HomeMy WebLinkAbout2011/04/04 - ADMIN - Minutes - City Council - Study Session 111 St. Louis Park OFFICIAL MINUTES
MINNESOTA CITY COUNCIL SPECIAL STUDY SESSION
ST. LOUIS PARK,MINNESOTA
APRIL 4, 2011
The meeting convened at 6:45 p.m.
Councilmembers present: Mayor Jeff Jacobs, Phil Finkelstein, Anne Mavity, Julia Ross, Susan
Sanger, and Sue Santa.
Councilmembers absent: Paul Omodt.
Staff present: City Manager (Mr. Harmening), City Assessor (Mr. Bultema), Commercial
Appraiser (Ms. Nathanson), Communications Coordinator (Mr. Zwilling), and Recording
Secretary(Ms. Hughes).
1. 2011 Valuation Report
Mr. Bultema presented the staff report and provided an overview of the City's assessment
process and 2010 market performance. He indicated that the 2011 Notices of Valuation and
Classification were mailed to each property owner on March 23'1 which reflects property values
as of January 2, 2011 for taxes payable in 2012. He stated that the City's total valuation stands
at $5,248,322, which reflects a 1.0% net decline in total value compared to 2010. He noted that
very few calls have been received this year regarding the 2011 Notices of Valuation. He
reviewed 2011 market value changes compared to 2010, noting that single family residential
values are down 2.0%, condominium values are down 4.0%, townhome values are down 2.4%,
apartment values are up 3.1%, and commercial-industrial values are up 1.1%. He indicated that
some of the City's residential stock is moving up softly and the City is very cautious in bringing
values back because the market is still unsettled. He also presented historical median sale prices
of the City's immediate peer communities for the past five years, as well as median sale prices
for the traditional market versus the foreclosure and short sale markets. He added that St. Louis
Park is fortunate to have a strong residential market with only 20% of its transactions in the
distressed market versus 40% metro-wide. He discussed valuations in the commercial/industrial
market, stating that hotel and motel properties are up 7.9%, offices in general are up 1.5%, retail
is down 2.5%, industrial is down 0.6%, and restaurant and grocery is down 0.6%, for an overall
increase for commercial/industrial of 1.1%. He then discussed the City's tax capacity and fiscal
disparities, stating that the City moved from 21st to 11th highest net contributor for taxes payable
in 2011.
Council discussed the City's five year cycle for conducting valuation inspections.
Councilmember Sanger requested further information regarding the impact on valuations when a
neighborhood has several homes on the market that do not sell.
Mr. Bultema stated that the City tracks properties that go on the market and do not sell after a
significant period of time, noting that the City does not have a lot of inventory on the market at
any given time. He stated that there will be some neighborhood variations, but most of those
variations represent areas with foreclosure properties that will impact the traditional market.
Council also discussed the commercial/industrial market valuations and the impact of denvatives
on this sector.
Special Study Session Minutes -2- April 4, 2011
Mr. Bultema reviewed the appeal process and indicated that the Board of Appeal and
Equalization is scheduled to convene on April 25th with a likely re-convene date of May 9`h. He
stated that property owners are encouraged to contact the assessing department with questions,
but they can attend the April 25th Board of Appeal meeting even if they have not contacted the
assessing staff beforehand.
The meeting adjourned at 7:19 p.m.
Written Reports provided and documented for recording purposes only:
2. Bidding and Construction/Project Manage . i t
Li
Nancy Stroth, City Clerk Jeff J.cobs, +ayor