04-23-2003 Council Minutes Local Board of Appeal & Equalization

Home Browse Search

MINUTES OF THE ORONO LOCAL BOARD OF APPEAL AND EQUALIZATION MEETING Wednesday, April 23, 2003 7:00 o'clock p.m. • at the close of the meeting tonight which limits the number of reviews for appeal to those present, or documented on the sign in sheet for the reconvened meeting of May 12. 1) Kirt Woodhouse, 2 parcels, 1800 Shoreline Drive, PID #10- 117 -23 13 0023, valued at $900,000 1760 Shoreline Drive, PID #10- 117 -26 14 0017 valued at $1,450,000 Mr. Woodhouse explained that he purchased three parcels 1 %2 years ago for $2,250,000. He rearranged the lot lines and then sold the center parcel with a Philip Johnson architectural home on it for roughly the same money. Due to the fact that this was the only home in Minnesota designed by the famous architect Philip Johnson, it was the most valuable parcel of the three. Since the 0023 property was a vacant parcel, which had not changed over the past year, he questioned how the valuation could have more than doubled over the past year. In 2002, the property was valued at $400,000, in 2003 the appraisers set the value at $900,000. He felt this was inappropriate and could support no more than a 25% increase from last year. Mr. Woodhouse indicated that he was in negotiations with the Minnetonka Center for the Arts to move the home on the 0017 property, as it contains a home built by architect Frank Gehry. Sansevere acknowledged that Mr. Woodhouse inadvertently pushed the value of his remaining two parcels up by selling the middle parcel so well. Murphy asked what plans for the remaining two parcels Mr. Woodhouse had in mind. Woodhouse stated that he had intended to sell the vacant parcel, and hoped that the middle buyer • would purchase the lot to add to his property. He tried to market the parcel for $1,550,000 in order to entice the buyer of the middle parcel to buy it for half of that. He offered the vacant lot to the middle owner for half the price, but has since taken it off the market. Murphy inquired as to the size of the parcels. Woodhouse stated that the vacant parcel was 3 acres, a '/2 acre of which was wetland, with no lakeshore access. The Gehry parcel is 4.25 acres, 1 acre of which is wetland, and the lakeshore is across the busy County road. Sansevere asked the assessor's for their opinion as to why the parcel had doubled. Wynn stated that the values were based on the revised calculations taking the middle parcel into account. Sansevere asked what price is placed on the intrinsic value of a famous architect. Wynn indicated that they might place an estimated $300,000 additional value for its architectural significance and still be just at sale price. We have no real way of surmising that value. He commented that even at 84% of the sale price, impacts from the value of the middle property, the lake view, and nice setting, all play a role in evaluating the price estimated for the vacant property. Sansevere asked Wynn if he were firm on the $900,000 valuation. He pointed out that even Mr. • Woodhouse perceived the market value of that parcel at half his list price, or $775,000. PAGE 2 of 6