HomeMy WebLinkAboutCity Council - 05/16/1988 - Board of Review APPROVED MINUTES
CITY OF EDEN PRAIRIE
BOARD OF REVIEW
MONDAY, MAY 16 , 1988 6: 30 PM, COUNCIL CHAMBERS
7600 Executive Drive
BOARD OF REVIEW MEMBERS: President of the Board Gary D.
Peterson , Richard Anderson, George
Bentley, Jean Harris , and Patricia
Pidcock
BOARD OF REVIEW STAFF: City Manager Carl J. Jullie,
Assistant to the City Manager Craig
Dawson, City Assessor Steve Sinell ,
and Recording Secretary Jan Nelson
PLEDGE OF ALLEGIANCE
ROLL CALL: All members were present.
I . RECONVENE BOARD OF REVIEW MEETING
The meeting was called to order by President of the Board Peterson .
II . APPROVAL OF BOARD OF REVIEW MINUTES OF MEETING HELD THURSDAY,
APRIL 28 , 1988
The following addition was made to the Minutes : page 14 ,
Item 1003 -- add PID number 24-116-22 22 0219.
MOTION: Bentley moved , seconded by Anderson, to approve the
Minutes of the Board of Review meeting held Thursday, April 28 ,
1988, as amended and published . Motion carried with Harris
abstaining .
III . REVIEW OF ITEMS CONTINUED FROM APRIL 28, 1988
City Assessor Sinell stated those items referred by the Board
at its April 28th meeting had been reviewed by the City Staff.
In order to expedite matters, Anderson suggested that the Council
consider as one motion those items on which the owners agreed with
the Staff recommendations.
MOTION: Bentley moved, seconded by Pidcock, to sustain the Staff
recommendations for the 1988 Estimated Market Values on the follow-
ing properties :
i
2 . Kay & Arlen Westling - 24-116-22 34 0043 - . $172, 200
6. Thomas L. Swirtz - 05-116-22 14 0042 - $148 , 500
R,
fi
Board of Review Minutes 2 May 16, 1988
9. Paul Welin - 04-116-22 42 0045 - $54, 000
10 . Ronald L. Moeller - 25-116-22 22 0009 - $231,200
22. Lee Lobstein - 03-116-22 34 0015 - $112, 000
23 . Byron & Kristine Anderson - 05-116-22 24 0034 -
$94, 000
24 . Alvin & Mildred Bren - 10-116-22 1.4 0011 - $172, 000
25. James Miller - 23-116-22 23 0020 - $112, 800
36. Eugene Dix - 06-116-22 43 0017 - $89, 200
1004. Linda & Dan MacDonald - 05-116-22 31 0064 - $135, 700
1005. David W. Lee - 24-116-22 34 0019 - $94, 000
1006. Daniel J. Heltness - 24-116-22 34 0020 - $94,000
1012 . Bruce & Ruth Ann Hirmer - 24-116-22 43 0056 - $90,400
24-116-22 43 0057 - $90,400
1013. Elfering Construction - 06-116-22 33 0014 - $147, 000
06-116-22 33 0077 - $71 ,000
06-116-22 33 0078 - $72,000
E
1014 . Thomas & Debra Wilson - 35-116-22 21 0096 - $122, 000
1015. Ronald & Leslie Ezerski - 03-116-22 41 0004 - $257, 900
1016. John & Diane Hockert - 08-116-22 41 0013 - $100,600
1018 . William Diers - '23-116-22 31 0003 - $112, 500
1027. Elton M. Nelson - 08-116-22 41 0033 - $88,400
1028 . Jeff Miller - 04-116-22 43 0047 - $110,300
Mike Flynn noted that he also agreed with the Staff recommendation
for his property.
MOTION: Pidcock moved, seconded by Bentley, to amend the motion to
include Item 28. , Mike Flynn - 05-116-22 31 0016 - $95, 100. Motion
to amend the motion carried unanimously.
i
a
VOTE ON THE MAIN MOTION.: Motion carried unanimously. F
The Council then reviewed each remaining item in turn.
