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 $
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to adjourn the meeting at 9:25 p.m. rl
Motion carried, seven ayes.
Ci y Clerk