2009-04-06 CC Minutes Special
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ALBERTVILLE
BOARD OF REVIEW
APRIL 6, 2009
MINUTES
ALBERTVILLE CITY HALL
5:30 PM
CALL MEETING TO ORDER
Board of Review Chairman Klecker called the Albertville Board of Review meeting to order at
5:30 p.m.
ROLL CALL
fRESENT: Board of Review Chairman Ron Klecker, Board of Review members John Vetsch,
Dan Wagner, Tom Fay, and Larry Sorensen, Wright County Commercial Assessor Tony
Rasmussen, Wright County Residential Assessor Wally Peterson, City Administrator Larry
Kruse, and City Clerk Bridget Miller
BOARD OF REVIEW
Chairman Klecker opened the 2009 Local Board of Review and Equalization meeting. Klecker
proceeded by turning it over to the Wright County Assessors.
Wright County Assessor Peterson started off by stating the purpose of the Board of Review is to
review the assessment and classification of property within Albertville. The Board of Review is
for the 2009 assessment for taxes due and payable in 2010. The Board does not have the
authority to change any prior years' assessments. Any appeal of prior years can only be made by
the process of application for abatement or legal action.
Peterson went on to share that the authority of the local board extends over the individual
assessments of real and personal property. The board cannot increase or decrease by percentage
all of the assessments in the district of a given class of property. If the board finds an instance of
undervalued property, it cannot raise the market value until the owner is notified. The local
board does not have the authority to grant an exemption or to order property to be removed from
the tax roles.
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City of Albertville
Board of Review
April 6, 2009
Page 2 of3
Peterson noted that a quorum of members must be present and at least one of the members must
be "Training Certified" under Minnesota Statutes Section 274.014, which City Clerk Miller
noted that three (3) members were certified.
Peterson continued by reporting that State law requires the assessor to be at 100% of market
value; however, the State allows the Assessor to be within a range of 90 to 105 percent of market
value. The sales ratio study time frame is from October 1, 2007 through September 20, 2008.
The sales data gathered from this ratio period is used to appraise property as of January 2, 2009.
Peterson brought to the Council's attention that there were 971 qualified residential and seasonal
recreational properties in the sales ratio period. The median sales ratio for residential and
seasonal recreational properties going into the 2010 assessment was 101.5 percent; total
estimated market value decreased about 8.5 percent after the assessment. Market conditions
have changed significantly since the assessment date. The job of the assessor is to follow what is
happening in the market and the Wright County Assessor's Office will be doing that for the 2010
assessment. For cities with agricultural property within their boundaries: The formula for
calculating 'Green Acre' taxable value has been changed statewide by the Department of
Revenue. As a result, 'Green Acre' values throughout Wright County increased 30 to 35
percent.
Rasmuson reported that historically, the County has had 1,300 to 1,500 residential sales;
however, the past year our residential sales were down considerably. Countywide there were a
total of 806, qualified sales compared to 1,361 last year, which is a decrease of 40%. Wright
county appraisers analyzed more than 650 bank and foreclosure sales that occurred during the
study period. An additional 175 sales were determined as representative of the market. This
brought our total qualified sales to 971.
Rasmuson informed the Council that new construction is down from almost $500 M in the past
three (3) years to a little over $100 M this year. The County averaged over 2,000 new homes per
year for the past few assessments; however, had 333 new homes this year. Residential values are
down 8.5%; Commercial values are down 1 %; Agricultural values in development areas were
reduced considerably (30%-40%); Green Acre values were increased over 30%; Countywide, the
total value of the real estate was reduced about 7.6% with over one billion in value loss.
Chairman Klecker opened up the floor for residents present to discuss their concerns regarding
their 2009 Proposed Property Taxes.
There were no residents or business owners present in the audience that expressed a concern or
to dispute their property values there were used to calculate their 2009 Property Taxes that would
be payable in 2010.
Assessor Peterson informed the Board that the County received a couple of written requests from
property owners that he would like to present.
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City of Albertville
Board of Review
April 6, 2009
Page 3 of3
Bank of New York as Trustee, %Countrywide Home Loan, Inc. are the current owners ofPID
101-015-001020, in which they have requested to lower the value. Wright County Assessor
Peterson felt the value that has been appropriately calculated according to the calculation grid.
Four Leaf Investments LLe are the current owners ofPID 101-015-001040, and have requested
the Board to consider re-evaluating the value. Again, the Assess feels the value is fairly priced
with other surrounding properties.
Paxmar LLC are the current property owners for PID 101-090-001020, who have requested a
reduction in value. Steven A. & Deborah J McCann are the current property owners for PID
101-090-002100 who have written asking to recalculate the value. Wright County Assessor's
have calculated both properties using the fair market value calculation as on all other properties
throughout Albertville.
A/shouse Properties LLC owns the property located at PID 101-099-001020, which is in a
business district. According to Assessor Rasmuson, the value is calculated using the set
guidelines. Mr. Alshouse shared in his letter that the building is 90% vacant since 2007, it has
been hard to lease. Mr. Alshouse would consider selling, but that too has been a challenge to
find a buyer. Rasmuson commented that he has already reduced the value $487,000. Other
commercial properties throughout Wright County are in the same situation as Mr. Alshouse.
MOTION BY Board of Review member Fay, seconded by Board of Review member Wagner to
leave four (4) property values for PID: 101-015-001020; 101-015-001040; 101-090-002100; and
101-099-001020 as calculated by the Wright County Assessors. Motion carried unanimously.
GERHARDT KNECHTL owner a parcel ofland with the PID 101-500-363200 notified the City
in November 2008 that his taxes were rather high for a vacant piece of property. Wright County
Assessor Rasmuson felt the property was valued fairly in comparison to other surrounding
properties.
No action was taken regarding Mr. Knechtl's property.
ADJOURNMENT
MOTION BY Board of Review Chairman Vetsch, seconded by Board of Review member
Sorensen to adjourn the April 6, 2009 Board of Review at 6:43 p.m. Motion carried
unanimously.
~srm. Y(QL.
Bridget Miller, CIty Clerk
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