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HomeMy WebLinkAboutBoard of Appeals and Equalization - 04/21/2022UNAPPROVED MINUTES EDEN PRAIRIE BOARD OF APPEAL AND EQUALIZATION RECONVENE THURSDAY, APRIL 21, 2022 7:00 PM—CITY CENTER Council Chambers 8080 Mitchell Road BOARD MEMBERS PRESENT: Lyndon Moquist, Chair; Eileen Canakes, Vice-Chair; Kristin Rial, Nate Thompson and James Lawver CITY STAFF PRESENT: County Assessor: Jim Atchison City Assessor: Jon Thompson Assessing Technical Operations Supervisor: Dave Buswell Appraiser III: Jim Wise Appraiser II: Alex Oldefendt Appraiser I: Jordan Crowe Kristin Harley, Recording Secretary I. CALL THE MEETING TO ORDER Chair Moquist called the meeting to order at 7:00 p.m. Moquist reviewed the ground rules for the meeting and asked members of the public to limit their presentations to three minutes. II. PROCEDURAL INFORMATION BY JON THOMPSON Jon Thompson welcomed the public and introduced the staff. He explained this reconvene meeting was a continuation of the April 6, 2022 meeting. Jon Thompson gave an overview of the assessment laws and procedures which are adjusted every year as of January 2 (2022 for this year) according to statute. He reminded the public that housing values were based on market sales and the board could not review percent of year-over- year change or potential impacts to taxes payable, which was unknown at this time. The agenda was organized into two sections and section A would start with residential property before moving on to commercial property. MOTION: Canakes moved, seconded by Rial approve the minutes from the April 6, 2022 meeting. Motion carried 5-0. Assessing staff organized a sign-in sheet for property owners who wished to address the Board. The Board opted to hear comments from property owners in attendance to discuss and take action on these properties before continuing through the organized agenda. Property owners in attendance were announced in the order of appeal number, starting with residential properties, then commercial properties. ORDER OF BUSINESS A. REVIEW UNRESOLVED APPEALS IN SECTION A AS LISTED ON THE APRIL 21, 2022 BOAE LIST AND STATUS OF APPEALS Appeal 120 – Devin Doyle – 13048 Cardinal Creek Rd– PID 03-116-22-41-0028 The owner stated a large issue was the unfinished basement. The comparable 12866 Cardinal Creek Road also had a partial unfinished basement and updated bathrooms. Comparables had a sound barrier against Highway 494 but his house did not. The price per square foot would price his house at over $800,000 but nicer homes further down Promontory Drive could not sell for that. Moquist stated the market for single-family homes value a basement level about half per square foot compared with above-ground space and he asked for and received clarification that this was a partial walk-out. Rial added in this area the reason homes did not sell for the higher prices was due to the highway, but the comparable the owner mentioned did have sheetrock in the basement but was not fully finished, whereas this has a three-car garage. $500,000 was too low. The owner stated there is a post in the garage making it difficult or unable to park three cars. Moquist stated the smaller comparable on the map also was not buffered from the highway. However, this home was across the street whereas other homes abutted the highway. Canakes concurred with the assessor’s price. Moquist added the visibility of the highway was more of an issue than the noise, unfortunately. Rial stated she found these homes to be undervalued perhaps due to style. She suggested $550,000 and Nate Thompson suggested $575,000. The owner reiterated how the noise from the highway could stop personal conversations. Nate Thompson replied in different markets factors could change and a buyer from Minneapolis used to airport noise would have a different interpretation. MOTION: Nate Thompson moved, seconded by Canakes in Appeal No. 120, PID 03-116-22-41-0028, to affirm the value of $560,300 with no change. Motion carried 5-0. Appeal 130 – Allan Joe – 17143 Raleigh La– PID 20-116-22-31-0072 Owner Allan Joe handed out sheets showing sales and assessed values, and stated the assessor based their estimation on houses far from his house