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041398 CC BR Min . CITY OF SHOREWOOD BOARD OF REVIEW MONDA Y, APRIL 13, 1998 COUNCIL CHAlYIBERS 5755 COUNTRY CLUB ROAD 7:00 P.M. MINUTES 1. CONVENE CITY COUNCIL MEETING Mayor Dahlberg called the meeting to order at 7:00 p.m. A. Roll Call Present: Mayor Dahlberg; Councilmembers Stover, McCarty, O'Neill and Garfunkel; and City Assessor Rolf Erickson Review Agenda B. The agenda was approved as presented for April 13, 1998. 2. APPROV AL OF lYIINUTES A Motion to Approve the Board of Review Meeting Minutes - April 1, 1998 The Board of Review Meeting Minutes for April 1, 1998, were approved as submitted. 3. CONSIDERATION OF A MOTION REGARDING CITY ASSESSOR'S RECOMMENDATIONS . Mr. Erickson, City Assessor, explained he recommended a change on the Rodney Helling property, 26000 Shorewood Oaks Drive, PID 32-117-23 44 0022. He noted upon a review of the site, the property was the closest to Highway 7 in Shorewood Oaks and this factor was not considered at the time of the initial appraisal. Mr. Erickson also explained the nine acre Brandhorst property which is agricultural will possibly qualify as green acres which would result in a significant decrease in the property taxes. Mr. Brandhorst has made application to Hennepin County, unfortunately this will not apply until next year. . Mr. Erickson explained the process which was followed relative to the properties which were reviewed. He noted the purpose of this particular meeting is for the Board of Review to detemrine whether the properties are at market value or not. If an applicant disagrees with the decision of the Board, they may appeal the matter to Hennepin County Assessor's Office. A more in-depth approach will then be utilized to review the property. Pat lYIcDavitt, 21125 Christmas Lane, PID 35-117-23 44 0005, stated he was very impressed several of the Councilrnembers stopped by his property to view it. He expressed his appreciation for them taking the time and interest to do this. Mr. McDavitt explained his valuation increased by $80,000 with the land being valued at $460,000. He felt this increase to be too much given the valuations of surrounding properties. Mr. McDavitt proposed a $40,000 increase which would be approximately 8 percent. This would place the value of his property between the values of the surrounding properties. . . . . RECONVENED BOARD OF REVIKW APRIL 13, 1998 - PAGE 2 Councilmember. O'Neill inquired as to the rationale in increasing the value of a property by $80,000. He pomted out for three years there had been no increase in land values in the Christmas Lake area. Mr. Erickson explained given the limited number of sales in the past, the values were based on what was happening at that time. Sales in this particular area greatly increased over the past year. He pointed out he is required by State law to value properties at market value. Mayor Dahlberg asked whether there is a formula which can be referred to by which market value is calculated. Mr. Erickson stated it would be impossible to utilize a formula. Councilmember McCarty stated other homes which are similar are taken into consideration because the market value must be determined. Councilmember O'Neill stated the comparables would not have had to have been based on Christmas Lake and other comparables on other lakes could have been used in past years. Mr. Erickson suggested if the Board does not agree with the values assessed, the Board should make an adjustment. Mayor Dahlberg felt the increase was too severe and Council member O'Neill noted his agreement. Dahlberg moved, O'Neill seconded recommending an 8 percent increase, resulting in a total assessed value of $555,000. Motion passed 4/1. (Councilmember l\IlcCarty was the dissenting vote.) Cliff Brandhorst, 27225 Smithtown Road, PID 31-117-23 44 0028, 31-117-23 41 0021 and 0022, expressed his appreciation to the Council for their assistance in this matter. He noted he has made application to Hennepin County to qualify his property as green acres. He inquired what this will mean in terms of his tax rate. Mr. Erickson explained green acre properties cannot be special assessed. In addition, instead of valuing the land at $33,000, it will be valued at $1,600 for tax purposes. The taxes would be approximately 1 percent of $1,600. The house and the site are valued at $143,000 and Mr. Brandhorst inquired why the value is set at $230,000 for next year. Mr. Erickson explained the remainder of the property is agricultural and valued at $101,000 and this is the portion which would be reduced by the green acres classification. Mr. Erickson explained the green acres classification, if approved, will be reflected in the 1999 tax year. Mr. Brandhorst pointed out that if for some reason the property does not qualify for the green acres classification, he will not know that until after the opportunities for appeal have passed. Mr. Erickson stated the Hennepin County Board will be closed by approximately June 10, 1998, however, Mr. Brandhorst could fIle a claim in tax court by March 31, 1999. Ray Barton, 5915 Christmas Lake Road, PIn 35-117-23 42 0020, stated the value of his house has increased $111,000 over the last four years. He stated he obtained an appraisal from a realtor which he distributed to the Council. Mr. Barton stated the lakeshore is unusable given the amount of silt in the area. Mr. Barton felt the value of the property should be between $525,000 and $550,000, noting the assessed value of the property to be $667,000. He prqvided the~ouncil with a number of comparables which were used to place a value on his home. Mr. Erickson pointed out this is a realtor's opinion relative to value and adjustments were made to the various properties. "RECONVENED BOARD OF REVIKW APRIL 13, 1998 - PAGE 3 . Councilmember O'Neill noted there to be a 25 percent increase in the land value this year. In the years 1990 through 1992, the value was 5150,000 and then increased by 25 percent this year and he disagreed with this. Dahlberg moved, Stover seconded to reduce the value of the property to $530,000. Councilmember McCarty noted this will result in lowering the value by $137,000. Mr. Erickson explained for several years the value stayed the same because the