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HomeMy WebLinkAbout04-26-1995 Board of Review Minutesi* iVIINUTES OF THE BOARD OF REVIEW MEETING HELD APRIL 26, 1995 ROLL The Orono Board of Review met on the above date with the following members present: Mayor Edward J. Callahan, Jr., Councilmembers J. Diann Goetten, Gabriel Jabbour, Charles Kelley and JoEllen Hurr. The following represented City staff: City Administrator Ron Moorse, City Assessors Rolf Erickson, Dave Wilde, Gail Navratil, Lisa Mott, Tom Haller, Tom Carrol, Hennepin County Senior Appraiser Tom Scherer and Recorder Lin Vee. The meeting was called to order by Mayor Callahan at 7:06 p.m. Mayor Callahan explained that the Board would be reviewing tax values as of January, 1995 for the 1996 taxes. Rolf Erickson is retained by contract with the City to do Orono's assessing. Mayor Callahan stated the powers of the Board are limited, noting the reductions in assessments when added together cannot exceed I% of the total valuation for the City. Hennepin County approves the recommendations of Orono's Board of Review and appeals are made to the County Board if a property owner is not satisfied with Orono's recommendation. The City Assessor will review appeals by property owners and forward recommendations to Orono's Board of Review. The City is divided into four quadrants with one quadrant being physically appraised each year. Erickson explained that the law does not require valuation notices to include a message to contact is an assessor before the Board of Review. Hennepin County has had an overwhelming number of appeals and found it helpful to have some of these appeals and questions addressed by the assessor prior to the Board of Review. He also apologized for the late delivery of the notices due to problems at the post office. Erickson continued with an explanation of the valuation process. The City has much data gathered on each house in the City maintained in the Hennepin County mainframe computer. Assessments are compared to homes that have actually sold and an assessment ratio is applied. The median assessment ratio of all sales in the City must be at 93% for Hennepin County. Increases ranged from 2 -25 %. Mayor Callahan noted that in order to appeal the property valuation it is necessary to appear before the Board or submit a written appeal to preserve the right to appeal to the County Board. He stated that those property owners who were present and did not want to actually appear before the Board but have the assessor review their property could leave their name and property identification number with the assessors and they would be contacted to set up appointments. Erickson asked for Board approval to physically review only those properties that had not already been seen this year. Mayor Callahan asked that those owners be contacted and the position of the assessor be explained. Erickson noted that prior to the Reconvened Board of Review a recommendation letter is sent to each property owner who has appealed stating what the assessor's recommendation will be. The Board may or may not accept those recommendations. is 1 MINUTES OF THE BOARD OF REVIEW MEETING HELD APRIL 26, 1995 i Mayor Callahan explained that appeals would be heard in the order in which they signed in upon arriving. He asked that each property owner state his name, address of property, property identification number, value on the 1995 Notice of Valuation and the value the owner feels appropriate. Clifford Otten. 2251 Pine Ridge Lane 934- 118 -23 220017 - 1995 valuation of $123,000 which he feels is worth $110,000 - $115,000. He explained that his property was in a unique situation because it is a rental property in a nice neighborhood and is probably not kept up as well as others. It rents for $900 per month. Non - homestead taxes were $3283 before the increase. Florence Haeber¢ 740 North Arm Drive. #06- 117 -23 43 0006 - 1995 valuation is $211,000 with a limited value of $202,400. She has lived at this concrete and stucco home for 45 years. Over the last two years the increase has been 22.9 %. The lakeshore is not sandy but mud. She feels the taxes are too high and the absolute highest value it should be is $184,000. Her son noted the 1994 valuation was $170,000 making an increase of $32,000 in two years. Erickson explained how the limited market value works with 10% applied. In this case, taxes are based on $202,400 for the pay 1996 taxes. Taxes payable in 1996 will be based on $202,400 regardless if the value is lowered to anything above $202,400. If it were lowered below the • $202,400, both the limited and market values would change for taxes payable in 1996. Legislation may make changes for next year. Jack Douthit 300 Brown Road South 903- 117 -23 13 0002 - Estimated market value is $185,000 with a limited value of $151, 700. He was unable to give an estimate as to its value. He found it difficult to find any comparables but found a range of similar homes from $120,000 - $200,000.. He has lived in the home for 30 years. There has been an increase of $50,000 from the previous year with no improvements to the property in the last 60 years other than general maintenance. They would not move from the property unless forced to do so because of taxation. He thought the real estate may be worth more than the structure and is over - valued. Steve Wilson, r 485 North Shore Drive. 909- 117 -23 44 0001 - Proposed valuation is $605,000 and he feels it is worth about $500,000. The estimated market value has increased 45% over the last 3 years with 17.5% this year. The assessor indicated the closest comparable wad the Mitchell home in his area. The lots are about the same size but 1/3 of Wilson's is wetlands. The Mitchells have made major improvements where he has not. The home was built in 1900 of field stone as a summer house. 1/3 of it is not insulated with no air conditioning. He did not feel square footage values could be applied in the same manner to his home as others. Reed Bales 970 Wayzata Boulevard #35- 118 -23 410004 - Bought for $155,000 about 3 years ago. Last year's tax value was at $146,000 with this year's at $165,900. He questioned why it would jump $20,000 in one year. Since it is a ranch home there are very few homes for comparables. In looking • at a refinance last year, it was appraised at $155,000. K MINUTES OF THE BOARD OF REVIEW MEETING • HELD APRIL 26, 1995 Jerry Kelly, 4495 Bayside Road 906- 117 -23 21 21 0004 - 1995 market value is $72,000 and went up to $81,500 and he thinks this is too high. The house is over 100 years old. They just took out a $9,000 loan for a new septic system to bring it up to code. He feels that it is across the road from homes that sell for $250,000 which is why it is valued so high. $75,000 would be a fair value for this 2 acre lot. Greg, Gerard 2610 Mapleridg�e Lane #21- 117 -23 21 0009 - 1995 valuation is $299,700. He distributed some information he had prepared. He calculated the property at a value of $266,000 based on the purchase price of the home ($250,00 2 years ago), deterioration, rate of inflation (3 %), market value and comparables of homes nearby, limited value of property, limited shoreline (50') and encroachments (neighbor has an easement) on the property. In 1992 the value was $308,000 which was reduced to $281,000 after his appeal to the County. He appealed to the City in 1993 and the property was reduced to $250,000. The value for 1994 was $269,000 to which he sent a letter to the City but he was unable to appear at the meeting. There has been a 20% increase in two years. The home of 1700 s.f was built in 1979 but there is major deterioration in the home which was covered up by the previous owner. There is 2 bedrooms with 1' /Z baths. The property is very close to the lot lines and hardcover limits. The neighbor is claiming riparian rights to his shoreline and he has talked to the DNR about this. A home in Minnetonka Beach with 120' of shoreline and a better view sold for $200,000. That home is separated from the Lake by County Road 15. He feels • his home is actually worth less than the purchase price of $250,000 because of the structural problems he has found. Veronica Sheldon 3225 Bayside Road 905- 117 -23 410017 - 1995 estimated value was $353,300 and she feels it is worth someplace between $304,000 and $330,000 because they have looked at similar houses. In the last two years there has been a $30,000 increase. They have found neighboring properties have not gone up as much as theirs. The 1994 value was at $342,000 and 1993 value was $320,300. There have been no improvements in the 9 years they owned the property. Curt Ouady. -1223 South Brown Road #10- 117 -23 310065 - 1994 limited market value was $90,000 but the tax capacity rate caused a 16.7% increase. He questioned why the tax capacity was not stated on the valuation card. Mayor Callahan stated that information was not available at the time the cards are sent out because budgets are determined at a later date. The 1995 value is $99,400. When he called the Assessor's office, Dave told him it was because of the land value. Quady did not think a $9,000 increase was reasonable. He felt a reasonable value would be $92,500. The lot is 90'x 140' with the home built in 1953. Erickson explained that because land costs more in Orono since there are few subdivisions, that is what caused the increase in value. There is a shortage of smaller, less expensive homes. The $9,400 increase did include consideration of the house. The land is valued at $26,900. 40 3 MINUTES OF THE BOARD OF REVIEW MEETING HELD APRIL 26, 1995 • Ron Timm 4496 North Shore Drive 907- 117 -23 31 0008 - 1995 estimated market value is at $269,000 with a limited value of $250,800. The 1994 value was $228,000. He has done nothing to increase the value of the property. It is close to the Channel and 19. He- feels the house to the east has a deleterious effect as it is a $60,000 house that is virtually uninhabitable. It is decreasing the value of his property since it is a rental house used by snowmobilers, etc. and he rents out five boat slips in the summer. People are coming and going at all hours. He would like to have the Assessor out to discuss the situation in the neighborhood. He felt the property may be worth $225,000. Paul E Tylor, 3883 Cherry Avenue #08- 117 -23 33 0087 - 1995 value is $134,400 which is a 12% increase over the previous year. It would be fair to raise the value at the rate of inflation at 4% making it worth $123,000. Comparable appraisals are at $103,000 and $91,500 for homes that have sold recently. Ray Hoffinan 1000 Tonkawa Road #08- 117 -23 12 0005 - 1995 valuation is $367,000 which is an increase of $52,400 or 16.7 %. $285,000 would be a reasonable valuation based on comparable sales next door. He would consider his home a tear -down. He has 1.7 acres. Houses in the same neighborhood that sold have either been torn down or moved out and none were over $300,000. His home was built in 1946 and could not be moved because it is made of rock. He felt that since interest rates went down that values did not continue to rise. He was sent a worksheet as to how the • value was arrived at for his home but it was difficult to understand. Jim Gambone 1360 North Arm Drive #07- 117 -23 41 0085 - 1995 estimated market value is $180,000 and the 1994 value was at $164,000. There were no improvements in the last year. He was told by the Assessor's office that the land was a key element. He commented on the term "mass appraisal ". He asked if every house in the City went up a minimum of 8% since there is less land available and values are going up. Mayor Callahan commented that the Assessor had stated that some went up as little as 2% while others may have gone up 25 %. Gambone asked if it was public information to see what percentage each house was increased. Erickson responded that until the County Board accepts the assessment the information is not public and there is additional confidential information in the property files. Gambone asked if the City could ask Hennepin County to give them a list of all the property increases from 1994 to 1995. Mayor Callahan reminded Gambone that the issue before the Board is the value of his property, not general information which should be discussed at another time. Gambone asked if the gontract between the Assessor and the City was public information. Mayor Callahan responded that it was and could be reviewed with the City Administrator. He felt the value should be established at the rate of inflation which was 3% or $167,000. He objected to paying a greater share of the tax assessment than other properties and felt it should be distributed evenly. 