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HomeMy WebLinkAboutBoard of Appeals and Equalization - 04/20/2000 CITY OF EDEN PRAIRIE BOARD OF REVIEW APPROVED MINUTES THURSDAY,APRIL 20, 2000 7:00 PM CITY CENTER Council Chamber 8080 Mitchell Road, Eden Prairie BOARD OF REVIEW MEMBERS: Patricia Pidcock—Chair, Mike Best—Vice Chair, Judy Ilstrup, Doug Malam and Annette O'Connor BOARD OF REVIEW STAFF: City Assessor Steve Sinell, Appraiser II John Sams, Appraiser II Barb Cook, Assessing Clerk Jody Carlson and Recording Secretary Peggy Rasmussen I. ROLL CALL/CALL THE MEETING TO ORDER Chair Pidcock called the meeting to order at 7:02 p.m. She explained the purpose of the meeting, which is to review properties that have an assessed valuation as of January 2, 2000. She asked the Board of Review members to introduce themselves. Sinell explained that the City is required by State Statute to notify all property owners of any change in the value of their property and to provide a Board of Review meeting to review the value of any property where the owners feel it necessary to appeal the value. The City delegates that authority to the Board of Review. If, after the Board determines the value of the property, the property owner still does not agree, the property owner has the option of appealing to the County Board of Equalization and finally to the State Tax Court. II. ORDER OF BUSINESS A. Hear Personal Appeals Chair Pidcock read through the list of names and asked if those people were present. There was only one. 3. Harvey Humes, 9512 Creekwood Drive 1/2000 EMV $197,700 Mr. Humes said the reason he was appealing his assessment is because he believed it was too high compared with other properties that have sold in his area. He brought documentation with him, which he gave to the Board members. The average value of homes sold in his area was $189,000. He felt that the value of his home should be in that range, not$197,700. Ilstrup said the neighborhood compared to Humes was Woodbridge and it is quite different from Humes' neighborhood. This was the reason the average BOARD OF REVIEW MINUTES April 20, 2000 Page 2 home price was $189,000. Based on two homes that sold on Creekwood Drive, a valuation of$197,700 would be correct. MOTION: Malam moved, seconded by Best, to sustain the valuation of $197,700. Motion carried 5-0. B. Review Written Appeals 1. Cora Lane Nelson, 9706 Mill Creek Drive 1/2000 EMV $142,400 Sinell said this townhouse is located south of Pioneer Trail, along Purgatory Creek. Pioneer Trail will be converted to a four-lane road this year. The proximity to Pioneer Trail and possible expansion of the Flying Cloud airport affects the value of these townhomes. An adjustment of about five percent was made for the location, which is alongside Pioneer Trail. There are about 51 units here, and about five of them sold last year. He compared three properties in Mill Creek that sold in 1998 and 1999 for between $147,000 and $158,300. This supports the city's original EMV of$142,400. Pidcock said she thought the adjustment should have been much more than five percent. People are not interested in purchasing property along Pioneer Trail at this time because don't know how it will look when it's done. Sinell said adjusting the value by another five percent would bring it down to about$142,400. O'Connor suggested $140,000 and Ilstrup agreed. MOTION: O'Connor moved, seconded by Ilstrup, to change the EMV to $140,000 for 9706 Mill Creek Drive. Motion carried 4-1, with Best opposed. 2. Harold Trocke, 15801 West 6211d Street 1/2000 EMV $137,900 Sinell said this is a single-family home on the frontage road overlooking County Road 62. It was originally built in 1958. Sams said he found five comparables within the same neighborhood and one on Eden Prairie Road. This house has had a number of improvements over the years. The owner believes the county road has taken away from the value of his house. Sams made an adjustment for the fact some of the comparables were not on a busy street; however, one is right on the frontage road. Best said this is another situation where they are dealing with a negative location. MOTION: Best moved, seconded by Malam, to sustain the valuation at $137,900. Motion carried 5-0. BOARD OF REVIEW MINUTES April 20, 2000 Page 3 4. Grigoriy Garelik, 10358 Lee Drive 1/2000 EMV $177,200 Sinell found three comparables of similar age. All three sold in late 1999 and sold for between $195,000-$203,000. That seems to support the original EMV of$177,200. MOTION: Best moved, seconded by O'Connor, to sustain the original estimated market value of$177,200. Motion carried 5-0. 