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HomeMy WebLinkAbout04-28-1994 Board of Review MinutesMINUTES OF THE BOARD OF REVIEW MEETING • HELD APRIL 28, 1994 ROLL The Board of Review met on the above date with the following members present: Mayor Edward Callahan, Councilmembers J. Diann Goetten, Gabriel Jabbour, Charles Kelley and JoEllen Huff. The following represented the City staff: City Administrator Ron Moorse, City Assessors Rolf Erickson, Dave Wilde, Lisa Mott and Gayle Navratil, County Assessor Bill Effertz and City Recorder Lin Vee. Mayor Callahan called the meeting to order at 7:05 p.m. Erickson reviewed the procedures for establishing the 1994 market value to be used for taxes payable in 1995. Properties that sold in Orono are compared to characteristics of other properties in Hennepin County and rate tables are used to determine a statutory assessment that works. There were some major changes in lakeshore properties with the average increase of approximately 8 %. Sales books were available to Councilmembers for making comparisons. The Board will reconvene at a later date to hear the results. Erickson requested property owners to sign up for appointments to review individual properties. He noted that the lower priced homes had considerable appreciation in sales /resales and higher priced homes were on the tax books at a lower rate than they should have been. Mayor Callahan noted that owners who did not give notice of their intention to appeal the property value by tonight's meeting lost the right to an administrative appeal to the County but • not a Court appeal. He added that the Board has the right to lower the total valuation in the City by only 1 %. Individual home valuations can be changed by various percentages but overall they cannot exceed 1 % of the City's total valuation. Hennepin County averages all the cities in Hennepin County to determine if the valuations in Orono are proper. He indicated that anyone who wanted to leave their name to set up individual appointments with the Assessor could leave the meeting. The Board will listen to each individual owner who wishes to present their case but no decisions will be made at this meeting. Owners will be heard in the order in which they signed in. They should state their name, address, property identification number, 1994 valuation and what they believe their property is worth. Norma Jean Dickey, 4425 North Shore Drive, #07- 117 -23 34 0003, 1992 valuation at $164,000, 1993 valuation at $190,000, 1994 valuation at $205,000. There is 50' of lakeshore but she does not feel it is worth $205,000. An appraisal was done in 1990 for a possible sale at $150,000. This property was not in the quadrant of the City that was actually visited this year. Ernest Blanchard 2585 Dunwoody Avenue #20- 117 -23 21 0032, 1994 market value is $302,000, 1993 value at $280,900 and 1992 value at $256,000. He noted the north end of Dunwoody has several properties in very poor condition. He believes $250,000 would be appropriate. The value has changed by $45,000 in the last two years which seems excessive when there have been no improvements. The taxes have gone from $2,000 when purchased to $6,000 and the market value has gone up six times. This seems exorbitant when he is retired. Mayor Callahan suggested Mr. Blanchard make an appointment to have the Assessor visit his • property so he can show the Assessor the condition of his home and give reasons why he feels the valuation is too high. 1 MINUTES OF THE BOARD OF REVIEW MEETING HELD APRIL 28, 1994 • Warren Bielke 2565 Dunwoody Avenue #20- 117 -23 210031, 1994 assessed value is $701,000. Bielke distributed a handout of the property history noting the assessed value has increased $248,200 or 55% while the market value only increased by 39 %. After remodeling two years ago, Bielke purchased the property for $800,000. Mayor Callahan noted that the assessed value is 88 % of the market value while the average is 93 %. Erickson explained that the values they use are not determined by the sale price. Bielke