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05-08-95 board of reviewCITY OF RICHFIELD MONDAY, MAY 8, 1996 LOCAL BOARD OF REVIEW 5:00 P.M. COUNCIL CHAMBERS AGENDA CALL TO ORDER I. CONTINUATION OF 1995 LOCAL BOARD OF REVIEW COUNCIL LETTER NO. 120 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. CITY OF RICHFIELD, MINNESOTA Council Letter No. /0D Agenda May 8, 1995 Issue Statement: Reconvening of the 1995 Board of Review. Background: On May 1, 1995 the City of Richfield convened the 1995 Board of Review. The Board considered eighteen (18) cases, deferring action on nine (9) of the cases to a reconvene date of May 8, 1995 at 5:00 p.m. The continuance was provided to give the appellants and staff an opportunity to prepare data on these properties so that the Board could make an informed decision on each of them. Recommended Motion: Reconvene the Board of Review at 5:00 p.m. May 8, 1995 and take action based on the information presented at the hearing. Basis of Recommendation: 1. Reconvening of the Board has been scheduled publicly at the May 1 meeting. 2. Information needed for the Board to make a determination on the remaining appeals will be available at or prior to the hearing. 3. The Board of Review must conclude its business within 20 days of May 1, 1995. Alternative Recommendation: None. Discussion /Decision Mode: It would be desirable to conclude the proceedings of the Board of Review on May 8, 1995. Respectfully submitted, James D. Prosser City Manager JDP:ds AGENDA 1995 Local Board of Review City of Richfield May 8, 1995 (�Ijohn Anderson 7233 10th Avenue South 35- 028 -24 -24 -0059 2. Juel Casperson 1710 East 78th Street 35- 028 -24 -44 -0006 3 Blaylock Plumbing 7731 4th Avenue South 34- 028 -24 -44 -0029 4 Jeff Huss & Jennifer Glick 6933 1st Avenue South 27- 028 -24 -43 -0016 Marilyn Nordin 7620 Bloomington Avenue 35- 028 -24 -43 -0044 6 Dennis Tharaldson 6445 11th Avenue South 26- 028 -24 -24 -0018 67- Dave Wagner 6444 Knox Avenue South 28- 028 -24 -24 -0069 1995 EMV $108,000 397,000 65,0 5Zi- 97,000 Recommendation $ 99,000 Owner Concurs No Change No Change No Change No Change 112,000 8-5 Owner Concurs 5,000 Cancelled — /b Local Board of Review Agenda May 8, 1994 Page 2 Garfield Hoversten 1 6413 Pleasant Avenue South 231,000 No Change 27- 02'8 -24 -24 -0017 Jeanne Lange 6956 1st Avenue South 8,000 No Change 27- 028 -24 -43 -0114 LETTERS 10. William Larson �� 7234 15th Avenue South 101,00 No Change 35- 028 -24 -12 -0091 11. Norma Preston , 7208 Oliver Avenue South / L 80,200 No Change 33- 028 -24 -23 -0002 12. Jim Zacher 6831 Newton Avenue South C141,000 No Change 28- 028 -24 -33 -0021 13. Joel Swanson & Pamela Cutshall 7000 Oakland Avenue South 112,000 No Change 35- 028 -24 -22 -0060 14. Irene Magnuson Enterprise Rent -A -Car 616 East 78th Street 35- 028 -24 -33 -0009 No Change 0Zb,cB�me/it,5 NO% 5 ca -nn�c� APPRAISAL REPORT of an Industrial Building Action Messenger, Inc. 1710 East 78th Street Richfield, MN PID# 35- 028 -2444 -0006 Prepared for: City of Richfield Local Board of Review Prepared by: Ray Shudy, SAMA Senior Appraiser Appraisal Date January 2, 1995 13 SUBJECT IDENTIFICATION Name: Action Messenger, Inc. Subject Address: 1710 East 78th Street Richfield PID #: 35- 028 - 2444 -0006 Building Size: 9,915 Sq. Ft. GBA; 3,249 Sq. Ft. Office Area Site Size: 32,848 Sq. Ft.; 3.31 land to building ratio Highest and Best User Commercial, service business Current Use: Semi- industrial service business Age: Actual: 1967 Overall Condition: Average APPRAISAL SUMMARY Current Value Year Pmp.Z�qe Thal Per SQ Ft 1995 1 C $397,000 $40.04 Review Values Fnund- Y= Cnst AWmach income p rp reach 1995 NA $393,000 Review Vahie Total Per .19q-Ft- $415,000 $41.86 Market $415,000 CORRELATION AND CONCLUSION Property Description: The subject consists of a one story office warehouse building located in the City of Richfield on the northwest corner of the intersection of Cedar Avenue and I-494. The property sold on December 22, 1993 for $415,000. The sale was brokered and is considered an arm's length transaction. The buyer was looking for a location within close proximity of the airport. The improvements were constructed in 1967. There are three truck high loading docks with access off East 77th Street. There is what appears to be an adequate sized parking lot on the east side of the building. Office area makes up approximately one third of the total building area. Few changes or improvements were made to the property after, the new owner took possession, since they were able to utilize it in its present layout and condition. Cost Approach: The cost approach is useful in determining the value of newer improvements when the land costs are known. The subject property is over 25 years old. Because of the difficulty of accurately estimating the depreciation accurately for a property of this age, The cost approach was not used. Income Approach: Since the property is owner occupied I have considered an economic income stream for the property. The subject property's income and expenses were estimated, based on current information available for this type of property at this location. Market Approach: The subject property sold for $415,000 on December 22, 1993. Upon examining recent sales of industrial type properties in similar locations as the subject property, I have found few sales of truly comparable properties. All were determined to be inferior to the subject property. The subject property is located on a site that enjoys good visibility and exposure when compared to the other sold properties. Access to the property continues to be good. Future changes to East 77th Street, including the extension under Cedar Avenue, may serve to enhance the current use of the property, since it will improve access to the airport. After considering the market data available, I believe they support the sale of the subject as being at or near market level. Conclusion and Final Opinion: After consideration of the income and market approaches to value, with most weight placed on the market approach, my conclusion and final opinion of value for the subject property is $415,000 for January 2, 1995. May 4, 1995 Ray Shudy Senior Appraiser 5 1995 PID: 35-028- 2444 -0006 PROJECT NAME: ACTION MESSENGER, INC ADDRESS: 1710 EAST 78TH STREET RICHFIELD ZONING: C2- GENERAL COMMERCIAL OWNER: JUEL CASPERSON PROPERTY TYPE: SINGLE TENANT OFFICE WAREHOUSE YEAR BUILT 1967 INCOME ANALYSIS GROSS BUILDING AREA 9,915 OFFICE INCOME $22,743 NET RENTABLE AREA 9,915 WAREHOUSE INCOME $26,664 OTHER $0 OFFICE AREA 3,249 ,; i, ... .............................. WAREHOUSE AREA 6,666 MEZZANINE LESS: VACANCY $2,470 OFFICE LEASE RATE $7.00 ......... WAREHOUSE LEASE RATE $4.00 " r7.:.:.::.;:.;:.;:< LESS: RENT CONC. $0 VACANCY ALLOWANCE 5.00% FREE RENT $0 SQUARE FEET VACANT 496 SQUARE FEET OCC. 9419 TOTAL COLLECTIONS $46,937 LESS: N.R.E. $421 RENT CONCESSIONS 0.00% MGMT @ 4% $1,877 FREE RENT CONCESS. 