HomeMy WebLinkAbout05/09/1989 TENTATIVE AGENDA
AW REG.SESSION SHAKOPEE, MINNESOTA MAY 9, 1989
Mayor Lebens presiding
1] Roll Call at 6:00 P.M. in Council Chambers
2] 6:00 P.M. Public Hearing - Modification of the City's
Redevelopment Plan for its Minnesota River Valley Redevelop-
ment Project No. 1, Establishment of Tax Increment Financing
District No. 7 to be located within Redevelopment Project No.
1, and Adoption of a tax increment financing plan therefor
3] 7:00 P.M. Convene as Board of Review
4] Adjourn Board of Review to Room 319 at the Scott County
Courthouse, 428 South Holmes Street
51 Re-convene as Board of Review
a] Terry Hennen - Lot 1, Block 2, West View 5th Addition
b] Terry Klinger - Lot 6, Block 1, City of Shakopee
c] Leroy Menke, Lot 8, Block 2, Heritage Place
d]
e]
f]
gl
h]
z] Hear from members of the audience
6] Continue Board of Review to .
Q% Close Board at Review as of May 30, 1.9a9
7] If Board of Review is closed a motion is in order:
Move that the findings of the Board of Review be approved and
sent to the County Auditor for certification, as of May 30,
1989
8] Other Business: ,, L
Cc (.C7tf
9] Adjo�o Tue5day,P May 16, 1989 at 7: 00 P.M.
Dennis R. Kraft
Acting City Administrator
MEMO TO: Dennis R. Kraft, Acting City Administrator
FROM: Barry A. Stock, Administrative Assistant
RE: MEBCO Tax Increment Project
DATE: May 5, 1989
INTRODUCTION:
A City Council Public Hearing has been scheduled for 6:00 P.M. on
May 9, 1989 to hear comments on the following matters:
A. The amendment of the redevelopment plan relating to the
authorities MN River Valley Housing and Redevelopment
Project #1,
B. The establishment of Tax Increment District #7, and
C. The adoption of a tax increment financing plan for the
proposed tax increment financing district.
Shown in attachment #1 for Council consideration is Resolution
#3051, Amending the Modified Housing and Redevelopment Plan
relating to the Minnesota River Valley Housing and Redevelopment
Project #1 and establishing Tax Increment District #7 located
within redevelopment project #1 and approving and adopting a Tax
Increment Financing Plan relating thereto. The Tax Increment
Financing Plan for the Tax Increment District #7 is shown in
attachment #2.
BACKGROUND:
On April 4, 1989 the Shakopee City Council reconsidered and
approved Resolution #3030 as amended calling for a public hearing
on the adoption of a modification to the redevelopment plan for
the Mebco Tax Increment Project, the establishment of Tax
Increment District #7 in the project area and the adoption of a
Tax Increment Financing Plan relating thereto. Following this
action, copies of the proposed modification were distributed to
the Shakopee School Board and County Board for review and
comment.
On May 3, 1989, the City received formal correspondence from the
Shakopee School Board (see attachment #3) . The School Board has
waived their right of a 30 day review and comment period. The
School Board has also conditioned their comments on the City's
compliance with their Industrial Development Incentive Policy
Standards which call for the duration of the District to be
capped at three years.
On May 3, 1989 City staff met with representatives from 'Scott
County regarding the Mebco Tax Increment Project. On May 9, 1989
the Scott County Board will be meeting to consider a resolution
waiving their right of a 30 day review and comment period. Scott
County officials have stated that they will deliver their
comments to City on the Mebco Tax Increment Project following
their Board meeting. Copies of their comments will be placed on
the table for Council's consideration.
On May 2, 1989 the Shakopee Housing and Redevelopment Authority
approved Resolution No. 89-2 Amending the Modified Housing and
Redevelopment Plan relating to the Minnesota River Valley Housing
and Redevelopment Project #1 and establishing Tax Increment
District #7 located within redevelopment project #1 and approving
and adopting a Tax Increment Financing Plan relating thereto.
However, before the Mebco project can proceed, City Council must
pass a similar resolution.
on April 20, 1989 the Shakopee City Planning Commission found
that the proposed Modification of the Redevelopment Plan was
consistent with the City's Comprehensive Plan. Formal
certification of the Planning Commission's action is shown in
attachment #4.
SUMMARY:
The MEBCO Tax Increment Project will provide three years of tax
increment financing assistance to the developer which is
consistent with the City's Industrial Development Incentive
Policy. Fiscal disparities will be paid for out of the project.
Additionally, the City of Shakopee will abide by the conditions
set forth in the joint powers agreement between the City of
Shakopee and the Shakopee School District for the distribution of
tax proceeds. Both the Scott County Board and School District
have been sent copies of the redevelopment plan as it relates to
the MEBCO project for their comments.
Based on the information presented herein, it would now be
appropriate for City Council to solicit comments from the public
regarding the Mebco Tax Increment Project. Following the public
hearing it would be appropriate to take official action on the
project and either approve or deny Resolution #3051.
ALTERNATIVES•
1. Offer Resolution No. 3051 Approving Modification of the
Redevelopment Plan for MN River Valley Redevelopment Project
No. 1, Establishing Tax Increment Financing District No. 7
Located within Redevelopment Project No. 1 and Approving
and Adopting a Tax Increment Financing Plan related thereto,
and move its adoption.
2. Do not approve Resolution No. 3051.
3. Table action pending further information from staff.
RECOMMENDATION•
Staff recommends alternative $1.
ACTION REODESTED:
Offer Resolution No. 3051 Approving Modification of the
Redevelopment Plan for MN River Valley Redevelopment Project No.
1, Establishing Tax Increment Financing District No. 7 Located
within Redevelopment Project No. 1 and Approving and Adopting a
Tax Increment Financing Plan related thereto, and move its
adoption.
MEBCO
Attachment B1
4
RESOLUTION NO. 3051
RESOLUTION APPROVING MODIFICATION OF
REDEVELOPMENT PLAN FOR MINNESOTA RIVER VALLEY
REDEVELOPMENT PROJECT NO. 1, ESTABLISHING TAX
INCREMENT FINANCING DISTRICT NO. 7 LOCATED
WITHIN REDEVELOPMENT PROJECT NO. 1, AND
APPROVING AND ADOPTING A TAX INCREMENT
FINANCING PLAN RELATING THERETO.
