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HomeMy WebLinkAbout04-24-1996 Board of Review MinutesMINUTES OF THE BOARD OF REVIEW MEETING • HELD APRIL 24,1996 ROLL The Orono Board of Review met on the above date with the following members present: Mayor Edward J. Callahan, Jr., Councilmembers Gabriel Jabbour, J. Diann Goetten, Charles Kelley and JoEllen Hurr. The following represented City staff: City Administrator Ron Moorse, City Assessors Rolf Erickson, Gail Navratil and Lisa Mott, Hennepin County Senior Appraiser James Atchison and Recorder Lin Vee. Senator Gen Olson was also present. The meeting was called to order by Mayor Callahan at 7:05 p.m. Mayor Callahan explained that the Board considers objections to tax valuations of property for 1997. He stated that further appeals could be made to the County Board of Review or District Court. Mayor Callahan added that no decisions would be made at tonight's meeting. An appointment could be made with the Assessor to further discuss property valuations rather than waiting to appear before the Board at the current meeting. Erickson noted that Board of Review Information sheets were available to those present which further explained definitions and the review process. Mayor Callahan 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 1996 Notice of Valuation and the value the owner feels appropriate. Mr. Ken Carlson, 3498 North Shore Drive, #08- 117 -23 43 0014/15 - Carlson distributed some information sheets to the Council regarding his property. The 1997 valuations are at $148,000 and $91,000. There has been an 18.7% increase since 1994. No improvements have been made since 1980 on the residence. The one bedroom rental property was bought in 1972 and no capital improvements have been made in 20 years on this less than 700 s.f. property. He felt the rental property should be valued at approximately $70,000. This is not lakeshore property as it is divided by County Road 51 but does have Lakeshore across the road with a dock. He thought the residence would be worth about $130,000. Curt Ouady. 1223 Brown Road South, #10-117-23 310065 - His 1997 valuation is at $104,000 and he feels it should be at $90,000. Quady has talked with realtors and looked at comparable properties in the neighborhood. He thinks it will cost $25,000- 30,000 to bring his house up to comparable properties. From 1989 to 1996 valuations have increased 144 %. The Assessor used the next door property and one on Prospect Avenue (2150 or 2160) as comparables. His 1996 valuation was $99,000 and was not lowered last year. Kelley suggested Quady submit the written report from the realtor. The house was built in 1917. • 1 MINUTES OF THE BOARD OF REVIEW MEETING HELD APRIL 24, 1996 • Jabbour noted that there are other taxing districts such as the schools and County which receive the majority of the tax dollar. The City of Orono only collects $.14 of every $1.00. Hurr asked about the law relating to houses 65 year old or more. Erickson explained the "This Old House" law which allows the value of qualifying improvements to be excluded for 10 years from taxation and added in over the :iext 5 years. Hurr asked if valuations could be reduced less than the previous year. Erickson responded that there were no restrictions. Steven Beck, 2795 Shadywood Road. #21- 117 -23 310002 - His 1996 valuation states $354,000 and he feels $340,000 would be appropriate. He noted that the estimated market value went up $16,000 while the limited market value went up $31,000 and asked for an explanation. Erickson responded that the limited market value is a carry-over from previous years and that the increase cannot be more than 10% per year by law. Beck explained that he has a unique property right on the narrows, noting excessive boat traffic, snowmobiles and milfoil as negatives for selling his property. The 1995 valuation was $338,000 and went up to $354,000. The limited value went from $306,900 to $337,600. He paid $345,000 fc,r the property two years ago. Katherine Fox 1095 Ferndale Road West. #02- 117 -23 43 _0023 - The 1997 valuation will be • $678,000. She explained that it was a little old house that has been added onto by previous owners. It is very close to the lake with a large boggy area making it not buildable. She