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HomeMy WebLinkAboutCity Council Minutes 04-27-1999 BOEAdopted Minutes 1999 Board of Review April 27, 1999 The meeting of the Plymouth City Council sitting as the 1999 Board of Review was called to order by Mayor Tierney at 7:04 p.m., in the City Council Chambers, 3400 Plymouth Blvd., on April 27, 1999. COUNCIL PRESENT: Mayor Tierney; Councilmembers Johnson, Bildsoe, Slavik, and Black. ABSENT: Councilmembers Spigner and Harstad. STAFF PRESENT: City Manager Johnson, Finance Director Hahn, City Assessor Bye, Senior Appraiser Olsson, Commercial Appraiser Zent; Appraisers Kingsbury, McCormick and Moos; Finance Office Supervisor Leitner, and City Clerk Ahrens. City Assessor Bye introduced the assessing division staff. She said there are over 22,000 parcels in the City of Plymouth. She stated that the overall market value of the city increased by 8.9 percent from 1998 to 1999, of which 3.1 percent was the result of new construction. The total value in the City as of January 2, 1999, was $4,854,644,500. There were 1,800 residential sales in 1998 and 1,100 of these were existing homes. The average sale price of existing single family homes was $206,300 in 1998, which is a 7 percent increase from $192,800 in 1997. Assessor Bye said the majority of residential neighborhoods received a 4 percent increase, with an average increase on townhouses and condominiums from 4 to 7 percent. Industrial and commercial property values increased an average of 6 percent from 1998 to 1999. This increase was due to the market sales, increasing rents and profits to owners, and the economic recovery which has created demand for new construction. Assessor Bye reported that the 1999 apartment values increased an average of 12 percent from 1998 to 1999 due to market activity, increase in rents, very low vacancy rates, and the limited availability of land zoned for apartment use in Plymouth. City Assessor Bye said the 1998 sales study completed by staff and Hennepin County place Plymouth's overall median ratio at 93.9 percent on residential properties. The Hennepin County area—wide ratio on residential properties is 94.4 percent. Valuation notices were mailed to all property owners in the City on March 31 and most concerns have been resolved prior to this meeting. Councilmember Johnson asked why Wayzata School District 284 is reported in two sections in the staff report. Assessor Bye responded that a portion of School District 284 has an additional watershed district levy. Adopted Board of Review Minutes April 27, 1999 Page 2 1. Jingxi Yin, 3045 Rosewood Lane North [22-118-22-41-0009]. Mr. Yiu said his value was $186,700 last year and has increased by 7.3 percent to $201,100 this year. His home is relatively at the high end of housing cost for his neighborhood, as most of the homes are in the range of $150,000 to $170,000. He purchased his home two years ago, and asked for a review of the value. 2. Kim Mertens, 1820 Garland Lane [29-118-22-31-0062]. Ms. Mertens presented a written request a reduction in her value. 3. Al Goblirsch, 5505 Vicksburg Lane North [05-118-22-44-0003]. Mr. Goblirsch appeared with his son, Terry. Terry Goblirsch said the property value increased 72 percent from last year, and it had increased 120 percent the previous year. Since 1996, the value has increased 281 percent. He said that staff has offered to adjust the value due to some of the acreage deemed to be wetlands or wetland eligible; however, he requested a further reduction in value. Mr. Goblirsch said this property is in the northwest area of Plymouth and there were two recent sales in October 1997 and January 1998 where US Homes purchased parcels for $25,000 per acre. He said the price of $25,000 per acre was used by assessing staff as a starting point and basis for determining Mr. Goblirsch's value. He said that although those parcels are also undeveloped, the US Homes parcels are very near City services and more likely to develop in the short-term than his property. Mr. Goblirsch said that his alternative calculations would result in a value of $300,266 or $361,000. He believes that the 1998 value of $346,000 is in line with what he could sell the property for today. Mayor Tierney said that it is more likely that Mr. Goblirsch's property would develop in the short-term than one of the sales he cited which is near Troy Lane. Councilmember Black expressed concern that the increase in values near the Metropolitan Urban Service Area (MUSA) is putting pressure on property owners in northwest Plymouth to develop their property. She said that if the Council has elected to adopt a plan not to develop portions of northwest Plymouth, then the values need to be based accordingly. Councilmember Johnson asked about the tax classification on Mr. Goblirsch's parcel and the comparables used by staff. Assessor Bye responded that it is the farm tax rate, which is the lowest tax classification. Comparable sales outside of the MUSA would be evaluated, with contacts to the buyers and sellers to understand their motivation. The sales that have occurred must be considered, and she believes that it is more likely that Mr. Goblirsch's parcel would sell to a developer than for farm use due to its location. Adopted Board of Review Minutes April 27, 1999 Page 3 Councilmember Johnson asked Mr. Goblirsch if developers have contacted him with an interest to purchase the property. Mr. Goblirsch stated that a real estate agent contacted them; however, the offered price was not near $25,000 per acre. Mayor Tierney explained that the City Council has decided to allow development only easterly of Vicksburg Lane in the near future. Councilmember Black said that while the Council approved the basic concept not to develop west of Vicksburg Lane or north of Schmidt Lake Road, it could potentially not be a hard and fast line as individual requests are received. Mayor Tierney concurred that there will be political pressure to adjust the lines. 4. Written Appeals City Assessor Bye announced that written appeals were received from the following: Jan Steppat, 1152 Trenton Circle North [36-118-22-21-0065] John N. Allen, vacant land [36-118-22-24-0085] Josephine C. Hughes, 4025 County Road 101 North [18-118-22-42-0066] William & Lisa Doerr, 2355 East Medicine Lake Blvd. [25-118-22-11-0010] 5. Brandon Development Company, vacant land [08-118-22-23-0005; 08-118-22- 22-00111 A written appeal was submitted by Brandon Development Company on two parcels. The Board of Review was recessed at 7:45 p.m. and set to reconvene on Tuesday, May 11, at 7:00 p.m. Staff will send notice of the reconvene date to each person who submitted oral or written comments. zaz La 'e Ahrens City Clerk