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HomeMy WebLinkAbout05/12/1981 f r r ¢ I A / r / TENTATIVE AGENDA ADJ.REG. SSSION SHAKOPEE, MINNESOTA MAY 12 , 1981 Mayor H4bdck presiding 1 ] Roll Call at 7 : 30 P.M. 2 ] Convene as the Board of Review (bring May 5th handout) at 7 : 30 P.M. 3] Adjourn Board of Review to . . . 4] Agenda Items from May 5th Council Meeting: a] Tax Increment Financing Policy - tabled 5/5/81 (Bring 5i) b] Police Patrol Vehicle Reconstruction (bring 8d) c ] Firemen' s Annual Physicals (bring 8f) d] Bus Service for Shakopee (bring 8g) e ] Proposed 1982-86 Wastewater Treatment Plant (WWTP) Portion of Metro Waste Control ' s Development Program - informational (bring 8h) f] Unbudgeted Capital Outlay Purchase Exceeding $300 (bring 8i) g] League Action Alert - Revised Governor ' s Budget with a new 8% Levy Limit Proposal - Direct staff to contact the Governor and our legislators emphasizing our opposition to the Governor ' s levy limit proposal (bring 8j) i ] Engineering Department Monthly Report (bring 10a) 5] New Business : a] Mn. DOT re : Minnesota Ride Share b] Tables for Highrise c] Legal Counsel for Cable Communications d] Authorize payment of the bills 6 ] Other Business : a] I received no comments regarding informational items on the May 5th agenda. Is there anyone who is concerned about these items? b] c ] • d] 7 ] Adjourn to Tuesday, May 19th at 7 : 30 P.M. John K. Anderson, City Administrator If you do not have any of the above information, please call . Ofbltire, CITY OF SHAKOPEE At: r; €f 129 East First Avenue, Shakopee, Minnesota 55379 MEMO TO: Board of Review FROM• Larry Martin, City Assessor SUBJECT: #27-910-005-0 & 27-910-002-0 - 650 Valley Park DATE: May 8, 1981 Introduction: Kawasaki Motor Corporation has requested that the valuation of their Shakopee Research and Development Center be reviewed. Background : Inspection of the property and interviews with Lee Markgraf, Administrative Supervisor, has revealed underutilization of the improvements because of economic conditions this has resulted in a change in highest and best use . (See Attached) Considering a change in highest and best use from research and development to office/warehouse/distribution, the City Assessor would recommend changing the market value of the entire Kawasaki property from $1 , 567,000 to $1 ,374,000. Recommendation: Change value to $1 ,374,000. LDM:plk KAWASKAI MOTOR CORP. Highest and Best Use Analysis The Shakopee Kawaskai facility is a research and development center designed with specific detail given to construction, for the testing of snowmobiles. Along with the testing of snowmobiles, they are involved in the testing of Jet Ski ' s, and the sale and distribution of small in- dustrial engines. Up until recent times the center has proven to be an asset to its corporation, and the extensive partitioning in the work area for test cells ( i . e. Dyno chambers, cold room, accoustic chamber) and their respective control rooms, machine shop , laboratory, mock up and general shop area were all necessary components in the operating plants physical makeup ; however, in recent years we can note that the snowmobile industry has entered into dire financial difficulty. Presently there is a slump in snowmobile production and sales . This has primarily been caused by the lack of snow cover over the last 2 seasons. The slump in sales, due to the lack of snow, has been magnified by the current recession and ongoing inflation. The impact that the snowmobile slump has had on the local research center has been tremendous. Research and development has slowed considerably; there exists a large carry over of old models, and production of new models is not anticipated for the next three years. This is exemplified by a 40% layoff that occurred at the local center on April 6th. All of the above indicates that a transition of highest and best use has taken place, considering that Minnesota does not have a favorable climate for the testing of motorcycles and Jet Ski ' s. (Field tests on Jet Ski ' s do take place here, but they do nct conduct engineering and tests here. Instead they conduct those tests in warmer climates where a year round market exists. ) With the above in mind, the City Assesscr has come to the opinion that the highest and best use of the property, as improved, as of January 2, 1981 , has tranferred from a research and development center to an office/warehouse and distribution center and should be valued as such. KAWASAKI VALUATION Class C - Good Distribution Exterior Walls: Steel frame, brick, block Interior Finish: Dryway, masonary, partitions, good offices Lighting/Plumbing/ Heat Vent & A.C . : Adequate Base Rate 25 .47 Add .47 Cold Climate Add 1 .00 Sprinkler Refined Base 26. 94 26. 94 x 1 .00 Story height x . 916 Floor area perimeter x 1 .02 Current Cost x 1 .03 Local Cost x .93 1980 level * x .93 Depreciation 22 .42 Modified Cost $22 .42 x 38 , 528 sq. ft . _ $863, 797 Indicated Bldg. Value 65 , 280 Fence 22, 896 Paving $951, 973 Indicated Improvement Value *Marshall Cost Index & Trend Multipliers SAY 952,000 Add Land 422,000 1 $1 , 374,000 ( 1108. 1 + 1028 .4) (f„efiti4t7;;N\ CITY OF HAKOPE +',;, 129 East First Avenue, Shakopee, Minnesota 55379 jeJ `1 MEMO TO: Board of Review FROM: Larry Martin. City Assessor SUBJECT: Parcel #27-003-0000-014-0 - 1235 W. 4th Ave. DATE: May 5. 