HomeMy WebLinkAbout04-16-2008 Board of Appeal and Equalization Minutes1
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2008 LOCAL BOARD OF
Wednesd
7:00
ES OF THE
PPEAL AND EQUALIZATION
, April 16, 2008
clock p.m.
The'Orono Board of Appeal and Equalization met on the above - mentioned date with the following
members present: Mayor James White, Council'Members James Murphy, Lili McMillan, Cynthia
Bremer., and David Rahn. Representing Staff were Finance Director Ron Olson, Hennepin County
Senior Appraiser William Davy, Hennepin County Appraiser Nathan Stulc, Mike Gaffron, and
Recorder Jackie Young.
Mayor White called the meeting to order at 7:07;p.m.
APPEALS
White stated the purpose of tonight's meeting is to help property owners determine whether they are
being assessed a fair valuation for their property, White noted the Orono Board of Appeal and
Equalization does not determine whether the person is being taxed fairly according to his or her
income. White indicated this meeting will be recessed later tonight in order for the Board to receive
any subsequent reports from the County Assessolr.
Mr. Davy, Hennepin County Assessor's Office, 'Stated the Assessor's Office, in determining this year's
valuations, took actual sales starting from October 1, 2006, and going through September 30, 2007.
The City experienced 77 sales in 2007. The sales prices are then compared to other homes throughout
the City to determine whether those homes are of a certain ratio as compared to the market price
received. The City is required to meet a medium ratio of the sales, which is 95 to 96 percent of the
sale price. In 2007, half of the homes fell below '95 percent and half were above 95 percent. In 2008,
Davy noted that the majority of the homes within the city were valued at the 94, 95 percent ratio.
Davy stated the sales in 2008 will help determine what the values will be in 2009. Davy noted that we
are in a different market and that may require a reduction in 2009 valuations.
Murphy noted the valuations are based on
Davy stated people who did not experience an
have seen the taxable limited value increase in
cap for 2008 was kept at 15 percent. In 2001,
Legislature extended it to 2009. Davy indicat
2009.
Davy explained the process that would be fo
opportunity to discuss their valuation. Davy
process, with the third step being to appear b
1. John and Cheryl Uran,120 Big
Mrs. Uran stated their estimated market value is
$525,000. The back of their property is located
the boats congregate on the weekends. Approxii
sales and not on what the houses are listed at.
crease in their actual estimated market value may .
me cases. As determined -by the state legislature, the
cap was scheduled to end, but the Minnesota
that every house will be at the full market value for
d tonight, with each property owner being given the
I tonight's meeting is the second step in the appeal
the Hennepin County Board of Appeal.
PID 23- 117 -23 22 0018
'00,000 and in their view it should be reduced to
an area of Big Island called Cruisers Cove where all
.tely 100 boats congregate there starting on Friday
PAGE 1 of 18
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MINUTES OF THE
2008 LOCAL BOARD OF APPEAL AND EQUALIZATION
Wednesday, April 16, 2008
7:00 o'clock p.m.
afternoon and going through Sunday. Due to the loud music, they are unable to be outside on the
weekends.
The property has been up for sale for over three years and the potential buyers are turned off by the
loud music. Uran indicated they have spoken with the water patrol, gone before the LMCD, but not
much has been done to curtail the activity. The loud music and congregation of boats occurs every
single weekend throughout the summer.
Mrs. Uran indicated they initially listed it for $900,000 three years ago and received one offer for
$525,000 last year. The property consists of 350 feet of lakeshore, but only 25 feet is useable and the
rest is cliff. Uran indicated they also have to share the 25 feet with the neighbor, who has a 10 -foot
easement.
McMillan asked whether they have spoken with the assessor.
Mrs. Uran stated they have. The cabin is very small and consists of 585 square feet. They have been
told by the assessor that the primary reason for the valuation is due to the land and not the home.
Currently they do not have it listed because they do not have it for sale during the winter. Uran stated
it is difficult to compare this property because there are no comparables.
McMillan concurred that this is a unique situation given its location.
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Mr. Uran stated the music goes until 2:00, 3:00 o'clock in the morning and they have been told by the
Water Patrol that they cannot issue tickets. •
McMillan asked if the assessor has visited the property'recently.
Davy stated approximately four or five years ago they visited the island. At 475 Big Island there was
a sale last year, which was used as a comparable. Davy stated there are not many sales on Big Island
and that this property did not experience an increase the year before.
McMillan rioted the use of the land on Big Island is also seasonal.
Murphy commented this is a unique situation and that the City of Orono is concerned about what
happens on Big Island. Murphy recommended the assessor review this property further.
The Orono Board of Appeal directed the Hennepin County Assessor to visit the Urans' property and
review their information.
2. John Weist, 1920 Concordia Street, PID 17- 117 -23 23 0006
Weist stated his property valuation for 2008 was $285,000. He has resided in the house for
approximately 35 years and feels that a valuation of $235,000 would be more reasonable. The
assessor visited the property in 2002 and was told that his property was valued higher given the
surrounding million dollar homes. Weist stated he does not have lakeshore and the house consists of
1100 square feet. Weist commented he is unsure who would purchase the property given the small
size of the house. •
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Weist stated the Star Tribune ran an article on pi
home went up 23.21 percent. His property valu
indicated he has not done any improvements to i
Weist requested the assessor visit the property.