1. Stan Volp - 03-116-22 42 0005 - 13252 Cardinal Creek Road
Mr. Volp asked Mr. Sinell to explain the form. Sinell ex-
plained the review appraisal conducted Dn Mr . Volp's property.
Hoard of Review Minutes 3 May 16 , 1988
r
Volp said he questioned the fairness of the appeal process as
he understood that some residents had their assessments
lowered just by making a phone call to question the amount.
Sinell said there were no reductions based on phone calls and
that review appraisals were conducted on all appellants '
properties.
Bentley said he didn ' t appreciate Mr. Volp' s comments regard-
ing unfair treatment. He said the assessment process is done
very fairly and equitably and the purpose of this meeting is
to consider those cases where errors may have been made. He
said there is nothing in the process that indicates people
just called and got their assessments lowered. He then re-
viewed the process used for the assessment reviews.
Pidcock said she thought it was Mr . Volp's right to describe
his experience and there was no need for the Board members
to engage in a dissertation on thi3 matter .
Peterson asked when the property was physically reviewed .
Sinell responded that it was reviewed November 11, 1987 .
MOTION: Anderson moved, seconded by Bentley, to sustain the
1988 Estimated Market Value on the Volp property,
PID 03-116-22 42 0005, at $260 , 800. Motion carried unani-
mously. ;
4
3. Mary Jane Swanson - 29-116-22 11 0001 (Primary)
29-116-22 12 0007 (Secondary)
S
Ms. Swanson was not at the meeting .
Sinell said it was a difficult appraisal because there were
no good comparable properties; however the comparables used
were very close in many respects. He noted that the second
property is still a legal buildable site.
MOTION: Bentley moved , seconded by Anderson, to sustain the
original 1988 Estimated Market Value on the Swanson proper-
ties , PID 29-116-22 11 0001 at $200,400 and PID 29-116-22
12 0007 at $41, 900. Motion carried unanimously.
4 . Richard & Karen Fyock - 03-116-22 41 0005 - 13188 Cardinal
Creek Road
Mrs. Fyock asked if the appraisal was determined strictly
on sales in 1987. Sinell said the -assessor found three
properties that were most comparable to their home that
had sold and adjusted for the differences in those compar-
ables.
Sinell asked Mrs. Fyock what their opinion of the value is.
Mrs. Fyock said the property value has not gone up any since
they purchased it. She said they would not have paid as much
oi.
Board of Review Minutes 4 May 16 , 1988
for their home had they known about the market value in the
neighborhood and the tax structure .
Mrs. Fyock asked if homes that have not sold increase in
value . Sineli said all the properties in Cardinal Creek were
appraised for January 1988. Mrs. Fyock said another property
in their neighborhood sold for $280, 099 in December , 1987, and
that was appraised at $267, 000 and had the same square footage
as their home .
Peterson asked if they were saying that their house is not
worth $283, 700. Mrs. Fyock said that no one is going to buy
it when there is such a steep rate of increase in the
appraisal values.
Bentley noted that the recommended value is less than the
amount they paid for the property.
Mr. Fyock said other properties in the same cul-de-sac have
not increased . Sinell said each property is considered on z
its own basis when a property is revalued .
MOTION: Pidcock moved to reduce the 1988 Estimated Market
Value on the Fyock property, PID 03-116-22 41 0005 to
$270, 000.
Pidcock said there was a pretty convincing case that there
were some comparables not used that were right next door to
them. She said she knew from first-hand knowledge that
Cardinal Creek properties have not been selling at what
they previously sold for; therefore she thought that amount
would be fair .
Harris said she didn 't think we know what the fair market
value is and she didn ' t feel prepared to set a value tonight.
MOTION DIED FOR LACK OF A SECOND.
MOTION: Anderson moved to set the 1988 Estimated Market
Value on the Fyock property, PID 03-116-22 41 0005 at
$285, 000 .
Pidcock noted the original EMV was $283,700..
ANDERSON WITHDREW THE MOTION.
MOTION: Harris moved, seconded by Anderson, to reduce the
1988 Estimated Market Value on the Fyock property,
PID 03-116-22 41 0005 to $277, 000 .