1981 Introduction: The property owner contends the property value is too high Background: In reviewing the market value of this property the City Assessor applied the Income and Market Approach. My findings are as follows: Market Approach $ 99 , 200 Income Approach $105 , 600 The 1981 valuation placed on the property is $72, 105 which would indicate a level of assessment of around 70/ which is below the City wide mean, therefore , I would recommend no change . Recommendation: No change be made LDM:plk INCOME APPROACH To produce an estimate of market value by the income approach, I have located 3 rental properties that have sold within one year of the appraisal date to determine a gross rent multiplier. They are as follows : GRM Sale #1 Grantor: Wiggin Realty Grantee: Arnold Colgrove Date of Sale : January, 1979 Legal : Lot 1 , Block 1 , Wiggin' s 1st Addn. Parcel : 27-094-001-0 Lot Size: Approximately 80 x 150 Terms: Warranty Deed Sale Price: $126,850 ($6, 850 personal property) Gross Annual Rent : $16, 500 Indicated Gross Rent Multiplier 120,000 x 1 . 15* = 8 . 36 16, 500 GRM Sale #2 Grantor: Michael & Birginia Casanova Grantee : Marjorie & Jeffrey Henderson Date of Sale : September, 1980 Legal : Lot 5, Block 2, Minn. Valley 2nd Addn. Parcel : 27-074-012-0 Lot Size: Irregular Terms: Warranty Deed Sale Price : $108,000 ($5 , 700 personal property) Gross Annual Rent : $10, 200 Indicated Gross Rent Multiplier 102, 300 = 10.03 10, 200 *15% is added for appreciation because of construction period. GRM Sale #3 Grantor: Steven Majerius Grantee: James Allen Date of Sale: December, 1979 Legal : Lot 6 & P/O 7, Block 49, 0 .S .P. Parcel : 27-001-355-0 Lot Size: 90 x 142 - •25 x 75 Terms: Contract for Deed Sale Price: $140,000 Gross Annual Rent : $12, 840 Indicated Gross Rent Multiplier: 140,000 25/* = 8 . 18 12 , 840 The most consideration is given to Sales #1 & #3. Sale #2 has been disregarded because it is not considered to be receiving market rents. To further check the accuracy of the Gross Rent Multipliers represented, the appraiser located 13 apartment sales outside of the city occurring in the 1979-1980 period. They indicated an average G.R.M. of 7 .85. Given the above information it is the appraisers opinion that an appropriate G.R.M. would be 8. The reported gross rent of the subject is $13, 200 per year ($275 x 4 units x 12 months) . Therefore the market value can be estimated as follows: $13, 200 x 8 = $105, 600 Indicated Market Value *25% is deducted because of financing . R 3 MARKET APPROACH To produce an estimate of market value by the market approach, I have located comparable properties that have sold v,ithin one year of the appraisal date to make a market comparison. The reader will note that they are also used in the Income Approach. Sale #1 Grantor: Wiggin Realty Grantee: Arnold Colgrove Date of Sale : January, 1979 Legal : Lot 1 , Block 1 , Wiggin' s 1st Addn. Parcel : 27-094-001-0 Lot Size : Approximately 80 x 150 Terms: Warranty Deed Sale Price : $126, 850 ($6, 850 personal property) Gross Building Area: 4, 160 square feet Sale #2 Grantor: Michael & Virginia Casanova Grantee : Majorie & Jeffrey Henderson Date of Sale : September, 1980 Legal : Lot 5, Block 2, Minn. Valley 2nd Addn. Parcel : 27-074-012-0 Lot Size : Irregular Terms : Warranty Deed Sale Price : $108,000 ($5 , 700 personal property) Gross Building Area: 2, 016 square feet Subject Sale #1 Sale #2 Sale Price N/A 126,850 108,000 Less Per.Prop. 6, 850 5, 700 Adjusted Price 120,000 102, 300 Date of Sale Jan. 1980 Jan. ' 79 Sept ' 80 Adjustment x 1 . 15 T 1 . 11 Adjusted Price 138,000 92, 162 Garage None 4 single 2 single Adjustment - 7, 680 - 3, 840 Adjusted Price 130,320 88, 322 Size 2 , 752 sq. ' 4, 160 sq. ' 2, 016 sq. ' Adjustment + 15% - 10% Adjusted Price 149 , 868 79 , 489 Indicated square foot value $36.03 S39 . 43 Credence is given to Sale #1 because it is a 4-plex unit like our subject INDICATED VALUE 2 , 752 x $36 .03 = $99 , 154 SAY $99 , 200 p4.p%s CITY OF SHA, C) 6 g#'-.- : 129 East First Avenue, Shakopee, Minnesota 55379 w �-11.� i tw ..MEMO TO: Board of Review FROM: Larry D. Martin, City Assessor SUBJECT: #27-015-001-0 - 100 Jackson Park DATE: May 7. 1981 Introduction: Property owner contests change in lot value Background: City Assessor increased lot value from 11 ,400 to 17 ,300 for the 1981 assessment. In reviewing this matter the City Assessor cross checked the lot valuation with comparable properties and found the assessment to be below city wide level . To further cross check this matter, the City Assessor reviewed sales data to determine if the total valuation is uniform. The data indicates that properties inferior to the subject are selling for close to the $82,015 market value of the subject, therefore the City Assessor recommends that no change be made. Recommendation: No change G SALE 1 BUYER: Laurent Builders , Inc . SELLER: Renden Development PROPERTY ADDRESS : 1767 Presidental Lane PARCEL NUMBER: 27-074-018-0 LOT SIZE : front feet 79 . 13 DATE OF SALE: January 1980 SALE PRICE: $16 , 500 TERMS : Warranty Deed SALE 2 BUYER: Donald E . and Shirley O ' Loughlin SELLER: Prairie View Developers PROPERTY ADDRESS: 631 Hennes PARCEL NUMBER: 27-083-005-0 LOT SIZE : front feet 88.7 DATE OF SALE : July 1980 TERMS : Warranty Deed SALE 3 BUYER: Thomas H. and Ann M. Walerius SELLER: Raymond L. and Jane M. Lemmons PROPhRTY ADDRESS : 1934 11th Avenue PARCEL NUMBER: 27-065-021-0 LOT SIZE : front feet 82 DATE OF SALE : September 1980 TERMS: Warranty Deed #27-015-001-0 Subject 1 2 3 Sale Price N/A 16, 500 17 , 500 17 ,000 Sale Date (Jan. ' 80) 1/1980 7/1980 9/1980 Front Feet 104. 95 79. 13 88. 7 82 Price per F. F. N/A 208 197 207 Time Adj . N/A N/A + 1 .075 t 1 . 