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HomeMy WebLinkAbout04-25-2001 Board of Review Minutesft- MINUTES OF THE ORONO BOARD OF REVIEW MEETING Wednesday, April 25, 2001 • 7:00 o'clock p.m. ROLL The Orono Board of Review met on the above date with the following members present: Mayor Barbara Peterson, Council Members Richard Flint, Bob Sansevere, Jay Nygard, and Jim White. The following represented City Staff: City Administrator Ron Moorse, Hennepin County Appraiser Kim Jensen, Hennepin County Senior Appraiser Keith Rennerfeldt, Hennepin County Appraiser Kevin Wynn, and Recorder Jackie Young. Mayor Peterson called the meeting to order at 7:03 p.m. Rennerfeldt stated the values are arrived at by studying the market and doing market ratio studies of sales throughout Orono. Those assessments are turned into the Hennepin County Review Board which reviews the assessments to insure that certain standards are being met. Rennerfeldt stated the values are based on the sales from October 1, 1999 to September 30, 2000, with the assessments needing to be within 95 percent of the sale price of the home. Rennerfeldt stated if a property owner is dissatisfied with their valuation, they have the right to appeal to the Board of Review at the City level. By appealing to the Board, the assessor will review the information on file regarding the property. The property owner may request that the assessor visit the property and provide information on how that valuation is obtained. After reviewing the property, the assessor brings his findings back to the City Council for their approval, and the property owner may • appear at the reconvened Board of Review if he is still dissatisfied with the valuation assigned to the property. The property owner may also choose to appeal the City Council's decision by appearing before the County Board of Equalization and then finally the Minnesota Tax Court. Rennerfeldt requested that the Council close the meeting to any requests that the Assessor's Office may receive after tonight's meeting. Mayor Peterson stated the purpose of tonight's meeting is to listen to the comments of the residents regarding their valuation. The City Council or property owner may request that the assessor visit the property and review their valuation, followed by another Board of Review meeting. Dan Bergeron, 1980 Sixth Avenue North, inquired whether the value they use is the estimated or limited value. Rennerfeldt stated the Assessor's Office will be looking at the estimated value tonight. The limited market value went into effect a few years back and limits the taxable value of the property to an eight and a half percent increase over last year's limited market value or 15 percent of the difference between last year's limited value and market value. John Eiden, 330 Big Island, noted his valuation has increased from $800 to almost $3,000 in four years. Eiden inquired whether the assessor takes into consideration the fact that Big Island properties have no curb and gutters, no paved streets, no police or fire protection, and higher insurance costs. Rennerfeldt stated the guiding factor in assessing properties is the selling price, what people are willing to pay for the property. Rennerfeldt stated the guideline set by the State is the market value of the property. Rennerfeldt stated the property owner should call the Assessor's Office if they feel there is something unique about the property that has been overlooked. PAGE 1 MINUTES OF THE ORONO BOARD OF REVIEW MEETING Wednesday, April 25, 2001 7:00 o'clock p.m. Jensen noted the limited market values only apply to residential properties and not to commercial or apartments. Jensen stated since Hennepin County took over the contract in Orono in the fall of 1998, their office has completed reviews on three quadrants of the city, with the remaining quadrant to be completed this summer. Jensen indicated the Assessor's Office received 200 calls this year, with 75 reviews being completed and adjustments being made to 55 of those reviews. Flint inquired whether the Assessor's Office contacted the people who wrote letters protesting their valuation. Jensen stated they have attempted to contact them whenever possible APPEALS 1. Ken Hoffman, 1254 Loma Linda Avenue, PID 07- 11723410076 and 0077. Hoffman stated his estimated market value on Lots 1 through 9 is $277,500 and on the single lot it is $9,000. Hoffman stated in his opinion the valuation should be $205,000 for Lots 1 through 9. Hoffman inquired why his valuation increased 600 percent in one year. Hoffman stated the $277,500 valuation is based on a property which sold approximately one mile from his residence in November of last year, which has 1.5 acres more than his, central air, two fireplaces, and approximately 600 more square feet. This property sold for $255,000. Hoffman commented in his view this is not a fair comparison due to those reasons. Hoffman indicated his valuation from 1997 to 1998 stayed approximately the same. In 1998 to 1999, it- • increased by five percent, and in 1999 to 2000, there was a 15 percent increase. In the year 2000 to 2001, his valuation increased 51 percent. Hoffman indicated on the single lot, in the year 2000 to 2001, his valuation increased by 600 percent. Mayor Peterson inquired whether the Assessor's Office did a review of this property. Jensen stated they did conduct a review of this property. Mayor Peterson inquired whether the Assessor's Office would be doing another review of the property. Jensen stated they could do another review if the property owner so requests. It was the consensus of the City Council that the Assessor's Office should revisit each home where the valuation is being contested. Jensen indicated when they revisit the property, they will discuss any issues the property owner feels need to be looked at. Flint inquired what some of the reasons may be for the adjustments. Jensen indicated land in this area is in demand. Jensen stated another reason for a number of the adjustments is the fact that the prior assessments were not within the 95 percent standard that is required by the State, which has necessitated some of the larger increases in valuation. PAGE 2 MINUTES OF THE ORONO BOARD OF REVIEW MEETING Wednesday, April 25, 2001 • 7:00 o'clock p.m. Mayor Peterson indicated the Assessor's Office would be contacting the property owner to review the property again. 