2013-03-18 CC Packet
City of Albertville Council Agenda
Monday, March 18, 2013
City Council Chambers
7:00 PM
PUBLIC COMMENTS -The City of Albertville welcomes and encourages public input on issues listed on the agenda or of general community
interest. Citizens wishing to address the Council regarding specific or non-specific agenda items, other than public hearings are invited to do so
under Public Forum and are asked to fill out a “Request to Speak Card”. Presentations are limited to five (5) minutes.
M:\Public Data\City Council\Council Agendas\2013 Agendas\031813 Council Agenda.doc
Meeting Date: March 18, 2013
1. CALL TO ORDER
2. PLEDGE OF ALLEGIANCE – ROLL CALL
3. RECOGNITIONS – PRESENTATIONS – INTRODUCTIONS
4. PUBLIC FORUM – (time reserved 5 minutes)
5. AMENDMENTS TO THE AGENDA
6. CONSENT AGENDA
All items under the Consent Agenda are considered to be routine by the City staff and will
be enacted by one motion. In the event an item is pulled it will be discussed in the order it
is listed on the Consent agenda following the approval of the remaining Consent items.
These items will be approved by a separate motion.
A. Approve the March 4, 2013 regular City Council minutes as presented (pgs 3-7)
B. Authorize the March 18, 2013 payment of claims as presented, except bills specifically
pulled which are passed by separate motion. The claims listing has been provided to
City Council as a separate document and is available for public view at City Hall upon
request (pg 8)
C. Approve the Friendly City Day’s Committee request for street closings, modified
Central Park hours and other activities (pg 9-10)
7. PUBLIC HEARINGS - None
8. DEPARTMENT BUSINESS
A. City Council
1). Committee Updates (STMA Arena, Planning, JPWB, etc.)
B. City Clerk
1). Board of Appeal and Equalization Training for 2014 (verbal update)
C. Planning/Zoning
1). Appoint Planning Commission Member (pgs 11-18)
Agenda Page 1
City of Albertville Council Agenda
Monday, March 18, 2013 Page 2 of 2
M:\Public Data\City Council\Council Agendas\2013 Agendas\031813 Council Agenda.doc
Meeting Date: March 18, 2013
D. Public Works / Engineering
E. Finance
F. Building
G. Legal
1). Appraisal of City-owned lot behind Outlet Mall (pgs 19-53)
H. Administration
1). City Administrator’s Update (pgs 54-55)
9. ANNOUNCEMENTS and/or UPCOMING MEETINGS
March 25 Joint Powers Water Board, 6:30 p.m.
Parks Committee, 7:30 p.m.
April 1 City Council, 7:00 p.m.
April 8 STMA Ice Arena Board, 6:00 p.m.
April 9 Planning Commission, 7:00 p.m.
April 15 City Council, 7:00 p.m.
April 17 Local Board of Appeal & Equalization, 5:30 p.m.
April 22 Joint Powers Water Board, 6:30 p.m.
Parks Committee, 7:30 p.m.
April 29 Joint Meeting with Albertville and St. Michael City Councils
& STMA School Board, 6:00 p.m. at St. Michael
MARCH
Su M Tu W Th F Sa
1 2
3 CC 4 5 6 7 8 9
10 Ice 11 PZ 12 13 14 15 16
17 CC 18 19 20 21 22 23
24 JP PK
25 26 27 28 29 30
31
APRIL
Su M Tu W Th F Sa
CC 1 2 3 4 5 6
7 Ice 8
PZ
9 10 11 12 13
14 CC 15 16 17 18 19 20
21
JP PK
22 23 24 25 26 27
28 JM 29 30
10. ADJOURNMENT
Agenda Page 2
ALBERTVILLE CITY COUNCIL
Monday, March 4, 2013
DRAFT MINUTES
ALBERTVILLE CITY HALL 7:00 PM
1. CALL TO ORDER – PLEDGE OF ALLEGIANCE
Mayor Hendrickson called the meeting to order at 7:03 p.m.
2. ROLL CALL
Present: Mayor Hendrickson and Council members Olson, Sorensen, Vetsch and Wagner
Absent: None
Others Present: City Administrator/ Public Works Director/City Engineer Adam Nafstad, City
Attorney Michael Couri, City Clerk Kimberly Olson, City Planner Alan Brixius, Finance
Director Tina Lannes, Public Works Supervisor Tim Guimont, Samara Postuma, Dan Renkila,
and Jacob Renkila
3. RECOGNITIONS, PRESENTATIONS AND INTRODUCTIONS - None
4. PUBLIC FORUM
There was no one present to speak.
5. APPROVAL OF THE AGENDA
Motioned by Hendrickson, seconded by Sorensen, to approve the agenda as presented. Ayes:
Hendrickson, Olson, Sorensen, Vetsch and Wagner. Nays: None. Absent: None. MOTION
DECLARED CARRIED.
6. CONSENT AGENDA
All items under the Consent Agenda are considered to be routine by City Staff and will be
enacted by one motion. In the event an item is pulled, it will be discussed in the order it is listed
on the Consent Agenda following the approval of the remaining Consent items. These items will
be approved by a separate motion.
A. Approve the February 19, 2013 City Council regular meeting minutes as presented
Agenda Page 3
City Council Meeting Minutes Page 2
Regular Meeting of March 4, 2013
B. Authorize the March 4, 2013 payment of claims as presented, except bills specifically
pulled which are passed by separate motion. The claims listing has been provided to
City Council as a separate document and is available for public view at City Hall upon
request
C. Accept the February 11, 2013 STMA Ice Arena meeting minutes
Clerk Olson asked to include the 2012 year end payables with the list of claims to be approved.
Sorensen had one correction to the regular meetings of February 19, 2013 to remove
Hendrickson from those present at the meeting.
Motioned by Sorensen, seconded by Vetsch, to accept the consent agenda as amended. Ayes:
Hendrickson, Olson, Sorensen, Vetsch and Wagner. Nays: None. Absent: None. MOTION
DECLARED CARRIED.
7. PUBLIC HEARINGS - None
8. DEPARTMENT BUSINESS
A. City Council
1). Committee Updates (STMA Arena, Planning, JPWB, etc.)
STMA Ice Arena
Sorensen stated they would be receiving the feasibility study shortly.
Nafstad reported they will be bringing in a professional roof consultant to work
with the roof leak issue and recently they have had only minor leaks. He stated
there is an issue with arena visitors parking on the L & D Trucking site and they
are in the process of posting signs.
B. Public Works/Engineering
1). Purchase of Boss Snow Plow
Guimont reported they received three quotes for the snow plow and the lowest was
for $5,500.00. He stated they would install the plow on the truck themselves to
save money. Nafstad added that at this time they do not currently have another
plow to use as a backup if one goes down.
Motioned by Vetsch, seconded by Hendrickson, approve the purchase of a Boss
8’2” VXT Snow Plow at a cost of $5,500.00 plus tax. Ayes: Hendrickson, Olson,
Sorensen, Vetsch and Wagner. Nays: None. Absent: None. MOTION
DECLARED CARRIED.
