041497 CC BR Min
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CITY OF SHOREWOOD
BOARD OF REVIEW
MONDA Y, APRIL 14, 1997
COUNCIL CHAMBERS
5755 COUNTRY CLUB ROAD
7:00 P.M.
MINUTES
1. RECONVENE BOARD OF REVIEW
Mayor Dahlberg called the meeting to order at 7 :02 p.m.
A.
Roll Call
Present:
Mayor Dahlberg; Councilmembers Stover, McCarty, O'Neill and Garfunkel; Rolf
Erickson, City Assessor; and James Hurm, City Administrator
Review Agenda
B.
The agenda was approved as presented for April 14, 1997.
2. APPROVAL OF MINUTES
A Motion to Approve the Board of Review Meeting Minutes - April 2, 1997
The Board of Review Meeting Minutes for April 2, 1997, were approved as
amended on Page 4, Sentence 1, change "Brent" to "Brett."
3.
CONSIDERATION OF A MOTION REGARDING CITY ASSESSOR'S
RECOMMENDA TIONS
William Wicka, 27930 Smithtown Road, PID 31-117-23-34-0001, appeared and
stated he did not feel the valuation of his home was correct. A 5,000 square foot house in the
neighborhood which was newly remodeled sold for something less than $640,000. In addition,
the neighboring home is located on a lot which is three to four times larger. This home sold for
$405,000. The seller then purchased a home located on an acre lot on the other side of Smithtown
Bay for $745,000. He noted the home to consist of 5,500 square feet and is approximately 7 years
old. Mr. Wicka stated the work to his home is strictly cosmetic and the basement is in need of
finishing work. He further explained he did not perform the work himself, but rather paid market
value for a contractor as well as the materials which were used in the house. Mr. Wicka felt the
valuation should be in the $600,000 range rather than $700,000.
City Assessor Erickson explained he had been unable to obtain a selling price on the home Mr.
Wicka referenced which is located in Carver County. He further explained the neighboring home
is much smaller and a much different type of home.
Councilmember O'Neill commented that when using a contractor, the property owner would not
receive that value back out of the property. Mr. Wicka stated $620,000 or a figure close to that
would be acceptable to him.
Mayor Dahlberg questioned whether it would be unreasonable for the valuation to be set at
approximately $650,000. Mr. Erickson felt this would be incorrect and unfair to the other
lakeshore properties in the city. He stated this is a very nice, modem home on 100 feet of
lakeshore.
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BOARD OF REVIEW MINUTES
APRIL 14, 1997 - PAGE 2
Mr. Erickson suggested Mr. Wicka proceed with an appeal to Hennepin County with a sworn
construction statement from the contractor. He noted it is not unusual to have a variety of prices in
a property which could be a comparable property.
Councilmember Stover felt the homes should be kept comparable. Councilmember McCarty felt
Mr. Wicka should appeal to Hennepin County. Councilmember O'Neill noted his agreement and
felt Mr. Wicka should provide a sworn construction statement to Hennepin County.
Councilmember Stover felt his better choice would be to go to Hennepin County. She felt the
County would have the experience necessary to value the property. Mr. Erickson pointed out the
value could also be raised at the county level. In addition, Mr. Erickson pointed out that properties
on the lake are selling for more than their value.
Mayor Dahlberg suggested adjusting the value within fair boundaries and then Mr. Wicka could
make a decision relative to proceeding with an appeal to the county level. He suggested an
adjusted value of approximately $690,000.
Councilmember McCarty stated taxes and property values are two separate issues. She noted
legally the total property values must be within a particular range. Mayor Dahlberg stated it is up to
the Council to decide whether or not a particular property value is fair given the testimony
presented.
Councilmember McCarty pointed out the house was valued at $750,000 and revalued at $716,000
and another decrease to $690,000 would result in a decrease of $60,000 from the original value.
She felt this to be a substantial adjustment to the valuation.
Councilmember O'Neill felt it would be difficult to make an informed decision without having the
benefit of an appraisal. Mr. Erickson stated the Council has an appraisal opinion. He felt Mr.
Wicka should proceed to the County to obtain a full appraisal. He explained if the county were
inclined to increase the value, they would give the applicant an opportunity to withdraw his
request.
O'Neill moved, Dahlberg seconded approving an adjustment in the value of PID
31-117-23-34-0001 to $680,000 for William Wicka, 27930 Smithtown Road.
Motion failed 2/3. (Councilmembers Garfunkel, McCarty and Stover were the
dissenting votes.)
Stover moved, McCarty seconded approving the recommended value of $716,000
for PID 31-117-23-34-0001, for William Wicka, 27930 Smithtown Road. Motion
passed 3/2. (Mayor Dahlberg and Councilmember O'Neill were the dissenting
votes.)
Harvey Strohm, 5945 Christmas Lake Road, PID 35-117-23-42-0017, was
displeased with the actions of the City Assessor. He explained he had been advised by an attorney
to contact two realtors regarding a valuation of his property. When Mr. Strohm contacted Carl
Zinn, Mr. Zinn informed him he had been contacted by the assessor relative to the valuation of the
property.
