05-01-00 agenda
CITY OF RICHFIELD
MONDAY, MAY 1, 2000
LOCAL BOARD OF EQUALIZATION
6:00 P.M.
COUNCIL CHAMBERS
AGENDA
CALL TO ORDER
ROLL CALL
1. CONVENING OF 2000 RICHFIELD BOARD OF EQUALIZATION
STAFF REPORT NO. 122
ADJOURNMENT
AUXILIARY AIDS FOR INDIVIDUALS WITH DISABILITIES ARE AVAILABLE UPON
REQUEST. REQUESTS MUST BE MADE AT LEAST 96 HOURS IN ADVANCE TO
THE ADMINISTRATIVE SERVICES DIRECTOR AT 861-9702.
gig&
AGENDA ITEM # I
REPoRT # 122
MAY 1, 2000
Z
REPORT PREPARED BY:
REPORT PRESENTER:
STAFF REPORT
CITY COUNCIL MEETING
DEPARTMENT DIRECTOR REVIEW:
REVIEWED BY CITY MANAGER:
d
NAME, TITLE
114.J
IV
V ITEM FOR COUNCIL CONSIDERATION:
Convening of the 2000 Board of Equalization
L RECOMMENDED ACTION:
Convene the 2000 Board of Equalization and By Motion: Act on each
individual appeal to the Board.
III. BACKGROUND
The 2000 Richfield Board of Equalization is scheduled for Monday, May 1, 2000 at
6 p.m. in the Council Chambers of City Hall. As provided by City Charter, the Board
of Equalization consists of the Mayor, Council Members and two citizens appointed
by the City Manager with confirmation by the City Council. Mr. Lawrence Emond
and Mr. Glenn Erickson were recently appointed to serve on the 2000 Board of
Equalization.
The duties and responsibilities of the Board of Equalization are established by state
law. In general, it is the Board's responsibility to hear appeals by property owners
from the Estimated Market Values (EMV) established by the City Assessor and to
determine if market values should be adjusted. The appeals must focus on market
values rather than tax rates or other concerns which property owners may bring up
to the Board.
STEVEN L. DEVICH, ADMINISTRATIVE
SERVICES DIRECTOR
NAME, TITLE
STEVEN L. DEVICH, ADMINISTRATIVE
SERVICES DIRECTOR
0501Bd Rev
vJ
Each parcel of property in Richfield has had an EMV set as of January 2, 2000.
Overall, residential property values increased by approximately 11.9% from 1999
values. Properties which were physically reappraised received reductions and
increases, but were generally increased. Properties which were not physically
reappraised received statistical adjustments based on the characteristics of the
property and a computer assisted assessment.
The Richfield property assessment was conducted through a contract with
Hennepin County, which is supervised by the Administrative Services Department.
Staff works closely with the Hennepin County Property Appraisers to ensure that the
local assessment complies with the provision of the law. For example, the
Administrative Services Director verifies that the number of on-site properties
appraised for 2000 meets the standard (25% of total properties in the City)
established by law.
In addition, the median ratio (comparing EMV to sales price) for Richfield's 2000
assessment is 93.8%. The County Auditor's suggested level of assessment
(median ratio) for all municipalities in Hennepin County is 94%. Thus, the Richfield
local assessment is on target with comparable Hennepin County communities.
On March 10, 2000 property valuation notices were mailed to all property owners
showing the 2000 EMV. The notices advised property owners to contact the City
Assessor's office regarding any questions or to schedule an appearance before the
Board of Equalization if the property owner desired to challenge the EMV. About
127 inquiries have been received to date, as compared to 211 last year. In addition,
Assessing staff did 31 property reviews. Some resulted in adjustments by the
Assessing staff.
A list of the property owners who are appealing their EMV is attached to this Staff
Report.
III. BASIS OF RECOMMENDATION
A. POLICY I
• State Statute and. City Charter mandate a Board of Equalization
Hearing each year to be conducted before May 31.
• The City Council has established Monday, May 1, 2000 at 6 p.m. as
the date and time of the Board of Equalization Hearing for 2000.
