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HomeMy WebLinkAbout05-09-1994 Board of Review Reconvened Minutesi MINUTES OF THE RECONVENED BOARD OF REVIEW MEETING • HELD MAY 9, 1994 ROLL The Board of Review met on the above date with the following members present: Mayor Edward Callahan, Councilmembers J. Diann Goetten, Charles Kelley and JoEllen Hurr. The following represented City staff: City Administrator Ron Moorse, City Assessors Rolf Erickson and Dave Wilde, and City Recorder Lin Vee. Mayor Callahan called the meeting to order at 7:02 p.m. Mayor Callahan explained that the City Assessors have contacted the 51 property owners who had asked for reconsideration of their 1995 property valuations. Discussion will proceed as the property owners had signed in and then any properties the Council wishes to further discuss will be added. Charles Percival. 2732 Caroline Avenue 20- 117 -23 24 0041. Mayor Callahan noted the Assessor's recommendation had been reduced by $30,000 with much of the adjustment related to the building. Percival still does not feel he is being equitably assessed compared to the adjacent homes. The land values are reasonable for all four adjacent properties but the building values range from $78 /s.f. to $118 /s.f. He believed the Smith house on Casco, which the Assessor felt was comparable, was valued at $105 /s.f. Erickson commented that there are many variables that determine the cost per square foot, including finished basements, fireplaces, • bathrooms, garages and quality of the house. Looking at the gross living area is not a comparable value. Percival would be willing to accept the value of $105 /s.f. which is supposed to be the highest quality of the Casco Point home yet his home is valued at $118 /s.f. Erickson stated Percival's house was a better quality home than the Smith home and the value calculated out to $110 /s.f. Valuations are based on comparable sales, not comparable neighboring homes. It was moved by Hurr, seconded by Goetten, to continue with the reduced recommendation of the Assessor at $666,700. Ayes 4, nays 0. Harvey Reder. 3598 Livingston Avenue 17- 117 -23 43 0034, commented on three items that may not have been considered by the Assessors: 1) Zoning district is 1/2 acre and his property is less than 1/2 acre; 2) No heat to the top floor; 3) In the west side yard, the structure is too close to Blaine Avenue which is a problem under new code. He felt the valuation to be about 10 % too high. He wished he had appealed last year's valuation as he felt that was too high even though there was little change for the 1995 valuation. Erickson stated that the off -lake property type increased 1.4% as a whole. The overall lakeshore class increased 8.6 %. Reder's property was actually valued $100 less than the 1994 valuation. It was moved by Goetten, seconded by Kelley, to use the Assessor's recommended value of $65,000. Ayes 4, nays 0. • 1 MINUTES OF THE RECONVENED BOARD OF REVIEW MEETING • HELD MAY 9, 1994 John C Ericson 1620 Shadywood Road 17- 117 -23 21 0012, stated he received a letter from the Assessor recommending no change from the valuation of $261,000. He felt the land value went up too much at $21,000 and thought 3 -4% was adequate. Erickson stated the increase was about the same as other similar properties adding that some were adjusted closer to the channel. Kelley asked how the Assessor arrived at an 11 % average increase. Erickson replied that the buildings were calculated with the new rates. In order to bring the property class up to the 93 % Hennepin County minimum, an increase of 7 % + would be required. Properties are then reviewed by bays, value increments, etc. It was determined that the higher priced houses probably were 10% low. Few of the higher priced homes sold so the class was raised across - the - board. For example, on Park Drive a home sold for $292,000 in September of 1992 and again in February of 1994 for $335,000. Ericson stated that he wanted to rebuild 6 -7 years ago and was turned down by Council. He then did some remodeling for which he was assessed. He thought the off -lake properties should be assessed more rather that having 8 -9 % for lakeshore vs. 1.4 % for non - lakeshore. Erickson responded that there were years in the early 1980's where lakeshore properties were low. It was moved by Hurr, seconded by Kelley, to approve the recommendation of the Assessor at $261,000. Ayes 4, nays 0. Delores Petti iece 3540 North Shore Drive 08- 117 -23 43 0011, stated the increase from • $81,000 to $95,000 in three years was too great. She noted the house was small and an unusual shape. There is a road that crosses between the house and the lake. Oldtimers knew that properties like this did not pay the same high taxes as those directly on the lake. Mayor Callahan noted the increase was due to the land as in