C. Legal
1). Ordinance Amendment to Add $50 Fire Inspection Fee
Couri reported there are two fees included in the ordinance. The first is a $50 fee
for new alarm and sprinkler installations and is consistent with the rest of the fee
schedule. The second is a $50.00 fee for any inspections beyond the third
inspection after a fire code violation is found. The Fire Marshall has on several
Agenda Page 4
City Council Meeting Minutes Page 3
Regular Meeting of March 4, 2013
occasions had three or more inspections to the same location to achieve
compliance. The purpose of the fee is to encourage owners to fix code violations
in a more timely manner and also to partially, not wholly, offset the City’s costs
for these inspections.
Vetsch inquired if these fees are charged in other cities. Both Wagner and Couri
responded they were. Nafstad stated they are similar to nearby cities and is a
reasonable fee to charge.
Hendrickson inquired how the owners will know what the new process and fees
will be. Nafstad stated they will receive a letter after each inspection.
Motioned by Wagner, seconded by Olson, to adopt Ordinance 2013-002 entitled
an Ordinance Modifying City Code Sections 10-3-9, 10-3-10 and adding Section
10-3-11 relating to Fire Inspections. Ayes: Hendrickson, Olson, Sorensen,
Vetsch and Wagner. Nays: None. Absent: None. MOTION DECLARED
CARRIED.
2). Fraser Interfund Loan
Couri reported that a 3% interest rate on the Interfund loan to Fraser Steel is a
higher rate than what was in the TIF plan approved in July 2012. There are two
options they could look at. They could either modify the TIF plan requiring a
new public hearing process or they could offer 0% interest rate on the loan. If
they modified the plan, they could bring in an additional $25,000 that could be
added to the Revolving Loan Fund. However, the City’s portion of that amount
would be approximately $7,000 and would not go into the General Fund in future
years. Couri explained that the City will still receive the taxes from the current
Fraser Steel value, but would not see that additional $7,000 once the
improvements are complete and there is a higher value placed on the property.
He stated an increased Revolving Loan Fund balance allows for more bridge
financing for businesses to expand. Vetsch would like to grow the fund.
Hendrickson inquired if smaller loans could be taken out of the fund once it is
replenished. Couri replied with the way of the current economy, he foresees more
companies needing bridge financing. Hendrickson felt the general fund is already
stretched thin, but the Revolving Loan Fund will be replenished with TIF funds.
Wagner and Sorensen felt they should not amend the TIF plan. Olson inquired if
there is a penalty if the Revolving Loan Fund balance is lowered. Couri reported
there is not.
Brixius stated the Revolving Loan Fund is a valuable tool and there is merit to
building the fund. The $7,000 the City would not otherwise see in the general
fund actually adds $25,000 to the Revolving Loan Fund and can stimulate
projects that may not otherwise happen. Wagner was concerned that it is also
taking money away from the schools and the County as well as residents. Vetsch
Agenda Page 5
City Council Meeting Minutes Page 4
Regular Meeting of March 4, 2013
stated that all entities will still receive what they are currently receiving today.
Nafstad stated his concern is that by modifying the TIF plan, they may alter
Fraser Steel’s construction timeline. Couri stated they may be able to still issue
the building permit while finalizing the documents. Nafstad stated that consultant
costs to modify the TIF plan would not be covered. Olson, Wagner, and Sorensen
felt if it would cost more, they should offer the 0% interest rate instead.
Hendrickson stated she could see the benefits of each, but doesn’t want to have a
split vote on the item.
Motioned by Wagner, seconded by Sorensen, to set a 0% interest rate on the
Interfund Loan to Fraser Steel. Ayes: Hendrickson, Olson, Sorensen and
Wagner. Nays: Vetsch. Absent: None. MOTION DECLARED CARRIED.
3). Attorney Report
Couri reported that a mediator will soon be appointed for the assessment appeal.
D. City Clerk
1). Set Meeting Time and Date for Annual Sheriff’s Office Update/Workshop for
Monday, March 18, 2013 at 6:00 p.m.
Motioned by Olson, seconded by Hendrickson, to set a workshop at 6:00 p.m. on
Monday, March 18, 2013 for the Annual Sheriff’s Office Update. Ayes:
Hendrickson, Olson, Sorensen, Vetsch and Wagner. Nays: None. Absent:
None. MOTION DECLARED CARRIED.
E. Planning/Zoning - None
F. Finance – None - None
G. Building – None
H. Administration
1). City Administrator’s Update
Nafstad reported the Soccer Association has engaged an architect to identify
repairs needed for the old Public Works building (5964 Main Avenue NE). He has
received two calls from parties interested in renting the old City Hall building
(5975 Main Avenue NE) that is for lease.
Nafstad stated the audit of the City’s financial records is going well and there will
be a presentation from the auditors in April.
9. ANNOUNCEMENTS and/or UPCOMING MEETINGS
March 11 STMA Ice Arena Board, 6:00 p.m.
March 12 Planning Commission, 7:00 p.m.
March 18 Council Workshop, 6:00 p.m.
Agenda Page 6
City Council Meeting Minutes Page 5
Regular Meeting of March 4, 2013
City Council, 7:00 p.m.
March 25 Joint Powers Water Board, 6:30 p.m.
Parks Committee, 7:30 p.m.
April 1 City Council, 7:00 p.m.
April 8 STMA Ice Arena Board, 6:00 p.m.
April 9 Planning Commission, 7:00 p.m.
April 15 City Council, 7:00 p.m.
April 17 Board of Appeal & Equalization, 5:30 p.m.
10. ADJOURN MEETING
Motioned by Wagner, seconded by Sorensen, to adjourn the meeting at 7:42 p.m. Ayes:
Hendrickson, Olson, Sorensen, Vetsch and Wagner. Nays: None. Absent: None.
MOTION DECLARED CARRIED.
Respectfully submitted,
___________________________________
Kimberly A. Olson, City Clerk
Agenda Page 7
Mayor and Council Request for Action
M:\City Council\Council Packet information\2013\031813\03 18 2013 Finance Bills Report (RCA).doc
Meeting Date: March 18, 2013
March 13, 2013
SUBJECT: CONSENT (Finance) – PAYMENT OF BILLS
RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the
following:
MOTION TO: Authorize the MONDAY, March 18, 2013 payment of claims as presented,
except the bills specifically pulled, which are passed by separate motion. The claims listing has
been provided to Council as a separate document. The claims listing is available for public view
at City Hall upon request.
BACKGROUND: The City processes claims on a semi-monthly basis. The bills are approved
through their respective departments and administration and passed onto the City Council for
approval.
KEY ISSUES:
Account codes starting with 810 are STMA Arena Expenses/Vendors (bolded) and key
issues will be presented in the claims listing document.
POLICY/PRACTICES CONSIDERATIONS: It is the City’s policy to review and approve
payables on a semi-monthly basis.
FINANCIAL CONSIDERATIONS: City staff has reviewed and recommends approval of
payments presented.
LEGAL CONSIDERATIONS: The Mayor and Council have the authority to approve all bills
pursuant to Minnesota State Law, which requires all bills to be paid in a timely manner,
generally within 30 days unless one party determines to dispute the billing.
Department/Responsible Person: Finance/Tina Lannes, Finance Director
Submitted through: Adam Nafstad, City Administrator
Attachment: List of Claims (under separate cover)
Agenda Page 8
Mayor and Council Request for Action
M:\City Council\Council Packet information\2013\031813\03 18 2013 AFCD street closure & park hours request.doc
Meeting Date: March 18, 2013
March 14, 2013
SUBJECT: CONSENT - Albertville Friendly City Days Committee Street Closing and
Park Hours
RECOMMENDATION: It is respectfully requested that the Mayor and City Council consider
passing the following:
MOTION TO: Approve the Friendly City Day’s Committee request for street closings, modified
Central Park hours and other activities identified in the attached Friendly City Days Committee
letter to the City Council.