Davy indicated they would visit the property.
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erty valuations, which indicated that the average
)n has gone up 134 percent over the years. Weist
property.
3. Ted Capra, 3534 Ivy Place, PID 20- 117 -23 42 0019
Capra stated in 2004, there was a house located
have raised approximately $1200 to $1500 a ye;
and he was informed by the Assessor's Office f.
worth more. Prior to the house being removed,
that as a write -off. Capra noted his taxes are no
reduction in his taxes with the removal of the hi
has been on the market for the past year for no
i the property and his taxes were $5200. His taxes
The house was removed in approximately 2004,
with the house being gone, the land is now actually
house was valued at $100,000 and he did receive
at $9000 for an empty lot and he did not receive a
,e. The land is currently valued at $1.2 million and
Capra noted his neighbor pays $11,000 on his lot with a house that is worth $300,000 to $400,000.
Bremer asked how wide his lot is.
Capra stated it is 106 feet wide and 240 feet
on the lot, his taxes will increase to $20,000.
Davy stated the Assessor's Office is not able to
Capra's neighbor.
Capra expressed concern that once he puts a house
taxes and that he is not familiar with Mr.
Capra noted a house for sale on Casco Point paid $8000 in taxes, which is $1000 less than what he has
to pay. The house consists of 5800 square feet and was constructed in 1975.
Davy stated he would need to look at it further
White stated that is an interesting situation and
Capra stated the address of that house is 2975
go forward with the construction of his new h
4. John Quam, 3760 Northern Avenue, l
Quam indicated he resides in the Navarre area.
the property value is closer to $230,000. Quam
in his opinion his property is more comparable t
Orono properties. The street is unimproved and
the Assessor's Office look into it.
;o Point Road. Capra indicated he is not willing to
until his tax situation is resolved.
#17- 117 -23 34 0050
he estimated market is $298,000 and in his opinion
Dted he resides in the Mound School District and that
properties in Spring Park or Mound rather than
.oes not have lighting.
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MINUTES OF THE
2008 LOCAL BOARD OF APPEAL AND EQUALIZATION
Wednesday, April 16, 2008
7:00 o'clock p.m.
If the property were listed today, he would not be able to sell it for more than $230,000, which is the
asking price for similar properties in Spring Park and Mound.
Quam stated the house was constructed in 1983 and consists of 1430 square feet. There have no
improvements made to the house since it was built and the-basement is unfinished. It consists of three
bedrooms and -two baths.
Davy stated the Assessor's Office would do a visit to the property.
Murphy asked whether the Assessor's Office would look at properties in Spring Park in a situation like
this.
Davy indicated they can.
The Orono Board of Appeal directed the Hennepin County Assessor to visit Mr. Qua_ m's property and
review his information.
5. Dan O'Donoghue, 1770 Shadywood Road, PID #17- 117 -23 210023
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O'Donoghue stated his very first tax statement for the house was in 1999, when he purchased the
property for $300,000. His most recent assessment was for $900,000, which is a 300 percent increase
in the past ten years. O'Donoghue indicated he has concerns that he is being taxed out of his house.
O'Donoghue stated his next door neighbor last year was assessed at 952,000 and he purchased the •
property for $1.3 million, which was 20 to 30 percent over market value. O'Donoghue stated these
numbers do not reflect the true market, and to experience a 300 percent increase in ten years, leaves
one wondering where it will end.
O'Donoghue stated his neighbors, with comparable lots, are fairly equal, but the homes are valued
significantly different and he is unsure why that is. No improvements have been made to the lot since
he purchased it. O'Donoghue requested the Assessor's Office visit his property.
McMillan noted the interior is taken into consideration when valuing the various properties.
The Orono Board of Appeal directed the Hennepin County Assessor to visit Mr. O'Donoghue's
property and review his information.
6. Tom Bernard, 3470 Birch Lane, PID #08- 117 -23 43 0001
7. Judy Oliverius, 3490 Birch Lane, PID #08- 117 -23 43 0002
Bernard indicated he is having the same issue as his neighbor and requested the two properties be
addressed together. Bernard distributed some information to the Board.
Bernard stated in his opinion he feels the property is worth $740,000. His property has 40 feet of.
shoreline. There is an assessed market land value of $608,000 listed on the Hennepin County web
site. The property consists of 12,958 square feet and his back lot line is 102 feet wide. His neighbor •
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2008 LOCAL BOARD OF
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has 45 feet of shoreline and her property on the
Oliverius land is $640,000.
To the west of his property, the properties be(
Judy's properties are pie- shaped.. The square
the length of the property dramatically increa
for land value.
Bernard stated the main difference between the
they are pie shaped. The reason for the pie sha]
in Judy's dock and his dock virtually touching i
undesirable feature. Bernard indicated neither
the limited space because it would encroach on
to protrude further out on the other lots.
