HomeMy WebLinkAbout04-28-1999 Board of Review Minutes• MINUTES OF THE BOARD OF REVIEW MEETING
HELD APRIL 28, 1999
ROLL
The Orono Board of Review met on the above date with the following members present:
Mayor Gabriel Jabbour, Council Members Richard Flint, Barbara Peterson, and Charles Kelley.
Council Member Sansevere was absent. The following represented City Staff. City Administrator
Ron Moorse, Hennepin County Appraiser Kim Jensen and Hennepin County
Principal Appraiser Rennerfeldt, Hennepin County Senior Appraiser William Davy, and
Recorder Jackie Young.
The meeting was called to order at 7:00 o'clock p.m.
Mayor Jabbour explained the Board of Review process, noting that the City receives the same
amount of money regardless of the value set on each individual home. Minnesota State Statutes
require homes to be assessed fairly according to the market value, and the City of Orono can
be penalized if the assessed property values are not within the range of actual sales in the
City. Jabbour stated the property owner can assist in this process by providing information
regarding the valuation they feel their home is worth. Jabbour noted that the City does not like
to see residents being forced to move due to taxes, but that is not a factor that can be considered
in determining the appropriate value for the residence. The property owner can request that the
• assessor visit the property if he feels his valuation is inaccurate.
Rennerfeldt stated that Hennepin County consists of 44 cities and one township, and each city is
expected to value their properties within 94 to 96 percent of the sales price. Rennerfeldt remarked
that there is a tremendous demand for land in this area and west of here, which is pushing land
values up in this area.
Rennerfeldt commented that the assessed values for 1998 for this area were low and required
some adjustments in certain areas to reflect the proper fair market value. If a property owner is
dissatisfied with their valuation, they have the right to appeal to the Board of Review at the City
level. By appealing to the Board, the assessor will review the information on file regarding the
property. The property owner may request that the assessor visit the property and provide
information on how that valuation is obtained. After reviewing the property, the assessor brings
his findings back to the City Council for their approval and the property owner may appear at the
reconvened Board of Review if he is still dissatisfied with the valuation assigned to the property.
Mayor Jabbour noted that the assessor is required by law to visit 25 percent of the residences in
the City each year. Jabbour explained that the appeals would be heard in the order in which the
property owners signed in upon arriving. He requested that each owner state his name, address
of property, property identification number, and any other information the property owner feels is
appropriate.
• 1. Phil Byers, 3083 Farview Lane, PID #04- 117 -13 -33 0006. Mr. Byers stated his valuation
for 1999 is $449,000, which is a 10.9 percent increase. In previous years Mr. Byers stated
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his property was increased at a 1.9 percent rate, which in his opinion is more appropriate than
the 10.9 percent increase due to the valuation of the other homes in his neighborhood. Byers
commented that due to a wind storm last year, he lost 41 trees on his property, which should_
decrease the value of the land by approximately $20,000 to $25,000. Byers stated in his'
opinion his property should be valued at $412,000, noting that the assessor did not view his
residence.
Mayor Jabbour requested that the Assessor visit the property before the Board of Review is
reconvened.
2. Dwight Seward, 2780 Countryside Drive West, PID 404- 117 -2312 0010. Seward stated his
1999 valuation was $492,900. Seward commented that the assessor has visited his property
but he has not received a response back.
Rennerfeldt stated the revised value is $462,000, noting that a message was left on April 26th
regarding the decrease.
Seward requested that written confirmation of that value be sent to him. Seward noted that
before the decrease, his value increased by 17.5 percent.
Mayor Jabbour requested that the Assessor provide written confirmation to the property
owner specifying the new assessed value, and if he still wishes to contest the value, he play •
appear at the reconvened Board of Review.
3. Cheryl Stinchfield, 2255 Abingdon Way, PID #55- 03- 117 -23 -23 0008. Stinchfield noted
that she only received notice of this hearing with her value today. Stinchfield commented
that her property valuation has increased dramatically from the purchase price of $450,000
approximately two years ago. Her 1999 assessed value is $581,000, noting that they have
not made any improvements to the residence since purchase. Stinchfield stated that an
assessor did visit her property, and spent an hour and a half inspecting the residence.
