HomeMy WebLinkAbout04-21-2004 Board of Appeal and Equalization MinutesMINUTES OF THE
ORONO LOCAL BOARD OF APPEALS AND EQUALIZATION MEETING
Wednesday, April 21, 2004
7:00 o'clock p.m.
is ROLL
The Orono Local Board of Appeal and Equalization met on the above mentioned date with the
following members present: Mayor Barbara Peterson; Council Members Jim Murphy, Jim White and
Lili McMillan; Representing staff were City Administrator Ron Moorse and Recorder Glenda D.
Spiotta.
Hennepin County Senior Appraisers Kim Jensen and Bill Davy, and Appraiser Tom Kunik were
present.
Council Member Bob Sansevere was absent.
Mayor Peterson called the meeting to order at 7:00 p.m.
APPEALS
Mayor Peterson welcomed the public to the annual Orono Local Board of Appeal and Equalization
meeting. Mayor Peterson invited the assessors to provide a brief summary of the appeal process.
She explained the appeals would be heard one at a time in the order in which persons arrived and
signed in at the Council Chambers.
• Davy introduced the Hennepin County staff members, Ms. Jensen and Mr. Kunik. Davy explained
that since 1998 Orono has contracted with Hennepin County to provide property assessment services,
noting that Ms. Jensen was involved with Orono since then. He gave an overview of the appeals
proceedings and role and duties of the assessor, which, by state statute, is to establish a property's
market value as of January 2, 2004 that is then used to determine property tax payable in 2005. He
explained the market value is the highest price a property could bring when exposed on an open
market involving a willing buyer and willing seller.
Davy stated the assessment is based on actual sales that occur in the city of Orono. Davy reported
there are about 2900 property parcels in Orono and 131 property sales occurred in 2003. The
assessors conduct ratio studies on the sales, then compare what the properties actually sell for to the
current 2003 assessment. This indicates how far the assessed market values are below the actual
sales prices. Davy stated the real estate market is continuing to raise sales prices and the demand for
properties in Orono continues to be very high.
Davy reported the sales study for October 1, 2002 to September 30, 2003 determines the 2004 ratio of
assessed market value to sales prices. He advised the median ratio of 96 -976/o to satisfy Hennepin
County assessment standards as well as the Minnesota Department of Revenue standards.
Further, he explained the assessor also reviews random properties not sold to see how much the
assessor had adjusted those properties.
Davy reviewed the Board of Appeal and Equalization meeting process, pointing out that this meeting
• is the second level of appeal, the first level taking place when the property owner contacted the
assessor to discuss the market value. The assessors physically inspected some local properties after
hearing from the property owners and either came to a reduction in value or the homeowners know
the values were corrected. At this meeting, the City Council sits as the Board of Review and hears
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MINUTES OF THE
ORONO LOCAL BOARD OF APPEALS AND EQUALIZATION MEETING
Wednesday, April 21, 2004
7:00 o'clock p.m.
concerns expressed by property owners, and assessor staff are advisory only. Davy advised the third •
level of appeal is to the Hennepin County Board, which meets the last two weeks in June 2004 to
consider property value appeals. The final 2004 market value appeal level is to the Minnesota Tax
Court by April 30, 2005.
The assessors received many phone calls and Davy explained the majority of questions were about
the limited taxable value increases. He described that the limited taxable value which was set by the
Minnesota State Legislature in the 1990's when 20 -25% market value adjustments were common,
was set to expire in 2001 but was extended. Taxable value increases are currently limited to 15% and
for the next two years will also be at 15 %.
Murphy asked for confirmation that the Minnesota Legislature reviewed that percentage each session
and, over time, the goal is to eliminate the gap and that the two numbers (market value and taxable
value) will become the same.
Davy agreed with Murphy's description and advised that this year many properties have a market
value that is the taxable value, and this will occur next year as well. He advised the limited market
value is set to be phased out.