B. CRITICAL ISSUES
• To date, the City has received five notifications of appeals to the local
Board of Equalization. All of these individuals indicated that they
would appear before the Local Board.
• The Board must be completed within 20 days of the day the Board is
first convened.
C. FINANCIAL
• None
D. LEGAL
• Any adjustments made by the Richfield Board of Equalization will be
recorded on the property assessment rolls. After appearing at the
Local Board, property owners may subsequently appeal to the
Hennepin County Board of Equalization and/or the State Tax Court.
• Notice of the hearing has been published and posted pursuant to law.
IV. ALTERNATIVE RECOMMENDATION(S)
• None
V. ATTACHMENTS
• Relevant documentation for each appeals case scheduled
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
0 Craig Lone, Hennepin County Property Appraiser
CITY OF RICHFIELD
2000 LOCAL BOARD OF REVIEW
May 1, 2000
Appearances
2000 EMV Recommendation
Henry Mattila 110,000 no change
6800 4th Avenue South
27-028-24-44-0068
Gobin Persaud 104,000 no change
7638 Chicago Avenue South
35-028-24-33-0057
Jeanne Lange 153,500 no change
6954-6956 1st Avenue South
27-028-24-43-0114
Richard Gunderson 148,000 no change
7101 Oakland Avenue South
35-028-24-22-0059
Letter
Portland Holding Company, LLC 190,000 no change
6544 Portland Avenue South
27-028-24-14-0011
9
•
•
•
ADDRESS 6800 - 4TH AVE S
PID # (42)27-028-24-44-0068
Sale Date 0/0 Sale Price 0 2000 EMV: 110,000
Sale Date /0 Sale Price
Style and Story Height R1 00 Age 1950
Ground Floor Area 950 sq.ft. Gross Bldg Area
Finished Bsmt Area 50% Finish Quality Poor
Fireplaces 0 Central Air Conditioning Yes
Baths- Deluxe: 0 Full: 1 314: 1 1/2: 0
Porches: Glazed 90 Screened
Open 0 Deck
Garage#1 400 Type Attached
Garage#2 0 Type
Lot Size: 9,720 sq.ft. 0.22 acres
Lake/Bay/Rating 0 - 0 - 0 Effective Frontage
Comments:
950 sq.ft.
0
0
0
SALES COMPARISON ADJUSTMENT GRID
6800 4th Ave. S. 6739 Stevens Ave. S. 6944 4th Ave. S. 7037 Portland Ave. S.
Richfield Richfield Richfield Richfield
xD::•::::.:::.;_::.:.;:.:.:;.:.:<;....::::..:.I 27-028-24-44-0068 27-028-24-42-0033 27-028-2444-0107 35-028-24-22-0097
SAIK+ _ •::::::I NA Aug-99 Nov-98 Oct-98
NA $117,600 $115,000 $107,900
NA NA NA NA
- -------------
NA
$117,600
$115,000
$107,900
$0.00 $107.59 $103.60 $112.40
Rambler Rambler Rambler Rambler
950 1,093 I 1,110 I 960
045?..TtA«{'I 950 1,093 I ($4,300) 1,110 I $4 800
( )
960
-__ Average Similar I ? Similar I Similar
I
I 1950-50 1942-55 I I 1942-55 I 1952-52 I
1'$3??)€0-N. Average ? Superior I ($1,500) ? Similar I ? Similar
1r?.1N! 111510,:.. ::::I 5 6 ) 1 5 ( 1 4
wVwf
2
3
2
2
2
0 I $2,500 i o I $2,50.
o I 0
Full I Full
($1,500) 320-Poor I $500 435-Avg ($2,500)
None I None
($2,000) 1 I ($2,000) 1 I ($2,000)
i I FA Gas/CA I 1 FA Gas/None I $1,500 I
2 Car Att 2 Car Att
$1,000 460 ($500) 506 ($500)
i None i None
None I $2,000 96' SP ( $1,000
I I 87'X 122' I ($1,500) 69X 125
Busy Street $3,000 Average
fYF'HlwR
1
i
0
Full
475-poor
None
None
FA Gas/CA
2 Car Att.
400
None
90' GLP
72'X 135'
Average
($7,300)
$107,700
$113.37
I
I
$4,000 $2,400
$111,900 $108,300
$117.79 $114.00
$112,000 $117.89 Per Sq Ft
?