1125 Adjusted Price 208 183 186 Size Adj . N/A -10% -5% -5% Adjusted Price 187 174 177 Indicated Value 19 , 625 18, 261 18,576 The market value placed on the land is $17 , 300. This would indicate a level of assessment range of 88% to 9b%. Please keep in mind that the depth of the subject lost is greater than any of the comparables and no adjustment was made , therefore, the level of assessment level would be even lower. With the above in mind, the City Assessor recommends no change. SALE 1 BUYER: Virgil S . Mears and Carol J . Mears SELLER : . Leonard J . Mayer and Mary J . Mayer PROPERTY ADDRESS : 1813 E. Shakopee Avenue-Shakopee PARCEL NUMBER: 27-052-038-0 HOUSE SIZE: 1188 sq. ft. GARAGE SIZE : 24 X 24 LOT SIZE: 90 X 164.35 DATE OF SALE: September 1979 SALE PRICE: $85,000 TERMS : Warranty Deed • DWELLING year built / 9 7e �!P X 38 sq. ft. //PP story height -26 .sdc T L no. rooms y no. baths no. bedrooms 7 basement percent �0 M basement fin. c o 6% h 111 heat electrical r built ins rooms carpeted Lot size O X /4 4/.3) GARAGE _ X ‘,/o attached yes (- no single wall double wall wired yes __ ✓ no OBSERVED CONDITION: Exc. Good ESTIMATED MARKET VALUE Fair • SOLD FOR: Poor • DATE SOLD • C- SALE 2 1 BUYER: Gary J . & Mary L. Bongard SELLER : . Norbert F . & Magdalen Geis PROPERTY ADDRESS : 1127 Harrison St . - Shakopee PARCEL NUMBER: 27-040-045-0 HOUSE SIZE : 1232 sq. ft . GARAGE SIZE: 24 X 22 LOT SIZE: 71 X 135 DATE OF SALE : September 1979 SALE PRICE : $84,000 TERMS : Warranty Deed DWELLING ye r built / .74C4 ::-1,-C' X (`/_sq. ft. ,/,2 ,5--) story height ti >P-IT Z. no. rooms - 116, no. baths _ nobedrooms basement percent L k __ basement fin. — . heat _ • f electrical built ins div • rooms carpeted Lot size _ .I_X ° `s . -- GARAGE __ .X _ .j attached yes– ' no single wall double wall – wired yes no —_.__—_. OBSERVED CONDITION: Exc. -- Goad _ 'v j/, L 1 Poor • / ,1 /v � � 1 s SALE 3 BUYER : Carl A. Noterman and Marcella C . Noterman SELLER: _ Bill R. White and Charlotte M. White PROPERTY ADDRESS : 926 Dakota Street - Shakopee PARCEL NUMBER: 27-033-020-0 HOUSE SIZE : 988 sq. ft . GAR.t.GE SIZE : 20 X 22 LOT SIZE : 82 X 164 DATE OF SALE : June 1979 SALE PRICE : $82 , 500 TERMS : Warranty Deed • • DWELLING year built /9 —%Co _X &F s4. ft. 9B8 story height 73 /fUC _ • no. rooms ti 6, I no. baths / --"4111411111,11111111111.111111111111\a„s _ no. bedrooms 3 basement percent /00% r j T_' 10/P4 basement fin. _ ; i heatt0 ii--14' t ...D if electrical .t3.f't��hr., built ins _ Of i rooms carpeted .,,w. Lot size g402. X /6 y q 70 .570) GARAGE 0?0 X o>d='/y0 E 9J?3O attached yes �' no — ....iri single wall / double wall wired yes ✓ no OBSERVED CONDITION: Exc. L----- Good /Good _ ESTIMATED MARKET VALUE do. 590 Fair _ SOLD FOR: 3.3, 500 Poor _— ___.—___ DATE SOLD 7/7- 7J i • C s SALE 4 BUYER: Gerald and Sharon Beer SELLER : . Laurent Builders , Inc . PROPERTY ADDRESS : 1767 Presidential Lane - Shakopee PARCEL NUMBER: 27-074-018-0 HOUSE SIZE : 1810 sq. ft . GARAGE SIZE : 24 X 26 LOT SIZE: Irreg. DATE OF SALE: Feb . 1980 SALE PRICE : $111 , 980 TERMS : Warranty Deed DWELLING year built '7 —X sq. ft. l4;1/0 . �,�,�� story height /'"ti • no. rooms ti _ no. baths no. bedrooms X40 basement percent „ basement fin. heat electrical built ins < f rooms carpeted . � Lot size — X � An GARAGE ' �X attached yes G— no single wall double wall wired yes —_ no OBSERVED CONDITION: Exc. Good Fair • Poor C.• SALE 5 BUYER: Michael & Patricia Pennington SELLER : Laurent Builders, Inca PROPERTY ADDRESS.: 1722 Presidental Circle - Shakopee PARCEL NUMBER: 27-074-025-0 HOUSE SIZE: 1344 sq. ft . GARLGE SIZE: 24 X 24 LOT SIZE: Irreg. DATE OF SALE : September 1980 SALE PRICE : $96,000 TERMS : Warranty Deed DWELLING year built / 98'0 X sq. ft. - 34ti story height P , no. rooms nobaths no. bedrooms basement percent basement fin. heat electrical built ins _ rooms carpeted Lot size X GARAGE y X attached yes V no single wall double wall wired yes ___ _no • OBSERVED CONDITION: Exc. Good Fair Poor . C- SALE 6 BUYER: Loren R. Bartelt and Joyce D . SELLER: _ LeRoy R. Menke and Darlene A. PROPERTY ADDRESS : 720 Menke Circle - Shakopee PARCEL NUMBER: 27-083-049-0 HOUSE SIZE: 1231 sq. ft . GARAGE SIZE : 24 X 33 5 X 9 LOT SIZE : 85 . 55 X 134.02 DATE OF SALE : November 1979 SALE PRICE : $86 ,000 TERMS : Warranty Deed DWELLING year built 7 X sq. ft. / - story height r no. rooms t no. baths / no. bedrooms basement percent basement fin. _ , heat electrical -- — built ins rooms carpeted Lot size �;' X GARAGE r' X attached yes ` no single wall double wall _ wired yes no OBSERVED CONDITION: Exc. Good Fair Poor �� G SALE 7 BUYER : Fred E. Krueger and Mary C . Krueger SELLER : Ronald H. and Beverly Duesterman ee 1028 So. Pierce Street - Shako PROPERTY ADDRESS: P PARCEL NUMBER: 27-021-016-0 HOUSE SIZE: 1636 sq. ft . GARAGE SIZE: 26 X 26 tuck LOT SIZE: Irreg. DATE OF SALE: January 1980 SALE PRICE: $84,000 TERMS : Warranty Deed DWELLING year built / ,�X X scle ft. story he it'4 CVO t- //‘A no. rooms /O no. baths _ no. bedrooms basement percent R ■ - basement fin. '^ r heat '„' 11111'1 electrical ` built ins rooms carpeted " .w Lot size X •j _ s.,_.- R GARAGE cglo 71A C/C_ attached yes no single wall double wall wired yes - no OBSERVED CONDITION: Exc. , Good • Fair Poor G SALE 8 BUYER: Gary K. Indrehus SELLER : . Charles D . and Helen R. Norton PROPERTY ADDRESS : 1743 Presidental Lane - Shakopee PARCEL NUMBER: 27-074-015-0 HOUSE SIZE : 912 sq. ft . GARAGE SIZE : 24 X 26 LOT SIZE : 85 X 135 DATE OF SALE : July 1980 SALE PRICE : S83 ,000 TERMS : Warranty Deed n / 7L S-� �. DWELLING year built 7 7 ;)1 X c=% sq. ft. 7/ story height I no. rooms no. baths Y _ no, bedrooms basement percent / basement fin. heat electrical built ins rooms carpeted Lot size eve x /3„ GARAGE •V �X attached yes no /� � single wall ; double wall °'*k� wired yes no OBSERVED CONDITION: Exc. Good Fair Poor . r SALE 9 BUYER : Ronald L. Sacks and Janie S . Sacks SELLER : _ Dennis E . and Alice L. Furtney PROPERTY ADDRESS : 1749 E . Shakopee Avenue - Shakopee PARCEL NUMBER: 27-031-025-0 HOUSE SIZE : 1311 sq. ft . GARAGE SIZE : 23 X 23 LOT SIZE : 80 X 137 . 