Gerald Walsh, 180 Big Island, commented that in his letter of meeting notice and valuation it was not
made very clear that this is a second level of appeal and that property owners should make contact
with the assessors as a first level.
Mike Adair, 650 Tonkawa, also indicated he did not understand from his letter that this was the •
second level of appeal.
1) Alan Nettles, 1940 Shoreline Dr, PID #10- 117 -23 47 0007, valued at $810,000
Mr. Nettles explained his property with 121' front feet of lakeshore two years ago increased $132,000
and three years ago increased $125,000 with the house value frozen at $148,000, with the land value
increasing $350,000 recently. He stated there have been no improvements to the property but there
have been some problems such as an unlocated drainage ditch collapse with flooding that caused the
loss of 10 -11 trees. He added that the house actually detracts from the property value, citing a
property at 1910 Heritage Lane /Shoreline with 127' front feet of lakeshore valued at $865,000.
Kunik responded that he had talked with Mr. Nettles.
Mr. Nettles stated the property does not have a modern house, the driveway has sinkholes and
believed the property would be more valuable without the house. He stated the market value is
neither accurate nor fair. He agreed he would meet further with the assessor and asked where to
secure appeal forms.
Mayor Peterson confirmed that Mr. Nettles would meet with the assessor to review the land value.
Davy stated the assessors do not conduct a full comparables study at this stage, but a full -blown •
appraisal would be done at the level three appeal. Mr. Nettles asked for the assessor's documentation
for applying to his property. Davy indicated general growth in lakeshore property values was used.
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MINUTES OF THE
ORONO LOCAL BOARD OF APPEALS AND EQUALIZATION MEETING
Wednesday, April 21, 2004
7:00 o'clock p.m.
• Murphy summarized the assessors arrived at a percentage based on their analysis and that percentage
was applied citywide by category. He understands Mr. Nettles question to be if the assessors
compared his property to other like properties in this category, and that the assessors have not done
this yet.
Davy concurred that no individual comparison had been done at this stage for Mr. Nettle's property.
Mr. Nettles indicated that is an unsatisfactory process, and that he wants to be engaged in a process
that has some anchor points for discussion. He is looking for some sort of documentation and needs
some comparisons in order to resolve his questions.
Kunik pointed out a property sale down the street from Mr. Nettles' property. The assessors
extracted the house/buildings, and then that increase was applied to Mr. Nettles' property value, as
the front feet lakeshore values were comparable. Kunik referenced a conversation he had with Mr.
Nettles where they had agreement on the consistent value for the front foot lakeshore.
Mr. Nettles stated he had not agreed but understood Kunik's explanation. He disagreed that his
property should be compared as a `like' property to those on Heritage Lane as his property has the lift
station, the old stage house, and the marina which he believed is a different setting.
Davy stated he would meet with Mr. Nettles, who restated he wants to understand the rationale for
the property's great increase in value.
• Jensen interjected the perception appears to be that the assessors are defending the values, however,
in the mass appraisal system, sales data are used to value properties but it is not a perfect system.
The goal is to be at 95 — 100% of market sales values on an open market. Technically, she advised,
the burden of proof is actually on the taxpayer to demonstrate when the values should be less than its
assessment value. Jensen invited Mr. Nettles to provide information to the assessors on why he
believes the assessed value should be lower.
Mr. Nettles replied he provided some of that information already to the assessors, such as an
appraisal done in 2003 for $585,000 for refinancing purposes, which is a lot less than the assessed
$810,000 value.
Mayor Peterson observed that properties are being sold for such high values currently and that does
have an impact upon all property values.
Mayor Peterson confirmed that Davy would contact Mr. Nettles to set up a time to meet.
Moorse asked the Board to set a date and time, within the next twenty (20) days, for the reconvened
hearing when the assessors return with the appeals recommendations, prior to any property owner
leaving this meeting. Upon a calculation of days, the reconvened hearing was set for May 10, 2004,
2) Don Kielley, 1670 Shadywood Rd, PID #17- 117 -23 210015, valued at $622,000
is Mr. Kielley indicated that he, too, misunderstood the he either had the option to call or to come in
person and sit down with the assessors on this date. He acknowledged that he brought no comparable
property information with him.
