Ely City Council Board of Appeal & Equalization Meeting

Ely City Council Board of Appeal & Equalization Meeting
April 28, 2022

The Ely City Council Board of Appeal & Equalization meeting was called to order by Mayor Skraba at 5:00 p.m. on April 28, 2022 the meeting was held in the Council Chambers at Ely City Hall.

PRESENT: Council Members A.Forsman (7-1-2024), Kess (7/1/2025), Debeltz, Omerza, Callen, Campbell(7/1/2025) and Mayor Skraba
ABSENT: None
Also present: Paul Cherry, Andrew Olson, and Ben Thomas of the St. Louis County Assessor’s office.

The meeting was scheduled as required by Minnesota State Law to review the proposed assessed values of properties within the City of Ely boundaries as established by the St. Louis County Assessor’s Office.

During the 2021 sales study period (October 1, 2020 to September 30, 2021) there were 81 “arm’s length” transactions within the City of Ely. The Minnesota Department of Revenue requires a median sales ratio of no less than 90% and no more than 105%. The sales ratio prior to and changes was 76.3%. Analysis of the sales ratios resulted in the following changes for the 2022 assessment, taxes payable 2023. Following these changes the sale ratio is now at 93%.

030BH (Beacon Hill) increase of …………...…..10%Land …….20%Buildings
030 (Ely) increase of…………………………..…10%Land…..…20%Buildings
030C (Ely Chandler) increase of ……………….10%Land……..25%Builidngs
030S (Ely Spaulding) increase of ………………10%Land……..20%Builidngs
030NP (Ely Pioneer North) increase of …….….10%Land……..20%Builidngs
030SV (Ely Savoy) increase of ……………....…10%Land……..20%Builidngs
030S (Shagawa Lake) increase of ……………..25%Land……..20%Builidngs
030M (Miners Lake) increase of ……………….10%Land……...20%Builidngs

All other changes that were made throughout the City are for permitted new construction/demolition, owner requests for review, and continuing construction projects.

The total Estimated Market Values for taxable and tax-exempt properties in The City of Ely for the 2022 assessment year are as follows;
Grand Total Land EMV: $ 35,953,900
Grand Total Building EMV: $ 190,196,900
Grand Total EMV of Land and Buildings $ 226,150,800

Evan Faltesek at 206 E White St PID 030-0050-01210 – Faltesek indicated that over the last 5 years he has seen a 45% increase in the value of his property with no improvements.
Assessor Paul Cherry indicated that the increase in value is strictly due to the market value. This year due to the market value you could sell your property for that price. The Department of Revenue requires a median sales ratio of no less than 90% and no more than 105%, the sales ratio was 76.3% before any changes were made. If a property were to sell in your area for $100,000 essentially our assessed value on that property would have been $76,300, which would have been the gap between what our assessed value was and what the property value was. The Department of Revenue says that if a property sells for $100,000 our assessed value should fall between $90,000 and $105,000, which is the level of accuracy they would like us to have.
A.Forsman asked if the county has done an appraisal of your property, or would you be willing to have the assessors walk through your home to see if it is assessed at today’s market. Forsman indicated that for us to make and adjustment to your evaluation we would have to have a recommendation from them that your property is actually overvalued, so if you are willing to have them come look at your property that might happen.
Cherry indicated that since we have you on the local board minutes you will have until June 22, 2022 to appeal to the County Board of Appeal and Equalization. Cherry told Faltesek to contact him if he would like an inspection done.

David Oliver at 246 E James PID 030-0070-00300 - Oliver indicated that his valuation went up 23% this year and it has gone up $70,000 in 5 years. Oliver indicated that what is going on is highly not justifiable, it maybe incompliance with the statute, but anything that allows acceleration rate of 23% in a year there is something flawed about that statute. Oliver indicated that he lives in a 94 year old house that is now valued at $240,900. There needs to be a buffer so it doesn’t keep going up by this much each year.
Kess stated that we take the process of setting taxes extremely serious, we work hard to keep our taxes low, we are doing our job.

Kess/Debeltz moved to approve John and Cheri Beatty PID 030-0500-00185 at 1623 Miners Dr request that the land value be decreased due to the steep shoreline. Assessor Paul Cherry suggested decreasing the land value from $128,300 to $95,200. Motion Carried Unanimously.

A.Forsman/Kess moved to approve Thompson & Charlene Blodgett PID 030-0235-00040 at 2105 Savoy Rd request that the building evaluation be decreased since the garage apartment was not fully finished. Assessor Paul Cherry suggested decreasing the building value from $75,900 to $64,000. Motion Carried Unanimously.

Debeltz/Campbell moved to approve Steven Gadow PID 030-0200-01100 at 1161 E Washington St request that the building evaluation be decreased since the house is in extreme disrepair. Assessor Paul Cherry suggested decreasing the building value from $76,300 to $58,300. Motion Carried Unanimously.

Kess/A.Forsman moved to approve Kimberly and Ricky Hagedorn PID 030-0352-01340 at 1234 E Chapman St request that the building evaluation be decreased since the interior of the property is in significant disrepair. Assessor Paul Cherry suggested decreasing the building value from $62,700 to $40,400. Motion Carried Unanimously.

A.Forsman/Kess moved to make no change to the in person appellant Evan Faltesek PID 030-0050-01210 at 206 E White St. Motion Carried Unanimously.

A.Forsman/Kess moved to make no change to the in person appellant David Oliver and Keiko Williams, PID 030-0070-00300 at 246 E James St. Motion Carried Unanimously.

Langowski indicated that we had 2 emails that were received, one from Keith and Marlene Appleberry and one from Barbara Berglund.

Assessor Cherry stated that he did talk to Marlene Appleberry and explained what was going on with the property and she was fine with it.
A.Forsman/Kess moved to make no change to Keith and Marlene Appleberry’s property at PID 030-0290-01850 at 1345 N 18th Ave E. Motion Carried Unanimously.

Assessor Cherry indicated that Berglund was questioning the 20% increase in the value of the property. Cherry did not have much time to discuss it with her as she was busy, but this gives them the opportunity to make and appeal at the county level.
Kess/Debeltz moved to make no change to Barbara Berglund’s property at PID 030-0160-00010 at 1933 W Shagawa Rd. Motion Carried Unanimously.

ADJOURN
Mayor Skraba adjourned the meeting without objection at 6:00pm.

Casey Velcheff
Deputy Clerk