other properties. Hun added the building value actually decreased. Kelley thought a 50' lot with a road in front could be lowered to the 1994 valuation. It was moved by Callahan, seconded by Goetten, to accept the recommendation of the Assessor at $95,000. Ayes 4, nays 0. David Verville 4209 North Shore Drive 07- 117 -23 43 0005, stated his valuation went up $10,000 which is a 7.5 % increase and he thought that was too much for one year. He felt a 4 % increase was enough for one year. Mayor Callahan stated that as long as the general increase falls within the range of the average, the Assessor's recommendation should be equitable. Verville stated that houses across the street from his (non - lakeshore) did not sell for more than they did in 1986. He felt the lakeshore properties always received the largest and first increases. Erickson indicated the 1984 valuation was $121,000 on this property but went down to $110,000 in 1985. Two years later the valuations were raised again but this followed the real estate market. He stated that one way to approach the property increases is to talk to state legislators. It was moved by Mayor Callahan, seconded by Hun, to accept the recommendation of the City • Assessor at $144,000. Ayes 4, nays 0. 2 MINUTES OF THE RECONVENED BOARD OF REVIEW MEETING • HELD MAY 9, 1994 Eugene C Clark 1955 Heritage Drive 10- 117 -23 13 0014, stated there was a tendency by all elected officials to point fingers up and down but wanted the local government to be aware that it starts here. He explained that his lot was 1 of 15 in the Fox Hill subdivision. Two lots of the 15 have not been built on and have a valuation of $34,700. His land, which is about the same size as the other lots at 2.5 acres, is valued at $62,000. He felt this was a direct measure of the undeveloped land to the developed properties. Two pieces of property in the subdivision were of less value than the others. One of those pieces is the Clark property and was valued lower because of the railroad tracks. These two properties both have similar, inexpensive homes which are on a slab with no basement, single -story and a four -car detached garage with the house footprint at 1665 s.f. The other home had an expansion of a few hundred square feet and sold in October of 1993 for $137,000 after being on the market for 2 -3 years. The Assessor wants to keep the valuation at $137,000. Clark feels if comparable sales are used, their home should be valued in the $120,000 range. Kelley asked if the comparable home had a pool. Clark responded it did not. Erickson noted the comparable home was a bank foreclosure. He added that the comparable home the Assessor used was at 945 Forest Arms Lane with 1188 s.f., basement and 2 -car garage with access to the bay that sold for $135,000 in August of 1993. That house was not as good as the Clark home. Clark chose not to appeal the 1994 valuation but he felt that was too high also. He felt the Council should look at the house which sold in his neighborhood that is directly comparable to his. The Assessor commented that they do not use foreclosure sales for comparables. Kelley asked about the pool. Clark responded it was is acquired with the home but thought it was installed in 1976 at 20' x 40'. He added that he would be more inclined to take the pool out rather than put another one in. Clark added that Fox Hill has an outlot of 300' of shoreline that is a separate parcel considered lake access. The Homeowners' Association divides up the taxes on that parcel. Callahan thought it would still add value to the property at 1955 Heritage Drive. It was moved by Mayor Callahan, seconded by Hun, to accept the Assessor's recommendation of $137,000. Ayes 4, nays 0. Nancy Moe 1230 Spruce Place 08- 117 -23 32 006 and 1220 Loma Linda Avenue, 08- 117 -23 32 0005, was disappointed the valuations did not change. Hurr stated it was difficult to see why the value of the cabin on Loma Linda increased by almost $14,000 when comparing it to the Bockmann house that is a year -round home valued at $35,000. Rolf responded that the value had been frozen but since there was some utility as a cabin there was some value to the cabin. Since it is a 75' lot, the land value was appropriate. Moe commented that the cabin was nothing more than a glorified tent. Mayor Callahan stated there was a sharp increase in the building value as well as a 10% increase in the land value. Hurr did not object to the land increase but felt the doubled value on the building was questionable. It was moved by Hurr, seconded by Goetten, to accept the valuation of 1230 Spruce Place at $74,000 and to reduce the value of the building on 1220 Loma Linda Avenue to $18,000. Ayes IS 4, nays 0. 