04-21-2004 Council Minutes Local Board of Appeals & Equalization

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MINUTES OF THE ORONO LOCAL BOARD OF APPEALS AND EQUALIZATION MEETING Wednesday, April 21, 2004 7:00 o'clock p.m. He expressed his concern for being additionally assessed in the future for value already on the tax • statement. Davy explained the property would be assessed as partially completed according to the stage it is at on the January 2, 2004 assessment date. Mr. Walsh described the cabin's shell was completed but had no electrical or plumbing or interior walls completed. Davy offered to review their property record to determine if the shell was valued, and reiterated the assessors attempt to take a conservative look at initial construction for estimates of improvements, especially if the building is just starting and property owners are not able to use it. White asked for a purchase history from Mr. Walsh who indicated he purchased the property in 1997 for less than 1/3 its current value. Davy stated the assessors will also review the seasonal versus homestead residential status and offered to explain the application process to the Walshes, in addition to the property's value. Mr. Walsh indicated the property had previously been a campground. Mayor Peterson confirmed the assessor would contact the Walshes to follow -up on the questions raised. Davy advised the assessors will contact the Walshes and determine if there is a new value, and if the property owner is in agreement with the value, then the assessors will inform the Board of Appeal on its continuation meeting, set for May 10, 2004 with a recommendation for market value reduction. If the property owners are not in agreement with the assessors' recommendation, they may further appeal to Hennepin County. Mr. Walsh indicated he could not attend the May 10, 2004 meeting but that Valerie Walsh will attend if necessary. Mr. Walsh thanked the Board for their consideration. Mayor Peterson asked the assessors if any property owner letters were received and should be added to the record. Davy replied there were no letters received. Mayor Peterson asked for other comments. McMillan asked for information about the relationship between land value and the building on it. Davy explained that the land is valued separately, and is compared to bare land sales or land indicators of sales with buildings and is compared to similar land values. Murphy commented that there certainly continues to be a huge gap in understanding what MnDOT thinks a property is worth and what the community knows the property to be worth. White remarked, from his experience, MnDOT seeks to appraise property it needs to acquire for road projects at the lowest property values in an attempt to keep road improvement projects less costly. Murphy stated that as a community activist he believes that as long as a state agency as large as MnDOT artificially deflates road construction costs with its lower appraised values, the real costs are • not known, and if known, would have a negative impact on public approval of road projects. Page 10 of 11