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MINUTES OF THE
ORONO LOCAL BOARD OF APPEALS AND EQUALIZATION MEETING
Wednesday, April 21, 2004
7:00 o'clock p.m.
Mr. Kielley stated he had two points to make and was willing to meet with the assessors to discuss •
them. He pointed out the property is close to the intersection of CR 19 near 51 which is a heavily
used road as well as the attendant traffic noises at the stop signs. He explained the road is dangerous
and described that when he walks his dog their experience is that the traffic is often faster than the
posted 35 mph. Also, it is dangerous because of a bend in the road and limited visibility.
Mr. Kielley's second point relates to the house that was a cottage with three side porches of 1920's
construction. In 1996 they did some extensive first floor remodeling and after that went to have
similar work done on the second floor but were told that due to foundation problems, a steel
superstructure over the first floor like a `cover' would have to be built for a second story. A visit to
the basement would show the foundation issues.
Davy confirmed the assessors would contact Mr. Kielley to view the property and house.
3) Gail Blackstone, 4475 Forest Lake Landing, PID #07- 117 -23 24 0023, 07- 117 -23 24 0024
Ms. Blackstone explained that last year the property value for this property went up very significantly
on the two parcels at this address: 47.2% for PID #07- 117 -23 24 0023 and 28.6% for PID #07 -117-
23 24 0024. She called the assessors office at that time and ultimately decided not to come to the
2003 Board of Appeals and Equalization Meeting for a variety of reasons, including that values
needed to move to reflect the value of the land.
Ms. Blackstone expected an increase for 2004 to reflect the reasonable proportion for this category of •
property. The increase in PID #07- 117 -23 24 0023 is 10.5% but the concern she has is over the
35.2% increase on PID #07-117-23 24 0024. She stated she does not understand this year why the
one parcel increased over another 35 %. Ms. Blackstone advised she did call the assessors but was
unsatisfied with the response.
Mayor Peterson asked if the assessors had visited the property.
Davy indicated this is a land issue and he did drive by the property and reviewed some of that area's
land values. He stated that some of the land values are increasing quite astonishingly but the
percentages are sound. Davy reported the 2003 land value was $86,000 and for 2004 is $95,000 on
PID #07- 117 -23 04 0023 and the 2003 land value was $52,000 and for 2004 is $71,000 on PID # -07-
117-23 04 0024, both being similar in size. Davy advised that the two parcels together form a
buildable site with a combined value of $155,000. He reported that the next door property is valued
at $155,000, too, and looking at other properties and what they have sold for over the past few years
has led to making some pretty significant adjustments for this property.
White asked if the site was truly buildable.
Ms. Blackstone described the property as being quite sloped both lengthwise and towards the streets
but it does have a tiny cabin on it which would need to be demolished before any building could
occur, and would also involve extensive site grading. She repeated that she understood last year •
when the increases occurred to adjust for sales but did not expect a huge adjustment to happen two
years in a row.
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MINUTES OF THE
ORONO LOCAL BOARD OF APPEALS AND EQUALIZATION MEETING
Wednesday, April 21, 2004
7:00 o'clock p.m.
• Murphy asked what is the square footage of the existing house.
Ms. Blackstone confirmed the house to be 480 s.f., is livable and rented out presently. She stated the
parcels are 50' x 330' and it has no lakeshore access. She expressed her expectation that both parcels
would increase the same percentage, as opposed to one parcel jumping 25% more than the other.
Murphy asked Davy, if the two parcels are adjacent, what is the differential between the two to justify
different values.
Davy responded the home is valued at $10,000. However, he explained the assessors are valuing it as
an assemblage property rather than as two single parcels.