2. John Weist, 1920 Concordia Street, PID 17-117-23 23 0006. Weist stated his home was constructed in 1973, and at the present time he is retired and on a fixed income. Weist stated they have not done any improvements to the house. Weist indicated his estimated market value is $193,000, with his house consisting of 1042 square feet. Weist stated he was informed by the appraiser that the reason his property valuation has increased by 100 percent over the past six years and 60 percent in the last two years is because someone built a half million dollar house on the piece of lakeshore property, which increased the land values in the area. Weist commented in his view this is not a fair comparison since he does not own any lakeshore. Weist stated a better comparison to his house would be the property on the back side of his lot that sold for one hundred and eighty some thousand dollars last fall. Weist stated the house that sold has a porch, a fireplace, which his house does not have, and is slightly bigger than his residence. Weist stated an increase of 60 percent in the last two years is not reasonable. Jensen indicated they do not compare lakeshore lots with non - lakeshore lots. Jensen stated they would have used the three sales on Fagerness as comparison. Weist commented the house that sold recently was also built in 1997. • Jensen stated the quality of the home and square feet of the home is taken into consideration when valuing the property. Wynn indicated he did go back and look at other non - lakeshore properties in the area to make sure the valuation was correct. Jensen stated they will go back out and review the property again. 3. Dan Bergeron, 1980 Sixth Avenue North, PID 27-118-23 42 0004. Bergeron indicated his home was constructed in 1980, and has been listed for sale since June of 2000, for $369,000. Bergeron said he received a letter from his real estate agent who indicated the proper selling price for his home would be in the range of $330,000 to $350,000. Bergeron stated his market value is $393,000. Jensen stated Bergeron did call the Assessor's Office and left a number, but she was told the number was not good. Jensen stated she did review the information they have on the property and was hoping to be able to contact the property owner prior to tonight's meeting. Jensen indicated she would like to review the property. Jensen noted they have not actually been in the residence, but they would be willing to reduce the valuation to $354,000. 4. Robert Frommelt, 2805 Casco Point Road, PID 20- 117 -23 32 0015. Frommelt stated he is appearing at tonight's meeting because of a concern he has regarding the number of increases his property valuation has gone up. Frommelt stated his valuation has increased 13 times since he purchased his home in 1970, with his income only increasing three times in that same period of time. Frommelt commented his taxes have increased to the point where he is unsure whether he will be able to • retire and still live in his residence. The estimated market value is $747,000, limited market value is PAGE 3 MINUTES OF THE ORONO BOARD OF REVIEW MEETING Wednesday, April 25, 2001 7:00 o'clock p.m. • $633,000. Frommelt indicated he purchased the property for $60,000 in 1970, with the house having been built in 1935. Frommelt indicated he will speak with the Assessor's Office regarding his valuation. 5. Robert Larson, 724 Tonkawa Road, PID 05- 117 -23 34 0003. Larson stated he has spoken with the Assessor Office's who indicated lakeshore property is worth $5,000 per foot. Larson stated his estimated market value is $278,000, which is a 45 percent increase. The property value in 1973, shortly after he remodeled the property, was $6,876.00, and no improvements have been done to the residence since that time. Mayor Peterson inquired how much lakeshore Larson owns. Larson indicated he owns 50 feet of lakeshore. Larson showed a chart illustrating the increases in valuation his property has experienced over the years. Larson questioned whether the $5,000 a square foot valuation was reasonable. Larson stated he has experienced an $87,000 increase in his valuation this year, and questioned where the increases will end. Larson commented at this rate, he will soon be owning a million dollar home. Larson stated the 15 percent and the eight and a half percent figures given earlier in the meeting do not correlate with his increases. Jensen stated the 15 percent was the limited market value. Jensen stated the Assessor's Office can provide him with a written explanation on the.limited market value. 