Bremer stated those lots are also bigger, which
Bernard stated the length of a dock is limited to
McMillan pointed out the LMCD concurs that 1
Rahn asked whether there is a difference in the
Bernard stated the structures range from new to
of land value. Bernard stated if the $550,000 ni
decrease by $58,000 and for Judy's property it
McMillan noted these two lots do have more
Rahn stated some of these issues are difficult to
Oliverius stated in her opinion it is a fairness
Davy stated he did drive by the property and tl
to account for the shape of the lot but does not
typically issues relating to shallow water, local
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April 16, 2008 ,
lock p.m.
end is 100 feet wide. The market value of the
:50-foot rectangular lots, where his property and
age also increases to the west for each lot because
The majority of those lots are assessed at $500,000
two properties and their neighbors' properties is that
is the natural configuration of the lake, which results
.e another if they are extended out, which is an
operty can have anything but a dock and a boat due to
ie five foot setback. Bernard stated the docks are able
for a larger dock.
60 feet.
shaped lots are more limited in dock length.
residences. Bernard indicated he is speaking only
-r was applied to his lot, his valuation would
A decrease it by $90,000.
footage.
into the valuations.
the Assessor's Office does try to make adjustments
:e into account issues relating to docks. Davy stated
i, and size would be taken into consideration.
Bernard noted both of their residences meet the City's setback requirements, but there are two brand -
new houses within the past five years that have been constructed, which are much nicer than his
residence, that have been granted variances.
Davy stated the Assessor's Office would review the land values in that area.
8. Rob Weins, 1425 Bay Ridge Road, PID #10- 117 -23 34 0017
Weins stated he resides on the corner of two busy roads, County Road 15 and 51, and he would
request that his land value be appraised the same as other comparable lots located on two busy roads.
PAGE 5 of 18
MINUTES OV THE
2008 LOCAL BOARD OF APPEAL AND EQUALIZATION
Wednesday, April 16, 2008
7:00 o'clock p.m.
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Murphy asked whether anyone from the Assessor's Office has visited his property.
Weins indicated no. The value of the land, in his opinion, does not take into account County Roads 15
and 51. There is another lot off of County Road 15 on Heritage Lane where the land value is,
substantially lower.
Davy indicated they would review his land value. Davy noted they have made an adjustment for the
fact that the property is located on two busy highways.
9. Dan Regan, 3410 North Shore Drive, PID #08- 117 -23 43 0017
Regan stated he would like to see his taxes be similar to the taxes paid by his neighbors. Regan
indicated a neighbor's house sold in October of 2005 for $2.1 million and its market value is $1.7.
Three of his neighbors reside on two acre lots and this lot is one -half acre with County Road 51
between his property and the lake. Regan indicated in his opinion his value should be half of what his
neighbors are.
Regan requested the Assessor's Office visit his property.
The Orono Board of Appeal directed the Hennepin County Assessor to visit Mr. Regan's property and
review his information.
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10. John Hollander, 200 Hollander Road, PID #25- 118 -23 44 0015
Hollander stated he has been a licensed real estate broker since 1989 and has attended over 500
continuing education classes. Hollander stated in his opinion the value on his residence is too low,
noting it has not been visited since 1987. A considerable amount of work has been completed on the
structure and approximately $400,000 has been put into the improvements. In 2004, an appraisal was
completed on the property and the home was appraised at $400,000 for the house alone. The land has
been assessed by the County at $360,000 and the structure at $2000.
Hollander requested the assessor visit his property. Hollander indicated approximately 19,080 hours
of work has been put into the property.
The Orono Board of Appeal directed the Hennepin County Assessor to visit Mr. Hollander's property
and review his information.
11. Jule Hannaford,1220 Bracketts Point Road, PID #11- 117 -23 32 0018
Hannaford stated he is objecting to the increase in his assessed market value over the past year, which
was approximately eight percent.
The Orono Board of Appeal directed the Hennepin County Assessor to visit Mr. Hannaford's property
and review his information. •
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2008 LOCAL BOARD OF
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7:00 i
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7, April 16, 2008
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12. Diane Erichsen, 4225 Watertown Road, PID #31- 118 -23 13 0015
Erichson stated she has 5.36 acres, which was assessed at $473,000. A look at other residences along
Watertown Road show complete discrepancies in the values. Erichsen stated 3855 Watertown Road
sold October 6, consists of 19.17 acres, and their valuation amounts to $28 an acre. 3925 Watertown
Road is assessed at 12.14 acres, which is $22.00 an acre. 4025 Watertown Road has 13.07 acres and is
assessed at 630,000, which is $48 an acre. Erichsen stated her land is valued at $84,000 an acre.
Erichsen indicated to her knowledge someone his reviewed the property. Approximately one -half of
the property is swamp land and her property is the lowest property on Watertown Road. Erichsen
indicated both Watertown Road and the Kokesh Farm Road feeds into her property. The actual dry
land is approximately 1.5 acres. After the construction of Kokesh Farm Road, the runoff comes very
close to her residence even though she brought her concerns to the attention of the city engineer.
Erichsen stated her property is valued as one of the highest on Watertown
Erichsen indicated other comparables include 5,'
$215,000. Erichsen indicated she has not revieN
swampy as her property. Another comparable i
stated as it relates to property value decreases, a
of 2007, 7.74 acres, was assessed at $700,000 ai
value.