5 DATE OF SALE: May 1980 SALE PRICE : $81 , 950 TERMS : Warranty Deed DWELLING year built / / 7� /�� w X VG sq. ft. /-// story height no. rooms ti no. baths _ no. bedrooms basement percent Ipiliisifiiiiifsr II 4basement fin. I 11,[ • r heat electrical r 1' ` built ins r .� /• 1 f ; f ''�1;; • fe4 rooms carpeted _.. Lot size ?O X /. �6 AVO GARAGE X ��� :.�:. attached yes v no single wall / double wall / / %• C54re tier wired yes no OBSERVED CONDITION: Exc. Good ESTIMATED MARKET VALUE i5—ann Fair SOLD FOR: Poor DATE SOLD ire c.r rPee CITY OF SHAKOPEE rA ti, , t"1 129 East First Avenue, Shakopee, Minnesota 55379 i•Ii"� � r4 MEMO Board of Review (0// TO: FROM: Larry Martin, City Assessor , SUBJECT: #27-015-001-0 - 100 Jackson Park Supplemental DATE: May 11 . 1981 Introduction; On May 11 , 1981 , the City Assessor was able to inspect the interior of the subject property. Background: Inspection revealed a 50% basement completion. Field card indicated 100% basement finish. Adjustment equals: 728 sq. ft. x .50% x $5 x . 85% = $1 , 547 Recommendation: Lower building value by $1 , 550. 4f4.4F r. CITY OF SHAKOPEE hs . r 129 East First Avenue, Shakopee, Minnesota 55379 a ,17� MEMO TO: Board of Review FROM: Larry Martin, City Assessor SUBJECT: #27-918-009-04 - 2021 Marschall Rd. DATE: May 12 , 1981 INTRODUCTION : Petitioner has brought forth 4 areas of concern of which he asks consideration be given. BACKGROUND : The first area of concern that the property owner discusses is depreciation. Under depreciation the property owner addresses the cities depreciation table of which he states "the assessor' s cost table shows no depreciation for excellent grade homes, which mine is classed at , for twenty years . " If this were true I would be concerned also ; however the categories listed in our depre- ciation table (page 15 of 1981 Board of Review booklet) reflect the condition of the improvement not the quality, therefore, any grade home can fall within the un-sound to excellent range depending on the age. In regard to the subjects roof damage, the City Assessor concurs with the property owners claim. Inspection revealed that some water damage has occurred. Discussions with local builders in- dicated that it may be possible to get by with the present roof for a few years which would tend to substantiate the 90% depre- ciation. Adjusting for a 1.5% uniformity factor indicates a proper adjustment of $3,060 . The property owners second and third areas of concern are in regard to the properties lot valuation. The first point made is the properties location on Co.Rd. 17. In developing the valuation schedule (see page 14 of the handout ) for residential acreage, sales on Co.Rd. 17 were used and support it ' s valuation indications. The second point made states "the assessment rate for land is the same as it is for exclusive subdivisions like Deerview Acres, Hillside Estates and other. " Actually the improved lot values are $21 ,000 in the MtNTiou4d platted tracts The valuation schedule for the plats in question was developed from actual sales within each one , the range is from $11 ,000 for an improved lot in Killarney Hills et Tu $21 ,000 for an improved lot in Deerview Acres, Hillside Estates, Horizon Heights and Riverview Estates . Thirdly the property owner addresses his lot value in relationship to other jurisdictions. Here the property owner states that the rest of the County is at $15,000 for 2.5 acre tracts improved. This is true with the exception of Savage, Prior Lake, and Shakopee where 2 .5 acres improved are at $20,000. This would seem to be quite a difference , however, we found last year, when making the Shakopee/Jackson comparison that although the lot values were lower the building values tended to be higher, which gave a fair balance. Please note on page 18 of your looklet the 2 year residential study indicates Shakopee close to the center. In the fourth area of concern the property owner addresses the valuation added for a fireplace and brick trim. When the house was originally built a fireplace was installed; however it was replaced with a free standing wood burning stove, which is non- taxable. There is however, a sizeable amount of brick trim around the stove and a brick chimney. If this were a complete fireplace a figure of $1 , 500 would have been placed on the rolls. The $500 allowance is to account for the absence of a firebox. In regard to the second point discussed brick trim the property owner states that the presence of brick has not been accounted for on Gene Brown' s, Jerry Wampach' s, and Chuck Norton' s houses. This is true with the exception of Chuck Norton' s house. The brick trim was picked up during 1980' s 25% inspection for the 1981 assessment. This is a valid concern because both Gene Brown' s and Jerry Wampach ' s homes have stone or brick exterior walls. The problem rests within our cost schedule where there is no factor for brick or stone houses. This should probably be looked at for the 1982 assessment to see if an adjustment should be used. Gene Brown purchased his home in Nov. of 1979 for $104,000. The 1981 market value is $102, 890, an approximate ratio of 99% is indicated, therefore, no change is recommended on the brick homes for the 1981 assessment. RECOMMENDATION: Lower the building value by $3,060 for physical depreciation. LDM:plk RETURN TO : CITY OF SHAKOPEE ASSESSOR 129 E . 