HomeMy WebLinkAboutCity Council Minutes 04-29-1996 BOEMinutes
1996 Board of Review
April 29, 1996
The meeting of the Plymouth City Council sitting as the 1996 Board of Review was called
to order by Mayor Tierney at 8:04 p.m., in the City Center, 3400 Plymouth Blvd., on
April 29, 1996.
COUNCIL PRESENT: Mayor Tierney; Councilmembers Lymangood, Granath, and
Black.
ABSENT: Councilmembers Anderson, Wold, and Preus.
STAFF PRESENT: City Manager Johnson, Assistant City Manager Lueckert, Finance
Director Hahn, City Assessor Bye, Senior Appraiser Olsson, Commercial Appraiser Zent;
Appraisers Carroll, Kingsbury, and McCormick; Support Staff Weitgenant, Kazimer, and
Kirkham; and City Clerk Ahrens.
The City Council directed that testimony taken since 7:20 p.m. be entered into the record.
William Nicholson, 16330 15th Avenue North, [29-118-22-43-00081
Mr. Nicholson stated that the value of his townhome ($94,300) is out of line with
the other similar two-bedroom, two -bath townhomes in the Chelsea Woods development.
He cited several examples of similar units valued from $76,000 to $79,000.
Betty Johnson, 10 Forestview Lane, [35-118-22-43-0031]
Ms. Johnson stated that in the last four years, her assessed value has increased by
7,800 to its present value of $118,000. She said the property taxes are becoming
prohibitive for the elderly. City Assessor Bye explained assistance that is available.
Ernest Clark, 970 Zanzibar Lane, [32-118-22-11-01361
Mr. Clark stated that his value has increased 20 percent in two years. He does not
believe that the condominium and townhouse markets will continue to appreciate because
interest rates are increasing.
Assessor Bye explained the statute relating to limited value. The Assessor is to
value property at market value; however, if the value is increased by more than 10 percent
in one year, the property owner is taxed at a limited value.
Jeff Baill, 2940 Pilgrim Lane, [24-118-22-42-00821
Mr. Baill stated that his value increased by $14,400 this year. He built the home in
1992. He recently asked a Realtor to provide a listing of similar homes that fit the
parameter of being built between 1991 and 1993 with finished square footage of 2,600 to
3,000, and having sold after April 1, 1995. He said that 11 homes met that parameter,
with an average sales price of $251,195. This is $45,000 less than the current value of his
home. He requested that his value remain the same as the 1995 value.
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April 29, 1996
Page 2
Jill Saken, 4585 Weston Lane, [08-118-22-44-0019]
Ms. Saken stated she bought the home in 1992 for $217,500. The 1996 estimated
market value is $261,600. Tha former owner had tried to sell the property in the fall of
1991 for $280,000, but could not sell. The home was rented and then relisted in July 1992
for $228,000. There have been no renovations or improvements to the property. She
provided information on six homes that have sold in the cul-de-sac in the last three years.
She requested a value reduction to $250,000.
Roger Bjorland, 12119 54th Avenue North, [11-118-22-21-0046]
Mr. Bjorland stated that his value has increased from $155,000 in 1994 to the
present value of $172,200. He retired several years ago and stated it is increasingly
difficult for elderly persons on fixed incomes to pay property taxes. He stated that his
home is 36 years old and one of the oldest homes on Bass Lake. A few years ago, vacant
lakeshore lots on Bass Lake were valued at $120,000 or more; however, he stated that the
value is reduced when there is an older structure on the lot.
W. I. West, 984 Zanzibar Lane, [32-118-22-12-0076]
Mr. West objected to the assessment and tax process in Minnesota.
Dorothy Krekelberg, 6150 Hemlock Lane, [02-118-22-12-0034]
Ms. Krekelberg requested a reduction in her value, as well as an explanation of
how the value is derived. Her. home was built in this area in 1972, and she currently pays
7,822 in property taxes. She believes that the formula for real estate taxes should be
amended to provide for a reduction as property ages.