5 Creekview Green, four acres, which sold for
;d but the property but she is certain it is not as
Deer Creek Road, 10 acres, $200,000. Erichsen
.ouse at 585 Brown Road, which sold in November
I sold for $550,000, a 21 percent decrease in the
• Erichsen stated the land values are dropping in the area and that the discrepancies in land value need to
be reviewed. Erichsen stated she has a five acre minimum and is unable to sell off any of the land and
that her valuation is not comparable to other similar properties, especially given the swampy nature of
her land.
Murphy asked how the culvert was installed and whether Ms. Erickson was consulted on that prior to
the culvert going in.
Erichsen stated she did raise some concerns regarding the drainage and that the developer was directed
to put in some holding ponds, which unfortunately drain into her property. Erichsen stated in her
opinion she should not be assessed for 5.73 acres "of land when she cannot use the majority of it.
The Orono Board of Appeal directed the Hennepin County Assessor to visit Ms. Erichsen's property
and review her information.
13. William Wyatt, 4235 County Road 6,
Wyatt illustrated on the overhead the increases h
since 1999 to the present. The house is 28 years
Mr. Davy has agreed to reduce his value by six I
#31- 118 -23 12 0013
has experienced in his assessed market value
Id and consists of 1900 square feet. Wyatt stated
rcent for the 2008 value.
Wyatt indicated his next door neighbor has'twice as much land but it is divided into two lots. The
valuation in 2007 was $583,000 for his property and 639,000 for his neighbor's property. In 2009,
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MINUTES OF THE
2008 LOCAL BOARD OF APPEAL AND EQUALIZATION.
Wednesday, April 16, 2008
7:00 o'clock p.m.
Wyatt indicated his value increased to $659,000 and his neighbor's valuation was reduced to
$468,000.
Wyatt stated the valuation process should be more structured and that the values appear to be rather
inconsistent. Wyatt noted an appraiser has recently done an appraisal and has appraised his residence
at $480,000.
White asked what Mr. Wyatt's valuation is at.
Wyatt indicated it was originally at $655,000 but was reduced to $595,000 by Mr. Davy. Wyatt stated
he would like his valuation lowered further to match his neighbor's.
The Orono Board of Appeal directed the Hennepin County Assessor to visit Mr. Wyatt's property and
review his information.
14. Don Klelley,1670 Shadywood Road, PID #17- 117 -23 210015
Kielley stated his home is located off of County Road 19 just before the intersection, with County
Road 51. His property has been reappraised three or four times since he has purchased the property.
Kielley indicated the current structure has dry rot and has a very small 10' x 12' basement. An
architect has recommended the house be torn down. Kielley requested his valuation be reduced.
The Orono Board of Appeal directed the Hennepin County Assessor to visit Mr. Kielley's property •
and review his information.
15. Charles Ballard, 3315 Crystal Bay Road, PID #17- 117 -23 410017
Ballard stated he has spoken with a number of his neighbors regarding their valuations. Ballard noted
his value increased by nine percent, with the majority of his neighbors also experiencing an increase
and some in excess of nine percent. The house was built in 1920, consists of 1200 square feet, and has
had a few minor improvements. Ballard indicated the house down the street is approximately three
times the size, was constructed in 2006, and sold for 40 percent below what they were originally
asking for. The valuations for the Crystal Bay Road neighborhood have gone up from a taxable
standpoint but from a market value have experienced a decrease. Ballard noted there are a couple of
properties in the neighborhood which have been on the market for over, a year.
Ballard indicated he is not aware if the Assessor's Office has visited his property.
The Orono Board of Appeal directed the Hennepin County Assessor to visit Mr. Ballard's property
and review his information.
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2008 LOCAL BOARD OF APPEAL AND EQUALIZATION
Wednesday, April 16, 2008
7:00 o'clock p.m.
16. David Dalvey, 1270 Wildhurst Trail, PID #07- 117 -23 310015
Dalvey stated he has had owned three different houses in Orono over the past 13 years and that he
purchased his recent house in 2005. In three years his taxes have gone up 46 percent. Dalvey stated
the base of the house has doubled even though there have been no improvements made to the house.
Dalvey commented the methodology by which properties are appraised should be reviewed and
revised given the large window of time between the current state of the market and sales that occurred
earlier in 2007.
The Orono Board of Appeal directed the
and review his information.
Dalvey asked whether other cities utilize the
pin County Assessor to visit Mr. Dalvey's property
White stated the methodology used by the Asse,
Legislature. White noted the City of Orono has
200.
McMillan commented the City has very little co:
must be followed.
Murphy stated between the county and school's
Orono's tax increase is the lowest year after yeai
Market, the City is taking a very hard look at nei
McMillan stated due to Lake Minnetonka and
holding fairly steady and are not being hit as 1
commented that the Orono area is still a very
methodology.
's Office is determined by the Minnesota
lowest tax rate for cities with a population of over
over the methodology used and the process that
)rtion of an individual's tax statement, the City of
Murphy stated due to the state of the real estate
year's budget to see where reductions can be made.
e City's low density, the City's property values are
rd as some other areas of the state. McMillan
;sirable area to reside in.
