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HomeMy WebLinkAboutBoard of Appeals and Equalization - 04/11/2024APPROVED MINUTES EDEN PRAIRIE BOARD OF APPEAL AND EQUALIZATION WEDNESDAY, APRIL 11, 2024 BOARD MEMBERS PRESENT: CITY/COUNTY STAFF PRESENT: 7:00 PM-CITY CENTER Council Chambers 8080 Mitchell Road Lyndon Moquist, Chair; Nate Thompson, Vice- Chair; Mark Hoffman, Steve Tessmann, and Scott Werdal City Assessor: Jon Thompson Assessing Supervisor: Dave Buswell Appraiser III: Jim Wise Appraiser II: Alex Oldefendt Appraiser I: Zak Rexford Appraiser I: Callie Saumweber Recorder: Julie Krull Hennepin County Assessor Representative: Melissa Potter I. CALL THE MEETING TO ORDER Chair Moquist called the meeting to order at 7:00 p.m. All Board members introduced themselves and gave a history of work experience, Moquist explained the Board's statutory authority and procedural expectations for the meeting. II. ASSESSMENT INFORMATION FROM CITY ASSESSOR Jon Thompson welcomed the public and introduced Assessing staff. He gave an overview of the assessment laws and procedures, which are guided by statute and adjusted every year as of January 2. 2024 assessed values were based on market sales over a specific time period. A recap of the current Eden Prairie market and a summary of the review process for individual properties was given. The agenda was organized into two sections; first unresolved appeals, and second being appeals with agreements between Assessing staff and the property owner. 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 act on these properties before continuing through the organized agenda. Property owners in attendance were announced and allowed to speak in the order of sign up. III. ORDER OF BUSINESS BOARD OF APPEAL AND EQUALIZATION MINUTES April 11, 2024 Page 2 A. APPEALS IN SECTION A AS LISTED ON THE APRIL 11, 2024 AGENDA - UNRESOLVED Appeal A03 – Muneshwar Babulal – 17148 Rogers Rd – PID 20-116-22-31-0074 Babulal stated he was here tonight to dispute his property value as he was here last year but did not receive good news from the Board. He pointed out the homes around him are nicer and have more square footage and feels he is getting valued the same as their homes. He said he has a shed that was calculated as 17’ by 12’ and pointed out that was incorrect. He also said he has a slab of concrete and asked if that was considered a patio. He explained that his basement has an unfinished area and there are many repairs that need to be done, such as; a new furnace, air conditioner, water heater, roof and windows and if all of these items were replaced he stated he would not make any money off the selling price based off of the estimated market value of $534,000. Babulal would like to see his home valued at $524,000. Werdal requested to see the appraisal grid. Jon Thompson stated that they look at home sales that are comparable to the owner’s subject and most comparable sales were located within the neighborhood. Werdal said he understands they are not full appraisal reports in regard to comparison but stated sale 2 required the least amount of adjustment for comparison, and the improvements should be taken into consideration, but he will defer to the board for their experience valuing residential property. Moquist felt the list sales were similar, and Tessmann pointed out the deferred maintenance is comparable for a lot of the homes. He went on to say the house is safe and in sound condition and situated in a nice neighborhood and would have no problem selling at the current market value. Nate Thompson asked for staff appraiser input on the property condition. Saumweber gave a summary of property characteristics, noting no significant deferred maintenance was observed. Mechanical systems appeared original but were functional at time of inspection. MOTION: Tessmann moved, seconded by Nate Thompson, on Appeal No. A03, PID 20- 116-22-31-0074, to affirm the value of $534,400. Motion carried 5-0. Appeal A04 – Mark & Sharyl Kalal – 7843 Donegal Cove – PID 18-116-22-11-0023 Sharyl Kalal stated their property is valued on the high side and shared they have received an independent appraisal two hours prior to the meeting. The homeowners passed out copies of the appraisal to the board members. Sharyl Kalal said they have looked at other comparable homes that have better amenities than their home and it appears they were priced lower than theirs. She also said their home needs interior updating. The homeowner did not give an opinion on their home value. Moquist asked if there were any interior photos of the home and if there had been any renovations. Tessman noted that the appraisal report provided by the homeowners contained interior photos. Mark Kalal said they have just done general maintenance and the replacement of windows. Jim Wise stated he was notified of the appraisal report just prior to the meeting, and did not have time to review the owners’ appraisal. Wise previously shared his analysis with the owners. Moquist said he looked at homes in the area that were updated and were appraised a