WHEREAS, the City has established its Minnesota
River Valley Development District No. 1 (the "Project" ) in
and for the City and approved a Redevelopment Plan therefor
(the "Redevelopment Plan" ) , pursuant to and in accordance
with Minnesota Statutes, Sections 469 .027 to 469.029, inclusive,
as amended; and
WHEREAS, the City' s Housing and Redevelopment Authority
has, by resolution, approved and requested the City Council
to make certain modifications in the Redevelopment Plan and
to establish a new tax increment financing district in the
Project area and adopt a tax increment financing plan therefor,
all describing certain actions to be taken by the Authority
in aid of the Project; and
WHEREAS, the City now proposes to modify the
Redevelopment Plan, to establish its Tax Increment Financing
District No. 7 (the "Financing District" ) in the Project
area, and to adopt a tax increment financing plan therefor
(the "Financing Plan" ) , pursuant to and in accordance with
Minnesota Statutes, Sections 469.027 to 469.029 and 469.174
to 469.179, inclusive, as amended, as requested by the Authority;
and
WHEREAS, the proposed modification to the Redevelopment
Plan has been submitted to the City's Planning Commission
for review and comment as to whether the proposed modification
is consistent with the City's Comprehensive Plan, pursuant
to Minnesota Statutes, Section 469 .027; and the Planning
Commission has, by resolution, determined the proposed
modification to be consistent with the City' s Comprehensive
Plan; and
WHEREAS, the City has provided an opportunity for
the members of the County Board of Commissioners of Scott
County and the members of the school board of the school
district in which the Financing District is located to meet
with representatives of the City; and
WHEREAS, the City has presented to the members
of the County Board of Commissioners of Scott County and
the members of the school board of the school district in
which the Financing District is located the City's estimate
of the fiscal and economic implications of the establishment
of the Financing District thirty (30) days prior to May 2,
1989, and the members of the County Board and the school
board were given an opportunity to present their comments
at the public hearing held on the date hereof; and
WHEREAS, the City Council of the City (the "Council" ) ,
on the date hereof, held a public hearing regarding the
modification of the Redevelopment Plan, the establishment
of the Financing District, and the approval and adoption
of the Financing Plan, notice of which was published in a
newspaper of general circulation in the City not less than
ten (10) nor more than thirty (30) days prior to the date
hereof; and
WHEREAS, the City has performed all actions required
by law to be performed prior to the modification of the
Redevelopment Plan, the establishment of the Financing District,
and the approval and adoption of the Financing Plan.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL
OF THE CITY OF SHAKOPEE, MINNESOTA, AS FOLLOWS:
1. On the basis of investigations and studies
carried out by City staff and consultants of the information
presented to the Council at meetings regarding the modification
of the Redevelopment Plan, the establishment of the Financing
District, and the adoption of the Financing Plan, and of
the information presented at the public hearing and at other
Council meetings regarding the foregoing, the Council hereby
finds and determines that:
(a) the proposed modifications to the Redevelopment
Plan are consistent with the City's Comprehensive Plan
and should be adopted;
(b) the establishment of the Financing District
within the Project area and the adoption of the Financing
Plan are necessary and in the public interest and to
the benefit of the health, safety and welfare of the
City and its residents;
(c) the Tax Increment District is an economic
development district, as defined in Minnesota Statutes,
Section 469.174 , Subdivision 12;
2
(d) the redevelopment in the Project area proposed
to be assisted, as described in the Financing Plan,
is not reasonably expected to occur within the foreseeable
future through private investment and, therefore, the
use of tax increment financing for assistance as described
in the Financing Plan is deemed necessary;
(e) the Financing Plan conforms to the general
plan for the development of the City as a whole; and
(f) the Financing Plan will afford maximum
opportunity, consistent with the sound needs of the
City as a whole, for the redevelopment of the Project
area by private enterprise.
2. The proposed modifications to the Redevelopment
Plan are hereby approved.
3. The Financing District is hereby established,
and the Financing Plan is hereby approved and adopted by
the City in substantially the form on file in the office
of the City Clerk on this date.
4 . The City Clerk is hereby authorized and directed
to file a copy of the Financing Plan with the Minnesota
Commissioner of Trade and Economic Development.
5. The City Clerk is authorized and directed to
request the County Auditor of Scott County to certify the
original tax capacity value of the real property within the
Financing District, as described in the Financing Plan, and
to certify in each year hereafter the amount by which the
tax capacity value has increased or decreased from the original
tax capacity value of such property, and to remit to the
Authority each year, commencing on the date indicated in
the Financing Plan, that portion of all taxes paid in that
year on real property in the Financing District which the
captured tax capacity value bears to the then current tax
capacity value, all pursuant to Minnesota Statutes, Section
469.177 .
6. The City Clerk, together with the City' s financial
advisor, legal counsel, bond counsel, and other consultants,
is authorized and directed to proceed with the implementation
of the Redevelopment Plan and the Financing Plan and, for
this purpose, to negotiate, draft, prepare and present to
this Council, for its consideration, all resolutions, documents
and contracts necessary for this purpose.
3
Adopted in Adj . Reg. Session of the City Council of the
City of Shakopee, Minnesota, this 9th day of May, 1989.
Mayor of the City of Shakopee
ATTEST:
City Clerk
Approved as to form this
day of 1989.
City Attorney
Attachment #2
SECTION Vlll
TAX INCREMENT FINANCING PLAN FOR
TAX INCREMENT DISTRICT NO. 7
(MESCO INDUSTRIES, INC.)
Subsection 8.1. Statement of Obiectives. See Section I, Subsection 1.4 of the Modified
Housing and Redevelopment Plan.
Subsection 8.2. Modified Housing and Redevelooment Plan See Section I,
Subsection 1.2 through 1.4 of the Modified Housing and Redevelopment Plan. Tax Increment
District No. 7 is an approximately five acre site located east of County Road 83 and west of
Valley Park Drive, on Valley Industrial Boulevard South.
Subsection 8.3. Parcels to be Included in Tax Increment District No. 7. A map showing
the boundaries of Tax Increment District No. 7 is attached to this Financing Plan as Exhibit VIII-
A, and the parcels constituting said District are legally described in the attached Exhibit VIII-B.
Subsection 8.4. Parcels in Acquisition. The Authority may acquire and reconvey any or
all of the parcels of property located within Tax Increment District No. 7 and in particular the
Authority intends to acquire the real property described in Exhibit VIII-B.