I I I
I I
1
0 I $2,500 I 1
1 I ($2,000) 0
Full I Full
655-Avg I ($4,000) 330-Avg
None I None
None I I
FA Gas/CA FA Gas/CA
1 Car Tuck 2 Car Det
330 $2,500 400
None i None
None I $2,000 96' GLP
75'X 135' I 70'X 135'
Average Average
6945 5th Ave. S.
Richfield
I 27-028-24-44-0088
Sep-98
$105,900
NA
$105,900
$121.7
Rambler
870
870 ( $2,400
Similar
1948-48
Similar
5 I I
•
•
•
6739 Stevens Ave. S.
Richfield
7037 Portland Ave. S.
Richfield
COMPARABLE SALES
6944 4th Ave. S.
Richfield
6945 5th Ave. S.
Richfield
•
ADDRESS 7638 - CHICAGO AVE S
PID # (42)35-028-24-33-0057
Sale Date 5 / 87 Sale Price 78,200 2000 EMV:
Sale Date /0 Sale Price
Style and Story Height R100 Age 1956
Ground Floor Area 939sq.ft. Gross Bldg Area
Finished Bsmt Area 50% Finish Quality Ave
Fireplaces 0 Central Air Conditioning Yes
Baths- Deluxe: 0 Full: 1 3/4: 1 1/2: 0
Porches: Glazed 0 Screened
Open 0 Deck
Garage#1 396 Type Detached
Garage#2 0 Type
Lot Size: 8,712 sq.ft. 0.20 acres
Lake/Bay/Rating 0 - 0 - 0 Effective Frontage
Comments:
104,000
939 sq.ft.
0
0
0
SALES COMPARISC
7638 Chicago Ave. S. 7609 11th Ave. S.
Richfield Richfield
35-028-24-33-0057 35-028-24-34-0021
Feb-99
$122,900
$0.00 $132.86
Rambler Rambler
939 925
939 925
Average S1. Inferior I $3,000
1956 1954
Average SI. Superior I ($3,000)
5 5
2 ?. 2
1 1
1 -Poor
? 0 I $1,000
I I
Full Full
470 370 I $1,000
None None
IN ADJUSTMENT GRID
7615 14th Ave. S. 7638 Bloomington Ave. S. 7638 13th Ave. S
Richfield Richfield Richfield
J
35-028-2443-0070 I 35-028-24-43-0047 35-028-24-43-0031
+I Nov-99 I May-99 Aug-99
I $137,900 $129,000 $129,900
$147.64 $138.12 $110.37
Rambler I Rambler Rambler
934 I l 934 I 1,177
934 I 934 I 1,177 ($8,300)
Similar I + Similar I Similar
1956 I 1954 I, 1953 I
Sl. Superior I ($3,000) ( SI. Superior ($3,000) Sl. Superior I ($3,000)
7 I I 5 I
I I 6
3 1 1
I I 3 1
I
? 3 1
I ! I I
1 I I I I
1 -Avg I ($1,500) I 1 -Avg I ($1,500) 0 I $1,00P
Full I I Full I 80%
467 I I 467 I 0 I $4,700
None I I None None
LA.w None None I 2 I ($4,000) I None
FA Gas/ CA FA Gas/CA I I Fa Gas/CA I FA Gas/CA
2 Car Det 2 Car Det 2 Car Det 2 Car Det
396 440 484 440
None 392 I ($1,500) 428 I ($1,500) I None
None 128 OP I ($1,500) 122 GLP ( ($3,000) None
IjLoTsf ":s
8,712
9,900
I 9,975
I I
9,975
Next to Wall Average ($3,000) Average ($3,000) Next to Wall
OTH1 12 > i
Kitch
R
d
I
$3
000
en
m (
,
) Kitchen Rmd
($4,000) ($19,000) ($7,500)
!`?SALB $119,000 $119,000 $121,500
.. $ 126.73
$126.73
? $129.39
Indicated Value As Of January 2, 2000:
1 I ($2,000)
I Fa Gas/CA
1 Car Att ($2,000)
390
None
None
9,900
Next to Wall
($3,000)1 I
1 I
I
($9,600)
$120,000
r $127.80
$119,000 126.73 Per Sq Ft
•
•
Comparable #E1
760911th Ave. S.
