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050503 Board of Review Min . '..... . . . CITY OF SHOREWOOD BOARD OF REVIEW MONDAY, MAY 5,2003 5755 COUNTRY CLUB ROAD COUNCIL CHAMBERS 7:00 P.M. . MINUTES 1. RECONVENE BOARD OF REVIEW MEETING Chair Love reconvened the Board of Review Meeting at 7:03 P.M. A. Roll Call Present: Chair Love, Councilmembers Garfunkel, Turgeon, and Zerby (arrived at 7:04 P.M.); Administrator Dawson Absent: Councilmember Lizee B. Review Agenda Without objection from the Board, Chair Love proceeded with the Agenda for the evenmg. 2. APPROVAL OF MINUTES B. Board of Review Meeting Minutes of April 21, 2003 Turgeon moved, Garfunkel s~conded, Approving the Board of Review Meeting Minutes of April 21, 2003. Motion passed 3/0. 3. CONSIDERATION OF A MOTION REGARDING CITY ASSESSOR'S RECOMMENDATIONS Mr. Davy, the assessor from the Hennepin County Assessor's office, stated that there were 13 requests for property reassl;:ssment frorn.the residents of Shorewood, 11 presentations to the Hoard at the .first meet~l1g arid 2 letter requests. Councilmember Zerby arrived at 7:04 P.M. Mr. Davy then reviewed his assessment recommendations for the properties that he reviewed. Marjorie J. Yaeger, 5445 Timber Lane, PID 34-117-23-22-0018, Mr. Davy recommended no change in the original 2003 estimated market value price of $806,000. ... ~ . . . BOARD OF REVIEW MINUTES May 5, 2003 Page 2 of 4 John Bridge, 25810 Birch Bluff Road, PID 29-117-23-44-0007, Mr. Davy recommended a 5% adjustment in the estimated market value price from $857,000 to $817,000. Raymon Brockhouse, 25960 Birch Bluff Road, PID 29-117-23-44-0012, Mr. Davy adjusted the value from $837,000 to $675,000 due to the underimprovement and functionality of the lot and house. This adjustment was also affected by the offer of $650,000 for Mr. Brockhouse's property when it was listed on the market. William Colopoulos, 26215 Shorewood Oaks Drive, PID 32-117-23-43-0028, Tom Kunik inspected this property and adjusted the price from $452,000 to $425,000 due to the condition of the house. Dennis P. Regnier, 5250 St. Albans Bay Road, PID 25-117-23-33-0040, Mr. Davy stated that he had tried repeatedly to contact Mr. Regnier and had left several messages but none of his calls had been returned. Therefore there was no reassessment ofthis property. The 2003 estimated market value of $566,000 did not change. Steven C. Hall, 6195 Deer Ridge, PID 35-117-23-33-0042, Mr. Davy inspected this property and adjusted the estimated market value from $442,000 to $409,000 due to the quality of the house. Michael D. Hoy, 25480 Smithtown Road, PID 33-117-23-23-0005, Mr. Davy spoke with Mr. Hoy about his eligibility for the This Old Home exclusion and Mr. Davy informed Mr. Hoy that he was ineligible because his home improvements occurred before 1994, which is when This Old Home exclusion was implemented. Cary S. Robinson, 26995 Marsh Pointe Court,PID 32-117-23-23-0009, Mr. Davy stated that the estimated market value of $603,000 was correct for this property according to his assessment. Dale A. Woodbeck, 26475 Strawberry Court, PID 32-117-23-31-0037, Mr. Davy adjusted the estimated market value ofthis property from $403,000 to $393,000 due to the quality of the basement finish. Mike Histon, 26220 Wild Rose Lane, PID 32-117-23-12-0032, Mr. Davy inspected this property and adjusted the estimated market value from $492,000 to $466,000 due to the advanced age of the building. Dean J. Stinchfield, 19655 Silver Lake Trail, PID 36-117-23-43-0021, Mr. Davy stated that this property was readjusted from $685,000 to $635,00 due to the quality of the house and basement. Clifford Whitehill, 19215 State Highway #7, PID 25-117-23-41-0028, Mr. Davy stated that the estimated market value of$185,000 for this commercial property would not change because this is a reasonable assessment for this piece of real estate. . . . ... BOARD OF REVIEW MINUTES May 5, 2003 Page 3 of 4 James J. Quandt, 22425 Murray Street, PID 34-117-23-44-0059, Mr. Davy stated that the estimated market value for this property would not change from $85,000 because it was a secondary lot whose original price of$320,000 was valued incorrectly. The secondary lot was not moving in value along with the primary