0.00% LEASING $2,347 TURNOVER RATE 25.00% TEN. IMP. $0 TENANTS REMAINING 75.00% AV. LEASING PERIOD 5 RESERVES $1,785 13.7% TOTAL $6,430 N.R.E. PER SQ.FT. $0.85 ................................................................. Of Mow ........................::::::: rr�:.:::._. TENANT RvIP. COST - NEW $0.00 RENEWAL $0.00 EXPENDABLE VAL. 'OF TI 50.00% CAPITALIZED VALUE $393,000 RES. FOR REPLACEMENT $0.18 PER SQ.FT. GBA $39.64 PER SQ.FT. NRA $39.64 LEASE COMMISIONS - (7% SLIDING SCALE) CAP RATE 10.00% E.T.R. (NET) 0.31% TOTAL CAP RATE 10.31% WHSINC.WK3 RTS 1994 CONFIDENTIAL PID: 35-028 -24-44 -0006 PROJECT NAME ACTION MESSENGER, INC. ADDRESS 1710 EAST 78TH STREET RICHFIELD ZONING C-2, GENERAL COMMERCIAL OWNER JUEL CASPERSON ADDRESS NET C.E. PRICE SALE DATE PRICE [/I GBA LOCATION LAND AREA L/B RATIO YEAR BUILT QUAL/CONDITION FFA TFA MEZZ: OFFICE MEZZ: STORAGE BASEMENT GBA OFFICE AREA(GBA) OFFICE %(GBA) CEILING HEIGHT ADJUSTMENTS TIME LOCATION EXCESS LAND AGE QUAL/CONDITION SIZE OFFICE AREA CEELING HEIGHT OTHER:DOCKS il*l-1 SUBJECT COMP 1 COMP 2 1710 EAST 78TH ST 7901 12TH AVE S 512 WEST 78TH ST RICHFIELD BLOOMINGTON RICHFIELD $415,000 $360,000 $595,000 Doo-93 Aug-94 Mar-94 $41.86 $34.19 $30.05 GOOD GOOD GOOD 32,848 26,260 61,650 3.31 2.49 3.11 1967 1966 -80 1956.67 AVERAGE AVERAGE AVERAGE 9,915 10,528 19,800 9,915 10,528 19,800 0 .0 0 0 0 0 0 0 0 9,915 10,528 19,800 3,249 3,701 2,952 0.33 0.35 0.15 13/8 1218 14 0.00% 1.00 1.05 1.05 1.00 1.00 1.00 1.00 1.00 1.10 1.00 1.03 1.00 1.03 1.05 1.05 1.05 1.00 1.00 NET ADJUSTMENT 1.00 1.21 1.23 ADJ PRICE [4 GBA $41.86 $41.47 $36.91 EST PRICE INDICATED VALUE �OQ> Jan -95 'ORO 7516 Fremont Avenue S. Richfield, MN (612) 866 -9650 April 28, 1995 City of Richfield Commercial Assessing Dept. 67th Street & Portland Ave. S. Richfield, MN 55423 David fames & Associates RE: Valuation status of Blaylock Plumbing, Richfield, MN. Property I.D. # 34- 028 -24 -44 -0029 Dear Chief Assessor: In assisting Blaylock Plumbing in their concern for over - valuation of their property at 7731 4th Ave. S. in Richfield, MN, I request on their behalf further review of their assessment. Last year's value of $175,000 increased $90,000 this year for a total of $265,000. We understand the additional amount on the valuation was for the Naegele business sign on the site. The added income from this sign was requested earlier by the Richfield Assessor. However, Naegele's.agreement with Blaylock Plumbing includes not releasing the yearly payment amount given to Blaylock Plumbing. We request further discussion and study on this valuation before it being finalized. Sincerely, David James Consultant for Blaylock Plumbing I Mike Blaylock Blaylock Plumbing HENNEPIN COUNTY Memorandum DATE: May 3, 1995 TO: Richfield Board of Review FROM: Larry Miller, Principal Appraiser SUBJECT: Blaylock Plumbing Appeal of 1995 EMV Mr. David James, Blaylock Plumbing Representative, called Mr. Dan Salzwedel, Commercial Appraiser at Hennepin County Assessor's Office, on Tuesday morning, May 2, 1995. 'He wanted to come in and discuss income and expense data for Blaylock Plumbing. He was asked if he would provide a copy of the lease with Naegele. He said he could not. Mr. Salzwedel declined the meeting as the issue before the Board was the value attributed to the sign income. I spoke with Mr. Mike Blaylock on Tuesday afternoon, May 2, 1995. I asked him to provide the lease as requested by the Board of Review. He indicated he could not. I advised him that without the lease we would not do a review and the value would be sustained according to the Board of Review's motion. The lease has not been received. is: No Change. LM: at '0 Therefore, my recommendation SUBJECT PROPERTY ADDRESS 6933 1 st Avenue South PID# 27- 028 -24-43 -0016 Sale Price $85,000 Sale Date 3/92 Story Height Rambler Year Built 1951 Ground Floor Area 1164 sq. ft Gross Building Area 1164 sq. ft. Fireplaces 2 Central Air Conditioning Yes Bathrooms 1/0/1 Finished Bsmt. Area 500 sq.ft. Garage 2 car attached Porches / Decks 300 sq. ft. Deck / 96 sq. ft. Glazed Porch Other/ Comments Lot Size 75 x 135 GRID - COMPARABLE DATA APPLICANT'S NAME: Jennifer Glick and Jeff Huss ADDRESS: 69331st Avenue South PROPERTY ADDRESS: 69331st Avenue South P.I.D. #. 27 -028 -24-43 -0016 MUNIC: Richfield COMP -SALE DATA: SALE DATE 3/92 SALE PRICE $85,000 SALE/SQ.FT. /GBA $73.02 SUBJECT -ASSMT DATA 1995 ASSESSMENT $96,800 ASSESSMENT /SQ.FT. $83.16 REMARKS: Comparable #3 is located on Milner's Pond. 3/94 7/94 12/94 $99,000 $90,500 $117,500 $81.48 $80.80 $108.00 SUBJECT - REVIEW APPRAISAL $100,000 $85.91 la 5/94 $104,000 $79.88 44- OF I At F-El.- it ", e 14V g. tAL- i ' 41 *Alk SUBJECT PROPERTY ADDRESS 7620 Bloomington Avenue South PI D# 35- 028 -24-43 -0044 Story Height Rambler Year Built 1954 Ground Floor Area 1364 sq. ft Gross Building Area 1364 sq. ft. Fireplaces 1 Central Air Conditioning Yes Bathrooms 1/1/0 Finished Bsmt. Area 500 sq.ft. Garage 2 car detached Porches / Decks Other / Comments The subject has a small kitchen. Lot Size 75 x 133 GRID - COMPARABLE DATA APPLICANTS NAME: Richard and Marilyn Nordin ADDRESS: 7620 Bloomington Avenue South PROPERTY ADDRESS: 7620 Bloomington Avenue South P.I.D. #: 35- 028 -24- 43-0044 MUNIC: Richfield COMP -SALE DATA: SALE DATE SALE PRICE SALE/SQ.FTJGBA SUBJECT -ASSMT DATA 1995 ASSESSMENT ASSESSMENT /SQ.FT. REMARKS: $97,000 $71.11 2/94 $107,500 $84.38 15 9/94 4/93 $107,500 $100,000 $87.97 $81.57 SUBJECT - REVIEW APPRAISAL $102,000 $74.78 a#'t'��`��7 l�J �� ;'1= ! \ \ ► xF,''l! jib . — °'' +•• 't ��G'a,"xF� -�`.