1st Ave . , Shakopee , Minn . 55379 I WISH TO APPEAR BEFORE THE BOARD OF REVIEW RELATIVE TO MY ASSESSMENT FOR THE 1981 ASSESSMENT YEAR. j : PARCEL It 9— o G( /rI 9//) SIGNED : ) iNt - �` L-- • n i PHONE NO . �,474/1 ; •-`3 J (� ADDRESS : , Honorable Board Members : Relative to my 1981 real estate assessment, I have the following concerns. 1. DEPRECIATION: The Assessor's cost table shows no depreciation for excellent grade homes, which mine is classed at for twenty years. He has indicated the market does not show any. It should be pointed out that when V.A , F.H.A or any lender appraises a residence for guarantee of mortgage commitment, It is appraised " as repaired " In other words if a property sells for $ 100,000.00 and is recorded as such, it could very well have had $ 20,000.00 worth of repairs done on it to be able to sell it at $ 100,000.00. This cost comes out of the sellers pocket and there is no indication of it on the certificate of real estate value which the Assessor uses to base his market value bench mark on. In the case of this poor affiant dwelling, the roof cover is 90% shot because of the July 15, 1980 hail storm and it has not been repaired nor can it be until I can gather together the $ 4,000.00 it takes to repair it. It is evident what condition it is in if some one would care to take a look at it. Based on physical depreciation ( actual ) and on a comparative basis the depreciation this property suffers from is ; Replacement cost; $ 4,000.00 90% depreciated = $ 3,600.00 2. LOCATION: I am concerned about the land value rate being charged for properties on C.R # 17.. This is a very heavily traveled minimum control artery. The life expect– ency of a family pet on this road is about two weeks. Yet, the assessment rate for land is the same as it is for exclusive sub divisions like Deer View Acres, Topics Hillside Estates and others. 3. UNIFORM ASSESSMENT 'WITHIN DISTRICTS: I am concerned with the assment rates being used in districts with County assessment contpacts. The rates, particulary the land assessment rates are considerably lower. This renders my assessment defective also as the county levy is part and parcel of my tax dollar. I have included the county assess– ment land rate sheet for your review. Based on this, My tract should be at $ 15,000.00 and not $ 20,200.00 "�1111oa t t4' th.,. 4. UNIFORMITY WITHIN THE DISTRICT I am concerned my fire place is on the tax rolls for 51,000,00 when in fact the fire place has been removed and a wood stove has been installed. To my knowledge, no other wood stove or wood stove chimney is on the tax roll-S. I am concerned that $ 2,830.00 in brick is on the tax rolls when I find Gene Browns, Gerry Wampachs Chuck Nortons and many others are not on the tax rolls and the Assessor has them classed in the same grade mine is in. Poor petitioners plea: Based on the information at hand one can only conclude that poor petitioners assessment is defective in the amount of: 1. Physical depreciation $ 3,600.00 2. Districts uniformity and location $ 5,200.00 3. Uniformity within disrict 5 3,830.00 TOTAL REDUCTION REQUESTED 5 12,830.00 1981 estimated market value set by Assessor 5 88,700.00 1981 estimated market value requested by poor petitioner $ 75,870.00 Poor petitioner : LeRoy Houser P. I will not be attending board of review however, I would appreciate your review of my concerns and consideration given to my request. 1, -- ues continued a al ^E d✓ I Residential - Acreage 0 to 2.499 Ac $12500 t 2-.5 t_0__4.999 Ac 15000 5.0 to 9.999 Ac 1st 5 acres 4 15000 Balance 4 $1600 per acre up to a value of 19,500 Unimproved Building Site $1600. per acre(M n of $7500 (per site Residential - Platted Lots Platted Lots $12500 to $15000 Unimproved Building Site $7500 to $12500 Lakeshore Unimproved $200 per front foot Improved $300 per front foot . 1 . - - i.....-- — ' *- ' ---..4.•ii-. -- -•-i- ”-.-• --- --0,-"-"*"` , • •. .;., . '... '0*(6. "6 *1'0'4'4"litlEtMle -- , ---"'', ''''. ` "— *- . . - :, ,. .".::!:t.i•••:iz.tils”-i:;;I:::::?,!-'-iii,* c• ,,, , '1. • , .:- .,- ' ..,•• . • • ,Iia• :• _-...,., -. . . ..,.._....r.1.-4iai ...-......-__, .::iiiLi,i ;;;, ,ii.,..:.11&...tif..4. :,,11..• . . ' . ._ . -,,,,..,,:,„:..„1:4'.. ' 4' it ,. '-':„.it• ...'::"„:"; 7 G. F. JUERGENS CONSTRUCTION (DATE 2231 Hillside Drive 5/12/81 SHAKOPEE, MINNESOTA 55379 NUMBER ^ . , .i."•;:t.t:itiitir:.:.::,; .... ' \.. 1 1.r434- 4. . :::'::it•:::::,...:, Phone 445-4624 #4W414W°40 :Iiiit4:gl',*1,401; • •Leroy Houser • 2021 Marsckall Rd. Skakopee, Ma. 55379 • • :....s..,;;s7.....]:•.-ss.i:7 -. 0,,, ,4:' ,:,t,„p7.,tri ... .. . .:!.,,,, ..'''...4 TERMS: ,fIr..77141');17177,4 PLEASE DETACH AND RETURN WITH YOUR REMITTANCE $ --_ DATE CHARGES AND CREDITS BALANCE BALANCE FORWARD 5/12/41 Estimate for removal and replacement of 18 square of Timberline skingles 'i411411.4tV.,:gti: A. 4144 * damaged in storm. ,:-• ;.,,i,::::.-r--;:: Labor and materials $ 4,000 06 tieittz:`Pi4iii;, all ii,„:,.:,;,,,;,!:i.;.•=%, , Cyoui PAY LAST AMOUNT IN THIS COLUMN ' . G. F. JUERGENS CONSTRUCTION itr4-vtlioPr.t47610 i,l, ' .:,....'.--•..-• ..,-,7-:::',:77, •—.771,z-7:iiiffr- iliiiiiiiir:', ..': -.•---`",-.;i7itisr::1,'"7---Foirrr-Icil:Tr,1-- --7:-- i-,-%7'-- . let., -,iis,,t4f. ,,:411. '• ** . :' ' . ''' . .-.-",..-1 .. ;.- ' ,.**--.'"