5. Gerry Hamann, 9718 Mill Creek Drive 1/2000 EMV $124,800 Sinell said the house was appraised in October 1999 for$141,000. The owner believes that with the upgrading of Pioneer Trail, the house is only worth $110,200. Best said he would not say that just because a road is being upgraded that all houses are affected. When the road is finished the house could be worth more than it is now. Pidcock said the city did an estimated market value if sold on January 2, 2000 and we need to assess it accordingly. O'Connor said it depends on where the townhouse is located in the complex. MOTION: Best moved, seconded by Malam, to sustain the original estimated market value of$124,800. Motion carried 5-0. 6. David Tyson, 9703 Mill Creek Drive 1/2000 EMV $125,500 Sinell said this house was purchased in 1998 for$118,200. It is a very basic unit,built in 1977. It is right next to Pioneer Drive. He found three comparables; two are on Brighton Lane, one on Sherman Drive. MOTION: Best moved, seconded by Malam, to sustain the original estimated market value of$125,500. Motion carried 5-0. 7. Gary Corder, 9709 Mill Creek Drive 1/2000 EMV $128,200 Sinell said this townhouse is right on top of Purgatory Creek, a nice location. He compared with three other townhomes about the same size and all sold in late 1999. MOTION: Best moved, seconded by O'Connor, to sustain the original market value of$128,200. Motion carried 5-0. BOARD OF REVIEW MINUTES April 20, 2000 Page 4 8. Barbara Hansen, 9746 Mill Creek Drive 1/2000 EMV $147,600 Sinell said this townhouse looks toward a pond. Sams said comparable townhouse sales used were from that neighborhood. Three comparables were quite similar. MOTION: Best moved, seconded by Malam, to sustain the original estimated market value of$147,600. Motion carried 5-0. 9. Earl Inzram, 17064 Weston Bay Road 1/2000 EMV $332,300 Sinell said this is a nice-quality house on a lake. It was purchased in 1987 by the present owner for$299,679. Since that time the owner has finished the basement and put in landscaping. The Board reviewed this house last year. The Board sustained the value at that time. The house is an unusual style,but he believed there would be buyers for it. The value was adjusted down 10 percent because of the style. The house next door sold very close to the list price of$335,000,but took one-and-a-half years to sell. MOTION: Best moved, seconded by Malam, to sustain the estimated market value of$332,300. Motion carried 5-0. 10. Joseph Jullie, 17031 Prairie Lane 1/2000 EMV $202,100 11. Joseph Jullie, 17041 Prairie Lane 1/2000 EMV $52,500 12. Arlynn Leapaldt, 9555 Highview Drive 1/2000 EMV $308,600 13. Keith Enizelhart, 8211 Nechas Circle 1/2000 EMV $203,900 Sinell said an inspection of the first two properties is scheduled for April 21. An inspection of number 12 is scheduled for April 25. An inspection of number 13 was done on April 19 and the appraisal is in process. However, Sinell asked for some advice on number 10. It backs up to railroad tracks. On the other side is the high school's giant bubble practice field. He wondered at what point should the valuation go beyond the usual 10 percent downgrade and go to a lower valuation. Best said the bubble does pose a problem because there hasn't been any experience with this type of situation. Sinell said the comparables that were obtained were for homes built since the bubble was put up. BOARD OF REVIEW MINUTES April 20, 2000 Page 5 Pidcock said one factor to consider is the possibility that a property owner in this area could have a distress sale because he had to get out of there in a hurry. Sams said looking at this from the appraiser's standpoint, since he won't have a sale to compare with that is exactly the same he will have to find one that doesn't have the bubble nearby. How much of a negative should they give the valuation? Pidcock said she would consider it to be the same as freeway noise walls because that would have the same impact to the value of the house. Sams said that would indicate it should be relative to other major negative impacts. Best said to give the house the full 10 percent adjustment. Take some pictures and then the Board will look at them at the next meeting. MOTION: Best moved, seconded by Malam, to continue numbers 10, 11, 12 and 13 to the next meeting. Motion carried 5-0. 14. Sinell said this was resolved prior to the Board meeting. 15. Galen and Teresa Levesque, 10342 Bluff Road 1/2000 EMV $419,600 The appraisal is in process. MOTION: Best moved, seconded by Malam, to continue this appeal to the next meeting. Motion carried 5-0. 16. Carl and Marlene Adams, 9475 OlyMpia Drive 1/2000 EMV $501,000 Appraisal is in process by John Sams. He will be scheduling an inspection. MOTION: Best moved, seconded by Malam, to continue this appeal to the next meeting. Motion carried 5-0. 17. This was settled prior to the Board meeting. 