lot. Mr. Davy stated that he had called Mr. Quandt and explained this issue to him. Chair Love stated that he appreciated Mr. Davy's work on these property assessments. Chair Love invited Mr. Fox to address the Board regarding his concern with the valuation of his property. Jeff Fox, 5270 Howard's Point Road, 30-117-23-44-0009, Mr. Fox questioned the estimated market value of his property in comparison with a recently sold property near his own along Howard's Point Road. The 2003 estimated market value for Mr. Fox's 28,000 square foot property is set at $932,000. Mr. Fox stated that he had previously believed that property valuations were based on the fiscal year of January 1, 2002 to December 31, 2002. Mr. Fox stated that the sold property was 130% larger than his own. It also had 235 feet of shoreline compared to 165 feet of shoreline for his property. His house is 49% smaller in square footage as compared to the sold property. Mr. Fox questioned how the values are set for property since there have been only 8 sales on Howard's Point in recent years, in which the sale price has been lower than the estimated market value assigned to the property. Mr. Davy stated that the buyer's prime motivation for purchasing the property that Mr. Fox is referring to was the land itself, particularly its amount oflakeshore. He stated that the buyer mentioned the functional problems with the house, although the property still sold for $1.5 million. The size of the property and the amount of shoreline are determining factors in the differences between property valuations. Mr. Fox asked how the valuations are discounted relative to the total amount of square footage of the property. Mr. Davy stated that the valuation price is $8,500 per square foot for the first 100 feet of lakeshore. Properties possessing over 200 feet of lakeshore are discounted due to the demand of the real estate market as buyers are generally unwilling to pay that initial rate for the total amount of lakeshore. Mr. Fox asked how there could be only a 39% difference in property valuation between his house and the sold property since they share the same size footprints, elevation, and facing although they were built in different years, with his property built in 1946 and the sold property built in 1955. Mr. Davy stated that the property valuations are judgments determined by the selling market. He stated that Mr. Fox could appeal this assessment with Hennepin County. Chair Love stated that the next step in the process was a discussion by the Board to decide whether some of these reassessments should be pulled for further consideration. .. . . . ~ BOARD OF REVIEW MINUTES May 5, 2003 Page 4 of 4 Administrator Dawson stated that 14 appeals were at issue, 13 of them listed by Mr. Davy and then Mr. Fox's presentation tonight. He stated that the Board could choose to either act on each individual assessment in order to discuss it further or the Board could choose to approve the appeals altogether as a whole. Administrator Dawson stated that the Board has until the end of this week to complete any discussions concerning Mr. Davy's assessments. He also stated that any appellant who does not agree with the Board's decision should appeal to Hennepin County, with a final appeal to Minnesota State Tax Court. Zerby moved, Turgeon seconded, Approving the motion to accept report as a whole. Councilmember Zerby stated that all of Mr. Davy's reassessments seemed appropriate. Councilmember Turgeon stated that the adjustments were based on comparison of similar properties and the reassessment complied with the information given. Chair Love stated that there must be a clear and compelling reason to pull a particular property assessment out for further review, and he saw no such reason pertain to any of the assessments. He stated that there had been good questions asked about the process by the residents. Motion passed 4/0. Chair Love stated that the Board of Review has finished its business for 2003 and therefore they would not set another meeting date. 4. ADJOURN Garfunkel moved, Zerby seconded, Adjourning the Board()f Review Meeting of May 5, 2003, at 7:33 P.M. Motion passed 4/0. RESPECTFULLY SUBMITTED, SUSAN FISCHER Recording Secretary Woody Love, Chair