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HomeMy WebLinkAbout04-18-2007 Board of Appeal and Equalization MinutesDO ORONO BOARD OF A Wednesd 7:00 ROLL The Orono Board of Appeal and Equalization members present: Mayor James White, Coun Rahn. Representing Staff were City Adminisl William Davy, Hennepin County Appraiser T Mayor White called the meeting to order at 7: APPEALS Mr. Davy, Hennepin County Assessor's Office, property owners being given the opportunity to in the appeal process, with the third step being 1 1. Paul Taylor, 3883 Cherry Avenue, P] Taylor stated he owns three lots and Lots 3 and empty, unbuildable lot has been increased to $1 Taylor stated as.it relates to comparables, appro a similar property for refinancing, PID 07 -117 three- quarters of an acre. In 2006, the valuation comparable property is PID 12- 117 -24 13 0033; had a value of $340,000 in 2006 and $350,0001 OF THE 'EAL AND EQUALIZATION , April 18, 2007 clock p.m. et on the above - mentioned date with-the following Members Lili McMillan, Cynthia Bremer, and David I[or Ron Moorse, Hennepin County Senior Appraiser mas Kunik and Recorder Jackie Young. !P.M. Kplained the process that would be followed with the scuss their valuation. The hearing is the second step appear before the Hennepin County Board of Appeal. 08- 117 -23 33 0087 and 08- 117 -23 33 0045 are homesteaded. This year his valuation on his 5,000. imately a year and a half ago an appraisal was done on S 410009, at 1280 North Arm Drive, consisting of vas $287,000 and this year it is $291,000. Another 1055 Crest Ridge Court, consisting of .57 acres, which r this year. Taylor indicated the appraiser is saying that his unbuildable lot has gone up $35,000 and his homestead has gone up $46,000. Taylor stated he has information on six other comparable properties to his homestead. Taylor stated the only place available for parking for the public beach located across the street is on his side of the property and that he A required to pick up the garbage that is left behind. Taylor stated he did speak with the assessor on the phone, who got rather curt with him when he said that the $125,000 value was excessive. According to the assessor, a house sold down the street for $421,000 recently but a year earlier that same house sold for $231,000 to a speculator contractor who gutted the home and stuck over $100,000 into itj Taylor noted his house has not been remodeled. Another property on the same street, 3716 Cherry Avenue, consists of 2.41 acres, non - homesteaded acres that had a zero percent property tax increase. Another neighborhood property consisting of one acre increased $26,000, and a Lakeshore lot of 2:6 acres increased $5,000. Taylor stated he questions why his valuations time. Davy stated he would look at the information market value. Taylor stated in the last four to six years his pr( nothing to the house or property. Taylor stated value is $79,600, but in using the state's formu] Davy stated he would check on the difference. increased so dramatically in such a short period of Mr. Taylor has and that what it comes down to is rty has increased $146,000 and that he has done also noticed on the valuation: that the taxable market it comes out to $74,220.00. AGE 1 MINUTES OF THE ORONO BOARD OF APPEAL AND EQUALIZATION Wednesday, April 18, 2007 7:00 o'clock p.m. Paul Taylor, 3883 Cherry Avenue Continued White inquired what size the unbuildable lot is. Taylor stated it is .21 acre. White inquired why it is unbuildable. Taylor stated it is less than half an acre. Kunik stated the driveway actually encroaches onto the vacant lot. Taylor stated there is a ten -foot setback from the garage. White asked if all three lots were combined whether his taxes would go down. Taylor stated they would. White suggested Mr. Taylor consider combining the lots. Taylor stated the homestead lot alone is valued at $231,000 and the empty lot at $125,000. Taylor stated the closest comparable he has is $255,000 for the house and that amount of land. Davy stated in situations with secondary lots that are unbuildable the procedure is to look at the primary • "' parcel and to see what the extra land contributes; to the primary lot. Taylor stated another piece of land consisting of 1.47 acres has a valuation of $25,000. Taylor stated he obtained this information off of the Hennepin County website and that the house was located on both lots. Kunik stated oftentimes the lot lines on the Hennepin County website are inaccurate. The Orono Board of Appeal directed the Hennepin County Assessor to visit Mr. Taylor's property and review his information. 2. Charles Larson, 4285 Sixth Avenue North, PID 31- 118 -23 12 0005 Charles Larson stated he was told by the assessor that they used the house across.the street as a comparable. Larson stated the house across the street was a phony sale involving a person from Prior Lake and that the sale price was inflated in order to obtain a loan. Larson indicated the guy who sold it bought it back at a greatly reduced price. Davy stated they make their decisions on market value and not just the sale of one house, Mr. Larson stated that house should not be used at all given the fact that that sale was a scam. Davy noted he did receive the Larson's letter on Monday and would be glad to review his property. ' The Orono Board of Appeal directed the Hennepin County Assessor visit Mr. Larson's property. PAGE 2 • i • i I i 1VIINU ORONO BOARD OF A] Wednesd 7:00 3. Richard Crosby, 2705 Walters Port L Mr. Crosby stated he has resided in his home sir.. Orono his taxes have