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HomeMy WebLinkAboutCity Council Minutes 05-10-1993 BOEMINUTES PLYMOUTH BOARD OF REVIEW MAY 10, 1993 The Plymouth City Council, sitting as the 1993 Board of Review, met on Monday, May 10, 1993, in the City Center Council Chambers, 3400 Plymouth Blvd. Mayor Bergman called the meeting to order at 7:00 p.m. PRESENT: Mayor Bergman, Councilmembers Edson, Helliwell, Tierney, and Vasiliou ABSENT: None STAFF PRESENT: City Manager Johnson, City Assessor Hovet, and City Clerk Rauenhorst Mayor Bergman stated the purpose of the meeting is to allow property owners to appeal their estimated market value. All public input will be received and referred to staff for review and response. The Board will consider the staffs report at a reconvened session scheduled for 7:00 p.m. on Monday, May 24. Assessor Hovel introduced members of the Assessing Division staff. Senior Appraiser Bye, Appraisers Carroll, Olsson, and McCormick; and Data Control Clerk Kazimer. He presented the staff report and stated that Plymouth is below the average level of assessment for the county. Plymouth had 758 sales in the last year, which is the second largest number of sales in the county excluding Minneapolis. The average sale price of a single family home was slightly under $160,000. Gary Hudson, 2165 Weston Lane, (29-118-22-14-0094), stated his assessed value has been increased from $185,500 in 1992 to $194,900 in 1993. He questioned this nearly 10,000 increase. Orlin Goemann, 325 Vinewood Lane North, (34-118-22-42-0016), stated he recently purchased his home. His cost to build the home was substantially less than the current assessed value. Michael G. Swanson, 6000 Kirkwood Lane North, (02-118-22-24-0011), stated he purchased his home on March 27, 1992, for $115,000, and the assessed value is currently 119,000. He contacted a City appraiser who indicated that since he purchased his home from a bank following a foreclosure action, the sale may not be a true arm's length transaction. Mr. Swanson stated this home was on the market for about 400 days, and the previous assessed value was $133,300; however, this was reduced to $115,200 through tax court for the 1992 value. Mr. Swanson reviewed the eight comparable properties provided by City staff. He stated one of the comparable properties was valued at Plymouth Board of Review May 10, 1993 Page 2 137,700 and sold for 101 percent of the assessed value. The seven remaining comparable properties sold for 70 to 80 percent of the assessed value. He requested that his assessed value be reduced to 84.3 percent of his sale price ($97,000), which is the mean percentage of the properties provided for comparison. Mr. Swanson also noted a Plymouth Sun Sailor news article entitled "City Home Prices Drop in March." Arthur W. Peabody, 1297 Black Oaks Court, (32-118-22-12-0107), stated he is not appealing his value. He stated concerns that the City Council adopts the City budget and affects taxes, and also sits as the Board of Review and establishes values. He stated that his taxes increased 9.7 percent over last year on his $110,500 valued home. Assessor Hovet explained that a portion of this increase is due to statutory changes in tax classification rates. The medium to lower valued homes now carry a larger portion of the property tax burden because of the reduction in the tax rate for higher valued homes. Mayor Bergman stated that in addition to the property tax shift from higher to lower valued homes, the reduced valuation of commercial and industrial properties in the City causes a shift to residential properties. Peter Riley, 18500 6th Avenue North, (31-118-22-31-0035), stated he purchased his home two years ago for $246,000, when its assessed value was $260,000. He requested and received from staff a reduction to $246,000 in 1992. His 1993 assessed value is 257,500. He stated a City appraiser provided him with information on two comparable properties. The first property, 625 Brockton Lane, is the same size but has more interior improvements. That property was on the market for 95 days and sold for $251,450. The second property, 650 Brockton Lane, sold for $255,000, but has a fully finished basement. This comparable property is also located on Hadley Lake. He stated his home has holes in the basement walls and the basement is unfinished. A recent inspection report indicated his property needs a new roof, and his landscaping is not as elaborate as the two properties provided for comparison. He believes his assessed value should be reduced to no more than $246,000. Gary Medin, 680 Windemere Curve, (35-118-22-23-0019), objected to his value increase of 8 percent over last year. He stated that based on a five year average, Plymouth homes sell for 97.34 percent of their asking price. He provided information on homes currently for sale, and eight homes that recently sold. He stated the average listing price of the eight homes was $113,000, and they sold for 97.16 percent of their asking price, or $109,875. He noted that this percentage is very close to the five-year average of 97.34 percent. He also provided staff with information on two additional properties for comparison purposes. Melvin A. Schmidt, 4315 Fernbrook Lane, (10-118-22-11-0002), stated his value increased $1,000 in 1992, and another $2,500 in 1993. His home is 44 years old, and he believes the value should be reduced. He believes that the improvements to Fernbrook Plymouth Board of Review May 10, 1993 Page 3 Lane resulting in a four -lane roadway have had a negative effect on his value. He stated about one-third of his lawn was lost and one of his driveways was removed due to the construction. Also, sanitary sewer is not available to his property. Debbie John, 12464 54th Avenue North, (02-118-22-33-0023), requested that a City appraiser review her property as she believes the assessed value is too high. She purchased the property in July 1987, for $203,500. At that time, the assessed value was 203,300. The assessed value is now $216,900. She has reviewed her neighbors' properties and stated that their assessed values have been about 10 percent less than the purchase prices of the properties. She stated that based on comparison with a nearby property, 12467 54th Avenue North, which is valued at $199,100, her property should be valued at $204,100. That home has about 100 sq. ft. less in finished area than her home, but it has a fully finished basement, which hers does not. Her property has a screened porch and view of the marsh. She objected to a value increase due to a lake view, which is 900 yards in the distance and can only be seen when leaves are gone from the trees. Louis Piccolino, 3805 Fountain Lane, (20-118-22-24-0024), stated he has lived at this property for 15 years. The assessed value of $125,000 in 1992 was increased by $14,000 for 1993. He requested that the City appraiser review his property and noted that no improvements have been done to warrant an increase. He stated the home across the street recently sold for $126,000. Ruben Burau, 974 Yuma Lane North, (32-118-22-11-0156), stated his 1992 value increased by $5,000, and his 1993 value increased another $5,500. He stated that this caused an increase in his property taxes, and he requested that his value be reviewed. Larry AuBuchon, 17930 Queensland Court, (31-118-22-43-0041), stated he purchased his home in 1989 for $230,000. His 1991 value was $240,100. His value increased about 1,000 in 1991 and 1992. He objected to the 1993 value increase of $9,200 over the 1992 value, and asked what percentage of market value the City appraisers strive to use to assess a property. He doesn't believe he could sell his property for the current assessed value of $242,300. Assessor Hovet stated the City appraisers attempt to establish an assessed value that is 100 percent of market value. He stated that some of the large increases or decreases in assessed value in a single year can be attributed to an active market in the same neighborhood. John McCarty, 15810 Gleason Lake Drive, (33-118-22-33-0019), stated it takes effort for citizens to appeal their property valuations, and he asked that the Council seriously consider the requests made. He stated his assessed value was increased $1,000 in 1992, and another $3,000 in 1993. This resulted in a 3.8 percent increase in value, and he asked the reasons for this increase. He stated that a City appraiser provided him with six comparable properties that have recently sold near his neighborhood. Two of the Plymouth Board of Review May 10, 1993 Page 4 properties sold before his value was increased by 3.8 percent. The age, selling price, and square footage of the properties are comparable. He stated one of the comparable properties was built by the same contractor as his home, with the same square footage and design. However, the comparable property has a swimming pool. Mr. McCarty stated the average selling price of the comparable properties was $100,000. He doesn't believe he could sell his property for $85,000, and doesn't accept the six properties provided by staff as comparable to his property. Mayor Bergman asked what factors affect the assessed value. Assessor Hovet stated the size, location, and age of property are some of the factors that affect the value. In addition, the magnitude of sales in a given neighborhood can cause an increase or decrease in other values in that neighborhood. Councilmember Vasiliou stated that her home is in a subdivision where values were stable for a number of years and then significantly increased over a two year period, partially based on the large number of sales within the subdivision. Other factors that affect property taxes are the shift in tax burden from higher to lower valued homes, and the City's portion of the property tax dollar. Carlton Moffett, 4115 Minnesota Lane, (16-118-22-13-0074), withdrew his request to address the Board. Tom Luskey, Jr., 11907 23rd Avenue North, (26-118-22-24-0008), stated he does not feel his