HomeMy WebLinkAbout04-30-1991 Board of Review Minutes1991 BOARD OF REVIEW = APRIL 30, 1991
The 1991 Board of Review met on Tuesday, April 30, 1991.
Mayor Peterson called the meeting to order at 7:00 p.m.
Councilmembers Goetten, Callahan, Jabbour and Butler were
present. Representing the City were Mark Bernhardson, City
Administrator; Rolf Erickson, City Assessor; Dave Wilde and Paul
Kingsbury Assistant City Assessors; and Teri Naab, Recorder.
Don Monk represented Hennepin County Assessor's staff.
Mayor Peterson introduced Newell Weed, Chairman of the Lake
Minnetonka Area Tax Committee. He is also on the Fair Share
Board of Directors.
Mr. Weed gave a brief presentation on the Lake Minnetonka
Area Tax Committee and what they have been diligently working on.
Basically, they would like to see changes in the three tier
system that Minnesota currently uses. He notes that the reason
for property taxes is to pay for services and those services are
provided equally to those in homes valued at a lower rate, the
same as those valued at a higher rate. Therefore, -the percentage
must be equalized so all are paying the same rate for the same
services. Also, they are working on a bill which would alleviate
the excessive rate being charged to seniors or those on fixed,
low incomes.
City Administrator Bernhardson explained the job of the
assessors was to best ref lect the value they put on a property
for market value in relationship to what that property would
actually sell for:. He further noted that as Mr. Weed had
explained the valuation is only one part of the system and
another portion of the tax system is the classification system
which assesses 1 to 3% on the property, depending upon the value
of the property. Another feature which comes under the heading
of the "Minnesota Miracle" from the early 1970s, is the school
aids /local government aids formula which redistributes money
throughout the State taking money from incoming sales tax and
"subsidizing low value areas at the detriment of local
communities. The seven county area has about 50% of the
population, 64 -65% of the taxes in incoming sales are generated
in the metro area. The metro area receives only about 46% of
those taxes back. The perception from the out -state people is
that this is an urban area and all the money is coming into the
metro area, when in fact, through the State system just the
oposite is taking place. The Minnesota Miracle has three
fallacies: property value reflects the ability to pay; need for
service is the same throughout the State; and the cost of
producing those services is the same throughout the State.
Bernhardson thanked Mr. Weed for mentioning that the City of
Orono's portion of the tax bill makes up only a small part of the
tax bill, this year 12% and the City Council works hard to keep
it the lowest tax capacity of any city in Hennepin County over
1,000 in population. Mr. Bernhardson also explained the "Circuit
Breaker" whereby persons may apply for a refund on their taxes if
they raised over 10% last year.
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Mayor Peterson called the following persons before the Board
in the order of their arrival.
Appearing before the Board were:
1. Art Brambilla, 3838 Cherry Avenue - PID #08- 117 -23 33 0003.
Mr. Brambilla noted that his taxes had been reduced by
$350.00 but his valuation does not ref lect a reduction and
should therefore be amended. Mr. Erickson will look into
the matter.
2. John Burch, Big Island - 23- 117 -23 32 0058.
He represented his mother, Jennette Burch. The 1989
valuation was $40,000; 1991 valuation is $51,600. This is a
summer cabin with a vertical drop to the lake. The lot
would need variances to rebuild should the cabin be
destroyed. Mr. Erickson will be in contact.
3. Newell Weed, 1385 Orono Lane - 02- 117 -23 34 0003.
The valuation has increased in the last two years by 38 %;
the taxes by over 40 %. According to realtors, the value has
decreased by about 20 %. Since owning the house, he has paid
over 2h times the original cost of the property. He would
like to have it re- evaluated. Mr. Erickson will be in
contact.
4. Neil Bashore, 2565 Woodhaven Drive - 33- 118 -23 41 0008.
The valuation for 1989 was 133,000; 1990 valuation was
142,000; and 1991 is 164,400 - a 15% increase over the last
two years and an increase taxes of 33 %. He also noted that
the land value alone had gone up $7,100, and many of his
ne- ighbors in the addition had not received the same
increase. Mr. Erickson will be in contact.
5. Robin Crawford, 1540 Long Lake Boulevard - 26- 118 -23 33
0007.
The 1991 valuation is $87,600. An appraisal was done on
January 4, 1991 which reflected a valuation of $80,000. Mr.
Erickson will be in contact.
6. Melvin Peterson, 475 Oxford Road - 05- 117 -23 41 0010.
The 1989 valuation was $477,500; 1990 was $603,600; and 1991
is $601,000. He feels a valuation of $477,500 is fair. The
taxes from 1990 to 1991 have increased 42 %. Mr. Erickson
will be in contact.
7. Mike Schulte, 4640 West Branch Road - 06- 117 -23 33 0008.
He noted that he bought the house in 1987 for $87,000, and
with a three percent increase his valuation should be
$107,500, not $115,300 as his 1991 valuation reflects. He
will be contacted by Mr. Erickson.
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8. Alan Carlson, 3125 Fox Street - 04 -117 -23 33 0011.
The valuation for 1991 is $870,900; an increase of $160,000
from last year. There was amendment in last years valuation
because additional land was added into the value and he
fears that is what happened this year. Mr. Erickson will
check into this and submit a recommendation.
Alan Carlson, Watertown Road - 33- 118 -23 32 0001.