BACKGROUND: Friendly City Days is June 5th through June 9th. This annual event request has
been approved in past years. The Committee has submitted an application to the Wright County
Highway Department for closure of CSAH18 (50th Street NE) and has also submitted a request for
assistance from the Wright County Sheriff’s Office for security and traffic control for the event.
FINANCIAL CONSIDERATIONS: There is no financial cost to the City.
POLICY/PRACTICES CONSIDERATIONS: The Mayor and City Council have the authority
to approve or deny requests for street closures and extension of hours of Central Park. The City
Council has approved the Committee’s request for many years.
Submitted through: Adam Nafstad, City Administrator
Attachments: Albertville Friendly City Days Committee request letter
Agenda Page 9
Agenda Page 10
M:\City Council\Council Packet information\2013\031813\03 18 2013 Planning vacancy appt.doc
Meeting Date: March 18, 2013
Mayor and Council Request for Action
_____________________________________________________________________________
March 13, 2013
SUBJECT: PLANNING DEPARTMENT – APPOINTMENT OF A NEW PLANNING AND ZONING
COMMISSIONER
RECOMMENDATION: It is respectfully requested that the Mayor and City Council consider
one of the following options:
1. Council appoint Jeffrey O’Brien to fill the vacant Planning and Zoning Commission seat.
2. Council refer the applicant to the April Planning and Zoning Commission to be
interviewed by the Planning and Zoning Commission and ask for a Planning and Zoning
Commission recommendation for appointment.
BACKGROUND: On January 31, 2013, the City of Albertville published a public notice
requesting residents to submit applications to fill the vacant seat on the Albertville Planning and
Zoning Commission. The deadline for submission was March 6, 2013.
During this period, we received two letters of interest (see attached). The volunteers are Jeffrey
O’Brien and Linda Leger. Since the receipt of the letters, Ms. Leger has withdrawn her name
from consideration, leaving the City with one candidate.
KEY ISSUES:
1. The City has a vacant two year Planning and Zoning Commission seat.
2. The City advertised the past month for volunteers and received only two letters of
interest.
3. One candidate has withdrawn her letter from consideration.
4. The remaining candidate is well qualified with a background in real estate law.
5. He is actively involved with the Towne Lakes homeowners association.
6. Through his work and involvement with the Towne Lakes HOA, he has familiarity with
zoning and land use restrictions.
POLICY/PRACTICES CONSIDERATIONS: The appointment of Planning and Zoning
Commissioners is the responsibility of the City Council.
LEGAL CONSIDERATIONS: The Albertville City Code mandates a Planning and Zoning
Commission consisting of five members. Planning and Zoning Commission vacancies during
the term shall be filled by City Council appointment for the unexpired portion of the term.
Department/Responsible Person: Planning/Alan Brixius, City Planner
Submitted through: Adam Nafstad, City Administrator
Attachment: Submission Letters
Agenda Page 11
Agenda Page 12
Agenda Page 13
Agenda Page 14
Agenda Page 15
Agenda Page 16
Agenda Page 17
Agenda Page 18
Page 1 of 2
Couri & Ruppe, P.L.L.P.
Memo
To: Albertville City Council
From: Mike Couri
Date: March 14, 2013
Re: Appraisal of City Property north of the Outlet Mall.
Bill Waytas, an appraiser at Nagell Appraisal, has appraised the 13.6 acre lot
owned by the City and located south of 67th Street NE and north of the Outlet Mall at a
value of $620,000, or approximately $1.05 per square foot. It should be noted that this
price is nearly one-quarter of the $4 price the City sold adjacent lots for in 2003.
However, two of the three lots the City sold in 2003 have never been built upon, and one
of those lots has been back on the market for several years now with no buyers. I believe
the $1.05 per square foot valuation reflects the lack of demand for commercial land in
Albertville since the start of the Great Recession. As noted by Mr. Waytas, there have
been no vacant land sales in Albertville recently that are comparable to this property.
John Darkenwald has expressed an interest in using this lot as a pond for future
commercial development on the former Roden land (now owned by Mr. Darkenwald)
located to the north and west of this lot. City staff has had very general discussions with
Mr. Darkenwald regarding the possibility of selling the appraised lot to Mr. Darkenwald
via increased storm water fees that would be applicable to the Darkenwald property.
Under this concept, the City would be paid for the land over a period of years as
the Darkenwald land develops. This arrangement has several advantages for all parties,
including:
• Increased tax base for the City as the Darkenwald land develops.
Agenda Page 19
Page 2 of 2
• The City would receive cash in exchange for the lot (essentially a sale of the lot)
over time.
• Ponding on this site will allow more of the Darkenwald land that has better
visibility from I-94 to develop at its highest and best use and will place the pond
on the back side of the Outlet Mall, which has little or no visibility from I-94.
At this point, the Council does need to take formal action regarding this lot.
City Staff will continue working with Mr. Darkenwald to see if we can reach an
agreement on how the lot will be used and how the City will be paid for the lot
(presumably based on the appraised price). Once an agreement is tentatively reached,
it will come back to the City Council for approval. Any comments or concerns the
Council may have regarding this proposed arrangement would be appreciated, as we
may be able to address those concerns in our negotiations with Mr. Darkenwald.
Agenda Page 20
Report Type
Restricted Use Appraisal Report
Effective Date
February 15, 2013
Prepared By:
William R. Waytas, Appraiser
Nagell Appraisal & Consulting, Inc.
7515 Wayzata Boulevard West, Suite 115
Minneapolis, Minnesota 55426
Tel: 952.544.8966 | Fax: 952.544.8969
Client Subject Property
City of Albertville Land
Attn: Michael Couri, City Attorney XXXX 67th Street
705 Central Avenue East Albertville, MN
St. Michael, MN 55376-0369
File # L1302002
Agenda Page 21
2
Agenda Page 22
NAGELL APPRAISAL & CONSULTING
7515 Wayzata Blvd. #115 Minneapolis 952-544-8966
Minneapolis, MN 55426 St. Paul 651-209-6159
Established in 1968 Central Fax 952-544-8969
__________________________________________________________________________
City of Albertville March 13, 2013
Attention: Michael Couri, City Attorney
705 Central Avenue East
St. Michael, MN 55376-0369
Dear Mr. Couri:
In accordance with your request, an inspection and a Restricted Use Appraisal Report (less
extensive collection, verification, analysis, viewing, etc., used in the valuation approach) has
been made on the following described property:
Subject Property
Land
XXXX 67th Street
Albertville, MN 55301
It is legally described herein. The appraisal assumes that the property meets all current
environmental standards. The appraisal analysis and conclusions are subject to certain limiting
conditions and assumptions described herein. As a result of my appraisal and experience, it is
my opinion that the current market value of the subject property, as of February 15, 2013, is:
MARKET VALUE OPINION: $620,000
Our company has 13 employees and has been in business since 1968 and has sufficient
knowledge, experience, contacts, and resources to competently complete this assignment. The
accompanying report contains data secured from my personal investigation and from sources
considered to be reliable; however, correctness is not guaranteed. To the best of my
knowledge and belief, the statements contained in this report are true and correct. Neither my
employment to make this appraisal, nor the compensation, is contingent upon the value
reported. This report has been prepared in conformity with the code of professional ethics and
standards of professional appraisal practice of the Appraisal Institute and appraisal standards
set forth by Uniform Standards of Professional Appraisal Practice.