Subsection 8.5. Requirement for Agreements. Pursuant to Minnesota Statutes,
Section 469.176, Subdivision 5, no more than 25 percent by acreage of the property to be
acquired by the Authority in the District shall be owned by the Authority as a result of
acquisition with the proceeds of bonds issued pursuant to Section 469.178 without the
Authority having, prior to acquisition of in excess of 25 percent of the acreage, concluded an
agreement for the redevelopment of the property acquired and which provides recourse for the
Authority should the redevelopment not be completed.
As of the date of adoption of Tax Increment Financing Plan No. 7, the Authority has not
entered into any Development Agreements. Prior to the expenditure of Tax Increment funds,
the Authority expects to enter into a development agreement with Mebco Industries, Inc. for the
development of land in Tax Increment District No. 7.
Subsection 8.6. Assessment Agreements. Pursuant to Minnesota Statutes,
Section 469.177, Subdivision 8, the Authority may, upon entering into a redevelopment
agreement pursuant to Minnesota Statutes, Section 469.176, Subdivision 5, enter into an
8 - 1
agreement in recordable form with the redeveloper of property within Tax Increment District No.
7 which establishes a minimum market value of the land and completed improvements for the
duration of the Tax Increment District. The Assessment Agreement shall be presented to the
City Assessor who shall review the plans and specifications for the improvements to be
constructed, review the market value previously assigned to the land upon which the
improvements are to be constructed and so long as the minimum market value contained in
the Assessment Agreement appears in the judgment of the Assessor, to be a reasonable
estimate, the Assessor may certify the minimum market value agreement.
The Authority does not anticipate entering into an Assessment Agreement.
Subsection 8.7. Specific Development Expected to Occur Within Tax Increment District
No. 7: Need for Tax Increment Financing. It is expected that the property within Tax Increment
District No. 7 will be developed with an approximately 60,200 square foot hair comb
manufacturing and distribution facility.
The proposed development, in the opinion of the Authority, could not reasonably be
expected to occur solely through private investment within the reasonably foreseeable future,
and thus the use of tax increment financing to assist the proposed development is necessary.
The price of the parcel on which the facility is to be located is greater than that of similar land
available in other local jurisdictions. This finding is based upon a comparison of similar land
made by the Authority.
Subsection 8.8. Estimated Public Costs. The estimated principal amount of Public
Costs to be financed from Tax Increments from Tax Increment District No. 7 is $202,000. The
Public Costs are generally described as follows:
Land Write Down $156,475
Authority Administration (10%) 18,354
Capitalized Interest (5-1-89 to 2-1-91) 24,141
Allowance For Discount Bidding 3,030
Total $202,000
The Public Costs set forth above are estimates and the amounts allocated to pay any
item may be reallocated among any of the other items set forth above.
8-2
Subsection 8.9. Estimated Amount of Bonded Indebtedness Pursuant to
Section 469.175, Subdivision 1 of the Tax Increment Financing Act, general obligation tax
increment bonds in an amount not exceeding $202,000 are to be issued to amortize the eligible
costs identified in Subsection 8.8. The debt service cash flows are shown in Exhibit VIII-C.
Subsection 8.10. Sources of Revenue. The revenues to be used to pay the Public
Costs in the Modified Housing and Redevelopment Plan and Tax Increment District No. 7 are
tax increments.
A schedule of projected tax increment revenue is shown in Exhibit VIII-D.
Subsection 8.11. Original Tax Capacity Value. Pursuant to Minnesota Statutes,
Chapter 275.08, the Original Tax Capacity Value of all taxable property in Tax Increment District
No. 7 as most recently certified by the Commissioner of Revenue of the State of Minnesota,
being the certification made in 1988 with respect to the tax capacity value of such property as
of January 2, 1988, for taxes payable in 1989, is estimated to be $2,744.
The County Auditor will add to the Original Assessed Value for the preceding year
multiplied by the average percentage increase in the assessed value of all property included in
the District during the five years prior to certification.
The estimated market value of the property within Tax Increment District No. 7 has been
constant at $52,267 since 1983. During this time,there has been no change in the property tax
classification of property. Therefore, the average percent increase in assessed value during
the five years prior to certification of Tax Increment District No. 7 is zero.
Subsection 8.12. Estimated Captured Tax Capacity Value and Computation of Tax
Increment. Each year the County Auditor will measure the amount of increase or decrease in
the total tax capacity value of taxable property in Tax Increment District No. 7 to calculate the
Tax Increments payable to the City. In any year in which there is an increase in total tax
capacity value in Tax Increment District No. 7 above the Original Tax Capacity Value, Tax
Increments will be payable to the City. In any year in which the total tax capacity value in Tax
Increment District No. 7 declines below the Original Tax Capacity Value, no tax capacity value
will be captured from Tax Increment District No. 7 and no Tax Increments will be payable
therefrom.
8 - 3
The County Auditor shall certify in each year after the date the Original Tax Capacity
Values were certified, the amount the Original Tax Capacity Values have increased or _
decreased as a result of:
1, changes in tax exempt status of property;
2. reductions or enlargements of the geographic boundaries of Tax Increment
District No. 7; and
3. changes due to stipulations, adjustments, negotiated or court-ordered
abatements.
Upon completion of the development expected to occur in Tax Increment District No. 7,
the City estimates the tax capacity value of taxable property in Tax Increment Financing District
No. 7 will be approximately 594;966, based on an estimated market value upon completion of
$1,245,000. .
The Captured Tax Capacity Value upon completion of development is expected to be
approximately $61,966. The Tax Increments will be captured for up to 8 years from the date of
the receipt or ten years from approval of the Tax Increment Financing Plan, whichever is less.
The City determines that 100.00% of the available increase in tax capacity value of Tax
Increment District No. 7 shall be used in accordance with this Tax Increment Financing Plan
No. 7.
However, the City retains to option, at any time during the life of the District, to retain
some portion less than 100%of the annual tax increment, and pass on the remaining portion to
other taxing jurisdictions in accordance with the Tax Increment Act.
Subsection 8.13. Fiscal Disparities Contribution Pursuant to Minnesota Statutes,
Section 469.177(3)(b), the City elects that the fiscal disparities contribution associated with the
private development which occurs within Tax Increment District No. 7 will be borne by Tax
Increment District No. 7.