*,& ,',,,,,,..V/Z=7,444*, '.... -,•-'-' '.',"- • :' "• . ,• . . , ... . . - ' l'itreri:::,..i.,:,!,::::;:iti .', .....:,..*:,:...:;.i,l,i-:+:..:li,... •.:!' ; . . . ,... - t, . . : 7.,„ . ' .' r..:: ; , . ' •••:'':.* : . --:.'.'-'•'•:i: :'iiqtit:Si.:ii ;.::'i..ii..!*iii1V.::'iill!II-I'...;;;..1.. '',,::-:.: :;;:'::iii..:•i'...7:. 1.1.:,:i.;.'. .g.!..1*'''' : . :.;,,,;..--!.:P..',. .:0...: - . ::..., .7.- .•:,,, •-• - ..: .' ., .$ .;:,,,,11. ::;,,,,iit •,1,119::.SI- t.•: :;.!;,,.: „:t 4.:,;:!;;,....., • ',..14i ,„ .A.'4,, ' '' f., ' , .174.•" Iiiii4;4444'* 4:040,4411/04* ' ' '' ' ' 1 .' ' '''''' ' ': I' 10/17 '::/ • ' *Sgi.111.1.91iitt4 "1.4k0 '; .til:,"1: .-ifeM .t..-4;fiv...• ;,... l'''' . '-...'; • :•,',..it ,. . ' .. : ' .tit' .:,1:,-. f.. t.,' ' 011 t!Ottt:',..''. .,, * ,,' , 0, CITY OF SHAKOPEE C . 129 Fast First Avenue, Shakopee, Minnesota 55379 mss•4. o MEMO TO: Board of Review FROM Larry D . Martin, City Assessor SUBJECT: #27-904-007-0 - Peavp,y DATE: May 12 , 1981 Introduction: Property owner requests additional depreciation be allowed for economic obsolescence. Background: Owner contends that economic obsolescence factors should be greater. City Assessor has referred this matter to the State Property Equalization Department to render an opinion. I therefore recommend no action be taken at this level . Recommendation: No action be made . LDM:plk CITY OF SHAKOPEE ASSESSOR 55379 ETURN TO : Shakopee , Minn . 129 E . 1st Ave . FOR THE HE BOARD OF REVIEW RELATIVE TO MY ASSESSMENT WISH TO APPEAR BEFORE T , , �g 980 ASSESSMENT YEAR . �/ ... 02 SIGNED : ► f. ► AI"' ' ADDRESS : ___J ,��A �� w' 'HONE N0 . MEMO TO: File FROM: Larry Martin, City Assessor RE: K-Mart Distribution Center Construction Contracts DATE: April 30, 1981 On April 30, 1981 the Ass ' t City Attorney Mr. Rod Krass and myself met with H.C . Brown and Chuck Yessian of K-mart Corp. Also present were members of M.A. Mortensons Co. staff. The purpose of this meeting was to review construction contracts relating to the K-mart Distribution Center. In reviewing the contract files , we found that Mr. Browns reporting of construction costs , in this letter of January 27 , were quite accurate with the exception of a few adjustments made after his report . After reviewing the contract information a discussion regarding the quality of the improvements took place , ie . interior warehouse painting, footing size , floor structure , structural reinforcing and structural steel . Mr. Brown then addressed the long term benefit rationale that justifies the extra expense of quality construction. A discussion of the Certificate of Occupancy then took place between the Ass ' t . City Attorney, H.C . Brown and Mortenson' s staff. We then talked about dates when contracts were initiated. The contracts were initiated in roughly 4 separate series in the period of 4-79 to 5-80; construction actually started in the latter part of 1979 . This would indicate 100% level close to the January 1st assessment date. LDM:plk K-mart Valuation Cost Approach #27-076-001-0 To estimate the Market Value of the improvements to the K-mart site, the appraiser has reviewed actual construction contracts, in the files of M.A. Mortenson Co. , the projects general contractor. After reviewing the contracts the appraiser cross checked there accuracy by way of the Marshall Valuation Service. During the project analysis, a great deal of concern was given to the accuracy of the service in relation to a warehouse improvement of this size; however, in December of 1980 a revised garages, lofts, industrials and warehouse calculation section which specifically addressed distribution warehouses was provided. Also, in the segregated section the sprinkler costs were expanded to represent buindings as large as 1 ,000,000 sq. ft . To insure that a proper floor area perimeter multiplier was used the appraiser contacted the service ' s headquarters in Los Angeles for a special calculation. The results of my findings are as follows : K-mart Distribution Cost Approach to Value Part I Verified construction costs Previous Rep. Actual To Date M.A. Mortenson, General Cont. $ 4, 615,099.47 $ 4, 928 , 641 . 57 Sub Contracts 15,450,387. 59 15 , 574, 269 .88 TOTAL 20,065,487.06 20, 502, 911.45 (or more) City of Shakopee Contracts Barbarosa - Site Work $ 1 ,529 . 700.00 Crowley Fence-Fencing 64,835.00 Estimate - Landscaping 75,000.00 -(not done-to be let; TOTAL $ 1 , 669, 535.00 $ 1 , 669 , 535.00 Permits and Fees paid to date: Site Permit $ 24, 921 .00 Foundation Permit 8, 238. 55 Building Permit ( $15, 359.00) 31 ,832. 60 Included in Bldg. Permit Plan Check Fee 9, 983.35 Grade Survey 6.00 Park & Land Dedication Fee 21 , 394.00 4" Water Tap 600.00 2-12," Water Taps 3, 600.00 26 SAC Units 11 ,050.00 State Surcharge 3,000.00 13 Additional SAC Units 5, 525.00 Engineering Fee 6,007. 58 Adjusted Permit Fee 6, 976.36 TOTAL $ 133, 134.44 $ 133, 134.44 $22, 305 , 580. 89 Less Landscaping 75 ,000.00 Less (Storm Damage) 119 ,181 . 94 Indicated B1dg.Value $22 , 111 ,398. 95 Completion Percentage @ 95% $21 ,005, 829.00 Add Land ($12,000 x 95A) 1 , 140,000.00 Indicated Value $22, 145, 829 .00 ROUNDED $22 , 100,000.00 The reader will note that no adjustment for level of assessment is made. The reason being nc accounting of indirect ccsts were made . It is the appraisers opinion that cne •would roughly balance the other. Cost Approach to Value Part II Marshall Valuation Service The subject structure is considered to be a Class 5 Good Distri- bution Center characterized by good steel frame, siding and fene- stration, some good offices and interior finish, distribution areas, good lighting and plumbing, forced air heat. The Valuation is as follows : Base square foot rate 19. 