Page 4 of 5 Regular Meeting Minutes 04/09/2012

Montgomery City Council

Special City Council Meeting

April 9, 2012

7:00 p.m.

CALL TO ORDER

Mayor Jean Keogh called the City Council meeting to order at 7:00 p.m. in the Montgomery City Council Chambers.

ROLL CALL

Council members present: Jean Keogh, Dave King, Bill Wencl, Bonnie Sery-Malecha. Absent was Tim Siebsen. Also in attendance were Dave Armstrong and Tom Widmer of the Le Sueur County Assessor's Office, Wade Young of the Montgomery Messenger, and Steve Helget, City Administrator.

PLEDGE OF ALLEGIENCE RECITED

ADOPT AGENDA

Motion made by King to adopt the agenda. Seconded by Sery-Malecha and carried unanimously.

CONSENT AGENDA

Motion was made by King to approve the Consent Agenda which consisted of the minutes from the March 19, 2012 Council meeting and the April bills. Seconded by Wencl and unanimously carried.

PUBLIC HEARINGS AND PRESENTATIONS

A. Board of Equalization and Appeals

Dave Armstrong, County Assessor stated for Montgomery residential sales in 2011, the actual sale prices were 15.3% lower than the market value that they had set for those properties. County wide sales were 5.5% lower than market values. The projection for residential market values is to continue to drop. Tillable land went up over 17%. In 2011, the state's new Market Value Exclusion program commenced and it shifted property tax burden from low valued homesteaded property to commercial and non-homesteaded property.

Mr. Armstrong also stated that any property owner not satisfied with the Council's decision may appeal to the Le Sueur County Board or file their appeal in Tax Court.

Gary Meyer of Norlo, Inc. representing Prior Lake State Bank, submitted a letter appealing the 2012 assessed values for their vacant lots in Preserve 4th Addition. They own 22 lots. Mr. Widmer reviewed the 2011 values versus the 2012. In 2012, the values on average have been lowered $10,000 or more for all the lots. Discussion was held on values of lots located in the Preserve versus North Ridge Estates. Mr. Widmer stated the Preserve lots are valued a little higher as they are bigger and the built homes in the addition are higher valued than in North Ridge. Some distressed sales have occurred in North Ridge ranging from $6,000 to $9,900.

Mr. Widmer reported he was contacted by a representative of The Most Holy Redeemer Church about their property located immediately east of the Holy Redeemer School, 203 Vine Avenue, R22.470.1420. Mr. Widmer stated he has viewed the house and recommends lowering the value from $79,700 to $77,900.

Mr. Armstrong reported the State Bank of New Prague contacted him to appeal the market value on the old Red Lion Liquor Store, R22.010.8900, 637 Fourth Street S.W. Mr. Armstrong stated the 2012 value is $164,800 and he needs to inspect the building prior making any recommendation. He proposed to refer the decision to the Le Sueur County Board.

Mr. Armstrong reported Roger Heyda owner of the property located on First Street S., with parcel ID. R22.470.0870, contacted him and requested the tax classification be changed from commercial to residential. Mr. Heyda is using the sole building, a garage, for residential use versus commercial. Mr. Armstrong recommended reclassifying the property to residential for tax purposes.

Mr. Armstrong reported Roger Heyda owner of the property on 213 First Street S., R22.470.0920 is considering renting the property to the Salvation Army at no cost. The 2012 market value is $104,800 and Mr. Heyda is requesting it to be lowered since it will not be utilized for commercial purposes. Mr. Armstrong stated if he enters a lease and it ties up the property from being sold it could affect the value. At this time, no agreement has been reached between Mr. Heyda and the Salvation Army.

Daniel Sullivan owner of the vacant lot at 211 Fir Avenue W., R22.643.0150 requested the market value on his property be lowered to $10,000 or to at least lower than what he purchased it for which was $15,000 in 2003. The 2012 market value is proposed at $19,300 which is down from $24,300 in 2011. This is a 50' x 150' or 7,500 square foot lot.

The Council discussed each request.

In reference to Prior Lake State Bank's appeal, Sery-Malecha stated the Preserve Addition lots are twice as big as the North Ridge Estates lots and should be valued slightly higher.

Motion was made by Sery-Malecha to not change the market values on the 22 lots located in Preserve 4th Addition owned by Prior Lake State Bank. Seconded by Wencl and carried unanimously.

In reference to the Holy Redeemer Church owned house located next to Holy Redeemer School, Mr. Widmer stated he viewed the house on April 5, 2012 and based on that viewing recommends lowering the value to $77,900.