Mayor Jabbour requested that someone from the assessor's office contact Ms. Stinchfield
before the reconvened Board of Review.
Rennerfeldt remarked that the notices had been mailed out approximately six weeks ago,
and did not understand the delay in Stinchfield receiving her notice.
Kelley inquired whether all of the notices had been sent out.
Rennerfeldt stated based on some comments tonight, he cannot be 100 percent positive that
all the notices have been mailed out.
Mayor Jabbour stated that someone from the assessor's office will be contacting
Ms. Stinchfield. i
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4. Chuck Christiansen, 1981 Fagerness Point Road, PID# 1- 8- 117 -23 -14 0005. Christiansen
stated his 1999 valuation is listed at $534,000, and in his opinion the residence should
be valued at approximately $400,000. Christiansen stated they «•ere unable to sell the
residence three years ago when it was priced at $550,000, and were again unsuccessful at
selling the house when it was priced at $500,000. Christiansen commented that only
routine maintenance items have been done to the residence and that his value should be
lowered to reflect the values of the other homes in the neighborhood.
Mayor Jabbour stated the fair market value tends to go up and down and these values are
based on what it would be worth on January 2, 1999. Jabbour suggested that the
Christiansen obtain some comparables to show the assessor.
Rennerfeldt stated that someone from the assessor's office will be out to look at the property.
5. Gloria McDonald, 3445 Crystal Bay Road, PID #17- 117 -23-43 0121. McDonald stated she
has resided in the home for approximately 35 years and is on a fixed income. McDonald
remarked that the value of her home has increased $40,700 from 1996, noting that she has
only performed routine maintenance on the structure.
Mayor Jabbour requested that someone from the assessor's office visit the property.
• Rennerfeldt commented that an income adjusted refund is available to senior citizens as
well as a refund on your property taxes if the increase is more than 12 percent.
6. Brent Walton, 2405 Dunwoody Avenue, PID# 20- 117 -23 -22 0008. Walton expressed a
concern over the value placed on his land, noting that he has experienced a 60 percent
increase in one year. Walton stated his neighbor has approximately 40 percent more land
and is valued at $125,000. Walton remarked that Chris Bennett was out from the assessor's
office to look at the land and was informed that his value is higher due to more shoreline.
Walton stated in his opinion the value of his land should be reduced to $93,614 from the
$125,000.
Mayor Jabbour requested that someone from the assessor's office visit the property.
7. Rob Wien, 2170 Shoreline Drive, PID# 03- 117 -23 -34 0018. Wiens stated his property is
valued at $303,000, which is the same value assigned to a larger home in his neighborhood
«ith a working septic system. Wiens stated his septic system is non - conforming. Other
homes in his neighborhood that are more comparable are valued around $280,000. Wiens
stated no major improvements have been done to the home, noting that he has been told by
a real estate agent that the tennis court is not really considered an asset.
• Mayor Jabbour requested that someone from the assessor's office visit the property.
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8. Gary Demek, 3400 Watertown Road, was not present at the time his name was called.
9. Dennis Grendahl, 2070 Shoreline Drive, PID #15-117-23-210005. Grendahl stated he was
unable to contact Chris Bennett, noting that his property is valued at $819,000 and in
his opinion it should belowered to $675,000. Grendahl stated a home in his neighborhood
which is comparable to his just recently sold for $595,000, and that a refinance appraisal
done on his property was lower than his current assessed value.
Rennerfeldt stated that the assessed value by the assessor's office rarely will be able to
get as low as a value placed on a property as part of a refinance appraisal, noting that more
work is completed as part of the assessed valuation.
Grendahl commented that traffic from Highway 15 also should be taken into account when
his valuation is arrived at.
Mayor Jabbour requested that someone from the assessor's office visit the property.
10. Paul Kaster, 2600 Casco Point Road, PID 420- 117 -23 -24 0043. Kaster stated the value on
his land has increased 81 percent over the past two years with the value on his residence
increasing six percent. Kaster stated the value of his property has increased 625 percent •
from the time it was initially built in 1979. Kaster commented he is on a fixed income and
will not be residing in the house any longer should the value remain the same. Kaster
reviewed a handout on other properties with lakeshore, noting that most of the homes are
valued at less than what the original purchase price was.
