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HomeMy WebLinkAbout04-29-1993 Board of Review MinutesI\ o �r - , MINUTES OF THE BOARD OF REVIEW MEETING HELD APRIL 29, 1993 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 JoEIIen Hurr. The following represented the City staff: City Administrator Ron Moorse, City Assessors Rolf Erickson, Dave Wilde and Tom Haller, County Assessor Tom Scherer, and City Recorder Teri Naab. Mayor Callahan called the meeting to order at 7:30 P.M. Mayor Callahan read a letter to the Board from Rolf Erickson explaining the process used to determine market value. He requested appellants to state their name, address, property identification number, 1993 market value, and what they believe the property is worth. All appellants were instructed to make an appointment with the Assessor or provide the necessary documentation prior to leaving. Audrey Oqland, 2476 Dunwoody Avenue, #20- 117 -23 21 0004, 1993 value • $101,300 and 1992 value was $92,000. She felt the property has not increased in value since purchased 4 years ago at $87,400, and the only improvements made were to the roof and basement. She added she lives on a private road. Erickson noted that they saw a large increase in demand for lower priced properties, and also the interest rates are lower so more homes are selling. Ogland stated she does not understand why her value should be driven by mortgage rates. She said she would like her home reviewed. Marian Beise, 2437 Dunwoody Avenue, #20- 117 -23 22 0012, 1993 value $177,500, 1992 value $162,700. She stated this is a $14,800 increase in one year. She added the value has increased $155,000 in the last 25 years and they have not improved the property any. She reported she does not have a garage and lives next door to three condemned properties Callahan inquired as to what she thought it is worth. Be i se said that would depend on how much she spent on necessary repairs, but no more than $150,000. Erickson asked the Board if it would be appropriate for appellants 40 to schedule a time to meet with the Assessor and leave the meeting without stating their complaint. 1 MINUTES OF THE BOARD OF REVIEW MEETING HELD APRIL 29, 1993 Callahan stated that would be fine. Mrs. Jester questioned if a second review would be necessary if the Assessor has already reviewed the property. Callahan explained that would not be necessary, but for purposes of preserving their rights, appellants must sign in and /or record their appeal at or by this meeting. Mrs. Jester clarified that the Assessor will review properties deemed appropriate and make a recommendation at the Board's next meeting, but ultimately the Board has the final decision. Callahan concurred. Erickson clarified that they do not use comparables, but rather a mass appraisal system, and they do some comparisons with property sales. He noted there generally is a vast difference between fee appraisals and their market value. Callahan asked him to describe the method used. Erickson explained market values are established at the first of the year. The County will compare market value with selling prices to determine a median, which must be within 93 %. If the overall median is low, the County will increase the entire city's value. He indicated building and land have separate values, and noted areas of the City sell differently and therefore are considered individually. He reported if appellants are unhappy with the results of this Board, they have the right to appeal to the County Board, or can go to Tax Court, but reminded them there is always a chance the value could increase. Mr. Ehramjaim asked if the Assessors take into account the time it takes to sell a property. Erickson said they only consider sales within a certain time period, and se I l i ng time wou I d be considered a small factor figured into the median. Jim Beise, 2435 Dunwoody Avenue, #20- 117 -23 22 0010, 1993 value $94,30, $92 value $91,000. He fdlt the property was worth $82,000. He said the property was appraised prior to purchase at $87,000, but is an old house in need of repair. He added the chimney is deteriorating but cannot be repaired in the existing location as T 1 it does not meet setbacks. • Callahan asked if the house was in this condition when purchased. 