whereas what he handed out were nearby houses on his block. He had never appealed before but this year his house was priced too high. Moquist asked for and received clarification on which house was the closest to Joe’s. He noted the comparables were at least 100 square feet smaller and another was 500 square feet smaller with a two-car garage, whereas this house had a three-car garage. Joe stated his goal was to have a house value similar to his neighbors’ rather than with comparables father away with significant remodeling. Jon Thompson stated there were no interior shots of the nearby houses. Canakes stated Joe made a good point and estimated a value in the upper 500s. Joe stated he had a screen porch, but a neighbor had a four-season porch with a pond. MOTION: Canakes moved, seconded by Moquist, in Appeal No. 130, PID 20- 116-22-31-0072 to reduce the value to $595,000. Motion carried 5-0. Appeal 210 – Lisa Wu – 15396 Village Woods Drive – 16-116-22-34-0043 Wu stated it seemed every year her house was valued at the most on her block despite being the smallest. She only had a two-car garage and was surprised by the value of her house this year. Canakes explained value was found by comparing homes of similar style and square footage, and houses would not rise in value in the same proportion every year. 2021 saw a particularly robust market. Wu replied her value seemed out of line compared with her neighbors’ homes. Moquist noted the sale price of a comparable in 2020 and the proximity of the lake. Discussion followed on the comparables on the map. Rial suggested a lake lot deserved a price point of $550,000. Nate Thompson noted the lake was not usable, and Moquist replied the view was a factor. Canakes found the assessors comparables to be fair. Lawver noted some comparables had six bedrooms whereas this house had three. He found the assessor’s value to be high but could not suggest a number. MOTION: Nate Thompson moved, seconded by Canakes, in Appeal No. 210, PID 16-116-22-34-0043 to reduce the value to $560,000. Motion carried 5-0. Appeal 185 – Bremco LLC – 770 Prairie Center Dr– PID 14-116-22-23-0018 Bachman stated his business, Bachman’s, had been at the site for almost 30 years. He handed staff a document to present onscreen and stated he was out of town for the previous meeting. This was one of five stores/greenhouses/parking lots in the Twin Cities area, all similarly sized. He compared his value with the pattern at other stores, and noted the site had disadvantages: heavy clay soil, requiring soil mitigation and excavation; the topography of the site, with extreme level changes; and a water mitigation required by the neighboring Costco site, requiring two large conduit pipes to the pond at considerable expense. The assessor gave an increase of 34 percent and was not valuing the property as an existing business but as future apartment redevelopment, for example. Other stores’ values stayed the same or even declined. There was no evidence of any other commercial property being marked up 34 percent. Bachman stated he wished to work with the Board on this issue. He added he could not imagine an apartment being built on the site given the proximity of the LRT. Moquist stated the assessor might have been referring to the highest and best use, not an urge to transform the property. The board was not able to name another commercial property with a similar value increase. Moquist thanked Bachman for being a good steward of the land with all his mitigation efforts. Bachman added his story of the struggle to sell his inventory when the Covid-19 pandemic hit in March 2020. Canakes stated it would be in the owner’s best interest to go to the next level of appeals and she would make a motion for no change to facilitate that. Moquist added he could not imagine a housing development at that site as its “highest and best use.” The board members agreed to make a motion for no change, allowing Bachman to take his case to the next level. MOTION: Canakes moved, seconded by Lawver, in Appeal No. 185, PID 14-116-22-23-0018, to affirm the value of $4,419,000 with no change. Motion carried 5-0. Appeal 191 – Lakes Parkway, LLC – 12700 Anderson Lakes Pkwy– PID 23-116-22-22-0095 James Gilbert