Loading...
HomeMy WebLinkAboutCity Council Minutes 04-25-1994 BOEMINUTES BOARD OF REVIEW - RECONVENED MEETING APRIL 25, 1994 The 1994 Board of Review reconvened meeting was called to order by Mayor Tierney at 7:30 p.m. in the Council Chambers of the City Center, 3400 Plymouth Boulevard, on April 25, 1994. PRESENT: Mayor Tierney, Councilmembers Anderson, Morrison, Lymangood, Helliwell, Granath, and Edson. ABSENT: None. STAFF PRESENT: City Manager Johnson, Finance Director Hahn, City Assessor Bye, Senior Appraiser Olsson; Appraisers McCormick, Carroll, and Kingsbury; and City Clerk Rauenhorst. 1994 BOARD OF REVIEW MOTION was made by Mayor Tierney, seconded by Councilmember Edson, to take the following actions with respect to 1994 market values: Name PIN # 1994 MARKET VALUE COUNCIL, ACTION Monteith 29-24-0027 213,100 No Change Bar 10-430028 346,800 Reduce to $342,000 Lauder 12-34-0015 216,100 No Change Pokorny 30-31-0009 307,700 No Change Ebersberger 32-34-0003 191,300 No Change Fernelius 11-21-0057 115,600 Reduce to $114,500 Moroshek 11-14-0115 107,100 No Change Boettcher 35-43-0016 105,200 No Change Leuer 17-11-0010 224,900 No Change Logsdon 29-31-0015 66,700 Reduce to $64,500 Jokinen 20-44-0016 138,400 No Change Olmsted 16-23-0082 177,500 No Change Waligoski 32-33-0059 144,500 No Change Anderson 11-11-0018 125,100 No Change Retell 29-43-0043 126,300 Reduce to $123,000 Akins 24-23-0042 140,600 Reduce to $131,800 Wuollet 35-32-0005 131,900 No Change Bodin 33-13-0014 99,700:Reduce to $91,200 McCourtney 16-11-0097 274,500 1 No Change Board of Review April 25, 1994 Page 2 Dickerson 19-34-0006 145,900 Reduce to $140,700 Jacobson 02-24-0022 132,700 No Change Norton 29-42-0089 114,600 No Change Dorwart 19-34-0014 187,300 Reduce to $180,500 Heifetz 15-11-0040 407,200 No Change Richards 31-43-0012 153,000 No Change Edd 32-11-0112 80,100 No Change Tikkanen 13-33-0081 173,900 No Change Ve'ar 20-24-0023 141,700 Reduce to $13 5,3 00 Larson 34-31-0022 80,400 No Change Clemens 02-42-0009 250,300 No Change Stroebel 29-21-0047 158,900 Reduce to $153,100 Buchanan 29-11-0029 319,100 Reduce to $296,800 Weber 33-42-0016 87,600 Reduce to $75,200 Tobelmann 34-41-0024 188,900 Reduce to $178,300 Leonard 36-22-0010 127,000 Reduce to $115,800 Bar 28-32-0186 200,100 No Change Welch 11-41-0016 139,800 No Change Jorgensen 32-41-0007 120,100 No Change Good 29-42-0065 100,000 No Change Cizio 09-43-0017 191,600 No Change Motion carried, seven ayes. Michael Swanson, 6000 Kirkwood Lane North, (02-24-00111 Mr. Swanson asked how his property value was derived. He believes that the sales prices for comparable properties have nothing to do with his valuation, and asked for the appraised value of each parcel used by staff as a comparable. His property sold two years before he purchased it for $117,000. When he purchased it for 115,000, the inground pool was removed. The appraised value at that time was 115,200. He stated that reroofing should not be considered an improvement for valuation purposes. Mr. Swanson stated that each of the comparables has a two - car garage, while his home has a tuck -under garage which should reduce his value. In 1993, comparables used for his valuation were appraised at 84 percent of sales price, while his is appraised at over 100 percent. Assessor Bye stated that when Mr. Swanson purchased his property for $115,000 in 1992 it was in below average condition. The value was adjusted to reflect his purchase price. His value has taken an average increase the last two years, similar to other parcels in the City. Board of Review April 25, 1994 Page 3 Mr. Swanson stated that in 1992 he went to tax court in order to have his value adjusted to $115,000. In 1993 the value was adjusted to $115,200, and now is 119,000. Councilmember Lymangood explained the City's attempt is to determine market value as of January 2, 1994; therefore, the value could change each year. In response to a question by Councilmember Morrison, Assessor Bye stated the current value of $124,700 is the result of a 4 percent average City-wide increase and comparable sales. Assessor Bye stated the comparable sales indicate that the correct value is $124,700. The staff attempts to establish what Mr. Swanson could sell his home for today - not what he purchased it for several years ago. Mr. Swanson stated the comparables were done after the first Board of Review meeting and were not initially used to justify the $124,700 value. Councilmember Edson explained that staff doesn't appraise every home each year. The average sales values are applied to property values to determine revised market values. Councilmember Anderson asked for what amount Mr. Swanson would sell his home today. Mr. Swanson stated he did not know. MOTION was made by Councilmember Lymangood, seconded by Councilmember Anderson, to adjust the market value to $118,100. Councilmember Lymangood stated this amount is derived by starting with the purchase price of $115,000, adding 4 percent each year for two years, and adjusting the amount to 95 