stated there were no other properties in the neighborhood worth $800,000. It was worth it to them because they wanted to stay in the neighborhood. Kelley noted that Bielke was a willing buyer at $800,000 and he would find it difficult to lower the value below $701,000 and thought Bielke was fortunate that he was not at the 93 % level. The size and quality of this home may be the reason it is valued lower than the 93 %. Jabbour asked at what point the State would step in for a mass increase. Erickson responded it was a complicated procedure. If Orono was at 85 %, the State would increase across the board by 10% because they only increase by 5% or 10%. Erickson also stated that Tom Haller, one of the appraisers working for Erickson, had appraised this house for the previous owner while working for Forsythe Appraisals so he is very familiar with the property. John C Ericson 1620 Shadywood Road #17- 117 -23 210012 , 1994 market value is $261,000 and 1993 market value was $240,000. He did not feel it necessary for the Assessor to visit the property because nothing has changed except the paint in the kitchen. He requested the closing of the landing on his property or felt a 3 % increase from last year was reasonable. Walter Wolfe 1250 Spruce Place #08- 117 -23 32 0008, 1994 market value of $152,600. He • felt there were major improvements required to make the house saleable such as rafters (40% of roof needs replacement), 40% of the basement floor needs to be removed and replaced and 40 % of the west wall of the basement needs to be rebuilt. He has 49' of lakeshore on the west side of North Arm and has lived there 40 years. Mayor Callahan thought that the basic value may be in the land. Curt Quady, 1223 South Brown Road #10- 117 -23 310065,' 1994 market value of $90,000 and 1993 value of $82,800. He felt his market value was at 100%. He asked if it would be possible to have a $4,000 increase in valuation this year and $3,200 next year. He felt the value was fair but wanted to "ease into" the value over the next few years, similar to a step increase. Erickson explained that the State sets a limited value at 10% so the property owner would not pay taxes on a value that exceeded 10% from the previous year. Elmer Conover. 1489 Shoreline Drive, 11- 117 -23 23 0009, distributed a letter to the Board stating his reasons for appealing the market value. Mayor Callahan stated the Board would consider the information before the next meeting. Christa Nejezchleba 2625 Kelly Avenue #20- 177 -23 14 0026, asked what could be done about the trees dying on Kelly Avenue because it is always under water and if it would be possible to install a light because a lot of garbage is dumped in the wetlands. Mayor Callahan suggested she call the City Administrator to discuss these issues. She felt the 1994 market value of • $546,000 was too high because this is an old house but she did not know what the property would be worth. 2 MINUTES OF THE BOARD OF REVIEW MEETING • HELD APRIL 28, 1994 Carol Burgess 2800 Pheasant Road #21- 117 -23 32 0004, 1994 limited valuation at $552,000 and 1993 valuation at $502,000. The property was bought in 1967 for $50,000. From 1992- 1993 there was a 1.7% increase in assessed valuation, 1993 -1994 was 2.8% and 1994 -1995 was 9.8 % or $49,200. She noted this was an unusual piece of property because it is really two pieces of property with a long peninsula consisting of almost 1,500' of shoreline. When they bought this property, the Hennepin County Assessor stated the excessive footage of shoreline on the extra lot would not impact the taxes because the extra lot was a non - buildable lot. She felt this has changed over the years with too much emphasis placed on the number of feet of shoreline. In a hardcover survey done for a recent variance, only 1/4 of the lot would be considered buildable. This house has already reached the limitations of the property so no further building would be allowed. She checked with Jack Shannon, a local realtor, who stated that generally the land and buildings are each valued at