HomeMy WebLinkAbout1968/07/15 - ADMIN - Minutes - City Council - Regular BOARD OF REVIEW SETING
The OBBo rd Ju Review of the assessment district of St
7 3 lY 968 , immediately • Louis Park convened at
Y prior to the Council meeting .
Councilmen present ; Murray Galinson
Richard Graves , James HeltZer ,
Frank Howard , Richard Koch, Robert Reynolds
yn s
Mayor Leonard Thiel , also present
Councilman Howard moved that Mire Lampe ' s assessment
remain
Councilman Reynolds seconded the motion which carriedwith as on the books .
motion by Councilman Howard , seconded
of the Board by Councilman Gals seven yeas . On
Equalization was adjourned ,
on , the meeting
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Tos The 'oard of f*4,vv , ew
Robert T . Lucky
City assessor
5ub� eot � `.r . '-'arnpi. a propO►ties in the Aquila area,
In establishing the 196 3 land values in the Knollvood area and other
areasp the bsseasor found it necieeaary to alter existing land values
upwards , due to growU and inflation of the lamd . In prior years the
Khollwood Shapping, Center for exa�umple , xaa assessed at 62 #
in comparison to adjacent -w2 lana at 380 per foo � °Lars foot
double bungalow hand at 57 square � t 4rr A r . i.�arap�. s
per square foot . In 196E the .Asseseor
established in value on adJ ¢ K- 2 land at approximately ,.;s3O per t'ront
foot equivalent of 590 per square foot or the equivalent of er for a
50 foot lot . ( 50 foot lots located in rnejp., hborhovde of . ;lb, aOO to :;19 ,
oW
houses have been selling in 1967 and 196ti c j50006 )
Establishing the land value on double bungalows in the K.nollwood
area was based upon the land abstraction residual, concept , wherein re-
production coat minus depreciation subtracted from the total scale would
indicate the land valuo „ The various indications from this method were
candenmed into a unifom rate per square foot resulting at 900 per square
root .
Double bunCalovs win not yield a fair rate of return on a general
investmwt . This is due to the economics of cost of operation, taxes ,
cost of ,construction , etc . , of two units versus 10 or more =its . According
to recut sales of double b
ungaloic's ,, it is found than they Are selling for
28 , OpU to ,36� OW depending upon the neighborhood area. The m4ority of
bt7e.S moving into one unit and renting the other unit out , in essence
rubsi,dising their housing costs , receiving the ho tend lower rate of I
tscatiorl , tax credits of 3,*5O and of course , depreciation on their Federal
so, '` l otte income takes . lnasmuoh , ae ultimate criteria of Market Value is
What People acs usually paving for property* the .488e990ra have na alterative
gxd se the highest and best use , which in this class of
but to race pr'operV
is owner occupied util.iV .
Today l a etoncmdes dictate a distinct difference between double
bvagalowe and Apartment units . Apartment wits are pr1j-wAri4 ;purchased
the ability to earn at return on ones invest"" t, cash flow, and
Vftaation . Yaps the capitalization approach to value an income
Produces a value closely reel,.atod to a six percent net return . .Fere afTain ,
depreciation for i.jrtecane tax purposes is affecting the selling price, but
not as noticeable as m double bungalows .
TA swum iarisi.ng an analysis of tOdaRy ' s bp®ratians Qf apartzrent budldin
lad on Rgw4 Boning and tkwo3 zoning , petting double bungalows ,
04 double bunBales prices
galows end ncvaas rets oP the apa�°ent land # reveal no
81Mfieant difference in value , althrao►gh m� mane � eorOf uses f mitsa ttilloincdic to
41 be dif'f`erent . Until such tijo that land value 8cvn
t eiwacaet difftrenae between Re* 3 and R'4 zoning in this area, appraise"
Vill undoubtedlyeoono'ni cs` *
rel3r on e�ci s ting
Land is the primary bake of ad vl.orem revenue , . suse of the
exased by set back buildint rules and loea# c �f • trusturee a lam!
pxOtAts the nand Value„ as � 4Ud dO" not depreeigte ,r Therefore,as dew►
vW
janusnces that measureab4 affect .i e'ed Property would be an innuence
on the f0provemmto
in a situation similar to 11' . LaMi ' s canner lat wherein there is 35
toot set back on 35th St . as well as on Aquila Avec , to cOD#'orra to the
Wdsting not back of other houses an 35th 6t. and Aquila Oves the most
O„ gnifioant indication of measurement in deter riving whether this depreciates
the structure , would be the rent . In the event that the rent was lower
as the bungalow having UAs double 35 foot not back tk= the rents on the
sdjojaing bwWalows that do not have this double set back , would be an
indication that this property depreciates frog the double set back and
a18o could bo awourod in value . The other units Frere renting for . 140
per month in 1963 and 1964 .