17. Richard Crosby, 2705 Walters Port Lane, PID #21- 117 -23 23 0043
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Crosby stated he appeared before the Board last
Lake Minnetonka are stable. In fact, prices have
purchased his house in 2005.. Currently there a
market since 2005 which have not sold, and the
down approximately 15 percent and down apprc
Crosby stated his neighbor's house is larger, sij
less in taxes than he does. Another neighbor is
a number of comparables that are paying less tl
Crosby noted the assessor viewed his property
what is being done to the taxpayers of Orono.
dramatically but yet the taxpayers are not getti
fear and would disagree that the prices on
been reduced dramatically. Crosby indicated he
houses on Lake Minnetonka that have been -on the
prices have been reduced. Crosby stated his house is
,imately 10 percent from last year.
it size lot, and pays approximately $1100, $1200
ding approximately $500 less. Crosby noted he has
what he is.
t year. Crosby commented he is really disgusted by
.e property values in Orono have been reduced
any relief.
PAGE 9 of 18
MINUTES OF THE
2008 LOCAL BOARD OF APPEAL AND EQUALIZATION
Wednesday, April 16, 2008
7:00 o'clock p.m. •
Crosby noted the Assessor's Office had this home listed for three bathrooms since 1997 but they only
have two, but yet they did not get any reduction for the third.
Crosby stated he lives on a private road and is required to maintain it. The Assessor's Office informed
him that it is a luxury to live on a private road: Crosby stated it is not a luxury to live on a private road
when the residents pay for the road and the maintenance of it. I
The Orono Board of Appeal directed the Hennepin County Assessor to visit Mr. Crosby's property
and review his information.
Davy stated to his knowledge they had a three- quarter bath listed on the bottom level which should
have been listed on a different floor. Davy indicated a three - quarter bath would probably have a value
of around $2,000.
Crosby stated Minnesota overall is a wonderful state but the tax situation is out of hand and that the
taxpayers are not receiving much in return.
18. Jane Price, 3393 Crystal Bay Road, PID#17 - 117 -23 44 0020
Price stated she is frustrated over her taxes and that she has experienced a 23 percent increase in 2008
and a 16 percent increase in 2009. Price stated a number of homes in her area have not sold for over a
year. A house that was listed at $1.75 million was foreclosed upon and is now listed by the bank at
$953,000. Price stated she does not feel she would be able to list her property at what her valuation is •
at.
White asked how old her house is.
Price indicated it is approximately 30 years old, with approximately 1800 square feet. Price noted.
they have a busy road in front of their house and that the houses in their neighborhood are simply not
selling.
The Orono Board of Appeal directed the Hennepin County Assessor to visit Ms. Price's property and
review her information.
19. Ed and Ruth Garlock, 1179 Elmwood Avenue, PID#07 - 117 -23 14 0030
Garlock stated he has resided in his house for 38 years and the house consists of 1200 square feet. His
valuation had increased $140,000 in the past year and that he has a concern about the number of
foreclosures that are occurring.
Davy stated Mr. Garlock's taxable limit could have increased that amount but that he would visit the
property.
The Orono Board of Appeal directed the Hennepin County Assessor to visit Mr. Garlock's property
and review his information.
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2008 LOCAL BOARD OF �PPEAL AND EQUALIZATION .
Wednesday, April 16, 2008
7:00 o'clock p.m.
20. Sheryl Morrison, 1525 County Road
Morrison stated she did speak with someone at
information to the Board regarding some water
noted the entire exterior needs to be ripped off,
the estimate to repair the house is $460,000.
Davy noted there are a number of homes in
problems.
Morrison stated the experts believe the home ca
reduced by approximately 20 percent or $120,01
to the amount of damage that needs to be repair
house at the present time. Morrison noted their
Morrison indicated they would be obtaining an
reduced for the past two years.
Murphy asked whether the Assessor's Office
Davy stated they are aware of the situation. TI
recognized, is to reduce the valuation by the cc
people have gone for two or three years before
the costs are incurred to repair the damage, all
but that the next year it would go back to the fi
PID #26- 118 -23 33 0033
e Assessor's Office. Morrison distributed
image their house has experience recently. Morrison
number of the interior walls require replacement, and
County that have experienced water intrusion
be repaired and will be livable. The value has been
I but the value is still $550,000. Morrison stated due
1, it is unlikely that anyone would pay that for their
alue last year was $925,000.
and that they would like their taxes to be
in receipt of this information.
policy of Hennepin County, once the problem is
to repair the damage. Davy stated a number of
te situation is resolved. Davy indicated the year when
'those costs would be taken off the value for that year,
market value.
Morrison stated she is unsure whether the reduction in the market value takes into account the
diminution of the property. Morrison indicated they do intend to repair the damage and would be
obtaining an appraisal.
21. Kevin Dulin, 1785 Concordia Street, )�ID#17- 117 -23 22 0016
Dulin stated he is planning on demolishing his current residence this summer and rebuilding. The
estimated market value of the property is $1.6 million and the limited market value is $1.43 million.
Dulin stated he has resided in the property since 1993. Up until 2000, the values did not deviate, and
then in 2000 the estimated market value has increased ranging from 20 percent to nine percent, but has
consistently been at 15 percent. Dulin stated he would like to get the valuation correct of his property
before to razing the current residence.
