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From YouTube: April 28, 2021 Board of Estimate and Taxation
Description
A
The
april
28
2021
minneapolis
sport
investment
taxation
may
now
begin
good
afternoon.
Welcome
to
a
regular
meeting
of
the
board
of
estimated
taxation.
I
am
david
wheeler,
I'm
president
of
the
be
ent
as
we
begin.
I
will
note
for
the
record
that
this
meeting
has
remote
participation
by
members
as
authorized
under
minnesota
statutes,
section
13.021
due
to
the
declared
local
health
pandemic.
A
The
city
will
be
recording
and
posting
this
meeting
to
the
city's
website
and
the
youtube
channel
as
a
means
of
increasing
public
access
and
transparency.
This
meeting
is
public
and
subject
to
the
open
meeting
law.
At
this
time,
I
will
ask
the
clerk
to
call
the
role,
so
we
may
verify
the
presence
of
a
quorum.
A
A
Limes.Minneapolismin.Gov
board
members.
The
agenda
for
today's
meeting
is
before
us.
May
I
have
a
motion
to
adopt
the
agenda
so
moved.
Second,
third,
second
moved
in
seconded,
we
have
a
proper
motion
before
us.
Is
there
any
discussion
before
the
clerk
calls
the
role
sitting
down
I'll?
Ask
the
clerk
to
call
the
roll
on
the
motion
board
member
frye,
hi.
C
A
D
C
A
E
E
E
This
is
an
annual
process,
as
dictated
in
state
statute,
the
valuation
or
the
notices
of
valuation
classification
commonly
known
as
the
value
notices
were
mailed
in
the
middle
of
march.
It
is
important
to
remind
everyone
that
the
2021,
estimated
market
values
are
used
to
calculate
the
2022
taxes.
I'll
talk
more
about
that.
In
a
moment
we
value
in
one
year
the
budget
and
levy
are
set,
and
then
the
taxes
are
payable
in
the
following
year.
We
know
this
can
be
confusing,
because
property
tax
statements
are
mailed
at
approximately
the
same
time
as
value
notices.
E
The
payable
2021
property
tax
statements
that
owners
received
were
used,
calcula
used
based
on
the
2020
assessed
market
value.
Another
important
reminder
is
that
the
data
we
use
to
set
the
annual
assessment
is
also
dictated
by
the
state
statute
for
the
january
2nd
2021
assessment
assessment.
We
analyze
sales
that
occurred
between
october
of
2019
and
september
of
2020.,
so
assessors
somewhat
act
as
historians,
where
we
look
back
at
what
has
happened
and
then
we
set
the.
E
This
is
a
timeline
of
the
2021
assessment
and
how
it
affects
how
it
really
translates
into
taxation.
So
if
we
first
by
start
by
looking
at
the
assessment
date
about
one
third
of
the
way
through
the
screen
of
january,
2nd
2021,
it's
the
blue
arrow
to
determine
the
2021
assessment.
We
again
is
dictated
by
statute
use
sales
that
transacted
between
october
1st
2019
and
september
30th
2020..
E
E
E
E
E
The
this
exercise
is
all
to
point
out,
but
by
the
time
a
property
owner
pays
their
second
half
taxes.
It
is
based
on
data
that
we
use
to
value
properties,
that
is
approximately
three
years
old
and
the
sus.
The
system
is
really
purposely
set
up
that
way
so
that
the
values
can
be
set.
People
can
appeal
the
taxing
authorities
can
work
on
their
budgets,
set
a
proposed
levy
and
then
move
through
the
actual
tax
statements
and
tax
collection
next
slide.
Please.
E
E
next
slide.
Please.
This
slide
is
a
visualization
of
the
breakdown
of
the
three
major
property
type
categories
by
total
value
and
then
translating
into
tax
capacity.
So
a
very
simplistic
explanation
of
how
values
translate
to
taxes
is
that
the
assessor's
office
determines
the
estimated
market
value.
E
E
All
of
the
taxing
authority.
Tax
rates
are
then
applied
to
the
tax
capacity
and
referendum
market
value
to
collect
the
tax,
because
the
classification
rate
for
commercial
properties
is
higher
than
the
classification
rate
for
residential
and
apartment.
There
is
a
shift
when
we
move
from
the
estimated
market
value
on
the
right
to
tax
capacity
or
market
value
on
the
left
to
tax
capacity
on
the
right
you
can
see
here.
Residential
values
on
the
left
comprise
nearly
60
percent
of
the
total
city
emv.
E
However,
when
tax
rates
are
applied,
the
residential
portion
of
tax
capacity
decreases
to
just
under
50
percent,
and
there
is
a
shift
in
commercial
from
20
percent
of
the
value
to
31
percent
of
the
tax
capacity.