Sincerely,
William R. Waytas, SRA, CRP
Certified General MN 4000813
__________________________________________________________________________
www.callnagell.com
Agenda Page 23
Agenda Page 24
TABLE OF CONTENTS
General Information Page
Summary of Important Facts and Conclusions ................................................................ 1
Introduction, Intended Use of the Appraisal, Date of the Appraisal .................................. 2
Property Rights Appraised, Personal Property ................................................................ 3
Scope of the Appraisal .................................................................................................... 4
Identification .................................................................................................................... 5
Subject Sales & Building History ..................................................................................... 5
Real Estate Taxes ........................................................................................................... 6
Descriptive Data
City & Neighborhood Description .................................................................................... 7
Location Map .................................................................................................................. 7
Site Description ............................................................................................................... 8
Aerial Map / Plat Map ...................................................................................................... 9
Zoning Map ................................................................................................................... 10
Subject Photographs ..................................................................................................... 11
Valuation
Highest and Best Use ................................................................................................... 12
Cost Approach .............................................................................................................. 12
Income Approach .......................................................................................................... 12
Sales Comparison Approach ......................................................................................... 12
Reconciliation ............................................................................................................... 18
Definitions ..................................................................................................................... 19
Environmental & Structural Issues ................................................................................ 20
Extraordinary Assumptions & Hypothetical Conditions .................................................. 20
Assumptions and Limiting Conditions ............................................................................ 21
Certification ................................................................................................................... 23
Qualifications ................................................................................................................ 24
Addenda ....................................................................................................................... 26
Agenda Page 25
Agenda Page 26
1
SUMMARY OF IMPORTANT FACTS & CONCLUSIONS
General Description: Land
Appraisal Report: Restricted Use Appraisal Report
Current Use: Vacant Land
Extraordinary Assumptions &
Hypothetical Conditions: No, see report for standard assumptions
Site Size: 592,416 SF (13.60 acres)
Building Size (GBA): N/A
Age: N/A
Quality-appeal / Condition: N/A
Zoning: B-2A, Special Business District
Highest and Best Use: Hold for future development
Personal Property: No personal property or FF&E included in value.
Cost Approach Not applied
Income Approach Not applied
Sales Comparison Approach $620,000
MARKET VALUE $620,000
Agenda Page 27
2
INTRODUCTION
The subject site is a vacant land parcel located behind the Albertville Outlet Mall in the City of
Albertville. Very limited development along the subject street, most lots are vacant.
Methodology: Land sales in outlying locations like the subject are virtually non-existent
largely due in part to the “Great Recession” and the significant gap between cost of building
new and market value. Consequently, the search area has been expanded as well as
competing zoning sales are used.
VALUE TYPE, CONDITION & STABILITY OF PROPERTY
Type of Value: This report provides an opinion of Market Value.
Condition of Value: This report provides an opinion of the as-is value.
Occupancy/Stability: Land Appraisal
INTENDED USE OF THE APPRAISAL
Intended Use:
The client (City of Albertville) intends to use the appraisal for
decision making regarding possible sale to a developer for
ponding. This appraisal assignment was requested by the
named client/owner for its sole use. No party, other than the
client, may use or rely upon any part of this report without the
prior written authorization of both the named client and the
appraiser. This report is not valid unless it contains the original
signatures in blue ink. Any unauthorized third party relying upon
any portion of this report does so at its own risk.
DATE OF APPRAISAL
Effective Date: February 15, 2013
View Date: February 15, 2013
Dates of Report: February 15 – March 13, 2013
Agenda Page 28
3
PROPERTY RIGHTS APPRAISED
Real property ownership consists of a group of distinct rights. There are two primary property
rights, Fee Simple and Leased Fee (as defined by The Appraisal of Real Estate, 13 Edition,
Appraisal Institute).
Fee Simple Interest: Absolute ownership unencumbered by any other interest or estate,
subject only to the limitations imposed by the governmental powers of taxation, eminent
domain, police power, and escheat.
Note: This would typically reflect an owner-occupied property. When the property rights
appraised are the unencumbered fee simple interest of the real estate, the appraised
value is subject to normal easements for drainage, public streets and utilities, if any. The
effect of any existing mortgage or delinquent taxes on the subject property has not been
considered in this appraisal.
Leased Fee Interest: The ownership interest held by a lessor (landlord), which includes the
right to the contract rent specified in the lease plus reversionary right when the lease expires.
The lessor’s interest in a property is considered a leased fee interest regardless of the duration
of the lease, specified rent, the parties to the lease, or any of the terms in the lease contract.
A leased property, even one with rent that is consistent with market rent, is appraised as a
leased fee interest, not as fee simple interest. Even if the rent of lease terms are not consistent
with market terms, the lease fee interest must be given special consideration and is appraised
as a leased fee interest (The Appraisal of Real Estate, 13th Edition, Page 114).
Given the subject property is vacant land being appraised, the Fee Simple Interest will be
appraised.
PERSONAL PROPERTY
Appraised value reflects real estate only. No personal property, business value or FF&E
has been included in the appraised value.
Agenda Page 29
4
SCOPE OF THE APPRAISAL REPORT
USPAP defines Scope of Work as: The type and extent of research and analyses in an
assignment.
For each appraisal, appraisal review and appraisal consulting assignment, an appraiser
must:
1) Identify the problem to be solved,
2) Determine and perform the scope of work necessary to develop credible
assignment results; and
3) Disclose the scope of work in the report.
1) Provide a reasonably supported value opinion as it relates to the intended use & scope.
2)
Per assignment request (see addenda for engagement letter), the following degree of
research and analysis has been made. The narrative format used is a Restricted Use
Report, which is intended to comply with the reporting requirements set forth under
Standards Rule 2-2(b) of USPAP. See individual approaches for further detail.
3)
The scope of work for this appraisal includes:
a) Property Identification: Public record, plat maps, zoning maps and aerial
photographs were used to identify the subject property.
b) Property Inspection: A viewing of the subject property and neighborhood by the
appraiser. Physical factors: Based on property viewing and conversations with the
client, city and county officials. Lot size is based on county information. Economic
Factors: Consisted of gathering of information from market experts, city and/or
county offices, and internet about the region, community, neighborhood, zoning,
utilities, and any pending projects in the area that may affect the subject property.
c) Extent of Data Researched: Sales data of competing properties within the
subject market area were given primary consideration. The most relevant data is
used in this report. Sources include, appraiser data files, assessor, internet,
developers, agents, MLS, periodicals, in-office library, etc. In addition, during the
course of appraisal practice and of this appraisal process, the appraiser has had
ongoing discussions with market participants (buyers, sellers, property managers,
real estate agents/brokers, appraisers, etc.) and/or viewed market data in relation
to how the current real estate market may impact the subject value. The appra iser
has not researched the title or ownership records.
d) Type and Extent of Analysis Applied at Opinions or Conclusions: An extensive
review of market data was performed. The most recent, similar and proximate data
has been used. The data used will be adjusted on a grid. Reasonable and
appropriate collection, verification, analysis and viewing has been performed in the
valuation approaches, given the purpose and intended use of the report. A final
value opinion will be discussed and correlated.
