Minutes of the Reconvened

Meeting of the Board of Review

July 30, 2009 at 5:00PM

Town Chair Lu Peet called the meeting to order at 5:00PM. The assessor signed the Assessor’s Affidavit in the presence of the Clerk and the Clerk verified she had checked the assessment roll for obvious errors and omissions. The Pledge of Allegiance was said. Present were Board of Review members Lu Peet, Jack Meinke, Christine Webb, Mitch McGee and Elaine Brustad. Assessor Charlotte Johnson was also present.

First order of business was to nominate and elect a Chairperson and Vice-Chairperson for the Board of Review. Motion (Webb/McGee) to nominate Lu Peet for Chairperson. Motion carried with all members voting in favor.

Motion (McGee/Brustad) to nominate Mitch McGee for Vice Chairperson. Motion carried with all members voting in favor.

Brustad verified there were 4 members who had received training this year, Lu Peet, herself, Mitch McGee, and Gene Ratzel. She notified the State as required of those who had received training.

There were 5 objections brought to the Board of Review before the last 48 hours and 2 received today. She asked the Board members if they wished to waive the 48 hour requirement for those two. Motion (Webb/McGee) to waive the 48 hour notice requirement for Ronald Rep and Kent Oliver. Motion carried.

Clerk Brustad swore in the Assessor, Charlotte Johnson for all testimony.

1^st received objection was from Brenda Bauer. Bauer was not present

2^nd Objection Form received was from Timothy McLeod. McLeod was not present

3^rd Form received was from Jerry Hess/The Hess Trust. Mr. Hess was sworn in by Clerk Brustad.

Ms. Johnson had previously been sworn in. The property address is 48615 Clearwater Road in Barnes. Hess said he went to Open Book but did not get his questions answered by Ms. Johnson. He got a market analysis done by Webb Realty which showed an amount of $551,800.00. His 2009 assessment is $577,500.00. Hess said his home is in much need of repairs and contended Ms. Johnson was never close enough to the house to see that. Ms. Johnson stated she rated his property an “A” and based that on seeing the home from the outside. She did a comparison of properties sold in Barnes similar to his which showed his was valued at approximately the same as others that sold in the area recently. The market analysis was 9.5% lower that her assessment so she felt she was in the 10% leeway allowed by the state. Hess was asked what the insurance value was that was placed on the house but he was unsure of the amount.

4^th Objection form was received by Richard and Dianne Lanhart. Ms. Brustad swore in Mr. Lanhart for his testimony. Mr. Lanhart’s property address is 50550 Peninsula Road in Barnes. Ms Johnson was previously sworn in and was still under oath. Mr. Lanhart stated he bought his property 3 years ago for $400,000.00. He put a pole building in for $16,174.00 in 2006. He feels the market value today is $420,000.00. The property is currently assessed for $454,700.00. Ms. Johnson presented a recent sales comparison for the property. She said a recent sale or appraisal of one year or less is what is needed for her to do any changes. He felt there were many newer homes in the area assessed at less than his. The house is assessed at $171,700, and insured for $178,600.00. He did show the Board a copy of his sales contract for $400,000.00.

5^th Objection form received was from Craig Warrick on 48555 Clearwater Road. Mr. Warrick was sworn in. He presented the board members with a spreadsheet of neighboring lots and their current assessed values. He contends the disparity is from the land values. He had an appraisal done in October of 2008 which was for $320,000.00. The current assessed value on his property is at $407,800.00. He stated the property was listed for 6 months recently for $415,000.00 due to a court order as he is getting a divorce. He received no offers while it was listed for that amount. Ms. Johnson was previously sworn in. She stated she didn’t have time to prepare a sales comparison for his home as he didn’t give 48 hours notice. Johnson says she is assessing him at 205 front feet as per the county maps, while he states he has 158 feet of frontage. That could be the problem with the disparity in the lot assessments.

6^th Objection form was received from Ronald Rep. Brustad swore in Mr. Rep. Ms. Johnson was previously sworn in. Mr. Rep purchased this vacant land (5 acres) for $10,000.00 in October of 2008. He purchased the land along with a ten acre parcel which was purchased for $27,000.00. His brother also purchased a 10 acre parcel next to his for the same amount. The 5 acre parcel was behind the other with access from a deeded access road not constructed. He felt the assessment should be at the sales rice of $10,000.00 instead of what Ms. Johnson had him assessed for, which was $18,900.00. Brustad asked if the land could be considered a normal 5 acre parcel and could it most likely sell for the same rate as other parcels of the same size in the area. Rep felt it could most likely be.

7^th Objection form presented was from Kent Oliver for Sundance Associates. Mr. Oliver was sworn in. Brustad reminded the Board that the Assessor had previously been sworn in. Mr. Oliver said he had sold part of his property and now had 375 feet of frontage left. He decided to split the property for his family members and when he did that his assessment doubled. He was told my Charlotte Johnson at the Open Book to go back and quit claim the property back to himself to combine the lots to get the assessment back down. He has done that and presented to the Clerk a copy of the deed. Ms. Johnson said she did tell him that and since he presented documentation of him doing that the new assessment on the combined lots could be $463,900.00 instead of $726,700.00 if the Board wishes.

