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HomeMy WebLinkAboutCity Council Minutes 04-10-1995 BOECITY OF PLYMOUTH MINUTES 1995 BOARD OF REVIEW APRIL 10, 1995 The 1995 Board of Review of the City of Plymouth was called to order by Deputy Mayor Edson at 7:00 p.m. in the Council Chambers of the City Center, 3400 Plymouth Blvd., on April 10, 1995. PRESENT: Deputy Mayor Edson; Councilmembers Anderson, Wold, and Helliwell. ABSENT: Mayor Tierney, Councilmembers Lymangood and Granath. STAFF PRESENT: City Manager Johnson, Assistant Manager Lueckert, Finance Director Hahn, City Assessor Bye, Senior Appraiser Olsson, Appraiser Carroll, Appraiser McCormick, Appraiser Kingsbury, Data Control Clerk Kazimer, Senior Clerk Typist Kirkham, and City Clerk Ahrens. Deputy Mayor Edson welcomed residents to the 1995 Board of Review. He stated that the function of this meeting is to receive objections to the Assessor's 1995 Estimated Market Value or Property Classification. No decisions on value or classifications will be made this evening. All comments will be referred to staff for consideration by the Board of Review at a reconvened meeting. He noted that the Board of Review is not empowered to adjust taxes. Residents who appear tonight or who have submitted written appeals to their assessed value may continue their appeal to the County Board of Equalization. City Assessor Bye introduced the Assessing staff. She stated that the 1995 assessment reflects an increase of 8.6 percent in valuation over the 1994 assessment, of which 4.3 percent was new construction. Since 1990, the average home sales price in Plymouth has increased 17.5 percent. The average home sale price increased from $157,500 in 1993 to 166,800 in 1994. The sales of vacant land has also increased substantially. Previously, vacant parcels sold in the range of $35,000 to $60,000. Currently, average non-lakeshore lots are selling in the $55,000 to $80,000 range, with some lots selling in excess of 100,000. Sales of property and building permit activity was brisk during the past year. Assessor Bye reported that this is the first year that commercial and industrial property values have leveled out after spiraling downward over the last five years. Apartment values are also on the increase with very low vacancy rates. She stated that Plymouth has a very comparative overall sales median of 93.5, versus 93.8 percent for the overall Hennepin County ratio. Michael Swanson, 6000 Kirkwood Lane, (02-118-22-24-0011). Mr. Swanson shared background information on the estimated market value of his property and his appearances Board of Review April 10, 1995 Page 2 in tax court. He purchased his home for $115,000 in 1991. His estimated market value in 1991 was established by the City at $132,300, but reduced to $115,000 through tax court Case Number TC -16455). The City Assessor reduced his 1992 value from $133,300 to 115,000. His estimated market value in 1993 was established by the City at $119,000, but reduced to $112,200 through tax court (Case Number TC -21702). The City established his 1994 value at $124,000, which is now filed in tax court (Case Number TC - 23331), and his 1995 value is established at $131,000. Mr. Swanson said that even if there was a 4.7 percent increase from 1993 to 1994, and a 5 percent increase from 1994 to 1995, that would result in a property value of $123,000 for 1995. He said that no improvements have been done to his home. The assessing staff recently visited his home and verified that the estimated market value for 1995 is 131,000. He requested that his estimated market value be reduced to $123,000 for 1995, and that the City Assessor be directed to contact Hennepin County to request a reduction in the 1994 value to $117,000. Fred D. Salman, 9818 10th Avenue North, (36-118-22-11-0013). Mr. Salman stated he has owned this property since 1957. The entire area, with the exception of five homes, has been changed to an industrial park. He stated that his estimated market value continues to increase each year; however, he believes the parcel has no resale value because no