value is fair. He moved into Plymouth in October 1981 and paid an amount in the mid $70,000's for his home. Mr. Luskey stated he should have appealed his 1992 value which increased to $109,000. He constructed an addition to his home in 1991, and at that time a private appraiser told him he could get $105,000 for his home without the addition. In 1992, his property was reappraised for refinancing purposes at $120,000. The City has established his 1993 assessed value as $114,200. Mr. Luskey stated his neighbor purchased a home in 1991 for $105,000, and the 1993 value is about $97,000. The home is identical to his, without the addition, and the neighbor has a view of Medicine Lake. Mr. Luskey stated his lot size is substandard, and last year his taxes increased from $1,200 to $1,800. He requested that his assessed value be reduced to an amount that is 85 percent of the market value, which would be the same percentage as his neighbor. Prema Nadig, 18630 34th Avenue North, (19-118-22-21-0028), appealed the $4,000 increase in the 1993 assessed value over 1992. She stated the property was purchased in 1990, and the assessed value increased about $1,000 in 1991 and again in 1992. She requested an explanation for the increased valuation. Karl Pokorny, 1890 N. Troy Lane, (30-118-22-31-0008/30-118-22-31-0009), stated he had verbal comments to add to the letter he previously submitted. He purchased his home and the abutting vacant lot seven years ago. He stated that although the assessed value of Plymouth Board of Review May 10, 1993 Page 5 his home has increased substantially in that time, his concern is with the over 300 percent increased in assessed value of the vacant lot. He stated no improvements have been made to the vacant parcel. Randy Zejdlik, 11800 54th Avenue North, (02-118-22-43-0002), stated his 1992 assessed value compared favorably to his actual purchase price. He objected to the 1993 value being higher than the purchase price, and requested that the value be reduced to his purchase price. Dave Fennern, 4805 Union Terrace Lane, (12-118-22-31-0027), objected to his 11 1/2 percent increase in assessed value for 1993. He stated he spoke with the assessing staff who indicated the large increase resulted from active sales in his neighborhood. He stated there should be a way to gradually increase the values and not have such a substantial increase in one year. Jack L. Strobel, 905 Windemere Curve, (35-118-22-23-0028), stated his property is valued too high based on its location. There is a $156,000 property on one side of his home, and a $110,000 property on the other side. He stated that his home is higher valued and no homes in his price bracket have recently sold in his area, with the exception of a property on Ravenwood that sold two years ago for $176,000. Mr. Strobel stated he was warned when he constructed an addition to his home in 1989 that he would not likely get the value out of the home in that location. He believes the City has overvalued his deck addition, and not appropriately taken into consideration the water drainage problem in his rear yard. Thomas R. Bennis, 17625 3rd Avenue North, (31-118-22-44-0049), stated his assessed value is $152,000. He would not object to this value if his home were in better condition. He purchased the home in May, 1992, for $139,900, which was a high price for the condition of the home. He estimated that the home currently needs about $30,000 in repairs, and requested that his assessed value be reconsidered. Jim Guddal, 4465 Vicksburg Lane, stated no objections to his assessed value. He stated that independent Council decisions can impact citizens. He cited zoning amendments for Downtown Plymouth" approved by the Council in 1992 and stated that this decision restricted his ability to develop his property in the adjacent block. His taxes were increased from $1,700 to $10,600 on that parcel. Councilmember Vasiliou stated that the 1992 Council action on 'Downtown Plymouth" was taken at the request of the property owners who established a group to develop the revised plan. In response to earlier comments by Mr. Peabody, Councilmember Vasiliou stated that perhaps the Council could consider alternatives to the City Council sitting as the Board of Plymouth Board of Review May 10, 1993 Page 6 Review. She stated that Eden Prairie uses a citizen's board of review, while another city's board is selected from other board and commission members. Ron Rousu, 1630 Fountain Lane, (29-118-22-31-0049), stated he should have objected to his 1992 assessed value. In 1992, his value increased from $90,400 to $99,000. His 1993 value increased to $102,300. He requested that his value be reduced to the 1992 value. Assessor Hovet reported that letters objecting to values were received from the following: James Klemp, 11930 61st Avenue North, (02-118-22-21-0039); and Karl and Joyce Pokorny, 1890 N. Troy Lane, (30-118-22-31-0008). The Board of Review meeting was adjourned at 8:10 p.m. to Monday, May 24, 1993. Cfty Clerk