little more. He also pointed out that homes have been flat BOARD OF APPEAL AND EQUALIZATION MINUTES April 11, 2024 Page 3 this year. Nate Thompson said the board should take into account the road noise. Hoffman asked if the independent appraisers took into account road noise and deferred maintenance. Mark Kalal responded he believes they did take those items into account. Tessmann pointed out the City’s #1 comparison is the same as the independent contractor’s appraisal. Moquist said the comparisons appear to have had updates and appear to be located in a better part of the neighborhood. He said he would be in favor of reducing the value to $650,000. MOTION: Tessmann moved, seconded by Nate Thompson on Appeal No. A04, PID 18- 116-22-11-0023, to reduce the value from $678,000 to $650,000. Motion carried 5-0. Appeal A05 – Roman Loy – 11303 Entrevaux Dr. – PID 26-116-22-14-0041 Loy shared that his home was last appraised in 2020 and also said he felt he overpaid for it when he purchased it on 6/15/2021 for $780,000. He also felt comparable sales 1 and 5 from the Assessor review were more in line with his property. In regard to comparable sale 4, it is located on a much nicer lot, that is 3 times his size and in a cul-de-sac. He also pointed out his home is a rambler and feels they are harder to sell, plus many items need updating and is requesting it be valued at $725,000. Loy stated that comparable sales 1 and 5 were in similar condition to his property. Moquist noted comparable sale 1 is an older property, and Loy’s house is in the newer part of the development. Hoffman said he does not feel the prices have dropped since the homeowner purchased his home, and noted Loy’s recent purchase price is relevant to the current assessed value, and that all sales provided sold for a price over $800,000. Moquist commented properties have most likely have increased by 10 percent since Loy’s purchase. Nate Thompson recused himself because he is a neighbor. Moquist commented there is a high demand for this style of house and felt the value is fair. MOTION: Hoffman moved, seconded by Werdal on Appeal No. A05, PID 26- 116-22- 14-0041, affirm value to $797,300. Motion carried 4-0-1. Appeal A23 – Catalin & Daniela Petrescu – 9188 Shetland Rd. – PID 20-116-22- 43-0042 Daniela Petrescu said they are appealing the current assessed value because they have no privacy in their backyard, and they are also very close to the airport and experience airport noise. She said they have been compared to other properties in the neighborhood that were recently sold that had major improvements and situated on a more desirable lot versus their property that needs many replacements including windows, water heater, air conditioner, carpet, appliances and a rotten deck. Daniela Petrescu said they would like the value to remain the same as last year, which was $727,900 and to not increase the value by 4% for 2025. Jon Thompson clarified that the first point of contact with the Assessor’s Office was today. The Assessor’s Office would recommend sustaining the assessed value and would work with the homeowner to schedule a property inspection and complete a review prior to the County Board. Moquist commented differences in the lots within the neighborhood should be taken into account and adjusted for in the Assessor’s review. BOARD OF APPEAL AND EQUALIZATION MINUTES April 11, 2024 Page 4 MOTION: Tessmann, seconded by Thompson, on Appeal No. A23, PID 20-116- 22-43- 0042, to affirm the value of $756,900. Motion carried 5-0. Appeal A01 – Jim Cao & Han Yang – 8079 Spruce Tr. – PID 18-116-22-24-0091 The current assessed value is $660,300, the owner's opinion is $641,200. Assessor's recommendation is no change. Jon Thompson clarified a staff review was complete and provided as part of the agenda materials. Moquist commented on the property’s location within the neighborhood, and difference in sale prices throughout the neighborhood. Additional discussion of neighborhood sales and information provided in the owner’s application and Assessor review. Nate Thompson commented the realtor information provided by the property owner supported a sale price above the owner’s opinion. MOTION: Tessmann moved, seconded by Nate Thompson on Appeal No. A01, PID 18- 116-22-24-0091, to affirm the value of $660,300. Motion carried 5-0. Appeal A02 – Audrey Guajardo – 6900 Rosemary Rd. – PID 03-116-22-34-0015 The current assessed value is $445,700, owner's opinion is $430,000. Assessor's recommendation is to sustain until an inspection of the home can be made. Jon Thompson explained to the board that the homeowner would not agree to a property inspection. Board discussion on recent sale price for the property. MOTION: Tessmann moved, seconded by Nate Thompson, on Appeal No. A02, PID 03-116-22-34-0015, to affirm the value of $445,700. Motion carried 5-0. Appeal A06- Withdrew appeal. Appeal A07 – Janis Sicard – 7280 Green Ridge Dr. – PID 07-116-22-23-0019 The current assessed value is $395,400, owner's opinion is $290,000. Assessor's recommendation is to sustain until an inspection