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HomeMy WebLinkAboutMay 24, 1983OFFICIAL PROCEEDINGS CONTINUED BOARD OF REVIEW MAY 24, 1953 The Continued Board of Review was called to order by Mayor Nawrocki at 9:05 pm. I. Roll Call Novland, Petkoff, Norberg, Nawrocki--present Hentges--absent It was noted that Councilman Hentges was attending a Safety Award Meeting for the City and would be coming to the Board of Review later. 2. Purpose of the Board of Review The purpose of this continued board of review was to review additional information and comparables on unresolved evaluations on the following properties: a) Three properties in the vicinity of 45th and Benjamin; 2122 45th Avenue, 4452 Ben- jamin Street, and 4459 Benjamin Street b) Dental office with rental space in the lower area at 999 50th Avenue The City Assessor requested that the following properties also be reviewed: a) 4201-4203 Second Street b) 4317-4321 Fifth Street Councilman Hentges arrived at the meeting. 3. Background and Recommendations of the City Assessor a. 4317-4321 Fifth Street Originally the City Assessor reduced the valuation from $60,400 to $53,900. Additional information brought forth the fact that this taxable parcel included three lots with two houses. Initially it had been appraised as two lots with one house. The City Assessor is now recommending a value of $59,200, resulting in a reduction of $1,200. Harold Hoium, owner of the parcel, stated he was satisfied with this evaluation. b. 2122 45th Avenue, 4452 Benjamin Street, 4459 Benjamin Street All three of these property owners share a common concern, that being the effect a poorly- maintained property in their area would have on the value of their property. The Mayor noted that it had been previously stated by the City Assessor that the condition of the untidy property was 'correctable' therefore she was recommending no change in the evaluation. It was the opinion of the Mayor and members of the Council that the owners of the three properties had no power to 'correct' the undesirable conditions and are at the mercy of the property owner and/or the City. The Mayor felt that the conditions of the house would most certainly impact on the sale of any of these properties. Motion by Hovland, second by Norberg to reduce the value of the three properties at 2122 45th Avenue, 4452 Benjamin Street, and 4459 Benjamin Street by 5%, subject to being placed back to the previous evaluation when adjoining property is cleaned up. The City Manager was requested to see the clean up process was completed. Roll call: All ayes The City Assessor had been requested to supply the Council with comparab]es for 2122 45th Avenue. She gave four examples stating similarities and some differences. The owner stated he was satisfied. c. 999 50th Avenue This facility houses a dental clinic on the first floor and is rental offices in the lower area. The property owners had objected to the original evaluation on the grounds that the major portion of the lower area rental space had been rendered unrentable due to noise eminating from air circulation and heating machinery. There was considerable discussion regarding the formula used for computing the value of the property by the Assessor and how the noise could be diminshed so the lower area space could be rentable. Councilman Board of Review May 24, 1983 page Norberg had viewed the building and felt the sound problem could be alleviated by as much as 90% with a minimun of effort and expense. His suggestions are as follows; balancing the blower, getting a sound-control door, enclosing the pipes from the compressor and- exchanges on the outside to the inside, and extending the stud walls to ceiling or muf~ fling the gears of the tenant's machinery in the tenant area. Councilman Norberg estin~ated the cost of the~e suggested improvements at $1,000 to $2,000. He also stated that the placement of stud walls was a solution that would work. One of the property owners noted that the area which incurred no noise problem had also been unrented for three years. Councilman Hentges thought that this may be a chronic problem given the factors of being located off of a main street and situated in a residential area. Councilman Norberg sug- gested that the value should be reduced enough to net reduce the taxes so the owners could afford to do the improvements necessary that he offered to make the space rentable. The City Assessor recommended the value of the property be placed at $546,000 using market percentages. Another option she offered was using actual use plus actual vacancy plus actual common area. Councilman Norberg objected to the 20% vacancy rate employed by the City Assessor and requested justification for this percentage. She stated that the three year longevity of the vacancy justifies using the actual rate in lieu of an assummed rate. Motion by Petkoff, second by Hovland to value the property at 999 50th Avenue at $546,20O. Motion to amend by Norberg, second by Hentges to increase the value from $546,200 to $576,200. Councilman Norberg stated that his motion to amend was based on the concept that the basement was only partially unrentable. He felt that the income is disproport- ionatly low and if ~he noisy area of the lower level is improved the vacancy rate should be set at 10 %. Roll call on amendment: Hentges, Norberg--aye Hovland, Petkoff, Nawrocki-- nay Motion to amend fails. Roll call on main motion: Hovland, Petkoff, Nawrocki--aye Norberg, Hentges--nay d. 4201-4203 Second Street The house on the property has had problems with the foundation cracking and as was noted by the City Assessor one of the basement walls is bulging. Councilman Hentges recalled this area was originally a swamp followed by a gravel pit. He was of the opinion that the conditions would never be correctable unless the owner put in pilings down to solid ground which would be very costly. Motion by Petkoff, second by Hovland to decrease the valuation on the property at 4201 and 4203 Second Street by $4,000 from $96,700 to $92,700 as recommended by the City Assessor. Roll call: Hovland, Petkoff, Norberg, Nawrock|--aye Hentges--nay The Mayor again requested a list of all the properties whose evaluations were reduced by Anoka County following the Board of Review in 1982. 4. Adoption of Assessment Rolls Motion by Hovland, second by Petkoff to adopt the assessment rolls as presented and amend- ed. Roll call: Hovland, Petkoff, Nawrocki--aye Norberg, Hentges--nay Adjournment Motion by Hentges, second by Petkoff to adjourn the continued Roll call: All ayes -Anne Student, Council Bruce G'T. Nawrocki, Mayor