4 • MINUTES OF THE BOARD OF REVIEW MEETING • HELD APRIL 26, 1995 Chris and Gail Bollis 220 Stubbs Bgy Road North #32-118-23 42 0003 - 1995 limited market value is at $349,300 with the estimated market value at $350,400 on 20 acres of land. The value has gone up $218,000 in two years. He based his objection on the shadow of the proposed freeway across his land taking approximately 1/3 of it. He compared his property to neighboring land. A 16 -acre parcel with no house was valued at $62,000 in 1994 when his was valued at $274,000 for land only. That calculates out to $13,700 per acre while the neighbor's property would be at $3,931 per acre. A 20- acre parcel across the road with a house on it was valued at $298,000 for the building and $151,500 for the land or $7,500 per acre. A 62 -acre parcel was valued at $361,900 or $5,700 per acre. He felt the land had similar characteristics in all cases and all had the shadow of the freeway on the property. The property across the street was 5 acre zoning while the other properties were 2 acre zoning. The 20 acres was bought in 1989 and he did not know of the southern route that could bisect his property. Erickson thought that the appraiser who did that particular property may have found some other influencing factors. Bollis paid $400,000 for the 20 acres in 1989. He felt the potential freeway lowered the value of his property. Three years ago the property was valued at $130,000 and he should have been in last year to appeal the valuation. He thought the 62 -acre parcel may be in litigation because the seller did not disclose the potential freeway route. He objected to paying more taxes than similar properties and wanted to be treated equally. Dana Halmrast 3287 Casco Circle #20- 117 -23 430044 - 1995 estimated market value was • $107,000 and the limited value was $106,700; 1994 value was at $97,000. An adjustment was given 2 years ago and he objects to the inconsistency of appraisals - one year there's a 2% increase and then 18% the next. The property is worth $100,000 by the inflationary level. There is no lakeshore and they are surrounded by homes on the water who only got a 2% increase while they had a 10% increase. Julie Harren 175 Landmark Drive #05- 117 -23 22 0011 - 1995 market value is $319,000 and 1994 value was $305,000. Her neighborhood is a mixed neighborhood. The new house adjacent to their property of about the same is assessed at $300,000 but they have a panoramic view of Stubbs Bay. Their home is 6 years old and she feels their home should be valued less than the neighbors since they have only 2' /z acres and the neighbors have almost 4 acres, they don't have a view of the lake and the houses are about the same size. She feels her property is worth anything less than the neighbors - $299,000 or less. She had pictures to show the Board of her property. She talked with the Assessor who told her it didn't' matter how many acres you had if you only hAd one building site, how old the home was or if there were lake views. This does not seem fair to her. She noted they are not in an executive neighborhood and have a rental property next door. They bought their lot for $120,000 while the neighboring lot sold for $170,000. Erickson clarified that a comparable is a property that has sold recently, not what another property is valued at. Harren asked that the Assessor look at the home on Watertown Road and Old Crystal Bay Road that was listed at $295,000 with 2.8 acres as a comparable assuming that it sold for less than it was listed for. • MINUTES OF THE BOARD OF REVIEW MEETING • HELD APRIL 26, 1995 Frank and Susan Koubsky. 