Subsection 8.14. Original Gross Tax Capacity Rate Pursuant to Minnesota Statutes,
Chapter 275.08, at the time of certification of the original tax capacity for Tax Increment District
No. 7, the County Auditor will certify the Original Gross Tax Capacity Rate that applies to Tax
Increment District No. 7. The Original Gross Tax Capacity Rate is the sum of all the gross tax
8-4
capacity rates that apply to the properties in Tax Increment Financing District No. 7 for taxes
payable in 1989, which is the year in which the initial certification of the Original Tax Capacity
Value was requested.
Pursuant to Minnesota Statutes, Section 469.177, Subdivision 3(b)(2), "the County
Auditor shall exclude the retained captured tax capacity of the authority from the taxable value
of the local taxing district in determining local taxing district gross tax capacity rates. The gross
tax capacity rates so determined are to be extended against the retained captured tax capacity
of the Authority as well as the taxable value of the local taxing districts. The tax generated by
the extension of the lesser of (A) the local taxing district gross tax capacity rates or (8) the
original gross tax capacity rate to the retained captured tax capacity of the Authority is the tax
increment of the Authority." Therefore, the maximum tax capacity rate to be applied to Tax
Increment District No. 7 for its duration, as estimated by the Scott County Auditor for 1988/89,
is 125.366%.
Taxing Jurisdiction 1988/89 Tax Capacity Rate
City of Shakopee 15.008%
Scott County 36.093
Independent School District 720 69.953
Special Districts 4.312
Total Tax Capacity Rate 125.366%
Subsection 8.15. Duration of Tax Increment District No. 7. The Tax Increment
Financing Act allows economic development districts to remain in existence eight years from
the date of the receipt, or ten years from approval of the tax increment financing plan,
whichever is less. Therefore,Tax Increment Financing District No. 7 may remain in effect until
eight years from the receipt of the first tax increments, or until such earlier date as all Public
Costs have been paid in accor_3nce with this Tax Increment Plan No. 7.
Subsection 8.16. Estimated Imoact on Other Taxing Jurisdictions. Pursuant to
Section 469.175, Subdivision (6) of the Tax Increment Act, Exhibit VIII-E shows the estimated
impact of Tax Increment Financing District No. 7 on taxing jurisdictions other than the City.
There will be no adverse impact on the other taxing jurisdictions during the terms of Tax
Increment District No. 7 since the development would not have occurred without the creation
of Tax Increment District No. 7 and the provision of public assistance. A positive impact on
8 - 5
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other taxing jurisdictions will occur when Tax Increment District No. 7 is decertified and the
development in Tax Increment District No. 7 becomes part of the tax base of all affected taxing
jurisdictions.
Subsection 8.17. Modification to Tax Increment District No 7 and/or Tax Increment
Financing Plan As of May 2, 1989 no modifications to Tax Increment District No. 7 or the Tax
Increment Financing Plan therefore were made, said date being the date of original adoption
thereof.
8 - 6
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Exhibit VIII-B
Legal Description for Mebco Tax Increment District:
Lot 1, Block 1, Valley Park 8th Addition except that
portion beginning at the Northeast corner of Lot 1
Block 1 extending Southerly along the Easterly property
line of Lot 1 Block 1 135 feet, thence Westerly 40
feet, thence Southerly 280 feet, thence Easterly 40
feet to a point 183 feet North of the Southeast corner
of Lot 1 Block 1 thence Southerly along the Easterly
property line of Lot 1 Block 1 183 feet to a point at
the Southeast corner of Lot 1 Block 1.
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Attachment #3
Shakopee Public Schools
Independent School District No. 720
Joan Lynch,Choir District Office
Suzanne Von Hous.Vice Chair 505 S. Holmes Street
James Sorensen,Clerk Shakopee, Minnesota 55379
Janet Wendt.Treasurer (612)445-4884
Jane Carlson,Director
James O'Brien,Director Gayden F.Conuth,Ph.D..Superintendent of Schools
Steven Johnson,Director Virgil S.Mears.Assistant Superintendent of Schools
May 2, 1989
Mayor Dolores Lebens
City of Shakopee
129 East First Avenue CITY OF GrI�ii; r"�='=
Shakopee, Minnesota 55379-1376
RE: Review and Comment on A Modification of the Redevelopment Plan
for Minnesota River Valley Redevelopment Project No.l, The
Establishment of Tax Increment Financing District No. 7 In The
Project Area, and the Adoption of A Tax Increment Financing
Plan Therefore.
Dear Mayor Lebens:
On April 24, 1989, the Shakopee School Board passed a motion which
waives their right of a 30 day review and comment period for the
above named tax increment financing project.
The School Board, however, is submitting the following comments for
your consideration:
1. As you are aware, under the Tax Increment joint powers agreement
between the City of Shakopee and the School District, the school
district is to receive the increment generated as a result of
school district referenda for all new tax increment districts
that are created.
In keeping with our school board goal of seeking alternative
revenue sources to local referenda, our plan would be to reduce
our 19.79 mill referendum levy for the 1990 pay 1991 taxes by
the amount of increment generated in this project by that
referendum. In other words, through this project we would give
direct taxpayer relief in 1991 through the reduction of our 19.79
mill referendum by the amount of increment generated by the 19.79
mills in this new project. This would affect school district
taxes to be paid in 1991. Taxes levied in 1990 to be paid in
1991 are for the last year in which the full 19.79 mills is
authorized by the voters.
A Tobacco-Free School District An Equal Opportunity Employer
City staff estimates indicate that this project increment as
a result of the 19.79 mills would generate approximately $4,000.
This would be the dollar amount of the reduction. Please realize
that $4,000 spread over the taxpayers is minor in terms of dollars.
However, we believe this procedure is in keeping with the spirit
and intentions of the school board when we pursued legislation
for school district access to the increments generated as a result
of referenda and when we agreed to the joint powers agreement
with the City of Shakopee.
2. Subsection 8.13 of the Tax Increment Financing Plan for Mebco
Industries, Inc. indicates that the Fiscal Disparities Contribution
is to be borne by Tax Increment District No. 7 rather than the
tax payers of the City as a whole. We believe that this provision
results in a more positive impact on the general tax climate
and, more specifically, does not place an additional burden on
City taxpayers.
3. Subsection 8.15 of the Tax Increment Financing Plan for Mebco
Industries, Inc. specifies that this district "mom remain in
effect until 8 years from the receipt of the first tax increment,
or until such earlier date as all Public Costs have been paid.