The 1991 valuation is $404,200 of which $182,200 is placed
on the- building which has been removed from the property.
Mr. Erickson will check into this.
9. James Lorence, 4460 North Shore Drive - 07- 117 -23 31 0039.
The valuation for 1991 is $224,300; 1989 was $214,000. In
four years the value has increased by $66,000 and according
to the real estate market, it has actually decreased in
value. Mr. Erickson will be in contact.
10. Matthew Nicoll, 2943 Farview Lane - 04- 117 -23 34 0008.
The 1989 valuation was $278,500; 1990 was $311,000; and 1991
is $309,000. He feels the valuation should be about
$260,000, which is what an appraisal done last fall
reflected, and there is a house on the same street which
sold two years ago for about $250,000. Mr. Erickson will be
in contact.
11. Ron Sheldon, 3225 Bayside Road— 05- 117 -23 41 0017.
The 1989 valuation was $268,500 1991 valuation is $353,500
which is almost a $90,000 increase which is an extraordinary
amount. Mr. Erickson will be in contact.
12. Ward Edwards, 2474 Carman Road - 20- 117 -23 12 0027.
The 1991 valuation was $295,500. The house was `newly
constructed and finished in June of 1990. The actual cost
of building was $147,411, plus an additional $39,938 for
poor soil conditions which needed to be corrected, and the
1990 value for the land was $84,000. The mortgage appraisal
for the new home was $260,000. Mr. Erickson will be in
contact.
13. Stewart Perry, 2975 Casco Point Road - 20- 117 -23 31 0045.
The valuation for 1990 was $292,000; 1989 was $260,000. Mr.
Smith, the previous assessor, had indicated that there would
be no increase at that time in taxes as the mill rate would
be reduced. There was a 20% increase. Mr. Erickson will be
in contact.
14. Lou Smerling, 2683 Casco Point Road - 20- 117 -23 23 0001.
There has been almost a 20% increase in taxes. It is a
summer cottage which has no heat or insulation. It. is
currently valued at $121,000 and to sell for that price to
someone knowing they must then spend money to tear down the
existing buildings will be difficult. The cabin,is built on
the top of a very steep cliff. Mr. Erickson will set up an
appointment to meet on the site to review the valuation.
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15. Dennis Landin, 1375 Vine Place - 07- 117 -23 42 0007 and 08.
In March 1988 an appraisal was done which indicated a value
of $155,000. The 1991 valuation is $190,000. Mr. Erickson
will be in contact.
16. Christopher Tully, 1355 North Arm Drive - 07- 117 -23 41 0067,
0068 and 0073.
He is *,pur-chasing° the 716t.,M'ay 1st for $74,000. The 1991
valuation is $88,000. The house is in need of a lot of
repair and he feels that the purchase price is fair. Mr.
Erickson will set up an appointment.
17. Jim Rivers of Windward Marine, 1444 Shoreline Drive - 11-
117 -23 22 0004, 0005,0006, 0007 and 0010.
The valuation for 1991 is $620,000. The buildings on the
property are all new or in good shape. It is commercial
property which can only be used as a marina. Because of
current low lake levels and milfoil, the marina business in
the past years had deteriorated to a low level. The
valuation or taxes should be based on income earned from the
property which would make it more reasonable. Mr. Rivers
has had a recent appraisal which reflects a much lower
valuation than an appraisal done by Hennepin County for the
purpose of tax court. Mr. Rivers noted that his occupancy
rate currently is 33% or less, with reduced rates. Mr.
Erickson suggested that the Council compare both appraisals
and review a recommendation by him to base their decision
on.
18. Kelly Shaughnessy, 2150 Colin Drive - 03- 117 -23 21 0015.
The 1989 valuation was $175,400; 1990 was $192,600; and 1991
is $191,500. There is a house on Bollum Lane in Long Lake,
built about the same company, at the same time which is
valued at $169,000 which he feels is fair. Mr. Erickson
explained that valuation is based on compatible sales in the
area. Mr: Erickson will be in contact.
19. R.F. Potas, 2190 Shadywood Road - 17- 117 -23 42 0007.
The valuation for 1991 is $274,900; the building is valued
at $131,000 and land at $143,900. In 1988 the land value
increased by 11 %, 1989 by 21.4% and 1990 by 35 %, and
meanwhile the lake level is dropping to an all -time low and
the lake is unusable at times because of milfoil. Mr.
Erickson will be in contact.
The following property owners were unable to attend the
Board of Review meeting and submitted letters to the Board
Members:
H.D. Berman, 3650 Casco Avenue - 20- 117 -23 31 0043
Kurt Nejezchelba, 2625 Kelly Avenue - 20- 117 -23 14 0026
Ormond L. Luger, 2696 Caroline Avenue - 20- 117 -23 24 0034
Lakeside Marina, Inc., 08- 117 -23 41 0012, 08- 117 -23 44 0004,
08- 117 -23 44 0005, 08- 117 -23 41 0014 and 08- 117 -23 41 0007
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It was moved by Mayor Peterson, seconded by Councilmember
Jabbour, to close the 1991 Board of Review at 10:20 p.m. and
reconvene on Monday, May 13, 1991 at 6:00 p.m. Ayes 5 , nays
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AT T: Barbara A. Peterson, Mayor
0 othy M llin; City Clerk
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