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HomeMy WebLinkAbout05-09-2005 Board of Appeal and Equalization Reconvened MinutesCONTINUED ORONO BOARD 4 • Monday, 6:30 o' ROLL The Orono Board of Review met on the above date Mayor Barbara Peterson, Council Members Jim The following represented City Staff. Hennepin Young. Mayor Peterson reconvened the Board of Appeal APPROVAL OF MINUTES McMillan moved, White seconded, to approve Equalization as submitted. VOTE: Ayes 4, N COUNCIL ACTION ON ASSESSOR'S OF THE APPEAL AND EQUALIZATION ty 9, 2005 ek p.m. the following members present: Lili McMillan, Bob Sansevere, and Jim Murphy. ✓ Appraiser William Davy, and Recorder Jackie Equalization to order at 6:38 p.m. minutes of the Orono Board of Appeal and 0, Sansevere Abstained TION Davy stated since the last Board of Appeal and Equalization thirteen properties have been reviewed by the Tax Assessor's Office and the recommendations of 'the assessor for those properties are before the • Council tonight. I1 Erickson stated his wife informed him that the Asse'ssor's Office called and that his valuation would not be changed. Erickson indicated he did not receive a letter from the Assessor's Office. Erickson inquired whether his valuation is based on!! the house that sold recently for $985,000. Erickson noted that house was completely gutted and rebuilt three years ago. Erickson commented he is forced to have 125 feet of lakeshore and is not able to sell off the adjoining lot because a previous council has deemed it to be unbuildable. Erickson indicated if he is-to be taxed on that lot, he would come in before the Council and request a building permit for that lot. Erickson indicated he understands the need to raise taxes periodically but that the increase in his valuation is excessive. Murphy inquired whether someone from the Assessor's Office visited the Erickson property. Davy stated Tom Kunick from the Assessor's Office did visit the property. Davy stated based on previous sales, the valuation of the homes in the Shadywood area have increased substantially. McMillan noted the values for this property have increased from $730,000 to $875,000. Erickson stated the City in the past has refused to grant a building permit for that additional 65 -foot lot and that it has remained grassland. Erickson stated the reason the two lots are listed on one tax statement is that his father, following World War II, asked to have both lots listed on the same tax statement to reduce the amount of work that the city clerk at that time had to do. Erickson indicated at the time he requested a building permit for the adjoining lot, h was denied because the two lots were listed on one tax statement. PAGE 1 MINUTES OF THE CONTINUED ORONO BOARD OF APPEAL AND EQUALIZATION Monday, May 9, 2005 • 6:30 o'clock p.m. McMillan stated in her view the adjoining lot adds to the value of this property Erickson pointed out that he was told by the City he needed 100 feet to obtain a building permit and that the adjoining lot was considered unbuildable at that time. Erickson stated in the future it is possible that someone might choose to purchase both lots, combine them, and construct a new residence, which would increase the value of the lot. Davy stated the land is valued as a single building site. Murphy indicated the aerial photograph depicts that the house is straddling the adjoining lot. Erickson stated the lot line is about six inches from the existing house and that the house and garage are located on Lot 4 and the driveway is located on Lot 3. McMillan noted this lot is much bigger than the other lots in the area and that the two lots are being assessed as one lot. Davy stated he would not argue that the majority of the house is located on Lot 4 and that the lot lines on the aerial photographs could be slightly off. White inquired whether the lot the house is located on is 65 feet wide. Erickson stated the empty lot is 65 feet wide. • Davy indicated their records show both lots as being 60.1 feet on the street side and 60 feet on the lakeside. Murphy inquired how Lot 3 could be the larger lot. Erickson stated a long time ago in the early 1900s someone purchased five feet from Lot 2. White inquired how many comparables there are for this property. Davy stated there have been several sales in the Shadywood area, but noted those lots are smaller in size. Sansevere inquired what the average sale price of those homes has been. Davy indicated they have sold in the $900,000 range. Sansevere inquired what the value of the empty lakeshore lot is. Davy stated the first 50 feet is valued higher, with the next 50 to 100 feet valued between two to three thousand less per foot. White pointed out you cannot purchase 50 feet and construct a house on it. PAGE 2 4 CONTINUED ORONO BOARD 4 Monday, 6:30 o' Erickson reiterated the Council denied a building commented at some point in the future the larger at this point in time. Peterson inquired whether that lot would be OF THE APPEAL AND EQUALIZATION iy 9, 2005 ck p.m. t a while ago for the adjoining lot. Erickson .1 be worth more but that he has no intention to sell substandard. Moorse stated the property owner would not be able'to divide it into a lot that would be very substandard. Moorse indicated years ago the Council determined that the property should not be divided into two 60 -foot lots. Erickson stated both lots were listed on one tax 1940s. Sansevere inquired whether the Assessor's Office too much for a particular piece of property, which for the convenience of the city back in the into account the fact that sometimes people pay i artificially raise the values in the area. Davy stated the Assessor's Office on each sale reviews the CRV, the MLS information, and the length of time that the particular property remains on the market. Davy indicated it is very rare where he feels that someone has overpaid for a piece of property, and noted that there are three or four properties that have sold in this area and have set the range for lakeshore lots in the neighborhood. is Peterson stated the Council should consider Murphy stated the bottom line is that this lot is as a larger lot. Erickson inquired what would happen if they were Murphy noted that is not the situation in this parcel. Davy stated in his opinion the two lots, if taken they were valued as one lot. this matter forward to the county. 120 feet wide and that it has to be assessed on separate tax statements. case and that the City has to look at it as one , would probably be valued higher than if Peterson concurred that the Council must look at this property as consisting of 125 feet of lakeshore. Murphy suggested that a detailed history concerning the two lots be compiled, noting that if they are considered as two separate lots, the value may be increased. Erickson stated if they are considered as two the adjoining vacant lot. Davy stated Erickson would need to contact wishes to appeal the Council's decision. to lots, he should be allowed to construct a house on :pin County and request to be put on the agenda if he PAGE 3 MINUTES OF THE CONTINUED ORONO BOARD OF APPEAL AND EQUALIZATION Monday, May 9, 2005 6:30 o'clock p.m. Murphy moved, McMillan seconded, to accept the recommendations for Parcels 1 through 13 as outlined in the May 2005 Hennepin County Assessor's Office memorandum. VOTE: Ayes 4, Nays 0, Sansevere Abstained. ADJOURNMENT The Orono Board of Appeal and Equalization was concluded at 7:00 p.m. ATTEST: Lin Vee, Orono City Clerk 11 Barbara Peterson, Mayor PAGE 4 • LJ •