Loading...
HomeMy WebLinkAbout04-22-1998 Board of Review Minutes• MINUTES OF THE BOARD OF REVIEW MEETING HELD APRIL 22, 1998 ROLL The Orono Board of Review met on the above date with the following members present: Mayor Gabriel Jabbour, Councilmembers J. Diann Goetten, Charles Kelley, Barbara Peterson and Richard Flint. The following represented City staff. City Administrator Ron Moorse, City Assessors Rolf Erickson, Tom Haller and Tom Carroll, Hennepin County Appraisal Supervisor Glen Busitzky and Recorder Lin Vee. The meeting was called to order by Mayor Jabbour at 7:03 p.m. Mayor Jabbour explained the Board of Review process. Based on the budget, the City receives the same amount of money regardless of the value set on each individual home. The Law requires homes to be assessed fairly according to the market value. The City can be penalized if the assessed property values are not within the range of actual sales in the City. He reviewed the process a property owner should follow to appeal their property value. By appealing to the Board, the Assessor will review the information on file regarding the property. A property owner can have the Assessor visit the property and provide supporting information for the request to lower the valuation, i.e. purchase price and appraisal. After reviewing, the Assessor brings his findings back to the Council for their approval. . Jabbour explained that appeals would be heard in the order in which property owners signed in upon arriving. He asked that each owner state his name, address of property, property identification number, value of the 1998 Notice of Valuation and the value the owner feels appropriate. Allan Larson, 3852 Cherry Avenue. #08- 117 -23 33 0088 - Mr. Larson stated his 1998 value was at $382,000. He was not satisfied with the answer he got when calling the Assessor's office. The Assessor had told him that two -story houses that were 2,500 s.f. sold for $500,000 in Orono. Mr. Larson stated his house was only 2,347 s.f. A professional appraisal had been done with a valuation at $360,000. Erickson responded that if his home had not been physically looked at in the last 2 years that he should sign up in the entry to have an Assessor visit his property. A further appeal could be made to the County Board which meets in June. Everyone who appeals to the Board of Review is notified by letter of the recommendation the Assessor makes with the date and time of the next meeting. Council set the Reconvened Board of Review for Monday, May 11, 1998 at 6:30 p.m. 2. Robert Gountanis, 1098 Loma Linda Avenue. #08-117-23 23 0011 - Mr. Gountanis stated his 1998 value was $260,000. His 1997 valuation was $236,000 with $100,000 for property and $131,000 for improvements. He questioned the extra $5,000, noting there was no change to the property in the last year. He added this was a 10% increase while the State average is E MINUTES OF THE BOARD OF REVIEW MEETING • HELD APRIL 22,1998 5 %. Jabbour responded that some lake properties increased up to 50 %. Gountanis noted this was a great burden on people, making it virtually impossible to retire in Orono. He compared the property at 1420 Baldur Park Road on North Arm noting that lot is larger, the square footage of the house is larger and they pay $1,500 less in taxes. Jabbour responded that guidelines set by the State legislature require that the market and assessed values be very close. Kelley commented that the tax system won't change until citizens contact their legislators. He asked what Gountanis thought the proper value would be. Gountanis responded $240,000. Jabbour stated the Assessor will review the property. If Mr. Gountanis is not pleased with the Assessor's recommendation, he can appear at the next meeting. Erickson explained that the $5,000 difference was from the beginning of construction for the 1996 -pay 1997 taxes. 3. Doug Olson, 537 Park Lane, #06- 117 -23 41 0102 - Mr. Olson stated the 1998 value was $524,000 which was up 8 %. The 1997 value had gone up 8.5 %. He added that if everyone was paying the same increase, he did not object. He has already talked with congressmen. Erickson responded that houses in that area sell for more money. Olson did not think property values should go up more than the cost of living. Jabbour noted the 7- County metro area pays higher taxes and some of that money goes to other areas in the State. The City's • budget went up only 2.9 %. Goetten suggested Mr. Olson contact Doug Johnson, Chair of the Tax Committee, or Roger Moe. Kelley asked if his property was on the lake. Olson responded that it was. Jabbour reiterated that lakeshore properties went up from 1 to 50% with an average of 8.6 %. Kelley explained that the problem with lakeshore properties is that people buy them and then tear the house down. This makes the land worth the total purchase price. This creates a problem for true market values when money is not important. Erickson stated he would review the property file to make sure there were no arithmetic errors. 