Murphy questioned why the values of two adjacent properties owned by the same people but not
legally combined are considered as combined parcels.
Davy replied that the value would be even higher if the parcels were considered separately.
Murphy asked why the assessors make an arbitrary decision to consider parcels combined or to be
left separately, and does this create an advantage if the parcels are combined.
Davy stated it is not a huge difference between whether the parcels are combined ($155,000) or
valued separately (est. $175,000).
is Murphy asked if the assessors are `playing catch -up' on the one parcel, to which Davy agreed
indicating that when the focus is on the primary parcel, the secondary parcels may fall behind in
valuation and then may result in a sizeable adjustment.
Ms. Blackstone interjected that she had an extensive conversation with the assessor last year (2003)
as she believed the assessors were doing `catch -up' on the property value but there was never any
indication that 2003 was only a partial `catch -up' and subsequent years would see additional
increases. Her question now is whether this is another partial jump in valuation for 2004 and will she
see further significant jumps in 2005 assessments. She stated she understands that property values
have to increase and that is not necessarily a bad thing but does not see the rationale for the
substantial jump in the one parcel.
Davy advised the parcels are correctly at market value now and any changes for 2005 will result only
from sales activity in the market.
Ms. Blackstone responded that is what she heard last year from the assessors.
Mayor Peterson asked if Ms. Blackstone wished to have an assessor visit the property with her.
Ms. Blackstone replied that she did not think that was necessary. She emphasized she wanted to
know why one parcel increased significantly more than the other parcel.
• Mayor Peterson asked Davy to call Ms. Blackstone and spend as much time as needed to address her
issues. Davy agreed to call Ms. Blackstone.
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MINUTES OF THE
ORONO LOCAL BOARD OF APPEALS AND EQUALIZATION MEETING
Wednesday, April 21, 2004
7:00 o'clock p.m.
Ms. Blackstone thanked the Board for their consideration of her issues.
4) Mike Adair, 650 Tonkawa Rd, PID #05- 117 -23 33 0005
Mr. Adair also indicated he had not understood the meeting to be stage two of the appeals process,
did not know about stage one, apologized and stated his appreciation of the Board's time to hear his
concerns.
Mr. Adair expressed he was stunned and troubled by the 34% increase in market value for his
property. He acknowledged he has a valuable piece of property on which he grew up and purchased
from his parents but stated he finds it unbelievable that the market is being driven by the `haves' and
that the average person has trouble staying on his own property. Mr. Adair stated he wanted some
understanding of how the property value could increase so much in one year.
Davy confirmed the parcel has more than 50' of lakeshore.
Mr. Adair agreed and stated he understood the majority of the property's value was in the land itself.
Davy expressed that in the Tonkawa area the assessors have seen the entry type of market parcels
increase drastically over the past several years. The assessor had values of about $350,000 and now
the values have increased to $550,000 or more based on sales that have occurred.
•
Mr. Adair acknowledged that he understood the relationship of values to sales. •
White questioned if the assessors are trying to keep the assessed values so close to market values or
at least in the 95 -100% range, why does a parcel increase over 35% when the average increase in
lakeshore is 10% this year.
Davy stated the only reason for the larger percentage is that it was undervalued and even with
constant analysis of the markets and sales that occur, unfortunately there are some properties in
certain areas, on certain bays, or certain home types that will receive dramatically higher increases
than the average.
Murphy empathized with Mr. Adair's concerns, explaining that the City Council has struggled with
the issue of keeping Orono residents at home on their properties, especially with lakeshore properties
and on Tonkawa with its expensive properties. He concluded that it is a free market situation.
Mr. Adair replied he lived in the Tonkawa area long before the recent high sales prices occurred.
Mayor Peterson asked Davy if part of the problem with the higher increases experienced by Ms.
Blackstone and Mr. Adair's properties is because of the 2004 Reevaluation area in the southwest
quadrant that was physically visited this year. Davy indicated it does not necessarily mean it would
not have gone up by that much. He explained the increases are primarily based on sales in that area
for the year.