An
explanation
of
this
can
be
found
on
our
on
our
video
on
the
city's
youtube
page
next
slide.
E
This
is
the
lowest
percent
change
we've
seen
since
2013..
You
can
see
that
the
residential
and
apartment
values
increased
as
a
proportion
of
the
total
value
and
the
commercial
industrial
decreased
as
a
percentage
it
isn't
indicated
here.
However,
I
did
want
to
mention
that
there
was
more
than
1.2
billion
dollars
in
new
construction
added
in
2021,
which
makes
up
the
majority
of
the
value
increase
in
the
city.
If
it
wasn't
for
this
new
construction,
especially
approximately
850
million
in
apartment,
new
construction,
then
the
overall
market
value
would
have
been
close
to
flat.
E
The
decreases
in
commercial
industrial
apartment
values
almost
cancelled
out
the
increase
in
residential
values
without
the
new
construction
next
slide.
Please
this
slide
is
a
distribution
of
the
estimated
market
value
by
community.
It's
broken
down
again
into
the
three
major
property
type
categories,
and
then
there
is
also
a
percentage
at
the
top
of
each
bar.
That
represents
the
change
from
last
year.
So
you'll
see
that
all,
but
the
central
community
saw
increases
in
market
value.
However,
the
central
community
saw
a
decrease
of
0.2
or
of
two
percent.
E
The
next
slide,
please,
this
slide
illustrates
the
comparison
of
the
median
sale
price
to
the
median
market
value
for
residential
properties.
These
lines
should
be
close
together
and
definitely
going
in
the
same
direction
so
that
you
can
see
here
that
this
measurement
has
been
improving
for
our
assessment.
E
Next
slide,
please
again:
this
is
an
illustration
of
the
residential
properties
and
the
breakdown
of
percent
change,
so
in
dark,
blue
you'll
see
that
about
10,
11
percent
of
properties
saw
no
or
saw
a
decrease
in
their
value.
13
saw
no
change
about.
One
quarter
saw
an
increase
of
zero
to
five
another
quarter,
sun
increase
of
five
to
ten
percent.
E
E
E
E
you'll
see
here
indicated
in
orange
at
the
bottom.
Our
hotel
properties
saw
a
significant
increase
from
nine
percent
to
seven
percent.
I
believe
the
overall.
If
we
just
look
at
the
hotel
values
from
20
to
21,
the
values
decreased
over
20
percent
for
our
hotel
market,
we're
seeing
very,
very
strong
negative
indicators
for
our
hotel
market.
As
far
as
occupancy
and
daily
rate.
A
D
How
did
hotels
get?
I
assume
this
is
because
of
the
pandemic,
so
they
did.
They
apply
for
reductions
last
year
and
get
those
last
year
in
the
first
part
of
the
year,
because
I'm
presuming
that
we're
going
to
see
a
lot
of
reductions
this
year
like,
like,
I
assume
like
city
center,
I
mean
the
value
of
a
property.
D
E
Yes,
president,
wheeler
and
vice
president
becker,
so
we
do
look
back
at
what
happened
in
2020
and
we
definitely
saw
indicators
in
the
hotel
market
and
other
commercial
markets
that
showed
that
values
should
be
dropping
because
people
weren't
staying
in
hotels,
the
daily
rates
were
dropping
and
we're
seeing
that
in
the
office
sector
as
well,
the
only
market
that
we
saw
appreciation
and
was
our
industrial
market,
and
that's
because
our
industrial
properties
are
so
well
situated
and
really
being
utilized
for
all
of
the
online
shopping.
And
things
like
that
that
are
happening.
E
D
D
E
We
could
vice
our
president,
wheeler
and
vice
president
becker.
We
do
continually
monitor
every
sales
transaction
that
comes
in.
We
do
a
deep
dive
verification
talking
to
the
buyer,
the
seller,
the
broker
collecting
as
much
information
as
we
can
about
each
transaction.
We
really
talk
to
all
the
market
players
at
least
once
a
year.
We
survey
them
to
hear
what
they're
saying,
and
so
we
will
continue
to
monitor
what
is
happening
in
the
office
market
and
the
medical
market,
medical
market.
E
Has
we
haven't
seen
such
a
shift
there,
but
the
office
market,
because
there's
not
people
going
downtown
they're,
not
utilizing
the
space
there's
drops
in
rents
and
people
moving
out
and
finding
potentially
office
space
in
the
suburbs.
So
we
will
continue
to
watch
that
we
are
right
now,
obviously
we're
only
eight
months
away
from
the
next
assessment,
so
we
will
be
monitoring
that
as
we
prepare
for
the
2022
assessment.
