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HomeMy WebLinkAboutBoard of Appeals and Equalization - 04/17/2017APPROVED MINUTES EDEN PRAIRIE BOARD OF APPEAL AND EQUALIZATION MONDAY, APRIL 17, 2017 7:00 P.M., CITY CENTER Council Chambers 8080 Mitchell Road BOARD MEMBERS PRESENT: Lyndon Moquist, Chair; Annette O’Connor, Vice-Chair; Kristin Rial, Nate Thompson, and Todd Walker BOARD MEMBERS ABSENT: None CITY STAFF PRESENT: City Assessor John Sams. Staff Appraisers: Jody Carlson, Dave Buswell, Jessica Pike, Adam Swart, and Jon Thompson. Hennepin County Assessor’s Representative Earl Zent. Assessing Technician Lisa Ramsey and Recording Secretary Jan Curielli. I. CALL MEETING TO ORDER The meeting was called to order by Chair Moquist at 7:00 p.m. II. PROCEDURAL INFORMATION BY JOHN SAMS The Board members introduced themselves., City Assessor Sams introduced the staff members present and explained the Board of Appeal & Equalization is a process that is required by State statute. He said any appeals not completed this evening will be completed at a second meeting not more than twenty days later. The decision of the Board can be appealed to the County Board of Equalization. III. ORDER OF BUSINESS A. REVIEW APPEALS #1 THROUGH #27 AS LISTED ON THE APRIL 17, 2017 BOAE LIST AND STATUS OF APPEALS Appeal #1 – Jerome Buechler, 6900 Stonewood Ct Sams said staff is working on the review appraisal and would like time to get back to the property owner when they are finished. MOTION: Walker moved, seconded by O’Connor, in Appeal No. 1 to continue this appeal to the May 4 meeting. Motion carried 5-0. BOARD OF APPEAL AND EQUALIZATION MINUTES April 17, 2017 Page 2 Appeal #2 – Ullas Kamath, 7017 Beacon Cir Sams said the owner dropped this appeal today, so there is no action to be taken by the Board. Appeal #3 – Janis Sicard, 7280 Green Ridge Dr Sams said staff has requested an inspection, but a time has not yet been set up. He noted the Board cannot make a change that benefits the property owner if staff does not have the opportunity to inspect the home. MOTION: O’Connor moved, seconded by Thompson, in Appeal No. 3 to continue this appeal to the May 4 meeting. Motion carried 5-0. NOTE: Following Appeal #8 later in the meeting, Ms Janis Sicard spoke to the Board; however, the decision to continue the appeal to May 4 was not changed. Appeal #4 – Erik Beall, 18865 Pheasant Cir Sams said last Friday the owner and staff agreed on a reduction in value to $340,000. MOTION: O’Connor moved, seconded by Rial, in Appeal No. 4 to reduce the value to $340,000. Motion carried 5-0. Appeal #5 – Donald & Nina Geyen, 7089 Howard La Sams said staff is working on the review appraisal and would like this appeal to be continued to allow time to complete the review. MOTION: O’Connor moved, seconded by Thompson, in Appeal No. 5 to continue this appeal to the May 4 meeting. Motion carried 5-0. Appeal #6 – James Griffith Jr., 7027 Donlea La James Griffith, Jr., 7027 Donlea La, said he disagreed with the 2017 value. He said he purchased the home in 2008 for $462,500. The comparable properties included in the staff review are located two to three miles away from his home. In addition, his home is located much closer to Hwy 494 than are those comparables. He provided information about four comparable properties he had found in his area. O’Connor commented the property has a nice lot, and she believed the lot would be worth something to some buyers. Mr. Griffith said the lot is secluded, but half of it has a 30% grade that drops down towards the Nine Mile Creek watershed. He said a neighbor had his home on the market for 12 months before selling it. BOARD OF APPEAL AND EQUALIZATION MINUTES April 17, 2017 Page 3 Sams noted the home appears to have a three-car garage, but it is actually an oversized two car garage because of the way it is situated. He said staff took that into consideration in their recommendation to reduce the value to $495,000. Mr. Griffith’s comparable used by Mr. Griffith at 7022 Donlea Lane sold in May of 2015, and two of Mr. Griffith’s four comparables are older ramblers located on Topview. He noted part of staff’s process is to find comparable homes that are similar to the home being appraised. In order to do that, staff went outside the neighborhood because there wasn’t a recent sale of a two story home