67 Add for cold climate .42 Add for sprinklers . 68 20.77 Adjusted Base Rate 20.77 Height Multiplier 1 .382 Floor area perimeter multip. . 839 Current Cost Multiplier 1 .02 Local Cost Multiplier 1 .02 25.05 Modified Base Rate 25 .05 Jan. 1980 Actual Cost . 93 LevIl of Assessment . 90 Partial Completion . 95 19. 91 e I 1 , 110, 225 Total square feet 19. 91 Assessment Rate $22 , 104, 579. 75 Indicated Bldg. Value 440,476. 12 Add Yard Improvements 50,065 .00 Add Railroad Spur $22,595, 120. 87 Indicated Improvement Value 1 , 140,000.00 Add Land-95 acres @ $12,000 $23, 735, 120.87 Indicated Value $23, 700,000.00 ROUNDED CORRELATION: A range of value of $22, 100,000 to $23, 700,000 is indicated, or an approximate 7% difference. Becuase the valuation indication in part one is based on actual construction costs, and the valuation in part two required an extensive amount of adjustment, it is the opinion of the appraiser that weight should be given to the valuation put forth in part one . I Indicated Assessors Market Value of subject property; Twenty Two Million One Hundred Thousand Dollars $22, 100,000.00 Allocation: $ 1 , 100,000 Land 21 ,000,000 Improvements $22, 100,000 Total • - Minnesota TA, ° Department of Transportation District 5 '�ti a � 2055 No. Lilac Drive OF TW- Golden Valley, Minnesota 55422. April-30, 1981 (612) .ri45 3761 Honorable Walt Harbeck • Mayor of Shakopee 1305 West Sixth Avenue Shakopee, Minnesota 55379 Dear Mayor Harbeck: • Funding for the "Minnesota Ride Share" Program is in trouble in the Legislature. Mn/DOT's efforts to encourage and facilitate increased ridesharing would virtually come to a halt without this funding and one of the few practical solutions to our energy and transportation management problems would be curtailed. Since the inception of the Ride Share Program in November,- 1980, many car and van-pools have been formed. As the cost of gasoline increases, .the formation of car and van-pools will accelerate. In the event of an energy emergency, it is the only alternative at the present time that we have to keep the business community functioning. I feel that the Minnesota Ride Share Program is most desirable for the State and the communities in the Metropolitan Area. If you concur in this assessment, please let your legislators know that you think the Minnesota Ride Share Program should be an ongoing program. Sincerely ., W. M. Crawf d, P.i. District Engineer WMC:bn • • • An Equal Opportunity Employer ,s b MEMO TO: John K. Anderson, City Administrator FROM: Jeanne Andre , Administrative Assistant RE: Tables for Highrise DATE: April 8 , 1981 Introduction The Mayor sent a letter to the Scott-Carver Economic Council requesting use of tables acquired by them under a federal grant for senior citizen activities . Attached is a copy of the response by Judson Kenyon, Director of the Scott-Carver Economic Council . Background Mr. Kenyon reported to me that the tables and chairs were purchased under a grant received by Scott-Carver Economic Council approximately 12 years ago. Their records on this grant are very sketchy. As there is no official correspon- dence indicating the tables were formally given to any other body, Mr. Kenyon assumes the Economic Council is still in control of the tables and offers use of the tables until the end of the year. He explained that the initial offer is for a short term in case other details about the ownership of the tables should surface . Ruth Gronneberg, Director of the Congregate Dining, inquired and determined that the chairs are now in storage at Public Utilities and the tables are in storage at the First National Bank Community Room. The tables have been used occasionally when bank tables generally used were needed for other purposes . Alternatives 1 . Pursue Mr. Kenyon' s offer to use the tables . 2 . Purchase tables with $450 donated by Rotary Club. JA/jms . . Scott-Cautuek 2eoote Coue , glie. Corporate Officers: Sixth and Oak CAP Wallace Ess-Chairperson CARVER, MINN. 55315 Chaska Margaret Brown-Vice Chairperson Phone: 448-2302 Chaska Sheila Hyde-Secretary/Treasurer COMMUNITY ACTION New Prague PROGRAM Mr.Judson L. Kenyon Executive Director May 5, 1981 Walter Harbeck, Mayor City of Shakopee Shakopee, MN 55379 Dear Mayor Harbeck: I am writing in regard to your letter of April 10, 1981 in which you outlined the City's involvement and commitment to SCEC's Senior Congregate Dining Program located at the new Senior Multipurpose Center complex. In reviewing past records of grant awards and inventory property listings of equipment purchased by the grant some 12 years ago, I find it difficult to come to a definite conclusion as to the actual current ownership of the tables in question. I can only draw the following conclusion from what records I have looked at. I find there are no letters or agreements on file at SCEC which transfers ownership of the tables involved. I am certain that there were verbal communications and very likely written correspondence, however since there now appears to be no written transactions and the people involved in the project 12 years ago are no longer involved, I have to conclude that the rightful ownership of the tables is still SCEC's. Having reached that conclusion I find that SCEC would certainly encourage the use of the tables in the Senior Congregate Dining Site at the Senior Multipurpose Center complex and this letter will serve as SCEC's permission to use the equipment at the site until December 31, 1981. This will allow time for all parties involved to determine the rightful owner of it if it's not SCEC and also to formulate a new agreement for the use of the equipment for next year's program. If I can be of further assistance please do no hesitate to contact me. Sincerely, �u. c.