The School Board was told by Mr. Kraft on April 24 that your
intentions would be to comply with the newly adopted City Council
Policy for Industrial Development. That policy provides for
a three year time frame instead of eight. We urge you to comply
with the newly adopted policy of a 3 year time frame. Our comments
were formulated assuming compliance with the three year time
frame.
Thank you for your consideration of these concerns.
Sincerely,
�ca.>2. ✓���
loan P. Lynch
Chairperson
Shakopee School Board
Attachment q9 d
C E R T I F I C A T I O N
I, Judith S. Cox, City Clerk of the City of Shakopee, Minnesota,
Scott County, do hereby certify that the following is a true and
correct extract from the Minutes of the Shakopee Planning
Commission, Adjourned Regular Session, April 20, 1989, the
original of which are on file and of record in my office:
"Foudray/Allen moved that the modification of the
Redevelopment Plan for Minnesota River Valley
Redevelopment Project No. 1 proposed by the City HRA is
determined to be consistent with the city's
Comprehensive Plan. "
Dated this 5th day of May, 1989.
SEAL V
DON D. MARTIN s
SCOTT COUNTY ASSESSOR
COURT HOUSE 112
Id SHAKOPEE,MN.55379-1381 (612)4467750,Ext.its
Deputy:
LEROY ARNOLDI
MEMORANDUM:
Date: May 4, 1989
To: Shakopee Board of Review, May 9, 1989.
From: Robert N. Schmitt, Property Appraiser
Subject: Summary of 1989 Assessment of Shakopee
During the 1989 assessment of Shakopee, the following work was done:
Fortynine subdivisions and all of the unplatted areas of Shakopee were
viewed as part of the 25% reassessment. Decks, Finished Basements, etc.
were added to the existing values.
Building permits for 340 properties were issued. Of those, 59 were for
nontaxable items such as signs, fences, egress windows, etc. 94 permits
were issued for new homes.
Rechecks for partial completions from the previous year totalled 106.
Minor adjsutments were made in the cost schedule which is used for the
City for such things as decks, garages, etc. to adjust it to current
price ranges for these items.
Current Sales Ratio for the City of Shakopee is approximately 91% with
a Coefficient of Dispersion of 10.38, an Index of Regression of 1.00.
These numbers are based on sales from 10/87 to 9/88 which will be used
for the State Board of Review for the 1989 assessment. The sales num-
ber 125.
An Equel Opportunity Employer
S�
SCOTT COUNTY ASSESSOR
COURT HOUSE 112
428 SOUTH HOLMES
SHAKOPEE. MN 55379-1381 (612) 496-8115
M E M O R A N D U M
Date : May 9, 1989
To: 1989 Shakopee Board of Review
From: Robert N. Schmitt . Scott County Assessor's Office
Property Owner : Terrence Herten
Property Address: 1116 Jackson St.
Parcel 0: 27 040 010 0
1 . Type & Description Of Property: Rambler built in 1977 with
1288 sq. ft. 1 3/4 baths, Central Air,
2. Deck or Patio:
3. Garaoe Description : 20 x 24 attached. A 14 x 24 garage was moved
on to property for the 1989 assessment.
4. Other :
5. Total Structural Value : $61,000
6. Lot Size : 80 x 135
7. Lot Value: $20,800
8. Total Estimated Market Value of Property: $81,800
9. Other Information on Assessment : The only increase given this
parcel for the 1989 assessment was for the detached garage. The
value placed on the building was $2300, based on an effective age
of 25 years and a depreciation of 157.
Sales of similar properties:
1. 1136 Van Buren 2/87 $79,000. 1 Story, 1064 s.f. , 20 x 24 garage,
200 s.f. fin. bsm't. ,Central Air, 12 x 12 deck, 75 x 135 Lot, Age-1977.
2. 1193 Harrison 1/87 $79,750. 1 Story, 1064 s.f. , 22 x 24 garage,
500 s.f, fin. bsm't. ,Central Air, 80 x 135 Lot, Age-1974.
3. 1147 Harrison 6/85 $84,000. 1 Story, 1387 s.f. , 22 x 22 garage,
700 s.f. fin. bsm't. ,l 3/4 baths, Central Air, 75 x 135 Lot, Age-1974
SL
SCOTT COUNTY ASSESSOR
COURT HOUSE 112
— fi 428 SOUTH HOLMES
*z - SHAKOPEE. MN 55379-1381 (612) 496-8115
M E M 0 R A N D U M
Date: May 9, 1989
To: 1989 Shakopee Board of Review
From: Robert N. Schmitt. Scott County Assessor's Office
Property Owner : Terence Klinger
Property Address: 136 E. 6th Ave.
Parcel #: 27 001 620 0
1 . Type & Description Of Property: 214 story home which was built
in 1912. It originally was used as the St. Mary's School convent.
It has 1457 sq. ft. on the main floor, 1 3/4 baths, 1 fireplace.
2. Deck or Patio:
3. Garaoe Description : 24 x 24 detached garage built in 1988.
4. Other : The home appears to be in very good condition in a very
desirable neighborhood.
5. Total Structural Value : 72,000
6. Lot Size : 60 x 142
7. Lot Value : $15,800
8. Total Estimated Market Value of Property: $87800
9. Other Information on Assessment : The market value was increased
for the 1989 assessment due to the construction of a detached garage.
The value for the garage was placed at $5800.
Homes similar to the subject which have sold in Shakopee in the past:
1. 134 E. 4th 2k Story, 1119 sq. ft. , No garage, 2/86 $92,900
2. 314 Scott St. 214 Story, 1879 sq. ft. , No garage, 2/87 $80,000
(Bought at below market according to both buyer and realtor).
'Sc_
SCOTT COUNTY ASSESSOR
COURT HOUSE 112
428 SOUTH HOLMES
SHAKOPEE. MN 55379-1381 (612) 496-8115
M E M O R A N D U M
Date : May 9, 1989
To: 1989 Shakopee Board of Review
From: Robert N. Schmitt . Scott County Assessor's Office
Property Owner : Leroy Menke
Property Address: 2153 Heritage Drive
Parcel N: 27 133 025 0
1 . Type & Description Of Property: 1 story home built in 1987-88.