value had been decreased by the Board. "Mayor Dahlberg withdrew the motion. Councilmember O'Neill stated he would agree to reduce the value to the 1997/1998 rate of $613,000. He explained Hennepin County will conduct an appraised value versus an appraisal which is conducted by a realtor. He pointed out Mr. Barton could appeal this matter with Hennepin County if he disagrees. o 'N eill moved, McCarty seconded to reduce the rate to the 1997/1998 rate 0 f $613,000. Councilmember Garfunkel stated he would defer to Councilmember O'Neill based on his experience in this area. . Motion passed 5/0. Jeff Aschenbeck, 6050 Chestnut Court, PID 36-117-23 44 0023, was very surprised when he received a notice there would not be an adjustment made to his assessed property value. Mr. Aschenbeck noted a home similar to his, located on his block, sold for $190,000 last July. Mr. Erickson pointed out a relocation company purchased this home and sold it on the open market. Mr. Aschenbeck felt the assessed value should remain at $187,000 based on a comparison with the $190,000 sale. Councilmember O'Neill did not feel that sale held value since it was not an arms length sale and he explained there would need to be at least three comparables. He further explained if the property were appraised two years ago at $187,000, it would have increased in value over those years. Councilmember McCarty stated cosmetic items can be a factor in the value of a property. Mr. Erickson pointed out the property which Mr. Aschenbeck presented as a comparable sale was valued at $219,000. Councilmember McCarty stated she would not support a reduction. Councilmember O'Neill felt the increase in assessed value to be minimal for a home located in Shorewood. Garfunkel moved, McCarty seconded to accept the $196,000 valuation of the City Assessor. Motion passed 5/0. . Jeff Fox, 5270 Howards Point Road, PID 30-117-23 44 0009, distributed a letter to the Council for their review. Mr. Fox stated the 1998 number reflects $13.39 per square foot for the land. He pointed out this is a 30 percent increase. Mr. Fox described several other homes in the area which have sold multiple times over the past several years. One home sold for less than 90 percent of the market value. . RECONVENED BOARD OF REVIKW APRIL 13, 1998 - PAGE 4 . Mr. Erickson pointed out various "lots will have different values. Mayor DahlberO' questioned the assessed value of the land which has increased from $6.34 to $13.39 per squart foot and asked what would account for this amount of increase. Mr. Erickson explained when viewinO' a property, the deeper a lot is relative to the standard depth in the area, the less value that depth ~ill add to the property. This can be applied by an appraiser as a depth factor. Councilmember McCarty questioned whether Mr. Fox feels his value is too high or that the neighboring values are too low. Mr. Fox felt his property value should be based on the comparable sales in the area and felt there needs to be consistency in the area. Mr. Fox noted the land value has increased 30 percent with only a minimal increase on the value of the home. Councilmember O'Neill felt Mr. Fox's home to be very comparable to the adjacent properties. He expressed concern with an $85,000 increase in land value. Dahlberg moved, O'Neill seconded approving an 8 percent increase on the land over the 1997/1998 value which results in a total assessed value for this property of $442,100. Motion passed 5/0. Bill Wicka, 27930 Smithtown Road, PID 31-117-23 34 0001, stated the County assessed his property on June 24, 1997, at $695,000 which was just six months prior to the date it was assessed at $746,000. Mr. Wicka pointed out the assessed value on the land increased from $318,000 to $334,000. The value of the building increased from $377,000 to $412,000. . Councilmember Garfunkel pointed out this is slightly more than a 7 percent increase and suggested a 4 percent increase over the $695,000 which was assessed by Hennepin County. This would result in a total assessed value of $722,800. Mr. Wicka stated he would support a $16,000 increase on the land with no increase on the home. Garfunkel moved, McCarty seconded approving a 4 percent increase over the 1997/1998 value of $695,000 resulting in a total assessed value for this property of $722,800. Motion passed 5/0. Frank Fallon, 1050 Holly Lane, PID 35-117-23 44 0007, distributed pictures of his lot and described to the Council what was depicted. He also provided the Council with a summary of the numbers involved. Mr. Fallon explained the value of the land has been increased by 25 percent with a 1.5 percent increase on the building. Mr. Fallon suggested the increase on the land be reduced to 10 percent. Dahlberg moved, O'Neill seconded approving an 8 percent increase over the 1997/1998 valuation rate on the land value and a 1.5 percent increase on the house value resulting in a total assessed value for this property of $492,200. Mr. Erickson reported to the Council the following residents have indicated their intention to fIle an appeal with the Hennepin County Board. Martin and Cheryl O'Brien, 4790 Lakeway Terrace, 26-117-23-11-0062 Louis and Linda Tilton, 5620 Covington Road, 36-117-23-24-0013. . . . . ... ..' :. RECONVENED BOARD OF REVIEW APRIL 13, 1998 - PAGE 5 A letter was received from Dennis Jabs, 20915 Radisson Road, PID 35-117-23 11 0081, requesting a reduction in the assessed value of his property. Mr. Jabs explained he was unable to attend the meeting. Mayor Dahlberg noted the increase on the land value to be 24.89 percent. Dahlberg moved, Garfunkel seconded approving an 8 percent increase on the land valuation from the 1997/1998 value of $114,500. The building will remain with a valuation of $122,000 with a total assessed value for this property of $ 2 4 5,600. J\tIotion passed 5/0. Stover moved, McCarty seconded accepting the remaining recommendations of the City Assessor. Motion passed 4/0. (Councilmember O'Neill abstained.) 4. ADJOURN TO REGULAR CITY COUNCIL MEETING Mayor Dahlberg adjourned the Board of Review Meeting to the Regular City Council Meeting at 8:33 p.m. Motion passed 5/0. RESPECTFULLY SUBMITTED, Cheryl Wallat, Recording Secretary TimeSaver Off Site Secretarial, Inc. TOM DAHLBERG, M