18a Loren Wuttke, 16860 Flying Cloud Drive 1/2000 Deferred EMV $725,000 1/2000 Taxable EMV $247,900 18b Loren Wuttke, Flying Cloud Drive 1/2000 Deferred EMV $516,000 1/2000 Taxable EMV $15,400 18c Loren Wuttke, 9990 Eden Prairie Road 1/2000 Deferred EMV $426,600 1/2000 Taxable EMV $154,100 18d Loren Wuttke, 10190 Eden Prairie Road 1/2000 Deferred EMV $51,200 18e Loren Wuttke, Flying Cloud Drive 1/2000 Deferred EMV $1,000 1/2000 Taxable EMV $200 BOARD OF REVIEW MINUTES April 20, 2000 Page 6 Sinell said he received Wuttke's application on April 17. Sinell phoned Wuttke, who said he has to get more information and would contact Sinell when he had it. Sinell said all the properties carry two values: taxable Green Acres and deferred value. Sinell does not think the City has overvalued the property. When the assessors started doing market comparisons, the lowest they could come up with was $1,700,000. Best said because Mr. Wuttke would be contacting Steve Sinell, the appeal should be continued to the next meeting. MOTION: Best moved, seconded by O'Connor, to continue this item to the next meeting. Motion carried 4-1, with Malam opposed. Malam said he believed Wuttke would end up with a much higher valuation if this were continued to the next meeting,because the appraisers will use comparables that would likely indicate an increased value is warranted. Sinell said his staff has to consider all factors that influence that property's value. A value is placed according to what somebody would pay for it as of this date. Wuttke has shown reluctance in the past to allow the appraisers on his property and he wants the Board to insist on it. Pidcock said the law states the Board of Review has 20 days to consider an appeal. Sinell then reviewed with the Board each of the pieces of property owned by Wuttke. He said that the total taxable value is $420,200; the deferred market value is $1,719,800. He explained how the tax is calculated if the property were to be sold. MOTION: Best moved, seconded by O'Connor, to rescind the last motion, based on this new information. Motion carried 5-0. MOTION: Best moved, seconded by Malam, to sustain the valuation of appeals number 18a, 18b, 18c, 18d, and 18e at the present value. Motion carried 5-0. 19. Edward Flaherty, 15037 Bluff Road 1/2000 EMV $720,300 Inspection is scheduled for April 25, with John Sams 21 John & Phyllis Pollock, 16460 Hillcrest Ct. N 1/2000 EMV $180,200. Inspection is scheduled for April 24 with Dave Buswell. BOARD OF REVIEW MINUTES April 20, 2000 Page 7 MOTION: O'Connor moved, seconded by Malam, to continue appeals number 19 and 21 to the next meeting. Motion carried 5-0. 20. V.G. Schaffer, 17511 Bearpath Trail 1/2000 EMV $420,000 Sinell said this townhouse was purchased in 1995 for$409,000. Currently it is valued at$430,000. Mr. Schaffer spends his winters in Florida and last winter, while he was gone, there was a sewer backup into two units, including Mr. Schaffer's. There was $8,300 in damages, paid by the insurance carrier. The carpet had been torn out but not replaced yet, so Colin Schmidt made a$10,000 adjustment, to $420,000. Mr. Schaffer believes a sewer backup will happen every winter and that nobody will buy the property. Gene Dietz told Sinell that, in fact, every year one or two houses in newly constructed neighborhoods in Eden Prairie end up with a sewer backup. There is nothing wrong with the pipes in this townhouse; once the blockage was removed the problem was solved. The odds of it happening again in this house are the same as for anyone else. Mr. Schaffer wants this $10,000 adjustment to be permanent. Pidcock said the property in Eden Prairie is escalating in value as much as in other places in the country. Best said he could see making a temporary adjustment for a temporary problem,but not a permanent adjustment. MOTION: Best moved, seconded by O'Connor, to sustain the value at $420,000. Motion carried 5-0. C. Hear Other Appeals 22. Leonard Dixon, 14119 Holler Mr. Dixon believes his property should have and EMV of$180,000. He has been a resident of Eden Prairie since 1997. He said when rates are raised it takes money out of the hands of the property owners. He had to replace his roof because of hail damage. While the roof was off rain damaged his home. He had an assessor come to the house, who said he could not sell his house for the amount of his valuation by the city. He asked to have his property re- evaluated. Sinell said he would recommend this be continued until another evaluation is done. MOTION: Best moved, seconded by O'Connor, to continue this appeal to the next meeting. Motion carried 5-0. D. Schedule next Meeting BOARD OF REVIEW MINUTES April 20, 2000 Page 8 MOTION: Malam moved, seconded by Best, to continue this meeting to May 9, 2000. Motion carried 5-0. E. Close the Board of Review Meeting to Additional Appeals MOTION: Best moved, seconded by O'Connor, to close the Board of Review meeting to additional appeals. Motion carried 5-0. BOARD OF REVIEW MINUTES April 20, 2000 Page 9 III. CLOSE THE BOARD OF REVIEW MEETING MOTION: Best moved, seconded by Ilstrup, to close the Board of Review meeting. Chair Pidcock closed the meeting at 8:42 p.m.