- �'.�t -Y `�ti E •�°�... All �.R � y4 , APPRAISAL REPORT of an Apartment Building Garfield Hoversten 11 Unit Building 6413 Pleasant Avenue South Richfield, Mn. PID #27 -028- 24-24 -0017 Prepared for: City of Richfield Local Board of Review Prepared by: Daniel Salzwedel, SAMA Senior Appraiser Appraisal Date January 2, 1995 Name*- Subject Address: PID #: Building See: Site Size' S►ghe`t and Best Use. Current Use: Age: Overall Condition: SUBACT ICA . UNT TION 11 Unit Apa,tment Builduig 6413 Pleasant Avenue Nom° gionfield 27- 02$2¢24_0017 10 Bedroom Units 9,072 Sq. Ft. Apartment Apartment Acts; 1961 Fair APPg sm,SU MAgY soul Pailli, year Erse -'� $21,000 A $231, 1995 YOU 1995 $225,000 0 111 �y��tab soul pa-133i, $235, OW $21,364 markr a $240,000 CORRELATION AND CONCLUSION Property Description: The subject property is an average quality apartment building located in the north central portion of Richfield between Lyndale and Nicollet Avenues. It contains 9,072 square feet gross building area on three floors. There are 11 one bedroom units and the building was constructed in 1961. The property appears to have adequate maintenance but very little modernization Cost Approach: For a building of the subject's age and the total accrued depreciation, this approach is best served as a check on the other two approaches.. Income Approach: 1994 actual income and expense statements were requested, but only the totals were provided by the owners. Along with these figures I also used economic income and expense information that has been collected from the market place. Significant reliance was placed upon this approach in the final value conclusion. Market Approach: Five comparable sales were selected from the competing market area. After adjustments the comparable sales indicate a range of value from $19,778 to $21,995 per unit for the subject property. I have placed most weight on sale number 2 which is located adjacent to the subject property and identical except for the condition. Greatest reliance has been placed upon this approach in my final estimate of value. Conclusion and Final Opinion: Based on the above analysis, my final opinion of value for the subject property on January 2, 1995 is $2.35. My final opinion of value is higher than the current assessment and I would therefore recommend no change to the local board. k" - � J Daniel Salzw4l, SAMA Senior Appraiser C9 s� -R: S N 1411 - �_� ������. •. : ,,.•�..- 66TH ST w , f a � 2 � r W a ' i i I zz 4z a 540'.4 4' 6141t&,N LeV4' MEN -------------- - ----- 65tH $T AORTH STANDARD REPORT Property Owner HOVERSTEN Property Address: 6413 PLEASENT AVENUE SOUTH City, State, : RICHFIELD, MN. ZIP : 55423 Survey By : D.S. Survey Date : 05/02/95 Parcel Number z 27- 028 -24 -24 -0017 SECTION 1 Occupancy :Multiple Res (Low Rise) Class: Wood /Steel Frame Heat: 604 Hot Water Total Area : 9072 Number of Stories: 002.9 Section 1 Perimeter : 2 Story Height : 9 . Effective Age : 34 Cost as of: 01/95 .se Cost Exterior Wall Heating & Cooling Basic Structure Cost Superstructure Total Superstructure Cost $ 100 Rank: Average Area: 100% Clim: Building Page No: 1 Depr: Units Cost Total Building Cost New (Rounded) 46.98 426.,202 9,072 29.67 269,166 9,072 10.84 98,340 9,072 6.47 58,696 9,072 46.98 426,202 9,072 46.98 426,202 Basement: Building Cost New 9,072 46.98 426.,202 Extras: Replacement Cost New 9,072 46.98 426,202 Less Depreciation: Physical : <40.0 %> <170,481> Functional <10.0%> <42,620> External : <10.0%> <42,620> Depreciated Cost 170,481 Miscellaneous: Land 55,000 Total 9,072 24.85 225,481 unded to Nearest $ 1,000 225,000 ..ost data by MARSHALL & SWIFT al INCOME AND EXPENSE ANALYST 1995 11 UNIT APARTMENT 6413 PLEASANT AVE. S., RICHFIELD YEAR OF CONSTRUCTION: 1 961 # UNIT ACTUAL ECON TOTAL UNITS MIX _ RE WT 0 STUDIOS $0 11 1 BEDROOMS 415 54,565 0 2 BEDROOMS 0 $0 0 3 BEDROOMS 0 $0 0 GARAGES 0 $0 MONTHLY ADJ. RENT $4,565 TOTAL ANNUAL ADJ. RENT $54,780 TOTAL NUMBER OF UNITS 11 CAPITALIZATION PROCESS ECONOMIC POTENTIAL GROSS RENT (PGI) $54,780 LESS: VACANCY & COLLECTION LOSS % OF PGI 5.0% OTBER MISC INCOME 1.0% EFFECTIVE GROSS INCOME LESS: ANNUAL EXPENSES LESS: RESERVES FOR REPLACEMENT TOTAL ALLOWANCE ANNUAL NET INCOME RETURN ON PERSONAL PROPERTY $500 /UNIT @ NET INCOME TO REAL PROPERTY CAPITALIZATION OVERALL RATE 9.0% TAX RATE 41% TOTAL CAP RATE 13.7% CAPITALIZED VALUE OF PROPERTY CAPITALIZED VALUE PER UNIT ACTUAL ($2,739) $548 $52,589 $56,120 34% 200/2 36% ($19,918) ($20,936) $32,671 $35,184 ($825) ($825) 15% 13.7% 13.7% $232,000 $251,000 $21,091 $22,818 CORRELATED VALUE BY INCOME APPROACH $232,000 PER UNIT $21,091 as COPiFIDENTIPL Sales Comparison/Adjustment Grid 6413 PLEASANT AVENUE SOUTH. RICHFIELD Jame: 6601 & 6613 7115 & 7121 7420 & 7434 7427 & 7435 Address: 11th Ave So. Richfield 6401 Pleasant Richfield Chicago Richfield Oliver Richfield Penn Richfield 6413 Pleasant Richfield Year of Construction: 1960 1960 1961 1960 1960 1961 Condition: Similar Similar Similar Similar Similar Fair Number of Efficiencies: 0 0 0 0 0 0 Number of I Bedrooms: 22 11 12 20 20 11 Number of 2 Bedrooms: 0 0 10 1 0 0 Number of 3 Bedrooms: 0 0 0 0 1 0 Total Number of Units: 22 11 22 21 21 11 Number of Garage Stalls: 1 0 0 0 0 0 0 Ave. Rent (monthly): Per S. F. Per Unit $0.52 $415 $0.53 $414 $0.50 $425 $0.59 $420 $0.55 $420 $0.51 $410 Quality. Average Average Average Average Average Average men es: Pool)AC Balconies/patios Other (specify) Other (specify) no pooLfwall No 2.9 notwall No 2.9 Story no pooWvall No 2.9 Story no poolfwall NO 2.9 Story no pooMall NO 2.9 Story no­pooYWWF- No 2.9 Story Gross Building Area: 17,852 9,072 19,092 15,330 15,330 9,072 Ave. Unit Size (GBA/#Units): 811 .825 868 730 730 825 Land Area: 26,000 12,430 21,605 18,262 29,550 12,382 Sale Date: Aug-94 Sep-94 Feb-94 May-93 Jan-94 Sale Price: Cash Equivalent: $550,000 $550,000 $272,000 $272,000 $525,000 $525,000 $450,000 $450,000 $493,500 $493,500 CE Price/SF: $30.81 $29.98 $27.50 $29.35 $32.19 CE Price/Unit $25,000 $24,727 $23,864 $21,429 $23,500 GRM: 4.40 4.76 4.61 4.16 4.90 Capitalization Rate: 8.5% 8.6% 8.9% 10.4% 9.3% ..... ................ .. ....... . .......... ... ........ .......... ....... .. ... . .... ................ ........ . . ......... ................. ...... ............ .... . . . ....... , :, ....... ­ ....... ...... ... ............. *.,.,.:::;. , ....... ............ ........... ............ ....... . . . ............. ..... .......... ............... - .......... ............. ........ ... -.. - . ............................... . .......................... - ....... ........ ........ ... .... .............. ............... . ..... ........ .:: ... .... X ........... .. ......... ........ . ...... ........... ........... ............................. ........... ................................... .. Personal Prop. Per Unit Adj: $500 $500 $500 $500 $500 ... CE Price/Unit For R.E.: $24,500 $24,227 $23,364 $20,929 $23,000 Time Al. -7% Per Year* 0.00% 0.00% 0.00% 0.00% Time All CE Price/Unit For RE: $24,500 $24,227 $23,364 $20,929 $23,000 1.00 Location Adjustment 1.00 1.00 1.00 Age/Condition Adjustment: 0.90 0.90 0.90 .1.00 0.90 0.90 Quality Adjustment 0.95 1.00 0.95 1.00 1.00 Unit Size/Mix Adjustment 1.05 1.00 1.10 1.05 1.05 Amenities Adjustment 1.00 1.00 1.00 1.00 1.00 Garages & # Stories 1.00 1.00 1.00 1.00 1.00 Total Adjustment % 0.90 0.90 0.94 0.95 0.95 Assessment Date ..................... .. ........ ... ........ ... .. ........... ........... . ... . .... ................ ......... . . ................................... ............. 2 XWE-:. $ 1 ...... ........ . ........... .............. ...... - ...... .......... 7 ......... ..... .............. .....:.:...:..:<::::... Jan -95 Indicated Value: Per Unit $21,800 $239,800 Indicated Value: GRM 4.4 $242,000 Values Rounded to nearest thous. Indicated Value: Market Approach: 1094 $240,000 Q3 Val/ V`!/ OV Va.- The Ebbco Company 4930 West 77th S4ree; . Suite 0,200 . Edina, Minneso ..5u &25 FINK, 3 RANSMI i AL COVET: SHEET OFFICE FF:ONE: �? f� / FAIX P1 ONE: ( ) �G`5 FROM; OF=FICE PHONE: (6 i2) 835-Z553 835- -0,593 r Number of paces Cineludinc cover Sheet): _ IF YOU CO NOT RECEIVE T FiE T O s .L NUMS OF F„CEj SHOWN ABOVE, PLEASE GIVE SI =NDEq A CAL ► . c0MNtEN s: iMPOR i TAINT: This messece is intended only lcr the use Of the individual or er,41,1 to which it is addressed, arc' may contain irks mnati on that is priviFececf, coniCe-ritiGt and exempt from v stdcstire Under applimable'law. Is thc- ie dc-r cl this messGQB is nc tie intended ree -pie .L, or ld he empieyee or agent esocns;cle for ee!iverinc u�e message to ilia it'iLertded CC.:L+ieni. you ere i'�erby riC� iFa' u aL -i"ay CilS�c:iiIriirLiOrt, disf:reLTUC.: or C-npyinc or'il;is communication is st:ie:ly prohibited- If you have re wive tis c-- mmunim icn in error, pieEse : o[t5y us irnmediat by by teiephcne and return to cricinsti message to Us cL the above address vla the United odes PO= cI S� ^Jibe_ Thank you- . a The Ebbw Company 4930 West 77th Stmt Sulte #203 Edina, Minnesota 65435 L9 '� 117 exp f2, e, CONFOWbITIAL C West 770, Street 493 � . . Suite # 203 435 Edina, minnesa-ka 55 � l . - eoo AAA- f j �i ADDRESS PID# SUBJECT PROPERTY 6954 -561 st Avenue South 27- 028 -24-43 -0114 Sale Price $124,000 Sale Date 5/91 Story Height Rambler Year Built 1953 Ground Floor Area 1944 sq. ft Gross Building Area 1944 sq. ft. Fireplaces 1 Central Air Conditioning Yes (6956) Bathrooms 2/0/0 Finished Bsmt. Area 583 sq.ft. (6956) Garage 2 car detached Porches / Decks Other / Comments 6956 has a bedroom and family room addition with a fireplace. The subject also has newer vinyl siding. Lot Size 100 X 135 o� GRID - COMPARABLE DATA APPLICANTS NAME: Jeanne Lange ADDRESS: 69561st Avenue South PROPERTY ADDRESS: 6954 -56 1st Avenue South P.I.D. #: 27- 028 -24-43 -0114 MUNIC: Richfield COMP -SALE DATA: SALE DATE 5/91 7/94 6/94 8/92 3/93 SALE PRICE $124,000 $95,000 $109,900 $100,000 $120,900 SALE/SQ.FT. /GBA $63.78 $56.65 $63.89 $58.96 $62.84 ANNUAL RENT $13,800 $14,400 $12,000 $16,140 *GRM 6.9 7.6 8.3 7.5 SUBJECT -ASSMT DATA SUBJECT- REVIEW APPRAISAL 1995 ASSESSMENT $118,000 $121,500 ASSESSMENT /SQ.FT. $60.70 $62.50 ACTUAL RENT $500 ECONOMIC RENT $650 /$700 REMARKS: The subject is located in a single family neighborhood. Economic rent of the subject is estimated at $650 and $700. The value is determined by the following equation: $16,200(annual economic rent) X 7.5(GRM) _ $121,500 *Gross Rent Multiplier = Sale Price / Annual Rent • '� � ��` . w� . �' ` � � ray � c. i�,� u �. ���x i C s ��}- � _ �j�tb�k _.�', A Si:�S'L— � �� r `;�, ��� �t ,� � �' _ _ '� _ "f ' � s;. � 1 �; f �'vf� . � k �5�� � '�4 � �'w �. ,iY. �y ,.,E �,`t , t' �' 1. .�--- - -- � — _ X �i'. , -"4� .t. , i Z ,' ,... .. / 3.. •. � �� "�; _ +, i. r "' 3. i� i 1 � ��.� �..... �� C� t ..: i,. 4 yy, �W � .� ..� 5 s.� ��., .__ 3� ��" _ _ X �i'. , -"4� .t. , i Z ,' ,... .. / 3.. •. � �� April 17, 1995 County assessor 6700 Portland Av So Richfield MN 55423 Ref: Property ID #35- 028 -1413 0048 Dear Sir: I wish to appeal the real estate valuation assigned to my property at 7324 15th Avenue South for the year 1995. I have collected information about other properties similar to mine that were sold in the last year Address Price Date Sold 7300 15th Av So $93,500 4/93 7304 15th Av So 94,000 6/92 7144 14th Av So 92,300 7/94 7015 14th Av So 93,900 4/94 7444 16th Av So 95,000 3/95 7124 17th Av So 96,000 1/95 7310 15th Av So 96,600 7/94 I have also noted that the assessments assigned to me and my neighbors were arbitrarily increased by $3,000. I fail to see your substantiation for the increase of the valuation of my property. Even the valuation assigned for 1994 does not meet the criteria. However I did not contest that. It is requested that the data be reviewed and a reduction of the valuation be the result therewith. Sincerely,, William H Larson 7324 15th Av So Richfield MN 55423 (61 2 ) 869 3163 80 vl �w -w 60uIA-,, SUBJECT PROPERTY ADDRESS 732415th Avenue South PID# 35-028 -24-13 -0048 Story Height Rambler Year Built 1956 Ground Floor Area 1103 sq. It Gross Building Area 1103 sq. ft. Fireplaces 2 Central Air Conditioning Yes Bathrooms 1/0/1 Finished Bsmt. Area 662 sq.ft. Garage 3 car detached Porches / Decks 308 sq. ft. Screen Porch Other / Comments Lot Size 60 x 139 ,-3/ GRID - COMPARABLE DATA APPLICANTS NAME: William Larson ADDRESS: 732415th Avenue South PROPERTY ADDRESS: 732415th Avenue South P.I.D. #: 35- 028 -24 -13 -0048 MUNIC: Richfield i J COMP -SALE DATA: SALE DATE 7/93 SALE PRICE $98,900 SALE/SQ.FT. /GBA $89.66 SUBJECT -ASSMT DATA 1995 ASSESSMENT $101,000 ASSESSMENT /SQ.FT. $91.57 REMARKS: Comparable #1 has a pool. 4/93 7/94 6/94 $93,500 $96,600 $101,000 $84.76 $87.58 $96.74 SUBJECT - REVIEW APPRAISAL $101,000 $91.57 w,��- � cY fx j X y�-I r it a ; ` ,;•s _ �..