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HomeMy WebLinkAboutBoard of Appeals and Equalization - 04/14/2004 APPROVED MINUTES CITY OF EDEN PRAIRIE BOARD OF APPEAL AND EQUALIZATION WEDNESDAY,APRIL 14, 2004 7:00 PM CITY CENTER 8080 MITCHELL ROAD COUNCIL CHAMBERS BOARD OF APPEAL AND EQUALIZATION MEMBERS Patricia Pidcock, Chair; Mike Best, Vice Chair; Judy Ilstrup, Doug Malam and Annette O'Connor BOARD OF APPEAL AND EQUALIZATION STAFF City Assessor Steve Sinell, Staff Appraisers John Sams, Barb Cook, Jody Carlson and Colin Schmidt. Recording Secretary, Peggy Rasmussen I. ROLL CALL/CALL MEETING TO ORDER Pidcock called the meeting to order at 7:10 p.m. All members were present. Pidcock explained that the Board members are appointed by the City Council as required by the State of Minnesota. II. ORDER OF BUSINESS A. Hear Personal Appeals # Taxpayer Name/Address Property Information Appeal Status 1. Richard Peppin 25-116-22-33-0082 Site inspected 4/13/04; 10188 Meade Lane Residential Homestead review in process by Eden Prairie, MN 55347 John Sams. 1/2004 EMV $589,000 Owner's Opinion $500,000 Peppin explained that his home is located in the Creek Knolls area, south of Pioneer Trail and west of Franlo Road. He purchased it in June 2002. The house backs up to Purgatory Creek. In the fall of 2002 heavy rains caused a total collapse of the back yard, which slopes down to Purgatory Creek. The slope was repaired in 2003. However, they have no trees remaining on the back of the lot. They put in a retaining wall and brought in new fill to stabilize the back yard. On the east side of the property, the slope starts to drop off at about a 45' angle from the retaining wall and is slowly eroding. There are only about 15 feet between the back corner of the house and the edge of the slope. Peppin said he believes the erosion on his property and the neighboring property is continuous. There is still a great deal of work to do in the back yard to re-seed and put down sod. Asked how high the retaining wall is, Peppin replied it is four or five feet high. Peppin said the Estimated Market Value of$589,000 is an increase from$485,000 a year ago. He has lost some of the beauty and usability of the lot, and the cost he has BOARD OF APPEAL & EQUALIZATION April 14, 2004 Page 2 incurred in repairs doesn't add to the value of the property. The property now has a stigma that will have to be disclosed if he tries to sell it. He proposed setting the EMV at$485,000. The comparable that was done is not quite right because the house is not the same quality as his, and the lot size is not comparable. Asked if he had talked to anybody from the Watershed District, Peppin replied no, but he has talked to Bob Lambert and engineers from the City. Peppin believes the problem began on what is City property. Although the property has been stabilized on the main portion of the slope,he has some concerns that there are still run-off areas on both the east and west sides that could potentially turn into a problem, especially between his lot and the neighbor's property to the east. He has put in drain tile, and the neighbor is also working on his slope. Peppin said there could be more erosion problems if there is a lot of rain this year. Sinell said the problem of restoring the yard was realized a year ago. He said his staff is looking for guidance from the Board on how to adjust for the lingering effects on market value. They saw the erosion on the east corner near the neighbor's property, and there is some on the west side that isn't as obvious,but could get worse. Staff and Peppin have worked together and agreed on the problem. Most of the yard has been restored,but he asked the Board for guidance on how the market value would be affected. Sams said they are looking for more properties to compare with Peppin's. MOTION: Best moved, seconded by Ilstrup, to carry this appeal over to the next meeting while the appraisers complete a review. Motion carried 5-0. 2. Gary & Nancy Lemon 17-116-22-33-0023 Review appraisal of 8562 French Curve Residential Homestead $825,000 supports Eden Prairie, MN 55347 the original EMV 1/2004 EMV $804,400 Owner's Opinion $750,000 Nancy Lemon said the main issue is the continuation of Highway 212 and Scenic Heights Road and trying to sell their house, which is the closest one to both roads. The valuation of their property had increased $77,000 since last year. Of the comparables done by the assessor, three came from the neighborhood of Big Woods, and all three in her neighborhood were sold before the go-ahead for Highway 212 had been announced, and probably did not affect the sales of those houses. Pidcock said the highway work has been on the books for some time,just waiting for funding, and would have been revealed to potential buyers. Lemon said no one knew when the work was going to happen, though, and her realtor was surprised when the work was moved up. Their