Board of Equalization and Review Minutes – April 9, 2019

MINUTES
LOCAL BOARD OF EQUALIZATION AND REVIEW
CITY OF REDWOOD FALLS, MINNESOTA
TUESDAY, APRIL 9, 2019

Pursuant to due call and notice thereof, the Local Board of Equalization and Review Meeting of the City of Redwood Falls was held in the Municipal Building Council Chambers on Tuesday, April 9, 2019, at 5:00 p.m.

Roll call indicated Council Members Matt Smith, Larry Arentson, John Buckley, Jim Sandgren and Denise Kerkhoff were present. Also present were City Administrator Keith Muetzel, Council Secretary Caitlin Kodet, County Assessor Kathy Hillmer, City Property Appraiser Kimberly Kodet, and City Property Appraiser Brad Zimmer.

County Assessor Hillmer certified there was a quorum with a trained member present.

Council President Smith called the Local Board of Equalization and Review Meeting to order.

City Property Appraiser Kodet briefly explained the estimated market values are determined by using the sales that were included in the sales study dates of October 1, 2017, through September 30, 2018. The state’s acceptable level is 90-105 percent. Redwood County uses a Computer-Aided Mass Appraisal (CAMA) system.

Ms. Kimberly Kodet stated she reviewed approximately 400 residential and commercial properties for this year’s quartile along with properties that had new construction. The City of Redwood Falls is on a 5-year quartile rotation. The median ratio for 82 residential sales in 2018 was at an 87.61 percentile. The average sale price was $146,002. Currently, there have been 18 residential sales in 2019 at a 91.98 percentile.

Ms. Kimberly Kodet stated there were also 4 commercial sales and 1 industrial sale in 2018.

Ms. Kimberly Kodet stated the 2019 Estimated Market Value changes were determined by the time trend, land value schedule, effective age, condition, depreciation, and new construction.

Daryl Rice
719 East Meadow Lane
88-323-2720

Mr. Rice was present to address the board regarding the value placed on his home. Mr. Rice expressed his concerns for the value but declined offers from the County Assessor to perform a visual inspection of the property.

No action taken.

Menno Buller
42 Eastwood Estates
88-106-1070

Joel Buller and Realtor Kara Prescott were present to address the board regarding the land value placed on the Eastwood Estates Mobile Home Park owned by Menno Buller.

Mr. Buller stated the current market value is $432,100 for the land and $181,400 for the building, totaling $613,500.

Mr. Buller would like the Board to take into consideration the values of the two other mobile home parks located in Redwood Falls. He feels Eastwood Estates is overvalued and it is causing a hardship while trying to sell the property.

County Assessor Hillmer and City Property Appraiser Kodet stated they will need some time to gather information before presenting a recommendation to the board.

No action taken.

City Property Appraiser Kodet received an inquiry from the property manager at Homestead Cooperative regarding the property valuation. After further review, Redwood County staff is recommending to adjust the 2019 building valuations as follows to reflect the effective age of the building and to equalize others in the Cooperative.

Homestead Cooperative
400 Fifth Street East #101
88-200-0701

2019 EMV = $73,900
2019 Recommendation = $74,500
Change: Effective age equalization to others in Cooperative.

Homestead Cooperative
400 Fifth Street East #102
88-200-0702

2019 EMV = $64,100
2019 Recommendation = $64,700
Change: Effective age equalization to others in Cooperative.

Homestead Cooperative
400 Fifth Street East #103
88-200-0703

2019 EMV = $80,000
2019 Recommendation = $81,100
Change: Effective age & garage condition equalization to others in Cooperative.

Homestead Cooperative
400 Fifth Street East #104
88-200-0704

2019 EMV = $73,600
2019 Recommendation = $74,200
Change: Effective age equalization to others in Cooperative.

Homestead Cooperative
400 Fifth Street East #105
88-200-0705

2019 EMV = $64,300
2019 Recommendation = $64,700
Change: No heat in garage & effective age equalization to others in Cooperative.

Homestead Cooperative
400 Fifth Street East #106
88-200-0706

2019 EMV = $80,100
2019 Recommendation = $80,800
Change: Effective age equalization to others in Cooperative.

Homestead Cooperative
400 Fifth Street East #107
88-200-0707

2019 EMV = $81,300
2019 Recommendation = $82,000
Change: Effective age equalization to others in Cooperative.

Homestead Cooperative
400 Fifth Street East #112
88-200-0712

2019 EMV = $81,100
2019 Recommendation = $81,000
Change: Square footage of garage equalization to others in Cooperative.

Homestead Cooperative
400 Fifth Street East #116
88-200-0716

2019 EMV = $74,400
2019 Recommendation = $74,200
Change: No heat in garage.

Homestead Cooperative
400 Fifth Street East #130
88-200-0730

2019 EMV = $85,500
2019 Recommendation = $85,300
Change: Went from 48 square feet wood & 80 square feet concrete to 128 square feet concrete.

After board discussion, a motion was made by Council Member Buckley and seconded by Council Member Arentson to adjust the 2019 Estimated Market Values of the Homestead Cooperative Units, per the recommendation of the County Assessor. Motion passed by unanimous vote.

City Property Appraiser Kodet received an inquiry from the property owner at 203 Northwood Drive regarding the property valuation. After further review, Redwood County staff is recommending to reduce the 2019 building valuation to $95,900 due to the basement no longer being finished.

Patricia Peterson Et al.
203 Northwood Drive
88-610-0200

Valuation: 2019 = $25,000 for land value
2019 = $104,100 for building value

Patricia Peterson Et al. was not present to discuss their request.

After board discussion, a motion was made by Council Member Sandgren and seconded by Council Member Buckley to adjust the 2019 Estimated Market Value to $120,900 reducing the building value to $95,900, per the recommendation of the County Assessor. Motion passed by unanimous vote.

City Property Appraiser Kodet received an inquiry from the property owner at 606 Halvorson Street South regarding the property valuation. After further review, Redwood County staff is recommending to increase the land value to $11,000 and reduce the 2019 building valuation to $105,700 to reflect the effective age of the building and to equalize to other apartments that are similar.

Redwood Four LLC
606 Halvorson Street South
88-422-1500

Valuation: 2019 = $10,500 for land value
2019 = $125,000 for building value

A representative from the Redwood Four LLC was not present to discuss their request.

After board discussion, a motion was made by Council Member Arentson and seconded by Council Member Sandgren to adjust the 2019 Estimated Market Value to $116,700 reducing the building value to $105,700 and increasing the land value to $11,000, per the recommendation of the County Assessor. Motion passed by unanimous vote.

County Assessor Hillmer asked for a recess to review Mr. Buller’s request regarding the Eastwood Estates Mobile Home Park.

A motion was made by Council Member Kerkhoff and seconded by Council Member Arentson to recess the meeting at 5:50 p.m. until Tuesday, April 16th at 6:30 p.m. Motion was carried by unanimous vote.