05-09-2005 Board of Appeal and Equalization Reconvened Packet

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MINUTES OF THE ORONO BOARD OF APPEAL AND EQUALIZATION Wcdaesday, April 20,2005 7:00 o’clock p.n. Morrison inquired what Orono’s percentage is on the roads. McMillan stated she would prefer to discuss the individual property valuations at this hearing, noting that the City ’s truth>in-taxation meeting is held in December. McMillan stated the percentage of the increase in valuation on a particular home typically changes every year based on market values and is regulated by the State Legislature. Morrison stated he would have liked to have a representative from the county nr state present at tonight's meeting. Morrison stated each year since owning the property he has experietKcd double digit increases. McMillan stated the City is taking whatever steps possible to keep the city ’s taxes as low as possible but that typically all the properties in the City experience an increase given the demand for land in this area. Morrison noted the assessor has already visited his site and that he attended tonight’s meeting to voice his complaints about the rising valuations. 6. Scott Prochnow, 4075 Highwood Road, PID 07-117-23 44 0009. Prochnow stated for the first time in the approximately IS years he has lived on his property a house was sold in his neighborhood which has given him some basis for comparing his valuation. The neighboring lot is approximately twice as large, with larger structures, and sold for approximately the 2003 valuation of $778,000. Prochnow suited the valuation for 2004 was $894,000. Wynn stated the sale in August would have affected the 2005 value. Prochnow stated the neighboring house sold for $775,000. Prochnow indicated his valuation in 2004 was $620,000, in 2005 it was $727,000, and for 2006 is $828,000. Prochnow stated in his opinion his valuation is not in sync with the house that was sold. Prochnow noted he was told by the Assessor’s Office the house was sold under duress and that he differs with that characterization. The listing agent did a market anal)rsis and suggested the $900,000 range for it to be sold, with the owner listing the property originally at over a million dollars. The house sold 60 days later in a very hot market for $775,000. Wynn stated he did speak with one of the sellers of that property and was informed that they were desirous of selling the property quickly and that it was recommended to sell the property at around $950,000. Wynn indicated a number of people did express interest in the house but that the house was sold to the next person who made an offer due to the rapidly failing health of one of the owners of the property. Prochnow stated if die house had been priced fairly in a hot market, the house would have sold for what it was listed on the market for. Prochnow stated the seller did not get the million dollars they originally listed the properly for and that the house could have sat on the market for a much longer period of time had the price not been lowered. Murphy pointed out the average selling period for a million dollar house on the lake is approximately six months. PAGE 6