one would want to purchase a residential home in the middle of an industrial park. He would also like the aging of his property considered. Daniel E. and M. Kathleen Walsh, 4600 Glacier Lane, (09-118-22-44-0053). Mr. Walsh said that the estimated market value of this property increased by 7.5 percent from the prior year. They purchased the home in August, 1994, for $172,000, and the 1995 estimated market value is under that purchase price - $166,200. Mr. Walsh requested that the 1995 value be reduced to $159,960, or 93 percent of the purchase price of the home. He believes that the City strives to establish estimated market value at 93 to 95 percent of true market value. He does not believe that comparables are an effective way to establish value when a home was recently purchased and the actual sales price can be used. John G. Ehlen, 3255 Rosewood Lane, (22-118-22-14-0041). Mr. Ehlen stated that his estimated market value has increased by $39,500 from 1992 to 1995, which he believed was excessive. His 1995 value is $427,300, and there are not many comparables for establishing estimated market value. However, based on the average increases in market value described by the City Assessor at the beginning of the meeting, he finds it difficult to contest his 1995 estimated market value. Mr. Ehlen stated that in 1990, the City allowed him to consolidate two lots. A tennis court is proposed on the second lot. He is currently paying water and sewer special assessments for both lots and would like that issue addressed. Board of Review April 10, 1995 Page 3 Sverre C. Pederson, 1320 Urbandale Lane, (30-118-22-34-0025). Mr. Pederson stated he has lived in four different homes in Plymouth over the past 22 years. The estimated market value of 1320 Urbandale Lane has increased by $60,000 over the last few years. He would like the assessing staff to explain how the 1995 estimated market value of 218,000 was achieved. He noted that there are no comparable homes in the Hadley Hills subdivision. Allen and Mary Jo Asmus, 2545 Troy Lane, (30-118-22-21-0019). Ms. Asmus stated they have lived at 2545 Troy Lane for nine years. The estimated market value was increased from $141,000 in 1993 to $147,000 in 1994, with an increase in 1995 to 160,900. She stated that a real estate agent recently estimated the average sold price in this area of $155,000, and a larger home with a similar lot near her home recently sold for 147,000. Ms. Asmus stated that a comparable property provided by City staff was valued at $156,000, but that home was larger. She believes that her value is a little high and asked that it be checked. Roger Bjorlin, 12110 54th Avenue North, (11-118-22-21-0046). Mr. Bjorlin stated that over the last two years, his estimated market value has increased by $9,200. His home is 35 years old and is the oldest home on Bass Lake. He wants to remain in his home, but stated he may have to move due to increased taxes resulting from increased market value. Mr. Bjorlin shared information on major improvements needed on the home, and he asked that these needed improvements and the age of the home be considered by a reduction in estimated market value. David L. Bardal, 18540 6th Avenue North, (31-118-22-31-0039). Mr. Bardal said he purchased this parcel for $225,000 and the home needed a significant amount of repairs. Only a small number of repairs have been completed, but his estimated market value has increased. He said there also seems to be a significant discrepancy in the amount of taxes paid. His neighbor's home is of comparable size and construction, yet Mr. Bardal's tax bill exceeds his neighbor's bill by $1,000. He also referenced a nearby home, 850 Brockton Lane) that recently sold which is assessed at a lower value than his home. He believes that there is no consistency between the estimated market values and the actual sale price. Thomas A. Hagen, 2405 Black Oaks Lane, (29-118-22-12-0016). Mr. Hagen said that his value has increased over 21 percent in the last three years, and 17 percent in a two year period. He intends to hire a Realtor to do a comparable