'ri n MINUTES OF THE BOARD OF REVIEW MEETING HELD APRIL 29, 1993 Beise said it was, but he assumed he would be allowed to repair it. He said he paid less than $87,000 as he purchased from his grandmother. Greg Gerard, 2610 Mapleridge Lane, #21- 117 -23 21 0009, 1993 value $280,900. He reported he purchased this property in June 1992 for $250,000. He said that the property has less than 50' of Lakeshore frontage, there are a number of easements across the property, and he purchased it after being on the market for over 6 months. He stated he has filed an abatement as well. Callahan asked if he would be satisfied with $250,000. Gerard said he would. All members agreed this would be an appropriate change subject to the appropriate sales documents being shown to the Assessor. John Ericson, 1620 Shadywood Road, #17- 117 -23 21 0012, 1993 value 40 $263,000, 1992 value $234,600. He noted this is a $29,000 increase. He stated every time someone wishes to move out to the lake area, he pays the price. He added he is not allowed to build on the vacant parcel, and lives next to North Arm Landing. He felt a 3% increase would be appropriate. Ken Roelofs, 1650 Shadywood Road, #17- 117 -23 21 0014, 1993 value $267,600, 1992 value $239,800. He stated this is an 11.6% increase, and he has not done any work to the property. He felt a 2 -3% increase would be reasonable. is Callahan noted the adjacent house at 1670 Shadywood Road just sold. Roelof stated it sold for $235,000, and the properties are not substantially different. Callahan questioned the market value of the property. Erickson stated the market value for 1670 Shadywood Road is $204,000, which is a 86% sales ratio. He noted due to the sales ratio, the land values for properties along North Shore Drive were increased appropriately 29 %. 3 11 MINUTES OF THE BOARD OF REVIEW MEETING HELD APRIL 29, 1993 George and Charmoin Grooms 3065 North Shore Drive #09- 117 -23 32 0001, 1993 value $243,300, 1992 value $183,400, which represents a 33% increase. He felt $181,000 would be appropriate. He presented the Board with a letter expressing his reasoning and views. He said the house is 132 years old. He felt the market value should not be determined on the desirability to redevelop the property. He noted he has paid almost two times as much in taxes as what he originally paid for the property. Robert Luesse, 3249 Casco Circle, #20- 117 -23 43 0008, 1993 value $161,100, 1992 value $146,700. He reported during the last 4 years the property has increased 57 %. He felt the value should be $147,000. He presented the Board with a sheet comparing frontage foot values for his and adjacent properties indicating he pays the highest percentage rate and has the least valuable and smallest lot. Callahan felt that was unreasonable and stated the rates should be comparable. Jabbour asked if the calculation is a combination of footage, • acreage and access. Erickson said it was. Luesse noted his property is being valued at almost two times some of the larger lots. He felt having a smaller property was a disadvantage in Orono, and added he was just denied a bedroom addition because of his substandard lot. Callahan questioned why his footage would be more valuable. Erickson explained this sometimes happens with the mass appraisal method. Luesse added if the market value remains for 1993, he would have realized an 80% increase over 5 years. Leon Cohen, representing Lillian Bonander. 3200 North Shore Drive, #08- 117 -23 41 0001, 1993 value $97,000, 1992 value was low $90s. He pointed out much of the property is covered by easements for the lift station. In 1990 the lift'station was redesigned and 6,000' of frontage was acquired for the easement. When the property was purchased it had 30,000 s.f. usable, now there is only 24,000 s.f. The house was built in the 1920s or earlier, and there is a marina nearby. • Jabbour inquired if there is Lakeshore access. 4 • MINUTES OF THE BOARD OF REVIEW MEETING HELD APRIL 29, 1993 Cohen said there is 57', and they allow the adjacent property owners to use the dock. He pointed out the drainage problem created by Bohns Point being at a higher elevation. Callahan asked what he felt the property was worth. Cohen stated he felt it should be $18,000 less. Jabbour questioned the depth of the lot. Cohen replied it is 445' deep. Jabbour pointed out the DNR paid $170,000 for a lot over 100,000 s.f., and felt this property should be reviewed again. Ron and Missy Ezerski, 2715 Pence Lane, #21- 117 -23 32 0007, 1993 value $1,460,000, 1992 value $980,400, which is a 60% increase. Mr. Ezerski