4. Barry Knight, 425 Tonkawa Road, #06- 117 -23 410088 - Mr. Knight has a 2 story home and was astounded at the increase over 4 years. In 1995 he had a 45% increase, which he assumed was reasonable as that reflected the purchase price. There was a 4% increase in 1996, 12.76% increase in 1997 and 12.84% increase in 1998. He stated that he understood the State issues. He did not feel the market values could continue to increase indefinitely. Erickson responded that property values are determined by the historical value of sales. In 1985 values were actually lowered. Hennepin County experienced a similar situation with commercial and industrial properties in the early 1990's. Those values are now increasing again. Knight felt the rate of increase was excessive. Jabbour stated that Knight could use what his neighbor's house sold for to compare property values. Knight asked if all lakeshore attributes are considered when lakeshore properties are assessed. He noted that his property consists of 2`/2' of muck at the shoreline and a 60' drop to the lakeshore. Jabbour agreed that all lakeshore properties are not equal and this should be pointed out to the Assessor for his • review. 2 • MINUTES OF THE BOARD OF REVIEW MEETING HELD APRIL 22, 1998 5. Glen Neddermeyer. 709 Minnetonka Highlands, #06- 117 -23 44 0010 - Mr. Neddermeyer stated that he had talked to the Assessor about his lakeshore property. In 1996 his land was valued at $154,000, in 1997 at $177,000 and in 1988 at $214,000 for a 21% increase. His home went from $112,000 to $118,000. The home was built in 1976 with no garage and is in need of the usual repairs. He felt his property was comparable to other properties in the area but they have more expensive homes. He believed that since his home was of a lower value, the land should be similarly considered. Erickson will review his property. 6. Chuck VanEeckhout, 120 Brown Road South, #03- 117 -23 12 0005 - Mr. VanEeckhout stated his 1998 valuation was at $408,000. His house could be replaced for $150,000 which is $60 /s.f. His current house is a simple house that is 28 years old and needs repairs. He felt today's value would be at $120,000. He has 120 acres of land with Long Lake Creek running through it. The City has placed restrictions on the property because of the shoreland ordinances and wetland setbacks, which leaves only 23 acres for development. He felt a land value of $10,000 per acre was fair. In 1970 he had an estimate to have the property developed into 16 lots. That would not be possible today because of the restrictions. A few years ago the property was valued at $269,000. Kelley stated it was appropriate to determine how many buildable lots could be created on his property. He suggested VanEeckhout talk is to the Zoning Department to begin that process. The Assessor will revisit this property file. VanEeckhout felt the property should be valued at lower levels at this time. LJ 7. Jack LeI2121a, 4040 Dahl Road, #07- 117 -23 11 0021 - Mr.Leppla was unable to reach the Assessor because he had been out of town. He stated he was appearing to protect his interest in the appeal process. His property value went up 8.4% last year and 12.6% this year. He would like to discuss these increases since there were no improvements made to the property. He will make an appointment to have the Assessor visit his property. 8. Marnix Guillaume, 1075 Tonkawa Road, #08- 117 -23 13 0002 - Mr. Guillaume asked what new improvement meant. Jabbour responded that something was added. Mr. Guillaume stated that he had supposedly done $83,700 worth of improvements in 1997 and $148,000 in 1998, but nothing had been done since he purchased the property in March of 1997. Erickson asked if improvements had been made before he purchased the property. Guillaume confirmed that the previous owner had made improvements. Erickson explained that 1995 improvements are payable in 1997, and 1996 improvements are assessed as of January 2, 1997 and are payable in 1998. Guillaume noted his valuation went up 10% this year. Jabbour responded that the purchase price defines the market value. Erickson stated he would review the records on this property to be sure the improvements are calculated correctly. 3 MINUTES OF THE BOARD OF REVIEW MEETING HELD APRIL 22, 1998 9. Joan L. Carlson, 2080 Shadywood Road, #17- 117 -23 310019 - Ms. Carlson stated she had lived at this lakeshore residence for 38 years and was trying to remain there. The 1997 valuation was at $314,000, and 1998 is at $367,000, a 17.5% increase. She explained that the house was the smaller portion of the valuation and she has discovered that the house has "truss lift ". This has caused major structural problems with the walls and ceiling. The house was built in 1982 -83. The Assessor will visit this property for a review. It was moved by Goetten, seconded by Peterson, to continue the meeting to the Reconvened Board of Review on May 11, 1998 at 6:30 p.m. as the Board must meet within 20 calendar days. Written Appeals Submitted: A. Lawrence Kane, 2697 Casco Point Road, #20- 117 -23 23 0004 Guy and Sally Milliren, 1991 Fagemess Point Road, #18- 117 -23 410001 Jim Zimmerman, 2745 Shadywood Road, #21- 117 -23 310003 Thomas and Marilyn Swanson, 1740 Shadywood Road, #17- 117 -23 210020 Bruce A. Skjerping, 1820 Shadywood Road, #17- 117 -23 24 0015 Warren and Christine Bielke, 2565 Dunwoody Avenue, #20- 117 -23 210031 Doug and Margo Williams, 1020 Tonkawa Road, #08- 117 -23 13 0014 is ADJOURNMENT The Board of Review adjourned at 8:02 p.m. Gabrie Jabbour, Mayor ATTEST: , e, � �,, Lin Vee, City Clerk • 4