Murphy asked Mr. Adair for the taxable market value on his property. Mr. Adair responded the •
taxable market value is $450,539 for 2005 with 100' of lakefront. He advised he was not interested
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MINUTES OF THE
ORONO LOCAL BOARD OF APPEALS AND EQUALIZATION MEETING
Wednesday, April 21, 2004
7:00 o'clock p.m.
in selling the property but wanted to continue to live there. Mr. Adair concluded by requesting some
consideration for a reduction in value
Kunik confirmed the assessors would call Mr. Adair to further discuss the valuation.
Mayor Peterson thanked Mr. Adair for his frank comments and concerns.
5) George and Mary Torkelson, 670 Tonkawa, PID #05- 117 -23 33 -0009
Mary Torkelson advised that last year they did not do anything about the valuation increases because
of personal /family matters that were occurring then. Ms. Torkelson acknowledged that Jensen did
visit the property and the house value is as low as possible. George Torkelson asked why the
valuation is so high on a 50' lot that has building restrictions. He stated they have lived in the house
since 1958 but it is in need of substantial repairs.
Ms. Torkelson acknowledged she spoke with Davy and conducted some realtor and Internet research
of neighboring property values. She presented information about the house next door that she
believed has been undervalued for many years. She stated that 100' lakefronts or larger are worth
more per foot than a 50' lakeshore lot. Next door to the Torkelsons is a lot that has 101 -103' of
lakeshore, and Ms. Torkelson reported that the value of the lot is $7,356.40 /foot of lakeshore
compared to the Torkelson's at about $9,000 /foot of lakeshore on a 50' lot which she believed is not
as valuable as a 100' lot. She referred to realtor comments about the restricting impacts of Orono
• rules and regulations on smaller lots. Ms. Torkelson concluded they are fighting the over 38% rise in
land value.
Ms. Torkelson advised that computer information about the adjacent property is incorrect, noting that
the record indicates 1947 as the year of construction. There has been substantial remodeling and it is
now 4 — 5 times larger with huge decks and other site improvements. She repeated information she
received from the assessor that its estimated market value is $783,000 and the taxable market value is
$521,200. She emphasized there is a difference in what can be built on a smaller 50' lot when
compared to a 100' lot. She pointed out their position is that they should not be paying over $9,000/
lakeshore front footage compared to about $7,000 /lakeshore front footage. Mr. And Mrs. Torkelson
stressed the smaller lot is less valuable because the property owner is limited to what improvements
may be done on the property.
Murphy conveyed that the City Council has struggled with the 50' lot situation with the lakeshore
setback requirement and side yard setbacks and acknowledged improvements on the 50' lots are
challenging.
White asked what was the last year's percentage increase on the Torkelson property.
Ms. Torkelson did not have the exact percentage and due to the poor condition of the house, they did
not express any comments about last year's increase. But with the huge, over 38 %, increase for
2005, they had to present their objection. Mr. Torkelson indicated they probably would have to sell
• the property as the house has to have immediate work and does not know what they will be allowed
to do.
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MINUTES OF THE
ORONO LOCAL BOARD OF APPEALS AND EQUALIZATION MEETING
Wednesday, April 21, 2004
7:00 o'clock p.m.
White asked what is the valuation of the property and Ms. Torkelson stated it is $473,000 for land •
value which comes to about $9,000 /foot for lakefront. Mr. Torkelson repeated that adjacent
properties are about $2,000 - $4,000 less per foot for lakefront than their property.
Mayor Peterson asked Davy to return to the Torkelson property for a site visit, meet with them and
listen to their arguments.
White acknowledged there are building constraints with the 50' lots and estimated that such lots can
only support about a 1500 s.f. house, a minimum size house.
Davy summarized the valuation looks at the first 50' at a higher value, then with more footage, the
value drops. Mr. Torkelson disagreed with this statement explaining that the larger properties can
have larger homes with $1,000,000 homes or higher on 100' lots which makes them more valuable
than a 50' lot.
