05-08-2006 Council Packet Reconvened Board of Appeal/Equalization

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MINUTES OF THE � ORONO BOARD OF APPEAL AND EQUALIZATION Wednesday,April 19, 2006 7:00 o'clock p.m. Ericson stated he has 125 feet of lakeshore property. Erickson stated he has two lots listed on one tax statement and that the City would not allow him to construct a new residence on the 65-foot lot a few years ago. —= Ericson reiterated that an increase of$103,000 in one year is too much and that he will not be able to _ ,. live there once he retires. Davy indicated they did visit the Ericson property last year and that the market valuation was carried forward from last year. Murphy inquired whether Mr. Ericson took his case through the appeal process last year. Ericson indicated he did not. Ericson stated the aerial photograph that was displayed last year shows that his neighbor's house is located on his property. Murphy indicated that he also experienced a similar increase and that the city is in a difficult situation with property valuations. Murphy stated this is the first tiine in about three years that the average increase is less than 10 percent throughout the city. Murphy stated the hot real estate market is driving these increases. Ericson stated no matter what the valuation is,people have to be able to live in a house, and that based on the overall valuation of the city, the board has some leeway to reduce his valuation somewhat. McMillan stated they cannot reduce it by more than one percent of the total assessed value. White inquired why Mr. Ericson's valuation came in higher than the average. Davy stated the valuations vary around the lake, with some valuations going up 17 or 18 percent and others only going up 5 or 6 percent. Ericson stated the problem along Shadywood Road is that people are buying up houses and then tearing them down and constructing million dollar homes. Murphy noted that there is a lot available on Bohn's Point for $3.5 million without a house. Ericson stated in his opinion he is being penalized because the City told him approximately 15 years ago that he could not build a home on that adjoining lot. White commented he does not like the systein because some people are getting taxed out of their homes. White stated he does not see a way to get aroun�i the process that the City is requircd to go through;n determining valuations. Peterson stated the county assessor has provided some numbers for neighboring communities,with Deephaven being at a 16 percent overall average and Excelsior is over 30 percent. Davy stated the City of Orono has been more current in their increases than some of the other cities and that most property owners do not experience a huge increase. PAGE 2