Councilmember Lymangood explained the property tax process.
Staff Report
City Assessor Bye introduced the assessing division staff. She said that 2,000
building permits were issued in 1995 for new construction, 564 of which were for new
single family homes. Sixteen new commercial/industrial buildings were constructed in
1995, and the total commercial/industrial value increased by 10.6 percent. There were
1,600 residential sales during 1995, 940 of which were existing homes. She stated that
the average home sales price was $166,800 in 1994 and $175,700 in 1995. This is a 5.3
percent increase in market value. The average home sales price has increased 23.7 percent
since 1990. The average sales price of a new single family home was $265,600 in 1995.
She stated that sales of vacant land indicates a substantial increase in value during the last
two years. Land outside of the metropolitan urban service area (MUSA) has sold for
10,000 to $15,000 per acre. Property within the MUSA, but with no utilities, is selling
between $25,000 and $30,000 per acre. Property within the MUSA with sewer and water
available is selling for $35,000 to $40,000 per acre.
She stated that residential detached homes have increased in value between 4.3 and
11 percent depending on the neighborhood. Sales activity on townhomes and
condominiums is brisk and the market is strong. Commercial property has increased in
Board of Review.
April 29, 1996
Page 3
value about 13 percent. Apartment values have increased about 10 percent. Some
apartments currently have quarterly rent increases with near zero vacancy rates.
Assessor Bye explained that state statutes require her staff to appraise property at
100 percent of estimated market value. The city-wide sales study places Plymouth's
overall median value at 93.5 percent, which indicates that overall properties are not valued
too high. If a city drops to less than 90 percent, the State can make across-the-board
value increases to affected property classifications.
Bernard Barr, 11670 61st Avenue North, [02-118-22-12-0040]
Mr. Barr objected to his estimated market value and the equity of value between
similar homes.
John Norton, 1745 Black Oaks Lane, [29-118-22-42-0089]
Mr. Norton, stated that when he purchased his home in 1991, the estimated market
value was $89,700. The value has increased by $36,400 over the next four years, and his
taxes have doubled. He has done no improvements to the property, and he stated that his
property is valued higher than similar properties in Chelsea Woods. His estimated market
value is $125,900, while the mean value of homes sold in the last year in Chelsea Woods
was $114,300. He requested that his estimated market value be reduced to $114,300. He
believes that the City should value property at less than the actual market value in order to
protect citizens from high taxes.
Sverre Pederson, 1320 Urbandale Lane, [30-118-22-34-0025]
Mr. Pederson stated that a City appraiser recently visited his property, but would
not reduce his estimated market value from $228,700. He stated that he was informed in
1993 by a staff member that his property value would not increase for two years; however,
the value has significantly increased. He asked for a reduction in value, but stated that the
appraiser does not need to visit his property again.
Jo -Anne E. Stately, 11800 61st Avenue North, [02-118-22-12-0037]
Ms. Stately stated that her estimated market value has increased 42 percent since
she bought it 12 years ago. She stated that there have not been many sales in her
neighborhood, and the homes that are selling are larger than her home. She would like to
add landscaping or a garage, but is concerned that this would cause an additional increase
in value.
Brandon Development Co., P.O. Bog 28718, Oakdale, [08-118-22-23-0005]
A representative of Brandon Development Co. stated that the value on this vacant
land has significantly increased. He understands that taxes can be reduced through use of
the limited market value; however, that value will expire in 1998. He stated that taxes
should not be increasing in Plymouth because of the amount of growth. He addressed
issues relating to MUSA expansion and changes in city ordinances relating to
development. He said that he was not notified of the improvement project for the Schmidt
Lake extension, and staff cannot locate the mailing list.
Board of Review
April 29, 1996
Page 4
Veronica Strehle, 1510 Black Oaks Place North, [29-118-22-42-0126]
Ms. Strehle stated she wis been a resident for 22 years and has never before
questioned her value. However, her taxes have now doubled in 17 months.
