05-09-1988 Board of ReviewCITY OF RICHFIELD, MINNESOTA
1988 BOARD OF REVIEW CONTINUATION MEETING
May 9, 1988
MEMBERS PRESENT: Steven Quam, Mayor; Edwina Garcia; Michael
Sandahl; Martin Kirsch; Ivan Ludeman;
Lawrence Emond; and John Janski.
STAFF PRESENT: James Prosser, City Manager; Steven Devich,
Administrative Services Director; Thomas
Ferber, City Clerk; and Larry Miller,
Hennepin County Principal Appraiser.
The meeting was called to order by Mayor Quam at 5:30 p.m.
Ite^ #1 APPEAL OF DON AND MARY ERICKSON, 7116 CEDAR AVENUE
SOUTH. P.I.D. 35-028-24-11-0015
Don and Mary Erickson appealed the EMV of this property on
the basis of per unit value comparison, operating expenses, and
income.
Larry Miller, Hennepin County Principal Appraiser, reviewed
the cost, market, and income approach data used in the
determination of the 1988 EMV of 192,400 for this property.
Board Member Janski stated disagreement with the
capitalization rate and expense ratio used by Mr. Miller.
Board Member Ludeman stated the operating expense percentage
used should be higher than 34~.
M/Sandahl, S/Ludeman to reduce Estimated Market Value of the
ro ert located at 7116 Cedar Avenue South P.I.D. 35-028-24-11-
015 from 192,400 to 186,400.
Motion carried 4-3. (Kirsch, Garcia, Janski, opposed)
Item #2 APPEAL OF JIM MARTY, 7428 LYNDALE AVENUE SOUTH.
P.I.D. 33-028-24-41-0004
Larry Miller, Hennepin County Principal Appraiser, stated he
had reviewed this property and adjusted the EMV from $525,200 to
$504,000. He stated Mr. Marty did not wish appeal the revised
EMV.
Board of Review Meeting Minutes
-2- May 9, 1988
M/Quam, S/Garcia to confirm the assessor's determination of
$504,000 as the Estimated Market Value of the property located at
7428 Lyndale Avenue South. P.I.D. 33-028-24-41-0004.
Motion carried 7-0.
Item #3 APPEAL OF JUDY SARFF, 6745 ELLIOT AVENUE SOUTH.
P.I.D. 26-028-24-31-0082
Judy Sar"f f, 6745 Elliot Avenue South, appealed the EMV of
this property on the basis of comparable properties she
presented, information from the MLS Residential Real Estate -
Report, and that the EMV was in excess of what she believes the
property would sell for.
Larry Miller, Hennepin County Principal Appraiser, reviewed
comparable properties.
M/Quam, S/Sandahl to sustain the assessor's determination of
85,800 as the Estimated Market Value of the property located at
745 Elliot Avenue P.I.D. 26-028-24-31-0082.
Motion carried 7-0.
Item #a APPEAL OF JOHN PREST, PARK INN HOTEL, 7640 CEDAR AVENUE
SOUTH. P.I.D. 35-028=24-a4-000a
Jim Prest, representing owner John Prest, appealed the EMV
of this property on the basis of income, operating expenses, and
occupancy figures. He suggested the EMV be reduced to
$1,250,000.
Larry Miller, Hennepin County Principal Appraiser, reviewed
the cost, gross income, market data, and net income
capitalization approaches used to determine the EMV of this
property. He stated after this review, he recommended that the
EMV be reduced from $1,750,000 to $1,580,000.
M/Quam, S/.Garcia to sustain the assessor's determination of
$1,580,000 as the Estimated Market Value of the property located .
at 7640 Cedar Avenue South. _P.I.D. 35-028-24-44-0004.
Motion carried 7-0.
Board of Review Meeting Minutes
-3- May 9, 1988
Item #5 APPEAL OF RALEIGH NELSON, 140 EAST 78TH STREET.
P.I.D. 34-028-24-43-0005
Raleigh Nelson, owner of the Burger King Restaurant, 140
East 78th Street appealed the EMV of this property on the basis
of decreasing sales and profit figures.
Larry Miller, Hennepin County Principal Appraiser, reviewed
the cost, market, and income approached used to determine the EMV
of this property.
M/Sandahl, Kirsch to sustain the assessor's determination of
$550,000 as the Estimated Market Value of the property located at
140 East 78th Street P.I.D. 34-028-24-43-0005.
Motion carried 7-0.
1
Mayor Quam suggested that the Board of Review adjourn at
this time and reconvene after the regular council meeting.
M/Garcia, S/Ludeman to adjourn the meeting and to reconvene
the 1988 Board of Review at the conclus on o the re ular cit
counc 1 meeting.
Motion carried 7-0.
The meeting was adjourned at 6:50 p.m.
' Mayor Quam reconvened the Board of Review Meeting at 9:02
p.m.
Item #6 APPEAL OF GARFIELD HOVERSTEN, 6520, 6528, 7244 CEDAR
AVENUE SOUTH. P.I.D. 26-028-24-14-56,
P.I.D. 26-028-24-14-0055, P.I.D. 35-028-24-14-0074
Garfield Hoversten appealed the EMV of these apartment
properties on the basis of operating expenses, age, and rental
income.
Pat Smith, Merrill Lynch Realty, reviewed his experience in
attempting to market these properties. He reviewed the operating
expenses and income of the properties. He stated that the market
conditions and tax law climate warrant much lower EMV's for these
properties.
Board of Review Meeting Minutes -4- May 9, 1988
Larry Miller, Hennepin County Principal Appraiser, reviewed
the cost, market, and income approaches used to determine the
EMV's for these properties.
Board Member Janski discussed capitalization rates and
expense ratio's as they relate to this type of property.
John Hoversten disputed the 396 vacancy ratio used by Mr.
Miller. Mr. Hoversten reviewed cost estimates of repairs for the
buildings.
The Board discussed lowering the EMV's of these properties
by approximately 3916.
M/Ludeman, S/Sandahl to reduce the Estimated Market Value of
the ro ert located at 6520 Cedar Avenue South P.I.D. 26-028-24-
' 14-0056 from 322,400 to 318,300; to reduce the Estimated Market
Value of the ro ert located at 6528 Cedar Avenue South P.I.D.
26-028-24- 4-0055 from 322 400 to 3 8 300• and o reduce the
Estimated Market Va ue of the ro ert at 7244 Cedar Avenue South
P.I.O. 35-028-24-14-0074 from 582.400 to 565.000.
Motion carried 7-0.
Item #7 APPEAL OF GARFIELD HOVERSTEN, 7000 CEDAR AVENUE SOUTH
P.I.D. 35-028-24~-11-0009
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_ Garfield Hoversten appealed the EMV of this property on the
basis of operating expenses and rental income.
Larry Miller, Hennepin County Principal Appraiser, reviewed
the cost, market, and income approaches used to determine the EMV
of this property.
Board discussion followed regarding expense ratios,
capitalization rates, and vacancy rates.
M/Ludeman, S/Sandahl to reduce the Estimated Market Value of
the ro ert located at 7000 Cedar Avenue South P.I.D. 35-028-24-
11-0009 from 759,200 to 736,500.
Motion carried 7-0.
Board of Review Meeting Minutes
ADJOURNMENT
-5- May 9., 1988
M/Quam, S/Garcia that the Board of Review meeting ad.~ourn.
Motion carried 7-0.
I,
The meeting was adjourned at 10:00 p.m.
Date Approved: 5/23/88
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Thomas P. Ferber
City Clerk
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S ev J. Qua Mayor
Jame D. Prosser
Ci Manager