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HomeMy WebLinkAboutMay 4, 1981 (2)Official Proceedings Board of Review Columbia Heights City Council May 4, 1981 The Board of Review was called to order by Council President Sebe Heintz at 7:05 pm. I. Roll Call: Logacz, Norberg, Hentges, Heintz--present. Mayor Nawrocki was attending another meeting and will arrive late tQ this meeting. 2. Introduction of Staff President Heintz introduced the City Assessor, Mildred Carlson and her staff. He also introduced Bob Weisbrick from the Anoka County Assessor's office. 3. Purpose of the Board of Review This meeting is called to review the valuations of January 2, 1981 and for anyone who is aggrieved of their valuations. Mildred Carlson, City Assessor, gave a presentation in which she explained the 1981 assessments, payable in 1982. She said land values in Columbia Heights have experienced a considerable increase, much more than building values. She felt this was due to the fact that Columbia Heights is a close-in com- munity and the land is more desirable for development or purchase. Mrs. Carlson re- flected on the fact that the City Council had held the levy at the same level for three years which resulted in no increase in taxes. She stated that the taxes in 1982 will be greatly affected with what the state legislature decides to do with aid to county and local governments and school districts. There are many variables that affect taxes, market value is not the only factor by which taxes are determined, but a combi- nation of factors. Mrs. Carlson reviewed, in detail, how net payable taxes were deter- mined in 1979, 1980,and 1981. Using examples for the last three years, she cited how a combination of assessed value, mill rate, and homestead credits has resulted in a considerable reduction of taxes on homesteaded properties payable in 1981. 4. Questions From Audience Regarding Their Valuations Fred Swan, 2106 Fairway Drive, requested an explanation on the difference between limited market value and estimated market value as mandated by the legislature. He was concerned with a 20% increase in 1980 and a 15% increase in 1981 on his property. This property was viewed in October 1980 and the Assessor said his valuation accurately reflects the value of the property. Norman Miner, 4148 7th Street, wanted to know how the market value was determined on his property in that it had not been inspected. Mildred Carlson advised him that inspectors had not been able to make an on-site inspection so that the value had been done by com- parison. Records showed that numerous efforts had been made to arrange an appointment for an inspection, but had never been able to find anyone at home. Mrs. Carlson set up an appointment for Tuesday, May 5th at 2 pm to view the property. William Marshall, 1600 Innsbruck Parkway, complimented the Assessor's office regarding the cooperation he has experienced and feels they have dealt with him in a very profes- sional manner under the guidelines with which they have to work. The challenge he is bringing to the Board of Review deals with those guidelines the department has to use in placing a value on his land. He has no objection with the value placed on his home. He feels the process by which the evaluation is determined for his land is inequitable. His land value is determined on the same basis as land in the Innsbruck area, which is $5600 higher than a lot of the same size in Mathaire. Since his land is bordered by Innsbruck and Mathaire he thinks the formula used to determine land values should be on the same basis as Mathaire properties or on a pro-rata basis, that is; 1/3 up betwe- en Mathaire and Innsbruck. This would reduce the land evaluation by $3,730. This lot had already received a $2,000 reduction because of its proximity to the noise and traffic on Johnson Street. Mayor Nawrocki joined the meeting at 7:35 pm. Board of Review May 4, 1981 page 2 The map was reviewed with regard to Mr. Marshall's lot and the surrounding lots. Councilman Norberg felt that Mr. Marshall had a reasonable case in that his lot is situated in an unusual place with regard to Innsbruck and Mathaire and the properties directly behind him on 49th Avenue. His opinion was that because of the way the lot lines were drawn this particular lot is more of an appendage to Inns- bruck than an actual part of it. Councilman Hentges left to attend the Traffic Commission meeting. The Mayor informed those at the meeting that the lines for the Innsbruck development were not drawn by the City of Columbia Heights, but by the people that developed the area, Acres Incorporated. This corporation had access to what the assessment practices were in the City of Columbia Heights at the time of the development of Innsbruck. At this point in time no action was taken to exempt this particular parcel from the Innsbruck assessment basis and the property