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HomeMy WebLinkAboutCity Council Minutes 04-11-1994 BOEMINUTES CITY OF PLYMOUTH BOARD OF REVIEW APRIL 11, 1994 The 1994 Board of Review for the Plymouth City was called to order by Mayor Tierney at 7:00 p.m. in the Council Chambers, 3400 Plymouth Boulevard, on April 11, 1994, PRESENT: Mayor Tierney, Councilmembers Anderson, Morrison, Lymangood, Helliwell, Granath, and Edson. ABSENT: None STAFF PRESENT: City Manager Johnson, Assistant Manager Lueckert, Finance Director Hahn, Public Works Director Moore, Assessor Bye, Senior Appraiser Olsson; Appraisers Carroll, McCormick, and Kingsbury; Assessing support staff Kazimer, Kirkham, and Weitgenant; and City Clerk Rauenhorst Mayor Tierney welcomed residents to the 1994 Board of Review. City Assessor Bye introduced the Assessing staff. She stated there were a record number of building permits issued in Plymouth in 1993 - 711 of which were for new residential units. She stated the average sale price increased by 7% from sales that occurred during 1993 compared to sales in 1992, according to the Minneapolis Area Association of Realtors. Average increases in residential properties were between 3% and 6%, with lakeshore properties increasing between 5% and 19%. She stated that exceptions to this are new construction, quartile areas, and reappraisals. She explained that apartments and commercial and industrial values declined slightly, and the 1993 residential sales ratio study shows Plymouth at a median ratio of 93.2%. This compares to the Hennepin County average of 93.5%. Assessor Bye described new state laws that impacted values in the last year. She stated that the function of this meeting is to hear the concerns of residents. Staff will then meet with residents and prepare a report for consideration by the Board of Review at a reconvened meeting. Residents who appear tonight or who have submitted written appeals to their assessed value may continue their appeal to the County Board of Equalization. Anne E. Monteith, 2125 Garland Lane, (29-118-22-24-0027), requested a reduction in her assessed valuation. She stated that since 1992 her assessed value has increased by 15,700, and this is not reflected in other sales. She described several homes in her neighborhood that she believes are comparable to her home, all of which are valued at a lesser amount. She stated her home was appraised for the refinancing purposes last summer in the amount of $196,000. She believes her home should not be compared to Board of Review April 11, 1994 Page 2 other homes with more amenities. She asked that the City consider that the heavily traveled bike trail behind her home lessens her property value, as well as her sloping back yard which makes her rear yard virtually unusable. Jim Touve, 9815 Olson Highway, (36-118-22-41-0006) (36-118-22-41-0007), stated he owns two vacant parcels of commercial land at the southwest quadrant of Olson Highway and Highway 169. He purchased the property in the early 1960's and has been interested in developing the property for some time. He stated that he had received an offer from Welsh Companies to purchase his property; however, they informed him that they did not wish to build next to Brown's Market. He stated that the City's assessed value on his two parcels continues to increase, and he cannot develop this land without help from the City. He stated that to further complicate the issue, he discovered last year that about 2/3 of his property is wetland, and he has held subsequent discussions with representatives from the Bassett Creek Watershed District and the Army Corps of Engineers. He stated that the City has suggested that he obtain an independent appraisal of his parcels, and he has discussed this with three appraisers. They indicated the cost for an appraisal on these parcels would be between $3,000 and $5,000, which he feels is unreasonable. He requested that the City Council implement a method to encourage development on some of the vacant parcels in the City to enlarge the tax base. He stated it is a hardship on him to pay taxes on vacant property that will have no value to him until it is developed. In response to questions from Councilmember Helliwell, Mr. Touve stated that the two parcels contain about three acres, 2/3 of which is wetlands. Michael Barry, 4525 Vinewood Lane, (10-118-22-43-0028), stated that he had built a home in the Curtis Lake Development, and requested a reduction in his assessed value. He distributed information to the Council which he believes demonstrates that his market value is substantially more than other homes in the Curtis Lake Development. He also compared his property with neighborhoods in the Swan Lake Development. He said the Swan Lake Development has a higher quality of construction, shake shingles, and lake access. His property only has wetlands - not lakeshore, and is exposed to I-494. He requested that the City Council reduce his market value to compare with other homes in the neighborhood. Willie J. Lauder, 10650 47th Avenue North, (12-118-22-34-0015), stated he lives in the Deerwood Glen area and requested a reduction in his assessed value. He stated that in his cul-de-sac, four of the homes have been put on the market for sale and then removed because the owners couldn't get the price they wanted. He stated that two homes sold for substantially less than the asking price. One of the homes sold for $15,000 less than the owner originally paid. His property