detailed his five-year difficulties in trying to sell or even to list the property, first at $1,250,000 and then around $900,000. Offers ranged from $630,000 to $820,000. Unfortunately the building was too small for some uses and too large for others and had no elevator. It did not meet certain building codes for some uses. His business had been devastated by the pandemic and the property needed mitigation, though he understood perhaps the board could not consider this. Moquist asked if the land was valued more than the building. Jon Thompson replied there is contributory value in the building, and that this building was not designed for a multi-tenant use and Gilbert’s business does not need to occupy the entire building, thus the difficulty in leasing or selling. 2021 saw many similar sales and downsizing of smaller business spaces due to the pandemic, and he did share 12 sale comparables with Gilbert. He estimated a value of about $100 per square foot. Moquist stated Gilbert made many valid points. Nate Thompson replied he believed in the market, which indicated $800,000 in 2021. MOTION: Canakes moved, seconded by Nate Thompson, in Appeal No. 191, PID 23-116-22-22-0095, to reduce the value to $900,000. Motion carried 5-0. Appeal 123 – Wendle Besta – 17420 66th St W– PID 05-116-22-23-0003 MOTION: Canakes moved, seconded by Rial in Appeal No. 123, PID 05-116- 22-23-0003, to reduce the value to $330,000. Motion carried 5-0. Appeal 128 – Randy Rannow – 15210 Scenic Heights Rd– PID 16-116-22-24-0001 MOTION: Canakes moved, seconded by Rial in Appeal No. 128, PID 16-116-22-24-0001, to affirm the value of $382,200 with no change. Motion carried 5-0. Appeal 132 – Linda Lonn – 14702 Boulder Pointe Rd – PID 21-116-22-11-0025 There was an agreement on this property. MOTION: Rial moved, seconded by Canakes, in Appeal No. 132, PID 21-116-22-11-0025, to reduce the value to $750,000. Motion carried 5-0. Appeal 136 – Gregory Klingler – 18897 Explorer Tr– PID 30-116-22-32-0037 MOTION: Canakes moved, seconded by Lawver, in Appeal No. 136, PID 30-116-22-32-0037, to affirm the value of $747,900 with no change. Motion carried 5-0. Appeal 163 – James M Nehl – 8011 Island Rd– PID 17-116-22-24-0016 MOTION: Rial moved, seconded by Canakes, in Appeal No. 163, PID 17-116-22-24-0016, to affirm the value of $1,116,900 with no change. Motion carried 5- 0. Appeal 170 – Michael Widdifield – 14315 Sorrel Way– PID 15-116-22-33-0059 MOTION: Canakes moved, seconded by Lawver, in Appeal No. 170, PID 15- 116-22-33-0059, to affirm the value of $281,700 with no change. Motion carried 5-0. Appeal 171 – Michael Widdifield – 15871 Porchlight La– PID 28-116-22-23-0021 MOTION: Canakes moved, seconded by Moquist, in Appeal No. 171, PID 28-116-22-23-0021, to affirm the value of $418,900 with no change. Motion carried 5-0. Appeal 175 – Andres Permadhi – 9406 Marshall Rd– PID 30-116-22-11-0085 MOTION: Canakes moved, seconded by Moquist in Appeal No. 175, PID 30-116-22-11-0085, to affirm the value of $288,400 with no change. Motion carried 5-0. Appeal 180 – Benjamin Bay – 10370 Greyfield Ct– PID 35-116-22-21-0065 MOTION: Rial moved, seconded by Nate Thompson, in Appeal No. 180, PID 35-116-22-21-0065, to reduce the value to $375,000. Motion carried 5-0. Appeal 182 – Barry Pearson – 10754 Fieldcrest Rd– PID 13-116-22-34-0029 MOTION: Canakes moved, seconded by Nate Thompson in Appeal No. 182, PID 13-116-22-34-0029, to reduce the value to $375,000. Motion carried 5-0. Appeal 186 – Brian Grundhofer – 16061 Alpine Way– PID 08-116-22-11-0039 MOTION: Rial moved, seconded by Canakes, in Appeal No. 186, PID 08-116-22-11-0039, to reduce the value to $453,000. Motion carried 5-0. Appeal 194 – Myron Peters – 8237 Hiawatha Cir– PID 16-116-22-41-0016 MOTION: Canakes moved, seconded by Moquist in Appeal No. 194, PID 16-116-22-41-0016, to affirm the value of $403,100 with no change. Motion carried 5-0. Appeal 198 – Srikanth Paltherv – 9769 Gable Dr– PID 28-116-22-23-0116 MOTION: Rial moved, seconded by Canakes, in Appeal No. 198, PID 28-116- 22-23-0116, to affirm the value of $433,600 with no change. Motion carried 5-0. Appeal 199 – Jeannette Reiland – 12951 Cardinal Creek Rd– PID 03-116-22-41-0047 MOTION: Canakes moved, seconded by