�..���'x f2 +- .ter- ^wza+...��«•- MN.s�s� -.ate; April 24,1995 LocF1 Board of Review 6700 Portlexd Ave. S. Richfield, WIN 55423 . Regarding; Property Z D 33- 029 -24 -23 -0002 7208 Oliver Ave. S. Richfield, WIT 55423 Estimated Mrrket Value of 180,200 1995 value for tr.xes pPyable in 1996 T would Pet very nervous sperkinR Est P -public meeting Pn.d T ►ve been ill. in r.ssessor ivrs here end P letter cg,.r_e bFCk s27in their estimste wes correct. T still think the Pbove Pnount is too hizh. I fix-elly saved enou h money to hive now aidinP put of the house. This wPs necessPry due to the brd condition of the old siding. The lot is not Ps wide Ps some others. I have xo fire_olace, no central rih coAditioxi_gg. end -ao ?arse. I feel that if I were to sell, buyers would offer me less be- cause I do snot hPve the Pbove sdventa es. Thrnk you for your consideration in this matter. Sincerely, �tor�tP E. Preston 3 `� SUBJECT PROPERTY ADDRESS 7208 Oliver Avenue South PID# 33- 028 -24 -23 -0002 Story Height Rambler. Year Built 1959 Ground Floor Area 1152 sq. ft Gross Building Area 1152 sq. ft. Fireplaces 0 Central Air Conditioning No Bathrooms 1/0/0 Finished Bsmt. Area 300 sq.ft. Garage None Porches / Decks Other / Comments Asphalt driveway cracked and badly deteriorated. Lot Size 49 x 133 35 GRID - COMPARABLE DATA APPLICANT'S NAME: Norma Preston ADDRESS: 7208 Oliver Avenue South PROPERTY ADDRESS: 7208 Oliver Avenue South P.I.D. #: 33- 028 -24 -23 -0002 MUNIC: Richfield COMP -SALE DATA: SALE DATE 8/94 SALE PRICE $110,000 SALE/SQ.FT. /GBA $99.19 SUBJECT -ASSMT DATA 1995 ASSESSMENT $80,200 ASSESSMENT /SQ.FT. $69.62 REMARKS: The subject property added vinyl siding in 1994. 6/94 4/94 $113,000 $100,000 $95.12 $83.33 SUBJECT - REVIEW APPRAISAL $87,000 $75.52 r , rte WAO. `l zt _ _ I r t � Est cal CO OU , a Ac 7 4FiRgo Ir 6631 /Veawf -ov% Aw , So, �cAT1efs,1 M �/_S4Z 3 ;c 0700 Ave. So, F� 44A.1 144-�o ��d�uaTo t: � 1 eaY Revs QW��d av�: y t q s ►: p � v a }.: s: Q-re F/� IN a� d t No �< <ce ._ae�� f'o q �°�-�, 6s�i T�Qf c cwI Le 0 �ke+ va4 Is 33 _ a,�YeSS_ �$3 i �k - Vey Sp. _��� 6elteve TfAe _ -SAP AS L-3 t040 o:r- - fu_S. i GtQ -TI; Now.,, S�"�,S�� t L �S._ - -- 'V 0 L v) . r �P-'s jOT�oIn h taa4 .._Sh lR4S _ h la9G Newfovt„ Ave. so. i�NeYe0.���cYectS2 I' o YfaY fh crectsr- �'wo .y'r r- N(coseI7a i.�gr000 131- 000IQ1r000 ?00 3000 7 Qvo . S5� 3� 8S 07o 076 8 4 5'1 -700 ja�D00 t3 4 4 °7v 7.370 ►Y� 0 p i Kio v j +kP- YCLtlA 4-1; t1.a.k�_ r I2s _ AYE vP—Yl . I co 115f5- .E'A+'.Y . �o� exGLYypre, / l t PhCreo -Sa hY Tom 6331 Nevi to h was lrncr•ea s f b #s000 , A )494 a �� #7,000 .�f' rCow; 40 cVeas e Me- � �o peyl�b y Coo -ta-c y e0— ��i�� ��E p�Ae� I� s �hcrPa.SP,� v ffSOoo arm CS'1 l Wtct� e4C IviKY1�� -� ru tins •, CY lct 3 VoWe. (7744 Ugiw— g5�a ue ssaa Fo Y -fo xes [ o Y O,(es Fo%- ./ of X., !q� -- Pkym6le fayQ 6 f e, Payab (e. iJe scram fi o i - _Zn _1994 _.��► 19 q.5 Two __ Yea ��,creas e �7�5 X'e \ (�S �V�?• sc� .. _.. V Z$3rioo � $ I oaa �g'�" ©4� 0V,�2Yeov lvtc`rfQSe 9 600 _.... - — �' 3�Ooo 0W9- Ye aY VI cyeasQ d7o .78 0 _ l 3,8 'Iwo YeQY Shcycos e oho 13,400 _ �6 000 f�cro <w0 YPo`�r�c�e�S 2 �fl_ �r, 0 °lo? �•'�Q�o ►Y� 0 p i Kio v j +kP- YCLtlA 4-1; t1.a.k�_ r I2s _ AYE vP—Yl . I co 115f5- .E'A+'.Y . �o� exGLYypre, / l t PhCreo -Sa hY Tom 6331 Nevi to h was lrncr•ea s f b #s000 , A )494 a �� #7,000 .�f' rCow; 40 cVeas e Me- � �o peyl�b y Coo -ta-c y e0— ��i�� ��E p�Ae� I� s �hcrPa.SP,� v ffSOoo arm CY es;T ssaa he _Ye0.x j5+c!reC e Y !q� -- Oh ._Yew +��easQ °70 = - = ��.g07o M6o7 LCY Two __ Yea ��,creas e _ q. 3190 Ib 6 070 X1;7 a f.._.Yee, T;�o has e- oho � - �Ule ..Year��rec�s� _ _ ��_......_. �9130� f�cro <w0 YPo`�r�c�e�S 2 �fl_ �r, 0 °lo? �•'�Q�o ►Y� 0 p i Kio v j +kP- YCLtlA 4-1; t1.a.k�_ r I2s _ AYE vP—Yl . I co 115f5- .E'A+'.Y . �o� exGLYypre, / l t PhCreo -Sa hY Tom 6331 Nevi to h was lrncr•ea s f b #s000 , A )494 a �� #7,000 .�f' rCow; 40 cVeas e Me- � �o peyl�b y Coo -ta-c y e0— ��i�� ��E p�Ae� I� s �hcrPa.SP,� v ffSOoo arm r. 07060. -- ro.... --+he- yq&y� cyea5e-s.. 564Y &e ,e cnt r I . : - f p P-0-6- prop ey4yt - 7745- V\je iA 439.gQ6�-60l6) TP 6 f , , V cz�kh f - - a- st al. .A IA oV% AL ! Ag a<e - —�- V-. C4 e 52� la--Aj 4; Trway UJ&7 67 c-ice-a-s- wt VEL Yq fi au w/.Y-4- cj- e �As `v �u f f .e � Av �7 -4-ke Pm� r °u.c� f�� _�,af' i1i���lC�-� f/afu� and 4Ae, 2a�E �5�'�l�e �,YeS _o.h '�i1�2 ��3 f lV�u/7 —v� �-vP� Svy Y.7 qD SUBJECT PROPERTY ADDRESS 6831 Newton Avenue South PID# 28- 028 -24 -33 -0021 Story Height 2 Year Built 1964 Ground Floor Area 1188 sq. ft Gross Building Area 2052 sq. ft. Fireplaces 2 Central Air Conditioning No . Bathrooms 1/1/1 Finished Bsmt. Area 594 sq.ft. Garage 2 car attached Porches / Decks 262 sq. ft. Deck / 80 sq. ft. Open Porch Other / Comments Lot Size 85 x 135 qt GRID - COMPARABLE DATA APPLICANT'S NAME: Jim Zacher ADDRESS: 6831 Newton Avenue South PROPERTY ADDRESS: 6831 Newton Avenue South P.I.D. #: 28- 028 -24 -33 -0021 MUNIC: Richfield COMP -SALE DATA: SALE DATE 3/89 3/93 SALE PRICE $136,000 $158,500 SALE/SQ.FT./GBA $66.27 $70.44 SUBJECT -ASSMT DATA 1995 ASSESSMENT $141,000 ASSESSMENT /SQ.FT. $68.71 REMARKS: The subject and comparables #1 and #3 have hot water heat. 2/94 2/93 8/94 $118,000 $100,000 $134,000 $92.62 $68.03 $63.84 SUBJECT - REVIEW APPRAISAL $147,000 $71.64 q P, 6831 6726 6504 2920 7011 Newton Pillsbu Morgan W. 71stSt. Knox 2 Sto 2 Stoq 2 Story 2 Story 2 Sto 1188 1125 650 750 1196 2250 1274 1470 2099 2052 N 1964 1957 1947 1961 1941 Good Average Average Good ' rage 4 3 3 3 4 3 3 4 5 3 1,3/4 1,3/4 1,3/4 1 1,3/4 1 2 0 1 0 594 450 325 375 299 - :: �. -.•..: :�<�:�v.�;:.:: ?. ..:;:.. >; No No No No No {yr�v. 4 w :'.'?•. :, v 2 2 2 2 0 Yes Yes No Yes No • ;�: 528 500 280 440 220 30 GLP /120 OP 100 SCP 0 0 80 OP 0 0 0 0 262 -.. 69 x 130 60 x 135 60 x 135 , 60 x 135 �:ti. v }.