gone up a total of 45 perce flooded the first year he lived there due to the ru City, he was told that since he resides on a priva stated he has spent approximately eight to ten th Crosby stated market values in Minnesota have but that for some reason taxes keep rising every responsible for taking care of a portion of a char who resides on Casco Point where they have cit• s ES OF THE 'EAL AND EQUALIZATION , April 18, 2007 clock p.m. ne, PID 21- 117 -23 23 0043 :e January of 2005 and that since he has resided in t. The house is located on a private road and his house off from his neighbor's property. After calling the road, the City is not obligated to fix it. Mr. Crosby usand dollars in drain tile to help abate the runoff. ropped this year, including homes located on the lake, ear. This property is located on a channel and they are iel. Crosby stated his taxes are the same as someone services. Crosby indicated based on comparables, his tax bill is over $1,000 more than other comparable properties. Crosby stated he does not feel it is right to be penalized for taking care of his property versus someone who does not maintain their property and has their taxes go down. Crosby stated he did speak with the county assessor but was basically' given the brush -off. Crosby stated he does have some documentation "showing how average home prices dropped one percent last year. Crosby stated sale prices on houses do not always go up and that the residents deserve some tax breaks. Davy stated the current market does have a large! inventory of homes for sale, with the average length of sale being longer than what has been seen in the recent past. Davy stated the asking prices are dropping ' • but that the values are remaining the same. Crosby stated his property value has not gone up in the recent past and that a 45 percent increase in three years is not justified. Crosby stated if a person is not able to get their asking price, the value of their home is decreasing. Crosby reiterated that a 45 percent increase in taxes is not warranted and that he has never experienced those types of increases in the past. Davy stated the period the assessor looks at is from October 1, 2005 and ends on September 30, 2006. . ',I p Crosby stated in his local area there have not been any sales in that time frame and that he is not sure what the assessor's office is using for comparison. Crosby indicated the one home that did sell prior to that sold for $350,000. Crosby stated there are some lakeshore properties that pay fewer taxes than he does and that he receives very few city services. Davy stated the assessor's office would review assessor's office does not review taxes. White stated the City of Orono is towards the t attempts to keep costs to a minimum wherever The Orono Board of Appeal directed the property. property and the neighboring properties but that the of the list when it comes to taxes and that the City County Assessor's Office visit Mr. Crosby's PAGE 3 MINUTES OF THE ORONO BOARD OF APPEAL AND EQUALIZATION Wednesday, April 18, 2007 7:00 o'clock p.m. 4. Don Chase, 365 North Ferndale Road, PID 36- 118 -23 41 -0002 Don Chase stated he resides on the border of Wayzata, Plymouth and Orono, which may have some bearing on his valuation. Chase indicated his taxable market value in 2006 was $433,000 and this year it went to $571,000, which is over a 33 percent increase in two years. Chase stated twenty -three appraisals have been completed on comparable properties within the relevant time period and those appraisals have been provided to the assessor's office. The appraisal on his property was $430,000 as the low and $441,000 as the high. Chase requested his market value be reduced to the $431,000. . Chase stated he did speak with Mr. Kunik, who also reviewed the appraisals, and that Mr. Kunik indicated there was a comparable property located on Chevy Chase. The Chevy Chase property has a square footage of 3600 square feet and his home is 2600 square feet, which includes a partially unfinished basement. Chase stated the Chevy Chase property is not a good comparable, and that if that property was going to be used as a comparable, the figures should have been prorated. If that had been done, the selling price of the Chevy Chase home would be at $425,000, which is in the range that he is speaking of for his house. Chase stated there were also some Orono sales after the time period that also fell within the same range. Chase requested his market value be adjusted down to $431,000. Mr. Kunik stated the Ferndale property was the sale that caused Mr. Chase's valuation to increase. • Kunik noted Mr. Chase's land value increased and that Mr. Chase's property is larger than the Ferndale property. Kunik stated the assessor's office was willing to reduce Mr. Chase's valuation but not down to the $431,000. Davy stated there were a number of properties that were located in Plymouth on smaller lots and that there were two very good comparables. Davy indicated the property on Myrtlewood was a good comparable as well as 85 North Ferndale, which sold for $485,000 this last November. Mr. Chase stated that his home is not within the parameters the state is supposed to use. Chase stated the Myrtlewood home is approximately the same footage but the house has been totally remodeled and is located on 1.5 acres. Chase noted his property consists of slightly less than one acre. Davy stated he felt the $571,000 was on the high side and that $540,000 was a more reasonable value, which is what Hennepin County agreed to reduce the value to. Davy stated