The data used was obtained from sources considered credible, yet its accuracy is not
guaranteed.
Agenda Page 30
5
IDENTIFICATION
Street Address (per County): XXXX 67th Street
Albertville, MN 55301
PID # (per County): 101091000020
Legal Description: Sect-35 Twp-121 Range-024 NORTHWEST COMMERCIAL
PARK OUTLOT B
The Fee Owner
(per County): City of Albertville
Census Tract #: 1008.01
SUBJECT SALES & BUILDING HISTORY
Sales History: No known sales of the subject within the past three years.
Listing Status: No known current listing of the subject property.
Pending Sale: No known or reported pending sale.
Building History: N/A
Lease Data: N/A
Lease Source: N/A
Leasehold Interest: N/A
Association Dues: N/A, not part of a common interest community.
Agenda Page 31
6
REAL ESTATE TAXES
Taxes, per Plat Systems Data Service
Payable 2012
Tax (Exempt) $0
Special Assessments /
Solid Waste Fee/Other $0
Total Tax & Assessments: $0
COUNTY ASSESSOR’S VALUE
Payable 2013
Land $1,092,200
Building N/A
TOTAL $1,092,200
The current tax ratio for the subject property is not applicable due to tax exempt status. Tax exempt
properties like the subject generally are not monitored as closely as non -exempt properties and as a result
commonly have above market values.
Typical Tax Ratios by Property Type
Commercial (retail, office, industrial, hotel, other, etc.) 3.0% – 4%
Residential (multi-family, apartment, etc.) 1% – 2%
Single-family dwellings 1% – 1.5%
The appraised value given in this report assumes any/all special assessments, and/or liens are
paid in full and that there are no delinquent taxes, fees, payments, association dues, etc. Should it
be found that any of these exist the amount should be deducted from the appraised value.
Appraiser did not research these items; typically, a title search would reveal any of these.
Agenda Page 32
7
CITY & NEIGHBORHOOD DESCRIPTION
The subject property is located in the City of Albertville approximately 45 minutes northwest of
the downtown Minneapolis CBD. The immediate neighborhood along the subject street (67
Street NE) consists mainly of vacant lots that have been listed for sale over the past 5 years.
The only lots in the development that have been built on are the two along County Road 19
and at the far west end of the development that face I-94. Although the subject development
is located just north of the popular Albertville Outlet Mall the subject street has had limited
appeal to business district users (retail and office). Although zoned business district, at this
time the site appears to be conducive for an industrial related user, as such, industrial sales will
be used for comparison.
All support and service facilities; freeways and public schools are within nearby proximity to the
subject neighborhood. No readily apparent adverse location factors were noted during the
inspection. There are no apparent adverse influences.
LOCATION MAP
Agenda Page 33
8
SITE DESCRIPTION
Dimensions: Irregular, see plat
Area: 592,416 SF (13.60 acres) per county online records
Topography: Mostly Level
Shape: Rectangular
Soil conditions: Assumed to be stable in upland area, typical low areas in southern areas
and in NEC is a small pond. Taken into account in value.
Drainage: Assumed Adequate
Utilities:
Electricity / Gas: Yes / Yes
Water / Sanitary
Sewer: City water / City sewer
Off-Site Improvements:
Street/Curb-gutter: Asphalt / Snow covered
Sidewalk: None
Street Lights / Alley: None / None
Storm Sewer: Surface, snow covered
Access to site (#): 67th Street
Frontage: 67th Street
Visibility / View: Fair / Fair
Flood hazard zone: Appears no; Flood map #2707470003A September 30, 1992
Apparent Easements: Typical drainage & utility assumed
Encroachments: None apparent
Unusual Conditions: None noted
Use / Zoning: B-2A, Special Business District (per city)
Current Use: Vacant Land
Excess/Surplus Land: N/A
Functional Adequacy: Average
Surrounding Uses:
N Vacant Land
S Albertville Outlet Mall
W Vacant Land
E Vacant Land
Distance to Major Road: Subject is located about 1 mile NW of Interstate 94. Subject is on a dead
end street that is mostly vacant land.
Agenda Page 34
9
AERIAL VIEW / PLAT MAP
Agenda Page 35
10
ZONING MAP
Agenda Page 36
11
SUBJECT PHOTOGRAPHS
Looking West on 67th Street
Front View of Subject
Side view of Subject, pond area in NEC Rear view looking north
Agenda Page 37
12
HIGHEST AND BEST USE
The subject zoning allows for a variety of business uses, mainly retail and office. Given the
visibility and limited development on the subject street, a retail or office use would likely have
very limited appeal. Although not allowed at this time the subject appeal is more in-line with
industrial values or limited appeal commercial.
As such, the Highest and best use is to hold and develop the subject as market demand and
zoning allows.
Given the above discussion both industrial and limited appeal commercial land sales in outlying
locations will be used.
COST APPROACH
The Cost Approach is not applicable in this situation since there are no building improvements
being considered in the valuation.
INCOME APPROACH
The Income Approach to value is not applicable in this situation. Very limited rental data of
vacant land renders the Income Approach an unreliable indicator.
SALES COMPARISON APPROACH
The Sales Comparison Approach to Value is predicated upon sales of properties with similar
characteristics as the subject. The primary premise of this approach is that the market value of
the subject is directly related to the prices of competing properties after adjustment.
Adjustments are made in an effort to account for significant differences.
In addition to comparable sales data, comparable listing data will also be considered.
The Following Outline Is Used In the Sales Comparison Approach:
- A location map of the comparable sales.
- Comparable sales are listed.
- A discussion and conclusion of value.
Agenda Page 38
13
LOCATION MAP OF COMPARABLE SALES
Agenda Page 39
14
Sales Comparison Approach—continued
Lot Comparable #1
Location: 10395 70th St NE
Albertville
Site Size: 3,584,291
Utilities: Nearby
Visibility: Good
Zoning/Use: I-1, Limited Industrial
Date Sold: August 27, 2012
Comments:
Buyer exercised an
option from about 10
years ago. Used due to
limited sales in the
immediate area. Buyer
wants to develop for
commercial as market
demand warrants.
Total Sale Price: $2,275,680
Price Per SF: $0.63 per SF
Lot Comparable #2
Location: 43rd Street NE
St. Michael
Site Size: 143,748 SF
Utilities: Available
Visibility: Average
Zoning/Use:: I-1, Industrial
Date Sold: June 3, 2010
Comments:
Similar appeal property.
City bought and felt
they paid a premium of
25%.
Total Sale Price: $267,505
Price Per SF: $1.86 per SF
Agenda Page 40
15
Sales Comparison Approach—continued
Lot Comparable #3
Location: 13353 42nd St NE
St. Michael
Site Size: 750,000 SF
Utilities: Nearby
Visibility: Average
Zoning/Use:: Business
Date Sold: July 2008
Comments:
Hwy frontage, although
older sale, used due to
limited land sales in the
area.
Total Sale Price: $700,000
Price Per SF: $0.93 per SF
Lot Comparable #4
Location: 19035 Lake George
Blvd NW, Oak Grove
Site Size: 239,580 SF
Utilities: Available
Visibility: Average
Zoning/Use:: Office
Date Sold: February 8, 2011
Comments: Competing outer ring
location.