Dulin stated the problem in the area is that there are four empty homes in the area. Two of the homes
went to auction and are now for sale again. Dulm stated he would like to bring the two values back
into line but that presently there is a ten percent difference.
The Orono Board of Appeal directed the Hennepin County Assessor to visit Mr. Dulin's property and
review his information. 1
PAGE 11 of 18
MINUTES OF THE
2008 LOCAL BOARD OF APPEAL AND EQUALIZATION
Wednesday, April 16, 2008
7:00 o'clock p.m.
Dulin noted since 1993, property values for the City have gone up 10 percent, Hennepin County has
gone up over 8 percent, and the Metropolitan Council has increased 20 percent.
22. Sonja Hutchinson/Richard Rohrer, 1424 Baldur Park, PID #08- 117 -23 34 0013
Rohrer stated his situation is similar to the other person who spoke earlier from Birch Lane and that
his lot is just around the corner from theirs. Rohrer stated in his view the root of the problem is that
his limited market value is the same as the estimated market value. Some of the other properties in the
neighborhood are at 75 to 80 percent of the estimated market value for their limited market value.
The Orono Board of Appeal directed the Hennepin County Assessor to visit Mr. Rohrer's property and
review his information.
23. Steven Snyder, 2715 Pence Lane, PID 21- 117 -23 32 0007
Snyder distributed some information regarding his valuation. Snyder stated he did speak with
Mr. Davy and they reviewed the 22 properties that have sold over the past year and eliminated the
properties that were not comparable. Essentially the properties, varied in a number of aspects but they
were able to identify four properties in the $3 million to $4 million range that would serve as a
comparable.
•
Snyder indicated he utilized a software program called Zillow, which performs a statistical analysis •
and essentially algorithmically adjusts the valuations. Based on the analysis done by Zillow, an
estimated market value of $3,309,965 was arrived at. Synder stated he then did an analysis of the
other comparable properties, which showed that his property was valued significantly higher.
Davy stated he will check on the 1000 Wildhurst Trail comparable and that it may be possible that it is
a water damaged house.
24. Cathy Lee, 1965 Eagerness Point, PID #18- 117 -2314 0009
Lee stated their house was constructed in 1954 and an addition was added at some point. The house is
at the point where it would be torn down if someone else would purchase the property. The majority
of the value has been placed on the land. Lee stated in spite of a flat real estate market, their valuation
has continued to increase to $901,000 and will soon be a million dollars. No improvements have been
done to the house or land.
Lee indicated it has been difficult to obtain comparables since they are located on a peninsula, but that
in February of 2008, a house in the Navarre area that had an estimated market value of $800,000 sold
for $675,000, which is 16 percent less than the assessed value. Lee indicated there are some homes
for sale that are located on the lake. One of the houses has an estimated market value of $1,298,000
and is listed for sale at $999,000, which is 23 percent less than the assessed value. Another house is
assessed at $1,075,000 and at $799,000, which is 26 percent less than its estimated market value.
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PAGE 12 of 18
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MINUTES OF THE
2008 LOCAL BOARD OF ,PPEAL AND EQUALIZATION
Wednesday, April 16, 2008
7:00 o'clock p.m.
Lee stated in her opinion her value has not increased and has likely remained flat or decreased. Lee
pointed out in November there were two houses'on Fagerness Point for sale on auction and neither one
sold. The current estimated market value on one of the house was over a million dollars and they did
not receive a combined bid of a million dollars on the two pieces of property. _ .
Lee requested the Assessor's Office review
McMillan asked whether they have been
J
Lee stated they have. Their limited market
the proposed 2008 is $751,100.
McMillan noted the window for comparable
November of 2006 to October of 2007.
Lee noted a number of properties in the F
not been.
Murphy stated it is difficult to understand that th
value of the land and house are only established
Lee stated the method of how that value is
utilizing Zillow was $675,000.
The Orono Board of Appeal directed the
review her information.
25. Sean Hendrickson, 1580 Long Lake B
Hendrickson stated his property value has ir.
Hendrickson asked whether that is accurate.
Davy stated that is due to the new house being
Hendrickson asked whether his valuation would
major increase is being reflected in this year's v
Davy indicated it would not increase to that
valuation.
by that limited market value cap.
in 2007 was $601,200. The limited market value for
that the Assessor's Office has to look at is
neighborhood have been improved but theirs has
values are for tax purposes only and that the true
,n the house is sold.
is the problem. Lee stated their valuation
County Assessor to visit Ms. Lee's property and
PID #26- 118 -23 33 0031
79.2 percent and doubled their estimated value.
by that percentage next year or whether the
next year.
26. John Waldron, 1951 Concordia Street PID #18- 117 -23 14 0011
Waldron stated he has owned this property for 21 years and that his house is now 55 years old, has a.
1920 detached garage, and is basically a tear do7 if someone were to purchase it. Waldron indicated
the majority of the value is in the land. In this case, the estimated market value went from $945,000 to
$1,020,000, an increase of approximately $27,000. Waldron stated he did speak with the assessor,
PAGk 13 of 18
MINUTES OF THE
2008 LOCAL BOARD OF APPEAL AND EQUALIZATION
Wednesday, April 16, 2008
7:00 o'clock p.m.
who agreed to reduce the valuation to $975,000. Waldron stated the Assessor's Office admits the
market is flat and yet his property and other valuations have increased, which does not make sense.