6. Monica Young, 2845 Wear Circle, PID 33- 118 -23 34 0009. Young stated they purchased the land • just recently in 1999 for $126,000, with the land being assessed last year at $140,000. Young stated the value on just the land has now increased to $180,000. Young questioned why the value of the land would increase so much in such a short period of time. Young noted they own four acres, with the land being on the market for a very long time prior to their purchase. Young stated in her view the valuation on their home is fair at $406,000, but feels the value on the land is too high. Jensen indicated the $140,000 valuation was a result of the improvements made to the site and what the other sites in the area were valued at. Jensen stated this property is within the one quadrant that their office has not yet reviewed and will be reviewed this summer. Jensen indicated they used a house that recently sold in the area for $406,000 as a comparison, which gave them some indicators on the value of the land in this area. Young noted they are not able to subdivide this property. Jensen noted the land values in this area were below the standard and adjustments had to be made to the values. Jensen stated the land is not being taxed as a dividable lot. Mayor Peterson stated the assessor will revisit the property. 8. Jim Rivers, Windward Marina, 1444 Shoreline Drive, PID 11- 117 -23 22 0006. Rivers stated in the past year he has had an estate planner do a business evaluation on his business and property. Harry Baker of Baker Appraisers completed a report in December of 2000, and his value for the property is $580,000, which includes the land and buildings. The value of the business was based on what the business is actually doing now and the zoning in Orono. Rivers stated this property consists of five PAGE 4 MINUTES OF THE ORONO BOARD OF REVIEW MEETING Wednesday, April 25, 2001 • 7:00 o'clock p.m. parcels of land and is a combination of commercial and residential, homestead and non - homestead. Rivers stated the only use this property can be used for is a marina. Rivers indicated he does not own enough land at this location to legally build a house in the City of Orono. Rivers stated his business is limited due to the size of the property and will probably not increase much in the future. White inquired whether this report has been shared with the Assessor's Office. Rivers stated he would be willing to provide it. Jensen inquired whether he has spoken with Chris Bennett, the appraiser who does valuations of marinas. Rivers stated he has not. Rennerfeldt stated the Assessor's Office will contact Rivers. Rennerfeldt stated marinas have experienced some big jumps in the last couple of years. 9. Dan Crear, 1980 Spates Avenue, PID 10-117-23 42 0022. Crear indicated he purchased this property for $2,200 to get rid of an eyesore in the neighborhood. Crear stated this property used to house an old gas station and as a result the land has become contaminated over the years. Crear stated Hennepin County does own an easement on this property which allows them to take approximately 30 percent for a highway if they so choose. Crear commented he has a concern regarding how fast the value on this property has increased over the past few years. Crear stated at the present time the value of the property is $3,300, and due to the land being contaminated, he will be unable to do anything with this property for the next 20 or 30 years Crear stated this property has no value to anybody since it is contaminated. Sansevere inquired whether the Assessor's Office was aware that it was contaminated. Jensen stated they were not aware of that fact. Crear stated the contamination of this piece of property is well documented. Crear indicated he did have the oil tanks removed out of the ground. Crear noted there currently is a lift station located illegally on the property, and if he chooses, he could charge the City of Orono rent for the use of that land. Jensen stated the $3,300 land value was arrived at because they considered this land as a buffer zone and were not aware of the contamination. 10. Terry Morse, 2080 Spates Avenue, PID 10- 117 -23 310079, 0080, 0081, and 0084. Morse indicated last year's market value was approximately $1,500 on each lot. At the time he purchased them in the mid 80s, their value was approximately $1,000. Morse stated this year's value has increased on three of the lots to $30,000, with the other one being valued at $20,000. Morse indicated the limited market value has increased from $1,300 to $4,100. Jensen stated the Assessor's Office did review this site this year, with these lots being looked at as one • property. Jensen stated the total there were a number of sales in this area, which has increased the value of the land in this area. PAGE 5 MINUTES OF THE ORONO BOARD OF REVIEW MEETING Wednesday, April 25, 2001 7:00 o'clock p.m. • Morse stated he would like to meet with the Assessor's Office. 11. Gloria McDonald, 3445 Crystal Bay Road, PID 17-117-23 43 0121. McDonald indicated she has reached the age of retirement and lives on a fixed income. McDonald expressed concerns over the large increase she has experienced in her property valuation for this year. McDonald noted her estimated market value has doubled, plus one -fourth more, this past year. McDonald noted she has spoken with the assessor regarding her valuation and will be meeting with him. Written Appeals Submitted: Philip Byers, 3083 Farview Lane Thomas McCune, 1473 Bay Ridge Road Lawrence Edelmann, 750 Tonkawa Road Clifford Otten, Highway 12 and Willow Drive David and Sherokee Ilse, 3630 Eileen Street ADJOURNMENT Nygard moved, Sansevere seconded, to accept no further appeals after tonight's meeting. VOTE: Ayes 5, Nays 0. Peterson moved, White seconded, to continue the Board of Review to Monday, May 8`h at 6:30 p.m. VOTE: Ayes 5, Nays 0. White moved, Nygard seconded, to adjourn the Board of Review at 8:55 p.m. There being no further business to discuss, the Board of Review was adjourned at 8:55 p.m. ATTEST: -e -- �- Linda S. 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