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HomeMy WebLinkAbout2004-04-08 Council Minutes CITY OF CORCORAN CITY COUNCIL MEETING APRIL 8, 2004 1 The Corcoran City Council met on April 8, 2004 at City Hall in Corcoran, Minnesota. Present were Councilors Bucher, Guenthner, and Lymangood. Councilors Gageby and Thomas were excused absent. Also present were Administrator Vergin, Clerk Tillmann, Attorney Carson, Engineer Vander Top, and City Assessors Ann Risch and Rolf Erickson. Mayor Guenthner called the meeting to order at 7:01 p.m., followed by the Pledge of Allegiance to the flag. MOTION by Bucher, seconded by Lymangood, and carried unanimously to approve the agenda with the following addition: • Discussion of petition received by Charter Commission -- Lymangood Open Forum There were no requests by the public to speak during open forum. Consent Agenda MOTION by Bucher, seconded by Lymangood, and carried unanimously to approve consent agenda items b through d, with the exception of item a, as follows: b. Approve the March 25, 2004 Regular Council Meeting Minutes as presented. c. Approve payment of the April 8, 2004 Claims, #4125 - 4142, in the amount of $36,783.93, as presented, acknowledging Councilor Lymangood’s abstention from the approval check #10279 to Smith Barney, due to a potential perceived conflict of interest, because of the nature of his outside employment. c. Adopt Resolution #2004 – 23, authorizing the execution and delivery of an amended joint and cooperative agreement with the North Hennepin Human Services Council (NHHSC), and authorizing the City Clerk to sign said agreement, on file with the City Clerk’s office. Discussion was held regarding consent agenda item 5.a. Minutes of March 23, 2004 Special Council meeting. Substantive changes were made to the minutes, and after extensive discussion the following motion was made: MOTION by Lymangood, seconded by Bucher, and carried unanimously to table consideration of the March 23, 2004 Special Council Meeting Minutes until April 22, 2004. Local Board of Appeals and Equalization Hearing Mayor Guenthner opened the Local Board of Appeals and Equalization Public Hearing at 7:11 p.m. City Assessors Anne Risch and Rolf Erickson were present. Mayor Guenthner provided an overview of the process to be followed for tonight’s public hearing, and advised that the Board of Equalization Hearing is the first step in the process for homeowne rs to challenge their market values. The City Council acts as the Board of Review and has the ability to adjust market valuations, or defer action pending further review. If deferment were Call to Order Roll Call Pledge of Allegiance Agenda Approval Open Forum Consent Agenda Approval Consent Agenda Item 5.a. Table consideration of Consent Agenda Item 5.a. Local Board of Appeals and Equalization Hearing CITY OF CORCORAN CITY COUNCIL MEETING APRIL 8, 2004 2 necessary, the continuation hearing would be held on April 22, 2004. Councilor Lymangood added that continuing the hearing allows the City Assessor an opportunity to view properties of concern and report any findings back to the Council that may affect the valuation. Assessor Risch identified several handouts that were provided to individuals wishing to contest their valuation. The appropriate first step is to contact the City Assessor and attend the Local Board of Review. Any taxpayer that does not receive satisfaction at the local level may appear before the County Boar d of Appeals and Equalization and further through Minnesota Tax Court. LuAnn Hagen from the Hennepin County Assessor’s Office was also present. Assessor Risch further stated that there seems to be a great deal of confusion between the Market Value of property and the Limited Value. Market Value is defined as the most probable price, in terms of money, which a property should bring in a competitive and open market under all condition requisite to a fair sale, assuming the price is not affected by undue stimulus. The Limited Value is set by the State Legislature and is an attempt to provide relief to properties with quickly increasing values. Limited Value will be phased out in early 2007. Mayor Guenthner questioned the median sale price for existing homes in the area. Assessor Erickson stated that residential properties priced under $350,000 don’t stay on the market very long, the median for existing residential homes is $295,000.. The following individuals addressed the Board of Review: Greg Ebert, 23350 County Road 10, regarding several commercial properties. He is contesting the valuation of the properties, because the percentage increases of the valuations are inconsistent, ranging from 6 – 40 percent. Ken Kluck, 21800 County Road 50, is questioning the increase in valuation of a 10-acre parcel of open land. The property is currently being cropped and has some wetland area with one building right. The property is on green acres. Joe Anderson, 21525 Nystrom Lane, is contesting the valuation of his 3- bedroom rambler and would like the City