stated they purchased the house in 1991 for $875,000 and it was substantially complete inside. He noted the only • comparable property in their neighborhood just sold for $500,000 +, and described other comparables on Fox Street and Bohns Point. He said the adjacent property recently sold for $714,000 and this property is much larger and has an indoor pool and tennis court. Erickson reported the house was unfinished inside when purchased. Ezerskis disagreed. Erickson noted one must also consider quality when looking for comparables. He said they have recently reviewed this property and would submit a report to the Board at the next meeting. He asked the appraised value prior to purchase. Ezerski said it was appraised at $1,400,000. Curt Quady, 1223 South Brown Road, #10- 117 -23 31 0065, 1993 value $91,500, 1992 value $75,300, 1991 value $75,500. He said he has lived there for 40 years and the only improvement has been the sewer installation. He felt the value should be $85,000. James Stockton, 100 Chevy Chase Drive, #36- 118 -23 41 0030, 1993 value $101,800, which is an increase of $7,300. He felt this is very steep. He referred to comparables given to him by the Assessor, and questioned the market value after the sale of • properties. 4 MINUTES OF THE BOARD OF REVIEW MEETING HELD APRIL 29, 1993 Erickson noted in these cases the selling price was not used as the market value. Stockton asked why it is then used to figure market value for his property. He sa i d when one i s on a f i xed i ncome, you shou I d not have to worry about increases as such. He felt a $3,000 increase would be appropriate. Rollie Reinbrenner Dana HaImrast 3287 Casco Circle #20- 117 -23 43 0044, 1993 value $99,400, 1992 value $86,300, which is a 15.2% increase. He noted the property has not been improved except for the roof. He stated many people do not come to this meeting as they feel their valuation may end up higher. Callahan stated that is unfounded and many times appellants are given relief. Hurr questioned the amount of shoreline. Reinbrenner said they do not have any shoreline, and added about four years ago he contacted the Assessor because of an excessive • increase in the value and was told "for crying out loud, look around you ". He felt the value should be $89,000. Jabbour apologized for the comment made by the former Assessor. Jeff Marshall 4784 North Shore Drive, #07- 117 -2.3 32 0012, 1993 value $94,000. He said he should have appeared before them last year when the value exceeded $90,000. He noted a recent appraisal values the property at $88,000, and he felt that a buyer would not pay much more for the property. Hurr noted the cost approach value on this appraisal is $94,300. Erickson explained the cost approach tends to set the upper limit of the property. Vartkes Ehramiiam, 1050 Edaewood Hills Road, #02- 117 -23 13 0003, 1993 value $471,500 which is a 3.5% increase. He questioned the increase as his property was not reviewed by the Assessor. He noted he has experienced a 10% increase in the last two years. He understood that houses in this price range are not selling as quickly as others. He felt the property is worth $420,000 to $425,000. Hurr questioned the size of the lot. • Ehramjiam said it is a one acre lot on a private street. 2 • MINUTES OF THE BOARD OF REVIEW MEETING HELD APRIL 29, 1993 Callahan pointed out valuations are done every year whether or not the property has been visited by the Assessor. Callahan recessed the meeting from 9:25 to 9:35 p.m. David Elmguist, 1930 Shadywood Road, #17- 117 -23 24 0022, 1993 value $168,100, 1992 value $151,300, which reflects a 29% increase. He noted a discrepancy that he has only 100' of lakeshore and the Assessor has 110' recorded for this property. He stated the property is shallow, has a 10' access easement across it, and is located near the channel. He said they have an erosion problem and a noise problem. He felt this lot should be assessed lower than property further from the channel. Erickson noted houses further from the channel are valued higher. Bob HoIthaus, 310 Hollander Road #25- 118 -23 43 0010, 1993 value #269,000, 1992 value #263,000. He said he has had his house for sale at the current value since last June and has not even had an • offer. He felt $250,000 would bean appropriate value. He clarified that his home is a 1 1/2 story cape cod style opposed to a rambler as the Assessor had indicated they have