04-16-2008 Council Packet Board of Appeal/Equalization

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� 4 Steven Snyder and Sherry Stern 2715 Pence Lane, Orono MN 55331 (952) 471-0646 21 _ � � � _Z3 -3Z � c�o7 Request for Adjustment in 2008 Assessed Va/uation Adjust 2008 City of Orono's Estimated Market Value for 2715 Pence Lane down from $3,650,000 to $3,309,965. This is a 9.3%reduction. Rationa/e • An initial interview with Mr. Davy from the City of Orono indicated that the 2008 Estimated Market Value for 2715 Pence Lane incorporated broad market indicators only. Budgetary constraints precluded a specific comparison group. • Steven Snyder worked with Mr. Davy to arrive at a comparison group. o We identified 22 transactions of over$2 Million in the past year. o We eliminated transactions that were clearly not comparable. o We identified four properties in the $3 Million to $4 Million range that served as a comparison group (420 Tonkawa; 2507 Kelly Ave; 1000 Wilhurst Trail; 2599 Casco Point). • Note that for this group of four properties, the City of Orono 2008 Estimated Market Value (column 3) is significantly less than the Sales Price (column 2). The average 2008 Estimated Market Value for these properties is 78.2% of the Sales Price (see ratio in Column 4). • To adjust for differences between these properties, and to achieve comparability with the Pence Lane property, each property was evaluated using w��.zillow.com (column 5). o While Zillow has its shortcomings, Mr. Davy acknowledged that he knows of no better public source that allows comparisons among properties. o Please note that the Zillow site is not being used for absolute market valuation purposes. It only serves as a basis of comparison. • A ratio of the 2008 Estimated Market Value to Zillow estimate was computed (Column 6). For the comparison group this ratio averaged 93.4%. For 2715 Pence Lane this ratio is 103.0%. Thus,the 2008 Estimated Market Value for 2715 Pence Lane is out of line with all properties in the comparison group. • An Equalization Factor of 93.4% (column 7) was applied to the Estimated Market Value for all properties. This gives an Adjusted 2008 Market Value that is more fairly computed (Column 8). For 2715 Pence, this gives a Fair Assessment of$3,309,965.