Assessor to come view the property. Dan Petrie, 7575 Commerce Street, is contesting the valuation of his commercial property. Brook Peterson, 10620 Cain Road, is contesting the valuation of his residential property. Ken Smith, 23165 Meadowview Drive, is contesting the valuation of his residential property. Loren Leuer, 19975 – 75th Avenue N, is contesting the valuation of his commercial property. Identification of Aggrieved Property Owners CITY OF CORCORAN CITY COUNCIL MEETING APRIL 8, 2004 3 John Spaeth, 7525 Commerce Street, is contesting the valuation of his commercial property. Mark Wims, 20095 – 75th Avenue N, is contesting the valuation of his commercial property. Pat Case is contesting the valuation of undeveloped property on Willow Drive. Todd Russ/TMR Properties is contesting the valuation of commercial properties located at 7670 Commerce Street and 7604 Commerce Street. Steve Kohnen, 23240 County Road 30, is contesting the valuation of his residential property. Jamie Heuton, 9825 High Bluff Lane, is contesting the valuation of his residential property. Mike Brady, representing Corcoran Investments, LLC, is contesting the valuation of 15 acres of undeveloped land at the intersection of County Roads 30 and 116. Lee Sunram, 20010 – 75th Avenue, is contesting the valuation of his commercial property. Mayor Guenthner recessed the Board of Appeals and Equalization Public Hearing at 7:32 p.m. The regular Council meeting was reconvened at 7:34 p.m. Unfinished Business Membership Requirements for Commissions Administrator Vergin advised that due to the resignation of Commission Member Brent Anderson, which was declined by the City Council on March 11, 2004 because of the temporary nature of his absence from the community, the City Council requested that the membership requirements for all City Commissions be re-evaluated. The Planning and Wastewater Commissions do not require that members be residents of the community, however, the Parks and Trails Commission does require members to be residents. Mayor Guenthner suggested that the Code could be modified to stipulate that the City Council does not require members to be residents, but that no more than one member, for example, may be a non-resident, if the non-resident status is only for a limited amount of time. Councilors Bucher and Lymangood were in agreement with this change. Attorney Carson was directed to draft a modification to the City Code reflecting this change. New Business Petition for SW Area Utility Services Discussion was held regarding a petition from property owners in the SW district to accelerate the provision of services to the area. Recess Public Hearing Reconvene Regular Meeting Membership Requirements for Commission Attorney Direction Petition for SW Area Utility Services CITY OF CORCORAN CITY COUNCIL MEETING APRIL 8, 2004 4 Administrator Vergin advised that the petition was received at City Hall on March 23, 2004. For the past 18 – 24 months, the City has been investigating the provision of services to the area, and the area property owners are very interested in pursuing this issue. Corcoran has offered to work in cooperation with the City of Medina for the provision of services, however, it seems that Medina may not be in favor of pursuing at this time, as there are concerns with allowing premature development. Don Tomann, 22510 Highway 55, advised that 80% of the property owners in the area have signed the petition. Councilor Lymangood expressed his appreciation for those that put the petition together and advised that he struggles with the appropriate next step to take, adding that at least 80% of property owners in the Business Park of the SW District are in favor of bringing services to the area and Corcoran has the least amount of control with the timing because it is a cooperative effort with the City of Medina. Questioned if Corcoran was sufficiently communicating our desire for services with Medina. Discussed services to the City of Medina from Plymouth a number of years ago. Mayor Guenthner suggested that Planner Lindahl assist with how to address working with Medina and phasing of services to the SW District in Corcoran, without affecting phasing of the City of Medina. It was suggested that a meeting between the Mayors and Administrators of the two Cities be held, then a formal request in writing to the City of Medina, articulating our understanding of their concerns and how we would address those concerns could follow. Councilor Lymangood questioned if the City had responded to the letter from the City of Loretto. Administrator Vergin advised that a meeting had been scheduled for April 8, and was cancelled. She is trying to reschedule, but no date has been set. Mayor Guenthner will contact Mayor Torve prior to the meeting with the City of Medina. Ed Schumacher, 23710 Highway 55, questioned if the Corcoran was still pursuing providing water in the Loretto area. Mayor Guenthner advised that the Cities of Corcoran, Loretto and Medina intend to work cooperatively, as