house is the closest one to the road construction. Lemon said they are appealing the EMV of$804,400. In 2003, the EMV was $730,000. They added a porch after that, so they believe the EMV should be $750,000. It seems a big jump to say the house is worth $77,000 more than last year, with this issue of trying to sell the house. BOARD OF APPEAL & EQUALIZATION April 14, 2004 Page 3 Lemon said houses are not selling as fast as they were. Their house has had an increase in valuation of 11- to 12 percent a year. They are looking for consideration because of the road construction. O'Connor said she sold a house across the street from this property. It took six months of marketing,partly because they had to disclose that Scenic Heights Road would be in the sight line of the house. It sold for$10,000 less than the listing price. She believed that the market would improve once the road project is finished,because fear of the unknown scares off buyers. Sinell stated that this neighborhood and all properties that back up to Hwy. 212 right-of- way have been negatively affected since the day they were built. People knew the freeway was coming, but the work has been speeded up. When the appraisal was reviewed, the appraiser did extensive research. What he discovered was that the Lemon's house was probably most affected. Scenic Heights will wrap around it. What he did was look at properties near theirs, across the road and on the cul de sac. He looked at five comparables and agreed Lemon's property is the worst affected of those in their neighborhood. He adjusted the value down 10 percent because of that. The appraisers have found that the negative impact on property values is in the unknown phase prior to completion of a road project,but as the project is done the value comes back. They feel an adjustment of 10 percent is correct. Lemon objected that the comparables used were sold in late June or early July,before it was known the highway would be built this soon. O'Connor said she didn't think anything has sold in that area since last summer. Sinell said that no one knows what the Lemon's house would sell for,but based on past experience 10 percent has been an appropriate adjustment. The Board could continue this appeal to think about how it wants to act;but he didn't believe there was anything more his staff could do on it. O'Connor said the road construction would significantly impact the ability to sell that house, especially during construction. Sinell said comparable number 5 is the one that sold in 2002 for$740,000; now it is back on the market for$850,000. The value of the houses will go back up. Malam said he believed 10 percent is the right amount of adjustment. Best said he was troubled by the whole issue of the impact to this house. Construction is to begin in the spring of 2005. The review appraisal of$825,000 struck him as being too high because of the unknown factor. It would be hard to find a buyer during this period of time. He believed the EMV should be $800,000 or less. MOTION: Best moved, Pidcock seconded, to reduce the appraisal to $800,000. Discussion followed. BOARD OF APPEAL & EQUALIZATION April 14, 2004 Page 4 Malam said he has a listing off Pioneer Trail at Audubon Road, and is running into this unknown factor. O'Connor said she believed the higher the price of the property, the more this factor impacts it. Best amended his motion. MOTION: Best moved, seconded by Pidcock, to reduce the appraisal to $775,000. Motion carried 5-0. 3. Resolved prior to Board of Appeal and Equalization meeting. No action required. 4. JEM Investment Company 14-116-22-32-0295 Inspection scheduled for Michael M. Gavin— Residential Homestead April 15 Representative 635 Prairie Center Drive Viola Gavin Unit 427 635 Prairie Center Drive Eden Prairie, MN 55344 Unit 47 Eden Prairie, MN 55344 1/2004 EMV $90,400 Owner's Opinion $ ? MOTION: Best moved, seconded by Malam, to refer to Assessor for additional review. Motion carried 5-0. 5. Paul Gallenberger 18-116-22-13-0042 Review appraisal 8182 Pristine Pine Trail Residential Homestead incomplete. Eden Prairie, MN 55347 1/2004 EMV $547,700 Owner's Opinion $508,000 MOTION: Best moved, seconded by Ilstrup, to refer to Assessor for additional review. Motion carried 5-0. 6. Stephen & Vicke Hegedus 36-116-22-41-0005 Review appraisal not 9825 Brookview Circle Residential Homestead started. Mr. Hegedus Eden Prairie, MN 55347 has provided the Board 1/2004 EMV $689,600 with a copy of a July 14, Owner's Opinion $550,000 2003 appraisal. MOTION: Best moved, seconded by Ilstrup, to refer to Assessor for additional review. Motion carried 5-0. BOARD OF APPEAL & EQUALIZATION April 14, 2004 Page 5 7. Mark & Melissa Collins 30-116-22-42-0050 2004 EMV includes new 18136 Overland Trail Residential Homestead basement finish (permit Eden Prairie, MN 55347 2003). Need inspection 1/2004 EMV $774,400 to complete review Owner's Opinion $ ? appraisal. MOTION: Malam moved, seconded by Best, to refer to Assessor for inspection and review of appraisal. Motion carried 5-0. 