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HomeMy WebLinkAboutCity Council Minutes 04-23-1997 BOEMINUTES 1997 BOARD OF REVIEW APRIL 23, 1997 The meeting of the Plymouth City Council sitting as the 1997 Board of Review was called to order by Deputy Mayor Wold at 7:00 p.m., in the Council Chambers, 3400 Plymouth Blvd., on April 23, 1997. COUNCIL PRESENT: Deputy Mayor Wold; Councilmembers Bildsoe, Johnson, Preus, and Spigner. ABSENT: Mayor Tierney, Councilmember Black. STAFF PRESENT: City Manager Johnson, Assistant City Manager Lueckert, Finance Director Hahn, Assessor Bye, Senior Appraiser Olsson, Commercial Appraiser Zent; Appraisers Kingsbury and McCormick, and City Clerk Ahrens. Deputy Mayor Wold stated that staff has supplied a written report and recommendation on each parcel presented for consideration at the April 9 Board of Review meeting. He asked that Councilmembers and the audience indicate whether they wish to discuss specific parcels or recommendations. The following parcels were removed for individual consideration: Name/Address PIN # 1997 Value Recommendation Carol Burgess 35-118-22-21-0006 126,200 122,000 16705 12"' Ave. N. 32-118-22-21-0059 495,900 No Change Gordon Anderson 35-118-22-21-0002 130,500 126,400 15155 38" Ave. N. 16-118-22-31-0015 239,300 No Change Chris Paddock 2700 E. Medicine 24-118-22-34-0008 420,900 No Change Lake Blvd. Max Daubenberger 1682045 1h Ave. N. 17-118-22-21-0012 1 $306,400 No Change Motion was made by Councilmember Spigner, seconded by Councilmember Preus, to accept the staff recommendation on all of the following parcels: Van Cardashian 1015 Ives Lane N. 35-118-22-21-0006 126,200 122,000 Alvin Hohbein 1020 Ives Lane N. 35-118-22-21-0002 130,500 126,400 Susan Stavenau Board of Review April 23, 1997 Page 2 12435 44h Ave. N. 14-118-22-22-0070 200,000 No Change Jane Krzesowiak 1472532 d Ave. N. 21-118-22-13-0064 136,700 133,500 Gerald Ulman 40 Jewel Lane N. 32-118-22-33-0023 152,600 No Change Ronald/Beverly Hoffman 30-118-22-41-0038 133,600 No Change 1630 Olive Lane N. Brad Haigh 3780 Rosewood Ln. 15-118-22-44-0041 311,000 299,300 James Williams 12825 43`d Ave. N. 15-118-22-11-0027 406,300 388,000 Bella Shagalov 205 Quaker Lane 36-118-22-43-0004 168,100 156,400 Ronald Rousu 1630 Fountain Lane 29-118-22-31-0049 119,600 No Change Leland and Doris Campbell 34-118-22-32-0020 124,100 No Change 13902 Sunset Trail Di Weng and Xiaoning Li 11-118-22-14-0097 150,200 No Change 11290 50'h Pl. N. Phillip Klone 18700 28"' Ave. N. 19-118-22-33-0026 187,000 No Change Red Roof Inn 2600 Annapolis Ln. 22-118-22-34-0020 2,321,000 No Change TLC Polyfoam, Inc. 13055 15`" Ave. N. 27-118-22-44-0039 680,000 No Change Oakwood Investments 30-118-22-44-0015 7,191,000 No Change 1305/1405 Olive Ln 30-118-22-44-0014 Pat Alagna 1529 Medicine Lake 26-118-22-42-0002 79,900 No Change Drive Deputy Mayor Wold stated that he is abstaining on Oakwood Investments, 1305 and 1405 Olive Lane North (30-118-22-44-00015 and 30-118-22-44-0014), due to a conflict of interest. Motion carried; five ayes, no nays, with the exception of Oakwood Investments, 1305 and 1405 Olive Lane: four ayes; Wold abstained. Board of Review April 23, 1997 Page 3 Max Daubenberger, 16820 45"' Avenue North (17-118-22-21-0012) Max Daubenberger, 16820 45"' Avenue North, stated that he felt his previous year's value was incorrect. However, he arrived late for the Board of Review meeting, and action had already been taken on his parcel. Mr. Daubenberger said that none of the comparables listed in the staff report were identified as comparables when he spoke with the appraiser. The sales price of each of the three comparables is noted, but there is no indication of the comparison to market value. Councilmember Bildsoe asked staff to explain what is considered when setting values. Assessor Bye said staff considers comparable sales when establishing value. She shared the sales prices and dates on the three properties used as comparables. Councilmember Johnson said that Mr. Daubenberger's property is assessed at slightly lower than his sales price. She asked Mr. Daubenberger if he feels that is unequitable. Councilmember Black arrived