and land were advertised, marketed and merchandised as part of Innsbruck and the selling price was affixed accordingly. Motion by Norberg to reduce the land value at 1600 Innsbruck Parkway by $3,000. Motion dies for lack of a second. Marie Porter, 221 40th Avenue, was protesting the value placed on a vacant lot that she owns. This property has an estimated value of $40,900 with a tax of $1,016.92. Discus- sion followed involving potential uses for this land by developers. She also felt the value placed on the parcels she homesteads was too high. Mr. Lee, who represents a partnership that owns two apartment buildings located at 4225 Central Avenue and 4229 Central Avenue, came to challenge their evaluation. He told the Board of Review the parties in the partnership were new to housing investment and not familiar with procedures employed to establish market values. The partnership does feel that the value placed on these buildings is too high and that the increases will ultimately be passed on to the tenants. His concern also included "good will" with the residents. Upon reviewal it was found by the Assessor's staff that these properties were purchased in March 1980 for a much higher price than at which they were valued. This matter will be reviewed by the Anoka County Assessor's office which does the evaluations of apartment buildings in the County. Ann Galusi~i, 1006 42nd Avenue, was concerned about a vacant lot she owns that had an increase in taxes of $254 since last year. The Assessor explained that the value of land in Columbia Heights has increased considerable and the taxes reflect that fact. Since this parcel does not adjoin her homestead it is taxed a higher rate. Mrs. Galuski claimed the valuation has not changed, but it was found that this was in error. The Assessor's records show the value of the parcel was placed at $5,900 in 1980 and at $13,900 in 1981. The Assessor restated that the classification of this property as non-homestead is responsible for the higher rate of tax. Helen Kocur, 1213 42nd Avenue, stated the value of her property increased approximately 16.5% this year. Mildred Carlson verified this figure and agreed that it was correct. The total properties involved include three buildable lots, one of which has Ms. Kocur's home on it. It was also stated by Helen Kocur that nothing has been done to the home to improve it in twenty years or in the way of up keep and wanted a reason why the value has increased from $19,000 to $28,500 in two years. Mildred Carlson explained this increase is due only to inflation and is applied to all homes comparable that have had no improvements. This home had been inspected in July of 1980 by the City. Gerald LaMere, 1375 Pierce Terrace, purchased his property in March of 1980, for a price considerably lower than the stated value as of January 2, 1981. His feeling is that this value is too high because the house needed considerable repair and work at time of purchase. He felt he was being penalized because he took pride in his home by bringing it up to standards he wanted in a home. The property had been inspected by the City in December of 1980. Mildred Carlson again stated that the market value is determined by comparable homes in comparable areas. Had the house been inspected Board of Review May 4, 1981 page 3 between the regular inspections of 1976 and 1980 it was agreed that the house would have been considered to be of less value because of lack of upkeep and repair. Since the LaMeres put a great deal of time, effort and money into the house after they bought it, it now compares favorably with other homes of like size and character in the area. It was felt that to value it at anything less than it presently is would be unfair. Councilman Hentges rejoined the meeting at 9:45 pm. Richard Hom, 1601 Innsbruck Parkway, feels that although his home is located in Inns- bruck he should be taxed on the same basis as Mathaire because of the proximity of his home to Mathaire. Mr. Hom received the same explanation as to the basis for his valuation as did his neighbor, Mr. Marshall. A letter was received from Mrs. Don Renquist, 1800 Fairway Drive, stating displeasure with the evaluation of the property and a request for a review. A letter was received from the K-Mart Corporation protesting the 1981 value placed on the property they own at 44th and Central Avenue, the former Zayre store. Council- man Norberg noted that this property is presently for sale at an asking price consid- erably higher than the assessed value and should be called to the attention of the Anoka County Board of Review. It was commented that the asking price is frequently higher than the actual selling price. Mayor Nawrocki recessed this meeting at 10:O0 pm until Monday, May llth at 8:00 pm at which time the property which was to be rechecked would be reported on. nne Student, Co~-ncil Secretary