thought the value would be about $500,000. They have approximately 150' of lakeshore with an adjacent vacant lot. They do not homestead the property. Lois Hudlow, 3438 Lyric Avenue. #17-117-23 43 0077 - The 1997 valuation is at $59,000 and went from $51,000 in 1994 to $56,000 last year. Her home is behind the main Navarre business district. She has had two real estate agents review the property and they did not think it would sell for $59,000 but between $51,000 and $55,000. She added that there is no basement on this 50' lot and no room for improvements. Even though the property is considered lakeshore residential, it is not near the lake. She thought $55,000 would be a reasonable valuation. She thought financing would be a problem for a buyer because it would not qualify for FHA or VA. Erickson commented that realtors are not licensed to do appraisals and can only do a market analysis for listing purposes. John Ericson 1620 Shadywood Road. #17- 117 -23 21 0012 - The market value for this year's statement is $292,600 with the estimated at $302,000. In 1993 the value was at $240,000; 1994 at $261,000; and 1995 at $266,000 making this year's increase $26,600 which is excessive. He thought a fair value would be $275,000- 280,000. The house was built in 1910 and remodeled in 1988. Jabbour commented that two years ago the Board did reduce the valuation. 2 0 MINUTES OF THE BOARD OF REVIEW MEETING • HELD APRIL 24,1996 C.E. Boehm. 997 Wildhurst Trail. #07- 117 -23 210004 - The valuation in 1995 was $168,000; 1996 limited market value is at $184,000 with estimated at $202,000. The valuation has gone up 20.2 %. When he talked with the Assessor's office, they told him the downstairs had increased to 90% finished but he stated there had been no improvements in the last 12 years. He thought there should be a gradual progression of increase. The home was built in 1977 and is on a channel. The Assessor has visited the property in the last few years. Boehm commented that there were million - dollar properties across the street and he had been assessed for the street improvements. Chris Morgart, 1003 Wildhurst Trail, #07- 117 -23 21 0016 - He stated that he had solved the problem. James and Maxine Lorence. 4460 North Shore Drive. #07- 117 -23 310039 - He moved to Orono 8 years ago and the home was valued at $168,000 at that time. The 1997 valuation is at $293,000 and has gone up at least 10% almost every year. The 1995 valuation was $244,000 and 1994 was at $223,000. He listed a number of neighborhood violations that have not been resolved by the City. The neighboring properties at 4480 and 4470 North Shore Drive are rentals and have 4 -6 boats all summer. He feels the neighborhood has become a "slum" and has diminished his property value. Mayor.Calla:�an suggested that Mr. Lorence copy his list of complaints and letters and submit them • to the City Administrator who will forward to Council. He feels $200,000 would be a fair valuation. Robert Larson. 724 Tonkawa Road. #05-117-23 34 0003 - Mr. Larson did not stay to appear before the Board. Mur Senn. #4448 North Shore Drive. #07- 117 -23 310013 - She has lived at this address for 23 years and is concerned about the taxes jumping in such large increments. The property is 38' from the channel and about 20' from the highway on a pie- shaped lot that is not buildable. The 1996 valuation is $137,000 and 1995 was at $114,000. Jabbour noted that this is an extremely limited property. William H. Bockmann. 1090 Loma Linda Avenue. #08- 117 -23 23 0010 - Mr. Bockmann did not stay to appear before the Board. William A Bockmann. 1130 Loma Linda Avenue. #08- 117 -23 23 0012 - Mr. Bockmann did not stay to appear before the Board. Myra Karlen. 630 Deborah Drive. #31- 118 -23 22 0008 - In 1991 the property was valued at $324,100 and has increased to $430,000 for 1997. When she called the Assessor's office, they told her to compare a house that had sold on Orchard Road but the Karlens have an upstairs making it not a comparable. She stated there were two homes in the neighborhood that have sold and should • have been used as comparables. One across the street sold in December of 1995 for $317,000 which 3 MINUTES OF THE BOARD OF REVIEW MEETING HELD APRIL 24,1996 • has 8 acres (more land than her property) and more amenities. The home next door sold in the winter of 1994 for $334,000 which has 10 acres. Last year she filed papers at the Hennepin County Courthouse -Tax Court but has not heard anything. Erickson commented that the Tax Court is probably 1' /z years behind. She feels it would be worth $414,000. The Assessor will revisit this property. J.L. Carlson. 