Richfield
Comparable 13
7638 Bloomington Ave. S.
Richfield
COMPARABLE SALES
Comparable 12
761514th Ave. S.
Richfield
Comparable /4
763813th Ave. S.
Richfield
t
•
ADDRESS 6954 -1ST AVE S
PID # (42)27-028-24-43-0114
Sale Date 4/ 91 Sale Price 124,000 2000 EMV: 153,500
Sale Date /0 Sale Price
Style and Story Height 13100 Age 1953
Ground Floor Area 1944sq.ft. Gross Bldg Area 1944 sq.ft.
Finished Bsmt Area 30% Finish Quality Ave
Fireplaces 1 Central Air Conditioning Yes
Baths- Deluxe: 0 Full: 2 3/4: 0 1/2: 0
Porches: Glazed 0 Screened
Open 0 Deck
Garage#1 480 Type Detached
Garage#2 0 Type
Lot Size: 13,500 sq.ft. 0.31 acres
Lake/Bay/Rating 0 - 0 - 0 Effective Frontage 0
Comments:
0
0
1
Comparable 11
6325 -6327 Nicoilet Ave. S.
Richfield
Comparable ¥3
7301 - 7303 Nicoliet Ave. S
Richfield
COMPARABLE SALES
Comparable 12
6808 - 6810 Nicoliet Ave. S.
Richfield
Comparable ¥4
7627 - 7629 Portland Ave. S.
Richfield
COMPARABLE SALES
Comparable #5
6239 - 6241 Xerxes. Ave. S.
Richfield
•
ADDRESS 7101 -OAKLAND AVE S
PID # (42)35-028-24-22-0059
Sale Date 5 / 95 Sale Price 115,000 2000 EMV: 148,000
Sale Date /0 Sale Price
Style and Story Height R100 Age 1948
Ground Floor Area 1548 sq.ft. Gross Bldg Area 1548 sq.ft.
Finished Bsmt Area 30% Finish Quality Ave
Fireplaces 2 Central Air Conditioning Yes
Baths- Deluxe: 0 Full: 1 314: 1 1/2: 1
Porches: Glazed 0 Screened 0
Open 0 Deck 0
Garage#1 540 Type Attached
Garage#2 0 Type
Lot Size: 13,500 sq.ft. 0.31 acres
Lake/Bay/Rating 0 - 0 - 0 Effective Frontage: 100
Comments:
SALES COMPARISON ADJUSTMENT GRID
A:ESI?ia;><>? z><'« 7101 Oakland Ave. S.
........................::..::::. Richfield
35-028-24-22-0059
: $115,000
A17:itSailt lE M... $74.29
Rambler
1,548
Gt f ?.?S t r?? .,.t...... 1,548
It()I7'1';;:::>;:.»::>:<:;::>:::::::<::::> Average
1948-75
11!JDtTI#31!F:;.:;:•;;;:.;:,;;;:.;:;. Good
UEDA`
LOT S 1ZE `Std>( F`>>>>'
LOC
1
1
1-Poor
80%
371
None
2
Fa Gas/CA
2 Car Att
540
None
None
100'X 135'
Average
7129 Oakland Ave. S.
Richfield
35-028-24-22-0056
Mar-99
$161,000
$119.79
Rambler
1,344
1,344 I $6,100
Similar
1953-63
Similar
6
3
0 i
1 I
1
0 i $500
80%
6909 Oakland Ave. S.
Richfield
26-028-24-33-0057
Oct-99
$140,000
$102.12
Rambler
1,371
1,371 I $5,300
Similar
I
1952-58
S1. Inferior I $2,000
7 I
4
0
1
1
I -Avg
60%
538 I ($1,700) 1 411
None i None
2 I 0
Fa Gas/CA ! I Fa Gas/None
2 Car Att I Car Det
440 $1,000 280
None I 432'
224' GLP I ($4,500) None
100'X 135' I 75' X 135'
Similar Similar
1996 Kitchen Rmdl 11975 Kit. Rmdl. I $2,000 JStd. Kitchen
Handicap Access I. ($5,000)1
($1,600) S14,200
r>3 SLR PR1lti....
