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HomeMy WebLinkAboutBoard of Appeals and Equalization - 04/22/1999 APPROVED MINUTES CITY OF EDEN PRAIRIE BOARD OF REVIEW Thursday, April 22, 1999 7:00 PM at the City Council Chambers Eden Prairie City Center 8080 Mitchell Road, Eden Prairie 55344 Board of Review Members Mike Best, Phil Olson, Annette O'Connor, Patricia Pidcock, and Carol Standal Board of Review Staff Director of Assessing Steve Sinell, Appraiser II John Sams, Appraiser II Barb Cook, Appraiser II Colin Schmidt, and Recording Secretary Margaret Rasmussen I. CALL MEETING TO ORDER Patricia Pidcock, Chair, called the meeting to order at 7:00 p.m. II. ORDER OF BUSINESS Steve Sinell gave an overview of the purpose of the meeting. He explained that Minnesota Statutes call for all cities to hold an annual Board of Review in order to hear appeals on the market value or classification of real estate property. The members of the Board of Review are active in the local real estate market. The Board will not change the market value unless there is consensus that it is unfair. Their decisions are final; however they can be appealed at the county and state levels. A. Hear Personal Appeals 1. Michael and Michelle Keeler, 8735 Biiz Woods Lane Michael Keeler stated his appeal is based on the process used to appraise his house. Appraiser Dave Buswell told Mr. Keeler one reason the house was appraised at 102 percent of the purchase price was because it was a model home for the development and another reason is that the Keelers have lived there for over a year. Mr. Keeler found out that five of the homes in the development were model homes and they were appraised at 90-98 percent of the purchase price. Steve Sinell said when the house was purchased in 1997 for$664,500 there was a negative market in this location,but since then the whole development has turned around, increasing the value of the house. BOARD OF REVIEW April 22, 1999 Page 2 MOTION: Phil Olson moved, seconded by Carol Standal, that the market value, as amended to $664,500, be sustained. Motion carried 5-0. 2. Earl A. Inzram, 17064 Weston Bad This written appeal was heard after the personal appeals. 3. Ralph Teschner, 6463 Mere Drive The lot has a high water table causing a drainage problem away from the house. Mr. Teschner put in a sump pump after having 4 inches of water in the basement. There is a crack in the foundation through which water seeps during heavy rains. This prevents him from finishing the basement. He listed the house a few years ago for about two weeks and no one was interested in buying it because the basement cannot be finished and the sump pump runs constantly. The comparables done by Dave Buswell were on dry homes with finished basements or were built on larger parcels of land. He believes the market value to be $190,000. Phil Olson suggested the problem could be corrected by putting drain the around the exterior and interior walls and regrading the lot. Mr. Teschner said he has put drain tile around the exterior but not the interior;regrading is too expensive. Steve Sinell stated Dave Buswell looked at the cracking in the basement wall and said it was no more than is normally found in most houses. He found no other signs of water damage, such as mildew or odor. He returned after a rainfall and there was no water in the basement then, so he did not make an adjustment for a wet basement. Pat Pidcock said she believes the owner would have no difficulty selling the house for $225,000. There are two other floors with livable square footage. MOTION: Phil Olson moved, seconded by Annette O'Connor, to sustain the market value of$201,900. Motion carried 5-0. 4. Kent Carlson, 6709 W. 1681' Avenue Review appraisal is in process by John Sams MOTION: Phil Olson moved, seconded by Annette O'Connor to hold this review over to the next meeting. Motion carried 5-0. 5. Lorenz Deizner, 14701 Pioneer Trail 6. 7. Mr. Degner owns several airplane hangars built on Lots 72, 100 and 104 at Flying Cloud Airport. He said he has no existing leases on any of them and they all need major repairs. He questioned the increase of 5-6 percent in market value. Steve Sinell said a review of this appraisal is in process by Colin Schmidt. BOARD OF REVIEW April 22, 1999 Page 3 MOTION: Mike Best moved, seconded by Carol Standal, to hold over review of these properties to another meeting. Motion carried 5-0. 8. Tom Ploszay, 7564 Eileen Street This appeal was dropped prior to the Board of Review meeting. 9. Carmen and Tace Wieczorek The owners were not present at the meeting. The appraisal is in the process of being reviewed by John Sams. MOTION: Phil Olson moved, seconded by Annette O'Connor, to defer this item to the next meeting. Motion carried 5-0. 