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. concerns expressed by property owners, and assessor staff are advisory only. Davy advised the third • level of appeal is to the Hennepin County Board, which meets the last two weeks in June 2004 to consider property value appeals. The final 2004 market value appeal level is to the Minnesota Tax Court by April 30, 2005. The assessors received many phone calls and Davy explained the majority of questions were about the limited taxable value increases. He described that the limited taxable value which was set by the Minnesota State Legislature in the 1990's when 20 -25% market value adjustments were common, was set to expire in 2001 but was extended. Taxable value increases are currently limited to 15% and for the next two years will also be at 15 %. Murphy asked for confirmation that the Minnesota Legislature reviewed that percentage each session and, over time, the goal is to eliminate the gap and that the two numbers (market value and taxable value) will become the same. Davy agreed with Murphy's description and advised that this year many properties have a market value that is the taxable value, and this will occur next year as well. He advised the limited market value is set to be phased out. Gerald Walsh, 180 Big Island, commented that in his letter of meeting notice and valuation it was not made very clear that this is a second level of appeal and that property owners should make contact with the assessors as a first level. Mike Adair, 650 Tonkawa, also indicated he did not understand from his letter that this was the • second level of appeal. 1) Alan Nettles, 1940 Shoreline Dr, PID #10- 117 -23 47 0007, valued at $810,000 Mr. Nettles explained his property with 121' front feet of lakeshore two years ago increased $132,000 and three years ago increased $125,000 with the house value frozen at $148,000, with the land value increasing $350,000 recently. He stated there have been no improvements to the property but there have been some problems such as an unlocated drainage ditch collapse with flooding that caused the loss of 10 -11 trees. He added that the house actually detracts from the property value, citing a property at 1910 Heritage Lane /Shoreline with 127' front feet of lakeshore valued at $865,000. Kunik responded that he had talked with Mr. Nettles. Mr. Nettles stated the property does not have a modern house, the driveway has sinkholes and believed the property would be more valuable without the house. He stated the market value is neither accurate nor fair. He agreed he would meet further with the assessor and asked where to secure appeal forms. Mayor Peterson confirmed that Mr. Nettles would meet with the assessor to review the land value. Davy stated the assessors do not conduct a full comparables study at this stage, but a full -blown • appraisal would be done at the level three appeal. Mr. Nettles asked for the assessor's documentation for applying to his property. Davy indicated general growth in lakeshore property values was used. Page 2 of 11