Mr. Strohm explained Mr. Zinn had volunteered to contact the City Assessor to ensure the
valuation was decreased. Mr. Strohm provided letters from two realtors, Joel Hentges and Carl
Zinn, noting their opinion of the property.
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BOARD OF REVIEW MINUTES
APRIL 14, 1997 - PAGE 3
Councilmember Garfunkel commented realtors are in the business of buying and selling property
and he felt they would be willing to abide by whatever price a property owner feels their property
is worth.
Councilmember Stover inquired whether either of the realtors had contacted the City Assessor.
Mr. Erickson commented was unaware of anyone from his office contacting Mr. Zinn regarding
Mr. Strohm's property. He noted he had not spoken with either of the realtors involved.
Councilmember O'Neill pointed out there are two houses on the property, one being a rental
property. Mr. Erickson clarified that the valuation of $100,000 includes both buildings on the
property. Councilmember O'Neill noted the home to have major problems relative to the lack of
footings and the significant radon problem.
Councilmember O'Neill did not feel there was sufficient information to make a recommendation.
Mr. Strohm remarked his complaint is with the value of the buildings and not the value of the land.
O'Neill moved, Stover seconded approving a decrease in the value of the house to
$90,000 for PID 35-117-23-42-0017 for Harvey Strohm, 5945 Christmas Lake
Road. Motion passed 5/0.
John Wood, 4915 Regents Walk, PID 25-117-23-23-0002, provided a Purchase
Agreement verifying the home was purchased on November 29, 1996, for a purchase price of
$260,000. He also provided a statistical sheet from Counselor Realty depicting the list price of
$299,000 and a market time of 191 days. The list price was then decreased from $315,000 to
$299,000.
Mayor Dahlberg inquired what kind of improvements had been made to the home. Mr. Erickson
stated two appointments had been made and canceled by the property owner so he was unable to
view the property.
Councilmember Stover asked what improvements had been completed to make the home livable.
Mr. Wood explained the wet basement needed water-proofing with the addition of sump pumps
and drain tiles. The carpeting was completely replaced as well as all of the kitchen appliances.
Painting and attic insulation work were also completed in 1997. Mr. Wood felt $260,000 was a
fair price for what they received.
O'Neill moved, Garfunkel seconded decreasing the valuation to $260,000 for PID
25-117-23-23-0002 for John Wood, 4915 Regents Walk. Motion passed 5/0.
Jerry O'Neill, 25540 Nelsine Drive, PID 33-117-23-22-0007, left the Board of
Review dias to address the Board as a property owner. He pointed out there is a home located at
5670 Wedgewood which is newer and has a three car garage. He noted there to be a 2,000 square
foot difference in lot size, yet there is a difference of $9,500 in the valuation of the two homes.
Councilmember McCarty noted the home Mr. O'Neill was describing does not have a basement.
Mr. O'Neill questioned the value of the land for the Wedgewood home to be $1.37 per square feet,
while his price per square foot was valued at $1.57.
Mr. Erickson explained the location on Smithtown and the open field behind Mr. O'Neill's home
would account for the increased value per square foot. Mr. O'Neill stated he will contact an
appraiser and pursue an appeal at the county level.
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BOARD OF REVIEW MINUTES
APRIL 14, 1997 - PAGE 4
Stuart Finney, 19710 Chartwell Hill, PID 36-117-23-13-0026, submitted a letter to the
Council which was distributed. Councilmember Stover felt the letter appeared to be a criticism of
the system. Mr. Erickson stated he has viewed the property many times. Mr. Finney disagrees
with the valuation of the property yearly. Councilmember O'Neill did not feel this home had
increased a significant amount.
Stover moved, McCarty seconded accepting the Assessor's recommendations with
respect to the remaining properties which were reviewed. Motion passed 5/0.
Stover moved, Garfunkel seconded accepting the Assessor's recommendations on
the other properties listed which were not reviewed. Motion passed 4/1.
(Councilmember O'Neill was the dissenting vote.)
Garfunkel moved, Stover seconded approving the value recommendation of the
City Assessor for PID 33-117-23-22-0007 for Jerry O'Neill, 25540 Nelsine
Drive. Motion passed 4/0. (Councilmember O'Neill abstained.)
The following property owners appeared by letter which was submitted noting their intention to
proceed with an appeal to Hennepin County.
Mary Ellen McNutt Platzer
19765 Murifield Circle
PID 36-117-23-12-0035
Linda Smith
25480 Smithtown Road
Pill 33-117-23-23-0005
David Littlefield
24775 Glen Road
PID 33-117-23-12-0023
Leonard and Nancy George
25180 Smithtown Road
PID 33-117-23-24-0014
4. ADJOURN TO REGULAR CITY COUNCIL MEETING
Stover moved, O'Neill seconded to adjourn the Board of Review Meeting to the
Regular City Council Meeting at 8:01 p.m. Motion passed 5/0.
RESPECTFULL Y SUBMITTED,
Cheryl Wallat, Recording Secretary
TimeSaver Off Site Secretarial
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