1296 sq.ft. with an attached 20 x 28 garage. The basement is 50%
finished except for the floor covering. There are 1 Full and a 3/4
bath in the home.
2. Deck or Patio:
3. Garaoe Description: 20 x 28 attached
4. Other:
5. Total Structural Value : $65,100
6. Lot Size : 80 x 130
7. Lot Value : $18, 600 (reduction was made to allow for amount to
Put sod in. This was not present as of 1/2/89) .
S. Total Estimated Market Value of Property: $83,700
9. Other Information on Assessment : Only one other rambler has
sold in this addition . It was also built by Mr. Menke. It sold
in Nov. , 1988 for $88,500. It had 1404 sq, ft. with a 22 x 26 gar-
age. No other extras were present. The lot was 80 x 130.
• State 8 Local
a DuCharme, McMillen 8 Associates, Inc. rax Consultants
1507 Johnson Ferry Road
Suite 175
Marietta. GA 30062
.lay B, 1989 Phone: (404) 971-7610
Shakopee City Council
s D/B/A 1989 Board of Review
c/o Mr. Robert N. Schmitt
Scott County Assessor's office
Courthouse Roan 8112
Shakopee, Minnesota 55379-1381
Dear Sirs:
RE: Parcel No. 27-001-115-0
D/B/A Rahr Malting Company
Please accept this letter as our appeal of the 1989 value placed on
the above-referenced property. Cur objection to the notified value
Of $16,314,600 is based on two considerations - the amount of value
assigned to 1988 plant additions, and canparative equity of
assessment of like malting facilities within the State of Minnesota.
Although we do wish to lodge this appeal formally, we would like the
opportunity to discuss this matter informally sometime prior to the
meeting of the Scott County Board of Equalization. We will be in
touch to arrange such a meeting, assuming you (or your
representative, Mr. Schmitt) are agreeable.
Sincerely,
B. Clegg Bazemore
BCB/mag
cc: Mr. George Gackle, Rahr Malting Company
Atlanta Boston Chicago Dallas/Fort Worth Denver Detroit Fort Wayne Houston
I Indianapolis Los Angeles Fort Myers Philadelphia San Antonia San Francisco Seattle Syracuse
1
SCOTT COUNTY ASSESSOR
COURT HOUSE 112
428 SOUTH
SHAKOPEE. MN 55379-13811 (6 C612) 496-8115 b K
M E M O R A N D U M
Date: May 9, 1989
To: 1989 Shakopee Board of Review
From: Robert N. Schmitt . Scott County Assessor's Office
Property Owner : Rahr Malting Company
Property Address: 800 West 1st Avenue
Parcel A: 27 001 115 0
1 . Type & Description Of Property: This is a large malting facility
built originally in 1936 with additions to the property in the years
since.
2. Deck or Patio:
3. Garace Description:
4. Other:
5. Total Structural Value : $15,915,300
6. Lot Size : 16.50 Acres
7. Lot Value : $399,300
S. Total Estimated Market Value of Property: $16,314,600
9. Other Information on Assessment : Rahr constructed a new
addition to the complex during 1988. This facility separates and
grades the grain. I have placed a value of $438,300 for this
addition based on a partial completion for the 1989 assessment.
Rehr wishes to have their name placed on the record at this time.
They are uncertain at this time whether they wish to appeal the
valuation, but wish to keep their options open for the County
and State Boards of Review.
SCOTT COLNTY ASSESSOR
COURT HOUSE 112
428 SOUTH HOLMES
SHAKOPEE. MN 55379-1381 (612) 496-8115
MEMORANDUM
Date: May 9, 1989
To: 1989 Shakopee Board of Review
From: Robert N. Schmitt . Scott County Assessor's Office
Property Owner: Ronald & Rosemary Schmitt
Property Address: 620 W. 5th
Parcel q: 27 001 515 0
1 . Type & Description Of Property: 1' Story home built in 1948.
780 sq. ft. on main level. 50% of basement is finished. Rome has
1?j baths.
2. Deck or Patio: 10 x 18 deck
3. Garaoe Description: Built in 1978, 26 x 32 .
4. Other:
5. Total Structural Value : $50,900
6. Lot Size : 60 x 142
7. Lot Value : $15,800
S. Total Estimated Market Value of Property: $66,700
9. Other Information on Assessment: Mrs. Schmitt is concerned
because they purchased the property as rental property and due to
nonconformance with City codes, they cannot rent the basement out.
I will be rechecking the property next week for condition and I
assume we will come to an agreement on value. If not, Mr. & Mrs.
Schmitt will be eligible to attend the County Board of Review on
June 19.
DON D. MARTIN
SCOTT COUNTY ASSESSOR
COURT HOUSE 112
FF"
SHAKOPEE, MN.553731381 (812)4467750, Ext.lis
Deputy
LEROY ARNOLDI
MEMORANDUM:
Date: May 9, 1989
To: Shakopee Board of Review
From: Robert N. Schmitt, Property Appraiser
Property Owner: Cletus Link
Property Address: 1440 W. 3rd Ave. 1
Parcel d 27 015 014 0
1. Type 6 Description of Property: This property is the location of
Link Building Supplies. The property's value is broken down in
the following manner: YR. SIZE NET RATE
Steel Building 1984 5568 sq. ft. $10.65/s.f.
Shop 1984 672 sq. ft. $11.05/s.f.
Office 1984 576 sq. ft. $27.50/s.f.
Lumber Storage 1986 2328 sq. ft. $ 7.50/s.f.
Storage Addition 1987-88 594 sq. ft. $ 6.80/s.f. (common wall)
Open Storage 1988 660 sq. ft. $ 5.00/s.f.
TOTAL 10398 sq. ft.
Land 2.95 Acres $16,915/Acre
Total 1989 Value $169,200
Total Added Value for '89 { 6,500
The only comparable property in the City of Shakopee is C. N. Carpenter
Lumber Company, F 27 001 092 0, 27 001 093 0, 27 001 121 0, 27 001 122 0,
27 001 123 1 . YR. SIZE NET RATE
Lumber Storage 1972 6000 sq. ft. $ 7.47/s.f.
11 11 1950's 1320 sq. ft. $ 5.29/s.f.
Office/Showroom 1950's 2946 sq. ft. $19.47/s.f.
Lumber Storage 1950's 1600 sq. ft. $ 3.91/s.f. (Open Storage)
" 1950's 3696 sq. ft. $ 4.66/s.f.
