5-7-90 Bd of Review10a R I
CITY OF RICHFIELD, MINNESOTA
Council Letter No. 120
Agenda May 7, 1990
Issue Statement:
Reconvening of the 1990 Board of Review.
Background:
On April 30, 1990 the 1990 Board of Review was continued to 7:00
p.m. May 7, 1990. The continuance was to provide staff an
opportunity to prepare additional information on four appeals
presented on the evening of April 30. The Board directed
Hennepin County Principal Property Appraiser, Larry Miller, to
prepare additional background before May 7.
Recommended Motion:
Reconvene the Board of Review at 7:00 p.m. May 7, 1990 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
April 30 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 April 30, 1990.
Alternative Recommendation:
None.
Discussion/Decision Mode:
It would be desirable to conclude the proceedings of the Board of
Review on May 7, 1990.
Respectfully submitted,
J mD. Prosser
C Manager
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APPEARANCES FOR RECONVENED
Local Board of Review
1. Donald Erickson - Attached
2. Steven Fiterman - Attached
3. Curt Madsen - Attached
4. William Jaunty - Review appraisal of $89,700 accepted
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E
Information submitted to the City Council regarding income
valuation is classified as confidential data under the Minnesota
Data Practices Act.
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CONFIDENTIAL
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7413 Penn Avenue South
33-028-24-32-0022
Description
#Units 11 - 1 Bedroom Apartments
GBA 7665 square feet
• Potential Gross (From actual rents) $ 50,580
Vacancy Allowance (5%) - 2,529
Effective Gross Income $ 48,051
Expenses (34%) -16,337
Net Operating Income $ 31,714
Capitalization Rate (7.0%) + Tax Rate (3.7%) = 10.7%
Indicated Value by Income Approach: 31,714 .1 .107 = $296,400 (rounded)
Gross Rent Multiplier Approach: 50,580 x 6.5 = $328,800 (rounded)
Value by Unit = 11 units @ 30,000 = $330,000
Value by Square Foot = 7665 x 43.00 = $329,600
1990 Estimated Market Value $300,000
Recommendation: No Change $300,000
Addendum:
Owner's Net Operating Income = 31,327 .107 = $292,800 (rounded)
Owner's Gross (Effective Gross + 5$ vacancy est.)
50,605 x 6.5 = $328,900 (rounded)
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CONFIDENTIAL
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7116 Cedar Avenue South
35-028-24-11-0015
Description
#Units 7 - 1 Bedroom Apartments
GBA 4536 square feet
• #Garages 7
Potential Gross (From actual rents) $ 31,980
Vacancy Allowance (5$) - 1,599
Effective Gross Income $ 30,381
Expenses (34%) -10,330
Net Operating Income $ 20,051
Capitalization Rate (7.0$) + Tax Rate (3.7$) = 10.7%
?R l -3
Indicated Value by Income Approach: 20,051 ; .107 = $187,400 (rounded)
Gross Rent Multiplier Approach: 31,980 x 6.0 = $191,900 (rounded)
Value by Unit = 7 units @ 28,000 = $196,000
Value by Square Foot = 4536 x 42.00 = $190,500
1990 Estimated Market Value $203,000
1990 Review $191,500
Recommendation: No Change $191,500
Addendum:
Owner's Net Operating Income = 24,600 11 .107 = $229,900 (rounded)
Owner's Gross (Effective Gross + 5% vacancy est.)