4784 North Shore Drive 907- 117 -23 32 0012 - 1995 valuation was $94,000. They have been in the house about a year and paid $92,500 because of a bidding war. Previous owners had contested the 1994 valuation and it was reduced to $85,200. This is a small two - bedroom home with a very steep driveway. There is little that could be done to correct the driveway. They feel it is worth $89,000. Chris and Ga!y Valerius 3750 Bayside Road #05- 117 -23 21 0020 - 1995 valuation was $248,300 and the 1994 valuation was $209,000 which is an increase of $39,300. The house was built in 1977 and no improvements have been made except a new garage was added last year for $8,000. They feel the house was poorly built and needs a new roof, new windows, siding and doors. The lot is 50% wetlands and the lakeshore is a wetland. The house was appraised in January for possible refinancing at $212,000. They feel the valuation should be at $212,000 - $215,000. Their lakeshore is a separate parcel that went up in value from $1,100 to $2,000. Phil Byers 3083 Farview Lane 904- 117 -23 33 0005 - 1995 estimated market value of $410,700 and a reasonable number would be $385,700. Dave at the Assessor's office cited two comparables - 3090 Farview Lane sold in 1993 for $457,500 which is newer with a finished basement, paved drive and septic system that is in compliance, and 1895 Fox Ridge Road sold for $459,000 in 1994 but he could not find the property. Byers based his figures on the property at 2920 Fox Street that has • a value of $136,000 for next year which is up 7 %. That is a 7 -acre property, 1/3 of which is unbuildable so he took 4.69 acres with 90% of the value in land that works out to about $19,000 per acre. His second argument is that the unfunded septic mandate should be subtracted from the 1995 estimated value as well as the replacement of his driveway and the adjusted land value. Carl T Johnson. 3105 North Shore Drive #09- 117 -23 32 0016 - 1995 market value is at $527,000 and the 1994 value was at $454,000. This is an increase of $73,000 which seems exorbitant. He has sent a letter to the City offices. He wanted to add that an appropriate value for his home would be $480,000 which was an appraisal value from last November when the home was refinanced. Linda Cummin zs. 1165 Brown Road South #10- 117 -23 24 0020 - 1995 market value was $127,800 and the limited value is at $123,200. The value was at $112,100 in 1994. The home was built in 1900 and is across from the railroad tracks. When she purchased the home 4'h years ago, the value was at $86,100. She paid $113,000 because there was little choice. There hasbeen a progressive 10% increase every year since she bought the house. She doesn't feel property values have actually increased at that rate. The taxes have increased 100 %. Eugene Clark Jr 1955 Heritaize Drive 410- 117 -23 13 0014 - Asked to have his appearance recorded to preserve right to further appeal (to County). 6 40 MINUTES OF THE BOARD OF REVIEW MEETING • HELD APRIL 26, 1995 Mark Finney. 4195 Highwood Road 907- 117 -23 44 0022 - The value in 1993 was $165,000, in 1994 it was $190,000 and in 1995 it is $231,000. Since the house is over 70 years old, he has applied for the "Old Homestead Tax" and Gail, one of the assessors, explained what a good deal he has. He has more than doubled the size of his home with an addition and new basement. Since it is 25% complete, $21,000 has been added to the value. The building permit was taken out in 1991 for $92,000 for the addition. He is trying to slow down the increase of value since he does not feel he will be able to stay there if the valuation is too high when the addition is completed. He feels a fair value would be $200,000. Erickson explained that they have to put a value on the increase for the addition even though it is not separate from the old house. The law also limits the increase in size of the home to 50% for a credit. For 10 years the amount of the improvement on the property is subtracted from the value of the complete house. For the next 5 years, 20% of the improvement is added back into the taxes. Clair Rood 3280 Navarre Lane 17- 117 -23 44 0105 - 1995 value is about $440,000. This is a new spec home that he has been unable to sell. It is a 2500 s.f. rambler with poor properties around it. He is concerned about the non - homestead tax for the next year. He paid $17,500 for the lot. It was on the market for $475,000. James Olson 4360 Bayside Road 906- 117 -23 12 0001_ - 1995 value was $162,800 and the 1994 is value was $150,000. He has owned the property for 9 years and the estimated market value has increased 38% in that time. He has 3.6 acres and the surrounding area is a 5 acre zoning district. Two years ago they