Total Sale Price: $324,500
Price Per SF: $1.35 per SF
Agenda Page 41
16
Sales Comparison Approach—continued
Lot Comparable #5
Location: 13115 Brockton Lane
Rogers
Site Size: 2,262,506 SF
Utilities: Available
Visibility: Fair
Zoning/Use:: Industrial
Date Sold: February 2011
Comments: Larger site with similar
appeal.
Total Sale Price: $2,100,000
Price Per SF: $0.93 per SF
Lot Comparable #6
Location: XXX 8th Ave S
Zimmerman
Site Size: 155,509 SF
Utilities: Available
Visibility: Average
Zoning/Use:: Church
Date Sold: February 5, 2010
Comments: Good corner location.
Total Sale Price: $175,000
Price Per SF: $1.13 per SF
Agenda Page 42
17
Sales Comparison Approach—continued
Market Data: Listed below are the most pertinent sales available. Comparables used bracket
the subject regarding overall appeal and are rated to be the best available data.
Description Subejct Comp 1 Comp 2 Comp 3 Comp 4 Comp 5 Comp 6
Address XXXX 67th St.
Albertville
10395 70th St NE
Albertville
XXXX 43rd St NE
St. Michael
13353 42nd St NE
St. Michael
19035 Lake
George Blvd
Oak Grove
13115 Brockton Ln
Rogers
XXX 8th Ave S
Zimmerman
Terms Market Market Market Market Market Market Market
Conditions Typical Option Buyer pd premium Typical Typical Typical Typical
Location Average Average Average Average Average Average Average
Zoning/Use Comm/Ind Ind/future comm Industrial Business Office Industrial Church
Utilities Available Nearby Available Nearby Available Available Available
Visibility Fair Some Hwy Average Hwy Average Fair Average
Phys Char Average Average Average Fair Average Average Average
Building Imprv None Nil None None None Average None
Date of Sale Current Aug-12 Jun-10 Jul-08 Feb-11 Feb-11 Feb-10
Total Sale Price N/A $2,275,680 $267,505 $700,000 $324,500 $2,100,000 $175,000
Site Size 592,416 3,584,291 143,748 750,000 239,580 2,262,506 155,509
Price per SF - $0.63 $1.86 $0.93 $1.35 $0.93 $1.13
Time of Sale Current -9%
Terms Market
Conditions Typical 20%-25%
Location Average
Zoning/Use Comm/Ind
Utilities Available 20%20%
Visibility Fair -10%-10%-10%-10%-10%
Phys Char Average 10%
Site Size 592,416 15%-10%5%-5%10%-10%
Building Imprv None
Net Adjustment 45%-45%16%-15%10%-20%
Adj $/SF $0.92 $1.02 $1.08 $1.15 $1.02 $0.90
Conclusion: The comparables used in this analysis each have several similar characteristics
in common with the subject. While none are totally identical, each represents a viable
alternative to a prospective buyer of the subject property and therefore can be used as an
indicator of approximate market value. Other sales considered were further, more dated and/or
needed more adjustment. Comparable 3 adjusted for time as market declined until beginning
of 2010 after which it began to stabilize somewhat. All comparables are rated to have
competing use appeal.
After adjustments, sales have an indicated range of $0.90 to $1.15 per SF with an average of
$1.02 per SF and median of $1.02 per SF. Given the data and considering the overall
characteristics of the subject property and market, a rate of approximately $1.05 per SF is
considered appropriate.
592,416 SF X $1.05 per SF = $622,037
OPINION OF SITE VALUE: $620,000 rnd
Agenda Page 43
18
RECONCILIATION
Indicated Value by Cost Approach: Not Applied
Indicated Value by Income Approach: Not Applied
Indicated Value by Sales Comparison Approach: $620,000
Conclusion: The Sales Comparison Approach is given all weight in the analysis. The Cost
Approach and the Income Approach were not implemented.
The derived market value estimate for the subject property is:
MARKET VALUE OPINION: $620,000
Final Value reflects “market exposure” time of under 1 year before effective date of appraisal. Changes in the
market, building, use and/or management subsequent to the effective appraisal date could impact the market value
of the property.
EXPOSURE TIME / MARKETING TIME
Reasonable Exposure Time: Under one (1) year before
the effective date of the appraisal.
Marketing Time Opinion: 12 months or less after the
effective date of the appraisal.
Agenda Page 44
19
DEFINITIONS
MARKET VALUE - The most probable price which a property should bring in a competitive and
open market under all conditions requisite to a fair sale, the buyer and seller each acting
prudently, knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in
this definition is the consummation of a sale as of a specified date and the passing of title from
seller to buyer under conditions whereby:
(A) buyer and seller are typically motivated;
(B) both parties are well informed or well advised, and each acting in what they
consider their own best interest;
(C) a reasonable time is allowed for exposure in the open market;
(D) payment is made in terms of cash in U.S. dollars or in terms of financial
arrangements comparable thereto; and
(E) the price represents the normal consideration for the property sold, unaffected by
special or creative financing or sales concessions granted by anyone associated with
the sale.
Source: Dictionary of Real Estate Appraisal, Fifth Edition, Appraisal Institute
Agenda Page 45
20
ENVIRONMENTAL & STRUCTURAL ISSUES
Regarding any adverse environmental and/or improvement structural conditions (such as, but
not limited to, hazardous wastes, toxic substances, mold, construction defects or inadequacies,
etc.) present in the improvements, on the site, or in the immediate vicinity of the subject
property: None are apparent, however, appraiser is not an expert in this field. Value assumes
no hazardous or structural conditions exist. Value assumes any abandoned wells will be
properly sealed. If any of these conditions exist the appraised value could differ significantly.
EXTRAORDINARY ASSUMPTIONS & HYPOTHETICAL CONDITIONS
As stated by USPAP;
Extraordinary Assumption: An assumption, directly related to a specific assignment,
which, if found to be false, could alter the appraiser’s opinions of conclusions.
None
Hypothetical Condition: That which is contrary to what exists but is supposed for the
purpose of analysis.
None
Agenda Page 46
21
ASSUMPTIONS AND LIMITING CONDITIONS
1. The appraisers assume no responsibility for matters of a legal nature affecting the property
appraised or the title thereto, nor do the appraisers render any opinion as to the title, which is
assumed to be good and marketable. The property is appraised as though under responsible
ownership and good management.
2. The furnished legal description is assumed to be correct.
3. Any sketch in the report may show approximate dimensions and is included to assist the
reader in visualizing the property. The appraisers have made no survey of the property. It is
assumed unless otherwise noted that no survey has been viewed and that all improvements
are located within the legally described property.
4. The appraisers are not required to give testimony or appear in court because of having
made the appraisal with reference to the property in question, unless arrangements have been
previously made therefore.
5. The distribution of the total valuation in this report between land and improvements applies
only under the reported highest and best use of the property. The allocations of value for land
and improvements must not be used in conjunction with any other appraisal and are invalid if
so used.
6. The appraisers assume that there are no hidden or unapparent conditions of the property,
subsoil, or structures, which would render it more or less valuable. The appraisers assume no
responsibility for such conditions, or for engineering, which might be required to discover such
factors.