value study, and he will share those results with the assessing staff for consideration. He also does not understand how the estimated market values are established and would like further information on how the values are formulated. Mr. Hagen stated that his home is currently valued at $238,500. A neighbor's property sold 18 months ago for $237,000. The neighbor's property has additional amenities: a 3 stall garage vs. his 2 stall garage, a finished basement, walkout, pool, 2 fireplaces versus his 1; and a fenced rear yard. Board of Review April 10, 1995 Page 4 Timothy J. B. Hanson, 2705 Vagabond Lane, (19-118-22-34-0030). Mr. Hanson said that his estimated market value has increased by about 9 percent each of the past two years. The driveway is heaving and breaking, and other repairs are needed to the property, but he is afraid to do repairs because his value may further increase. Mr. Hanson said that the target assessed value is 93 percent, but his value is at 98 percent of assessed market value based on a study done by a local Realtor. He requested a reduction in his estimated market value from $147,500 to $139,500. Stephen and Cathy Kaufman, 4490 Forestview Lane North, (11-118-22-43-0026). Ms. Kaufinan said they purchased this parcel 23 months ago for $127,000. Since that time, the estimated market value has increased by $12,000. She stated that some improvements have been done such as vinyl siding ($9,400) and ceramic tile ($500), but their original purchase price was decreased by $10,000 for defective siding. She also questioned whether her home is comparable to other homes in the area which have finished basements and have been better maintained than this home which was rented for a period of time. Ms. Kaufman requested that the estimated market value be reduced to 137,800. John R. Tonsager, 620 Niagara Lane, (33-118-22-13-0028). Mr. Tonsager said he purchased this property in April, 1994, based on the low monthly payments and taxes. He has a tight financial situation and is unable to pay increasing taxes or make needed improvements to the home. He purchased the home with the knowledge that the basement was dry; however, he later learned that the basement needs $2,000 to $3,000 in repairs. The home needs other repairs as well. He requested that the estimated market value be reduced, and stated that a Realtor has verified that he could not sell the home for the amount of the current estimated market value. Duane Stobbe, 11215 to 11.210 12th Avenue North, (35-118-22-11-0037, 35-118-22- 11-0031). Mr. Stobbe showed pictures of these two rental properties. He purchased the properties on February 1, 1994, for $425,000 with the understanding that a lot of work was needed on the properties. The estimated market value for 1995 is $521,000. He listed repairs that are needed on the properties: roofs leaking, brick leaking, waterpipes leaking, windows leaking and fogged over, sheetrock rotten and moldy, carpet moldy, ground around buildings settling due to swamp, garages settling, rodent problems, rusty doors, and code violations. He said the building is 11 years old, and the City inspectors have visited the home four times in the past year for code violations. Alina Vrabel, 3045 Urbandale Lane North, (19-118-22-31-0006). Mr. Vrabel said she purchased her home in 1991 for $114,000. The property was listed for $129,900 but remained on the market for two years without selling. The home had a number of problems which are listed on the residential inspection report. In the last three years, she lost her job and has no money to pay for repairs. The 1994 estimated market value is 133,000, and the 1995 value is $145,300. She presented nine comparable properties Board of Review April 10, 1995 Page 5 with an average sale price of $113,094. Ms. Vrabel said that a good representation of different income levels is desirable in a city, and the large increases in land values in Plymouth is squeezing out the middle and lower income people living in the City. William J. Schneerman, 310 Lanewood Lane, (33-118-22-42-0020). Mr. Schneerman said his valuation