Harris said this splits the difference between $283, 700 and
$270, 000 .
VOTE ON THE MOTION: Motion carried unanimously.
Board of Review Minutes 5 May 16, 1988
5. Chi Won Sohn - 23-116-22 21 0020 - 8735 Darnel Road
Mr . Sohn was not present at the meeting .
MOTION: Pidcock moved, seconded by Anderson, to sustain the
1988 Estimated Market Value on the Sohn property, PID 23-116-
22 21 0020 at $109,600. Motion carried unanimously.
12. Timothy Dunphy - 05-116-22 33 0031 - 17300 Peterborg Road
Mr . Dunphy was not present at the meeting .
MOTION: Harris moved , seconded by Pidcock, to reduce the
1988 Estimated Market Value on the Dunphy property, PID
0 5-116-22 33 0031 to $104, 700. Motion carried unanimously.
14 . Raymond Rice - 17-116-22 24 0015 - 8010 Island Road
Mr . Rice distributed some additional data regarding his
review appraisal . He said his home was 73% completed on
December 31, 1986 while the assessor says it was 62% com-
pleted at that time . He said he protested the use of
comparables from Olympic Hills as he did not think his area
(Timber Lakes) was comparable to that area .
Anderson asked if the property was on lakeshore and, if it
was, how many of the homes Mr. Rice used as comparables
are on lakeshore. Rice said one of the homes down from him
is on lakeshore and has been on the market for about a year .
He said another one that is on the lakeshore is also not
selling.
Anderson then asked if he was on the wooded point . Rice said
he was on the south side of the point. Anderson asked if Mr .
Rice thought that was not a unique lot that would raise the
value of his property. Rice said he could not deny that it
was a beautiful lot. Rice said his point was that the house
was 73% complete, not 62% at the time of the original valua-
tion . He said he would estimate the home was worth around
$3 00, 000.
Bentley asked if he had paid $316, 000 for the lot and proper-
ty. Rice said the actual cost of the package was $300 , 000
but he would stand by $316, 000.
Based on the area and the location of the house, Bentley said
he thought of the house, property values have appreciated
since Mr. Rice moved in . He said he had added an amount of
increase to arrive.. at a figure in the $325,000 range. He said
he would like to have seen some comparables that were somewhat
closer to the affected property.
Rice said the highest sale in Weston Bay was $2200000; how-
ever , the Board had instructed the assessor to go back in the
area and come up with comparables.
1
J
s
Board of Review Minutes 6 May 16 , 1988
MOTION: Bentley moved, seconded by Pidcock, to reduce the
! 1988 Estimated Market Value on the Rice property, PID 17-116-
22 24 0015 to $325, 000. Motion carried unanimously.
15. Larry Olson - 08-116-22 14 0050 - 7351 Walnut Court
Mr . Olson was not present at the meeting.
MOTION: Harris moved, seconded by Anderson, to sustain the
1988 Estimated Market Value on the Olson property, PID 08-
116-22 14 0050 at $120, 100. Motion carried unanimously.
17. Ronald E. Neher - 04-116-22 43 0081 - 14860 Ironwood Court
Mr. Neher said the last time he was here he had not gone
through the comparables process to establish the value of
his home . Comparables not withstanding, he said he still
feels the house is overvalued at $172, 100.
Sinell asked if Neher had a realtor appraise his home. Neher
said he had not.
Peterson said the two comparable values are very close and
would seem to support the estimated value. Neher said that
at the starting point of the sales price, his home would be
less because his original selling price was lower.
Sinell asked if there was some duress on the part of the
seller to sell Mr . Neher ' s property. Neher said the seller
had already moved out of town .
MOTION: Anderson moved, seconded by Harris, to sustain the
1988 Estimated Market Value on the Neher property, PID 04-
116-22 43 0081 at $172, 100 . Motion carried unanimously.