7. Unless otherwise stated in this report, the existence of hazardous materials, which may or
may not be present on the property, was not observed by the appraiser. The appraiser has no
knowledge of the existence of such materials on or in the property. The appraiser, however, is
not qualified to detect such substances. The presence of substances such as asbestos, urea-
formaldehyde foam insulation, radon gas, or other potentially hazardous materials may affec t
the value of the property. The value estimate is predicated on the assumption that there is no
such material on or in the property that would cause a loss in value. No responsibility is
assumed for any such conditions, or for any expertise or engineering knowledge required to
discover them. The client is urged to retain an expert in this field, if desired.
8. Information, estimates, and opinions furnished to the appraisers, and contained in the
report, were obtained from sources considered reliable and believed to be true and correct.
However, the appraisers can assume no responsibility for accuracy of such items furnished the
appraisers.
9. Disclosure of the contents of the appraisal report is governed by the Bylaws and
Regulations of the professional appraisal organizations with which the appraisers are affiliated.
No part of the contents of this report, or copy thereof (including conclusions as to the property
value, the identity of the appraiser, professional designations, reference to any professional
appraisal organizations, or the firm with which the appraiser is connected), shall be
disseminated to the public through advertising, public relations, news, sales, or any other public
means of communications without the prior written consent and approval of the appraisers.
Agenda Page 47
22
Assumptions & Limiting Conditions – continued
10. The appraisers have no present or contemplated future interest in the property appraised;
and neither the employment to make the appraisal, nor the compensation for it, is contingent
upon the appraised value of the property. The appraisers have no personal interest or bias
with respect to the parties involved.
11. The appraiser has personally inspected the subject site. To the best of the appraiser’s
knowledge and belief, all statements and information in this report are true and correct, and the
appraisers have not knowingly withheld any significant information.
12. The reported analyses, opinions, and conclusions are limited only by the reported
assumptions and limiting conditions, and is our personal, unbiased professional analyses,
opinions, and conclusions. Our analyses, opinions, and conclusions were developed, and this
report has been prepared, in conformity with the Uniform Standards of Professional Appraisal
Practice.
13. The Americans with Disabilities Act ("ADA") became effective January 26, 1992. We have
not made a specific compliance survey and analysis of the property to determine whether or
not it is in conformity with the various detailed requirements of the ADA. It is possible that a
compliance survey of the property, together with a detailed analysis of the requirements of the
ADA, could reveal that the property is not in compliance with one or more of the requirements
of the Act. If so, this fact could have a negative effect upon the value of the property. Since we
have no direct evidence relating to this issue, we did not consider possible non-compliance
with the requirements of ADA in estimating the value of the property.
14. No one provided significant professional assistance to the person(s) signing this report.
15. This appraisal assignment was not based on a requested minimum valuation or specific
valuation or approval of a loan.
16. To the best of our knowledge and belief, the reported analysis, opinions, and conclusions
were developed, and this report was prepared in conformity with the requirements of the Code
of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal
Institute.
17. The appraised value opinion assumes all leases (if any) are current and paid in full as of
the effective date of the appraisal.
18. Excel grids and tables may have slight deviations due to rounding, which may have a
nominal impact on value.
19. The appraised value opinion assumes all formulas used in the Excel grids throughout the
report are accurate.
20. Unless noted, value assumes no apparent adverse site, building or zoning issues or
conditions.
21. Site and building sizes are based on public record, data services, client and/or appraiser
measurement at the time of appraisal and are considered reliable, but not guaranteed.
22. If any of the above if found to be different, value could change.
Agenda Page 48
23
CERTIFICATION
I certify that, to the best of my knowledge and belief:
1) The statements of fact contained in this report are true and correct.
2) The reported analyses, opinions, and conclusions are limited only by the reported
assumptions and limiting conditions, and are my personal, impartial, and unbiased
professional analysis, opinions, and conclusions.
3) I have no (or specified) present or prospective interest in the property that is the subject
of this report, and no (or the specified) personal interest with respect to the parties
involved.
4) I have no bias with respect to the property that is the subject of this report or to the
parties involved with this assignment.
5) My engagement in this assignment was not contingent upon developing or reporting
predetermined results.
6) My compensation for completing this assignment is not contingent upon the
development or reporting of predetermined value or direction in value that favors the
cause of the client, the amount of the value opinion, the attainment of a stipulated
result, or the occurrence of a subsequent event directly related to the intended use of
this appraisal.
7) My analyses, opinions, and conclusions were developed, and this report has been
prepared, in conformity with the Uniform Standards of Professional Appraisal Practice.
8) The reported analyses, opinions and conclusions were developed, and this report has
been prepared in conformity with the requirements of the Appraisal Institute’s Code of
Professional Ethics and Standards of Professional Appraisal Practice, which includes
the Uniform Standards of Appraisal Practice.
9) William R. Waytas has made a personal inspection of the subject property. (If
more than one person signs the report, this certification must clearly specify which
individuals did and which individuals did not make a personal inspection of the appraisal
property).
10) No one provided significant professional assistance to the person signing this report. (If
there are exceptions, the name of each individual providing significant professional
assistance must be stated.)
11) In accordance with the competency provision USPAP, I have verified that my
knowledge, experience and education are sufficient to allow me to competently
complete this appraisal. See attached qualifications.
12) As of the date of this report, William R. Waytas has completed the requirements of the
continuing education program of the appraisal institute.
13) The use of this report is subject to the requirements of the Appraisal Institute relating to
review by its duly authorized representative.
14) Nagell Appraisal & Consulting has appraised the subject property zero times within the
past three year period.
William R. Waytas, SRA, CRP
Certified General MN 4000813
Date: See report
Agenda Page 49
24
QUALIFICATIONS
Appraisal Experience
Presently and since 1985, William R. Waytas has been employed as a full time real estate
appraiser. Currently a partner and President of Nagell Appraisal & Consulting, an independent
appraisal firm (13 employees) who annually prepare 1,500 +/- appraisal reports of all types.
Mr. Waytas was employed with Iver C. Johnson & Company, Ltd., Phoenix, AZ from 1985 to
1987.
Properties appraised:
Commercial - low and high-density multi-family, retail, office, industrial, restaurant, church, strip-mall,
fast-food, convenience stores, auto-service and repair, hotel, hotel water park, bed & breakfast,
senior/assisted living, schools/colleges, cinema, marina, campground, lumberyards, numerous special
use properties, and subdivision analysis.
Residential – single-family residences, hobby farms, lakeshore, condominiums, townhouses, REO and
land.
Eminent Domain – extensive partial and total acquisition appraisal services provided to numerous
governmental agencies and private owners.
Special Assessment – numerous street improvement and utilities projects for both governmental and
private owners.
Review – residential, commercial and land development.
Clients - served include banks, savings and loan associations, trust companies, corporations,
governmental bodies, schools/colleges (University of Minnesota, Metro State University, St. Mary’s
College), relocation companies, attorneys, REO companies, accountants and private individuals.
Area of Service - most appraisal experience is in the greater/metro area (typically within 2 hours of
downtown metro) of Minneapolis/St. Paul, MN. Numerous assignments throughout Minnesota.
Professional Membership, Associations & Affiliations
License: Certified General Real Property Appraiser, MN License #4000813.
Appraisal Institute: SRA, Senior Residential Appraiser Designation,
General Associate Member of Appraisal Institute
Employee Relocation Council: CRP Certified Relocation Professional Designation.