10. Corwin R. Davidson, 18375 Pioneer Trail Mr. Davidson said the appraised market value last year was $380,000 and now it is appraised at $660,500. He believes it should have a market value of$450,000. Annette O'Connor said that land on Pioneer Trail is selling for$80,000-$100,00 per acre. Mr. Davidson owns 10.06 acres inside the MUSA area. Sewer is available now and water will be available next year. Steve Sinell said this is a case where the person bought the land at a low price in 1984. It does have a limited market value of$453,000. Mr. Corwin stated that a storage shed has just been built that abuts his property on the adjoining lot. MOTION: Mike Best moved, seconded by Carol Standal, to hold this item over to the next meeting. Motion carried 5-0. 11. William and Susan Cochrane, 11423 Welters Way Review of this appraisal is in process by John Sams. MOTION: Phil Olson moved, seconded by Mike Best, to table this item to the next meeting. Motion carried 5-0. 12. Glenn Bragg, 15495 Sunrise Circle West Mr. Bragg's father said the house cost$175,000 to build five years ago. It is a modified two-story house. Houses in the immediate area were assessed at$130,000 and $150,000. A review appraisal is in process by Colin Schmidt. BOARD OF REVIEW April 22, 1999 Page 4 MOTION: Mike Best moved, Phil Olson seconded, to hold this item over to the next meeting. Motion carried 5-0. 13. Barbara M. Hanson, 9746 Mill Creek Drive This appeal was resolved prior to the Board of Review meeting. 14. Jeanene Bloom, 9190 West Starinz Lane Review appraisal is in process by Colin Schmidt. MOTION: Mike Best moved, seconded by Phil Olson, to carry this item over to the next meeting. Motion carried 5-0. B. Review Written Appeals 15. Loren R. Wuttke, 16860 Flying Cloud Drive Mr. Wuttke was not present. He owns approximately 53 acres, used primarily for agricultural purposes. MOTION: Mike Best moved, seconded by Phil Olson, to carry Items 15a, 15b, 15c, 15d, and 15e over to the next meeting. Motion carried 5-0. 16. Paul Offerman, 9614 Crestwood Terrace The owner was not present. This site has 5.1 acres adjoining Riley Creek. The estimated market value is $306,000. The owner's opinion is $282,000. MOTION: Mike Best moved, seconded by Carol Standal, to sustain the estimated market value of$306,000. Motion carried. 2. Earl A. Ingram, 17064 Weston Bad Steve Sinell said he has worked with Mr. Ingram on the appraisal. The value is being appealed because it was assessed at $296,800. Mr. Ingram has not been satisfied with the review sent to him on April 16. The lot has 202 feet of lakeshore on Mitchell Lake. Steve Sinell was able to find three comparable properties on Mitchell Lake. All were valued in excess of$300,000. MOTION: Mike Best moved, seconded by Annette O'Connor, to sustain the estimated market value of$296,800. C. Hear Other Appeals 17. Andrea Properties, LLC, 15180 Martin Drive BOARD OF REVIEW April 22, 1999 Page 5 Mr. David Luse is president of the above company. He has had a 153% increase in valuation of the property since it was acquired in July 1998 for$157,000, after deducting the back rent of$15,843. He paid $5,000 for purchase of abandoned railroad property. The City's estimated market value is $191,000 and $13,000. He compared this property to the dance studio property across the road as follows: • His parcel abuts an NSP Power Transfer Station. • Initial soil reports indicate 80 to 120 feet of peat, estimated to cost three times the soil correction required by the dance studio development($135,000). • A year ago the City identified a wetland that was obviously caused by NSP and surrounding development. This significantly impacts potential development. • In his opinion, the purchase price of$157,000 indicates the value as of July 1998. Mr. Luce would like to build on the property. The previous owner did not disclose the 153% increase in valuation a year ago when Mr. Luce had an option on the property. Steve Sinell said Mr. Luce told him the purchase price was based on an option from five years ago. He hasn't had a chance to review it. MOTION: Mike Best moved, seconded by Phil Olson, to carry this item over to the next meeting. Motion carried 5-0. 18. Georize J. Marshall, 9905 Dell Road Mr. Marshall is appealing the estimated market value of$1,950,600 deferred. He purchased the property in 1954, and has a 75-year-old farmhouse, but says his property is being assessed the same as the Settlers Ridge development. MOTION: Mike Best moved, seconded by Annette O'Connor, to continue this item to the next meeting. Motion approved 5-0. D. Schedule Next Meeting MOTION: Phil Olson moved, seconded by Mike Best, to hold the final Board of Review meeting on May 11, 1999, at 7:00 p.m. in Council Chambers. Motion carried 5-0. E. Close the Board of Review Meeting to Additional Appeals MOTION: Phil Olson moved, seconded by Mike Best, to close the meeting to additional appeals. Motion carried 5-0. III. CLOSE THE BOARD OF REVIEW MEETING MOTION: Mike Best moved, seconded by Phil Olson, to close the Board of Review meeting until May 11, 1999. Motion carried 5-0. Pat Pidcock adjourned the meeting at 8:20 p.m. BOARD OF REVIEW April 22, 1999 Page 6