Preston looks at indoor climate controlled storage

At the April 20 Preston City Council meeting the council considered adding climate controlled storage as a conditional use in the B-3 Business District.
The Planning Commission held a public hearing prior to the council meeting on the request to amend the city’s ordinance to add indoor storage as a conditional use. There have been two requests from individuals that would like to add this kind of storage. Developer Julie Sogla provided a proposed building plan for the building located at 144 Main St. SW. Her plan locates a real estate sales office in the store front on the main floor with the climate controlled storage units behind the office on the rest of the first floor.
Mayor Kurt Reicks was concerned about the loss of store fronts as were members of the Planning Commission. He asked if the storage units could be limited to the rear of the building. The commission did recommend amending the zoning ordinance to allow this additional conditional use in the B-3 zone. There was no input from the public at that hearing.
Because it would be a conditional use, certain conditions can be set. There may be a limit to the percent of the main floor that can be used for storage units or a condition pertaining to the use of the store front as a retail space. Councilwoman Holly Zuck questioned whether there should be limits on the kinds of items which can be stored; for example, materials that could be combustible or hazardous.
City Administrator Joe Hoffman and City Attorney Dwight Luhmann will work together to draft language for an amendment to the zoning ordinance adding indoor storage as a conditional use, which will also address the concerns expressed by the council. This draft will be considered at the next meeting.
Local Board of Appeal
and Equalization
Brian Hoff, Fillmore County assessor’s office, discussed property value changes in Preston. A sales study conducted from October 1, 2018 to September 30, 2019 found the median sales ratio to be 75.48. The sales ratio is supposed to be between 90 and 105. Because of the sales study, the base square foot rate was increased $12, from $61 to $73 per square foot.
He reported there were 24 sales in the city and 258 countywide. Hoff reviewed the rules and duties of the local board of appeals. Only the 2020 assessment can be looked at, not any prior assessments. Appeals must be based on facts. Six sales in any taxing district for any property class is considered a valid sales study.
The only appellants were Andy Bahl and Karen Haugerud. They insisted there has been a mistake on their property. Bahl said their home had been appraised at a market value of $363,000, which he believes would be close to the asking price. He suggested the county’s market value is 28% over the property’s actual value. They both maintained they just wanted to be treated fairly.
They came prepared with numerous examples of homes in the area that had assessed values much less than what they actually sold for. These homes had been assessed for an average of 20% less than what they were worth. Bahl insisted his is just the opposite.
Hoff noted that state statute requires every property to be reviewed externally and/or internally every five years. This property was visited two years ago. At that time a downward adjustment was made in the amount of $41,900. He admitted that we do make mistakes sometimes and when we find errors, we will fix them. Bahl said it is still 17% over the appraised value.
Hoff said any further reduction will take an action of the board. The current market value is $424,000. Councilman Robert Maust asked what they felt would be a realistic sales price. Bahl said $375,000. Maust moved to lower the value to $375,000. The motion passed (4-1).
Other business in brief
• The Preston Ambulance Service has been awarded a $5,000 COVID-19 grant from the Minnesota Department of Health. Ambulance director Ryan Throckmorton says an additional stipend of $4 per hour will be given to EMS staff that put in over the minimum 60 hours per week. This will help them maintain a 24/7 schedule through the pandemic. The grant funds will likely be used up over the next three months. The council accepted the grant funds and the plan to increase the stipend as proposed. The stipend increase will be terminated when the grant funds are exhausted.
• Police Chief Blaise Sass explained that the police department wants to replace a 2014 Impala with a 2020 Dodge Durango squad car. The new squad is estimated to cost about $38,000 fully equipped. There was a consensus to move ahead and get quotes which will be brought back at a later meeting. Sass said they expect to replace vehicles on a six-year rotation. They have a second 2014 Impala that they hope to run for another two years before its replacement. At this time there is $44,000 in the squad fund.
• The offer of a three-month deferment at 0% interest on the repayment of four qualifying small city loans (274 revolving loan account) was approved as recommended by staff. The three months deferred will be added on at the end of the loan. EDA director Cathy Enerson explained that DEED is allowing for an amendment to revolving loan guidelines.
• The Fillmore County Journal was approved as the city’s new official newspaper. With the News-Leader newspaper closing and discontinuing publishing at the end of March, the Fillmore County Journal is the only legal newspaper available in Preston. Hoffman noted advertising costs will be significantly higher. He also said that the Journal’s rates are consistent with market rates. The News-Leader’s rates for the city were well below market rates. It was noted, if all ads, notices, and required budget and financial summaries were continued as in the past, it will cost the city about $3,600 more. Some optional notices and ads may be placed only on the city’s Facebook page to cut costs.
• Ron Gehling’s proposal to rent the veterans home site crop land (9.45 acres) for 2020 at $200 per acre was approved.
• The Preston City Council will meet on May 4 and May 20 at 6 p.m.