•::;:5•'..ru:� }:_::Lv4. y..'+Y.•`.',- . ?:�u {{i..i ?. C ?SAL.?:. jw> u 85 x 135 COMP -SALE DATA: SALE DATE 3/89 3/93 SALE PRICE $136,000 $158,500 SALE/SQ.FT./GBA $66.27 $70.44 SUBJECT -ASSMT DATA 1995 ASSESSMENT $141,000 ASSESSMENT /SQ.FT. $68.71 REMARKS: The subject and comparables #1 and #3 have hot water heat. 2/94 2/93 8/94 $118,000 $100,000 $134,000 $92.62 $68.03 $63.84 SUBJECT - REVIEW APPRAISAL $147,000 $71.64 q P, .77, �71M fr7� '15 S '15 S Joel Swanson Pam Cutshall 7000 Oakland Ave. S. Richfield, MN 55423 April 27, 1995 Local Board of Review County Assessor 6700 Portland Ave. S. Richfield, MN 55423 Dear County Assessor and Local Board: We would like an opportunity to meet with the County Board of Equalization. We have researched other homes in the Richfield area and believe that valid arguments will support a reduction in our tax. We have attached a letter from a local Realtor who assisted us in locating statistical information. Our home has an estimated market value of $112,000 for taxes payable in 1996. In recent sales as indicated on the attached Competitive Market Analysis sheet the average EMV and sold price relationship is 86.63. Using $112,000 as an EMV and the ratio from above our home could expect to sell for approximately $130,000. The statistics show that homes with comparable features and square footages have not attained sales prices in this range. The attached figures suggest that our home would gain a sales price which is significantly lower than the sales figure from above. We understand there are many considerations put in to determining the value of a home. However, using the average cost per square foot of $59.76 for sold comparable homes, our home would have a sales price of $100,397. Thank you for your consideration on this request. I would have liked to appear in person; however, conflicts on the evening of May 1, has made this not possible. Sincerely, Jo wanson and Pam Cutshall Encl. qq PI.ofes.00119tl Itesll lis 1'81'S(»1Rl �•UJJIIJJIi111e111 March 29, 1995 Pam Cutshall and Joel Swanson 7000 Oakland South MN 55423 Richfield Dear Pam and Joel: lion you requested on homes in Richfield. Here is the mforma You will notice a recapitulation of the details. arket Turn to the last page, Y our home using calculations compare the homes tha "cia ion and Sales Price. Value, Square Footage, Taxes, App Tax and Market Value prices. These Y larger tax base of particular interest is the Property argument toward indicate that your home has an exceptional) larg two numbers These statistics present a valid than the other homes. our tax- reducing your base, thus reducing y If you need further data, please call. Yours truly, i Donna Seys Realtor r Edina Realty 612/427'17114 Edina Realty pager, 612/622.9808 REALTOR® Fax: 612/927'1675 0 4015 WEST 65TH BEET ENNA, MN 55435 COMPETITIVE MARKET ANALYSIS Prepared for Pam Cutshall & Joel Swanson Date March 28, 1995 Prepared by Donna Seys Agency Edina Realty, Inc. SOLD COMPARABLE PROPERTIES ADDRESS SOLD PRICE TAXES EMV SOFT 7104 BLOOMINGTON A $83,500 $1,177 $79,000 1,740 2313 70TH ST W $105,000 $1,481 $90,000 1,706 6839 16TH AVE S $94,575 $1,232 $79,000 1,580 6438 IRVING AVE S $96,903 $1,509 $91,000 1,730 6729 OAKLAND AVE S $107,670 $1,619 $95,000 1,638 7114 IRVING AVE S $115,188 $1,344 $85,000 1,708 Average Taxes vs. Sold Price 1.39 Average EMV vs. Sold Price 86.63 Average Cost per Square Foot $59.76 SUBJECT INFORMATION Address Property Taxes Est. Mkt. Value Square Feet District Year Purchased Purchase Price CALCULATION METHODS 7000 Oakland Ave South $1,866 $104,000 1680 378 1991 $99,970 Cost per Square Foot $100,402 Property Tax $134,077- *-Market Value $120,048'x" Adjusted Sale Price $100,472 Appreciation $109,635 PROJECTED PRICE (Average of nonzero method results) $112,926 4 SUBJECT PROPERTY ADDRESS 7000 Oakland Avenue South PlD# 35-028-24-22-0060 Story Height 1.5 Ground Floor Area 1238 sq. It Fireplaces 0 Central Air Conditioning No Bathrooms 2/010 Year Built 1959 Gross Building Area 1680 sq. ft. Finished Bsmt. Area 0 sq.ft. Garage None Porches / Decks 96 sq. ft. Deck Other / Comments The subject has been updated. Lot We 75 x 115 qr� GRID - COMPARABLE DATA APPLICANTS NAME: Joel Swanson & Pamela Cutshall ADDRESS: 7000 Oakland Avenue South PROPERTY ADDRESS: 7000 Oakland Avenue South P.I.D. #I: 35-028 -24-22 -0060 MUNIC: Riichfield COMP -SALE DATA: SALE DATE SALE PRICE SALE/SQ.FTJGBA SUBJECT -ASSMT DATA 1995 ASSESSMENT ASSESSMENT /SQ.FT. 2/91 4/94 $99,970 $101,500 $59.51 $64.44 $112,000 $66.66 REMARKS: The subject was a HRA sale. 4/93 5/94 3193 $120,000 $106,900 $108,900 $73.26 $86.07 $7626 SUBJECT - REVIEW APPRAISAL $113,000 $67.26 �8 +.ra IZp �ONi t �i Iry, • � .ems h. �7 z i t �`1`� ♦fit � i��.6 ' � • � 3".. sag —7- -- :r_a;= 5-F ! ADDENDUM Pam Cutshall and Joel Swanson Comps - Current Data 5a Sale Sale 1995 Bldg Address Date Price EMV Type Size 7104 Bloomington 12/94 83,500 85,000 Rambler 1134 2313 W 70th 11/94 105,000 97,000 Rambler 1231 6839 -16th * 94,575 85,000 Rambler 1080 6438 Irving * 96,903 100,000 Rambler 1026 2/95 99,900 100,000 Rambler 1026 6729 Oakland * 107,670 99,000 Rambler 1168 7114 Irving * 115,188 95,000 Rambler 1080 *No Certificate of Real Estate Value filed. The analysis provided by Donna Seys uses 1993 estimated market value, 1994 taxes, and late 1994 or early 1995 sales. Also, the square footage given includes finished basement. Prepared by Larry Miller, Principal Appraiser 5a �ENTERPRISE e RENT —A —CAR Group Headquarters April 28, 1995 Larry Miller . City of Richfield 6700 Portland Ave. S. Richfield, MN 55423 Dear Mr. Miller: Per our conversation today, I am forwarding a copy of an appraisal done at the property we are currently leasing in Richfield. Due to the significant difference in the market value from what our Valuation Notice reads and the appraisal reads, I would like for you to review the appraisal. I have attached a copy of a letter I have sent to the Local Board of Review entering our appeal. Please contact me with any questions. I can be reached at 628 -9000. I look forward to hearing back from you. Sincerely Kim Veil Business Manager KDV/kj s Enclosure '5/ 2484 North Cleveland Ave. Roseville, Minnesota 55113 612 - 628 -9000 ENTERPRISE .RENT -A -CAR Group Headquamrs April 28, 1995 City of Richfield Local Board of Review 6700 Portland Ave S. Richfield, MN 55423 To Board of Review Members: Our 1995 Valuation Notice listed the property we are currently leasing from Irene Magnuson as having an estimate market value of $190,000. Our property ID# is 35- 028 -24 33 0009 located at 616 E. 78th St. An independent appraisal prepared by Orion Appraisals estimated the value of this property as $162,000. A copy of the appraisal is currently being reviewed by Larry Miller. As lessees of this property, we would formally like to be entered as processing an appeal based on the significant differences in market value. Sincerel , Kim Veil Business Manager KDV/kjs cc: Larry Miller, City of Richfield 5c'�- 2484 North Cleveland Ave. Roseville, Minnesota 55113 612 - 628 -9000 1 'COUNTY ASSESSOR 6700 PORTLAND AVE S RICHFIELD MN 55423 1 CLASS MAIL ZIP + 4 BAR CODE U.S. POSTAGE PAID MPLS, MN. PERMIT NO. 3273 a'I EPIN COUNTY REAL ESTATE VALUATION NOTICE r , ' 9*VALU -FOR TAXES PAYABLE IN 1996 __... �':'"SEEREVERSE SIDE'FOR ADDTIONALINFORMATION •*` _, MUNIGIRAtiTY => RICHFIELD PROPERTYID 35- 028 -24 33 0009 ;` PROQ fG( TO APPEAL'YOLIR 'a 4 VAl7A'tC>N � COMM —LOW RATE NONHOMESTEAO First, read the back of this notice! Step 1: To discuss your Valuation Notice with an appraiser /assessor, call: �TIM4TED MARKE,IBO 861 -971 D �Vk , �. Step 2: Local Board of Review: You may appeal by appearing in person or OITED MARKET VALUE 1909000 sending a letter or representative to the board. The meeting will be held on o " ' ' - : MAY 19 1995 AT 7:00 PM JALIF.YING VALUE AT RICHFIELD CITY HALL )R IMPROVEMENTS Step 3: The County Board of Equalization: 4RKET VALUE You must appeal to the Local Board of Review to be eligible to appeal to the )R TAXATION 1909000 County Board of Equalization. Information on Hennepin County's Board of Equalization is on the back of this notice. IRENE C MAGNUSON 12800 16TH AVE S BURNSVILLE MN 55337-3745 lettet: eteluell�erlttiur. tettt�t :ertetestitstitttiettteituttt . 53 APPRAISAL REPORT of a Auto Rental and Leasing Facility Enterprise Rent A Car (Tenant) Stanley R. Magnuson Trustee (Owner) 616 781h Street East Richfield, MN 55423 P1D# 35 -028- 2433 -M Prepared for: City of Richfield Local Board of Review Prepared by: James R. Atchison, CAE, SAMA Senior Appraiser Appraisal Date January 2, 1995 SUBJECT IDENTIFICATION Name: Enterprise Rent A Car Subject Address: 616 78th Street East, Richfield PID #: 35- 028 -24 -33 -0009 Building Size: 1,779 Sq. Ft. - GBA, (Ines 676 Sq. Ft. Garage) Site Size: 24,200 Sq. Ft. Highest and Best Use: Commercial Current Use: Commercial ( Auto Rental Facility) Age: Actual: 1962 Overall Condition: Average APPRAISAL SUMMARY Cuffent Value Year P.EOp T-Ype Total Per Sq- Ft" 1995 CC $190,000 $106.80 Review Val jes Fn md- Year f-nst Ap=eh 1995 $214,000 Income rn na h $216,000 5 e--- 1b RecnmmendPd Value Total Per Sq- Ft $200,000 $112.42 Market ran Hach $196,000 CORRELATION AND CONCLUSION Property Description: The subject property is owned by the immediate family of Irene Celia Magnuson, with Stanley R Magnuson as the trustee. The property is leased to Enterprise Rent A Car for use as a local rental car agency. The property consists of a 24,200 sq. ft. land parcel on the north frontage road of Interstate 494 one parcel east of the intersection of I-494 and Portland Ave S. in the southeast quadrant of the city of Richfield. The improvements on the parcel consist of two separate buildings the first is a 1,103 wood frame building that is used as the office for the rental car business. This building has a 589 sq ft unfinished basement used for storage, mechanical , and includes two rest rooms. This building was constructed in 1%2 as a drive in restaurant and was used as a restaurant until 1988. The other building on the site is a 676 sq ft concrete block garage constructed in 1989 as a two stall car wash.. Special Issues: The parcel as stated is located on the north frontage road of I-494, which between 12th Ave. S. and Portland Ave. S. is a one way westbound street. Access to the parcel from westbound I-494 is via the 12th Ave exit and eastbound is via the Portland Ave exit. The parcel has excess land for a normal office building but for the current use is a valuable asset to the property due to the excess parking available for rental cars. The on site support staff stated that 70% of their business is with local car dealerships and auto repair or auto body business located in the immediate area in either Bloomington or Richfield. The balance of the business is as an off site rental agency for the MSP International Airport. Cost Approach: The cost approach considers the replacement cost new of the improvements less any forms of depreciation plus the value of the land at its highest and best use. Normally the cost approach is of only limited use due to the high percentages of depreciation, except in cases such as the subjects where a large portion of the total value is encompassed in the land. After depreciating the improvements by 55% still leaves a depreciated building value of $44,000. The $7.00 per sq. ft. land value is supported by comparable land sales of commercial properties locate along the I-494 strip. Due to the high land value, some weight is placed on the indicated value from the cost approach. In addition the cost approach supports the other approaches giving strength to the final value conclusion. Income Approach: The subject property is leased by Enterprise Rent A Car from the owners of the property the Magnusons. The lease commenced on May 1, 1989 for a term of six years or April 30, 1995, with an option to renew for three five year options. This would encumber the parcel with this lease until April 30, 2010. The lease payments are as follows: 5/1/89 to 4/30/90 $1,750 /month or $21,000 /year 5/1/90 to 10/31/92 $2,000 /month or $24,000 /year 11/1/92 to 4/30/95 $2,250 /month or $27,000 /year This is the payment schedule for the first six years of the lease. NO C�4 TIL The option to renew is for three additional five year periods. The respective option periods and corresponding payments are as follows: First Option Period 