in Griffith’s neighborhood. Staff found six comparables and made adjustments to reach their recommendation to reduce the value to $495,000. He noted they put the most weight on Comparable No. 1, which is a similar home located next to County Road 4. Moquist asked if there are any comparable home sales on Donlea Lane. Sams replied there are no recent sales. O’Connor asked about the square footage of the home. Sams replied it is 2273 square feet above ground, and the lower level is 1175. O’Connor asked if the best comparable would be Mr. Griffith’s comparable at 7022 Donlea Lane. Sams said that is outside of our typical sales range because it sold in May of 2015 for $489,000. O’Connor noted it had more square footage. Sams said that was correct, and noted the new home owner agreed to a 2017 value of $548,00. Mr. Griffith said he believed the value of his home was closer to $400,000 for the above-grade portion of the house. Sams noted there are three bedrooms on the top floor with two baths, and the other bedroom is in the basement. Moquist asked if staff took that into account because he believed that makes a difference, and the other comparables had four bedrooms above ground. Sams replied they did take that into account and adjusted on the square footage. Walker said the total finished area is approximately 3300-3400 square feet. The rate for some of the comparables was $139 per square foot, which would make this home’s value about $495,000. He thought that was a fair value. Sams noted staff’s comparables 1, 4, and 5 have four bedrooms up with values that range from $508,800 to $480,300. Rial said the home has a great back lot; however, the home is surrounded by older homes in that neighborhood. She asked about the house next door. Moquist said that is a very different type of house. O’Connor said the year 2008 when the home was purchased was kind of a transition year, and we had not yet felt the downturn a lot. Walker noted 2007 and 2008 were at the peak, and the recovery started in 2012. BOARD OF APPEAL AND EQUALIZATION MINUTES April 17, 2017 Page 4 Thompson said using $138 per square feet would put the home at $479,000. MOTION: O’Connor moved, seconded by Thompson, in Appeal No. 6 to reduce the value to $479,000. Motion carried 5-0. Appeal #7 – Bernardi Family Ltd Ptns, 9531 78th St W Moquist noted staff recommends reducing the value to $3,100,000. MOTION: O’Connor moved, seconded by Walker, in Appeal No. 7 to reduce the value to $3,100,000. Motion carried 5-0. Appeal #8 – Steven & Michele Kuebler, 17682 Steading Rd Sams said the owner received our review appraisal, and they disagree with the number. He said the review supports the 2017 value, and staff asks the Board to affirm that value. Moquist noted there is one very good comparable on Steading Road. Sams said there are six different comparables in the neighborhood. Moquist said it is a modified two story, and asked if staff accounted for that versus a traditional two story. Sams replied they tried to find more comparables like the property, and Comparable 1 is a modified two story. Jon Thompson noted the home was not extensively updated, but it was well- maintained. Moquist asked if there are interior photos available of Comparable 1. Sams said interior photos are not available for comparables. Nate Thompson asked about the floors in the home. Jon Thompson replied most of the home has hardwood floors. It also has the original ceramic tile, a step-down family room, a three-car garage, and a screened porch off the family room. Nate Thompson commented the $440,000 range would be his opinion of the value. O’Connor said she would be comfortable with a value of $460,000. MOTION: Rial moved, seconded by Walker, in Appeal No. 8 to reduce the value to $460,000. Motion carried 5-0. At this point the Board returned to Appeal #3 to allow the homeowner an opportunity to speak to the Board. Appeal #3 – Janis Sicard, 7280 Green Ridge Dr Janis Sicard, 7280 Green Ridge Dr., said she has been in the home since 1981. The house was improperly placed on the lot, and it is almost 40 years old. BOARD OF APPEAL AND EQUALIZATION MINUTES April 17, 2017 Page 5 Moquist asked if she believes the value is no more than $296,000. Ms Sicard said it should be no more than $300,000 because it needs a lot of work. There was a fire in the home, and the