18. Douglas Olsen - 21-116-22 42 0008 - 9030 Staring Lane W.
Mr. Olsen said the appraiser was out to look at his property
and told him before the comparables were done he thought the
value was $68 , 000. Olsen said he told the appraiser he would
like to see the comparable study. He said the comparables
indicated a value of $81000. Olsen said his house is listed
as being built in 1967 when it was actually built in 1961.
Sinell said, based in the error in the age of the house, he
calculated that the value should be $5,000 lower .
MOTION: Harris moved, seconded by Bentley, to reduce the
1988 Estimated Market Value on the Olsen property, PID 21-
116-22 42 0008 to $72, 900. Motion carried unanimously. '
19. Bruce Marzolf - 08-116-22 33 0018 - 7680 Atherton Way
Peterson said Mrs. Marzolf had phoned to say that neither
of them could be present. He said the Marzolfs had an
appraisal because they are considering selling their home.
9
x
Board of Review Minutes 7 May 16, 1988
The appraisal indicated a value $7 , 000 less than the
Estimated Market Value.
Sinell noted that the realtor appraisal showed three compar-
ables that ranged from $88, 700 to $98,700. Pidcock asked
if he agreed with that appraisal . Sinell said it is a
market analysis, not an appraisal.
MOTION: Anderson moved, seconded by Pidcock , to reduce the
1988 Estimated Market Value on the Marzolf property, PID
08-116-22 33 0018 to $92, 300. Motion carried unanimously.
20. Russell & Sandra Stephens - 05-116-22 41 0052 - 16029
Baywood Lane
The Stephens were not present at the meeting .
Peterson asked what value the Stephens were suggesting .
Sinell said their suggested market value was $192, 500.
r
MOTION: Bentley moved, seconded by Anderson, to sustain
the 1988 Estimated Market Value on the Stephens property,
PID 05-116-22 41 0052 at $209, 500. Motion carried
unanimously.
F
C
26. William Hargens - 21-116-22 42 0010 - 9060 Staring Lane W.
Mr . Hargens was not present at the meeting. g
MOTION: Bentley moved, seconded by Anderson, to sustain
the 1988 Estimated Market Value of the Hargens property,
PID 21-116-22 42 0010 at $103, 400 . Motion carried unani-
mously.
At this point a member of the audience requested that the Board
consider the appeals of those who were present in the audience
before the other appeals.. The Board agreed and considered the
remaining appeals in that manner .
29 . Dean & Kathryn Johnson - 24-116-22 32 0009 - 9170 Flyway
Circle
Mrs. Johnson referred to her letter of May 16th which out-
lined the reasons why they are appealing their valuation.
She said she didn ' t believe they could get $204,000 for
their home and she didn ' t think the comparables used were
appropriate . She said she chose her own comparables , five of
which were on her own block, and compared 1988 market values
to square footage for her chosen comparables. She said all
of her neighbors have lower market values than hers.
3
E
Sinell said her comparables were not sold properties and
she had assumed that all the houses were equal except for
size .
Board of Review Minutes 8 May 16, 1988
Harris asked what the market value represented. Mrs .
Johnson said it is the value in the books at the assessing
office, so it should be the current market value.
MOTION : Bentley moved, seconded by Anderson , to reduce
the 1988 Estimated Market Value on the Johnson property,
PID 24-116-22 32 0009 to $196,990 . Motion carried unani-
mously.
31 . John Swanson - 06-116-22 41 0024 - 6626 Boyd Ave.
Mr . Swanson said his EMV as of January 1, 1988 was $195, 000
and that has been reduced to $182 , 000 after the review
appraisal and a reduction for items that have not been
completed . He reviewed a comparison he had completed
of houses in the area, which he reviewed for the Board .
He noted that his is the largest house in the neighborhood.
Sinell said the comparables used in the assessor ' s review
were all in the neighborhood and most of them required only
minor adjustments. He said the comparables supported the
original appraisal and that most of the sales in the
neighborhood were over $150, 000.
MOTION: Bentley moved, ,seconded by Harris, to reduce the
1988 Estimated Market Value of the Swanson property, PID
06-116-22 41 0024 to $182 , 000. Motion carried unanimously.