was reappraised for refinancing purposes at $212, 000. This compares to the appraised value established by the City of $216,100. He requested that the City consider at least a reduction to $212,000. Board of Review April 11, 1994 Page 3 Karl Pokorny, 1890 North Troy Lane, (30-118-22-31-0009), requested a reduction in his assessed value. He stated he is aware that his neighbor's home at 1525 North Troy Lane sold for $32,700 less than Mr. Pokorny's assessed value. He believes these are comparable homes. He also compared his property to several other homes. He stated that his property has no city sewer and water, and this is significant and should be considered in the value. He originally paid $325, 000 for two parcels, and he wants to ensure that the staff has appropriately calculated that purchase price over two parcels - not one. R. P. Ebersberger, 65 Holly Lane, (32-118-22-34-0003), requested a reduction in his assessed value. He stated that in two years his assessed value has increased by $25,000. He lives in Kingswood Addition and some of the lots abut Gleason Lake. When he purchased his property, lots on the lake sold for approximately $10,000 more than his and similar units which are located adjacent to the creek. He believes that the value of his property should be further reduced because a darn was recently installed on the creek. He compared his property to 100 Holly Lane assessed at $174,700, and 120 Holly Lane assessed at $189,900 which have more recent improvements. He stated that his value is currently $190,300. On October 5, 1993, he received an appraisal for refinancing purposes in the amount of $175,000. His value two years ago was $165,900. It was increased last year to $177,000, and now to $191,300. Bob Fernelius, 5220 Larch Lane North, (11-118-22-21-0057), stated he built his home in 1989. He stated his value increased last year by $5,000 and he protested this increased valuation. Michael Swanson, 6000 Kirkwood Lane North, (02-118-22-24-0011), stated he purchased his home in March, 1992, for $115,000. However, the City Assessor indicated that this was not an accurate price because the home was purchased through a foreclosure sale. He stated that the value was ultimately reduced to $115,200 through a tax court action. Last year the value was increased to $119,000. He stated that last year he provided the Council with information on the eight properties used by City staff as comparables to his. He stated that his home was assessed at 100% of market value, whereas other comparable homes were appraised at less than their sale price. He stated that it is a disservice for residents to go to tax court in order to object to their values and he requested that his value be reduced. He stated that last year he put a new roof on the home, but he does not believe that this should affect the value. He requested a reduction to $115,000. Yelena Moroshek, 5070 Arrowwood Lane, (11-118-22-14-0115), requested a reduction in his assessed value. He has experienced many problems with his home which has not been improved since 1985. His home is very cold and he has large heating bills. His lot is also very small, and he sees no reason that his value should be increased. Board of Review April 11, 1994 Page 4 Melvin Boettcher, 11616 Ridgemount Avenue, (35-118-22-43-0016), requested a reduction in his assessed value. He stated that his value has increased 5.1% over last year, which follows a 7.63% increase from the previous year. He objected to a two-year increase of approximately 13.1%. He said that this was a very stable neighborhood and homes generally sell between the low $80,000's to $90,000. He believes that the current appraised value is somewhat over what he could receive on the open market if he sold his home. He stated concerns that people on fixed incomes are unable to pay the increased taxes resulting from the increased valuations. He stated these large increases in value are unreasonable for an older neighborhood. Kevin Leuer, 4335 Westin Lane, (17-118-22-11-0010), requested a reduction in his assessed value. He purchased his home in July, 1992, for $206,100. The following year his property was assessed at $216,200, and this year was increased to $224, 900. He believes this large increase was excessive in only a 17 -month period. His home abuts a neighborhood of $300,000 homes, and he believes that may unfairly inflate the value of his home. N. Nelson Fei, 4635 Juneau Lane, (09-118-22-43-0068), requested a reduction in his assessed value. He bought his home in 1988 for $149,000. His assessed value at that time of $150,000 was increased in subsequent years to $156,000 (a 3.8% increase), and to 169,000 (an 8.4% increase). He stated the only improvement was a $1,400 deck, and his salary has not kept pace with the assessed value increases. Philippe Lo, 14870 40th Place North, (09-118-22-43-0083), requested a reduction in his assessed value. His value increased this year by 8.51%. This follows a previous year increase of 3.6%. He referenced a Star Tribune article indicating that the City of Plymouth's average increase in value was 3.1%. His increase in value is much greater than this and he does not believe his home is different that other average homes in the city. He stated that only one home was sold in his neighborhood in the last year and he doesn't know if that home was used as a comparable for establishing his value. He stated that homes in his cul-de-sac have similar price ranges but have significantly more