reconstruction work was not done well. She did not believe she could get $270,000 for the home. Sams said the home has not been inspected for a number of years. O’Connor said the Board’s hands are tied to give an opinion until Ms Sicard allows the City to inspect the home. Sams said he would be happy to set a time to do the inspection himself so that Ms Sicard could show him the issues with the home. Appeal #9 – Anthony Lando, 10531 Riverview Dr E Moquist asked if an inspection was requested. Sams replied they have not yet been able to schedule the inspection. MOTION: Walker moved, seconded by Rial, in Appeal No. 9 to continue this appeal to the May 4 meeting. Motion carried 5-0. Appeal #10 – Mark Saastad, 12272 Jack Pine Tr Sams said the property was inspected on April 13. Staff realizes the property is in poor condition, although a full appraisal was not done on the property. He noted at $155,200 the comparables would be lot sales. Walker asked if the house is livable. Sams replied the owner is living in it. There is a significant amount of deferred maintenance on the inside. Walker asked if there is any mold or other health condition. Sams said there is none they were told about; however, there were some moisture issues. Moquist asked if homes in that area are valued around $300,000. Sams replied they are $275,00-300,000. There have been some land sales; however, he did not think this home is a tear down. Thompson asked what it would take to get it in shape. Sams replied it would take about $50,000-100,000 to fix it up. MOTION: Rial moved, seconded by Thompson, in Appeal No. 10 to affirm the value at $155,200. Motion carried 5-0. Appeal #11 – Exclusive Aerospace LLC, 14801 Pioneer Tr BOARD OF APPEAL AND EQUALIZATION MINUTES April 17, 2017 Page 6 Ryan Peterson, representing Exclusive Aerospace LLC, said the property has a wide range of buildings that are used for fixed base operations (FBO) at the airport. It is a unique design, and the land is leased from the Metropolitan Airports Commission (MAC). Many of the buildings have been there for quite a while. Moquist asked if all the buildings are functional. Mr. Peterson replied 10,000 square feet are not functional, but the rest of the total square footage of 103,000 is usable. Moquist asked if there is deferred maintenance. Mr. Peterson replied there is none. O’Connor believed we did not compare Flying Cloud Airport property to other airports in previous years. Buswell replied thee properties reviewed by the Board in previous years were used as storage facilities which do not have the right to do fixed base operations as does this property. There have been no reviews of FBOs to use as comparables. Buswell said he used industrial sales to determine the land allocation portion of the value. He noted in the 2014 sale the allocation for the buildings was $2,311,000, and the buyers said new roofs were needed which would cost $800,000. He said they reviewed this property in multiple ways. Industrial sales have a per square foot average of $50-$60. Small hangars have sold in the $50 per square foot range, but those are significantly smaller than this property. Mr. Peterson said the MAC has the right to take part of the building to put in a taxiway, and they are taking hangar space in other parts of the field. O’Connor asked if the MAC compensates for that. Mr. Peterson replied when a lease is up, it is over. Moquist asked about the demand for this type of space. Buswell said in 2011 we reviewed this property which was under the previous owner at that time, and put together a 30-page report. The value was set at $4,700,000; however, the owner thought it was worth $3,600,000. It is a difficult appraisal to put together because we are making a lot of assumptions. Staff has already moved down to $3,300,000 based on looking at a lot of different industrial properties. He noted the property owners do have a right to appeal to the County and to the Tax Court, and they typically do that. O’Connor asked if airport properties generally remain stagnant in terms of demand. Mr. Peterson replied the aviation industry has lagged behind the recovery of the general economy. The whole development of the south parallel runway is available for development, and that does affect the value of the FBO’s at the airport. Buswell noted the C.H. Robinson property