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MINUTES/FINANCE COMMITTEE
Tuesday, May 31, 1994 - 2:45 p.m.

Members present: Kulas, McCabe, Shores.

1. Matter of Bill Larson Company property, S. 4th Street.
Curt Siewert reported that the health department has been getting complaints re. pigeons at this location; that the community development office has been trying to work with adjacent property owner, Lander, re. tearing building down, that they are firming up cost estimates and negotiating with Lander, but in the meantime need to do something about the pigeons. He reported they can repair temporary screening on building to keep pigeons out at est. cost of $300-400, or wait until tear building down. He also noted that it would cost lot of money to rehab the building; space would be used for parking and access to the mall. The committee suggested using sticky substance/material to keep pigeons off this area as short-term solution.

2. Matter of leases in former White Drug and NSP buildings.
Dick Jackson reported he hasn't heard from NY office of Equitable Life re. settlement of lease in former NSP building, however, he is meeting with local agents on Thursday.

He also reported that they are still negotiating on lease with Red River Trading Co. for space in the former White Drug building. Moved by Shores and McCabe that negotiations continue and monies for remodeling of space be taken from excess sales tax as a loan to be repaid from monthly rentals. Motion carried.

3. Protest of assessor's 1994 valuation of property:
a) Roy Lindvall, 2503 S. 11th Street
Mel Carsen, city assessor, reported this is single-family home which received 10% increase on the land and 7% on improvements due to neighborhood factor, with an increase to $86,200. He reported that they re-inspected property and made new appraisal using market and cost approaches and were recommending another 3% depreciation on improvements, which would reduce value to $83,900. Mr. Lindvall questioned how land could increase in value faster than improvements, that house built in 1967, 3-bedroom house with one bath, no major remodeling done, unfinished basement, apartments down the street which has lot of traffic. Mr. Carsen stated these things were taken into consideration. Moved by Shores and McCabe that we accept the assessing department's recommendation to reduce the value of the property from $86,200 to $83,900. Motion carried.

b) Mary Davidson, 1409 Cottonwood Street
Mr. Carson distributed report on comparable sales, that this is single-family house, which was re-appraised for 1994, and value increased from $53,900 to $59,500. He reported they made new appraisal and were recommending that the value be upheld. Ms. Davidson questioned why comparables not on same size lots, and Mr. Carsen reviewed comparable sales. Ms. Davidson also
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stated that she had property appraised year ago for refinancing by Anderson Appraisal at $54,000, and City came up with appraisal of $6,000 more, and questioned why. After further discussion it was moved by McCabe and Shores to uphold the assessor's value of $59,500. Motion carried.

c) Kevin Grosz, 1411 Cherry Street
Mr. Carsen reported this is single-family residence which was reappraised for 1994 and value increased from $79,600 to $89,800, that they reviewed their appraisal using cost and market approaches and were recommending their value be upheld. He noted this property built in 1969 in older neighborhood. Mr. Grosz reported that house vacant for almost year, house located in neighborhood of smaller houses, and house needs some repairs (sidewalk and roof), and has single unattached garage. He also stated he purchased property 4 years ago for $71,000+. The committee noted that this is narrow lot, with house sitting long way on the lot, single garage. Mr. Grosz reported in the October of 1993 he refinanced house, has some comparables. After further discussion it was moved by Shores and Kulas that we set the valuation at $87,000 based on information supplied by the property owner. Motion carried.

d) Lee Hulteng, 1330 Walnut Street
Mr. Carsen reported that Mr. Hulteng wouldn't appear, that he received assessor's communication with recommendation to reduce value from $74,500 to $68,700 and that he agrees with recommendation. Moved by McCabe and Shores that we accept the assessor's recommendation to reduce the value from $74,500 to $68,700. Motion carried.

e) Vernon Lilleberg, 1106 15th Avenue South
Mr. Carsen reported this is single-family residence which was reappraised for 1994 and value increased from $66,500 to $72,500; that they inspected property and reviewed their appraisal using cost and market approaches and recommended upholding of their value. Mr. Lilleberg stated that this property has been increased 4 times since 1984, last improvements made in 1983; that this is 2-bedroom home with single garage. The committee reviewed comparable sales. Moved by Shores and McCabe that we accept assessing department's value of $72,500. Motion carried.

f) Dick Wilhelmi, 1417 Oak Street
Mr. Carsen reported that his office had reappraised property for 1994 and value increased from $62,300 to $76,600; that house has finished attic plus an addition on the back of the house, and recommended that their value be upheld. Moved by Shores and McCabe to uphold the assessor's value of $76,600. Motion carried.

