05-13-2002 Board of Appeal and Equalization Reconvened Packet

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4400 DEERING ISLAND - PID# 18-117-23-31-0001 Owner - Stephen Fames 'I he house needs a new roof. The roof leaks and some sheeirock has been replaced in the kitchen. There are numerous foundation problems. The siding needs to be repainted and some of the siding is rotting. The fireplace chimney needs some repairs and tuckpointing. The basement is damp and walls show molding in some areas. The kitchen has been remodeled, but with minimal cabinets or counter space. The rest of the interior is original to the year built with the exception of some painting on the interior and some aluminum clad windows. At this time we feel the house is adding minimal value to the site and we are planning on depreciating it to $20,000 in value. We visited the island on May 7 with the owner. The Hennepin County Sheriffs Ofllce gave us a ride to the island. The island is well treed and has a nice elevation. It is gently rolling with a nice slope to the shoreline on the south side and a bluff like shoreline on the north. 'I'here is a huge on the east of the island going out to its point and the western portion the island is dry mixed with a little bit of wetland grass. There is no rip rap on the shoreline, so it is susceptible to erosion. Hie Hennepin County web site indicates Deering Island is 3.98 acres. This is what we based the original valuation on. The original value for 2002 was $820,000. Land = $760,000, Building = $60,000. The owner and his father met with me at city hall prior to the Board meeting and they presented me with a survey that had been completed in 198S. I found this same survey in the city ’s street file. I'he survey was determined from an arial photo flown 4/10/85. This survey does not indicate what the high water mark line is. The survey indicated that the size of the island is 2.65 acres. We reviewed this and determined that it is a reasonable size based on what the water levels were at that time. We adjusted our records to reflect the area of the island is 2.65 acres and we reduced the value of the island accordingly. The 2002 valuation was reduced to $637,000, Land = $577,000, Building = $60,000. The spreadsheet presented to you at the first Board meeting was something that we crea'<‘d to show a correlation to owner that as the size of the site gets smaller the dollar per square foot becomes larger. I'he reverse is also true as the size of the site gets larger the dollar per square foot becomes smaller. This is a common phenomenon for both on lake or off lake and on an island or on the main land. We typically value lakeshore on a per front foot basis, but an island isn't that easy with all of its shoreline. Therefore we are look at it more on a per site basis and the dollars per square foot is simply another indicator of equalization. By reducing the size of the island the site is still a single site and that is how it is currently being valued. Originally when the islands land was estimated at $760,000 it was being assessed for $4.38 per square foot. This figure was based on 3.98 acres. When the size was reduced to 2.65 acres the natural change would be a higher dollar per square foot because the site is smaller. The islands land value was changed to $577,000 or $5.00 a square foot. I'he attached spread sheet will show this relationship. The spreadsheet also shows the most recent sales of island properties and the fact that further adjustments will be necessary for the 2003 estimated market value. We did not use any specific lakeshore sales on the mainland to help us determine the estimated market value. In 1992 Stephen Fames filed tax court petitions for the 1991 pay 1992 estimated market value and the 1992 pay 1993 estimated market value. The petitions were settled before they went to court and they were stipulated to $125,000 for each year. A tax court petition is only good for the year petitioned and subsequent years are subject to change to whatever value is a considered to be a fair market value for the property. From 1991 to 1999 the market value only changed 25% from $125,000 to $157,000. This may have been due to a tack of sales of islands or properties located on