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City of Centerville <br />Council Meeting Minutes <br />April 14, 2021 <br /> <br />unit, which means there are a total of 6 units in this complex. He was contacted by the owner of <br />K.C. Holdings, LLC, Mr. Justin Knabe, as well as a third owner regarding the units. He explained <br />that three of these properties sold about a year ago, yet every sale is a bit unique. One of the <br />properties that was sold to K.C. Holdings, LLC sold in February of 2020 for $192,500; the parcel <br />purchased by Mr. Knabe sold November of 2019 for $270,000; and the third parcel with the <br />Farmers Insurance Agency sold for around $190,000 as well, but included purchasing the business. <br />The parcel for K.C. Holding was on the market for about a year and started at $280,000, went as <br />low as $170,000 where there was a bidding war and the ultimate purchase price was $192,500. <br />He explained that the owner was terminally ill and desired to liquidate his assets prior to his death. <br />The $270,000 sale had a partial sale/lease back which means the prior owner sold it with the <br />condition that they would continue to lease half of the unit for 5 more years, so that situation would <br />not be a perfect “arm’s length” transaction. The third example was someone who bought the <br />building, but also bought the business. He explained that all three of these transactions were not <br />perfectly clean. He explained how he had looked for comparable properties throughout the County <br />and how that changed his recommendation for a valuation adjustment for all 6 of the units to <br />$231,200, even if they did not contact him. He noted that another option would be to make slight <br />adjustments based on the age of the units. <br /> <br />Council Member King asked if comparable properties had to be within a certain distance from the <br />property. <br /> <br />Mr. Skogquist explained that the best thing is to look for something similar in style, age, and <br />location, but noted that it gets more difficult with commercial property because there are more <br />variations. He stated that he thinks the true value is above $192,000, but below $270,000. <br /> <br />Council Member Koski stated that he does not think the proposed $231,200 is out of line. <br /> <br />Mr. Guggenberg stated that he agrees with Mr. Skogquist’s analysis and feels his approach was <br />logical. He gave some examples of an uptick in values in Blaine that were due to an exodus from <br />downtown Minneapolis businesses due to recent unrest. <br /> <br />Council Member Mosher asked what the 2020 value of the parcels were. <br /> <br />Mr. Skogquist stated that they were all around $251,000 to $255,000 range last year. <br /> <br />Mayor Love stated that it appears as though some adjustments will need to be made and asked <br />how they should proceed. <br /> <br />Mr. Guggenberg stated that the Council could make a motion to adjust the values as suggested by <br />Mr. Skogquist and explained that the property owners whose PIN #’s were read into minutes by <br />Ms. Wells still have the ability to appeal to the County Board. <br /> <br />Mayor Love asked the Council for their opinion on the recommended valuation adjustments. <br /> <br />The Council discussed details surrounding the sale of the properties that were sold for $270,000 <br />and $192,500 and came to a consensus that they supported lumping the 6 parcels together for a <br />consistent valuation. <br />Page 4 of 11 <br /> <br /> <br />