Albert Lea, MN                                                                                                                                     May 18, 2000

The meeting of the Board of Review was called to order at 7:00 p.m. in the City Center Council Chambers by Mayor Marvin Wangen.

ROLL CALL

Present were Board Members David McPherson, Donald Mathison, Ronald Sorenson, Mary Kron, Al Brooks and Mayor Marvin E. Wangen. Absent was Board Member Amundson. Also present were City Manager Paul T. Sparks, Acting Board Secretary Pat Johnson and representatives from the Assessor’s Office.

BOARD OF REVIEW

Mayor Wangen opened a public hearing for the purpose of reviewing and correcting the assessments of the City for the year 2000. He announced that the Board is here to review established values not the dollar amount of the tax. The required notice for this hearing was published on May 7, 2000, and posted in City Hall.

Dennis Distad introduced the members of the Assessor’s Office and stated this meeting was merely to receive requests for review from property owners regarding established valuations. He stated individuals raising questions would be contacted by the Assessor’s Office with explanations on how the figures were calculated. He invited property owners to come into the Assessor’s Office at any time of the year to visit with the assessors and compare values on similar properties. If the owner and the County representative cannot come to agreement, the County will convene the Board of Review to view the property and establish the appropriate value.

Geneva Ausen d/b/a Albert Lea Business and Shipping, 218 E. Clark Street, appeared stating she believed her $47,100 property valuation, a $6,600 increase over last year, was too high. She reported she had spoken with one of the assessors and compared her valuation to other properties on her block. Ms. Ausen stated she had made no major improvements to her building while her neighbors have larger more useable properties, have made significant improvements and, in at least one instance, were not charged for an upstairs rental property while Mrs. Ausen was being charged for the apartment in her building. Mr. Distad informed Ms. Ausen they would review her property.

Jane Johnson, 107 The Fairway, requested a review of her property valuation stating it had increased over $32,000 since 1997. The property is presently valued at $179,000. Mrs. Johnson would appreciate an explanation of how this calculation was made.

Larry Brandt stated he had recently purchased the Star Granite Works, Inc., building at 1006 S. Broadway and the house on the adjacent property at 1014 S. Broadway. The two properties are valued at $66,000. Mr. Brandt stated he purchased the two properties for $18,000, however, he had some equity in the property for unpaid rent therefore raising the actual purchase price to approximately $25,000. He stated the house needs extensive repairs and he was contemplating tearing it down.

James Swenson, 1909 Greenwood Drive, questioned the increase in his valuation. Mr. Swenson stated his house is only 8 years old, he has made no major improvements and it has increased almost one-third over the past three years. Present assessed market value $165,000.

Juanita Palmer, 316 W. College St., requested a review of her property. She informed the Board that the neighborhood is depressed, the house next door is falling down and no significant improvements have been made to her property. In 1996 the property was valued at $45,300 and is presently assessed at $56,800.

Garnice Rasmusson, 2704 Campus Lane, questioned whether the City was aware the DNR took the dam out of Chapeau Lake and the lake is down two feet. Mrs. Rasmusson stated her assessed valued had increased almost $24,000 over the last year and is presently established at $303,000.

Mr. Distad stated the County had received three written requests for review.

Mr. Sparks acknowledged receipt of copies of the three requests and stated the request from the Albert Lea Medical Center for tax exempt status appears to be a legal issue and one that cannot be resolved by this Board.

Dean Moller, County Assessor, stated in speaking with three other counties and the Department of Revenue, it is their understanding that hospitals are exempt, clinics are not.

George Rothmeier, an Assessor’s Office employee, stated the tax was calculated on only the clinic portion of the Albert Lea Medical Center, not the hospital. The clinic taxable market value is established at $4,363,700.

Mayor Wangen stated a written request for reconsideration had been received from Agnes Boss, 1201 W. Richway Drive. Mrs. Boss stated her valuation had increased almost $10,000 from last year and is now established at $146,700.

A written objection was received from S. L. Johnson regarding the $36,400 estimated market value on his property at 1001 S. Broadway. Arlan Tray, Freeborn County Assessor’s Office, stated he had met with Mr. Johnson and reported the property has been for sale for the past four years and the owner has been unsuccessful in locating a buyer.

Mayor Wangen questioned Mr. Distad regarding a date for review of the complaints listed. It was the consensus of the Board that it reconvene at 9:00 a.m. on Tuesday, May 30th, 2000, at the Freeborn County Assessor’s Office.

City Manager Sparks questioned whether property values around Lake Chapeau had decreased due to the DNR drawing down the lake. Discussion centered around the fact that property values have increased substantially the past few years throughout the City, many increasing $10,000 the past year. A bare lot next to the Garnice Rasmusson property at Lake Chapeau had recently sold for $82,000. Employees of the Assessor’s Office did not feel that the lower water level had negatively affected property values in that area.

George Rothmeier presented the Council with a "City of Albert Lea, Market Value Analysis" indicating the average increases in agricultural, residential, apartment, commercial and industrial property from 1999 to 2000. He stated residential property had increased an average of 8.64% the past year.

RECESS: 7:42 p.m.

With no further comments to be heard, Board member Kron moved, Board member Sorenson seconded, that the meeting be recessed to Tuesday, May 30^th, 2000. On roll call vote, all Board Members voted in favor of said motion. Mayor Wangen declared the motion carried and the public hearing recessed.

Filed and attested May 19, 2000.

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Acting Secretary of the Board                                             Mayor