approximately 50% of the total. On this property, the house is valued at $182,000 and the lot at $370,000. Shannon compared her property to a similar property on Hardscrabble Point that had been on the market for almost four years and had not sold because there could be no further building on it. He indicated the value was being reduced by $150,000 because the property could not be sold. Burgess felt her property would sell for $450,000 - $500,000. Erickson commented that front footage is used as a guideline but generally lots with more exposure are considered to be more valuable. He considered this a mid -range value on Lake • Minnetonka. Low values would be $100,000 - $150,000 with high values at $800,000 - $900,000. Burgess reiterated there was too much weight placed on the lakeshore for this particular lot. This is approximately a 2 -1/2 acre property. She noted the 36% hardcover that was determined for the variance was on 1/4 of the lot. There would be 19% hardcover if the point could be included. Hurr asked what the dollar amount would be on lakeshore footage. Erickson responded that it runs from $1,000 per foot on a cove up to $5,000 per foot in the Minnetonka Beach area. He added that on the Burgess lot they are not counting front footage. Burgess agreed with that but still felt there was too much weight placed on the shoreline footage. Dr Moe 1220 Loma Linda Avenue 08- 117 -23 32 0005 and 1230 Spruce Place 08- 117 -23.32 0006, are both seasonal recreational properties with about a 15' easement between them. 1220 Loma Linda Avenue is valued at $104,000 with 75' of lakeshore for 1995 and 1230 Spruce Place is valued at $74,000 with 60' of lakeshore. Kelley asked if the lots were buildable. Dr. Moe replied that 1230 Spruce Place is not buildable. A sewer unit has been assessed for each property. Councilmembers felt they would both probably be considered buildable lots. Dr. Moe felt the properties were worth approximately $1,000 per foot of shoreline. The drainage easement with a natural creek would not allow the properties to be combined into one buildable lot. 1220 Loma Linda has no heat or basement 1230 Spruce Place is suspended on cedar posts • with no running water. Dr. Moe felt 1220 Loma Linda Avenue was worth about $75,000 and 1230 Spruce Place about $60,000. Erickson explained that lakeshore lots start at about $50,000 .c7 MINUTES OF THE BOARD OF REVIEW MEETING HELD APRIL 28, 1994 • in Orono with the land values being high. Increases have been 37 % and 30 % over the last two years. Erickson explained that seasonal dwellings are not included in the 10% cap and properties are valued on the highest and best use. Charles Percival 2732 Caroline Avenue, 20- 117 -23 24 0041, valued at $696,000 for 1995. The home is new construction and they moved in on February 14,1992. The valuation for 1993 was $584,100 and for 1994 was $661,000 which was a 13 % increase. He questioned this increase and the Assessor responded it was based on the number purchases in the area. The total increase over two years is 19% or $112,000. Kelley asked if this property was lakeshore and the cost for building. Percival responded that it was lakeshore and was difficult to estimate the exact cost of the home but the total cost was in the $600,000 range. He took over the responsibility as contractor to complete the building of the new home after the death of his brother. They are located on Carman's Bay with houses slow to sell in this neighborhood. Percival did not think the valuation reflected the area they were in. He gave comparable information on four other homes in the neighborhood. The property at 3650 Casco was assessed at its level because the appraiser stated it had the highest level of grade. Percival felt his home would more appropriately be valued at $616,000. They did not appeal last year but he has done more data comparing with four neighboring homes. He based his valuation on $105 per square foot. Lloyd Nehring 1972 Shadywood Road 17- 117 -23 24 0025 $98,000 market value for 1995. is He felt the value was rising