2080 Shadywood Road. #17- 117 -23 310016 - The 1997 valuation is $311,000 and the 1996 valuation was $299,000. She feels the values are going up too fast forcing those who have lived in the area for years to move out because they cannot afford the taxes. She felt the valuation should be at about $300,000. Erickson explained that they do not base valuations on comparable fee appraisals because it would be too costly for the City. They look at various parts of the lakeshore and many different neighborhoods to determine average increases. He noted that competition for less expensive homes is increasing. .G .W. Kalweit 4265 Forest Lake Drive, #07- 117 -23 12 0016 - The 1997 valuation is for $258,000 and he feels it should be at $241,000. In 1995 it was $239,000 and in 1996 it was at $240,000. There have been no improvements to the house. He did not feel their particular lakeshore increased • 6% in value because a stormsewer had been installed illegally before they purchased the property. He had photos showing the growth as a result of the improper drainage. The homeowners have asked for dredging in this area. There is a lift station across the road that has malfunctioned on several occasions for various reasons causing water /sewer damage in their home. Ty Bucey. 2677 Casco Point Road. #20- 117 -23 23 0020 - His 1997 valuation is at $364,300. Due to a fire, they had to rebuild and built the floor plan of a neighboring home (valued at $330,000). The property is a 60' lot on a cliff. He feels the home is worth $325,000. The old house was appraised at $265,000. It cost $225,000 to rebuild, leaving the difference in the value of the property. Jack Isaaman 210 Big Island. #23- 117 -23 23 0034 - The valuation of the cabin in 1994 was $63,000; in 1995 it was $67,700; for 1996 it is $74,600. There have been three sales on Big Island in the last year. 290 Big Island sold for $77,000 with a cabin of 842 s.f. The Isaaman cabin is 525 s.f. Another property sold for $55,000 and a third at $63,000, both were larger cabins. He has about 200' of lakeshore but one end is a swampy lagoon and has a fire lane. He thought $60,000 would be a fair assessment. The cabin was built in 1970. 4 • MINUTES OF THE BOARD OF REVIEW MEETING • HELD APRIL 24, 1996 Gerry Timm. 2885 Sixth Avenue North, #28- 118 -23 310007 - The valuation for 1997 is $140,400 and she thinks it should be at $120,000. They paid $158,000 which was a mistake. It is next to the proposed ice arena which she feels will decrease the property value. It is on a busy road with lots of anticipated noise. It was on the market for two years. In 1990 there was a VA sale for $137,000. She noted the basement was moldy and the carpet had to be replaced. Hurr suggested that she appear before the Board if, in fact, the ice arena does cause problems. Edward J. Callahan, Jr., 2545 North Shore Drive, #09- 117 -23 41_0003 - Withdrew request for reconsideration of the 1997 valuation. The Reconvened Board of Review will meet on May 13, 1996 at 6:30 p.m. as the Board must meet within 20 calendar days. Written Appeals Submitted: Jack Isaaman, 210 Big Island, #23-117-23 23 0034 Norma Jean Dickey, 4425 North Shore Drive, #07- 117[23 34 0003 Bob and Barbara Ponzetti, 2545 Kelly Avenue, #20- 117 -23 110023 Ward E. Edwards, 2474 Carman Street, #20- 117 -23 12 0027 • Michael See!ai�d or. Wanda Weber, 2940 Sixth Avenue North, #28- 118 -23 310001 Richard N. and Carol C. Flint, 1405 Sixth Avenue North, #35- 118 -23 22 0006 Gale Peterson, 1365 Tonkawa Road, #08-117-23 42 0004 Craig and Jennifer Lindell, 2655 North Shore Drive, #09-117-23 42 0001 Ron Bartz, 830 Windjammer Lane, #07- 117 -23 110009 David Vergeyle, 1485 Green Trees Road, #11- 117 -23 23 0011 Gary Eklof /Cathy Lee, 1965 Fagerness Point Road, #18- 117 -23 14 0009 ADJOURNMENT The Board of Review adjourned at 9:06 p.m. Edward J. Call ', Jr., Mayor i ATTEST: Dorothy M. al n, City Clerk 0 5