" 1962 6000 sq. ft. $ 4.91/s.f.
TOTAL 21562 sq. ft.
Land 1.05 Acres $ 2.96/s.f.
Total 1989 Value $399,700
An Equal Opportunity Employer
SCOTT COUJTY ASSESSOR
COURT HOUSE 112
428 SOUTH HOLMES
SHAKOPEE. MN 55379-1381 (612) 496-8115
M E M O R A N D U M
Date: May 9, 1989
To: 1989 Shakopee Board of Review wra -
From: Robert N. Schmitt . Scott County Assessor's Office
Property Owner: Paul Johnson -
Property Address: 934 Dakota St.
Parcel 8: 27 125 001 0 Lot 8 Block 2 Eagle Sluff 1st addition.
1 . Type & Description Of Property: Split-Foyer home of 1048 sq. ft.
constructed in 1972. The home has 2 bedrooms upstairs with 1 bath.
The basement is 50% finished with 1 bedroom, 14 bath, and a family
room.
2. Deck or Patio: 12 x 14 Deck
3. Garaoe Description: 23 x 24 attached garage
4. Other : Central-air conditioning
5. Total Structural Value : $55,800
6. Lot Size : 80 x 164
7. Lot Value : $22,100
S. Total Estimated Market Value of Property: $77,900
9. Other Information on Assessment :
SCOTT COUNTY ASSESSOR
COURT HOUSE 112
428 SOUTH HOLMES
SHAKOPEE. MN 55379-1381 (612) 496-8115
M E M O R A N D U M �J
Date:
To: 1989 Shakopee Board of Review Y' C
From: Robert N. Schmitt . Scott County Assessor's Office
Property Owner : Elmer Otto
Property Address: 1057 Eastview Cr.
Parcel #: 27 092 010 1
1 . Type & Description Of Property: One half of a twinhome which
was built in 1983. Split-entry design with 784 sq. ft. The basement
is 157, finished.
2. Deck or Patio: 9 x 10 deck
3. Garaoe Description : Attached 20 x 20
4. Other:
5. Total Structural Value : $43,000
6. Lot Size : 41 x 142
7. Lot Value : $14,200
S. Total Estimated Market Value of Property: $57,200
9. Other Information on Assessment: This home was in very poor
condition from the previous occupant. A reduction was made for the
1988 assessment to allow for the condition. I was told the problems
would be corrected for the 1989 assessment and the value was increased
to allow for the correction.
i
DON D. MARTIN
SCOTT COUNTY ASSESSOR
COURT HOUSE 112
if, SHAKOPEE, MN. 55379-1381 (612)-4457750, Ext.115
Deputy:
LEROY ARNOLDI
Memorandum:
Date: May 9, 1989
To: Shakopee Board of Review
From: Robert N. Schmitt, Property Appraiser
Subject: Options For Board of Review
In the other areas of Scott County, the Boards of Review are usually,-
closed after one night. The taxpayer who still is not satisfied with
the findings of the Local Board may then attend the County Board of
Review. Property owners whose property is rechecked after the Local
Board is informed as to the valuation change, if any, by the assessor.
If he still is in disagreement, he may again appeal the decision of
the assessor to the County Board. If an agreement is reached prior
to the County Board of Review, the value is simply changed by the
assessor and a letter of verification is sent to the property owner.
The rights of the property owner are in no way taken away by this
action, and every effort is made by the assessor to come to an agree-
ment on value or at least an understanding of how the value was arrived
at. This is the method used in both Prior Lake and Savage and has worked
well in the past.
The County Assessor's Office will also view the properties of owner's who
fail to appear at the local boards. If an error is found a value change
will be made.
In summary, every effort is made to make the valuation process as fair
as possible for both the taxpayer and the assessor.
An Equal Opportunity Employer
g�
MEMO TO: Honorable Mayor and City Council
FROM: Dennis R. Kraft, Acting City Administrator
RE: Absence from Office
DATE: May 5, 1989
I will be out of City Hall from Wednesday, May 10th through
Monday, May 15th. I will be at the Minnesota Management State
Conference on Wednesday, Thursday and Friday and will be
visiting my wife's family in Illinois on Saturday, Sunday and
Monday. During this period Judy Cox will be the Acting City
Administrator. Judy will be able to reach me at the Manager's
Conference if anything of an emergency nature should occur.
Action Requested
Move to appoint Judith S. Cox Acting City Administrator from
May 10 through May 15, 1989.
DRK/jms
BOARD OF COUNTY COMMISSIONERS
SCOTT COUNTY, MINNESOTA
Date Mav 9, 1989 Resolution No.. 89040
Motion by Commissioner Mackie Seconded by Commissioner Koniarski
RESOLUTION NO. 89040; COMMENTING ON THE PROPOSED MODIFICATION OF THE
REDEVELOPMENT PLAN FOR MINNESOTA RIVER VALLEY REDEVELOPMENT
PROJECT NO. 1, THE ESTABLISHMENT OF TAX INCREMENT FINANCING
DISTRICT NO. 7 IN THE PROJECT AREA, AND THE ADOPTION OF A TAX
INCRECEMENT FINANCING PLAN THEREFORE.
WHEREAS, the Scott County Board of Commissioners at their May 2, 1989
meeting waived the statutory thirty (30) day comment period regarding the
Proposed Modification of the Redevelopment Plan for Minnesota Valley
Redevelopment Project No. 1, the Establishment of Tax Increment Financing
District No. 7 in the Project Area, and the Adoption of a Tax Increment
Financing Plan Therefore (the Proposal), which was filed with the Scott
County Board of Commissioners on April 25, 1989; and
WHEREAS, the Scott County Board of Commissioners has adopted
Resolution No. 88116; Establishing the Scott County Policy and Procedures
Regarding Tax Increment Financing; and
WHEREAS, the Shakopee City Council has set May 9, 1989 as the date for
the public hearing regarding the Proposal at which hearing comments or
questions relating to the Proposal will be received; and
WHEREAS, the Scott County Tax Increment Financing Review Team (the
Team) met with City of Shakopee representatives regarding the Proposal on
May 3, 1989; and
WHEREAS, the responsiveness and thoroughness of the presentation by
the City of Shakopee representatives addressed all of the issues contained
in the Scott County TIF Policy and Procedures as well as the questions of
the Team; and
WHEREAS, the assistance and cooperation of the City of Shakopee in
expediting this TIF review allows the County Board to make its comments
available for the public hearing.
