04-18-2012 Council Minutes Board of Appeal & Equalization

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v MINUTES OF THE ORONO 2012 LOCAL BOARD OF APPEAL AND EQUALIZATION Wednesday, April 18, 2012 7:00 o'clock p.m. ROLL CALL The Orono Board of Appeal and Equalization met on the above - mentioned date with the following members present: Mayor Lili Tod McMillan and Council Members Cynthia Bremer, Doug Franchot and David Rahn. Representing Staff were City Administrator Jessica Loftus, Finance Director Ron Olson, and Recorder Jackie Young. Hennepin County Assessors Thomas Kunik and Michael Smerdon were present. . Mayor McMillan called the meeting to order at 7:03 p.m., followed by the Pledge of Allegiance. Kunik stated overall last year the City experienced an average drop in value of 7.9 percent over all property types. Lakeshore properties decreased in value an average of 8.6 percent and off lakeshore properties experienced a 6.8 percent decrease in value. The assessor's office looked at all sales within the . City, with the state deeming 71 percent of those as arms length transactions. McMillan asked what the time frame was that the assessor's office looked at for the sales. Kunik indicated they looked at the sales period from October 1, 2010, through the end of September, 2011, to determine the decline in the market for this year. APPEALS 1. BRIAN HEADON, 360 NORTH ARM LANE, PID #06- 117 -23- 24-0012 Brian Headon stated the valuation on his 2012 property statement was $636,000. Headon stated in his view the value of the property is more in the $500,000 range since he purchased the property on October 31 for $475,000 and had it appraised for $500,000 a couple of weeks before that. McMillan asked if he has spoken with the assessor. Headon indicated he has not. Kunik asked if he has a copy of the appraisal that the assessor's office can have. Headon indicated he does have a copy and will provide it. Kunik stated the next step would be to conduct an inspection of the property. Kunik indicated they would also like to see a copy of the purchase agreement. Kunik stated the assessor's office will look at the appraisal and make sure that the best comparable sales were used and that the value of the property is fair to Mr. Headon and his neighbors. Kunik indicated he will be in touch with Mr. Headon before the end of the week. 2. BETSY LABELLE, 539 KEENE AVENUE, PID #02- 117 -23 -31 -0028 Betsy LaBelle indicated she did speak with the assessor in November of last year. The estimated market value of the property was $648,000 for 2011 and in 2012 it is $607,000. LaBelle indicated she purchased is the property on December 18, 2009, and the taxes were $5,392. The taxes have increased 38.7 percent since that time. LaBelle indicated she is curious about the increase. Page 1