511/95 to 10/31/97 $2,500 /month or $30,000 /year 11/1/97 to 4/30 /00 $2,750 /month or $33,000 /year Second Option Period 5/1/00 to 10/31/02 11/1/02 to 4/30/05 Third Option Period 511105 to 10/31/07 11/1/07 to 4/30/10 $3,000 /month or $36,000 /year $3,250 /month or $39,000 /year Fair Market Rent as of 511105 Fair Market Rent as of 11/1/07 The lease calls for the tenant to pay all costs associated with the property including all repairs, maintenance, insurance, and real estate taxes. This would also be known as a "net lease ". In analyzing the payment schedule the lease appears to be at market rates for similar properties, based on the actual lease an income approach was performed measuring the income stream to the land lord. The vacancy and collection loss and the management and miscellaneous expense are derived from the market as what a typical investor could expect. The capitalization rate is also derived from the market and considers the return of and on the investment as well as the associated risks of investing in commercial real estate. This approach provides a strong indicator of value and was given the greatest weight in the final value conclusion. Market Approach: Numerous sales of comparable properties were analyzed for this approach and the three most comparable are included in this approach. All of these comparable sales are located in the city of Richfield. Adjustments were made for location, land to building ratio, age /quality/condition, and basement area. The market approach provides a good indicator of value and strong weight was placed on this approach in the final value conclusion. Conclusion and Final Opinion: Based on the aforementioned information and analysis with the most weight on the income approach, my conclusion and final opinion of value for the subject property on January 2, 1995 is $200,000. s R. Atchison, CAE, SAMA Date Senior Appraiser I T L v (31) - (zn n5) :X Y t ~ J (70) 9 (2Q O6) f Y c U61 (.2) (29) 4251 4. 5171 •r + (76i E - _ 1 Y (( NS) (N) (45) (26) (27) SM) r A A I A qRI Fd W �... ala a � n (75) @ (621 N (7A) (64 i (7S) l60) Y � 4 S;A;E a l9( ewr O.MW. Me, 000"No "'as 3t loo .4+- 118 2// ■ NO lltvo -24" *:• 9 � .• ,wt Y�. ! i 1 Yom. .f'�,. ' 6 �Y � �' ���i�l'','wP y, � g " �. te. rY ;. „� _ 5,• -_n M +ter j�� ��wY 5'. /. ! 'Ji-r _ �'j , ♦' - 's. .irw�k {. ;4 .s' .M ,'i. BMW- F fi 5_ w t s� : w W TTI AV fi t i .:� j �; x' LLLL ° .s� a" �' " '.. -,� � �:'^ -',f -a. r••ta; .�: '.t�e+)kF � y,�,M, 'a. • � �.:K ,_ �lS 4 Yj' . i � t 1 . � �. +.( b Y' "'x Z tot .:� • a�a' � . � � 7 Mn � S ' ���`'� .�L ;�,� � � . s ..�' �3, � �r �+•- -- �' !':.: ' Via•' ,'t s,•� 3f� � }'r � � 'Q � � tit �� 's wt _ � ;s � ,,,4?+ SAL e; *ti: Ar per' s^'� 4w � • t- 1 - •••+ptip�+�aMl+trtr xN.r•MllC i4XN.wY. +r�N.�n, Yom' ..ZtM•4.- i-� ..drQ.(�.:Yx'�e.�;�+��IL�•. *�•,.ns.w.i� " -� ��' n��N•-Lw,°�°`��, t�fh;4• ±�.yt�Y„xry '�'- n.N� "�'.yyw.�.0 '� ": .s•,�•� °!�« {^ ";±�...+ .: .i`�-i}.. .s:�w" 'o'.. __ is ......so t � . +� s..l, � "s' =��^ _ . , u 't �[ s %c :'ti..*�7b+f�•« �2. WON �' �.' 'p .,a► r. t 7" i STANDARD REPORT Property Owner STANLEY R. MAGNUSON TRUSTEE Property Address: 616 78TH ST EAST City, State, RICHFIELD, MN ZIP 55423 Survey By JRA Survey Date 05/02/95 Parcel Number 35- 028 -24 -33 -0009 SECTION 1 Occupancy :Office Building Class: Wood /Steel Frame Wall: 896 Stud Walls -Wood Siding Heat: 611 Package Unit Total Area : 1103 Number of Stories: 1 .0 Section Perimeter : 149 ,Story Height : 10. Effective Age : 25 % 100 Rank: Average Area: 100 Rank: Area: 100 Clim: Building BASEMENT Occupancy: Storage Warehouse Type: Unfinished Area: 585 Rank: Average tuber of Level: 1 pth per Level: 7 . Perimeter: 100 Cost as of: 01/95 Base Cost Exterior Wall Heating & Cooling Basic Structure Cost Superstructure: Total Superstructure Cost Basement: Unfinished Building Cost.New Extras: GARAGE 26 X 26 =676 SQ FT Replacement Cost New Tess Depreciation: iysical junctional Page No: 1 Depr: Depr: Units Cost Total 21.28 12,449 (Rounded) 71.06 78,378 1,103 46.31 51,080 1,103 12.35 13,622 100 12.27 1,227 1,103 59.77 65,929 1,103 59.77 65,929 585 21.28 12,449 1,103 71.06 78,378 20,000 1;103 89.19 98,378 <25.0 %> <24,594> <10.0 %> <9,838> External Depreciated Cost <20.0 %> Page No: 2 <19,676> 44,270 Miscellaneous: Land 1691400 Total 1,103 193.72 213,670 Rounded to Nearest $ 1,000 214,000 Cost data by MARSHALL & SWIFT '� LEASE ANALYSIS -� ENTERPRISE RENT -A-CAR 616 78TH ST. E., RICHFIELD INCOME $2,250 MONTH (11/1 /90 to 4/30/95 Lease Period) POTENTIAL GROSS INCOME VACANCY & CREDIT LOSS 5.00% EFFECTIVE GROSS INCOME EXPENSES MANAGEMENT & MISC. 5.00% NET OPERATING INCOME ALIZATION OVERALL RATE 11.00% TAX RATE 0.26% TOTAL CAP RATE 11.26% LAND SIZE BLDG SIZE CAPITALIZED VALUE OF PROPERTY CAPITALIZED VALUE PER SQUARE FOOT (BUILDING) CAPITALIZED VALUE PER SQUARE FOOT (LAND) cok�. �- 1,779 $27,000 $27,000 $1,350 $25,650 $1,283 $24,368 11.26% $216,000 $121.42 $8.93 SALES COMPARISON APPROACH PID 35-028 - 2433-0009 1.00 1.00 PROJECT NAME ENTERPRISE RENT A CAR 1.25 ADDRESS 616 78TH STREET EAST, RICHFIELD LAND /BLDG AREA RATIO ZONING C-2, GENERAL COMMERCIAL DISTRICT 1.20 AGE/QUALITY /CONDITION OWNER STANLEY R. MAGNUSON TRUSTEE 1.20 1.00 PROPERTY TYPE AUTO RENTAL AND LEASING 1.00 1.00 1.00 SUBJECT COMP 1 COMP 2 COMP 3 PROPERTY TYPE AUTO RENTAL SERVICE OFFICE OFFICE ADDRESS 616 78TH ST E 6345 CEDAR AVE 6425 CEDAR AVE 7700 LOGAN AVE RICHFIELD RICHFIELD RICHFIELD RICHFIELD NET C.E. PRICE $103,500 $118,000 $134,500 SALE DATE AWW Oct-92 Feb-95 PRICE [/I FFA $71.88 $63.99 $84.91 LOCATION GOOD INFERIOR INFERIOR EQUAL LAND AREA 24,200 6,400 12,800 8,710 LAND /BLDG 13.60 4.44 6.94 5.50 YEAR BUILT 1962 1951 1950 1960 QUAL/CONDITION AVERAGE INFERIOR INFERIOR EQUAL FFA 1,779 1,440 1,844 1,584 TFA 1,779 1,440 1,844 1,584 BASEMENT 589 0 0 1,584 GBA WITH BASEMENT 2,368 1,440 1,844 3,168 CEILING HEIGHT 10 10 7 9 ADJUSTMENTS TIME 0.00% 1.00 1.00 1.00 LOCATION 1.25 1.25 1.05 LAND /BLDG AREA RATIO 1.10 1.10 1.20 AGE/QUALITY /CONDITION 1.10 1.20 1.00 SIZE FFA 1.00 1.00 1.00 OCCUPANCY 1.00 1.00 1.00 BASEMENT 1.02 1.02 1.00 CEELING HEIGHT 1.00 1.00 1.00 NET ADJUSTMENT 1.54 1.68 1.26 ADJ PRICE 14 FFA $110.89 $107.70 $106.99 EST PRICE INDICATED VALUE > €< < '� oo &3