AGENDA APRIL 26, 2021 All meetings of the St. Louis Park City Council will be conducted by telephone or other electronic means starting March 30, 2020, and until further notice. This is in accordance with the local emergency declaration issued by the city council, in response to the coronavirus (COVID-19) pandemic and Governor Walz's “Stay Safe MN” executive order 20-056. The St. Louis Park City Council will meet on April 26, 2021 at 6:30 p.m. by videoconference to reconvene the Local Board of Appeal and Equalization (LBAE), which will be followed by a joint study session with the St. Louis Park Planning Commission and Board of Zoning Appeals. Meeting participants will meet by electronic device or phone rather than by being personally present at the city council's regular meeting place at 5005 Minnetonka Blvd. Visit bit.ly/slpccagendas to view the agenda and reports. Members of the public who want to address the council during the reconvene of the LBAE should call the 952.562.2886. Call when the meeting starts at 6:30 p.m. and follow instructions provided. Members of the public can monitor the meeting by video and audio at bit.ly/watchslpcouncil or by calling +1.312.535.8110 and using access code 372 106 61 for audio only. Cisco Webex will be used to conduct videoconference meetings of the city council, with council members and staff participating from multiple locations. 6:30 p.m. – RECONVENE LOCAL BOARD OF APPEAL AND EQUALIZATION (LBAE) Immediately following LBAE – STUDY SESSION Discussion items 1. 30 mins. Parks and recreation advisory commission 2021 workplan review 2. 30 mins Planning commission and board of zoning appeals 2021 workplan review 3. 60 mins. Zoning code size limits for houses 4. 5 mins. Future study session agenda planning and prioritization 5 mins. Communications/updates (verbal) Written reports 5. March 2021 monthly financial report 6. First quarter investment report (January – March 2021) 7. Redistricting update 8. Sustainability division update for Q2 2021 9. Freight rail switching wye 10. Development update 11. Development proposal for 3440 Beltline Boulevard The agenda is posted on Fridays on the official city bulletin board in the lobby of city hall and on the text display on civic TV cable channel 17. The agenda and full packet are available by noon on Friday on the city’s website. If you need special accommodations or have questions about the meeting, please call 952-924-2525. 2021 Local Board of Appeal and Equalization Reconvene – April 26, 2021 Virtual Meeting Format PROPOSED AGENDA 1. Reconvene the St. Louis Park Local Board of Appeal and Equalization 2. Roll Call – Declaration of Quorum 3. Acknowledgement of Trained Members (Kraft & Rog) 4. Review of Properties in Appeal a. Board Action - Where Petitioner & Assessing Staff are Not in Agreement b. Board Action – Where Petitioner has requested late addition to roster and staff has not had time to complete value review (these continue until the board adjourns) c. Board Action – Where Petitioner has withdrawn or not responded d. Board Action - Where Petitioner & Assessing Staff are in Mutual Agreement For appeals in groups a-b-c, it is suggested that the board review each parcel individually, discuss as you will and make individual board rulings. For the mutual agreement category, each parcel should be read into the record and the board may take one group action per DOR direction (April 2016). 5. Instruct Assessor to Complete Record of Changes for Submittal 6. Instruct Assessor to Inform Petitioners of Board Action via Mail 7. Complete the Local Board of Appeal and Equalization Certification Form 8. Adjourn if Board business is completed Reconvene mee ting of April 26, 2021 Page 2 Title: 2021 Local Board of Appeal and Equalization Background for the 2021 St. Louis Park Local Board of Appeal and Equalization All property owners are entitled to the right of appeal regarding their classification and market value. The City is required by statute to conduct a Local Board of Appeal & Equalization meeting to hear appeals or conduct an open book meeting with the next options being the County Board of Appeal & Equalization and ultimately to the Minnesota State Tax Court. The focus for the board is: the property classification which is determined by use; and, the market value which is based on the characteristics of the real estate and market conditions as of the date of the assessment (January 2, 2021). Minnesota statute requires that all properties are assessed at full market value. The two dominant definitions of market value are: MN Statute 272.03 – “Market value” means the usual selling price at the place where the property to which the term is applied shall be at the time of assessment; being the price which could be obtained at a private sale or an auction sale, if it is determined by the assessor that the price from the auction