The 8^th Objection form presented was from Ann Novacheck. Ms. Novacheck was sworn in by the Clerk. The assessor was previously sworn in for all testimony. Ms. Novacheck testified they bought the property on Pease Resort Road in 1999 as an investment for $165,000.00. Their lot had 2 cabins, both still in their original condition. She testified a real estate professional told her a year ago the property would only sell for about $389,000.00. The assessment this year is $413,800.00. Both cabins are 3 season cabins. Charlotte Johnson stated there is 194 feet of frontage on the Upper Eau Claire Lake. The assessed value for the land is $353,400.00 with $60,400.00 for the two cabins. She did not run a sales comparison due to time the form was received. Both cabins are functional and are used, one about 680 square feet, built around 1940, the other built around 1960 and 468 square feet. Both have 2 bedrooms and 1 bath.

Chair Lu Peet asked for additional objection forms. Robert Koser had not filled out a form and asked to speak about his property. Clerk Brustad gave a form to Mr. Koser to fill out. Peet asked for a motion to waive the 48 hour requirement for the form. Motion (Webb/Meinke) to waive the 48 hour requirement for receiving the form from Mr. Koser. Motion carried.

Mr. Koser was sworn in by the Clerk. Ms. Johnson had been previously sworn in. Mr. Koser asked why his valuation went up when the economy is down and the market is down 30-40% from two years ago. He wanted to know the basis for increasing his assessment when selling prices are down. Chris Webb asked what the valuation was on his property. Ms. Johnson said it is $487,600.00, up from last year’s assessment of $472,000.00. He has 100 feet on the Upper Eau Claire Lake, 2.4 acres of land. The home is a 1 and ½ story log home, 2056 square feet on the 1^st floor and 1122 square feet on the upper level. The home has 6 bedrooms and 3 baths. The land is valued at $257,100, and buildings at $230,500.00. Mr. Koser asked why taxes can’t be decreased; in this market everyone should be tightening their belts. Jack Meinke passed out a pamphlet to everyone regarding this topic. Discussion involved the difference between assessments on property and taxes in general.

Chair Lu Peet then asked if there were any other objections to be heard. There were none. The board then made their determinations.

The Hess Trust: (Motion (Brustad/McGee) to keep the assessment at the current amount of $577,500.00. The market analysis was within 10% of the current assessment therefore the board determined the assessment should remain. Roll call vote taken with all responding yes to keep the assessment the same. Motion carried.

Richard Lanhart: Motion (Webb/McGee) to sustain the assessment value of $454,700.00.

The value Mr. Lanhart thought the property should be at was within 10% of the current assessment. There was no market analysis or appraisal presented. The 3 lots could be combined to possibly lower the future assessment. Ms. Johnson said she was already assessing as one parcel. Roll call vote taken with all responding yes to the motion to sustain the assessment. Motion carried.

Craig Warrick: The land value seems to be out of whack with his neighbors according to his calculations. The County has his property at 205 feet of frontage. His appraisal says 163 feet. Ms. Johnson said the value would be $236,600 with 163 feet; it is now assessed at $254,100 for the 205 feet of frontage. The land value would remain within 10% leeway even if it was changed. Motion (Webb/McGee) to sustain the assessed value of $407,800.00. Roll call vote taken with all responding yes to the motion. Motion carried.

Ronald Rep: Mr. Rep paid $10,000.00 for the lot in October of 2008. It is a residential lot currently assessed at $18,900.00. Ms. Johnson was asked if this was in line with other 5 acre parcels in the town. She replied it was. Motion (McGee/Meinke) to keep the assessment at $18,900.00 as it is in line with similar sized parcels. Roll call vote taken, all responded in agreement. Motion carried.

Sundance Associates/Kent Oliver: Motion (Brustad/Meinke) to assess the property as one lot for $463,900.00. Mr. Oliver showed proof of the recorded document to combine the lots once again. Roll call vote taken, all responded in agreement with the motion. Motion carried.

Durocher/Novacheck: Motion (Webb/McGee) to sustain the assessor’s valuation of $413,800.00. There are two cabins, both appear to be livable. Roll call vote taken with all responding yes to sustain the valuation. Motion carried.

Robert Koser: Motion (Webb/McGee) to sustain the assessor’s valuation of $487,600.00 because of lack of evidence presented. There were no figures written on the objection form, he states he wants no increase due to economic conditions. Roll call vote taken, all responded yes. Motion carried.

Chairperson Peet asked the clerk to send out the notices as per statutes.

Motion (Webb/McGee) to adjourn the Board of Review for July 30, 2009. Motion carried. The Board of Review was adjourned until August 4^th at 5:00PM when the Clerk will give notification to the other Board members that the notices were sent out. The meeting adjourned at 7:18PM.

Respectfully submitted,

Elaine J. Brustad,

Clerk for the Board of Review

Dated this 4^th day of August, 2009