International Right-Of-Way Association: Member
HUD/FHA: On Lender Selection Roster and Review Appraiser
DNR: Approved appraiser for Department of Natural Resources
Testimony
-- Court, deposition, commission, arbitration & administrative testimony given.
Mediator
-- Court appointed in Wright County.
Committees
-- President of Metro/Minnesota Chapter, 2002, Appraisal Institute.
-- Chairman of Residential Admissions, Metro/MN Chapter, AI.
-- Chairman Residential Candidate Guidance, Metro/Minnesota Chapter, AI.
-- Elm Creek Watershed Commission, Medina representative 3 years.
-- Park Commission, Medina, 3 years
Agenda Page 50
25
Education
-- Graduate of Bemidji State University, Minnesota. B.S. degree in Bus. Ad.
-- During college, summer employment in building trades (residential and commercial).
-- Graduate of Cecil Lawter Real Estate School. Past Arizona Real Estate License.
General & Professional Practice Courses & Seminars
-- Course 101-Introduction to Appraising Real Property.
-- Numerous Standards of Professional Practice Seminar.
-- Fair Lending Seminar.
-- Eminent Domain & Condemnation Appraising.
-- Eminent Domain (An In-Depth Analysis)
-- Property Tax Appeal
-- Eminent Domain
-- Business Practices and Ethics
-- Scope of Work
-- Construction Disturbances and Temporary Loss of Going Concern
-- Uniform Standards for Federal Land Acquisitions (Yellow Book Seminar)
-- Partial Interest Valuation Divided (Conservation Easements, Historic Preservation
Easements, Life Estates, Subsurface Rights, Access Easements, Air Rights, Water Rights,
Transferable Development Rights)
Commercial/Industrial/Subdivision Courses & Seminars
-- Capitalization Theory & Techniques
-- Highest & Best Use Seminar
-- General & Residential State Certification Review Seminar
-- Subdivision Analysis Seminar.
-- Narrative Report Writing Seminar (general)
-- Advanced Income Capitalization Seminar
-- Advanced Industrial Valuation
-- Appraisal of Local Retail Properties
-- Appraising Convenience Stores
-- Analyzing Distressed Real Estate
-- Evaluating Commercial Construction
-- Appraising Distressed Commercial Real Estate
-- Fundamentals of Separating Real Property, Personal Property, and Intangible Business Assets
Residential Courses & Seminars
-- Course 102-Applied Residential Appraising
-- Narrative Report Writing Seminar (residential)
-- HUD Training session local office for FHA appraisals
-- Familiar with HUD Handbook 4150.1 REV-1 & other material from local FHA office.
-- Appraiser/Underwriter FHA Training
-- Residential Property Construction and Inspection
-- Numerous other continuing education seminars for state licensing & AI
Appraising Waterfront and Lakeshore Property
Speaking Engagements
-- Bankers
-- Auditors
-- Assessors
-- Relocation (Panel Discussion)
Agenda Page 51
26
ADDENDA TO APPRAISAL REPORT
Agenda Page 52
27
Agenda Page 53
City Administrator’s Update
March 12, 2013
GENERAL ADMINISTRATION
5964 Main Avenue NE Lease: The Soccer Association’s architect has been coordinating and
discussing required improvements with Building Official Heins. The Association expects to have
cost estimates from the architect the week of March 18.
Fraser Steel: The development and assessment agreements have been finalized and are
currently being circulated for execution.
STMA Arena: Primary Arena Board topics have been: roof, 2013/14 rates, assistant manager
position, and 2nd Sheet Feasibility. The revised Ballard King report has been distributed to the
Arena Board members and the YHA president. The Arena Board intends on discussing the
report at their April meeting, reporting to their respective councils/boards, and discussing the
matter again at the joint meeting on April 29.
NW Commercial Park Property Appraisal: It is anticipated that staff will receive the appraisal
prior to the meeting on the 18th and will be able to report to the Council at that time.
Public Building Interconnect: Staff continues to research options to replace the current point-
to-point communication system. Recently staff met with Nextera to discuss a wireless option(s)
and will be scheduling a meeting with the School District to further discuss fiber availability.
Generally, the issues city hall and other public buildings are experiencing are seemingly due to
limited bandwidth and failing antennas. Staff expects to have a recommendation for the
Council by the first meeting in May.
Code Enforcement: To better address the volume of zoning related complaints, staff is working
on a code enforcement policy for Council consideration. Staff will present the plan at the first
meeting in April.
I-94 Coalition Update: The I-94 Coalition has gained a great deal of momentum recently with
interest from State and Federal Legislators. This past Monday, a delegation of Coalition
members visited with the new Department of Transportation Commissioner and MnDOT staff
in Baxter regarding the need for the interstate expansion improvements. On Thursday the 13th,
several members and Coalition members testified at a House Transportation Committee
meeting regarding a bill Representative Fitzsimmons recently introduced (HF 1292) to require
inclusion of additional I-94 lanes from TH 101 to TH 241 in the next 5-year State Transportation
Improvement Plan (STIP). Also, recently, Senator Kiffmeyer introduced a bill (SF 426) to
construct additional interstate lanes from Rogers to Monticello. Furthermore, Congresswoman
Agenda Page 54
City Administrator’s Update Page 2 of 2 March 12, 2013
Bachmann has arranged for a press conference on Monday the 18th at 10:00 a.m. at the State
Office Building (room 181) to endorse the need of the I-94 improvements and its ranking
priority.
Also, the Coalition is planning to hire Carl Kuhl, of the Connolly Kuhl Group, for the next few
months to aggressively manage the Coalition and to coordinate outreach and lobbying
activities. The City has received the 2013 invoice for Coalition member dues/contribution in
the amount of $3,600. The dues are based on $0.50 per capita and are needed to continue
funding the Coalition. Several Wright County Cities, and the County, will be participating.
Unless the Council desires otherwise, staff will pay the fee.
Ongoing Projects/Tasks: Audit, Televising Options, Website Creation
ENGINEERING/PUBLIC WORKS
2013 Street Projects: Plan development and construction schedules are currently being
developed. Staff is working towards a mid-May approval by Council and mid-June bid date.
WWTP: Staff has requested proposals and quotes for various operations and permitting needs.
Staff intends on presenting the proposals at the first meeting in April.
UPCOMING EVENTS and ANNOUNCEMENTS
• March 21, 2013 – WWTP Facility Operational Award. The award will be presented to
the City of Albertville and WWTP staff at an award ceremony at the Marriott Northwest
in Brooklyn Park, at 3:45 p.m. Congratulations to John Middendorf, Gerald Gerards and
Jacob Kreutner on the commendation! Please let me know if any Council Members
would like to attend.
• March 27, 2013 – First meeting of the new Joint Albertville/Otsego Fire Committee
• April 3, 2013 – Day at the Capitol/Schools for Education Equity. In conjunction with
Schools for Education Equity (SEE), STMA will be going to the Capitol on Wednesday
April 3rd to advocate for equity funding for schools and equalization of school property
taxes. Please let me know if you are interested in attending.
• Beginning on April 9, 2013 – The Wright County Sherriff’s Department will be offering a
Citizen’s Law Enforcement Academy. Program information will be distributed to the
Council.
• April 29, 2013 (6:00 PM at St. Michael City Hall)- Joint Cities and School District Meeting
Attachments: (None)
Agenda Page 55