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	MINUTES/FINANCE COMMITTEE Tuesday, May 30, 1995 - 4:00 p.m. Members present: Carpenter, Babinchak, Geller, McCabe. 1. Protest of assessor's 1995 valuation of property: Mel Carsen, city assessor, reported that his office sent notices and copies of reports to all property owners scheduled to appear before committee today. c) Michael Huot, 814 South 20th Street Mr. Huot did not appear. Mr. Carsen reported property purchased in March of 1993 for $71,500; value of property increased for 1995 by a 10% neighborhood factor at $85,500. Moved by McCabe and Babinchak to uphold the assessor's value of $85,500. Motion carried. i) Steve Reller, 616 Maple Avenue Mr. Reller did not appear. Mr. Carsen reported they had signed/completed application for the 3-year remodeling exemption which will reduce 1995 value by $8,000 (to $80,300), and recommended approval. Moved by Babinchak and Carpenter to approve the application for the three-year remodeling exemption for this property. Motion carried. Protest withdrawn: 1) David Sage, 2111 10th Avenue North. Mr. Carsen reported that Mr. Sage withdrew his protest. Moved by Babinchak and Geller to uphold the assessor's value for 1995. Motion carried. a) Bruce Storhaug, 306 Circle Hills Drive Mr. Storhaug did not appear. Mr. Carsen distributed copies of letter from Bruce and Jodie Storhaug stating that they did not feel that the 9% increase for 1995 was justified, and asked for reconsideration and submitted their own comparables. Mr. Carsen also submitted comparables and reviewed with the committee. Moved by Babinchak and McCabe to uphold the assessor's value of $148,900. Motion carried. b) Patrick Grinde, 715-717 South 25th Street Mr. Grinde did not appear (lives in Minneapolis). Mr. Carsen reported that he has talked with Mr. Grinde, however, he has not responded after last communication (incl. report) was sent. Mr. Carsen reported that since protest they inspected the property and made anew appraisal using cost and market approaches, and reviewed comparables with the committee. Moved by Babinchak and Carpenter to uphold the assessor's value of $94,100. Motion carried. d) James Carlson/Diana Wells, 702 Horizon Circle Mr. Carlson was present. Mr. Carsen reported that the value of the property increased for 1995 by repricing the improvements and increasing the land by 5% (using current manual, MINUTES/FINANCE COMMITTEE May 30, 1995 - Page 2 to $108,600 less $50,000 new home exemption, to $58,600. He reported that since protest they have inspected the property and rechecked their appraisal using both cost approach and market approach which support their value. Mr. Carlson stated his basic objections: that in that area where specials so high ($10-12000), and added to what comparable sales are, yields a value that is in substantial excess to the fair market value and if dropped $10,000 off assessed value, that's about what house worth; that always have conern when person doing assessment owns two lots in the development, and there's sub- stantial reason to think higher values may be of some value to them; and thinks value too high. He stated that adding specials in overstates the value of the property, and when taxes increase substantially over such a short period of time, causes lot of people to be unhappy. Mr. Carsen reported that state law requires them to value property free and clear of all encumbrances, when you buy a piece of property you may assume some special assessments, they are an encumbrance; and have to value land as if specials paid. He also stated he would like to address area of possible conflict of interest, and reported that several years ago all lots in this area offered for sale by the City on the open market, two lots sold to a person in their department, that person does in fact appraise that area of town, and because he owns two lots doesn't feel that he should move him out of that area, that he could have had another appraiser go in and do Western Skies but doesn't know if that's very feasible; he has been assigned that area for a number of years and happens to own two lots and building two houses on his own time. He stated that he cautioned that appraiser about conflict of interest, and as far as kiting the values because he owns, doesn't think he has that authority, that they reflect what is happening in the market place, and doesn't think that two lots would have that effect on the market. The committee agreed that two lots wouldn't skew values in an entire neighborhood. After further discussion it was moved by Geller and Babinchak to uphold the assessor's value of $58,600. Motion carried. The committee advised that he may appear before Board of Equalization next Monday, June 5, at 7:00 p.m. and also before the County Board next Tuesday. e) Stephanie Ludvigsen, 798 Horizon Circle Ms. Ludvigsen did not appear. Mr. Carsen stated there is minor difference between the two houses (702 and 798 Horizon Circle) and value increased for 1995 by repricing the improvements and increasing land by 5%, to $56,400 (new house exemption). Moved by McCabe and Babinchak to uphold the MINUTES/FINANCE COMMITTEE May 30, 1995 - Page 3 assessor's value of $56,400. Motion carried. f) Agsco, Inc., 27th Avenue North No rep. of Agsco appeared. Mr. Carsen reported that he had received communication from Mr. Brown of Agsco dated 4/25/95 stating that they did not agree with the value placed on this property. He reported that since the protest he reinspected the property, that based on cost approach (no comparable sales in the region), and have adjusted value on two of the buildings downward (these are quonset-type storage units), resulting in a new value of $518,200. Moved by Babinchak and McCabe to reduce the assessor's value on this property from $560,400 to $518,200. Motion carried. g) Southwinds Apartments I and III, 2402 30th Ave.S. and 2403 27th Ave.S. No rep. appeared. Mr. Carsen reported he had received communication from tax consultant for owner, WHC-6, Ltd. Partnership (property purchased in July 1994 from Prudential Ins. Co. who had taken property over for non-payment of mortgage at substantially lower price than current assessment. He stated that Mr. Earnhardt, Real Estate Tax Services, wanted them to review value and reassess; that he did comparison for them earlier, and since that time done more thorough comparison and discussed with him; that Mr. Earnhardt stated he would take that info. to the owner and get back to the assessor's office, however, has not heard from him. He also noted that he sent Mr. Earnhardt a copy of his report. Mr. Carsen reviewed comparables with the committee (when built, overall value, etc.) and that comparables support value. Moved by Geller and Babinchak to uphold the assessor's values of $2,406,900 on Southwinds I and $2,609,800 on Southwinds III. Motion carried. h) Gary Johnson, 3598 15th Avenue South Mr. Johnson was present. Mr. Carsen reported they inspected property with the owner last Friday, and made an appraisal. He stated that their measurements are correct; however, there is still a concern by the property owner about the foyer which is two stories high and which the assessors figure as a two-story building. He stated their recommendation is to reduce the value from $195,000 ($218,000 less $50,000 exemption to $208,600 less $50,000 exemption) to $184,700. There was some discussion re. measurements and Mr. Johnson and assessor's office generally agreed. Mr. Johnson stated he had problem with comparables which were not in the neighborhood, his comparables within block and half (except for one on Kuster Ct.) and reviewed comparables. Mr. Carsen stated they have some problems with comparables that Mr. Johnson using. Mr. Geller asked Mr. Johnson what value of his property is; Mr. MINUTES/FINANCE COMMITTEE May 30, 1995 - Page 4 Johnson stated value somewhere between $210,000 and $220,000. After considerable discussion it was moved by Geller and McCabe to reduce the assessor's value of the property from $195,000 to $179,000. Mr. Geller stated he looked at issue of design and appeal, and quality, in making his recommendation, because so many issues with little points of contention. Mr. Johnson stated he will have Tim Crary come in and appraise, feels still too high. The committee informed Mr. Johnson of time and date of Board of Equalization meeting. Upon call for the question, the motion carried. Meeting adjourned at 5:40 p.m. Alice Fontaine City Clerk Dated: 5/31/95.