Nate Thompson in Appeal No. 199, PID 03-116-22-41-0047, to reduce the value to $565,000. Motion carried 5-0. Appeal 207 – Eveline Rojas – 8385 Mitchell Rd– PID 15-116-22-32-0058 There was an agreement on this property. MOTION: Canakes moved, seconded by Moquist in Appeal No. 207, PID 15-116-22-32-0058, to reduce the value to $245,000. Motion carried 5-0. Appeal 208 – Wendy Meath-Nelson – 6462 Grand View Drive – PID 05-116-22-23-0052 MOTION: Canakes moved, seconded by Moquist in Appeal No. 208, PID 05-116-22-23-0052, to reduce the value to $390,000. Motion carried 5-0. Appeal 209 – Gary Svoboda – 8636 Windward Cir – PID 23-116-22-11-0073 There was an agreement on this property. MOTION: Canakes moved, seconded by Nate Thompson in Appeal No. 209, PID 23-116-22-11-0073, to reduce the value to $380,000. Motion carried 5-0. Appeal 211 – Heather Beaton – 9983 Dunberry Cir – PID 25-116-22-42-0120 MOTION: Canakes moved, seconded by Moquist in Appeal No. 211, PID 25- 116-22-42-0120, to affirm the value of $523,700 with no change. Motion carried 5-0. Appeal 212 – John Eglseder – 17681 Ascot Ct – 18-116-22-11-0059 MOTION: Rial moved, seconded by Canakes in Appeal No. 212, PID 18-116- 22-11-0059, to affirm the value of $679,500 with no change. Motion carried 5-0. Appeal 213 – Thomas Kerber – 18507 Farmstead Cir – PID 30-116-22-31-0049 There was an agreement on this property. MOTION: Canakes moved, seconded by Moquist in Appeal No. 213, PID 30-116-22-31-0049, to reduce the value to $550,000. Motion carried 5-0. Appeal 215 – Stephen Leenay – 16243 Graben Ct – PID 05-116-22-14-0029 MOTION: Nate Thompson moved, seconded by Rial in Appeal No. 215, PID 05-116-22-14-0029, to reduce the value to $635,000. Motion carried 5-0. Appeal 216 – Laura Korn – 7635 Carnelian La – PID 08-116-22-34-0020 MOTION: Canakes moved, seconded by Moquist in Appeal No. 216, PID 08-116-22-34-0020, to affirm the value of $400,400 with no change. Motion carried 5-0. Appeal 218 – Erika Wehmhoff – 7550 Atherton Way – PID 08-116-22-32-0066 MOTION: Nate Thompson moved, seconded by Moquist in Appeal No. 218, PID 08-116-22-32-0066, to affirm the value of $424,200 with no change. Motion carried 5-0. Parcels 77A through M were moved to Section B due to agreements made between the owner and staff. Appeal 79 – MMP PropCo LLC – 11576 Leona Road – PID 14-116-22-11-0050 – $5,247,900. MOTION: Canakes moved, seconded by Moquist to affirm the assessor value with no change. Motion carried 5-0. Appeal 80 – MMP PropCo LLC – 11552 Leona Road – PID 14-116-22-11-0051 – $6,312,900. MOTION: Canakes moved, seconded by Moquist to affirm the assessor value with no change. Motion carried 5-0. Appeal 81 – MDC Coast 20, LLC – 11200 Prairie Lakes Dr – PID 14-116-22-41-0009 – $3,050,000. MOTION: Canakes moved, seconded by Lawver to affirm the assessor value with no change. Motion carried 5-0. Appeal 82 – EP Ventures LLC – 8301 Flying Cloud Dr – PID 14-116-22-42-0003 – $27,483,000. MOTION: Canakes moved, seconded by Moquist to affirm the assessor value with no change. Motion carried 5-0. Appeal 83A – MTS Systems Corp. – 14000 Technology Dr – PID 15-116-22-22-0011 – $17,743,000. MOTION: Canakes moved, seconded by Moquist to affirm the assessor value with no change. Motion carried 5-0. Appeal 83B – MTS Systems Corp – PID 15-116-22-21-0005 – $3,287,000. MOTION: Canakes moved, seconded by Moquist to affirm the assessor value with no change. Motion carried 5-0. Appeal 190 – Duchossois Milestone R. E. – 6436 City West Pkwy– PID 01-116- 22-24-0052 There was an agreement on this property. MOTION: Canakes moved, seconded by Lawver in Appeal No. 190, PID 01- 116-22-24-0052, to reduce the value of $6,100,000. Motion carried 5-0. Appeal 202 – Holiday Stationstores, Inc. – 7447 Eden Prairie Rd – PID 08-116-22-41-0057 – $1,070,000. MOTION: Canakes moved, seconded by Moquist to affirm the assessor value with no change. Motion carried 5-0. Appeal 203 – Flying Red Horse LLC – 8051 Flying Cloud Dr – PID 14-116-22-13-0015 – $2,110,000. MOTION: Canakes moved, seconded by Moquist to affirm the assessor value with no change. Motion carried 5-0. Appeal 204 – BRE/HV P Portfolio LLC – 11905 Technology Dr – PID 14-116-22-12-0024 – $3,765,400. MOTION: Canakes moved, seconded