percent. Councilmember Edson stated he has a concern with the theory behind the proposed amended value. He believes it would set a bad precedent, and would set the value below the 1993 value. The City is supposed to set 100 percent of market value. If the Council sets values with 5 percent reductions, a precedent will be set and all residents will request the same thing. He does not object to considering a change in the average increase of 4 percent on this property, but he does not support discounting the value by 5 percent. The Council reviewed and discussed the values of various comparable properties. Councilmember Lymangood stated he believes there should be a reduction in value for less lower level living area than comparable properties. Board of Review April 25, 1994 Page 4 Motion failed: Lymangood aye; six nays. MOTION was made by Mayor Tierney to set the value at $122,700. Motion died for lack of a second. MOTION was made by Mayor Tierney, seconded by Councilmember Granath, that the value of the parcel remain unchanged at $124,700. Motion carried: six ayes; Lymangood nay. N. Nelson Fei, 4635 Juneau Lane North, (09-43-0068) Mr. Fei stated there is an error on the last page of the staff report. It should be Lot 3 rather than Lot 1. Assessor Bye stated there is an error in the report location map; however, that does not affect the value. Mr. Fei asked why a property valued at $215,000 was used as a comparable to his property valued at $169,000. Assessor Bye stated the comparable property had the same builder and is the same style. The comparable is a little larger, but was built within two years in the same neighborhood. Mr. Fei stated that Comparable #3 is located in a cul-de-sac and has a fireplace and Jacuzzi. He believes that property has a much higher value than his property. He asked why his property is not valued at 93 percent of the market value, and he stated that the comparables have different exterior appearances. Councilmember Morrison clarified that the City Council is to establish 100 percent of the property value. The 93 percent figure is only an average measurement of how well the City does in meeting the 100 percent market value. Councilmember Lymangood stated that based on the average increase of sales prices of the three comparables, Mr. Fei's current value of $169,100 appears to be fair. It seems that a reasonable appreciation has occurred consistent with other properties in the City. MOTION was made by Councilmember Lymangood, seconded by Councilmember Edson, that the value for this parcel remain unchanged at $169,100. Board of Review April 25, 1994 Page 5 Motion carried, seven ayes. Philippe Lo, 14870 46th Place North, (09-43-0083) Mr. Lo objected to the value of $175,900. He asked for an explanation of an article appearing in the Star -Tribune which indicated the average increase for properties in School District 284. His property has had a larger increase. Councilmember Lymangood stated the article discussed percentage increases of taxes rather than market value increases. In response to a question by Mr. Lo, Assessor Bye stated values increased from 4 to 8 percent in the City from 1993 to 1994. Mr. Lo doesn't believe his property taxes should increase by 12.2 percent in two years. He objected to the Council asking how much he would sell his home for, as he does not know. Councilmember Edson reviewed the comparables and stated that he believes Mr. Lo's value is reasonable. MOTION was made by Councilmember Edson, seconded by Councilmember Granath, that the value remain unchanged at $175,900. Motion carried, seven ayes. Tom Albers, 2730 Holly Lane North, (20-33-0070) Mrs. Albers stated they won't close on the purchase of 2730 Holly Lane until the end of May but have received an appraised value on the property for the mortgage. She requested the value be reduced to their actual purchase agreement price on the property. Assessor Bye stated the City is finding that mortgage appraisals are a little lower than market values. She stated the City's concern is that the Albers' did not have the written representation of the property owner when appealing the value at the initial board of review meeting. Mr. Albers stated that Hennepin County had suggested they appear before the City board. The County Board of Equalization will be held after the City's appeal period has closed. Councilmember Lymangood asked if the County has any objection to the City considering the appeal. Board of Review April 25, 1994 Page 6 Assessor Bye stated the only concern to hearing the appeal is that the closing has not occurred and there is not yet a bonafide sale. MOTION was made by Councilmember Anderson, seconded by Councilmember Granath, to reduce the value to $196,500 subject to the condition that the Albers' close on the home by May 26, 1994. Councilmember Granath said the Albers' have been diligent in pursuing this appeal and have been caught in a difficult situation. A value equal to the sales price is fair. Councilmember Helliwell stated concerns that the legal property