Gary Olmstead, 4045 Terraceview Lane North, [16-118-22-23-0082]
Mr. Olmstead stated that the City should have a program to establish values at 90
to 95 percent of actual market value, rather than setting values at 100 percent.
Assessor Bye explained that the City is mandated by state statute to establish
values at 100 percent of estimated market value. The assessing staff tries to be fair in
establishing values, and the City ratio is 93.5 percent, which is slightly lower than the rest
of Hennepin County. She added that if the City falls below 90 percent, things such as
school aids can be impacted, and the State Board of Equalization will give an across-the-
board increase to classifications of property in the City.
Councilmember Lymangood asked staff to provide a history of the sales ratio
percentages for the past several years.
John Norton, 1745 Black Oaks Lane, stated that this is an important meeting to the
public, and he believes that a quorum of the Council should have been present at 7 p.m.
City Assessor Bye stated that written comments relating to value were also received. The
Council acknowledged receipt of letter from the following:
Gerald Chmielewski, 12410 26th Avenue North, [23-118-22-33-0071]
Wallace Johnson, 16705 32nd Avenue North, [20-118-22-24-0037]
Seung Huh, 5360 Norwood Lane North, [11-118-22-22-0020]
Larry Fundingsland, 2320 Medicine Lake Blvd. E., [25-118-22-11-0004]
Max Daubenberger, 16820 45th Avenue North, [17-118-22-21-0012]
Scott McGinnis, 4330 Hemlock Lane North, [14-118-22-12-0016]
William Anderson, 1710 Niagara Lane North, [28-118-22-42-0006]
Donald Fish, 12645 54th Avenue North, [11-118-22-22-0019]
Donald Brody, 11140 57th Avenue North, [02-118-22-41-0064]
Gerald Harty, 2530 W. Medicine Lake Dr., [26-118-22-12-0018]
William Roth, 10525 48th Avenue North, [12-118-22-31-0036]
Gerald Cady, 1030 Zanzibar Lane North, [32-118-22-12-0067]
LaVonne Wanka, 1174 Weston Lane North, [32-118-22-11-0009]
Judith Morrow, 1020 Xene Lane North, [32-118-22-11-0099]
Jane Krzesowiak, 14725 32nd Avenue North, [21-118-22-13-0064]
Joan Schluttner, 15748 27th Avenue North, [21-118-22-33-0176]
Karl Groth, 4145 Terraceview Lane North, [16-118-22-23-0093]
Margaret Gossmann & Marjorie Fischbach, 4100 Upland Lane North
16-118-22-23-113]
Leland Campbell, 13902 Sunset Trail, [34-118-22-32-0020]
Dee Bloch, 4035 Terraceview Lane North, [16-118-22-23-0081]
Tom Macht, 695 Olive Lane North, [31-118-22-14-0034]
Board of Review
April 29, 1996
Page 5
Jean Koski, 4135 Terraceview Lane North, [16-118-22-23-0092]
Sarah Krakowski, 3210 Lanewood Lane North, [21-118-22-13-0030]
Bill LaBreche, Sr., 1735 Black Oaks Lane North, [29-118-22-42-0090]
Delano Erickson, 2317 Kirkwood Lane North, [26-118-22-21-0085]
David Esposito, 4085 Quantico Lane North, [16-118-22-23-0011]
Thomas Witchger, Jr., 2315 Fountain Lane North, [29-118-22-24-0005]
John Lunn, 4037 Quantico Lane North, [16-118-22-31-0009]
Donald Nord, 4105 Quantico Lane North, [16-118-22-23-0038]
Joseph Sorrentino, 525 Queensland Lane North, [31-118-22-42-0037]
MOTION was made by Councilmember Lymangood, seconded by Councilmember Black,
to adjourn the meeting at 9:00 p.m. and to reconvene the Board of Review on Monday,
May 20, at 7:00 p.m. Staff was directed to send notice of the reconvene date to each
person who submitted oral or written comments by certified mail no later than May 10.
Motion carried, four ayes.
Laurie F. Ahrens
City Clerk