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3.2.B. 2023.05.08 Special City Council Minutes LBOAEPage 1 of 2 SPECIAL OTSEGO CITY COUNCIL MEETING MONDAY, MAY 8, 2023 5:30 PM OTSEGO PRAIRIE CENTER Call to Order: Mayor Stockamp called the meeting to order at 5:30 PM. Roll Call: Mayor Jessica Stockamp and Councilmembers: Jeff Dahl, Tina Goede, Brittany Moores, and Ryan Dunlap. City Staff: City Administrator/Finance Director Adam Flaherty, City Planner Daniel Licht, and City Clerk Audra Etzel. 1.Local Board of Appeal and Equalization (Continuation from April 24, 2023). Comments by the Wright County Assessor’s Office. Tammy Anderson Deputy Appraiser and Jaimee Jensen, Appraiser were in attendance. Ms. Anderson has a list of value reduction recommendations based on inspections of the respective properties and discussions with the property owners, who have previously agreed to the reductions, and is looking for a motion to approve: Corey & Kristin Tanner; 118-073-002090, 7952 Palmgren Ave NE; value of $422,100 reduced to $411,900; Todd & Linda Knudson; 118-121-003080, 10600 97th St NE; value of $437,900 reduced to $373,500; Allen & Sherry Elleraas; 118-121-007090, 10084 Kahler Ave NE; value of $476,000 reduced to $426,500; CM Dahl motioned to reduce the values based on inspections and recommendations from the Assessor as noted, seconded by CM Dunlap. All in favor. Motion carried 5-0. Charles & Rachel Landon; 118-026-001040, 14400 89th St NE; Ms. Anderson noted the property owners did not agree to an inspection, recommend no change to value of $331,000. CM Goede motioned for no change to the value of the property noted, seconded by CM Dahl. All in favor. Motion carried 5-0. CRAG Enterprises LLC, 118-096-001040, 15901 85th St NE, Ms. Anderson said the value for mini-storages formula is based on income and expense data analyzed and comparable sales, this information is confidential and not included in the packe t. Following a review of the income and expenses, inspections of the respective properties, and discussions with the property owners; and looking for a motion to reduce the value to $4,155,000. Item 3.2.B. MINUTES OF THE CITY OF OTSEGO SPECIAL CITY COUNCIL MEETING - LBOAE MAY 8, 2023 Page 2 of 2 Steve Smith, 9145 Arnold Ave NE, Monticello is one of the property owners along with his family members. They want to make sure the value was on track; their taxes are the business’s second highest expense. Mr. Smith is having a hard time understanding the large value increase and noted it will be challenging to pass along the increase to their renters. Ms. Anderson said mini-storages are unique to value due to the income and expense analysis used for the calculation. Wright County mini-storage values increased an average 53%, this property increased 43%. Ms. Anderson asked if an appraisal has been completed? Mr. Smith said the appraisal they have is from two years ago, they are working on getting an updated appraisal. Ms. Anderson noted there are not a lot of sales of mini-storages to compare to; they did look at a sale in Hennepin County. Ms. Anderson explained the options for the property owner: a letter will be sent with the value agreed upon tonight, the property owner will have the option to go to the Wright County Board in June, and the last possible step would be tax court. Mr. Smith agrees with the value adjustment. CM Moores motioned to reduce the value to $4,155,000 based on income and expense data analyzed, and recommendation from the Assessor, seconded by CM Goede. All in favor. Motion carried 5-0. 2. Adjourn. CM Goede motioned to close the meeting at 5:48 PM, seconded by CM Dahl. All in favor. Motion carried 5-0. _________________________________ Jessica Stockamp, Mayor ATTEST: ________________________________ Audra Etzel, City Clerk