� fi .�(-46-44A, n L. Kent' Ec Executive Director MAY 198 c.c. Jean Andre Peg Subby titY Of $140 "An Equal Opportunity Employer sc MEMO TO: John K. Anderson, City Administrator FROM: Jeanne Andre, Administrative Assistant RE:_ Legal Counsel for Cable Communications DATE: May 7 , 1981 Introduction and Background The City Council authorized the hiring of Mr. Adrian Herbst to draft a preliminary and final cable communications franchise ordinance at its April 28 , 1981 meeting. Staff has confirmed this arrangement with Mr. Herbst and he has drawn up the attached contract with terms outlined by the City. Requested Action Authorize appropriate City officials to execute contract with Mr. Adrian Herbst to provide legal services in the area of cable communications , not to exceed $5 ,000.00. JA/jms C` AGREEMENT FOR LEGAL SERVICES THOMSEN, NYBECK, HERBST & JOHNSON, P.A. (hereinaft Law Firm) and CITY OF SHAKOPEE (hereinafter City) on this '7 day of May, 1981 , agree to the following terms regarding legal services to be provided in conjunction with the awarding of a cable communications franchise. DESCRIPTION OF LEGAL SERVICES A. Law Firm will review the policies and decisions of City and develop a preliminary franchise ordinance to be used by City together with its request for proposals for a cable communications franchise. 1 . Ordinance will be prepared to conform to Minnesota Cable Communications Board (MCCB) rules and other required laws . 2. Law Firm will attend a joint meeting of the City Council and the Ad Hoc Cable Communications Committee to review and explain the preliminary franchise ordinance and to answer questions . B. Law Firm will review the policies and decisions of City, the proposal of a cable applicant selected by City and develop a final franchise ordinance that will incorporate the required features of the applicant's proposal into the preliminary ordinance and in a form that may be acted on by City and accepted by the cable applicant as the franchise grant. 1 . Ordinance will include the provisions of the MCCB. 2. Law Firm will coordinate with consultant of MCCB so that the final franchise ordinance can be acted on by MCCB at the time the cable applicant applies for the certificate of confirmation. 3. Law Firm will attend a joint meeting of the City Council and the Ad Hoc Cable Communications Committee to review and explain the final franchise ordinance and answer questions . II . CITY RESPONSIBILITY A. City will furnish Law Firm with minutes of the Council and Ad Hoc Cable Communications Committee and all information, documents and records of City in conjunction with its study, evaluation, and policy determination regarding a cable communications system for City. B. City will provide its cooperation and assistant to Law Firm as needed by it to perform the legal services described herein. III . CHARGES FOR LEGAL SERVICES A. Basic Charge. For the legal services described in Paragraph I , Law rim will be paid up to Five Thousand Dollars ($5,000.00) . 1 . Law Firm shall provide City with billing statements on a monthly basis detailing its charges based on its hourly rate. Also, all expenses to be reimbursed shall be itemized. City shall promptly pay Law Firm after receipt of each billing. B. Expenses. Law Firm will be reimbursed for any out-of-pocket expenses. C. Additional Legal Services. Any additional legal services requested by City, such as additional meetings or representation in litigation related to the franchise ordinance, shall be paid for by City at the hourly rate of Law Firm upon receipt of billings made by Law Firm for such additional legal services. IV. GENERAL PROVISIONS A. Communications. 1 . To Law Firm. Thomsen, Nybeck, Herbst & Johnson, P.A. Suite 102 7250 France Avenue South Edina, Minnesota 55435 Attention: Adrian E. Herbst, Attorney 2. To City. Jeanne Andre, Administrative Assistant City of Shakopee 129 East First Avenue Shakopee, Minnesota 55379 B. Law Firm agrees to sign a standard form "Conflict of Interest Statement" of City acknowledging that it does not have a conflict of interest in this legal representation. C. Both parties agree to cooperate and coordinate with each other and with a consultant hired by City to achieve the successful awarding of a cable communications franchise for City. However, it is agreed that this Agreement may be terminated by either party without reason by the giving of thirty (30) day written communication to the other. -2- IN WITNESS OF the foregoing terms and conditions , the parties hereto have signed this Agreement below. CITY OF SHAKOPEE THOMSEN, NYBECK, HERBST & JOHNSON, P.A. l:-, a / 4 By By A RIAN E. HERBST -3- • 3 MEMO TO: John K. Anderson, City Administrator FROM: Gregg Voxland, Finance Director RE: Authorization for Payment DATE: May 8, 1981 The following is a list of the final agreed settlements on the VIP condemnations. Request approval for payment. 1) Valley Industrial Park, LTD Scottland Inc. $ 1,900.00 2) Scottland, Inc. 25.00 3) Jane Hauer 102.50 4) James Hauer/Jane Hauer 162.50 5) Eugene Hauer and Virginia Hauer 1,200.00 6) James Hauer, Eugene Hauer, Jane Hauer and Virginia Hauer 1,350.00 7) Al's Landscaping & Nursery 50.00 8) Henry G. & Mabel L. Johnson and Christian & Gross 2,175.00 Total Payments $ 6,965.00 GV/ljw