Loading...
HomeMy WebLinkAbout04-27-2009 Board of Appeal and Equalization MinutesMINUTES OF THE ORONO BOARD OF APPEAL AND EQUALIZATION Monday, April 27, 2009 • 6:00 o'clock p.m. ROLL The Orono Board of Appeal and Equalization met on the above - mentioned date with the following people present: Mayor James White, Council Members James Murphy, Lili McMillan, Cynthia Bremer, and Doug Franchot. Representing Staff were Ron Olson, Finance Director, Hennepin County Appraiser Nathan Stulc, and Recorder Jackie Young. Mayor White called the meeting to order at 6:32 p.m. APPROVAL OF MINUTES — APRIL 15, 2009 Murphy requested the minutes on page five be amended to reflect the following: "Murphy stated the City Council does look at trends, and that if the trends are down, it could create some tax breaks for some of the residents next year." Bremer moved, McMillan seconded, to approve the minutes of the Orono Board of Appeal and Equalization of April 15, 2009, as amended. VOTE: Ayes 5, Nays 0. COUNCIL ACTION ON ASSESSOR'S RECOMMENDATIONS White noted the City Council has received a report from the Assessor's Office regarding the relevant • properties. Murphy noted all of the property owners were in attendance at the April 15th meeting and that the Assessor's Office was directed by the Council to contact each of the residents regarding their valuation. John and Roberta Henrich, 4125 Highwood Road, PID 07- 117 -23 -21 -0033 John Henrich stated he did receive a voice message from Assessor Stulc stating that he visited the property three years ago and that it would not be necessary to revisit the property and that his valuation would not change. Henrich indicated he had the impression when he left the last meeting that this reconvened board of appeal and equalization would be meeting on Wednesday and not tonight. White noted the actual meeting date and time were formally set at the end of the first board of appeal and equalization and that the meeting was posted in various public places throughout the City. Stulc stated he reviewed the market analysis he was given at the last meeting and that he contacted the property owner to discuss the comparables. Stulc stated he determined no change was necessary based on the information he was provided and that he would review any new information that was presented tonight. Stulc noted the Assessor's Office did review the property in 2005. Henrich indicated he disagrees with Assessor Stulc on his version of what occurred. Henrich stated he spoke with Tom Kunik from the Assessor's Office and was told that Nate Stulc would be contacting him. Instead of personally speaking with Assessor Stulc, he left a voice message indicating that the valuation • would not be changed. He did not have any discussion with anyone from the Assessor's Office other than receiving two voice messages. PAGE 1 n T MINUTES OF THE ORONO BOARD OF APPEAL AND EQUALIZATION Monday, April 27, 2009 6:00 o'clock p.m. • Henrich stated his property is being compared with properties on Smith Bay and Spring Hill Road. Mrs. Henrich distributed water quality information and pictures of their back yard to the council. Henrich stated due to the poor water quality, they cannot swim, cannot use the lake, and the Assessor's Office elected not to take that into consideration. Henrich pointed out the comparable properties have views that look out over two forests while his property overlooks swamp that contains a number of noxious weeds. Mrs. Henrich distributed their comparables to the City Council. Henrich stated he feels the comparables selected by the Assessor's Office are not appropriate since his property is being compared to properties located on Highwood, Smith's Bay and Casco Point. White asked whether the Assessor's Office visited Mr. Henrich's property. Stulc indicated he visited properties on Highwood. Henrich stated Highwood Road does not compare to any of the comparables chosen by the Assessor's Office. Henrich stated he provided a comparable to the Assessor's Office that is located within one mile of his property and another comparable that is located on Forest Lake and is on a channel. In addition, all of his sales are located in the Mound School District while the Assessor's comparables are located in the • Orono School District. There is only one listing on Highwood at the present time for $600,000. Henrich indicated he does not feel the assessment by the Assessor's Office is fair. White stated he agrees with some of the points that Mr. Henrich has raised and that it appears the averages provided are pretty close in valuation. White stated he would be in favor of reducing Mr. Henrich's valuation from 1.709 million to 1.683 million based on the comparables provided by Mr. Henrich. Henrich noted the number that Mayor White used was just one of the three and is not the average. White indicated he added up all three values and that was the average. Henrich pointed out that the numbers being used by Mayor White are not his comparables but rather the comparables from the Assessor's Office. Henrich requested the Council review the color pictures he has provided. Based on the 1.7 million for the house on Smith's Bay and the amenities his house is lacking, his valuation should be reduced to 850,000. White stated he does not feel the valuation should go that low. McMillan asked whether the information that was distributed to the Council tonight was also provided to the Assessor's Office prior to tonight's meeting. Henrich stated it has been, in addition to the other comparables that he provided at the last meeting. One of the comparables is located within one -half mile of his house and two are properties comparable in size that are valued under 1.2 million. • PAGE 2 E MINUTES OF THE ORONO BOARD OF APPEAL AND EQUALIZATION Monday, April 27, 2009 6:00 o'clock p.m. Murphy noted the mayor was reviewing the fair market analysis that was provided. Henrich stated those are the Assessor's numbers. Since the Assessor would not discuss his comparables, he was forced to use the Assessor's comparables and illustrate why those comparables should not be used. Murphy stated he was under the impression from the previous board of appeal and equalization that the Assessor's Office would be contacting every one of the residents that had an issue with their valuation, and that in his view a voice mail message is not adequate. Murphy stated he had assumed that in the majority of the cases the Assessor's Office would be visiting the properties personally and discussing the valuation with the residents. 