Board of Appeal and Equalization Meeting of April 17, 2018

Date: 
April 17, 2018

MINUTES OF THE BOARD OF APPEAL AND EQUALIZATION MEETING

APRIL 17, 2018

 

Pursuant to due call and notice thereof, a regular meeting of the Board of Appeal and Equalization of the City of Saint Peter was conducted in the Governors’ Room of the Community Center on April 17, 2018.

A quorum present, Mayor Zieman called the meeting to order at 6:00 p.m.  The following members were present: Councilmembers Johnson, Kvamme, Pfeifer, Brand, Grams and Mayor Zieman.  Absent was Councilmember Carlin.  County officials present were:  Nicollet County Assessor Lorna Sandvik, Senior Appraiser Marcus Carlson, and Appraiser Michelle Wills.

Mayor Zieman and Councilmember Grams have completed the training for Board of Appeal and Equalization members.

Sandvik described the increases that were applied across the board to the various residential neighborhoods in Saint Peter as well as apartments and commercial and industrial property.  Sandvik indicated State Statute requires the County’s valuations to be within 90%-105% of the sales that occurred in the community between the periods October 1, 2016 – September 30, 2017; and because the valuations were below that range, the County was required to increase valuations to reach the threshold with residential increases mostly in the 5-10% range, but some small pockets with increases to the structure values of 25% which got the valuations to 92.68%.  Sandvik also indicated that apartment buildings with 13 units or more were increased 5% and four-plexes received a 10% increase and there was a 35% across the board increase for commercial properties in the downtown; 10% for office and retail; and industrial properties received no increase.  Finally, Sandvik stated that following the Board’s decision (which would come at the end of the meeting), the property owner would receive a letter and if they did not agree with the local Boards’ decision, the property owner could make an appointment to appeal further to the County Board of Appeal and Equalization.

Mayor Zieman informed the audience that the Council would hear all the appeals and make a decision on each appeal at the end of the meeting.

Megan Willette, 41063 County Road 20, appeared before the board on behalf of Kaduce Properties (two parcels at 424 South Minnesota Avenue), to appeal the valuations of $489,500 on the building and $33,800 on the parking lot.  Willette indicated her belief that the valuations were too high on both properties and indicated that her calculations led her to believe no investor would consider buying the properties because the “cap” rate was only 6.1% and investors needed at least 7.5-10% to consider purchasing.  Willette indicated the building housed nine tenants and she made approximately $70,000 in annual income from the property.  Willette also noted she believes the building shouldn’t be valued at more than $400,000 and the parking lot was overvalued because of “street disrepair”.  Willette also distributed information on expenditures related to the properties from April 2017-April 2018.

Daniel Frey of 423 South Seventh Street, did not appear.  Sandvik noted that as per State Statute, the appeal of an applicant who did not appear was not to be considered.

Scott Roesch, 812 South Fourth Street, appeared to appeal the valuation of $120,700 assigned to his property.  Roesch indicated his property was a 20 year old mobile home on a foundation and stated his belief that mobile homes don’t appreciate in value and the property would not sell for the valuation amount.  Roesch indicated he would be happy with a valuation of $100,000. 

Russell Lawrence, 425 West Chestnut Street, objected to his valuation of $96,700.  Lawrence cited the electric inspector not allowing him to move/upgrade his electrical panel to an inside panel with switches (versus fuses) as one of his reasons for asking for a reduction and mentioned his gravel driveway and gravel in the right-of-way that he wanted to fill with concrete.  Lawrence also indicated he had purchased the property three years prior from a friend for $95,300. 

Mikkel Haugen, 702 North Swift Street, asked for a reduction in his valuation of $138,700 based on his review of comparable properties having more than one bathroom.  Haugen indicated he felt it would cost $8-10,000 to add an additional bathroom to his home.

Rod Rettig, 821 South Front Street, had cancelled his appointment, but County Assessor Sandvig recommended reduction of the valuation to $64,800 after her staff had inspected the property and found it to be in “substantial disrepair”.  Sandvig indicated a new metal roof had been added along with some other improvements, but portions of the property were also under demolition.  A motion was made by Pfeifer, seconded by Brand, to accept the recommendation and reduce the value to $64,800.

The Board considered the following additional recommendations from the Assessor’s Office:

  • Gerald and Susan Floren, 405 West Mulberry Street – After inspection by the Assessor’s staff, the recommendation was to reduce the valuation to $141,700 based on the substandard condition of the property which previously had been valued based on an exterior inspection only.  A motion was made by Johnson, seconded by Grams to accept the recommendation.  With all in favor, the motion carried.
  • Laura M. Kiecker, 174 Summit Park – Based on damage caused by a roof leak necessitating removal of one of the two bathrooms in the property, the Assessor’s Office recommended reduction of the valuation to $5,600.  A motion was made by Kvamme, seconded by Brand to accept the recommendation.  With all in favor, the motion carried.
  • LeeAnn Valentine, 1314 North Third Street – Following an interior inspection of the four-plex, the Assessor’s Office was recommending a reduction in valuation to $140,400.  A motion was made by Brand, seconded by Pfeifer, to accept the recommendation.  With all in favor, the motion carried.

At the conclusion of all the scheduled appeals, the Board made the following decisions:

  • Kaduce Properties, 424 South Minnesota Avenue – A motion was made by Kvamme, seconded by Johnson, to make no change to the valuation on either parcel.  With all in favor, the motion carried.
  • Scott and Elizabeth Roesch, 812 South Fourth Street – A motion was made by Brand, seconded by Johnson to reduce the valuation to $113,500.  With all in favor, the motion carried.
  • Russell Lawrence, 425 West Chestnut Street – A motion was made by Kvamme, seconded by Zieman, to reduce the valuation to $96,000.  With all in favor, the motion carried. 
  • Mikkel and Gabrielle Haugen – 702 North Swift Street – A motion was made by Kvamme, seconded by Pfeifer to make no change to the valuation.  With all in favor, the motion carried.

There being no further appeals presented, a motion was made by Pfeifer, seconded by Brand, to adjourn.  With all in favor the meeting was adjourned at 7:15 p.m.