listed on their documents. Erickson noted homes with a second story are generally valued at a higher rate than a single story. • Ernie Blanchard, 2585 Dunwoodv Avenue, #20- 117 -23 21 0032, 1993 value $290,900, 1992 value $256,800, which is a $34,000 increase. He felt the property is worth $250,000 as he has made no improvements. He said in 1979 his value increased $21,000, 1980 was $40,000, and 1981 $50,000. He added the property adjacent was just sold for a $100,000 loss. Dean Mol in, 248 Cygnet Place, #04- 117 -23 23 0017, 1993 value $167,900, 1992 value $157,500. He said he talked to Dave Wilde who indicated the 1993 value should be closer to the 1992 value. Mary Dale and Joe Jester, 2515 North Shore Drive, #09- 117 -23 41 0002, 1993 value 395,700, 1992 value $353,500, which is a 12% increase or $42,200. Realtors have indicated the property is worth $350,000. She noted it is a beautiful lot, but would be very difficult to rebuild a house based on current standards and the current residence is in a tear -down state. They also share a drive and have an old well. VA • MINUTES OF THE BOARD OF REVIEW MEETING HELD APRIL 29, 1993 Henry Radintz 720 Dickey Lake Drive, #34- 118 -23 22 0003, 1993 value $312,100, 1992 value $307,000. He said they purchased the house last year for $297,500, and he would have appealed at that time but they were in the process of moving in. He requested the value be lowered to reflect the purchase price. Steve Wilson 2485 North Shore Drive #09- 117 -23 44 0001, 1993 value $480,300, 1992 value $417,000, which is a 15% increase. He noted the field stone house was built around 1907 and probably would not be economically feasible to tear down. He felt a 6 to 7% increase would be reasonable setting the value at $440,000. Jabbour inquired at what point the land does not drive the combination value. He felt there should be a point at which the value of the land would plato. Erickson stated he does not know when that plato would occur. He pointed out a property (100' wide) on Tonkawa with an older residence sold for $305,000 last year. Jabbour noted he purchased the property across the street with 300' • of lakeshore for less money. Callahan asked Wilson how much lakeshore he has. Wilson guessed around 200', and the entire lot is 2 acres with about three - fourths of it wet. Callahan stated the increase along North Shore Drive was very sharp, and he was not satisfied that the whole process was done correct. Erickson said they have calculated each property along North Shore Drive individually as each are unique. Kathervn Anderson 398 Leaf Street #04- 117 -23 23 0007, 1993 value $89,900, 1992 value $81,700, which is an 11% increase. She said this is a humble two - bedroom residence which she maintains very well, but felt she should not be penalized for doing so. She said she would like a 2 to 3% increase, or none at ail. Charles Schoen, #09- 117 -23 41 0009, 1993 value $128,400, 1992 value $121,000. He said this is a wooded outlot and questioned its buildability with the new shoreland regulations. He felt it should be valued at $100 if deemed unbuildable. Erickson said he would contact staff regarding the buildability. • 8 • MINUTES OF THE BOARD OF REVIEW MEETING HELD APRIL 29, 1993 Jabbour cautioned Schoen not to admit the buiidability of a property without proper documentation. Bob Anderson, 3843 Cherry Avenue, #08- 117 -23 33 0040, 1993 value $62,200, 1992 value $57,200, 1991 value $55,600. He said he has just acquired the home, but his parents owned it for 40 years, of which the last 15 years it was not properly maintained. He noted it has water problems, no running water, and is located next to a wetland. He indicated the wetlands has been used for dumping in the past by ad j acent ne i ghbors, and on very warm days one can sme I I the oil that has been deposited. He felt it was worth $58,000. John Maresh, 2085 County Road 6, #27- 118 -23 31 0019, 1993 value $314,900, 1992 value $290,500. He indicated he purchased the property in 1989 for $285,000, and the market value at that time was $303,000. It was later reduced to reflect the purchase price. He said the house was originally designed for commercial use,.is located on a Highway 12 corridor, and is 20 years old and needs upgrade. A recent appraisal done for financial reasons indicated a value of $300,000. He added homes in Orono are not continually • inflating as the Assessor suggests. He said