at 7:10 p.m. Mr. Daubenberger responded that typically the market value is established in an amount less than the sales price. Assessor Bye defined "market value" and said that staff considers the sales prices of comparable properties when establishing market value. About 700 sales occurred last year in Plymouth, and those sales are used as comparables in establishing values. The sales are closely studied to determine accurate market values. Councilmember Johnson said that it is a common misunderstanding that market value is based on a percentage of sales price. Motion was made by Councilmember Preus, seconded by Councilmember Spigner, to accept the staff's recommendation and to make no change in the value of $306,400 for the property at 16820 45`'' Avenue North (17-118-22-21-0012). Motion carried, five ayes. Deputy Mayor Wold announced that the decisions of the Local Board of Review may be appealed by appointment to the Hennepin County Board of Equalization. Carol Burgess, 1670512' Avenue North, (32-118-22-21-0059) Councilmember Johnson said she had visited the property and questioned whether it is lakeshore. She believes that the property is lakeview, rather than lakeshore. She also questioned the sales price of the parcel. The Certificate of Real Estate Value indicates a total purchase price of $515,000, and the current value of the parcel is $495,900. Board of Review April 23, 1997 Page 4 Assessor Bye said that a Certificate of Real Estate Value is required by state law to be completed when a property is sold. Carol Burgess, 16705 12`h Avenue North, said that she believes her property is lakeview, rather than lakeshore. The property was subdivided to make it appear as though both lots had lakeshore. She said that her lakeshore access is really wetlands and there is no lake access other than on a property four lots from her parcel. In order to use the lakeshore, she would have to trespass on another property. Ms. Burgess said that she spoke with a tax attorney who indicated that in order for a property to be lakeshore, it must be accessible for use of the lake. Councilmember Bildsoe noted that the Certificate of Real Estate Value for the property is dated September 30, 1996. It is signed by Carol Burgess and indicates a purchase price of $515,000 for the property. Ms. Burgess said the transaction was part of a property trade for a house she had on Lake Minnetonka in Orono. She never felt that the sales price was accurate, but there were a number of reasons she wanted to complete the transaction in order to sell the home in Orono. Councilmember Bildsoe said that the property at 16705 12`h Avenue North was a Parade of Homes model home that had been advertised for $529,900 according to a sales flyer included in the staff report. Ms. Burgess responded that a 2 to 3 percent sales commission charge is generally built into the listing price of a Parade home. She said that the comparables noted by staff are much larger than her home or have additional amenities, were built in new neighborhoods, and were recently sold. She stated that the home at 1210 Dunkirk Lane was constructed by the same builder as her home. The Dunkirk Lane home is 400 square feet larger and has amenities such as a floor to ceiling fireplace, additional sitting room off of the master bedroom, a porch that is part of the overall house, full heating and air conditioning, lakeview, intercom, elevator, four bedrooms, and a full downstairs kitchen. The home at 14715 11 `h Avenue has the same floor plan, and was also built by the same builder as her home. This property sold for $317,000 about three years ago. Ms. Burgess presented information on other homes in her neighborhood as representative of the neighborhood. She said that the last asking price for 17105 12`h Avenue was $134,800. The last asking price for 16810 12`'' Avenue was $119,000. The property at 17200 12`h Avenue North has been on the market for 152 days and the most recent asking price was 169,900. She believes this information should be considered because this is an older neighborhood which is a detriment to market price. Ms. Burgess said that of the comparables presented by