32,580 x 6.0 = $195,500 (rounded)
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BR 1-4
CONROENTIAL
6345 Lyndale Avenue South
27-028-24-22-0084
Description
#Units 22 Efficiencies
GBA 13601 square feet
• Potential Gross Income (From owner) $ 86,119
Vacancy Allowance (5%) - 4,306
Effective Gross Income $ 81,813
Expenses (34%) -27,816
Net Operating Income $ 53,997
Capitalization Rate (8.5$) + Tax Rate (3.7t) = 12.2$
Indicated Value by Income Approach: 53,997 ;-.122 = $442,600 (rounded)
Gross Rent Multiplier Approach: 86,119 x 5.5 = $473,600 (rounded)
Value by Unit = 22 units @ 22,000 = $484,000
Value by Square Foot = 13601 x 35.10 = $477,000 (rounded)
1990 Estimated Market Value $460,000
Recommendation: No Change $460,000
Addendum:
Purchased November 1986 for $500,000
Owner's Net Operating Income = 61,609 = .122 = $505,000 (rounded)
Owner's Gross Income 86,120 x 5.5 = $473,700 (rounded)
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RICHFIELD APARTMENT SALES
COMPARABLE # 1
Munic: Richfield
Address: 7544 Oliver (7 units)
COMPARABLE # 2
Munic: Richfield
Address: 2215'W 74th (11. units)
COMPARABLE # 3
Munic: Richfield
. Address: 7444 Oliver (11 units)
COMPARABLE # 4
Munic: Richfield
Address: 6600 Chicago (17 units)
4*
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SUBJECT PROPERTY
Address 6632 11th Avenue South
PID 26-028-24-31-0021
• Story Height 1.25 Baths 1 Full
1st Floor Area 1100 Baths 0
Gross Building Area 1375 Finished Basement 220 saft
Year Built 7950 Walkout No
Condition Average Fireplace i
1st Floor Rooms _L/R, F,/R, Kitchen, Air Conditioning Central
2 Bedrooms Garage 484 saft Detached
2nd Floor Rooms 1 Bedroom Porches/Deck None
Bedrooms 3 Bedrooms Lot Size 75x130
Comments: Remodeled Kitchen
B9 /-$
GRID - COMPARABLE DATA
APPLICANT'S NAME:
DRESS:
PROPERTY ADDRESS:
P.I.D. #:
MUNIC:
TYPE OF BLDG.:
STORY HEIGHT:
1ST FLOOR AREA:
GROSS BLDG. AREA:
YR. OF CONST.:
CONDITION:
1ST FL. ROOMS:
2ND FL. ROOMS:
BEDROOMS:
BATHS:
HALF BATHS:
fAN. BSMT. SQ.FT.:
LKOUT:
FIREPLACE:
AIR COND:
GARAGE AREA.-so. FT . :
PORCH AREA:
LOT SIZE:
Curtis Madsen
6632 11th Avenue South
6632 11th Avenue South
26-028-24-31-0021
Richfield
SUBJECT 6926 10th
PROPERTY COMP #1
Expansion
1.25
1100
1375
1950
Avg
5
1
3
1 Full
0
220
No
1
Expansion
1.25
1092
1287
1951
Avg
4
1
3
1 =. ? 3/:4
0
550
No
2
Yes
484 Det
0
75x130
COMPS-SALE DATA:
SALE DATE ,
SALE PRICE
SALE/SQ.FT.
SUBJECT - ASSESSMENT DATA
1990 ASSESSMENT 92,100
ASSESSMENT/SQ.FT. 66,98
No
396 Det
0
75x131
10!89
99,500
77.31
REMARKS: Subject and Comp. #1 have updated kitchens.
Comps. #2 & #3 have standard kitchens.
6712
Clinton -
COMP #2
Expansion
1.25
1139
1356
].943
Avg
5
1
3
1 Full
0
340
No
1
No
580 Att
0
75x135
9/89
88,000
64.90•
6744
...Elliot...
COMP #3
Expansion
1.25
982
1227
1948
Avg
5
1
3
1 Full
1
490
No
1
No
308 Det
264 sqft Deck
70x130
11/89
87,000
70.90
COMP F4
COMPARABLE # 1
Munic: Richfield
Address: 6926 10th Avenue South
• --
COMPARABLE # 3
Munic: Richfield
Address: 6744 Elliot Avenue South
COMPARABLE # 2
Munic: Richfield
Address: 6712-Clinton Avenue Sou
COMPARABLE # 4
Munic:
Address:
3R i-/b
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William and Jamie Jaunty
7101 Logan Avenue South
Richfield, MN 55423
PID ##33-028-24-21-0113
Previous 1990 Estimated Market Value $95,600
Review Appraisal $89,700
Recommendation for Review Appraisal (accepted by owner)
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