06-01-1983 Board of ReviewCITY OF RICHFIELD
BOARD OF REVIEW
June 1, 1983
Mayor John Hamilton called the meeting of the Board of Review to order at
7:00 p.m.
Beard members present included Council Members Priebe, Bunce, Rirsch, Hassenstab,
Ludeman and Hamilton, and resident members included Mr. Larry Emond and Mr. John
Janski. Staff members present included City Manager Karl Nollenberger, Assistant
City Manager/Director of Administrative Services Ron Rankin and Assessor Dick Becken.
A list of those property owners who had contacted the assessor's office
requesting appearance before the local board of review had previously been distributed
to the board members.
Mr. Edward Calvin, .7038 James Avenue South, 33-21-0038, addressed the board
indicating he believed the value established for his residence was too high. Mr.
Calvin said he did not recall a visit by the assessor to reappraise the property.
Mr. Calvin said he owned a modest home with a few significant improvements. City
Manager Nollenberger stated that because of an inability to reach Mr. Calvin, it
had not been possible for the assessor to physically review the property and that
if such a review could take place, it's likely that the value could be adjusted.
Motion by Hassenstab, seconded by Bunce to have the assessor reevaluate this
property and report back to the board before the board reconvens on June 13.
All ayes - Carried.
Mr. Garfield Hoversten addressed the board with regard to the apartment
buildings owned by him and located at 7420 Oliver Avenue South, 33-32-0021, 7000 Cedar
Avenue South, 33-32-0021, and 6413 Pleasant Avenue South, 27-24-0017. Mr. Hoversten
indicated that he had experienced a substantial market value increase for these
buildings over the last several years, despite the fact that he believed the values
had been depressed due to low net operating income from the properties. He also said
that because of the age of the buildings, major maintenance expenses and other costs
Board of Review -2- June 1, 1983
detract from their value. Assessor Richard Becken reviewed the information used
for the valuation of the property, indicating that the value had increased by 5%
from 1982 to 19.83 for the property on Oliver Avenue. The city manager recommended
that this appeal be deferred to the board's reconvening on June 13, 1983, so that
Mr. Hoversten could provide additional income information to the assessor.
Motion by Hassenstab, seconded by Kirsch to have this property reevaluated by
the assessor prior to the board reconvening on June 13.
All ayes - Carried.
At this point the city manager addressed the board, clarifying the role of
the local board of review and the appeal process for property valuations.
Mayor Hamilton asked if Dale and Kate Schwie were present and they were not.
Mayor Hamilton asked if Perry Ohnstad was present and he was not.
Mr. Wilmot Holtzman, 7300 Knox Avenue South. 33-24-0039, addressed the council,
indicating that he did not believe his property was in good condition and that the
value established by the assessor was too high. Mr. Becken stated that there had
been an $800 increase in the valuation and the appraiser had visited the property
in the fall of 1981. Mr. Becken reviewed a listing of comparable properties for
the board members. Mr. Janski asked about the terms of sales and how various
financing techniques were taken into account establishing valuations. Mr. Becken
responded that the type of sale of this property had not been noted. Ron Rankin
commented that general valuation increases had been kept at a lower rate than
in the past in order to take into account the additional costs of various types
of financing. Council Member Ludeman asked about the status of remodeling Mr.
Hoitzman's house.
Motion by Hassenstab, seconded by Bunce to have the assessor evalute this
property and report back to the board prior to its reconvening on June 13, 1983.
All ayes - Carried.
Board of Review -3- June 1, 1983
Mr. Donald Sorenson, an attorney representing John Bittner regarding property
at 6237 Russell Avenue,. 29-11-OOSS, addressed the board. Mr. Sorenson said the
purchase of property had been finalized during the past December and January, and
although the 1983 estimated market value had been set at $85,000, the purchase
price was $81,000 including approximately $9,000 in personal property. Mr. Sorenson
further stated that taking into account the sales ratio studies of the Minnesota
Department of Revenue and the financing costs of the transaction, the value of the
property should be $60,500. Discussion ensued. Mr. Emond commented on the appeal
based on his familiarity with the property and the sale.
Motion by Priebe, seconded by Ludeman to sustain the assessor's value of
the property owned by John E. Bittner, 6237 Russell Avenue South.
All ayes - Carried.
. Dr. William Renneke appeared regarding his property at 7533 Sheridan Avenue
South, 32-41-0050, and made a detailed presentation concerning comparisons of property
value. Dr. Renneke distributed information concerning the valuation of comparable
properties that he had identified. Dr. Renneke indicated that he believed the
value should be set at $96,000 instead of the 1983 estimated market value of $97,300
set by the assessor.
Mr. Dick Becken reviewed information on the subject property and comparables.
Discussion ensued, with board members asking questions concerning the value of the
office portion of the property.
Motion by Ludeman, seconded by Bunce to sustain the assessor's value for this
property. Discussion followed and the motion and second were withdrawn.
Motion by Bunce, seconded by Priebe to reduce the 1983 estimated market value
of this property to $96,000.
Poll of votes: Ayes - Bunce, Kirsch, Ludeman, Priebe, Hamilton. Nays -
Hassenstab. Carried.
Board of Review -4- June 1, 1983
Mr. Richard Ziemer appeared regarding property he owned at 6400 Vincent Avenue
South, 29-13-0065, and his residence at 6229 Xerxes Avenue. Mr. Ziemer described
the-building which was constructed in the ~1880's and its current condition. He said a
1983 estimated market value of $43,100 had been set but upon review by the assessor,
this has been offered to be adjusted to $38,600. Mr. Ziemer believed this amount
was still too high and it should be modified due to the age and depreciated state
of the building. Information was presented that the property had recently been
rented for $325 per month.
Mr. Hassenstab stated that he believed the structure should be valued at a
lower amount.
Motion by Hassenstab, seconded by Kirsch to adjust the market value of
6400 Vincent Avenue to $33,000.
All ayes Carried.
Mr. Ziemer then addressed the board regarding a double bungalow at 6227-6229
Xerxes Avenue South. Since this matter had just been recently brought to the
board's attention it did not have information to address this matter. Mr. Ziemer
said he was concerned about discrepancies among the valuation established for
buildings along Xerxes which were all basically identical.
Motion by Kirsch, seconded by Hassenstab to defer this matter for a report
from the assessor prior to reconvening June 13, 1983.
All ayes - Carried.
Sherry Hoffman appeared to address the board concerning property owned at
7120 Portland Avenue South. Since information was not available concerning this
property or comparable properties, it was moved by Ludeman, seconded by Hassenstab
for an assessor's report prior to reconvening on June 13, 1983.
All ayes - Carried.
it
Board of Review
-5-
June 1, 19$3
The meeting of the local board of review was continued to an item of
business at the regular city council meeting of June 13, 1983, and it was
indicated to the property owners present that items deferred at this evening's
meeting would be considered by the board at that time. The and adjourned to
the continued meeting of June 13, 1983,at 9:30 p.m
Date Approved: June 13, 1983
Ronald Rankin Acting City Clerk
Mayor
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Karl Nollenberger City Manager