Motion was made by King to lower the market value on parcel R22.470.1420, located at 203 Vine Avenue, to $77,900. Seconded by Wencl and motion carried with Sery- Malecha abstaining.

Motion was made by King to defer to Mr. Armstrong to make a recommendation to the Le Sueur County Board for the old Red Lion Liquor Store, R22.010.8900, 637 Fourth Street S.W. Seconded by Sery-Malecha and unanimously carried.

Motion was made by King to accept the County Assessor's recommendation on parcel R22.470.0870 owned by Roger Heyda to change the tax classification from commercial to residential. Seconded by Wencl and unanimously carried.

Motion was made by Sery-Malecha to not change the market value on parcel R22.470.0920 located at 213 First Street S., owned by Roger Heyda. Seconded by Wencl and unanimously carried.

Motion was made by Sery-Malecha to change the market value on parcel R22.643.0150 located at 211 Fir Avenue W., owned by Daniel Sullivan to $15,000. Seconded by Wencl and unanimously carried.

REPORTS AND ACTION REQUESTS FROM DEPARTMENTS

ADMINISTRATION

1. Resolution 12-2012, Reestablish Precinct and Polling Place

As a result of the 2010 census, the state legislature has been redistricted and the City is required by law to adopt a resolution reestablishing its precinct and polling place.

Motion was made by Sery-Malecha to approve Resolution 12-2012. Seconded by Wencl and unanimously carried.

2. Miss Czech Slovak Proclamation

The Council reviewed a proclamation recognizing the Miss Czech Slovak Minnesota Day on April 14, 2012.

Motion was made by King to approve the Miss Czech Slovak Minnesota Proclamation. Seconded by Sery-Malecha and unanimously carried.

POICE DEPARTMENT – Nothing

AMBULANCE SERVICE – Nothing

COMMUNITY DEVELOPMENT

1. Neighborhood Stabilization Program Grant

Helget reported the City has received an offer of $82,900 (current asking price) for its property located at 406 Oak Avenue. The buyer has signed a Purchase Agreement contingent upon the Council approving the sale. In accordance with the grant guidelines, this particular property is to be sold to a property owner that meets the 50% of median income level. This buyer does not, but the state will allow this sale if the City gives up the remaining monies for its third and final project. The state is citing the City's difficulty in selling this property to a buyer that meets the 50% of median income and its inability to dedicate a single staff person to work on this grant program as reasons for making this proposal. The state representative that contacted the City stated the City can challenge this proposal but the state will be insistent. The EDA Board reviewed this proposal and is recommending approving it as long as the sole reason is the inability to find a buyer that meets the 50% of the median income guideline.

Motion was made by King to approve the purchase agreement for the sale of the 406 Oak Avenue property. Seconded by Wencl and unanimously carried.

2. Commercial Buildings On-Line Auction

In a previous meeting the City Council has approved advertising for bids for the three City owned commercial buildings. The Montgomery Economic Development Authority Board is recommending to hire a consultant to do an on-line auction and to authorize up to $2,500 for marketing expenses. An on-line auction will open the property advertisement for sale to a larger buyers market.

The EDA Board is recommending to set the Reserve on the old bank and clinic buildings at 10% of the market value and having no Reserve on the 100 First Street building. According to the County Assessor the properties have the following market values:

103 Elm Avenue S.W. (old Frandsen Bank) $92,900

202 First Street S. (old Medical Clinic) $88,500

100 First Street N. $18.900

Motion was made by King to approve hiring a consultant to conduct an on-line auction for the City owned commercial buildings. Seconded by Sery-Malecha and unanimously carried.

FINANCIAL – Nothing

FIRE DEPARTMENT – Nothing

LIBRARY – Nothing

PARKS & RECREATION – Nothing

PLANNING AND ZONING

PUBLIC WORKS-UTILITIES DEPARTMENTS – Nothing

OLD BUSINESS - None.

NEW BUSINESS - None.

MISCELLANEOUS ITEMS AND INFORMATION - None.

MAYOR’S REPORT

Mayor Keogh reported that the next City Council regular meeting will be on April 16, 2012 and a special meeting will be held on April 25, 2012. The next Chat with the Mayor will be held at Hermann Drug on April 21, 2012. The Minnesota Miss Czech Slovak pageant will be held this Saturday, April 14 at the American Legion.

ADJOURN

There being no further business, motion was made by Sery-Malecha to adjourn the meeting. Seconded by Wencl and carried unanimously. The meeting was declared adjourned at 8:38 p.m.

Respectfully submitted,

Steve Helget

City Administrator