37. Gary Reynolds - 05-116-22 43 0016 - 16630 Baywood Terrace
Mr. Reynolds said he thought we should be comparing the
Estimated Market Values since his home has not sold and
there is no actual sales value for the property
Peterson asked him if he meant he would like to compare the
Estimated Market Value of the comparables at the time of
sale. Reynolds said he thought that was a more equitable
way of comparing the properties.
Bentley said there are standard, conventional means of doing
the assessment process and he would prefer to not deviate
from those means.
Peterson said the City 's process follows the instructions
from the State and the County. Reynolds said that none of
the comparable properties have a value of 100% of the sales
price. Peterson noted that many properties do have such a
value with some over and some under that figure. Peterson
said Mr . Reynolds could take his philosophy to the County
level and try to persuade them to change their methods.
Reynolds said in that case he would then use gross square
footage , which would produce a price per square foot.
He said his property figures out to $98. 53 per square foot
while the comparables ' square footage averages $78. 80. He
R
f
i
i
Board of Re%iiew Minutes 9 May 16, 1988
said he would like to know why there is such a large
variation .
Bentley said he believed you can ' t take one aspect of the
valuation process and use that for the basis of determining
whether one property is higher in value . He noted that the
size of the properties has been discounted one way or
another on the sales comparison study.
MOTION: Harris moved, seconded by Pidcock , to sustain the
1988 Estimated Market Value on the Reynolds property, PID
05-116-22 43 0016 at $128, 100. Motion carried unanimously.
1023 . Michael McNamara - 24-116-22 43 0038 - 10260 & 10270 Tarn
Circle
Mr . McNamara said he had an appraisal done by Edina Realty
for his own taxes that was $164, 000. He said he had tried
to sell it and another realtor told hi►n he would be lucky
to get $140,000. He said the assessor told him the review
appraisal was at $167, 000 and he did not agree with that
amount.
a
Sinell said the assessor used a comparable on the same
street to arrive at his review appraisal although the
compar.ables were sold as single units rather than one
large unit as Mr . McNamara requires. i
MOTION: Bentley moved, seconded by Anderson, to reduce
the 1988 Estimated Market Value on the McNamara property,
PID 24-116-22 43 0038 to $167, 000. Motion carried unani-
mously.
1024 . Carol Burnett - 26-116-22 41 0033 - 9940 Bennett Place
Ms. Burnett said her valuation jumped $10,000 in one year
and she didn' t understand how that could be since the
house is not finished, there is no sewer and water, and
many trees were removed for the road. In addition there
are no improvements at all to the house.
Peterson asked if the increase was due to increased land
value. Sinell said the 1987 value was $130 # 700 while 1988
is $136, 100. He said the increased value is due to infla-
tion and a lot of the value is in the land. He said the area
is undergoing changes and the property is surrounded by
developments. He said the assessor was also directed to
look at the highest and best use of the property to see I
whether the house contributed to the value. The assessor ' s
conclusion was that the house does contribute to the value .
0
y
MOTION: Bentley moved, seconded by Harris, to reduce the
1988 Estimated Market Value on the Burnett property, PID
26-116-22 41 0033, to $132, 700. Motion carried unanimously.
I
r
Board of Review Minutes 10 May 16 , 1988
At this point President of the Board Peterson turned over the
chair to Board Member Bentley.
1026. Gary Ernst - 21-116-22 22 0013 - 15851 Summit Drive
Mr. Ernst said he is in an area where there is no sewer and
water and where there are very few two story homes. He
noted that all three comparables are in a different area and
he thought they were not very comparable since there were
too many things to adjust for . He said a comparable in
his neighborhood sold in 1986 and he didn' t understand why
that couldn ' t be used since that was a better comparable.
President of the Board Peterson resumed the chair at this
point .
Sinell asked Mr. Ernst what he thought the house was worth.
Ernst said he thought it was worth about $135,000 since it
was built for $120, 000 including the lot. He said he had put
on a deck and finished the basement since purchasing the
property.