Rennerfeldt stated that Kaster's handout does not include the 1999 assessments and that
those properties have all been reassessed at higher valuations, noting that that area of the
City experienced major changes in their property valuations this year.
Mayor Jabbour requested that someone from the assessor's office visit the property.
Rennerfeldt remarked that the Hennepin County Assessor's Office is obligated to value the
properties at the fair market value.
11. Gregg Perl, 309 Westlake Street, PID #05- 117 -23 -23 0040. Perl stated his value has
gone up $26,000 from last year and $22,800 the previous year. Perl remarked that he
purchased the property in 1995 for $55,000, and did some major improvements to the
property but does not feel that his property should be valued at $217,000. Per] questioned
why his taxes were increasing so much, and stated that the City of Orono should spend more
money on improving the condition of its roads.
Mayor Jabbour stated that the City of Orono receives the same amount of money regardless
of the amount of increase in property valuations. Jabbour commented that taxes differ from
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• property values. Jabbour indicated he will speak with the City Administrator and other City
Council members regarding the condition of the roads.
is
Mayor Jabbour requested that someone from the assessor's office visit the property
12. Rodney Colson, 180 North Shore Drive West, PID #06- 117 -23 -22 0024. Colson stated
the value on his property for 1999 is listed at $177,000, noting that he has a swamp in
his back yard. His property value for 1998 was $119,000, and he originally purchased the
property from the developer for $115,000 in 1996. Colson commented that he is not able to
subdivide the property and that his basement floods on a regular basis. Colson stated he has
made some improvements to the residence which amount to approximately $20,000.
Mayor Jabbour requested that someone from the assessor's office visit the property.
Written Appeals Submitted:
L. Doggett, 3660 Togo Road, PID 417- 117 -23 -31 -0030
Dave and Kathleen Daniels, 710 Gander Road, PID 404 -177 -2344 0005
George and Nancy Danko, 1510 Green Trees Road, PID 911- 117 -23 -32 0016
Sidney L. Brennan, Jr., 1111 Tamarack, PID #26- 118 -23 -31 -0007
Other Issues:
Kelley inquired why Chris Bennett was not present at tonight's meeting since it appears that he
worked on most of these files.
Rennerfeldt stated that Bennett helped out last week, but that most of the reviews completed in
&w City were done by Jensen. Rennerfeldt commented that he was not aware that the City
wanted all the appraisers to attend tonight's meeting.
Kelley inquired whether there was any correlation between the market value listed on insurance
polices versus the County Assessor's value.
Rennerfeldt stated they typically do not review the insurance policies for the value, noting that
the values listed on the policies are probably higher than the fair market value.
Kelley inquired if there are any issues that will be facing Orono from Orono's previous assessor's
work.
Rennerfeldt remarked that the previous assessor did meet most of the basic checks as far as
ratios that Hennepin County looks for, but that equalization of land values was an issue this
yam•
• Kelley commented that separation of land values versus the value of the residence will become
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more of an issue in Orono as more land is subdivided and developed.
Rennerfeldt stated that they have made major adjustments this year to the land values and
Lakeshore properties, noting that residents have questioned whether it is worthwhile. to leave the
existing structure on the property or to remove the structure to obtain the best value for their
money.
Mayor Jabbour commented he has a concern about the value of land where the septic system is
failing. Jabbour noted that land values in this area are rising due to the proposed improvements to
Highway 12. Jabbour commented in his opinion the person who completes the majority of the
reviews should also be present at the Board of Review to answer any questions that the property
owner may have regarding his property value.
ADJOURNMENT
Jabbour moved, Peterson seconded, to continue the Board of Review to May 10, 1999,
at 6:30 p.m. VOTE: Ayes 4, Nays 0.
The Board of Review was adjourned at 8:50 p.m.
Gab 'el Jabbour, Mayor
ATTEST:
Lin ee, City Clerk
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