Committee Minutes
MINUTES
CITY OF GRAND FORKS - BOARD OF EQUALIZATION
Tuesday, April 13, 2004
The city council of the city of Grand Forks, North Dakota was called to meet as the Board of Equalization in the council chambers on Tuesday, April 13, 2004 at 7:00 p.m. with President Gershman presiding. Present at roll call were Council Member Hamerlik, Kerian, Kreun, Gershman - 4; absent: Council Member Glassheim, Brooks (unable to attend because of a city council meeting in Warren, Mn), Christensen (unable to attend because attending a neighborhood meeting re. mill and overlay in Sunbeam Addn.) - 3
Mel Carsen, city assessor, reported that the Board of Equalization is intended to equalize the values that the assessor has placed on each taxable piece of property in Grand Forks that they have increased a lot of property values for the year 2004, there is a report showing the increased valuation in various categories, increase of taxable value and indicates an increase on an overall basis of about 8%, that they have sent about 900 notices of increase to people whose value went up 15% or more, and sent out about 5,000 notices where increase was between 7 and 15%, more of an informational letter, and have fielded a lot of calls in the last month or so and has four written protests tonight, and several people in the audience who wish to speak to the Board.
Mr. Carsen reported that the State requires that the valuation on properties be within 5% high to 5% low, from 95% to 105%, based on last year's sales and his office does an elaborate sales study of each neighborhood and based on those sales as they compare them to the individual property values on property that is sold and determine an index either up or down for that neighborhood and almost all the neighborhoods in residential went up between 3 and 8%, some 10% and one up 12%. He stated they are closer on commercial property and had to increase commercial values by 2%; that in his report it shows under residential property there is synopsis of what they did, these new assessments will bring our residential assessments to within 95.8% of what they sold for in 2003; the commercial ratio is closer and these new values will bring our assessments to 98.8% of what the 2003 sales indicated.
He stated they are just barely over the mark in residential and if erred, erred on the conservative side rather than on the high side and yet wanted to equalize as one area - got 12% and several 10% equalizing to that level, the market is very brisk on residential and hard to follow that market, doesn't know what will happen next year.
Council Member Hamerlik stated he had talked to an individual who follows that and is in real estate, and on the average homes in Grand Forks increased by $18,000 this past year; the national value was 7.4% and lower than what we found in the local market. The city is divided into 30 residential neighborhoods, try to divide so have homes of like age and size in same area, etc.
Mr. Carsen stated his intent tonight would be to have the protests entered, and have those protests scheduled for a hearing before the finance/development standby committee within the next few weeks and come back with a recommendation to the full Board of Equalization on a city council night to take final action. People deserve an individual hearing so assessing can put together their case and they can sit down with a smaller group informally and discuss it. For further recourse if still a dispute there is a County Board of Equalization in June and the State Board of Equalization which meets in August, to go to the State Board would have had to go to both the City and County Boards, and after that file an application for abatement.
President Gershman asked those wishing to protest to present their written or oral protests to the Board of Equalization:
Craig Engel. 2215 Fallcreek Court, questioned if going through all the motions, what are chances of getting property reduced, that his valuation went up $22,000. Mr. Carsen stated they review each one, put together information concerning cost approach, market approach and give that information to the standby committee at the hearing, that individual can speak at that hearing. Council Kreun suggested he make an appointment between now and when the standby committee meets and look at criteria in assessing. It was noted that if there isn't a protest made tonight they couldn't make any change under the Board of Equalization.
Gerri Alberts stated she owns property at 2704 Belmont Road and 113 Walnut Street but was not protesting values, however, protesting that property at 2704 Belmont increased $28,600 and over an 18% increase, and only protesting that in one year get hammered but nothing has changed, should have been a gradual process to get where it is. Mr. Carsen stated he is familiar with the house but not sure re. the increase on the house; that they re-appraise a number of houses each year and find, esp. in this year's market, that some are increasing dramatically. Mrs. Alberts stated she was only protesting system because of large increase in one year.
Mr. Carsen stated his recommendation would be to forward each protest to the finance/development standby committee and they would be afforded an individual hearing two or three weeks from now so they would have to prepare for that, and committee's recommendation would come back to the full Board of Equalization at some date certain, those dates are not set as yet.
1) Mary Askim-Lovseth and Larry Lovseth, 5803 Pinehurst Drive, new construction, and presented several documents to the assessor. Mr. Carsen reported they look at all the information and make a recommendation to the standby committee.
2) Lloyd Holy, Forks Equipment, 5101 Gateway Drive, commercial property, left some information for review.
3) Sue Ellen Bateman, property description #3117.192.02 on 32nd Avenue South, agricultural property, her address is 6526 32nd Avenue South.
4) Dudley Benson, 1609 2nd Avenue North.
5) Craig Engel, 2215 Fallcreek Court.
Written protests were submitted by:
5) Gary H. Lietzau, 815 Duke Drive, #315. Mr. Carsen stated the protest was for all of the units in the Chateau Condominiums, however, he does not have the authority to do that and talked to him about that and is now only protesting his own unit.
6) Jim Fish, 112 Chestnut Street
7) Dean Kuznia, 5753 Cypress Point Drive
8) J. Herzog & Sons, Inc., management company and owner of the Grand Cities Mall. and protesting value on 10 parcels.
Council Member Hamerlik stated as they could not take official action on a date certain, but should have an agenda item on city council agenda on Monday night for date certain so know when everybody is available.
Council Member Hamerlik moved that we receive and file those names and protests that were received tonight verbally and in writing. Council Member Kerian seconded the motion. Carried 4 votes affirmative.
Council member Kreun moved to refer the protests to our finance/urban development standby committee with the city council setting the date of that meeting next Monday. Council Member Kerian seconded the motion. Carried 4 votes affirmative.
John Herz, assistant city assessor, asked if individuals protesting could leave their telephone numbers for contact (with numbers not in the record).
ADJOURN
It was moved by Council Member Kerian and seconded by Council Member Kreun to adjourn. Carried 4 votes affirmative.
Alice Fontaine,
City Clerk