staff, the property at 5315 Union Terrace Lane is the most similar to her property. It had a sales price of $420,000. Board of Review April 23, 1997 Page 5 Councilmember Johnson said that Ms. Burgess' property is the top -priced home in an area of substantially lower valued properties. This has an impact on value. She said that the comparables used by staff have larger square footage and are in a different type of neighborhood than the subject parcel. She said that the property at 17205 5th Avenue North is a good comparable, except for the age of the property. She also cited 1305 Zircon Lane which was built in 1995, has a 2,100 square foot foundation, and sold in 1996 for $427,000. Adjustment would need to be made because the Zircon Lane property is not lakeshore. Councilmember Johnson said that based on her real estate knowledge and experience, she believes that Ms. Burgess' property should be valued at about 450,000. Councilmember Preus noted that the comparables used by staff are not lakeshore properties. He asked how much a lakeshore classification impacts the value of a property. Senior Appraiser Olsson responded that lakeshore classification has a great impact on value. She stated that there are no vacant lakeshore lots in Plymouth. Some older lakeshore homes are being demolished and new homes built on the lots. Councilmember Bildsoe said that he will support the established market value of 495,900, due to the $515,000 purchase price indicated on the Certificate of Real Estate Value and the Parade of Homes promotional sales document marketing the property at 529,900. Motion was made by Councilmember Bildsoe, seconded by Councilmember Spigner, to accept the staff recommendation for no change in the $495,900 value for 16705 12`h Avenue North (32-118-22-21-0059). Motion carried; four ayes; Johnson nay. Gordon B. Anderson, 15155 38' Avenue North, (16-118-22-31-0015) Councilmember Johnson said that good comparables were available for this parcel because it is in a townhome development. She asked if the units are identical. Assessor Bye responded that these are very nice townhouse units that vary somewhat in design. Councilmember Johnson said that the staff report indicates that a building permit was obtained to remodel the kitchen and bathroom at an estimated cost of $40,000. She asked if square footage was added to the home. Assessor Bye said that Mr. Anderson entirely remodeled the bathroom and kitchen, which are typically the most expensive rooms in a house to upgrade. He did substantial Board of Review April 23, 1997 Page 6 updating of these rooms. There was no change in square footage area. She said that staff has been unable to view the work accomplished under the building permit. Staff has informed Mr. Anderson that a reappraisal could be done when he returns to the City. Mr. Anderson also has the option of appealing his value to the County Board of Equalization. Motion was made by Councilmember Preus, seconded by Councilmember Black, to accept the staff recommendation of no change in the market value of $239,300. Motion carried, five ayes. Chris Paddock, 2700 Medicine Lake Blvd. E., (24-118-22-34-0008) Councilmember Johnson said that the comparables provided by staff are good on this parcel. She asked if the "unique and contemporary floor plan" noted by the Paddock's Realtor could be a detriment to sale price. Senior Appraiser Olsson said that this lovely home is perfect for entertaining. It includes three formal living rooms. It has an open, contemporary look and the entire top floor is a master suite. It was constructed by a good builder. The home has open lines and is beautifully decorated with soft colors. She identified nothing relating to the uniqueness of the home that would be a detriment to sale. Motion was made by Councilmember Black, seconded by Councilmember Johnson, to accept the staff recommendation to make no change in the value of $420,900 for 2700 East Medicine Lake Blvd., (24-118-22-34-0008). Motion carried, five ayes. Motion was made by Councilmember Preus, seconded by Councilmember Black, to adjourn the meeting at 8:00 p.m. Motion carried, five ayes. Laurie Ahrens City Clerk