g) Martin Simmonds, 1204 Cottonwood Street
Mr. Carsen reported that Mr. Simmonds had received assessor's MINUTES/FINANCE COMMITTEE
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communication recommending a reduction in value, and would accept the new value. He reported this is single-family house which received increase in value to $46,800, that house built in 1909, and was purchased from HUD in November 1992 for $32,500, that the owner has made several improvements to the property, that they inspected property and made new appraisal using cost and market approaches and were recommending reduction in value from $46,800 to $42,100. Moved by McCabe and Shores to accept the assessor's recommendation to reduce the 1994 value from $46,800 to $42,100. Motion carried.

h) Darrell Hinger, 2991 Columbine Court
Mr. Carsen reported this is single-family house, which received 10% increase by neighborhood factor, that the property sold in March of 1993 for $95,363, that they reappraised property using cost and market approaches and were recommending reduction in value. Moved by Shores and McCabe that we accept the assessor's recommendation to reduce the 1994 value from $101,400 to $98,100. Motion carried.

i) Dianne Lingren-Knauf, 1834 Lewis Blvd.
Mr. Carsen reported this is duplex used as a single family home, that property value increased by 10% neighborhood factor, that they inspected property and reviewed their appraisal using cost and market approaches and were recommending a reduction in value. Moved by Kulas and Shores to accept the assessor's recommendation to reduce value of the property from $82,900 to $76,100. Motion carried.

j) Gary Towne, 425 Cottonwood Street
Mr. Carsen reported that Mr. Towne called and is satisfied with assessor's recommendation and asked that he inform committee that Mr. Towne agrees with recommendation. Mr. Carsen reported this is single family house, that value of property increased by 10% neighborhood factor to $68,300, that they inspected property and made a new appraisal using cost and market approaches, and were recommending a reduction in value. Moved by McCabe and Shores that we accept the assessor's recommendation to reduce the 1994 value from $68,300 to $63,800. Motion carried.

k) John Cowger, 121 8th Avenue South
Mr. Cowger stated his objections - sent letter on April 25 requesting information and was sent incomplete information from assessing, that he needs information to make his presentation. He stated he did remodeling in 1992 and received increase in 1993 and 10% increase in 1994, and that part of the information he requested was whether neighbors keep up with his property. Mr. Carsen stated that Mr. Cowger had asked for information concerning inspections and adjustments since 1980 on his property and several other properties in the neighborhood, that they have responded to his request and met with Mr. Cowger. Mr. Herz
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reported they have not made a new appraisal. Mr. Carsen also
reported that this property would qualify for 3-year remodeling exemption, for 1992 and 1993 under abatement process.

The committee reviewed pictures and comparable sales information. Mr. Carsen stated they have not seen house since 1992 and March of 1993. The committee stated they were willing to hold to give Mr. Cowger more time to review information. Mr. Cowger stated he will be out of town on June 6, but will make property available to assessing department prior to that. Committee held the matter until 6:45 p.m. on Monday, June 6.

l) Richard Schoeneck, 729 Belmont Road
Becky Schoeneck was present. The committee reviewed comparable sales information and pictures. Mr. Carsen reported this is single-family house, currently being used as bed and breakfast; that value increased by 10% neighborhood factor and wall air-conditioner to value of $106,900. He reported that an independent appraisal was made on this property in 1993 indicating value of $105,000. He reported that this office made new appraisal using cost and market approach, and were recommending their value be upheld. Mrs. Schoeneck reported that this house is 85 years old, requires lot of maintenance and repairs, and submitted pictures of interior. She reported they purchased house in October of 1989 for $96,500; that houses down street valued at $50,000+ Mr. Herz reported that appraisal done in middle of 1993, which substantiates their value. It was also noted that they looked at property as single family home, and not as a bed and breakfast. Mrs. Schoeneck stated they received increase of over $10,000 in one year. Moved by Shores and McCabe that we accept assessor's value of $106,900. Motion carried.

m) Leila Olson, 814 Stanford Road
Mr. Carsen reported this is single-family home which received 8% increase through neighborhood factor and increased value to $70,700, that they made new appraisal using cost and market approaches and were recommending a reduction in value, with which Mrs. Olson agreed. She stated house needs lot of repair, have handicapped ramp in front as her husband is handicapped. Mr. Carsen reported that Mr. Olson close to being confined to a wheelchair, that conditions do not exist for February, 1994, but he could possible qualify for 1995, and they will keep in mind. Moved by McCabe and Shores to accept the assessor's recommendation to reduce the 1994 value from $70,700 to $64,200. Motion carried.

n) Robert Peterson, 409 Hamline
Mr. Carsen reported this is single-family home, that value increased by 8% neighborhood factor to $76,900; that they made
new appraisal using cost and market approaches, and were recommending their value be upheld. Moved by Shores and McCabe
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to accept city assessor's valuation of $76,900. Motion carried.

