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6.a1 Draft minutes 04-17-2023 Board of Appeal April 17, 2023 A special meeting of the Scandia City Council was held on the above date, in the Community Center Hall of the Scandia Community Center. Mayor Christine Maefsky called the meeting to order at 5:00 p.m. The following were present: Council members Heather Benson, Jerry Cusick, Steve Kronmiller, Michael Lubke and Mayor Christine Maefsky. Staff present: City Assessor Patrick Poshek, City Administrator Kyle Morell and Interim Administrator Anne Hurlburt. The purpose of the meeting was to conduct the annual Board of Appeal and Equalization for 2023, for taxes payable in 2024. Poshek made opening comments about the assessment process. Poshek explained that a value increase does not correlate directly to an increase in property taxes. The sales that occurred between October 1, 2021 and September 30, 2022 are used to establish the January 2, 2023 assessed values. Closed sales after September 30, 2022 will be used for next year’s assessment. All sales are adjusted for time, up or down, to make the process more equitable. The county and the MN Department of Revenue review sales ratios. The board has the power to make adjustments, as long as the changes are not more than 1% of the total value of the city. The Council heard information presented by the following property owners who appeared in person. • Keith Hacker, 15295 240th St. N. (Parcels 01.032.20.23.0001, 01.032.20.22.0005, 01.032.20.27.0002, 01, 032.20.22.0006, 01.032.20.11.0001). Mr. Hacker stated that the value, which increased by 25%, was excessive due to the conservation easement on the 48-acre parcel. He had an appraiser look at it and he thought the EMV should go down 50% instead of a 25% increase. Poshek requested that Hacker share the appraisal and the easement information with him. Motion by Maefsky, seconded by Benson, to default to the assessor to make any change needed at the county level. Motion passed, 5-0 by voice vote. • Jeffrey Peterson, 12628 182nd St. N. (Parcel 33.032.20.31.0007) stated that the gravel road access through May Township had a negative impact on property values on 182nd St. He requested a reduction in all land values for his and comparable properties. Land value for his property is $642,500; he agrees with the values for the structures. The lot size is 0.575 acres. Poshek recommended no overall changes to the land values. More sales should be reviewed to see where market is going for next year’s values. A few sales are driving the values up for these lakeshore lots. Motion by Maefsky, seconded by Benson, to default to the assessor to make any change needed at the county level. Motion passed, 5-0 by voice vote. • Mark Altman, 13870 202nd St. N. (Parcel 22.032.20.34.0005) said his property value went up 31% in last two years for his 50 acres, 26 acres of which is farmable. The value went up 19% last year, 12% this year. All but one acre is classified agricultural. Mr. Altman explained much of the property is wetland. Motion by Maefsky, seconded by Benson, to default to the assessor to make any change needed at the county level. Motion passed, 5-0 by voice vote. • Bob Lushanko 13287 Mayberry Trail N., appeared to discuss Parcel #33.032.20.44.0014, which is located at 13230 182nd. St. Poshek recommended that the value be reduced from $616,500 to $512,000. Motion by Benson, seconded by Kronmiller, to reduce the value by $104,500, from $616,500 to $512,000. Motion passed, 5-0 by voice vote. April 17, 2023 Scandia City Council Page 3 • Dan Richie, 12880 182nd St. N., (Parcels 33.032.20.43.0011 and 33.032.20.43.0012) said the access to his property, including the condition of the street, affects his value and he does not understand the 11% increase. Poshek said an on-site review of the properties on 182nd should be made for a full understanding of the land values of all the lots. Motion by Maefsky, seconded by Lubke, to make no change. Motion passed, 5-0 by voice vote. • Victor Myers, 14740 185th St. N., (Parcel 35.032.20.24.0003) asked why all the values had increased so much? Poshek said that the property was inspected in 2019. Across the board increases have caused the changes in value, not the specifics of the home. Motion by Maefsky, seconded by Benson, to make no change. Motion passed, 5-0 by voice vote. • Mike Kampmeyer (Freedom Properties of Scandia, LLC), owner of 21070 Ozark Court N. (P14.032.20.43.0014) said he purchased the self-storage facility for $1.2 million in 2021, and the property is now valued at more than $1.5 million. The income from the property is only about $7,000 per year. Poshek explained that he will need income and expenses from the property owner to review to reduce the property value at the county level. Motion by Maefsky, seconded by Kronmiller, to make no change. Motion passed, 5-0 by voice vote. No further appeals were heard. Poshek presented his list of Assessor Recommendations for changes as follows: • Anderson, Bruce C & Lennea M, 23499 Quentin Ave. N. (Parcel 06.032.19.31.0002). Maefsky, seconded by Benson, moved to reduce the value from $763,000 to $706,000. Motion passed, 5-0 by voice vote. • Berquist, Charles C & Alice O, 23881 St Croix Trail N. (Parcel 06.032.19.13.0004). Maefsky, seconded by Cusick, moved to reduce the value from $816,500 to $761,800. Motion passed, 5-0 by voice vote. • Gunderson, William R, 15680 230th St. N. (Parcel 01.032.20.34.0001). Maefsky, seconded by Kronmiller, moved to reduce the value from $565,800 to $497,700. Motion passed, 5-0 by voice vote. • Harold E. Johnson LIV TRS, 18905 Langly Ave. N. (Parcel 31.032.20.11.0068). Maefsky, seconded by Benson, moved to reduce the value from $525,500 to $523,100. Motion passed, 5-0 by voice vote. • Hinz, Gene A & Maria, 13000 182nd St. N. (Parcel 33.032.20.43.0004). Maefsky, seconded by Benson, moved to reduce the value from $847,400 to $764,900. Motion passed, 5-0 by voice vote. • Loya, Gregory E & M Denise Mack-Loya, 13225 182nd St. N, for property at 13230 182nd St. N (Parcel 33.032.20.44.0006). Maefsky, seconded by Benson, moved to reduce the value from $630,500 to $596,400. Motion passed, 5-0 by voice vote. April 17, 2023 Scandia City Council Page 3 • Philstrom, Richard K & Cheryl, 15499 220th St. N. (Parcel 13.032.20.22.0006). Maefsky, seconded by Benson, moved to reduce the value from $491,000 to $453,100. Motion passed, 5-0 by voice vote. • Wheaton, Grant A, 21399 Pomroy Ave. N., (Parcel 13.032.20.42.0004). Maefsky, seconded by Benson, moved to reduce the value from $485,200 to $457,700. Motion passed, 5-0 by voice vote. • Johnson, Margaret B, 21679 St. Croix Trail (Parcel 18.032.19.13.0005). Maefsky, seconded by Benson, moved to reduce the value from $164,500 to $152,600. Motion passed, 5-0 by voice vote. The Board determined that a continuation meeting would not be required. Maefsky, seconded by Benson, moved to adjourn the meeting. Motion carried 5-0 by roll call vote. The meeting adjourned at 6:45 p.m. Respectfully submitted, Anne Hurlburt Interim Administrator