too fast and the property was worth about $85,800. There is 50' of lakefront. The 1993 valuation was $85,800 and the 1994 valuation was $93,000. Callahan noted that the Shadywood area was looked at by the Assessor for the 1994 valuations. Last year there was a sharp increase in many sales values. Nehring stated he bought the property in 1959 and is just a cottage with no basement or frost footings. The cottage itself if in poor condition. Callahan noted the land values keep going up. Nehring showed pictures of a home worth $130,000 and he did not feel his home was comparable for only $30,000 more in value. Erickson stated the land was valued at $67,000 and the building at $31,000. He added that the channel makes this a unique property and he will review this property again. Joan Carlson 2080 Shadywood Road 17- 117 -23 310016, 1995 valuation at $295,000. She felt the value was rising too fast and did not know what the value should be. She added that the real estate people were the ones getting the benefit. She has lived on this property for 34 years with 110' of lakefront on Crystal Bay. The house is 1500 s.f. which is not a big house. The 1994 value was reduced to $275,000 but increased again this year. Her taxes went up 16% so she needs to submit tax forms for a refund. Callahan noted that last year many homes were reduced in the Crystal Bay area. Hurr asked Erickson for clarification of the limited market value and the 10% increase. Erickson stated the 10% increase is based on the 1994 limited value to the 1995 market value and was possible to never catch up. 4 • MINUTES OF THE BOARD OF REVIEW MEETING • HELD APRIL 28, 1994 William A Bockmann 1130 Loma Linda Avenue, 08- 117 -23 23 0012, valuation at $148,000. He felt $134,000 - $136,000 would be an appropriate value because of extensive flooding at times in the basement. The 1994 valuation was $135,300 which is an increase of $12,700. There is 95' of shoreline on North Arm. Bockmann presented information on comparable homes and will bring copies to the Assessor and Council for their reference and analysis. Richard Cherba 1340 Vine Place 07- 117 -23 42 0031, 1995 valuation at $308,000. Cherba asked if non - lakeshore properties were also increased. Erickson replied that there were increases but not as much as the lakeshore properties. Cherba's 1994 valuation was $289,500 which is an increase of $30,000 over two years. He reiterated that the rate and percentage of increase was his concern as with other residents. The increase is too much too fast. He felt $294,000 was an appropriate value. He has 207' of lakeshore on Forest Lake. On the north end of Forest lake there is a home valued at $1.7 million which will raise property values in neighboring homes. Erickson stated the average increase for non - lakeshore properties was 1.4 %. Properties in the Casco Point and Navarre areas that are off the lake are near 100% valuations. The lakeshore properties did not all get the same increase, some were higher than 8% while others were lower. Cherba noted they had not done any major improvements yet their values increased. Erickson gave examples of recent sales at 1565 Park Drive. In September of 1992, this property sold for $292,000 with 100' of lakeshore and 1900 s.f. home. This property sold again in February of 1994 for $335,000 with no improvements which is a 15 % increase in 18 • months. This trend was similar in other properties in Orono. _Mr. and Mrs Larry Whalen 2435 Scotch Pine Lane. 09- 117 -23 44 0006, 1995 market value at $422,000 which is up $34,500 from 1994 valuation and $43,000 over the last two years. Their property is on a cul -de -sac with a major wetland between the house and lakeshore making the front yard relatively unusable which does not make this an extremely desirable property. They felt their 19 year old home was worth about $400,000. The value has increased from $379,000 to $387,500 to $422,000. This is a little over 2% and then 9 %. Comparables may be helpful and they should be brought to the City Assessor. Erickson commented that