of the home can be made. Jon Thompson explained to the board that they were unable to inspect the property before but have communicated to the property owner a review will be completed after an inspection is scheduled. MOTION: Tessmann moved, seconded by Nate Thompson on Appeal No. A07, PID 07- 116-22-23-0019, to affirm the value of $395,400. Motion carried 5-0. Appeal A08- Withdrew appeal. Appeal A11 – Bonita Buckley – 10317 Nottingham Tr. – PID 25-116-22-13-0072 The current assessed value $385,900, owners' opinion is between $285,000 - $300,000. Assessor’s recommendation is no change. BOARD OF APPEAL AND EQUALIZATION MINUTES April 11, 2024 Page 5 Hoffman recused himself due to living in the neighborhood. Nate Thompson requested detail to the interior of the property. Zak Rexford said he completed the review, and the home was in fair condition. There is a portion on the second floor that is unfinished, the total area above ground includes unfinished area, which was adjusted for in the value analysis. He commented the home is livable but would need a lot of work to resell it. Nate Thompson said he would consider a value of $375,000 considering the condition of the property. MOTION: Tessmann moved, seconded by Nate Thompson on Appeal No. A11, PID 25- 116-22-13-0072, to reduce the value of $375,000. Motion carried 4-0-1. Appeal A21 – Chitham & Kavitha Reddy – 16651 Reeder Ridge – PID 29-116-22- 43-0033 The current assessed value $1,063,800, owners' opinion is $850,000. Assessor's recommendation is $1,035,000. Jon Thompson said that he reviewed the property and selected 5 comparable sales that were built by the same builder in the same neighborhood. The subject has seasonal views of the MN River Valley. Board discussion on differences between lots and views within neighborhood. Tessmann commented to the house next door which sold for $1,300,000. MOTION: Tessmann moved, seconded by Nate Thompson on Appeal No. A21, PID 29- 116-22-43-0033, to reduce the value from $1,063,800 to $1,035,000. Motion carried 5-0. Appeal A24 – Daniel & Olga Garry – 9269 Shetland Rd. – PID 20-116-22-43-0025 The current assessed value is $694,900, the owner's opinion is $500,000. Assessor's recommendation is no change. MOTION: Tessmann moved, seconded by Thompson on Appeal No. A24, PID 20-116- 22-43-0025, to affirm the value of $694,900. Motion carried 5-0. Appeal A18 – Holiday Station Stores, Inc. – 7447 Eden Prairie Rd. – PID 08-116-22-41- 0057 The current assessed value is $1,131,000, the owner's opinion is $510,765. Assessor's recommendation is to sustain the value until an inspection of the property can be completed. Jon Thompson said an inspection has been requested for this property. MOTION: Tessmann moved, seconded by Hoffman on Appeal No. A18, PID 08-116-22- 41-0057, to affirm the value of $1,131,000. Motion carried 5-0. Appeal A19 – Flying Red Horse – 8051 Flying Cloud Dr. – PID 14-116-22-13-0015 The current assessed value is $2,190,000, the owner's opinion is $1,600,409. BOARD OF APPEAL AND EQUALIZATION MINUTES April 11, 2024 Page 6 Assessor's recommendation is to sustain the value until an inspection of the property can be completed. MOTION: Tessmann moved, seconded by Hoffman on Appeal No. A19, PID 14-116-22- 13-0015, to affirm the value of $2,190,000. Motion carried 5-0. B. APPEALS IN SECTION B AS LISTED ON THE APRIL 11, 2024 AGENDA - REVIEWED BY STAFF WITH AGREEMENT BETWEEN OWNER AND ASSESSING STAFF Jon Thompson clarified procedural motions for appeals with agreements between assessing staff and the property owner, all resulted in reductions to the assessed value. The following appeals were read into the meeting by address, to be reduced from the original assessed value to the revised value agreed between the property owner and Assessing staff. Appeal B01 – Mary Nyberg – 17691 Inverness Curve – PID 18-116-22-41-0053 – reduce value from $692,300 to $660,000. Appeal A17 – William Satterness – 8597 Red Oak Dr. – PID 16-116-22-33-0014 – reduce value from $773,000 to $765,000. Appeal A22 – Samuel Johnson – 6499 Mere Dr. – PID 05-116-22-14-0026 – reduce value from $531,500 to $410,000. Appeal A09 – Jaimi & Ryan Lane – 18310 Nicklaus Way – PID 19-116-22-13-0010 – reduce value from $1,631,000 to $1,600,000. Appeal A10 – Jacqueline & Christopher Cortilet – 16752 Whittington Walk – PID 05-116-22-12-0007 – reduce value from $632,700 to $547,800. Appeal A20 – Paul & Jean Ekholm – 17164 Round Lake Rd. – PID 08-116-22- 31-0016 – reduce value from $535,000 to $510,000. Appeal A14 – Huaqing Yin – 15284 Boulder Pointe Rd. – PID 21-116-22-12- 0048 – reduce value from $1,257,100 to $1,155,000. Appeal A12 – Joseph Swanson – 10425 Purdey Rd. – PID 36-116-22-24-0012 - reduce value from $805,000 to $785,000. MOTION: Tessmann moved, seconded by Hoffman, to approve the Appeals listed in Section B where all property values were reduced. Motion carried 5-0. IV. ADJOURN THE 2024 BOARD OF APPEAL AND EQUALIZATION MEETING MOTION: Moquist moved, seconded by Hoffman to adjourn the meeting. Motion carried 5-0. The meeting was adjourned at 8:37 p.m.