05-08-2000 Council Minutes Reconvened Board of Review

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ORONO BOARD OF REVIEW RECONVENED MONDAY, MAY 8, 2000 • ROLL The Orono Board of Review met on the above - mentioned date with the following members present: Mayor Gabriel Jabbour, Council Members Charles Kelley, Barbara Peterson, Richard Flint, and Bob Sansevere. Representing staff were City Administrator Ron Moorse, City Attorney Tom Barrett, Hennepin County Appraiser Kim Jensen, Hennepin County Senior Appraiser William Davy, and Recorder Alissa Winternheimer. Mayor Jabbour called the meeting to order at 6:35 p.m. APPROVAL OF MINUTES Kelley moved, and Peterson seconded, to approve the Minutes of the Orono Board of Review Meeting on April 26, 2000. Vote: Ayes 5, Nays 0. COUNCIL ACTION ON ASSESSOR'S RECOMMENDATION • 1. Matt Nicoll of 160 Smith Avenue, #02- 117 -23 -21 -0029 Mr. Nicoll stated that when he bought the house he accounted for the lot size, septic system, and his ability to expand later. If he had known that 2 -3 years later he would be hit with the cost of sewage hook up in the amount of $23- 30,000, he would have had the seller pay that or would have reduced purchase price of the house. He hired Paul Hoffner, who is certified with an SRA designation, to appraise the home. His appraisal included the 3 most recent property sales in Orono; all 3 sales were in higher end developments. Davy was given a copy of the assessment. After adjusting the most recent sale comparables for square footage and land value, he came up with an assessment of $525,000. Nicoll feels that should account for the cost of sewage hookup. Mayor Jabbour asked if he had an approved and functioning septic system. Nicoll responded he did. He felt he was being forced to hook up to sewage now to reduce the overall cost to the City. His system is as good or better than 90% of the septic systems in Orono. Mayor Jabbour stated that the assessor is the City's employee under contract and is an expert. Mayor Jabbour does not feel qualified to decide the value of anyone's home. The assessor found the home was valued at $595,000. Mayor Jabbour understood Nicoll's argument, but couldn't override the assessor. Davy stated he has reviewed the appraisal by Hoffner. The problem with the $525,000 assessment was that it was based on the purchase price of $450,000 7 years ago. Property • value has increased 5 % -10% each year over the last 7 years. When he looked at the adjustments made, he didn't see where Hoffner adjusted $25- 30,000 for the other properties. Davy felt he