$159,400 $154,200
$102.97 $99.61
Indicated Value As Of J January 2,2000:
$155,000
663,9 Bloomington Ave. S.
Richfield
26-028-24-41-0059
Jun-99
$148,900
$111.37
Rambler
1,337 I
1,337 I $6,300
Similar
I
1953-70 I
Similar
I
.6
7232 Park Ave. S.
Richfield
35-028-24-23-0094
Dec-98
$140,000
$114.38
Rambler
1,224 I
1,224 i S9,700
Similar
1954-75 I
Similar
5
1 3 I 1 3 1
0 I 0
2 I ($3,500) 2 I (53,500)
0 $2,500 0 152,500
($1,000) 0 $500 0 I $50L
90% I 80%
1 721 I (S3,500)1 391
None I None
$4,000 1 I $2,000 0 I $4,000
$1,500 Fa Gas/CA I ( Fa Gas/CA
2 Car Att 2 Car Att
$2,500 396 $1,400 484 $500
($2,600) None I 400 I ($2,400)
None None
$2,500 75' X 135' I $2,500 75'X 133' I $2,500
Similar Similar
$5,000 11980 Kit. Rmdl. 1 $2,000 11998 Kit. Rmddl.
($5,000) + I ($5,000) i ($5,000)
$5,200 $8,800
$154,100 $148,800
$99.55 $96.12
$100.13 Per Sq Ft
•
•
7129 Oakland Ave. S.
Richfield
COMPARABLE SALES
6909 Oakland Ave. S.
Richfield
0 6639 Bloomington Ave. S. 7232 Park Ave. S.
Richfield Richfield
Portland Holding g,C Company, ?LLLC
7. r *..v.
April 29, 2000 Fax #952-861-9749
•
Richfield Board of Review
-,?m; County Assessor.
City of Richfield
6700 PQitland Avenue South
Richfield, MN 55423
Re: 6544 Portland Avenue-South PMN 27-029-24-14-0011
Dear Board of Review Members and County Assessor:
The subject of this letter concerns the need for a "Valuation Reduction" in the market value for
tie parcel listed above.
This property consists of the former gas station property located at the comer of 6& and Portland,
currently being.usM..as-a netaittimmidet• 'The property vitas sold on 12/1011999 by S&M
Company and purchased by Portland Holding Company, LLC in an "arms length" transaction.
to the complete "Minucapolis-St. Paul
The sale of the property badban ox??
commercial real estate buying market" for more than nine months, which marketing of the
property ultimately resulted *the sale-of this r property-on 12/1011299 in an "arms length"
transaction for.a.pcice of.S56,250.
On 01/02/200G, approximately 30 days-a$er-the closing of the "arms length" sale, this property
was incorrectly assessed by City of Richfield and Hennepin- Countyat-a-hvtal value of S 190,000.
Minnesota Statute 272.03 defines "market value" as "the usual selling price ... at the time of
assessment. It is he4mice•thatcould be-obtatned at a private sale or an auction sale, if the
assessor determines that-the p*v'fiom as auction sale represents an "anus-length" transaction.
In the case of this property, weIsve ackat dete o€ "mi4kat-value", i.e. an arms length
sale of the three properties just 30 days before the assessment date.
Please review this_manmand a4ust the "Estimated Market Value" and-the "Market Value for
Taxation" for taxes payable in-20M. to the vaioc esuMshodbyAhe-?Tms length sale of the
property.
1 look forward to your respori" this letter. Thank you.
Sincerely,
-.0 kII
&VP
Norlin Boyum -? O Y l7 A h 1 La
Chief NUnager
Portland Holding Company, LLC
Bo/VM
0