[PAGE 1]
2022 MINUTES
LOCAL BOARD OF APPEAL & EQUALIZATION
CITY OF OWATONNA
Council Vice President Raney called the meeting of the Local Board of Appeal and Equalization
(LBAE) to order at 6:00 p.m. on Tuesday, April 19, 2022 in Council Chambers at City Hall.
Present were Council Members Boeke, Dotson, Burbank, Svenby, Voss and Raney; Mayor Kuntz;
William Effertz, Steele County Assessor; Brock Nelson, Steele County Assistant Assessor; City
Administrator Busse and Administrative Specialist Clawson.
Council Member Svenby made a motion to approve the agenda, Council Member Voss seconded
the motion, all members voted aye in approval. City Administrator Busse explained State Statute
requires at least one voting member of the Council be certified with the Department of Revenue
for completing LBAE training within the last four years. Current certifications are held by Council
Members Svenby, Voss and Boeke.
County Assessor Effertz commented he plans to retire at the end of May so this will be his last
year to present the City’s Annual Assessment Report. The Steele County Assessor’s Department
analyzes real estate sales during a 12-month period to modify the mass appraisal system to the
current market as well as to improve equalization amount properties. Sales from October 1, 2020
– September 30, 2021 were used to complete this report and analyzed for market trends and
assessment to sale ratio. Effertz explained the purpose of the LBAE is to provide a fair and
objective forum for property owners to appeal their valuation and/or classification. The goal of the
LBAE is to address property owner’s issues fairly and objectively.
They are required to inspect 25% of parcels; this year, they looked at properties east of I-35, south
of Cherry Street and north of School Street. The objective of the assessor is to be both accurate
and uniform. There are three reasons that valuations change each year:
1. Market Adjustments: Occur due to the ever-changing market conditions of the real estate
market. Different types of real estate changes at different rates. The 2022 adjustment rate
was 17.07%, last year it was 6.31%.
2. Equalization. Even in a stable market, property values will change due to equalization. If a
property value based on analysis of sales, is thought to be under or over assessed, either in
relation to other properties or to a range of acceptable guidelines, the valuation may increase
or decrease.
3. New improvements.
The Commissioner of Revenue requires all property types be assessed between 90-105% of
selling price. Any assessment by aggregate property type that is outside of this range will be
adjusted accordingly by the State Board of Appeal and Equalization. Percentage of Property
Types within the City for 2022 Estimated Market Values are:
Residential 73.91%
Commercial & Industrial 18.85%
Apartments 5.79%
Agriculture Land 1.45%
Minnesota Statue 273.1251 states all property must be valued at its market value. To facilitate
this the Department of Revenue mandates the median ratio in each jurisdiction, with an

[PAGE 2]
Minutes - City of Owatonna Board of Appeal & Equalization
Tuesday, April 20, 2021
Page 2 of 4
adequate number of sales between 90%-105%. This ratio is determined by taking the assessed
value by the sale price. The City’s ratio at the beginning of the evaluation cycle was 74.55%;
421 sales were used in the Sales Ratio Study to adjust this property ratio to 91.07%.
Net Tax Capacity, the effective measurement of the tax base, increased $4.65 million or
17.7%. This reflects the changes in the market valuations plus the addition of new
construction which leads to the expanding tax base. Owatonna’s Net Tax Capacity has been
on a steady incline over the last five years creating a ripple benefit for everyone.
The total Estimated Market Values without New Construction expanded 15.7% to $2.672
billion. Valuations of all property types increased during 2022 (these ratios do not include new
construction values):
Total Agriculture / Rural 3.84%
Total Residental 20.2%
Apartments 5.76%
Commercial/Industrial 2.6%
Industrial 5.48%
Estimated Market Value of New Construction was $41,842,300.
Miscellaneous 2022 Data:
Residential Home Sales: 630 transactions; 61 more transactions than last year
Median Sale Price $215,000; $28,000 increase over last year
Residential Vacant Lot Sales: 39 sales; 9 more than last year
Median Sale Price $35,600; $2,600 increase over last year
Residential Estimated Market Value
Median Value $221,650; $39,450 increase (20.2%) over last year
Median Value per square foot $172; $28 increase over last year
Number of new homes built 35; 2 more than last year
Assessor Effertz explained property owners have opportunity to appeal their proposed property
valuations. Their appeal is first presented to the Local Board of Appeal. After tonight’s meeting,
if the property owner is still not satisfied with their proposed 2022 assessment, the next step in the
appeal process is to make an appointment to attend the Steele County Board of Appeal and
Equalization Meeting. This meeting will be held on June 14, 2022 at 7:00 p.m. in the County’s
Administration Center. Valuation protests were received on these parcels within the City of
Owatonna with the proposed recommendations from the Assessor’s office shown:
PARCEL ID DEEDHOLDER ADDRESS PROPERTY VALUE ADJUSTED CHANGE REASON
TYPE VALUE
17-003-2305 James Bain 509 Hazel Residential - $92,100 $92,100 0 No Change
Lane Single Dwell
17-009-1240 MKP Properties, LLC 600 Hoffman Comm $512,000 $472,100 -$39,900 Value High
% Mark & Karen Dr N Land/Blk - land
Peterson
17-009-2410 Kevin Oyloe 486 bridge St Residential - $148,400 $148,400 0 No Change
W Single Dwell
17-108-0207 Kevin & Wende 205 Wall Residential - $290,800 $290,800 0 No Change
Oyloe Avenue Single Dwell