by Moquist to affirm the assessor value with no change. Motion carried 5-0. Appeal 205 – BRE/ESA P Portfolio LLC – 7550 Office Ridge Cir – PID 11- 116-22-42-0044 – $4,028,000. MOTION: Canakes moved, seconded by Moquist to affirm the assessor value with no change. Motion carried 5-0. Appeal 206 – MSP SW Acquisition LLC – 7100 Shady Oak Rd – 12-116-22-12-0004 – $9,557,000. MOTION: Canakes moved, seconded by Moquist to affirm the assessor value with no change. Motion carried 5-0. Appeal 217 – Eden Prairie Senior Living – 8480 Franlo Rd– PID 14-116-22-34-0117, $30,000,000. MOTION: Canakes moved, seconded by Moquist to affirm the assessor value with no change. Motion carried 5-0. B. REVIEW APPEALS IN SECTION B AS LISTED ON THE APRIL 21, 2022 BOAE LIST AND STATUS OF APPEALS – APPEALS REVIEWED BY STAFF WITH AGREEMENT BETWEEN OWNER AND ASSESSING STAFF The following appeals were read into the meeting by PID or address, to be reduced to or affirmed with no change to the value, as agreed to between the property owner and Assessing staff. Appeal 77A – Tennant Company – 10200 Clean St– PID 13-116-22-13-0005 – no change at $4,910,000. Appeal 77B – Tennant Company – PID 13-116-22-23-0003 – no change at $13,000. Appeal 77C – Tennant Company – PID 13-116-22-23-0009 – no change at $3,000. Appeal 77D – Tennant Company – 10400 Clean St– PID 13-116-22-24-0012 – reduce value to $12,726,000. Appeal 77E – Tennant Company – PID 13-116-22-24-0013 – no change at $332,000. Appeal 77F – Tennant Company – PID 13-116-22-24-0014 – no change at $914,000. Appeal 77G – Tennant Company – PID 13-116-22-24-0019 – no change at $364,000. Appeal 77H – Tennant Company – PID 13-116-22-24-0020 – no change at $42,000. Appeal 77I – Tennant Company – PID 13-116-22-24-0021 – no change at $37,000. Appeal 77J – Tennant Company – PID 13-116-22-24-0022 – no change at $20,000. Appeal 77K – Tennant Company – PID 13-116-22-24-0023 – no change at $33,000. Appeal 77L – Tennant Company – PID 13-116-22-24-0024 – no change at $367,000. Appeal 77M – Tennant Company – 10600 Clean St– PID 13-116-22-24-0029 – no change at $2,739,000. Appeal 121 – Robert Schein – 6382 Ginger Dr– PID 05-116-22-11-0034 – reduce value to $680,000. Appeal 125 – Sandra J. Peterson – 18694 Harrogate Dr– PID 06-116-22-31-0030 – reduce value to $390,000. Appeal 126 – Randall Pezon – 7134 Emerald La– PID 07-116-22-11-0046 – $515,000. Appeal 135 – Deborah Germscheid – 18798 The Pines– PID 30-116-22-23-0009 – reduce value to $435,000. Appeal 177 – Hariprasad Shetty – PID 36-116-22-41-0011 – $25,500 Appeal 178 – Renee Foster – 18341 Nicklaus Way– PID 19-116-22-13-0017 – reduce value to $1,600,000. Appeal 181 – Liliana Rancone – 19008 Broadmoore Dr– PID 06-116-22-23-0077 – reduce value to $480,000. Appeal 183 – Angela Novitzke – 6951 Ticonderoga Tr– PID 06-116-22-43-0019 – reduce value to $330,000. Appeal 184 – Judith Bergren – 11117 Hyland Ter – PID 13-116-22-33-0077 – reduce value to $310,000. Appeal 187 – Adam Zepeda – 16741 Thatcher Rd– PID 20-116-22-12-0090 – reduce value to $568,500. Appeal 189 – Kathryn Smith – 6811 Kingston Dr– PID 03-116-22-33-0035 – reduce value to $470,000. Appeal 192 – Eileen Kuhry – 9138 Fox Run Cir– PID 24-116-22-31-0105 – reduce value to $530,000. Appeal 193 – Steven Witz – 11177 Holland Cir– PID 36-116-22-23-0032 – reduce value to $771,800. Appeal 195 – Larry MacNabb – 15597 Canyon Ridge– PID 16-116-22-31-0072 – reduce value to $445,000. Appeal 196 – Donald Haberman – 9730 Sky La– PID 29-116-22-24-0053 – reduce value to $1,200,000. Appeal 197 – Chris Allen – 8416 Savannah Chace– PID 16-116-22-43-0071 – reduce value to $500,000. Appeal 200 – Amanda Dover – 11860 Riverview Rd– PID 35-116-22-13-0020 – reduce value to $410,000. Appeal 201 – William Dunn – 6340 Duck Lake Rd– PID 05-116-22-22-0012 – reduce value to $380,000. Appeal 56 – Laurie Gilk – 6635 Leesborough Ave– PID 03-116-22-32-0011 – reduce value to $375,000. MOTION: Canakes moved, seconded by Rial for the preceding appeals, to affirm the actions agreed to by the owner and by staff. Motion carried 4-0. IV. ADJOURN THE 2022 BOARD OF APPEAL AND EQUALIZATION MEETING MOTION: Nate Thompson moved, seconded by Rial to adjourn. Motion carried 5-0. The meeting was recessed at 9:12 p.m.