3 MINUTES OF THE RECONVENED BOARD OF REVIEW MEETING • HELD MAY 9, 1994 Willard Shull 1125 Spring Hill Road 26- 118 -23 42 0004, stated he had sent a letter to Rolf Erickson. He did not feel there were any comparable sales in Orono for his property. Erickson had done a full appraisal two years ago. There is a conservation easement on the property which Erickson took into consideration or the value would have been higher. Shull thought his valuation should stay at $478,000, the 1994 valuation. Hurr explained that only 1/4 of the City is actually visited each year even though values increase throughout the City. Shull has 7 acres. He did not feel there should be any escalation of values due to the alternate routes being considered for Highway 12 near his property. Mayor Callahan did not think the increase was excessive in relation to other increases in the City. It was moved by Mayor Callahan, seconded by Kelley, to accept the recommendation of the Assessor at $504,500. Ayes 4, nays 0. Mayor Callahan asked if there were any property valuations Councilmembers wished to discuss that were included in the Assessor's Recommendation Booklet but owners were not present to discuss. Hurr stated she would not support a reduction in the value of North Shore Drive Marina (Page #18) 3222-3250 North Shore Drive 08- 117 -23 41 0004, 0005, 0006, from $509,300 just is because there was a change of ownership. It was moved by Hurr, seconded by Kelley, to leave the valuation at $509,300 since that was the price that was paid for recent acquisition. Ayes 4, nays 0. Erickson stated there was confusion about the valuation on this because one owner indicated there was no different kind of development to be considered for this property. However, it now seems there may be a possible change. Since this is near the edge of a residential zone, it is possible it may be used more beneficially in another way and Erickson would agree with leaving the valuation at $509,300. The property consists of three parcels at approximately four acres. Goetten asked to further discuss Page 5, Walter Wolfe 1250 Spruce Place 08- 117 -23 32 0008. She referred to Wolfe's discussion of needed repairs at the May 9 Board of Review and asked if Mr. Wolfe's statements were correct. Gail Navratil noted there was some updating of the home but Erickson was unsure as to what other improvements would be needed. Goetten also questioned Page #42, Albert Hanser, 1685 Fox Street, 03- 117 -23 44 0004. She noted the valuation doubled and asked about the reasons. Hurr added that the recommendation actually was reduced by $55,000. Erickson stated the quality of the house was a factor since they had not been in the residence prior to the appeal. It was moved by Mayor Callahan, seconded by Hurr, to accept the recommendation of the is Assessor on all properties not previously addressed. Ayes 4, nays 0. MINUTES OF THE RECONVENED BOARD OF REVIEW MEETING 0 HELD MAY 9, 1994 Mayor Callahan indicated that anyone who appealed to the City and was not satisfied with the decision of the Board of Review could appeal to the Hennepin County Board of Review. Those owners who did not appeal to the City still have the right to a court appeal. There were three letters received after the April 28, 1994 deadline. Erickson stated that if they received calls April 28 or the following day because of the weather, they could be added to the list of appeals with Council approval. Allan Klotsche 2760 Shadywood Road, 21- 117 -23 24 0040, submitted documentation that showed his purchase price was $275,000 while the market value was at $297,000. It was moved by Mayor Callahan, seconded by Kelley, to reduce the valuation for Allan Klotsche to $275,000. Hurr amended the motion to include the condition that if the sale was not an arm's length transaction, the value should remain at the Assessor's recommendation of $297,000. Ayes 4, nays 0. Anthony R Soderman 975 Wildhurst Trail, 07- 117 -23 12 0002, submitted a written request to preserve his right to appeal and asked the Assessor to look at his property at a later date. It was moved by Mayor Callahan, seconded by Hurr, to accept the recommendation of the • Assessor at $179,000. Ayes 4, nays 0. n LJ Richard Olson 3115 North Shore Drive, 09- 117 -23 32 0013, called the Assessor requesting his right to appeal to Hennepin County because he was unable to attend the meeting because of the weather. It was moved by Mayor Callahan, seconded by Kelley, to accept the recommendation of the Assessor. Ayes 4, nays 0. Mayor Callahan suggested to Erickson that whoever has the final contact with the property owner be present at the Board of Review meetings for questions. He also asked for documentation on the properties under discussion from the first Board of Review to be present at the Reconvened Board of Review. Adjournment It was moved by Mayor Callahan, seconded by Goetten, to adjourn the Reconvened Board of Review at 8:35 p.m. 1 ,/ Edward J. Callahan Jr. Mayor