[PAGE 3]
Minutes - City of Owatonna Board of Appeal & Equalization
Tuesday, April 19, 2022
Page 3 of 4
17-139-0302 Sherry Lynn Ahlrichs 1039 Grove Residential - $164,000 $164,000 0 No Change
Ave S Single Dwell
17-182-0317 James & Gabrielle 1314 Lincoln Residential - $211,000 $211,000 0 No Change
Thon Trustees Ave S Single Dwell
17-187-0134 2110 Linn Dr Residential - $309,800 $301,600 -$8,200 Value High
John & Lee Gehan Single Dwell – Land
17-210-0106 Thomas & Connie 346 13th St Residential - $184,600 $184,600 0 No Change
Griffin NE Single Dwell
17-221-0301 LZL Engineering LLC 2300 Park Dr Ind Land/Bld $1,568,500 $1,568,500 0 No Change
– 1st $150,000
17-275-0108 Craig & Janice Kautz 150 18th St Residential - $282,600 $282,600 0 No Change
NE Single Dwell
17-284-0207 Kyle A Skov 763 17th St SE Residential - $281,400 $281,400 0 No Change
Single Dwell
17-298-0114 Allen & Donna 735 Gilmar Residential - $303,700 $303,700 0 No Change
Grosland PL Single Dwell
17-305-0111 Jerry & Francie Drake 155 Cedar Pl Residential - $250,700 $250,700 0 No Change
Single Dwell
17-307-0120 Stephen & Heather 395 Arglen Residential - $226,300 $213,900 -$12,400 Value High
Brownewell DR Single Dwell – Bldg
17-310-0103 Scott & Donette Smith 1616 Mosher Residential - $263,900 $263,900 0 No Change
Ave Single Dwell
17-3127-0406 Joanne Stohl & 645 Allan Ave Residential - $194,300 $194,300 0 No Change
Jennifer Stohl Powell SW Single Dwell
17-50-0217 Todd & Kristen Andrix 1805 Residential - $366,700 $366,700 0 No Change
Greenhaven Single Dwell
NE
17-374-0101 Michael & Deanne 547 School St Residential - $298,500 $298,500 0 No Change
Shaw E Single Dwell
17-375-0327 Patrick & Kensi Proehl 921 Residential - $309,700 $309,700 0 No Change
Greenhaven Single Dwell
17-383-0105 Nathan & Diane 520 Hazeltine Residential - $418,100 $418,100 0 No Change
Skala Pl NE Single Dwell
17-538-0108 Richard & Susan 1925 Residential - $469,300 $469,300 0 No
Strom Whitetail Run Single Dwell Change- no
Pl NC Inspection
17-555-0403 Doug & Jill Holmes 1135 Jadden Residential - $494,000 $494,000 0 No Change
Lane SE Single Dwell
17-572-0106 Brian & Rachel 2175 Maple Residential - $430,700 $430,700 0 No Change
Sande Leaf Ln NE Single Dwell
17-593-0124 Gary & Tammy 2168 Harbor Residential - $466,200 $449,000 -$17,200 Value High
Adams, as Trustees Oak Dr SE Single Dwell – Building

[PAGE 4]
Minutes - City of Owatonna Board of Appeal & Equalization
Tuesday, April 20, 2021
Page 4 of 4
17-598-0112 Ryan & Anne 2720 Timber Residential - $506,000 $483,000 -$23,000 Value High
Hemann Ridge PL NE Single Dwell – Building
17-599-0001 Cole Bishman Residential- $7,100 $6,300 -$800 Value High
Vacant Land – Land
17-599-0215 Cole & Lindsey 1507 Eagle Residential - $308,800 $304,500 -$4,300 Value High
Bishman Ridge St NE Single Dwell – Land
17-605-0101 Gary & Tammy 1514 Smith Residential - $174,500 $174,500 0 No Change
Adams, as Trustees Ave SE Single Dwell
17-612-0108 Daniel & Cheryl 1570 Eagle Residential - $310,000 $310,000 0 No Change
Attig Ridge St NE Single Dwell
Present to appeal their proposed property valuations were:
Chris Gartner, 227 East Mill Street, said he has owned this property for 27 years and questions
the 30% valuation increase proposed this year.
Dale Sommers, 855 20th St NE, stated his property has received annual average increases of 8%
but this year, the proposed amount is a 40% increase.
Assessor Effertz commented his office will add these two properties to the appeal list. His office
will review the proposed valuations for potential adjustment. Effertz commented this year, the
average valuation adjustment in Steele County was a 20% increase.
Council Member Dotson made a motion to accept the 2022 Property Owner Appeal List presented
by the Steele County Assessor’s office with addition of these two parcels and the proposed
adjustments as recommended. Council Member Svenby seconded the motion, all members voted
aye for approval.
At 6:32 p.m., a motion was made by Council Member Boeke, seconded by Council Member
Dotson to adjourn.
Dated April 26, 2021 Respectfully submitted,
Jeanette Clawson, Administrative Specialist