'Murphy stated he does not feel qualified to determine a valuation tonight and recommended that the Assessor's Office review Mr. Henrich's information and visit the property. McMillan stated the Board is here to ensure that the residents receive a fair assessment and that it appears there was a gap in communication. McMillan agreed that as the next step the Assessor's Office should contact the residents and discuss their valuations with them, and that if the property owners are not satisfied with their valuation after that, that they could appeal their valuation before Hennepin County. McMillan indicated she is not aware whether water quality is taken into consideration when valuing properties, but that it appears that Assessor Stulc should review the information and contact the residents • personally. Mrs. Henrich pointed out that their property is also located on a bluff where the Assessor's comparables consist of flat lots. Their property is also smaller in size. McMillan asked when the appeals would be heard by the county. Stulc stated June 3rd is the deadline for applications to go before the County. Henrich reiterated that the Assessor's Office did not review his information nor visit his property. Henrich stated in his view his house is not of the same caliber as the houses chosen by the Assessor's Office. Murphy indicated he is in agreement with Mr. Henrich and that he has not had an opportunity to rebut the valuation provided by the Assessor's Office. Murphy requested the Assessor's Office visit the property and review all the information. Stulc stated he would contact Mr. Henrich tomorrow. Heather Johnstone, 3285 Crystal Bay Road, PID 17- 117 -23 410015 Johnstone indicated she did not receive a call from the Assessor's Office and that she also had the understanding that the meeting was scheduled for this Wednesday. She contacted City Hall earlier today and was told that the meeting was scheduled for tonight. Johnstone noted three comparables were • provided last time but that she did find another comparable selling for $649,000 located on 2903 West Wood Road. The other comparables are located on Crystal Bay Road. PAGE 3 .rz . MINUTES OF THE ORONO BOARD OF APPEAL AND EQUALIZATION Monday, April 27, 2009 6:00 o'clock p.m. • Murphy noted Mrs. Johnstone was expecting to be contacted and did not receive a phone call. The City Council requested Assessor Stulc contact Ms. Johnstone. Jon Hofer, 3339 Crystal Bay Road, PID 17- 117 -23 -41 -0021 Hofer stated he also did not receive a call and that he was waiting until today before he was going to call the Assessor's Office. Hofer indicated he was not aware the meeting was tonight until later today when Ms. Johnstone informed him of it. Hofer stated he would like to know what the statute is that allows the Assessor's Office to go back to 2007. Hofer stated his understanding of the statute is that the valuation is supposed to reflect the valuation as of January 2, 2009. Stulc stated the valuation is as of January 2 "d and that the Department of Revenue requires that the valuations be based on sales from October 1, 2007 to September 30, 2008, which is the time period that was reviewed. Franchot asked whether those values are adjusted or whether they are treated as hard numbers. Stulc stated they are treated as hard numbers. U Franchot asked whether the Assessor's Office takes into account changes in the market up or down. Stulc stated the majority of the sales in Orono happened from October 30, 2008 to January 2, 2009, and if the trend was downward, the sales would reflect that. Stulc stated the Assessor's Office did not have enough information for those three months based on the limited number of sales. White stated the Assessor's Office is giving the property owners an additional nine months of sales to look at by extending that time frame. Hofer stated he also is not aware of what the comparables were used by the Assessor's Office since he was not contacted. Hofer noted all of his comparables from Mound were not taken into consideration because they were not within the required time period. There were three properties in Orono that he provided as comparables that all sold for the same or less than what his house is valued at. Mr. Hofer indicated his house is not as nice as those houses but yet his residence is valued at $79,000 more. Hofer commented that he is hesitant about meeting with the Assessor since it appears that his mind is already made up. McMillan stated the Council would like to ensure that Mr. Hofer has received a fair assessment process and that he should receive contact from the Assessor's Office if that is what he would like. Franchot stated it was his understanding that the Council has the responsibility to adjust the price if they feel it is incorrect. • Hofer stated he does have three comparables. PAGE 4 • • r� LJ , 0. MINUTES OF THE ORONO BOARD OF APPEAL AND EQUALIZATION Monday, April 27, 2009 6:00 o'clock p.m. White stated he would like the Assessor's Office to visit the property and review Mr. Hofer's comparables. Murphy assured Mr. Hofer that the City will stay on top of this issue and make sure that the Assessor's Office contacts the three property owners. Hofer indicated he is willing to meet tonight with Assessor Stulc. Johnstone asked whether a current market analysis is valid to use. Stulc stated he has been given many market analyses for review. Johnstone stated the Assessor also said at the last meeting that there were not enough foreclosures to utilize. Franchot stated a foreclosure is not considered an arm's length transaction, which is why they are not used by the Assessor's Office. McMillan asked whether the Board would be reconvening. Stulc noted the final date that the meeting could be reconvened is May 5`h. Stulc recommended the meeting be scheduled for Monday evening. . ADJOURNMENT McMillan moved, Franchot seconded, to recess the Orono Board of Appeal and Equalization at 7:09 p.m., and to reconvene the meeting on Monday, May 4`h, at 6:00 p.m. VOTE: Ayes 5, Nays 0. ATTEST: Linda S. Vee, City Clerk Ja s M. White, Mayor PAGE 5