the $430,000 is unrealistic for what properties are being sold at. Chase stated he does not have the information on 85 North Ferndale. Davy stated he would be happy to provide that information to Mr. Chase and discuss his valuation with him. Chase noted his basement is not finished. The Orono Board of Appeal directed the Hennepin County Assessor's Office visit Mr. Chase's property. • PAGE 4 00 . i MINUTES OF THE ORONO BOARD OF APPEAL AND EQUALIZATION Wednesday, April 18, 2007 7:00"o'clock p.m. 5. Verne Hubbell, 3360 Watertown Road, AD 32- 118 -23 44 0004 Mr. Hubbell stated according to the City, he has'4.99 acres, and when he purchased the property in 1979, he bought 2.25 acres. Hubbell stated according to the information he was provided by the City, he owns a portion of his neighbor's driveway. Davy stated he has been reviewing that information and did speak with Mr. Hubbell's wife this afternoon. Mr. Hubbell stated his plat shows his property is'200 feet wide. Mr. Davy stated his maps show that Mr. Hubbell's land extends back into the wetland area, and that according to his calculations, that is almost five acres. Mr. Davy stated he would continue to look at this situation and check with the county surveyor. Hubbell stated his neighbor had his property the deed. Davy stated he will need to review the legal des, 6. Tim Harrer, 340 Westlake Street, PII Harrer stated his house basically is a knock -dow This year the market value increased $100,000 c $150,000. The house consists of 900 square fee values have not increased and in some locations McMillan stated it is likely the land value is inci and that he is going by the legal description on iription to see if it matches the County's information. 105- 117 -23 23 0013 ci house but his market value continues to increase. r 21 percent. The year before the aggregate was Mr. Harrer stated both nationally and locally housing Have decreased. and not the house value. Davy inquired whether Mr. Harrer called the asse'ssor's office prior to tonight. Harrer stated he did not. 1� Mr. Davy stated they would be willing to visit Mr. Harrer's property. Bremer noted the property values in Orono are actually increasing, and in the material they received for tonight's meeting, in 2006 the average price was 7.2 percent higher overall in Orono and the lake values increased 9.8 percent over the previous year. Bremer noted the properties are on the market longer but that the values are increasing. White inquired whether the property is located on the lake. Mr. Harrer stated he does have a small amount of lakeshore. The Orono Board of Appeal directed the Hennepin County Assessor's Office visit Mr. Harrer's property. II PAGE 5 MINUTES OF THE ORONO BOARD OF APPEAL AND EQUALIZATION Wednesday, April 18, 2007 7:00 o'clock p.m. 7. Robert Nelson, 679 Minnetonka Highland Lane, PID 06- 117 -23 44 0008 Mr. Nelson 'stated last fall Mr. Kunik visited his property and he did discuss his property at that time. Nelson indicated there was a disagreement about the square footage of the basement level, with the assessor's property records showing approximately 300 more square feet. Mr. Kunik stated he does not have Mr. Nelson's information with him tonight and that he does not remember the details of this property. Mr. Nelson stated he would like to verify the square footage. Mr. Nelson inquired how the market value is established each year and noted his market value went up 12.2 percent this year. Davy stated the median was approximately 10 percent, and when the assessor's office looks at all the sales in the relevant time period, when there are not sales for a period of time in certain areas, those houses require a greater adjustment when there are sales. Mr. Nelson stated -in his opinion the 12.2 percent increase is excessive and that there have not been a lot of sales in 2006. Mr. Nelson inquired what comparables the assessor's office used. Mr. Kunik stated he does have the information on the comparables that could be provided to Mr. Nelson. Mr. Nelson inquired at what point a home qualifies for depreciation based on age. Davy stated the depreciation is figured in every year and increases at certain points. Mr. Nelson noted his residence is over 30 years and that the value on the home is still increasing. This year's increase was four percent. Kunik stated there is more than just the depreciation value that is used in determining valuations, and that sales of like properties, the style of the house and other factors are also taken into consideration. McMillan suggested a walk - through be conducted on this property. Mr. Nelson noted a walk- through was completed last fall. Mr. Kunik stated they would look at whether the dollar value is correct and verify other information. Kunik stated age of the structure alone does not figure into the value. The Orono Board of Appeal directed the Hennepin County Assessor's Office to contact Mr. Nelson. PAGE 6 04 • 00 09 00 MINUTES OF THE ORONO BOARD OF APPEAL AND EQUALIZATION Wednesday, April 18, 2007 7:00,o , clock p.m. WRITTEN APPEALS 1. Dan Crear, 3701 Shoreline Drive, PID #20-117-23 20 0033 2. Margherita Gale Harris, 783 Boulder Dive, PID #33- 118 -23 110009 3. Thomas Randgaard, 2765 Shadywood Road, PID #21- 117 -23 -24 -0060 4. Chuck and Sandie Larson, 4285 Sixth Avenue North, PID #31- 118 -23 -12 -0005 Davy requested that 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 and to recess tonight's meeting at 8 :02 p.m., and to reconvene the Orono Local Board of Anneal and Equalization on April 30.2007 commencing at 6:00 D.M. VOTE: Aves 4. Nays 0.