identified in the City’s Comp Plan. MOTION by Lymangood, seconded by Bucher, and carried unanimously to adopt Resolution #2004 – 24, recognizing receipt of a petition for infrastructure services into the Business Park Zoning District in the Southwest District of Corcoran, resolving to continue efforts to determine the feasibility and resources to bring services to the area, and to follow proper and legal procedures for providing improvements through the assessment process, in conformance with MN Stat. 429. Draft Capital Improvement Plan Administrator Vergin presented the draft Capital Improvement Plan for 2004 – Public Comment Public Comment Adopt Resolution #2004 – 24, recognizing receipt of petition Draft Capital Improvement Plan CITY OF CORCORAN CITY COUNCIL MEETING APRIL 8, 2004 5 2009 and requested comments from the Council. The Public Hearing will be held on Thursday, April 22, 2004. Council had questions regarding Exhibit B, which was prepared by Northland Securities. Councilor Lymangood also questioned by the share of debt for Rockford School District was so high compared to others on the chart. Administrator Vergin advised that ISD 883 encompasses a large portion of the City of Corcoran, but would suggest that all school districts be included. Councilor Lymangood added that he would like to address the replacement of City vehicles and machinery when the Council meets to address long term goals and objectives in May or June 2004. Council and Staff Reports Upcoming Meetings Mayor Guenthner called the following special meetings of the City Council: April 20, 2004, 7:00 p.m. at City Hall – Joint Meeting with the City Council, Parks and Trails Commission and Planning Commission to address the Park Dedication Ordinance and Park Dedication Fees. Administrator Vergin will provide Council with Consultant Buss’ outline prior to the meeting. April 29, 2004 7:00 p.m. at City Hall – Special City Council meeting to address Engineering Issues relating to the Implementation Plan. Acknowledgement of Correspondence from Laurent Development Attorney Carson advised that he has reviewed the memo and materials received from Laurent Development and has had conversations with Administrator Vergin, Planner Lindahl, and Consultant Buss regarding the Park Dedication Ordinance and associated fees. Will provide Council with a response in written form prior to the April 20, 2004 Joint meeting with the Parks and Trails Commission. Detour Policy Administrator Vergin advised that several of the surrounding communities and Hennepin County have supported and adopted resolutions asking MnDOT to reconsider their current policy regarding the reduction of speed limits in detour areas. Correspondence from Patrick Hughes, Metro District Engineer of MnDOT, has been received, indicating that there is a policy that allows for the reduction of speed limits, but those reductions are only done based on MnDOT’s engineering studies and only on detour routes or construction zones. The intent of the resolution was to request that local authorities, such as the County and the City, be given the ability to control speed limits on local roads in detour areas. Vergin further noted that she has spoken with Hennepin County Transportation Director Jim Grube, whom supports this request and feels further communication with MnDOT would be appropriate. Engineer Vander Top noted that he and Administrator Vergin met with Hennepin County Design Staff last week to address the detour plan for the Call Special Meetings Acknowledge correspondence from Laurent Development Detour Policy CITY OF CORCORAN CITY COUNCIL MEETING APRIL 8, 2004 6 County Road 19 construction project, requesting that speed be accounted for the in detour plan before the City approves the design. Councilor Lymangood suggested that staff meet with Ed Brown, MnDOT, Jim Grube, Hennepin County and representatives of surrounding communities regarding this issue, and that copies of Mr. Hughes’ letter be forwarded to Senator Limmer and surrounding communities. Charter Commission Report Councilor Lymangood advised that the Charter Commission received a petition on April 2, 2004 from a group of residents requesting an amendment to the City Charter pertaining to the issuance of debt. The Charter is required to meet and respond to the merit of the petition. An emergency Charter Commission meeting has been called for Monday, February 12, 2004 at 7:00 p.m. at City Hall. Councilor Lymangood questioned if it was appropriate for the City Attorney to provide legal guidance to the Charter Commission. Council agreed by unanimous consensus that it is appropriate for the City Attorney to provide guidance to the Charter Commission regarding the legal process pertaining to the petition. Staff will advise the five petitioners of the Charter Commission meeting on April 12. Comments were heard from Don Tomann, 22510 Highway 55, regarding the accuracy of the statements in the petition. Mayor Guenthner advised that the Council would not be addressing the petition until