MOTION: Pidcock moved, seconded by Harris, to reduce the
1988 Estimated Market Value on the Ernst property, PID
21-116-22 22 0013, to $140, 000. Motion carried unanimously.
1029. Robert T. Callan - 24-116-22 31 0017 9051 High Point
Circle
Mr . Callan said he thought he could sell his property for
$128, 000. He objected to the comparables used because of
the square footage and the quality of construction .
Bentley said he thought the market comparison was valid .
MOTION: Bentley moved, seconded by Anderson, to sustain
the 1988 Estimated Market Value on the Callan property,
PID 24-116-22 31 0017, at $133, 200 . Motion carried unani-
mously.
38 . Otto Halstenson - 23-116-22 14 0031 - 8965 Preserve Blvd .
38a. Ermin Windschill- 23-116-22 14 0032 - 8967 Preserve Blvd .
Mr . Halstenson was not present at the meeting nor was
Mr . Windschill .
Bentley said he had a hard time with the increase suggested
by the assessor after the review appraisal. Sinell noted
that the second unit had just been sold.
MOTION: Anderson moved, seconded by Pidcock, to sustain
the 1988 Estimated Market Value on the Halstenson property,
PID 23-116-22 14 0031 at $157, 200 and on the Windschill
property, PID 23-116-22 14 0032 at $140,900. Motion carried
unanimously.
Board of Review Minutes 11 May 16, 1988
1017. Michael W. Dunn - 23-116-22 42 0062 - 9044 Preserve Blvd .
MOTION: Harris moved , seconded by Pidcock , to reduce the
1988 Estimated Market Value on the Dunn property, PID
23-116-22 42 0062 to $210, 000. Motion carried unanimously.
1022. Northwood Gas Co. , Inc. - 03-116-22 22 0019
03-116-22 22 0021
03-116-22 22 0022
MOTION: Pidcock moved, seconded by Anderson , to sustain
the 1988 Estimated Market Value of the Northwood Gas Co. ,
Inc. properties, PIDs 03-116-22 22 0019, 03-116-22 22 0021,
03-116-22 22 0022 at $800, $76, 000, and $57, 500, respec-
tively. Motion carried unanimously.
MOTION: Pidcock moved, seconded by Bentley, to accept the
assessors ' recommendations for the 1988 Estimated Market Value
on the following properties:
27. Andrew W. and Susan G. Wolf - 23-116-22 24 0078 -
$59, 400
30 . Michael Sutton - 26-116-22 14 0018 - $45, 000
10-116-22 21 0001 - $32, 500
10-116-22 21 0002 - $33, 500
W
32. William & Wanda Carpenter - 04-116-22 21 0014 -
$103 , 700
33 . Lee Garber - 04-116-22 43 0050 - $128, 800
35. Bihari Desai - 17-116-22 .12 0058 - $72, 900
1001 . Donald Paton - 17-116-22 13 0026 - $95, 300
1002. Mark Peterka - 23-116-22 42 0063 - $262, 700
1003 . Bruce Eliason - 25-116-22 23 0022 - $248 , 900
24-116-22 22 0219 - $56,000
1007 . Donald Sabinske - 08-116-22 33 0010 - $116, 300
1019. David & Jeanne Mooty - 03-116-22 31 . 0003 -
$309, 100
i
1020 . Nancy & Jeff Lukens - 04-116-22 44 . 0007 - $221, 400
1021. EdTed Properties - 01-116-22 24 0029 - $193, 000
s
Motion carried unanimously.
IV. OTHER BUSINESS
There was none.
Board of Review Minutes 12 May 16, 1988
V. ADOPTION OF RESOLUTION NO. 88-87, ACCEPTING THE 1988 ASSESSMENT
MOTION: Bentley moved, seconded by Harris, to adopt Resolution
No. 88--87, accepting the 1988 assessments. Motion carried
unanimously.
Bentley said he wanted to compliment Mr. Sinell and his staff
on the excellent job they did on the 1988 appraisal process .
VI . ADJOURNMENT
MOTION: Anderson moved, seconded by Pidcock, to adjourn the
meeting at 10 : 05 PM. Motion carried unanimously.
4
a