Davy repeated the assessors look at the first 50', than at the 50 -100' values.
Ms. and Mrs. Torkelson stated this results in discrimination against smaller lots with the building
restrictions due to limited space. Ms. Torkelson referred to a recent newspaper ad for a lakeshore lot
with 115' on lakeshore with the asking price of $1,585,000.
Mayor Peterson conveyed her opinion that the most difficult issue to deal with over the past 10 -12
years has been with the residents who have been in the city for a long time who are now at or near •
retirement age with fixed incomes and rising property valuations /taxes. These are the foundation
people who built Orono. Mayor Peterson stated she sympathizes with these property owners who
may be being taxed out of their homes. She told the Torkelson the city is fighting this issue.
Mayor Peterson requested Davy to visit the Torkelson property, as she does not want to lose these
residents who have built the community. She referred to former Mayor Jabbour who was quite a
proponent of this issue, too, in trying to not force residents to leave Orono based on property
valuations.
Ms. Torkelson stated the city never caught their neighbor's house building activities and now has
such a low valuation compared to the Torkelson's property and condition of their house.
With having two appeals from the Tonkawa area with over 30% valuation increase, Murphy
questioned if all 50' lots on the lake are going up 35% this year.
Davy responded that probably not as it depends on the proximity to sales that occurred and certain
properties may already be closer to the market values. He further explained that actually tear -downs
on 50' lots get to the $450,000 - $500,000 category and this is found in Orono, Tonka Bay and
Shorewood, too.
Murphy expressed he is troubled by the thought that there may be other locations in Orono that will
see such increases, citing the off -lake average increase at 7.5 %. is
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MINUTES OF THE
ORONO LOCAL BOARD OF APPEALS AND EQUALIZATION MEETING
Wednesday, April 21, 2004
7:00 o'clock p.m.
Davy responded that he hoped that adjustments on property values were made every year the way
they should have been, but he cannot guarantee that there would be no large increases because, if
sales ratios dictate, they will be faced with making higher adjustments than the average.
Ms. Torkelson stated that in comparison to their neighbors' property values, with their many
improvements, the value has not been raised (per the Internet) which also lists it as being built in
1947.
Davy explained that 1947 is the original construction date and that there is an effective age which is
more reflective of the building with improvements. He offered to provide the effective age to the
Torkelson's. Davy indicated that, if building permits were issued and if viewed by the assessors and
added for improvements, the amounts should be shown on the Internet.
Mayor Peterson encouraged Ms. Torkelson to contact the city staff to get information about what can
and cannot be built on their 50' lot.
Mayor Peterson confirmed that Davy would contact the Torkelsons to get answers to their questions.
Murphy added that they need to understand that 50' lots are selling for $500,000 in the current
market. He concurred with Mayor Peterson that the city is not interested in forcing people out of
town due to the increasing property values.
• Mr. Torkelson concluded by repeating his position that their smaller lot is less valuable because of
the site improvement limitations on it. Mayor Peterson encouraged them to contact the city staff and
perhaps find there is more that can be done on their lot than they assume.
Mayor Peterson thanked the Torkelsons for presenting their information.
Mr. and Ms. Torkelson expressed their thanks to the Board.
6) Gerald and Valerie Walsh, 180 Big Island, 23- 117 -23 23 0036
Mr. Walsh questioned why their property is classified as residential when it actually is a seasonal
property. Davy questioned if it had ever been residential before they purchased the property. Mr.
Walsh replied it had not been a residence and that the city has it classified as seasonal.
Mr. Walsh asked at what point an improvement is added to the property valuation, noting an $8,000
improvement is on the property statement and wondered if it was a value from the septic system
installation.
Mr. Walsh further asked that if the cabin shell is not included in the value, there still was more than a
40% property value increase on top of last year's over 40% increase. He expressed a concern about
what the end value of the cabin will be when it is done and fully on the property statement.