the Charter Commission formally brought it forward. Attorney Carson concurred. Copies of the petition would be available at the Charter Commission meeting. Mayor Guenther recessed the Regular Council meeting at 8:34 p.m. and reconvened as the Local Board of Appeals and Equalization at 9:24 p.m. Assessor Risch addressed the following residential properties: Ken Kluck, 21800 County Road 50 – The valuation reflects what is currently happening in the market. The property is on green acres, and value increased 24% over 2003 to $114,000 for the ten acres, or $11,400 per acre. Recommends no change to the valuation. MOTION by Bucher, seconded by Lymangood, and carried unanimously to accept the Assessor’s recommendation and affirm the valuation of said property, based on comparables provided by the City Assessor. Joe Anderson, 21525 Nystrom Lane, withdrew his request for re-consideration of the valuation. MOTION by Bucher, seconded by Lymangood, and carried unanimously to accept the Assessor’s recommendation and affirm the valuation of said property, based on comparables provided by the City Assessor. Charter Commission Report Public Comment Recess Regular Meeting Reconvene Board of Appeals Assessor’s Recommendations 21800 County Road 50 Affirm Assessor’s Valuation Joe Anderson, 21525 Nystrom Ln Affirm Assessor’s Valuation CITY OF CORCORAN CITY COUNCIL MEETING APRIL 8, 2004 7 Brook Peterson, 10620 Cain Road -- Assessor Risch recommends no change to the valuation. MOTION by Lymangood, seconded by Bucher, and carried unanimously to accept the Assessor’s recommendation and affirm the valuation of said property, based on comparables provided by the City Assessor. Ken Smith, 23165 Meadowview Drive – Assessor Risch advised that the Board of Appeals lowered the valuation of this property last year. For 2004, the valuation increased 11% and Mr. Smith feels that is an excessive increase. Assessor Risch recommends no change to the valuation. MOTION by Lymangood, seconded by Bucher, and carried unanimously to accept the Assessor’s recommendation and affirm the valuation of said property, based on comparables provided by the City Assessor. Pat Case is contesting the valuation of undeveloped property on Willow Drive. Assessor Risch advised that Mr. Case intends to pursue green acres for the property and accepted the valuation at the close of their conversation. MOTION by Bucher, seconded by Lymangood, and carried unanimously to accept the Assessor’s recommendation and affirm the valuation of said property, based on comparables provided by the City Assessor. Steve Kohnen, 23240 County Road 30, is not contesting the valuation of his residential property, but has issues he would like the Council to address. He feels that the issues, relating to traffic enforcement on County Road 30, have an affect on the value of his property. Administrator Vergin will follow up with Mr. Kohnen’s concerns. MOTION by Bucher, seconded by Lymangood, and carried unanimously to accept the Assessor’s recommendation and affirm the valuation of said property, based on comparables provided by the City Assessor. Jamie Heuton, 9825 High Bluff Lane – Assessor Risch advised that Mr. Heuton is agreeable to the valuation set by the Assessor. MOTION by Bucher, seconded by Lymangood, and carried unanimously to accept the Assessor’s recommendation and affirm the valuation of said property, based on comparables provided by the City Assessor. Mike Brady, representing Corcoran Investments, LLC -- withdrew their request for re-consideration of the valuation. No action taken by Council. Assessor Erickson addressed the following commercial properties: Mark Wims, 20095 – 75th Avenue N – The valuation increased 57%, from $363,000 in 2003 to $570,000 for 2004. Assessor Erickson is recommending a Brook Peterson, 10620 Cain Road Affirm Assessor’s Valuation Ken Smith, 23165 Meadowview Dr Affirm Assessor’s Valuation Pat Case, Willow Drive Affirm Assessor’s Valuation Steve Kohnen, 23240 Cty Rd 30 Affirm Assessor’s Valuation Jamie Heuton, 9825 High Bluff Ln Affirm Assessor’s Valuation Corcoran Investments LLC, withdrawn request Mark Wims, 20095 – 75th Avenue change in valuation to $440,000, an increase of 21.2% over 2003. Mr. Wims advised that his CITY OF CORCORAN CITY COUNCIL MEETING APRIL 8, 2004 8 company builds buildings like his for a living and he knows what they are worth. For a small business such as his, feels that a 21% increase is still too high. Mayor Guenthner advised that the Local Board of Appeals is the first step in the process. If Mr. Wims is still not satisfied, he may address the County Board of Appeals. Mayor Guenthner also added that the Council, acting as the Local Board of Appeals, relies on the expertise of the contracted staff. Without objective criteria contrary to the Assessor’s recommendation, it is difficult to change the valuation. Councilor Lymangood added that the recommended valuation is a reduction of $130,000, and calculates to $70 per square foot. Suggested that Mr. Wims would need to