Davy stated there were pockets where the market was flat but that approximately 15 percent of the
City saw some type of an increase. .
Waldron stated there are two other lots that are comparable to his lot. One is 1935 Concordia, which
has 75 feet on the lake. The property went up for auction along with another property and the two
properties together did not bring in one million. Waldron noted 1935 Concordia sat on the market in
the 800,000 range for a year and did not sell and then went to auction. Waldron stated something is
worth what somebody is willing to pay for it, and if someone is not willing to pay that, then it is not
worth it and a justification cannot be made that it really is worth it.
Waldron stated as he understands it, the Assessor's Office is theoretically looking at what these
properties are valued at as of January 2, 2008.
McMillan noted the date is January 2, 2007, for this year's taxes.
Davy stated the market value will be set January 2, 2008, for taxes payable in 2009.
•
Waldron commented the real estate market does not appear to be improving and that he has spoken
with Tom Parker, areal estate agent, who indicated that a property located at 1350 Rest Point Curve
sold in August of 2007. The property consists of al 500 square foot house, rambler, 70 feet of
lakeshore, and sold for $850,000. Waldron indicated in his view that is a good indication of what his .
property is worth.
White asked how many feet of lakeshore Waldron has.
Waldron indicated he has 75 feet of lakeshore and that in his view his property is worth a maximum of
$875,000, with little value in the building itself. Waldron requested his valuation from $1,020,000 be
reduced to $875,000..
The Orono Board of Appeal directed the Hennepin County Assessor to visit Mr. Waldron's property
and review his information.
Murphy asked what the tax value would be on a home that is surrounded by properties that are in'
foreclosure and whether the formula that the state has been using is going to stand up.
Davy stated those cities will likely need to adjust their valuations.
27. Gerald Clark, 870 Windjammer Lane, PID # 07- 117 -23 110012
Clark stated his valuation was for $1,000,041, and requested his valuation be reduced to $750,000
based on what the real estate market is actually experiencing. Clark stated in his opinion the market is
going down.
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PAGE 14 of 18
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o ray
2008 LOCAL BOARD OF APPEAL AND EQUALIZATION
Wednesday, April 16, 2008
7:00 o'clock p.m.
Clark stated the value of his land is considerabl,
mud and during the summer you are unable to s
the cattails. Clark stated the lake has also been
jet ski unless he goes 300 feet out. Clark stated
Clark stated the home is approximately 35 years
he has had his house listed on the market for $1.
has received for the property was $735,000.
Clark noted the home has suffered water damagi
stated based on what he is currently paying for t
structure and rebuild. Clark commented the roar
snowplowing on behalf of the County is awful.
overstated. The lakeshore consists of cattails and
the lake when you are standing on the shore due to
iken over by milfoil and that he is unable to use his
he lakeshore in his area is virtually useless.
old and would likely be a teardown. Clark indicated
million for the past two years and the best offer he
and requires considerable improvements. Clark
Kes, he would be unable to tear down the existing
s in the City are in horrible shape and the
Clark requested the Assessor's Office visit his poperty.
The Orono Board of Appeal directed the
review his information.
28. Thomas Rabdgaard, 2765
pin County Assessor to visit Mr. Clark's property and
Rabdgaard indicated he did speak with Mr. Dav;
it was at in 2007. In comparing the lot value in
higher one year, $3000 lower the next year, and
random. Rabdgaard commented the brick house
that there is some inequity in the values.
Rabdgaard noted he did request the Assessor's
and building breakdown be available on the we
The Orono Board of Appeal directed the
and review his information.
Road, PID 21- 117 -23 24 0060
and his valuation has been reduced to the value that
.006, 2007; and 2008 with his neighbors, he is $7000
66000 higher this year, which seems somewhat
next to him has $250,000 worth of landscaping and
e visit his property. Rabdgaard suggested the land
at the same time the statement is mailed.
County Assessor to visit Mr. Rabdgaard's property
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29. Dick Cherba, 1340 Vine Place, PID #0:7- 117 -23 42 0031
Cherba stated he has resided at his residence for 37 years and has seen a number of increases on his
market valuation. Since 1980, he has not impro' ed his property except for some riprap and minor
upkeep. Cherpa stated he is not aware when the assessor has last visited the property.
Cherba stated he would like to appeal his mE
homes that were sold last year on the lake in
Murphy noted the valuations are made on the
White noted the sales price is what helps esta
P.
value. Cherba indicated he does have a list of all the
io and every one sold for less than the asking price.
price and not the list price.
the values.
15 of 18
MINUTES OF THE
2008 LOCAL BOARD OF APPEAL AND EQUALIZATION
Wednesday, April 16, 2008
7:00 o'clock p.m.
Cherba noted there is a comparable on Shadywood with a market value of $1.13 million, which sold
for $226,000 less than its estimated market value. Another house at 905 Shadywood sold for 65,000
less than its estimated market value. Cherba commented it appears that market values have decreased
and questioned why his market value is increasing when the rest of the market is going down.
Bremer asked when those sales occurred.
Cherba stated the sales were in 2007 and 2008.