refinanced and the appraised value was $147,000. He feels $158,000 would be more fair. He noted neighboring properties were not selling. He tried selling about 5 years ago and was unable to sell. Mayor Callahan commented that the valuations were too high and disagreed with the mass appraisal approach. Erickson responded that in Orono they have been trying to identify the properties that are not in line with the ratios. This year the properties in the $200,000 - $400,000 range were a problem because they were lower in assessment ratios than the more expensive or cheaper properties. He has been trying to keep the cheaper houses from going up 8% because they are closer to the market value already. The County does a random check on sales of properties and then checks the whole property type. If they are not in compliance, the County will raise the whole property type. Mayor Callahan did not feel houses going up $50,000 - $60,000 in one year was realistic. Jabbour felt that if the assessed values were pushed up, sales will also increase. Erickson added that in the County's market stratification, the mean for homes under $100,000 is 100 %, $100,000 4200,000 is 95 %, $200,000 - $300,000 is 92 %, $300,0004400,000 is 95 %, $400,000 4500,000 is 93% and $500,000+ is 91 %. Erickson stated that in two lakeshore sales that have occurred since the new assessment, one sold for less than the market value and one sold for 1% over - nothing else has sold for less than the Assessor's market value. • 7 MINUTES OF THE BOARD OF REVIEW MEETING HELD APRIL 26, 1995 i The Reconvened Board of Review will meet on May 11, 1995 at 7:00 p.m. as the Board must meet within 20 calendar days. Written Appeals Submitted: Clark Winslow, 1595 Bohn's Point Road, 908- 117 -23 44 0015 Clark Winslow, 1625 Bohn's Point Road, 917- 117 -23 11 0003 C. L. Johnson, 2024 Shadywood Road, #17- 117 -23 310011 Charles Hulse, 95 Ferndale Green, 936- 118 -23 44 0010 William H. Nicholls, 2700 Shadywood Road, #21- 117 -23 24 0031 Maryanne Ebert, 1680 North Farm Road, #27- 118 -23 44 0010 Willard C. Shull, 1125 Spring Hill Road, #26- 118 -23 43 0004 Dennis G. Esterly, 4765 Watertown Road, #31- 118 -23 22 0002 Julian Hook, 2650 Kelly Avenue, #20- 117 -23 14 0005 Henk Boon, Jr., 4045 Bayside Road, #06- 117 -23 14 0022 Susanne & John Koob, 3065 Jamestown Road, #28- 118 -23 33 0008 Darrell & Judy Plucker, 2640 Fox Street, #04- 117 -23 42 0008 Ward E. Edwards, 2474 Carman Street, #20- 117 -23 12 0027 Betty Hartnett, 4201 North Shore Drive, 907- 117 -23 43 0007 • Carol G. Callahan, 2545 North Shore Drive, #09- 117 -23 41 0003 Christopher & Claudia Engeler, 790 North Arm Drive, #06- 117 -23 44 0001 Residents Who Did Not Appear Before Council But Requested Property Review: Harriet Morgart, 1003 Wildhurst Trail, #07- 117 -23 210016 Paul Vitko, 80 Cygnet Place, #04- 117 -23 22 0017 Stephanie Yule, 3477 Crystal Place, #17- 117 -23 43 0010 Frank & Kathy St. Lawrence, 253 Cygnet Place, #04- 117 -23 23 0012 Dean Greimann, 3779 Casco Avenue, #20 -11723 31 0066 Jeanne Cashmore, 2075 Webber Hills Road, #03- 117 -23 34 0025 Tom Walters, 625 Deborah Drive, #31- 118 -23 23 0003 Charles Affias, 1404 Baldur Park Road, #08- 117 -23 34 0018 Charles Schroeder, 1925 West Farm Road, 927- 118 -23 43 0014 Shirley Rezabek, 4185 Bayside Road, #06- 117 -23 14 0012 Ed Garlock, 1179 Elmwood Avenue, 907- 117 -23 14 0030 Anne Bendt, 1120 Tonkawa Road, #08- 117 -23 13 0009 David N. Stubbs, 3965 Watertown Road, 932- 118 -23 32 0003 Don Jaynes, 140 Leaf Street, 404- 117 -23 22 0006 David L. Verville, 4209 North Shore Drive, #07- 117 -23 43 0005 Kirt Woodhouse, 2625 North Shore Drive, 907- 117 -23 42 0003 Gedney Tuttle, 1225 Shoreline Drive, #02- 117 -23 34 0002 8 0 MINUTES OF THE BOARD OF REVIEW MEETING • HELD APRIL 26, 1995 Residents Who Did Not Appear Before Council But Requested Property Review (continued): Larry Grabill, 1350 Rest Point Lane, #07- 117 -23 32 0039 James Olson, 4360 Bayside Road, #06- 117 -23 12 0001 Pat Walsh, 1396 Rest Point Rd, #07- 117 -23 33 0005 Richard Edwards, 2480 Carman Street, #20- 117 -23 12 0028 ADJOURNMENT The Board of Review adjourned at 9:43 p.m. Edward J. Callahan, Jr ,' ayor ATTEST: • Dorothy . H llin, City Clerk