provide evidence that $70 per square foot is not the correct valuation, and has the option to proceed to the next level if he desires. MOTION by Bucher, seconded by Lymangood, and carried unanimously to accept the Assessor’s recommendation and change the valuation of said property to $440,000. Greg Ebert regarding three commercial properties as follows: 07-119-23-43-0005 – Ebert Construction Office Building located at 23350 County Road 10. Assessor Erickson advised that Mr. Ebert is agreeable to the valuation set by the Assessor at $1,212,500 for this parcel. MOTION by Lymangood, seconded by Bucher, and carried unanimously to accept the Assessor’s recommendation and affirm the valuation of said property, based on comparables provided by the City Assessor. 07-119-23-43-0004 – Lumberyard located at 9350 County Road 19. Assessor Erickson advised that this property was valued at $1,141,000, but is recommending a change to reduce the valuation to $950,000. MOTION by Bucher, seconded by Lymangood, and carried unanimously to accept the Assessor’s recommendation and change the valuation of said property to $950,000. 07-119-23-43-0006 – Former County Building located at 23400 County Road 10. Assessor Erickson advised that this property was valued at $468,000, but is recommending a change to reduce the valuation to $400,000. MOTION by Bucher, seconded by Lymangood, and carried unanimously to accept the Assessor’s recommendation and change the valuation of said property to $400,000. Dan Petrie, 7575 Commerce Street (26-119-23-11-0043) – Assessor Erickson advised that he recommends decreasing the valuation from $393,000 to $312,000 for this commercial property. Change valuation to $440,000 Greg Ebert, 23350 Cty Road 10 Affirm Assessor’s Valuation Greg Ebert, 9350 County Road 19 Change Valuation to $950,000 Greg Ebert, 23400 Cty Rd 10 Change Valuation to $400,000 Dan Petrie, 7575 Commerce St CITY OF CORCORAN CITY COUNCIL MEETING APRIL 8, 2004 9 MOTION by Bucher, seconded by Lymangood, and carried unanimously to accept the Assessor’s recommendation and change the valuation of said property to $312,000. Loren Leuer, 19975 – 75th Avenue N (26-119-23-11-0039) – Assessor Erickson advised that Mr. Leuer is agreeable to the valuation set by the City Assessor. No action taken by the Council. John Spaeth, 7525 Commerce Street -- Assessor Erickson advised that Mr. Spaeth is agreeable to the valuation set by the City Assessor. No action taken by the Council. Todd Russ/TMR Properties is contesting the valuation of two commercial properties as follows: 26-119-23-11-0031, located at 7604 Commerce Street. Assessor Erickson advised that this property was valued at $681,000, but is recommending a change to reduce the valuation to $577,000. MOTION by Bucher, seconded by Lymangood, and carried unanimously to accept the Assessor’s recommendation and change the valuation of said property to $577,000. 26-119-23-11-0030, located at 7670 Commerce Street. Assessor Erickson advised that Mr. Russ is agreeable to the valuation set by the City Assessor for this commercial property. No action taken by the Council. Lee Sunram, 20010 – 75th Avenue. Assessor Erickson advised that he recommends decreasing the valuation from $566,000 to $495000 for this commercial property. MOTION by Bucher, seconded by Lymangood, and carried unanimously to accept the Assessor’s recommendation and change the valuation of said property to $495,000. Assessor Erickson advised that all property owners appearing before the Local Board of Appeals and Equalization this evening would receive a letter identifying the action taken this evening. MOTION by Bucher, seconded by Lymangood, and carried unanimously to adjourn the Local Board of Appeals and Equalization Public Hearing at 10:00 p.m. Councilor Lymangood expressed his appreciation to Assessor Risch and Assessor Erickson for the information presented this evening. Added that the map of properties reviewed was very helpful. Requested that they provide feedback on the process followed this year. Added that allowing property owners to meet in a private setting with the Assessor was a good idea. Change Valuation to $312,000 Loren Leuer, 199775 – 75th Ave No action taken John Spaeth, 7525 Commerce St No action taken Todd Russ, 7604 Commerce St Change Valuation to $577,000 Todd Russ, 7670 Commerce St No action taken Lee Sunram, 20010 – 75th Ave Change Valuation to $495,000 Property Owner Notification Adjourn Public Hearing CITY OF CORCORAN CITY COUNCIL MEETING APRIL 8, 2004 10 ayor Guenthner added that in the future, it may be appropriate to recess the meeting to the continuation date once all aggrieved property owners have been identified to allow the Assessor more time to evaluate properties. Assessor Erickson added that property owners cannot contest values without an inspection of their property. MOTION by Bucher, seconded by Lymangood, and carried unanimously to adjourn the meeting at 10:05 p.m. _______________________________ Kary Tillmann, City Clerk/Treasurer Adjournment