o) Mervyn Rud, 1501 7th Avenue North
Mr. Rud was present. The committee viewed pictures and comparable sales. Mr. Carsen reported City owned this house at one time. He stated that this is single family house which was reappraised for 1994 after expiration of a 3-year remodeling exemption, that they made new appraisal using cost and market approaches, and were recommending a reduction in value. Moved by Kulas and McCabe that we accept the assessor's recommendation to reduce the 1994 value from $37,200 to $31,300. Motion carried.

p) Marijo Whitcomb, 2209 University Avenue
Kyle Whitcomb was present and reported that house moved in in 1986, re-sided in 1991 and deck added in 1992 - 2 bedrooms up and 2 down. The committee reviewed comparable sales. Mr. Carsen stated this is single family home with basement apartment, increased 1993 value by 5% plus deck - from $76,600 to $83,500. He reported that an independent appraised in November 1991 indicated value of $71,000. He reported they re-inspected and made new appraisal and were recommending their valuation be upheld. Mr. Whitcomb stated there are rental units all around his property, house next door has absentee landlord and needs lot of work; that property rented to students and he had to put up fence because tenants partying in his yard; that house next door de-values his property because of tenants; that he is penalized for doing normal maintenance; that when property appraised they didn't take into consideration neighborhood.

Moved by Kulas and McCabe to reduce the value of the property from $83,500 to $81,900. Motion carried.

Mr. Whitcomb stated he hoped the committee would take into consideration that Grand Forks has high property tax, wants to see progress but should look at taxes.

q) Eugene Barna, 1120 South 36th Street
Mr. Carsen reported that Mr. Barna won't attend, that at May 2 meeting they asked him to come in but he didn't. Mr. Carsen reported this is single family home that was reappraised for 1994, and value increased from $149,400 to $185,000, house receives a $75,000 new home exemption (this is last year of 2-year exemption). He reported that they have rechecked their appraisal using market approach, and recommend that their value be upheld. Moved by Shores and McCabe to accept assessor's recommendation to uphold their value for 1994 of $110,000 ($185,000 less $75,000 exemption). Motion carried.

r) Cindy Filler, 1138 South 36th Street
Mr. Carsen reported this property qualifies for two-year new home exemption of $75,000; that they re-inspected and set value

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of $182,300 for 1994 less the $75,000 exemption = $107,300, and recommended their value be upheld. He reported that an
independent appraisal had been made setting value at $175,000, however that information wasn't available. Ms. Filler stated she paid $145,000 for the house, cut back on many items when building house, moved into house in February, 1993, feels valuation too high. The committee reviewed comparable sales information. Moved by Shores and Kulas to set valuation of the property at $178,600, less $75,000 exemption, for a value of $103,600. Motion carried.

s) Donna Whaley, 1506 South 19th Street
Mr. Carsen reported this is single family home, value for 1994 increased by 10% neighborhood factor to $71,000, that they reappraised using market and cost approaches, and recommended a reduction to $$68,200. Mrs. Whaley viewed comparable report and pictures, and stated they have a one-bedroom house, with finished basement. Mr. Carsen stated it's two bedroom house, one bedroom being used as a den. Mrs. Whaley stated that taxes have increased every year except one, for 17 years; taxes tripled but value hasn't doubled; and stated that senior citizens can't afford it. Moved by Shores and McCabe to accept assessor's recommendation to reduce value from $71,000 to $68,200. Motion carried.

t) Richard Paul, 814 South 9th Street
Mr. Carsen reported that Mr. Paul won't be present. Moved by Shores and McCabe to uphold the assessor's value of $47,700. Motion carried.

u) Lynn Wright and Beth Benson, 624 South 9th Street
Mr. Wright and Ms. Benson were present. Mr. Carsen reported this is single family home, value increased by 10% neighborhood factor to $61,400; that property sold in January, 1994 estate sale for $57,000, and an independent appraisal made in December 1993 indicating value of $57,500. He reported they made a new appraisal using cost and market approaches, and were recommending a reduction in value. Ms. Benson stated that the garage roof needs repair, and there is major fault in the basement but they would not object to value with reduction. Moved by McCabe and Shores that we approve assessor's recommendation to reduce the 1994 value from $61,400 to $57,900. Motion carried.

v) Joel Medd, 1203 South 22nd Street
Mr. Carsen reported that Mr. Medd wouldn't be here and that he accepts reduced value recommended by the assessor from $111,500 to $109,400. Moved by McCabe and Shores to approve assessor's recommendation to reduce value from $111,500 to $109,400. Motion carried.

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4. Matter of city flag.
Mr. McCabe asked committee to consider reimbursing the mayor of Bismarck for expenses (gas) from Bismarck to Grand Forks to
appear before committee relative to Mr. McCabe's proposal to establish a city flag. The committee questioned whether this should go through mayor's office and asked Mr. McCabe to check with the mayor. Held until Monday, June 6 at 6:45 p.m.

Meeting adjourned.

Alice Fontaine
City Clerk

Dated: June 1, 1994.