sale represents an arm’s length transaction. The price obtained at a forced sale shall not be considered. Appraisal Institute – The most probable price, as of a specified date, in cash or in terms equivalent to cash, or in other precisely revealed terms, for which the specified property rights should sell after reasonable exposure in a competitive market under all conditions requisite to a fair sale, with the buyer and seller each acting prudently, knowledgeably, and for self-interest, and assuming that neither is under undue duress. (The Appraisal of Real Estate, 13th Edition, Appraisal Institute [2008], page 23) The Board convened on April 12, 2021 at which meeting a total of eight (8) parcels were recognized to be under appeal. The Board set the process and chose to reconvene April 26 to review the merit of each appeal and to rule on them. A few housekeeping observations are made for the reference of the board. • One trained and certified Board member (Kraft and/or Rog) must be present at each meeting the Board is in session. Best practice is for multiple trained members. • Timeline of the assessment: The assessment as of January 2, 2021 is set relative to market activity occurring prior to the date of assessment. The potential value influence arising from the Covid-19 pandemic will be reviewed from the perspective of market reactions in setting the 2021 assessment. • The time window for the board to conclude business is 20 days after convening. • It is essential that the Board rules on each question before it and likewise that the Board recognizes that it can reduce, sustain or increase valuations as deemed necessary. • Important – DOR direction: “It is the board’s responsibility to hear all appeals presented until the board adjourns. A property owner can present their appeal at the initial meeting or at any of the reconvene meetings. The board must hear that appeal and make a decision. The board cannot dismiss the property owner’s appeal, unless the meeting is adjourned.” The Hennepin County Assessor has reviewed that language and requested that Local Boards accept appeals until final adjournment. We are doing so. Reconvene mee ting of April 26, 2021 Page 3 Title: 2021 Local Board of Appeal and Equalization • At the writing of this Board packet, staff has added one (1) additional appeal to the roster and endeavored to respond in a timely fashion. • Prior to adjourning, the board should instruct the assessor to submit a record of their actions on the Department of Revenue required form. • Finally, the Local Board of Appeal Certification Form must be signed at each Board meeting by all Board members present. The Hennepin delegate takes care of this item. Background to Valuation Methodologies: The modeling associated with the mass assessment accommodates variations between neighborhoods, within neighborhoods and includes consideration of location, age, style, size, finish materials, condition, updating, etc. depending on the information available. Adjustments and valuation change orders have been made where necessary during the informal review process prior to the Board. The Board process differs from mass valuation modeling in that the assessing staff re-appraises the subject property individually by direct comparison to market transactions. As part of the review process, staff frequently re-inspects properties to review the accuracy of attributes and especially current condition which is often a highly important variable. This facet of routine business has not occurred for the 2021 Board season due to the pandemic. Instead, staff has engaged the property owner in a candid conversation of the property condition and attributes which depends a bit on the last interior inspection date. In cases where the revaluation does not result in a conclusion satisfactory to the appellant, the appeal process has been outlined. As such, the Local Board depends on active participation from all parties involved including the property owner, assessing staff and the board members. All property owners are requested to state their basis of appeal, their opinion of the market value and informed that they may present information in written form and by testimony supporting their opinion of value and/or classification. Reconvene mee ting of April 26, 2021 Page 4 Title: 2021 Local Board of Appeal and Equalization Focal Points for the Board – Agenda as Indicated on Cover Sheet, decisions on: 1. Board Action – One (1) appeal has not been resolved to a mutual agreement between the property owner’s tax representative and assessing staff. It is requested that the Board hear and decide the merits of the case. We have informed the owner and their representative that the Board commonly allows 5-10 minutes for presentation followed by a 3-5 minute presentation by the assessing staff. The Board may adjust these time allowances as needed.