has increased $15,000 in the past two years. He has lived in Plymouth for 53 years and built his home 28 years ago. The value of his property has increased over that time, but the last two years the value has taken a significant jump in value. He said that some years ago he added a deck to the home, but no other improvements have been made. Also, the freeway noise is a detriment to the value of the home. Camille Jahnke, 15788 27th Avenue North, (21-118-22-33-0195). Ms. Jahnke said she lives in Shenandoah Townhomes and would like her value reduced. Her value has increased $3,000 each of the last two years. She said that other owners in the Townhomes are not pleased with these increases. She noted that the adjacent home is going on the market next month at $70,000. That home was valued $6,000 higher than hers when it was built. Deputy Mayor Edson reported that written objections were received at this meeting from the following: Marcelo and Erika Andrada, 16130 22nd Place North, (29-118-22-14-0072) Krista Labie/Lue De Bleeckere, 3950 Niagara Lane, (16-118-22-42-0009) Don Schlais, 2940 Urbandale Lane, (19-118-22-31-0028) Grigoriy Moroshek, 5070 Arrowood Lane, (11-118-22-14-0115) John L. and Susan S. Sullivan, 4015 Minnesota Lane, (16-118-22-42-0013) Keith and Charlotte Dickerson, 2640 Urbandale Lane, (19-118-22-34-0006) David and Jayne Douglas, 2510 Yuma Lane North, (29-118-22-11-0020) Thomas P. and Jean E. Hillstrom, 1635 Ranier Circle, (30-118-22-42-0024) Russell V. Iverson, 12000 49th Place North, (11-118-22-24-0083) Ronald E. and Judy L. Olson, 121 Balsam Lane, (35-118-22-44-0020) Greg Hiniker, Jerrine Moerke, 18305 Highway 55, (18-118-22-21-0029) Mike Nixon, 2810 Urbandale Lane, (19-118-22-34-0001) Earl and Mary Hanke, 11710 28th Avenue North, (23-118-22-42-0007) Di Weng, Xiaoning Li, 11290 50th Place North, (11-118-22-14-0097) Rangesh K. and Avanika Shah, 15300 47th Avenue North, (09-118-22-31-0069) Mary E. Hayes, 300 Zircon Lane North, (31-118-22-32-0027) David Hagen, 10715 39th Avenue North, (13-118-22-32-0073) City Assessor Bye reported that additional written objections were received prior to this meeting. Deputy Mayor Edson directed that the following objections be recorded: Robert Putnam, 10813 48th Avenue, (12-118-22-32-0023) Scott and Beth McGinnis, 4330 Hemlock Lane, (14-118-22-12-0016) Board of Review April 10, 1995 Page 6 Louis J. Labeck, 10725 39th Avenue North, (13-118-22-32-0072) Clarence Hoekstra, 10540 43rd Avenue North, (13-118-22-21-0193) Gary L. Hadley, 16220 25th Avenue North, (29-118-22-12-0042) Kevin Aplin, 950 Minnesota Lane, (33-118-22-13-0005) Leonard Goldman, 1141 Xene Lane North, (32-118-22-11-0029) Martin Gardner, 320 Brockton Lane, (31-118-22-32-0025) Kevin W. Horn, 18615 29th Avenue North, (19-118-22-34-0024) Robert D. Auld, 12655 31st Avenue North, (23-118-22-23-0006) Jim and Leslie Driscoll, 16015 24th Avenue North, (29-118-22-11-0031) Kevin O'Connor, 18206 24th Avenue North, (30-118-22-12-0004) Betty Dugan, 2415 Urbandale Lane North, (30-118-22-21-0027) Jacqueline Ulwelling, 17620 25th Avenue North, (30-118-22-11-0026) Ziv Liberman, 4645 Vinewood Lane North, (10-118-22-43-0047) Lee Larson, 335 Zinnia Lane North, (34-118-22-31-0021). Councilmember Anderson suggested that since Deputy Mayor Edson. presided over this meeting and is familiar with the objections received, he should also serve as Chairperson for the reconvened Board of Review meeting. MOTION was made by Councilmember Anderson, seconded by Councilmember Wold, to appoint Deputy Mayor Edson as the Chairperson for the reconvened Board of Review meeting. Motion carried: Anderson, Wold, and Edson ayes; Helliwell nay. MOTION was made by Councilmember Wold, seconded by Councilmember Anderson, to adopt RESOLUTION 95-250 ESTABLISHING THE 1995 BOARD OF REVIEW RECONVENE MEETING ON MAY 1 AT 7:00 P.M. Motion carried, four ayes. Deputy Mayor Edson said staff will contact each individual who appeared in person or submitted a letter for a site visit prior to the reconvened meeting on May 1. The meeting was adjourned at 8:08 p.m. Laurie F. Ahrens City Clerk