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The North Branch council chamber was filled Monday night as an overflow crowd packed into the city hall foyer to participate in the Board of Equalization hearing. It was an evening of irony. Dozens protested their "too high" property values, immediately followed by another set of property owners complaining that a proposed townhome project would chip away at their values.

Chisago County Assessor, John Keefe, and deputy assessors have travelled the county in recent weeks providing these "equalization" sessions where taxpayers can start to appeal valuation for taxes payable for 2012; but nowhere else has there been such a huge turnout for Board of Equalization. Last year many North Branch residents were also in attendance, as the council reviewed about 24 appealed parcels for pay-2011 taxes.

This year's issues were with all types of property: farmland, wasteland, commercial and residential, there didn't seem to be an under lying theme except that the valuations determined by the assessor were too high.

Keefe explained that the process of assessing is based on actual real estate sales and comparisons of amenities of similar properties. Valuation has to be within a tight window of no less than 90 percent of market and not more than 105 percent over market-- or state regulators can make unilateral adjustments on the county's valuation. Keefe said the staff reviews as many parcels as possible in person, but that's why the Board convenes, so that people can appeal.

Keefe further explained that the high and the low property sales for specific territories are tossed out, and the assessors use a median range for comparable properties. This was in response to some people reporting very cheap nearby land sales and questioning why their acreage was valued more.

And, the system is always about a year to 18 months behind the market. Staff can only do so much in one year, so any very recent real estate sales won't actually figure into valuation until next year, Keefe added.

Council scrambled to wrap up the Board of Equalization in time to begin the regular city council meeting fairly close to 7 p.m.

Many remained in the meeting room to observe action on a request from a developer for city support for a townhouse development. The project is proposed on land zoned for townhouses, west of the Outlet Mall, off Falcon Avenue near 383rd.

Bill Kemp is assembling a tax credit application; which he will submit to the MN Housing and Finance Agency to qualify for an affordable housing project. Written city support scores points for the application.

Kemp said the project is needed as peoples' incomes continue to decline or don't keep pace with inflation. "There's no rent subsidy, these people will have jobs who live here," said Kemp. (Potential renters qualify around 60 percent of the area's median income, which Kemp said would be a wage of at least $35,000 a year.) Kemp said his development is supported by investors who receive credits through special housing incentive programs and many of the residents in other projects like these are eventually able to buy a home.

People in the audience didn't appreciate what Kemp was saying. Protestations, especially about negative impacts to nearby house values, were audible. Mayor Amy Oehlers had to bring order, saying, "It doesn't help the council when people are badgering us."

She then told Kemp he has a "nice project," but it's in the wrong location.

Oehlers couldn't support his application for a "tax credit" project. Council member Ron Lindquist said he lives in that neighborhood and has heard loud and strong that his neighbors don't want this.

The mayor said if nobody makes a motion the council can simply not act on the resolution of support -- which is what happened.

The second request from the developer, to create a Tax Increment Financing District for the site, got nowhere. Council member Kathy Blomquist made a motion allowing it, but got no second.

Richard Olson asked council to waive his "fines" for having excessive alarm callouts that ended up being system malfunctions. North Branch Police will go to three "false alarms" and after that the city bills $100 for each incident. Olson Power was billed for over $1,000 worth of false alarms.

Olson said problems with the security firm and equipment have been addressed. His fines were eliminated on a 4-1 vote with Council member Theresa Furman opposed.

Council also voted to decrease the city's park dedication fee and sewer access charges; for a maximum of 10 new projects by November. New projects get 75 percent off these fees as a city incentive to spur growth.

The issue of reducing the cost of building permits will be discussed at an upcoming work session.

Council accepted a tax delinquent "outlot" near the freeway, south of Anderson-Koch dealership, that's been vacant since the outlet mall was constructed. There must be no cost to the city if the lot is transferred. The small lot could be useful for a stormwater holding pond or right of way, staff said.

On Council member Furman's request council will review the practice of paying $26/month for cable T.V. at the liquor store. The expense will be on an upcoming agenda.

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