at the airport is valued at about $50 per square foot. Walker asked if we would expect greater usage and value from the airport in a healthy and growing economy. Mr. Peterson said Flying Cloud Airport has a fairly BOARD OF APPEAL AND EQUALIZATION MINUTES April 17, 2017 Page 7 short runway and is a small metropolitan airport. Walker noted the airport location within the business community is fairly advantageous. O’Connor asked if the owners agreed with the $3,300,000 value. Mr. Peterson said he would need to speak with his partners about that. Sams said they have recently disagreed with the $3,300,000 value. This might be something we could look into and do an informal review. There may be additional information we can share and come to some resolution. MOTION: Thompson moved, seconded by Walker, in Appeal No. 11 to continue this appeal to the May 4 meeting. Motion carried 5-0. The Board then reviewed Appeals 12 – 25, the recommendations for which were agreed upon by the owner and staff. Those appeals are listed individually below, with recommendations for each appeal; however, all 14 of the appeals are covered by one motion following Appeal #25. Appeal #12 – Ouelette Living Trust, 6608 Flying Cloud Dr Recommendation: Reduce the value to $1,300,000. Appeal #13 – Yue Liu, 6329 St. Johns Dr Recommendation: Reduce the value to $105,000. Appeal #14 – Michael & Kristine Kelly, 6571 Pinnacle Dr Recommendation: Reduce the value to $475,000. O’Connor asked why the value would be reduced down to $475,000 when the estimated market value in January was $631,600. Buswell said the property sold in February for $427,900, and it had significant moisture issues. Appeal #15 – Linda Busklein, 7000 Eden Prairie Rd Recommendation: Reduce the value to $355,000. Thompson asked if there were some issues with this property. Ms Carlson said the property was a rental for six years. Appeal #16 – William Bloomberg, 15303 Trillium Cir Recommendation: Reduce the value to $200,000. Appeal #17 – Brian Lohnes, 15496 Village Wood Dr BOARD OF APPEAL AND EQUALIZATION MINUTES April 17, 2017 Page 8 Recommendation: Reduce the value to $510,000. Appeal #18 – Brian Landwehr, 8429 Savannah Chace Recommendation: Reduce the value to $390,000. Appeal #19 – Charles Engasser, 18218 Bearpath Tr Recommendation: Reduce the value to $895,000. Appeal #20 – Kathleen Swart, 18453 Nicklaus Way Recommendation: Reduce the value to $890,000. O’Connor asked why the property value was being reduced from $1,006,900. Buswell replied it was listed for several months and was sold in November 2016 for $890,000. Appeal #21 – Dean & Kim Swanson, 9061 Breckenridge La Recommendation: Reduce the value to $650,000. Appeal #22 – Gary Nasiedlak, 8964 Hilloway Rd Recommendation: Reduce the value to $460,000. Appeal #23 – Jacob Mirman, 15339 Masons Pointe Recommendation: Reduce the value to $1,065,000. Appeal #24 – Charles Schwen, 18903 Dorenkemper Pl Recommendation: Reduce the value to $340,000. Appeal #25 – Steven Stoick, 11027 Purdey Rd Recommendation: Reduce the value to $469,500. MOTION: O’Connor moved, seconded by Rial, in Appeals 12-25 to reduce the value of the properties as recommended. Motion carried 5-0. Sams noted Appeals 26 and 27 were received after April 14 and have not yet been reviewed by staff. Appeal #26 – Cole PM Eden Prairie, 11200 Prairie Lakes Dr BOARD OF APPEAL AND EQUALIZATION MINUTES April 17, 2017 Page 9 O’Connor asked if this is a stand-alone building. Sams replied it is. MOTION: Thompson moved, seconded by Rial, to continue the appeal to the May 4 meeting. Motion carried 5-0. Appeal #27 – Wayne Bradford as Tax Rep. for Mountain Prairie, LLC, 12160 Technology Dr MOTION: Walker moved, seconded by Rial, to continue the appeal to the May 4 meeting. Motion carried 5-0. B. HEAR OTHER PERSONAL AND WRITTEN APPEALS FROM SIGN-UP LIST Sams said there are no other appeals. C. SCHEDULE NEXT MEETING Sams said the next meeting of the Board of Appeal & Equalization is scheduled for Tuesday, May 4, 2017. D. CLOSE THE BOARD OF APPEAL & EQUALIZATION MEETING TO ADDITIONAL APPEALS IV. CONTINUE THE BOARD OF APPEAL AND EQUALIZATION MEETING MOTION: Thompson moved, seconded by Rial, to close the Board of Appeal & Equalization to additional appeals and to continue the meeting to May 4, 2017. Motion carried 5-0. The meeting was continued at 8:30 p.m.