Bremer noted the 2008 sale would not apply. Bremer indicated the Council does have the sales from .
2007, and by her review it appears the majority of the sales sold above their estimated market value.
Bremer noted all four of the properties on the lake sold for more than their estimated market value.
Bremer stated in her view in 2009 the City will -see more homes being sold for less than the estimated
market value due to the real estate market.
Cherba stated it is frustrating for the property owners when their taxes keep increasing even though no
improvements are being made.
The Orono Board of Appeal directed the Hennepin County Assessor to visit Mr. Cherba's property
and review his information.
30. . Robert Hanning, 4220 County Road 6, PID #31- 118 -23.12 0015
Hanning asked what his estimated market value is.
Davy stated the estimated market value is an estimate of what the property would sell for as of
January 2, 2008.
Hanning stated it is very clear that the estimated market value is too high given the number of people
that have appeared tonight. If a comparison is done to his neighbor's house, the only difference is the
age of the residences. Hanning stated in his opinion the values are substantially wrong across the
board.
Hanning indicated he did speak with Mr. Skulc, but that if estimated fair market value is what they are
being taxed on, the Assessor's Office needs to face reality and acknowledge that property values have
decreased.
Murphy stated in approximately nine months the City is going to know for sure how much the
property values have diminished.
Davy stated there was approximately a 15 to 20 percent of the City who saw a reduction in their
market value. Davy acknowledged they are in a different market but that he cannot predict what the
sales will be like in the coming year.
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Hanning stated in his view there is enough evidence to show that values have decreased and that the
valuations should be decreased. His estimated market value is $780,000 and it is very doubtful he
would be able to get $780,000. Hanning asked why he is being asked to pay an extra $1000 this year. •
PAGE 16 of 18
MINUTES OF THE
2008 LOCAL BOARD OF APPEAL AND EQUALIZATION
Wednesday, April 16, 2008
7:00 o'clock p.m.
White stated the process is that either the Assessor's Office can reduce the valuation or Mr. Hanning
could go before the County if he does not feel the decrease is enough.
Hanning requested the Assessor's Office visit
Murphy stated the system is not designed to res
like to see it, especially when the values start to
The Orono Board of Appeal directed the
and review his information.
31. Allen Kozicky, 1720 Shadywood
Kozicky noted he did not have sufficient time to
Kozicky noted his property is valued at $1.1 mil
purchased .in.2001 for $575,000. Kozicky indic,,
business for a number of years. Kozicky stated:
even faster rate than they increased, and that giv
are getting much stricter with financing.
property.
to the market place as quickly as people would
County Assessor to visit Mr. Hanning's property
PID #17- 117 -23 210019
at together comparables for tonight's meeting.
in for estimated market value. The property was
;d he has been in the real estate /mortgage title
his view the market values are going to reduce at an
the current credit crunch, underwriters and lenders
• Kozicky stated he personally would not pay more than $800,000 for his property at the present time
and that there is going to be even more houses tat have ARMs coming due in the next couple of
years, which will hurt the market even more.
•
Kozicky asked what type of information he
Davy explained the process that should be
Assessor's Office.
PEOPLE SIGNED IN BUT DID NOT
1. Barbara Kreisler, 1650 Shadywood Roa
2. John Doleman, 1680 Shadywood Road,
3. Frederick Johnson, 4091 Highwood Ro,
4. Harold Albrecht, 4545 North Shore Dri,
5. Tom Kubalak, 2623 Casco Point Road,
6. John Fiztpatrick, 1710 Shadywood Roar
7. Dave Runkle, 2684 Casco Point Road,1
8. Richard Kling, 2780 White Oak Circle,
9. Bill Anderson, 1408 Baldur Park Road,
submit to the Assessor's Office.
Davy recommended Mr. Kozicky contact the
PID #17- 117 -23 210014
1D #17- 117 -23 210016
PID #07- 117 -23 44 0011
PID #07- 117 -23 310019
D # 20- 117 -23 24 0032
PID #17- 117 -23 210018
) #20-117-23 24 0003
D #04- 117 -23 42 0017
D #08- 117 -23 34 0017
PAGE 17 of 18
MINUTES OF THE
2008 LOCAL BOARD OF APPEAL AND EQUALIZATION
Wednesday, April 16, 2008
7:00 o'clock p.m.
WRITTEN APPEALS
L Thomas McCune, 1473 Bay Ridge Road, PID 10- 117 -23 34 0005
2. Ned and Lorna Butterfield, 3743 Watertown Road, Maple Plain, PID 32- 118 -23 -34 -0012
Davy requested the Local Board of Appeal be closed to any further requests for reviews before the
Orono Board of Appeal and Equalization.
ADJOURNMENT
McMillan moved, Bremer seconded, to close the Local Board of Appeal to any further requests
for review, to recess tonight's meeting at 10:20 p.m., and to reconvene the Orono Local Board of
Appeal and Equalization on April 29, 2008, commencing at 6:30 p.m. VOTE: Ayes 5, Nays 0.
The Orono Board of Appeal and Equalization was adjourned at 10:20 p.m.
ATTEST:
Lirida S. Vee, City Clerk
am M. White, Mayor
PAGE 18 of 18
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