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HomeMy WebLinkAbout02-25-92 ~x ~ a • CITY OF LAKEVILLE ECONOMIC DEVELOPMENT COMMISSION MEETING MINUTES FEBRUARY 25, 1992 The meeting was called to order at 7:04 p.m. in the City Hall conference room by Chairman Emond. Members present were Berg, Matasosky, Emond, Erickson, Detjen, Hanlon. Members absent: Tushie and Brantly (both excused). Others present: Michael Sobota, Community and Economic Development Director; Elizabeth Halbach, Chamber of Commerce; Marvin Pulju, Dakota County Assessor; Scott Nelson, Manager of Commercial/Industrial Properties -Dakota County Assessor's office. 92.04 Motion was made by Berg, seconded 6y Erickson to approve the minutes of the January 28,1992 EDC minutes as written. Motion passed unanimously. Chairman Emond called on Mr. Sobota to introduce Mr. Pulju. Mr. Sobota indicated that at the last EDC meeting, there was discussion regarding property taxes and the revaluation procedures. Mr. Sobota introduced Mr. Pul~u who gave a presentation on Dakota County assessment procedures. He indicated there are 105,000 parcels county-wide with 9,500 tax parcels in Lakeville. The role of the Assessor's office is to determine a value and • classify properties under the State procedures. The State requires values to be between 90 and 105 percent of accepted sales ratio values. He indicated a problem facing the Assessor's office is that there are very few sales of commercial/industrial property for comparative purposes. He indicated that for 1992 the Assessor's office reviews sales between October 1,1990 and September 30,1991. During this time period, there were only three sales of commercial/industrial property within Lakeville. Mr. Pulju indicated that an attempt to use good sales, not stress related sales such as RTC type property. He further indicated that the residential properties are being revalued using the computer-aided assessment program or CAMA. This process was begun in 1988 and is working well according to Mr. Pulju. He indicated the Assessor's office is considering the conversion of commercial/industrial properties to the CAMA system as well. Mr. Pulju and Mr. Nelson indicated that for commerciaUindustnal properties, three considerations for arriving at a value are used: 1. Replacement costs of the building. 2. Market. 3. Income approaches. Mr. Pulju indicated that the Assessor's office attempts to survey commercial/industrial properties in order to get income information on each individual property. Mr. Pulju indicated only a 20 percent response from property owners to this survey. This makes it difficult for his office to analyze the impact of an income based appraisal. The EDC discussed the • issue of obtaimng income based information as a critical part of the revaluation process. Mr. Pulju noted that the income information is private data to be used only by the Assessor's office. Members of the EDC indicated that most property owners are uncomfortable with providing this type of information to the Assessor . but recognized it is advantageous to the property owner to have that information available to the Assessor. Mr. Matasosky asked what procedure would be recommended for a property owner concerned about the valuation that is placed on their buildings. Mr. Pulju indicated that the most direct and effective means was to have the property owner contact the Assessor's office staff directly. In most cases, Mr. Pulju indicated that if the information is provided by the property owner, adjustments can be made to the evaluation. Mr. Pulju indicated that inmost cases these issues can be worked out with the Assessor's office staff. Mr. Pulju did state that there has been an increase in tax court cases metro wide of about 40 percent. EDC members noted that there is stress in the commerciaUindustrial real estate community. Chairman Emond thanked Mr. Pulju and Mr. Nelson for their helpful information. Mr. Matasosky noted that he would make a contact with Toro to share information regarding the revaluation process. Chairman Emond next called on Dale Detjen to update the EDC on the Strategic Growth Management Task Force. Mr. Detjen reported that the first two meetings were organizational and that there is a diverse group of members on the task force including varying degrees of understanding of the development process. He indicated that there is some skepticism on the part of a couple of members. He felt that the legislative information presented at the most recent meeting was helpful. Mr. Detjen stated he would like to keep the EDC informed of the process and looked forward to the Task Force providing direction to the City. • Mr. Sobota reviewed the protects currently in process. There was discussion regarding Viking Acoustical. Brett Starkweather, President of the company is looking for a new building. Vikings market has changed and the current building he is in does not serve his needs. Mr. Matasosky noted that he had recently met with Brett and further information should be provided to Viking Acoustical. Mr. Sobota also noted that residential platting activity continues at a rapid pace. He handed out a list of 20 plats in various stages of review. Robert Erickson, City Administrator updated the EDC on the special Council meeting and work session with Apothecary Products going on that evening. He invited members of the EDC to attend the special Council meeting. Meeting adjourned: 8:10 p.m. Respectfully submitted: ichael Sobota, Community and Economic Development Director A'ITE~T: • ~ Eric on, Secretary I~~` ,