NOW THEREFORE BE IT RESOLVED, that upon the recommendations of the
Scott County Tax Increment Financing Review Team (the Team), the Board of
Commissioners in and for the County of Scott, Minnesota goes on record
with the following comments regarding the Proposal:
BOARD OF COUNTY COMMISSIONERS
SCOTT COUNTY, MINNESOTA
Date May 9, 1989 Resolution No._ 89040
Motion by Commissioner Mackie Seconded by Commissioner Koniarski
1. That the information presented by the City of Shakopee
representatives at the meeting with the Team on May 3, 1989 addressed all
of the issues contained in Scott County Resolution No. 88116, but that
future TIF proposals should more closely approximate the format requested
in said resolution.
2. That the lack of any debt issuance with regard to this Proposal
eliminates the concerns regarding same expressed in Resolution No. 88116.
3. That the Proposal stimulates further employment opportunities
within the City of Shakopee with the potential for a significant increase
in employment opportunities within the forseeable future.
4. That the proposal provides that the fiscal disparities
contribution associated with the Proposal will be borne by the district
which is the subject of the Proposal.
5. That, based upon the estimated market value of the property within
the district remaining constant since 1983 and the lack of reasonably
forseeable development with respect to said property, there is no apparent
opportunity costs associated with the Proposal.
6. That, given the present financial prospects of the beneficiary of
the Proposal, the opportunity for significantly increased property tax
revenues makes for a good the return on investment associated with the
Proposal.
7. That, given that the beneficiary of the Proposal is a
manufacturing concern, the opportunity for multiplier effects throughout
the local economy is greater than that associated with retail operations.
8. That, given the national and international markets for the
products of the beneficiary of the Proposal, the State's desires for
increased exportation of products will be furthered by approval of the
Proposal.
9. That, based upon the presentation of the City of Shakopee and with
the strict understanding that the district will have a duration of three
years and thereafter be dissolved, the full estimated market value will be
available as a tax revenue source within three years.
BOARD OF COUNTY COMMISSIONERS
SCOTT COUNTY, MINNESOTA
Date May 9. 19R9 Resolution No.. 89040
Motion by Commissioner Mackie Seconded by Commissioner Koniarski
10. That, although the City of Shakopee has more than ten (10) percent of
its tax capacity subject to TIF, based upon the foregoing information and
the presentation of the City of Shakopee, the Proposal represents a
demonstrably unique opportunity, as required by Scott County resolution No.
88116.
BE IT FURTHER RESOLVED, that given the favorable consideration by the
Shakopee City Council regarding the concern as to the limitation on the
duration of the district to three years noted above, the Scott County
Board of Commissioners goes on record in support of the Proposal.
BE IT FINALLY RESOLVED, that the County Administrator is directed to
forthwith convey this Resolution to the Shakopee City Council through its
Acting City Administrator for placement into the record of the Public
Hearing held purusant to Minn. Stat. Sec. 273.74, Subd. 2. on May 9, 1989.
YES NO
Koniarski X Koniarski
Bohnsack X Bohnsack
Mertz X Mertz
Stromwall X Strom.vail
Mackie 1 X Mackie
State of Minneaota } as.
Counlyof Sced J
I,Joseph F.Ries,9uly appointed,Qualified and acting County Administrator for the County of Scott,State of Minnesota,do hereby
certify that l have compared the foregoing copy of a sn hrrinn with the original minutes of the proceedings of the Board of
County Commissionei5.Scott County,Minnesota,at their session held onIhe_Q[hdayof Mev 1989._,now on file in my
office,and have fount the same tow a true and correct copy thereat.
witness my hand and official seal at Shakopee,Minnesota,thio 9tb da of Me /1 1989.
cevnq aamwnma
01010-2004
e
.uml.uo-.lw'.w.a...
MEMO TO: Shakopee Board of Review
FROM: LeRoy Houser
RE: Assessment Procedures
DATE: May 9, 1989
I believe there has been a misinterpretation and application of
MSA 273 .01 and 273.08. The statute in itself is rather nebulous
and is a little difficult for the average person to understand.
In researching the possible problems for gross inequities in real
estate taxes payable and assessment procedures, I am of the
opinion at least 758 of the problem lies with Statutes 273 .01 and
273.08, specifically the quartile assessment requirement.
273.01 states, "All real property subject to taxation shall be
listed and at least one fourth of the parcels listed shall be
appraised each year with reference to their value on January 2nd
proceeding the assessment so that each parcel shall be
reappraised at maximum intervals of four years. "
273.08 states, "The Assessor shall actually view, and determine
the market value of each property listed for taxation, including
the value of all improvements and structures thereon, at maximum
intervals of four years, and shall enter the value opposite each
description. "
It is misunderstood by most Scott County taxing district ( and
applied) that the Assessor should only value 1/4 of the taxing
district every four years. The key words in this Statute are
maximum intervals, which means that the properties have to be
valued at least every four years.
As most Assessors presently apply the Statute, they assess only
one quarter of the taxing district each year. That could, and
most often does, result in that quartile being assessed at that
magical number of 908 of market value. This results in one
quarter at 80%, one quarter at 708 and one quarter at 60% of
market value. The net result is tax inequity in all four
quartiles.
Worse yet, if everything was equal in relation to real estate
sales, 758 of the real estate sales could take place in the 3/4
quartile that did not qualify for reassessment. These sales
would be fed to the E.A.R.C. study to determine our sales ratio.
The aggregate ratio that would result would be 758. This would
trigger the mechanism for a mandated valuation increase like we
received this year. Consequently, the result could be 1008 of
market value in one quartile, 908, 808 and 708 in the other three
quartiles, still resulting in tax inequities. I believe this
also contributes to the "roller coaster" effect.
I have contacted a number of Legislators on this matter and they
assure me next year that they will provide a clarification of
these two sections or change the law to require Assessors to
value all properties uniformly irrespective of their quartile.
I would strongly suggest the Council pass a Resolution in support
of this and send it to the Chairman of the Tax Study Commission.
I would also suggest you request the sales located in the three
quartile that were not reassessed that occurred in the last two
years be removed from the E.A.R.C. study that determines our
sales ratio.
The defect in the application of 273 .01 and 273 .08 does
significantly add to the roller coaster effect of taxes and
results in gross inequity.