owner is not present to appeal the value of the property. She said the Albers' would still have the opportunity to appeal their value to Hennepin County, at which time they will be the legal owners of the property. Councilmember Morrison agreed with these concerns and stated it is important that the legal owner concur with this appeal. Assessor Bye stated the value cannot be changed after this meeting is adjourned so there may be a problem with the condition of the motion that the reduction in value is contingent on the Albers' taking title to the property. Councilmember Granath stated the Albers' have a purchase agreement and are the potential owners of the property; therefore, they have equity. SUBSTITUTE MOTION was made by Councilmember Lymangood, seconded by Councilmember Anderson, that the value of this parcel be reduced to $196,500. Assessor Bye cautioned the Council that this could set a precedent for similar requests where an individual appeals another person's property value. She stated that by the date of the County Board of Equalization the Albers' will own the property. Vote on the substitute motion carried on a 4-3 vote: Anderson, Lymangood, Granath, and Edson ayes; Morrison, Helliwell, and Tierney nays. Nicholas Stathas, 435 Black Oaks Lane North, (32-42-0031) Mr. Stathas stated he met with Appraiser McCormick who viewed the property and explained the assessed value. He has no objection to the value established by staff. Board of Review April 25, 1994 Page 7 MOTION was made by Councilmember Edson, seconded by Mayor Tierney, that the value of $122,600 remain unchanged. Motion carried, seven ayes. Mr. Lo stated he believes the Council is setting a dangerous precedent of setting market value based on the purchase price, as in the Albers' appeal. Larry AuBuchon, 17930 Oueensland Court Mayor Tierney noted that Mr. AuBuchon had not appeared or submitted a letter at the initial Board of Review meeting. Mr. AuBuchon stated he would like to go forward to the County Board of Equalization, and he believes that his rights to do so may be preserved by appearing at this Board of Review reconvene meeting. He stated that last year his value was increased from $233,100 to $242,300; however, the County lowered that value on his appeal. He presented information on a comparable property one block from his home that sold in February of this year. He stated his value has increased by 4 percent from 1993 to 1994 which he believes is excessive. Mr. AuBuchon stated his property may have been originally over -valued. When he purchased his home in 1990 for $230,000, the assessed market value was 248,000. He added that a bad retaining wall, poor lot, and yard problems negatively affect his property value. No action was taken by the Council. James Touve, 9814 Olson Hi2hwav, (36-41-0006, 36-41-0007) Mr. Touve stated he supports the staff recommended reduction in value from 166,000 to $87,000. MOTION was made by Councilmember Lymargood, seconded by Councilmember Granath, to reduce the value of Mr. Touve's property (36-41-0006; 36-41-0007) to $87,000. Motion carried, seven ayes. Gene Scherer and Diane Stolz, 4725 Minnesota Lane (09-118-22-42-0027) MOTION was made by Councilmember Anderson, seconded by Councilmember Granath, to reduce the value of 4725 Minnesota Lane (09-118-22-42-0027) to 141,800, which is a 6 percent increase over the previous year. Board of Review April 25, 1994 Page 8 Councilmember Anderson stated that Mr. Scherer has one of the small houses in the neighborhood. tL Councilmember Helliwell asked if Mr. Scherer is supportive of this acti 4 Councilmember Anderson stated he has spoken with Mr. Scherer who - expressed concern about the value following the appraiser's visit to the Motion carried, seven ayes. Ae Jim Larson, 3510 Kilmer Lane North (24-11-0034) Assessor Bye stated Mr. Larson purchased 3510 Kilmer Lane North (2,zzC 11-0034) in 1990 for $210,000. He feels that his business has suffered :* Z --A,— new businesses and development in the City, and supplied staff with incQZ -$`2, expense information. Mr. Larson indicated that when he removed his dr —h the smelled an odor and believes there may be contamination on the property e a21d indicated that he would have tests done to determine whether there is ay contamination on the property. 9so, certain cleanup will have to be doh e e staff could further consider the value. She recommended a reduction in 180,300. ,i qi to Mayor Tierney stated that the County could readjust the value if the corig is proven by the Board of Equalization meeting in June. a i 1 ti nMOTIONwasmadebyMayorTierney, seconded by Councilmember x jhreducethevalueat3510KilmerLaneNorth (24-118-22-11-0034) to $1 g 0 3e I t04 oMotioncarried, seven ayes. Councilmember Helliwell stated the City should ensure that the tests are ocleanupisdoneifneededasabenefittoallresidentsofPlymouth. he EANW_ z-20 MOTION was made by Councilmember Edson, seconded by Councilmember Lyme $ o to adjourn the meeting at 9:25 p.m. rl Motion carried, seven ayes. Ci y Clerk