appraisals for refinancing recently were performed by appraisers who were not familiar with working in the Orono area and this is a tough area to appraise. Jo Ellen Hurr, 930 Partenwood Road, 08- 117 -23 210007, commented that her valuation went up $104,000 over the last two years. They have a new roof and paint but no other major improvements. She might add her name to the list of properties for the Assessor to review. Kelley noted there were no complaints from the quadrant that was appraised this year. Hurr asked how the Ulrich home was handled when it sold for less than it was valued at. Erickson responded the property was listed as exempt so there was not a problem. It sold for $1,765,000. The Ulrich's had it valued at $6.2 million and was lowered to $2.6 million. When the house was sold and analyzed, there was 6,000 s.f. of swimming pool, 9,000 s.f. of house is on the main floor with three sequential vaults and 13 furnaces. 5 i MINUTES OF THE BOARD OF REVIEW MEETING HELD APRIL 28, 1994 • Erickson requested that the next hearing be held prior to the Council meeting on May 9, 1994 at 7:00 p.m. He stated that his office would send out notices prior to the meeting with their recommendation and the time of the Reconvened Board of Review stating they would not have to attend that meeting if they were in agreement with the new recommendation. Members agreed that it would be acceptable to have the Assessor send out letters. Hurr will be late and Jabbour will not be at the meeting of May 9. Erickson noted the meeting must be held within 20 days. Residents Who Appeared at the Meeting but Did Not Speak: Gary Welsh, 1214 Wildhurst Trail, 07- 117 -23 31 0036 Lloyd and Ellie Fairbanks, 95 Willow Drive North, 33 -11823 44 0020 Robert H. Cavan, 999 Wildhurst Trail, 07- 117 -23 21 0005 Walter Pemberton, 1720 Shadywood Road, 17- 117 -23 21 0019 Ted Chalupsky, 2530 Casco Point Road, 20- 117 -23 21 0014 John Prueter (North Shore Drive Marina), 3220 North Shore Drive, 08- 117 -23 410004 Paul E. Taylor, 3883 Cherry Avenue, 08- 117 -23 33 0087 Richard Kroeger, 65 Stubbs Bay Road North, 32- 118 -23 34 0004 David Christensen, 330 Tonka Avenue, 05- 117 -23 14 0040 Ken Hickey, 4640 Tonkaview Lane, 07- 117 -23 32 0043 Herb DeVaan, 4166 Highwood Road, 07- 117 -23 44 0027 • Thomas B. Swanson, 1740 Shadywood Road, 08- 117 -23 21 0007 Written Appeals Submitted: Delores M. Pettipiece, 3540 North Shore Drive, 08- 117 -23 43 0011 Margaret Davis, 1345 Vine Road, 07- 117 -23 42 0004 Florence Hagberg, 740 North Arm Drive, 06- 117 -23 43 0006 William Nicholls, 2700 Shadywood Road, 21- 117 -23 24 0031 Eric H. Paulson, 2605 Maple Ridge Lane, 21- 117 -23 21 0005 Kathryn A. Anderson, 398 Leaf Street, 04- 117 -23 23 0007 W. C. Shull, 1125 Spring Hill Road, 26- 118 -23 43 0004 Ward E. Edwards, 2474 Carman Street, 20- 117 -23 12 0027 Mrs. Harold Diesen, 1100 Townline Road, 30- 118 -23 32 0003 C.L. Johnson & Pam Willette, 2024 Shadywood Road, 17- 117 -23 31 0011 Ronald & Leslie Ezerski, 2715 Pence Lane, 21- 117 -23 32 0007 Lawrence Langhans, 1366 Rest Point Road, 07- 117 -23 32 0060 Eugene & Sharon Clark, Jr., 1955 Heritage Drive, 10- 117 -23 13 0014 Albert & Sally Hanser, 1685 Fox Street, 03- 117 -23 44 0004 R. Scott Vickerman, 2685 Rainey Road, 04- 117 -23 43 0013 Ronald B. Sheldon, 3225 Bayside Road, 05- 117 -23 41 0017 Elmer S. Conover, 1489 Shoreline Drive, 11- 117 -23 23 0009 (appeared also) Richard Cherba, 1340 Vine Place, 07- 117 -23 42 0031 (appeared also) • 2 MINUTES OF THE BOARD OF REVIEW MEETING • HELD APRIL 28, 1994 • Appeals by Phone Calls: Neva Williams, 2765 Ethel Avenue, 20- 117 -23 24 0018 Harvey Reder, 3596 Livingston Avenue, 17- 117 -23 43 0034 David Verville, 4209 North Shore Drive, 07- 117 -23 43 0005 Henk Boon, 4045 Bayside Road, 06- 117 -23 14 0022 Gregory Gerard, 2610 Mapleridge Lane, 21- 117 -23 21 0009 Thomas Bouchard, 1860 Shoreline Drive, 10- 117 -23 42 0004 John Doleman, 1680 Shadywood Road, 17- 117 -23 21 0016 Adjournment Mayor Callahan adjourned the Board of Review at 9:35 p.m. T: 7 Edward J. Cal an, Jr., Mayor