improvements than his home. He stated that he wrote the appraisal system used for commercial -industrial property. He requested that the City reappraise his property, and consider revision of the entire appraisal system. Audrey Logsdon, 1605 Dunkirk Lane, (29-118-22-31-0015), requested a reduction in her assessed value. She has lived in her home for 42 years. Her value was increased in 1992 by $2,000, in 1993 by $2,000, and this year by $3,000. She stated her home is a small two-bedroom with a crawl space under it. She is not aware of other homes being sold in the area. Her concern relates to continuing increases on a very small home. Board of Review April 11, 1994 Page 5 Tom Albers, 2730 Holly Lane, (20-118-22-33-0070), requested a reduction of his assessed value. He has submitted a bid for the home for $196,500. He stated the house needs extensive work and he requested that the City take this into consideration when establishing the assessed value. Amy Jokinin, 2810 Zanzibar Lane, (20-118-22-44-0016), stated her value increased by 8% this year, and by $20,000 over the past two years. She submitted information for consideration by the Council. She asked why neighborhoods are valued so differently, if the appraisal system is working, and stated that residents do not understand how the appraisal system works. Nick Stathas, 435 Black Oaks Lane, (32-118-22-42-0031), stated his has lived in his home for 12 years and this is the third time he has objected to his assessed valuation. He stated that he refinanced two years ago and had an appraisal done on his property at that time, of which the City was provided a copy. He believes the valuation system is flawed and inadequate. He stated that the City and Hennepin County agreed to reduce his assessed value two years ago, but now the value is the same as it was at that time. He stated understands the assessing process is statistical in nature, but believes it could be done better. Gary W. Olhmstead, 4045 Terraceview Lane, (16-118-22-23-0082), requested a reduction in his assessed value. He purchased his home in June 1991, for $152,000. This year his home is assessed at $177,500. He refinanced in 1993 and that appraisal resulted in a $163,000 value. He believes the appropriate value for his home is about $165,000. Gene Scherer, 4725 North Minnesota Lane, (09-118-22-42-0027), stated he moved to Plymouth in February 1992 from Omaha, Nebraska. He protested the increase in his assessed value this year. He stated his 1992 property value of $129,700 was increased by 3.3% to $134,500 in 1993, and increased by 8.1% to $145,400 in 1994. He stated the Star Tribune article showed the average 1993 increased value in Plymouth of 5.6%. He stated that his home is very nice looking on the outside, but is very small at only 1,800 square feet. He stated that he has the smallest home and lot in the neighborhood. This value equates to $81 per square foot. He had spoken to builders in who informed him that they could build a home similar to his for $70 to $75 per square foot. He requested that the Council review his assessed value and invited a City assessor to visit his home for a review. Don Waligoski, 240 Inland Lane, (32-118-22-33-0059), stated his assessed valuation has increased by 6.4%, 7.1%, and now 14.6%, in subsequent years. He stated there are six different models of homes in Kingswood Addition, and he would like his value considered for reduction. Board of Review April 11, 1994 Page 6 Donald Anderson, 5220 Arrowwood Lane, (11-118-22-11-0018), stated he purchased his home in May, 1992, for $110,000. At that time the City had appraised the property at 128,000. Since that time, he has upgraded the lawn, installed shrubs and a fence. He stated that his protest to his assessed value in 1992 resulted in a reduction by Hennepin County Board of Equalization to $118,000. He stated the assessed value is now 125,000. He stated that it takes time to go through Hennepin County for relief, and requested that the City reduce his value. Joyce Rokell, 1515 Black Oaks Lane, (29-118-22-43-0034), stated she purchased her townhome in July, 1990, for $112,000. Her value has increased since that time from 106,900, to $117,000, and currently to $126,300. She provided copies of her refinancing appraisal which she states shows the value is substantially lower than the current assessed value by the City. Jack E. Akins, 3205 Wellington Lane North, (24-118-22-23-0042), requested a reduction in his assessed value. He purchased his home two years ago for $110,500. This year his property is valued at $140,600. He noted that his home was listed for over six months for $120,000. He stated that the value should be reduced because of the large 6' drainage tile in the rear yard, making nearly half of the property unusable. He stated the home also has a small kitchen, three small bedroom, and a tuck -under garage. Jim Larson, 3510 Kilmer Lane, (24-118-22-11-0034), requested a reduction in his assessed value. He purchased his car wash business in 1990 for $210,000. He stated that the total value of buildings on the property, if constructed new, is approximately $90,000. There has been a lot of new business and development in the city that competes with his business and this, along with water equipment difficulties, has severely impacted his revenues. He stated that taxes are now about 20% of his gross income. He stated that oil spills from the Sinclair and Endurance properties have damaged his land. He believes that the