8. Resolved prior to Board of Appeal and Equalization meeting. No Board action required. 9. Tom& Kathleen Briant 21-116-22-24-0038 Inspected April 13, 2004; 15560 Boulder Pointe Rd Residential Homestead review in process by Dave Eden Prairie, MN 55347 Buswell. 1/2004 EMV $662,500 Owner's Opinion $580,170 Tom Briant stated that their house is located at the intersection of Mitchell Road and it is just 68 feet from the corner. His first reason for requesting a reduction in valuation is the traffic noise. The manager of the Boulder Pointe Association said he read that 4300 cars pass by every day on Mitchell Road. Briant said he couldn't keep his windows open because of the noise made by SUV and truck traffic. Because of that, he believed there should be a 1.8 percent reduction in the market value. The comparable houses used were not as much affected because their back yards back up to Mitchell Road. The second reason for his appeal is that water came into the house during two heavy rainstorms. The inspector discovered four significant construction code violations regarding the use of stucco siding. The house is less than five years old and was built by Lundgren. The extent of water damage will not be known until repairs are made beginning at the end of May. They don't know yet if there is a mold problem. The water damage will leave a stigma with the property because it will have to be declared when the property is put up for sale in the future. Sinell said Dave Buswell would do an appraisal. The City has not had a lot of experience with stucco homes so Sinell said he didn't know what the decrease in market value would be. The Briants are looking for a 6.8 percent reduction. MOTION: Best moved, seconded by Malam, to refer this to the Assessor for inspection and review of appraisal. Motion carried 5-0. 10. Michael Dunn 21-116-22-22-0041 Review appraisal not started 8661 Red Oak Drive Residential Homestead Inspection scheduled for Eden Prairie, MN 55347 April 201h. Mr. Dunn has 1/2004 EMV $242,900 provided the Board with a Owner's Opinion $230,000 copy of a March 11, 2004 Appraisal. BOARD OF APPEAL & EQUALIZATION April 14, 2004 Page 6 MOTION: Best moved, seconded by O'Connor, to refer to Assessor for inspection and review of appraisal. Motion carried 5-0. 11. Janis Sicard 07-116-22-23-0019 Review appraisal in process 7280 Green Ridge Drive Residential Homestead Eden Prairie, MN 55346 1/2004 EMV $253,500 Owner's Opinion $153,500 MOTION: Malam moved, seconded by O'Connor, to refer to Assessor for additional review. Motion carried 5-0. 12. Resolved prior to Board of Appeal and Equalization meeting. No Board action required 13. Resolved prior to Board of Appeal and Equalization meeting. No Board action required 14. Ross Gilbertson 07-116-22-41-0055 Review appraisal in process 17601 Evener Way Residential Homestead Eden Prairie, MN 55346 1/2004 EMV $266,200 Owner's Opinion $255,000 MOTION: Best moved, seconded by Malam, to refer to Assessor for additional review. Motion carried 5-0. 15. Keith & Maurrie Salenger 05-116-22-21-0035 Review appraisal in process 16799 Whittington Walk Residential Homestead Eden Prairie, MN 55346 1/2004 EMV $420,400 Owner's Opinion $389,000 MOTION: Ilstrup moved, seconded by O'Connor, to refer to Assessor for additional review. Motion carried 5-0. 16. Daniel Stromquist 20-116-22-22-0030 Review appraisal in process 17235 Candlewood Pkwy Residential Homestead Inspected April 9, 2004 by Eden Prairie, MN 55347 Jody Carlson. Dave Buswell to reinspect on 1/2004 EMV $490,000 April 201h and complete Owner's Opinion $380,000 review. Need to rework. BOARD OF APPEAL & EQUALIZATION April 14, 2004 Page 7 MOTION: Malam moved, seconded by Best, to refer to Assessor for additional review. Motion carried 5-0. 17. Resolved prior to Board of Appeal and Equalization meeting. No Board action required 18. Michael Anderson 06-116-22-32-0023 Mr. Anderson to schedule 6680 Tartan Curve Residential Homestead inspection with Jody Eden Prairie, MN 55346 Carlson. Mr. Anderson has 1/2004 EMV $270,900 provided the Board with a Owner's Opinion $260,000 copy of a March 17, 2004 appraisal. MOTION: Ilstrup moved, seconded by O'Connor, to refer to Assessor for additional review. Motion carried 5-0. B. Review Written Appeals There were none. C. Hear Other Appeals There were none. D. Schedule Next Meeting MOTION: Malam moved, seconded by Ilstrup, to schedule the next meeting for Monday, May 3, 2004, at 7:00 PM. Motion carried 5-0. E. Close the Board of Appeal and Equalization Meeting to Additional Appeals MOTION: Best moved, seconded by Ilstrup, to close the Board of Appeal and Equalization meeting to additional appeals. Motion carried 5-0. III. CLOSE THE BOARD OF APPEAL AND EQUALIZATION MEETING Chair Pidcock closed the meeting at 8:06 p.m.