E
A
A
E
E
E
Last
year
we
were
down
to
1087
and,
like
I
said
this
year,
we
have
545
local
appeals.
The
local
board
did
adjourn
just
last
friday,
and
so
now
we've
moved
on
to
the
county
board
of
appeal
process,
and
while
it
is
a
county
process,
our
appraisers
here
in
minneapolis
do
handle
all
of
those
cases
working
weight
their
way
through
and
presenting
to
the
county
board.
A
A
A
You
bet
now
we
have
a
piece
of
new
business
and
that
is
approving
the
recruitment
and
hiring
of
a
part-time
board
of
estimated
taxation
staff
person
to
replace
our
senior
advisor
finance
and
administration
position
that
that
alan
joined
us
about
18
months
ago
and
now
he's
walking
down
the
hall
as
he
put
it,
and
I
believe
that
we
have
mr
gate
smith,
who
helped
in
the
the
original
process
and
he's
he's
here
to
answer,
questions
and
jeff.
Why
don't
you?
G
D
G
Met
with
members
of
the
of
the
board
conducted
interviews
made
a
selection
based
on
those
interviews,
did
background
checks
and
then
developed
with
our
with
our
attorney's
office.
A
an
executive,
employment
agreement
and
the
process
was
a
little
bit
more
extensive
last
year
because
there's
a
lot
of
work
that
had
needed
to
be
done.
D
H
Thank
you.
So
I
was
the
one
who
raised
some
questions
about
this
and
delayed
us
to
today
last
time.
So
I
just
wanted
to
comment.
I
did
go
back
and
thanks
for
giving
me
the
time
to
get
caught
up
on
the
thinking
on
this
a
little
bit.
I
I
will
say
that
in
general,
I'm
not
sure
that
we've
come
to
the
right
conclusion
here.
H
Hiring
freezes
and
everything
else
that
that
we've
gone
through
and
so
adding
another
piece
of
work
to
their
agenda
in
this
round.
You
know
right
now
doesn't
feel
like
it
makes
sense.
And
frankly
I
don't.
I
don't
think
that
either
I
or
staff
have
the
bandwidth
to
move
an
alternative,
but
I
do
think
we
might
be
being
a
little
bit
overly
precious
about
the
independence
of
this
body
and
whether
staff
from
the
city
could
support
this
body
moving
forward
and
we
might
be
able
to
find
some
efficiencies.
H
You
know
in
in
the
future
that
could
that
could
help
us
operate
in
a
more
integrated
way
and
maybe
save
the
city
a
little
money
in
the
process.
So
I
I
want
to
sort
of
name
that
for
for
conversation
for
future
boards
of
estimate
and
taxation,
and
I'm
gonna
support
this
today,
because
I
recognize
that
we
need
the
support
you
know
for
the
remainder
of
this
year
and
that
mr
hoppe
is
making
his
move
now.
So
we
need
to
respond
to
to
that
now.
C
Yeah
yeah,
so
I
guess
me
being
the
representative
of
the
park
board.
I
I
think
the
independence
of
the
bet
serves
us
well,
because
we
we
would
love
like
to
have
an
objective
opinion
about
everything.
So
I
think
it's
in
our
best
interest
for
the
park
board
to
have
an
independent
advisor.
So
that's
just
my
little
two
cents.
D
We
are
an
independent
board,
just
like
the
park
board
and
the
idea
that
we
could
somehow
borrow
staff
just
doesn't
make
sense
that
the
interests
of
the
board
of
estimate
are
not
necessarily
interest
of
the
city,
nor
the
interest
of
the
park
board
and
having
staff
report
to
the
city
or
the
park
board
means
that
the
board
of
estimate
will
struggle
to
function.
I
mean
every
board
needs
its
own
staff.
D
We
did
go
to
part
time
that
seemed
to
have
worked.
We
had
really
good
staff
to
help
us
do
that,
but
I
mean
the
board
of
estimate
does
have
its
own
swim
lane.
Despite
the
I
mean,
it's
a
small
swim
lane,
but
it
is
a
swim
lane
and
I
I
do
think
that
we
need
staff
we're
we're
already
not
particularly
well
paid,
and
the
idea
that
we
would
be
having
to
do
many
of
these
administrative
things
by
ourselves
or
with
borrowed
staff
who
reported
to
somebody
else.
D
A
A
A
C
A
A
Very
good,
no
is
it.
There
is,
I
believe,
there's
no
other
business
before
us
and
if
you
are
willing
to
be
part
of
the
interview
team
for
the
new
staff
person,
please
be
in
touch
with
me.
After
after
the
meeting
or
by
email
or
by
phone
call,
that
would
be
fine.
It
will
entertain
a
motion
to
adjourn
the
meeting.