land is virtually worthless, and he believes his property taxes should be about half of what they are. Reino Wuollet, 500 North Magnolia Lane, (35-118-22-32-0005), stated he is a 27 -year resident of the city. In 1989 he did replacement improvements to his property and received some increase in valuation. He stated that this year his property value was increased 10% with no additional improvements. He objected to his increased value of 131,000, which was increased from $119,700 the previous year. George Lambertz, 4005 Revere Lane, (13-118-22-24-0022), stated that he does not object to the value on his property. However, he would like his value reduced so that he receives the same parity between the assessed value and the market value that he believes many other properties receive, in the area of 15-20%. Assessor Bye stated that the average difference in Plymouth is 93.2%. Board of Review April 11, 1994 Page 7 In response to questions, she explained that the City appraisers use sales data from the period October 1, 1992, through September, 1993, as required by state law. Whereas, real estate appraisers use sales data within the past six months. She stated that the only time tax courts will address a parity issue is if the entire city is under 90%. Bruce Bodin, 630 Lanewood Lane, (33-118-22-13-0014), requested a reduction in his assessed value. His property was vacant when he purchased it after about six months on the market. He has had a severe problem with water in his basement and has subsequently replaced the east wall which was caving in. This rebuilding added about 120 square feet to the structure. He stated in the last two years his value has increased by $18,000 which he believes is unfair. Ann Marie McCourtney, 14435 43rd Avenue North, (16-118-22-11-0097), stated that she refinanced her home in the summer of 1993. The three comparables used averaged in the area of $230,000 to $235,000. She stated her current market value is $274,000, and she requested a reduction. Charlotte Dickerson, 2640 Urbandale Lane, (19-118-22-34-0006), stated that her value was increased by $13,000 this year and she has not improved the property. She requested that this amount be checked. Dan Dorwart, 2715 Urbandale Lane, (19-118-22-34-0014), requested a reduction in his assessed value. He purchased his property in 1988. He stated that his value has been increased by $15,000, or 9%, to $186,000 in the past year. He provided three sales that he believes are comparable which sold for $171,000, $170,000, and $145,000. Dale Jacobson, 12200 60th Avenue North, (02-118-22-24-0022), stated that Hennepin County reduced his value considerably two years ago. This year his value is increased by 6,400. Bass Lake Road abuts the rear of his property, and this devalues his property. He requested a reduction from the current value of $132,700. He stated that he will be again going to Hennepin County for relief if the City does not reduce his value. John B. Norton, 1745 Black Oaks Lane, (29-118-22-42-0089), stated he purchased his home in July 1991. Since that time his value has increased by $25,600, and no appraiser has visited his home during that time. He requested a reduction in his value. Discussion was held on the source of the average ratio between assessed value and market value for Plymouth of 93.2%. Assessor Bye stated that ratio studies are conducted by the City, Hennepin County, and the State, and a substantial number of sales are used in determining this ratio. She noted that Hennepin County used 720 sales to determine Plymouth's ratio for this year. The sales used are for the period October, 1992 through September, 1993. Board of Review April 11, 1994 Page 8 Council member Lymangood requested that staff provide the total number of sales, as well as a graph indicating the breakdown of those sales. After further discussion, George Lambertz, 4005 Revere Lane, stated that he believes his property value is fair, his only issue is with parity. He stated that he wishes to officially withdraw his protest to his assessed value. Assessor Bye reported that additional written objections were received. Mayor Tierney directed that the following objections be recorded: Steven and Andrea Heifetz, 4280 Quinwood Lane, (15-118-22-11-0040) Thomas W. Richards, 15 Queensland Lane North, (31-118-22-43-0012) David E. Eddy, 1061 Westin Lane, (32-118-22-11-0112) Stan and Connie Tikkanen, 11025 37th Avenue North, (13-118-22-33-0081) Michelle Vejar, 3215 Fountain Lane North, (20-118-22-24-0023) Lee and Linda Larson, 335 Zinnia Lane North, (24-118-22-31-0022) Weslee Clemens, 5615 Evergreen Lane, (02-118-22-42-0009) Eugene J. Stroebel, 16925 25th Avenue North, (29-118-22-21-0047) Bradley Buchanan, 15915 25th Avenue North, (29-118-22-11-0029) Arnolds Leonard, 5212 Colonial Drive, (36-118-22-22-0010) David Tobelmann, 415 Sycamore Lane, (34-118-22-41-0024) Gene and Joan Welch, 11410 47th Avenue North, (11-118-22-41-0016) Raymond E. Jorgensen, 16010 Fifth Avenue North, (32-118-22-41-0007) Leslie Barry, 15615 16th Avenue North, (28-118-22-32-0186) Heidi J. Good, 1745 Archer Court, (29-118-22-42-0065) Josephime Cizio, 14870 45th Avenue North, (09-118-22-43-0017) Ron J. Weber, 505 Lanewood Lane, (33-118-22-42-0016) City Assessor Bye stated staff will contact each individual who appeared in person or submitted a letter for a site visit. Mayor Tierney announced that the Board of Review will reconvene at 7:30 p.m. on April 25. The meeting was adjourned at 9:07 p.m. City Clerk