFFIRM THE VALUATION OF THE WELLS FARGO
PROPERTY.
VOTE: Ayes by Hedberg, Keeney, McGuire and Morton. The motion carried.
MOTION BY MCGUIRE, SECOND BY MORTON TO ADJOURN THE LOCAL BOARD OF APPEAL AND
EQUALIZATION.
VOTE: Ayes by Hedberg, Keeney, McGuire and Morton. The motion carried antl the meeting adjourned at
6:35 p.m.
Frank Boyles, City Manager
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DRAFT 05 07 and 05 2013 City Council meeting minutes