Minutes - Council Work Session - 01/29/2008

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StationStore is for sale and the Met Council will work to purchase the site. She stated that there is an environmental study being done to check for site contamination from tanks that were on the property. She explained another site that they attempted to acquire is Clint Wilson Auto Ranch. She explained that there are title issues being reviewed in Court. She stated that Met Council has a hold on the funds for these two properties. Councilmember Dehen asked about the assessed value versus the appraised value. Ms. Frick stated that she is not aware of how the County calculated the values but it has been consistent in a range from previously acquired properties. She explained that it goes on a scale of highest and best use. Mayor Gamec explained that he has been working through Anoka County on a property and the assessed value is the basic building and property. He explained the appraised value is with improvements. He eXplained that the County looks at the square footage and what it would take to make the business functional again. City Administrator Ulrich explained that the pumps and tanks, machinery and equipment are not included in the assessment. He explained that they put a value on property that is taxed. Ms. Frick stated that she speculates a private home and land is based on the building and the appraisal is always lower than the assessment. Councilmember Olson stated that the State is working to bring the assessment and appraisal rates closer together which is the reason why property taxes are increasing. Mayor Gamec explained that an assessment is the actual value of land. He explained for the gas station on the example the car wash equipment and fixtures are taken into consideration. Councilmember Olson stated that the revenue is evaluated at an appraisal. Councilmember Jeffrey stated that the land and equipment are considered so that all aspects of the business are included. He explained that it includes the value of the business in addition to the property and building. Ms. Frick explained that on the document an appraisal figure was given because it was requested by the bank. Councilmember Dehen stated that for tax purposes you would like the rate to be lower but when selling you want the value higher. He questioned ifthe property is correctly assessed. Ms. Frick explained that the RALF program administration had reported that the levies were not included for a few years because MnDOT had a large amount of money from other projects. She explained that the annual levy brings in about 3.3 million dollars during a July to July fiscal year. She explained that Frank's property is worth more money than is available. She explained that a business owner like Frank would like to be bought out at a specific amount to meet its value. City Council Work Session / January 29, 2008 Page 10 of17