• Murphy asked if the property was on the interior of Big Island. Mr. Walsh replied that the property
was a lakeshore parcel with about 100' of lakeshore, with a $194,000 residential value on an angle lot
about 200' at it deepest point.
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MINUTES OF THE
ORONO LOCAL BOARD OF APPEALS AND EQUALIZATION MEETING
Wednesday, April 21, 2004
7:00 o'clock p.m.
He expressed his concern for being additionally assessed in the future for value already on the tax •
statement. Davy explained the property would be assessed as partially completed according to the
stage it is at on the January 2, 2004 assessment date. Mr. Walsh described the cabin's shell was
completed but had no electrical or plumbing or interior walls completed.
Davy offered to review their property record to determine if the shell was valued, and reiterated the
assessors attempt to take a conservative look at initial construction for estimates of improvements,
especially if the building is just starting and property owners are not able to use it.
White asked for a purchase history from Mr. Walsh who indicated he purchased the property in 1997
for less than 1/3 its current value.
Davy stated the assessors will also review the seasonal versus homestead residential status and
offered to explain the application process to the Walshes, in addition to the property's value.
Mr. Walsh indicated the property had previously been a campground.
Mayor Peterson confirmed the assessor would contact the Walshes to follow -up on the questions
raised.
Davy advised the assessors will contact the Walshes and determine if there is a new value, and if the
property owner is in agreement with the value, then the assessors will inform the Board of Appeal on
its continuation meeting, set for May 10, 2004 with a recommendation for market value reduction.
If the property owners are not in agreement with the assessors' recommendation, they may further
appeal to Hennepin County. Mr. Walsh indicated he could not attend the May 10, 2004 meeting but
that Valerie Walsh will attend if necessary.
Mr. Walsh thanked the Board for their consideration.
Mayor Peterson asked the assessors if any property owner letters were received and should be added
to the record. Davy replied there were no letters received.
Mayor Peterson asked for other comments.
McMillan asked for information about the relationship between land value and the building on it.
Davy explained that the land is valued separately, and is compared to bare land sales or land
indicators of sales with buildings and is compared to similar land values.
Murphy commented that there certainly continues to be a huge gap in understanding what MnDOT
thinks a property is worth and what the community knows the property to be worth.
White remarked, from his experience, MnDOT seeks to appraise property it needs to acquire for road
projects at the lowest property values in an attempt to keep road improvement projects less costly.
Murphy stated that as a community activist he believes that as long as a state agency as large as
MnDOT artificially deflates road construction costs with its lower appraised values, the real costs are •
not known, and if known, would have a negative impact on public approval of road projects.
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MINUTES OF THE
ORONO LOCAL BOARD OF APPEALS AND EQUALIZATION MEETING
Wednesday, April 21, 2004
7:00 o'clock p.m.
White described his family situation when MnDOT acquired his parents' property in the Hiawatha
Avenue Corridor in Minneapolis purchasing it at only the original purchase price with no
consideration given for its equity value. This was before the Uniform Relocation Act provided
moving benefits, so moving costs were also left to the property owners. White stated people like his
parents are decent people who built this state but received reduced land values from MnDOT.
Mayor Peterson emphasized that Murphy's and White's comments about MnDOT land acquisitions
be placed in the record.
Moorse asked for a confirmation of the Board of Appeal and Equalization Meeting reconvening date
and time, and requested the assessors to advise the property owners of the reconvening date and time.
Mayor Peterson confirmed the Board of Appeal and Equalization Meeting be reconvened on May 10,
2004 at 6:30 p.m.
ADJOURNMENT
Murphy moved, White moved, to adjourn the Orono Local Board of Appeal and Equalization
Meeting on April 21, 2004 at 8:40 p.m. VOTE: Ayes 4, Nays 0.
ATTEST:
Linda S. Vee, City Clerk
Page 11 of 11
Barbara Peterson, Mayor