the property was an old tree farm and he has sustained approximately $10,000 to $15,000 worth of tree damage during the past year. He felt his property is worth $295,000. George Capp, 2080 Shoreline Drive, #15- 117 -23 21 0006, 1993 value $442,000. He said he purchased the property in October 1992 for $415,000. Erickson noted the property was sold via a sheriff's sale. Capp indicated the property was on the market for 2 years prior to that sale. Hurr questioned the amount of lakeshore. Capp clarified he has access to the lake via an easement. Jabbour inquired whether a sheriff's sale is considered the same as a distressed sale. Erickson concurred that it is and noted these types of sales are not used determine market value. Capp said he purchased the home from the bank who bought the is property for $406,000. 0 • MINUTES OF THE BOARD OF REVIEW MEETING HELD APRIL 29, 1993 Rick Hollenkamp, 1513 Bay Ridge Road, #10- 117 -23 34 0008, 1992 value was $225,500. He said he purchased this property in 1979 for $170,000. The residence is 1,350 s.f. In 1982 the value increased 64 %, at which time he appeared before the Board and the value remained the same. Since that time it has increased $129,000 or 122 %. He noted his shoreline is a soft, mud bottom, not sandy, and the traff i s i n front of h i s res i dence has i ncreased. He referred to three properties which recently sold in the neighborhood and noted all have larger homes and better properties. Dave Wilde has agreed the value is too high. Dan Perkins, 55 Landmark Drive, #05- 117 -23.22 0010, 1993 value $339,800. He stated he purchased the property in December 1992 for $320,000, after it was listed for $325,000. Erickson clarified that this is the residence that sustained fire damage and questioned who he purchased from. Perkins said that is the correct home, and they purchased directly from the original owner. Callahan agreed the market value should be lowered to reflect the • selling price. Jennifer Dotzenroth, 3225 Casco Circle, #20- 117 -23_43 0021, 1993 value $212,000, 1992 value $186,100, or a $26,000 increase. She explained the residence is only valued at $5,900 and needs to be razed. She questioned the exorbitant increase in land value. She noted many issues afflicting lakeshore owners such as increased density, erosion, and mil foil. She felt something has to be done to relieve the tax burden for the elderly and lower income families. Goetten stated they are well aware of the concerns of the Community and they are always willing to take the time to listen. Callahan indicated the current economic conditions drive the market value, but It takes several years for property owners to realize the change. Jabbour explained the City receives the same amount of taxes regardless of the assessed value. He added if the total assessed value is too low the County or the State will increase it. He stated this Council does support legislation to held the elderly and lower income families to stay in their homes. Dotzenroth felt the 15% increase was excessive. • 10 • MINUTES OF THE BOARD OF REVIEW MEETING HELD APRIL 29, 1993 Erickson said the Casco Point area was fairly stable this year, but would review the property again. Marge Gasch 1030 Tonkawa Road #08- 117 -23 13 0015, 1993 value $263,000, 1992 value $204,000, which is a 28% increase. She noted she is 65 years old and has lived in the residence for 37 years. She stated the residence was originally a summer cottage. She felt the increase was due to the hugh homes being constructed around her and asked for relief while she still lives there. Jabbour suggested the Assessor use his property to compare to Mrs. Gasch's, and did not feel it appropriate to compare it to Mr. Williams' new residence. Written Appeals Submitted: Henry W. See, 1389 Orono Lane, #02- 117 -23 34 0005 Clark and Sharon Winslow, #08- 117 -23 44 0015 Mrs. J.H. Jester, 2515 North Shore Drive, #09- 117 -23 41 0002 Carol Callahan, 2545 North Shore Drive #09- 117 -23 41 0003 • C. L. Johnson, #17- 117 -23 31 0011 Leo Hauser, #36- 118 -23 14 0014 Corky & Lyle Johnson, 1398 Rest Point Road, #07- 117 -23 33 0004 Robert H. Owens, 1700 Bohns Point Road, #16- 117 -23 22 0003 Mrs. Doris Finn, 1640 Shadywood Road, #17- 117 -23 21 0013 ADJOURNMENT The reconvened Board of Review was scheduled for May 10, 1993 at 7:30 p.m. and Mayor Callahan adjourned the Board of Review at 11:02 p.m. ATTEST: FIFT- 11 d J. CalAahan, Jr., May