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HomeMy WebLinkAboutBoard of Appeals and Equalization - 04/19/2012 APPROVED MINUTES EDEN PRAIRIE BOARD OF APPEAL AND EQUALIZATION THURSDAY,APRIL 19, 2012 7:00 P.M., CITY CENTER Council Chambers 8080 Mitchell Road BOARD MEMBERS PRESENT: Patricia Pidcock, Chair; Lyndon Moquist, Vice-Chair; Jim Johnson, Annette O'Connor, and Todd Walker BOARD MEMBERS ABSENT: None CITY STAFF PRESENT: City Assessor Steve Sinell; Staff Appraisers: Jody Carlson, Barb Cook, John Sams and Colin Schmidt; Assessing Technician Lisa Ramsey and Recording Secretary Carol Pelzel I. CALL MEETING TO ORDER The meeting was called to order by Chair Pidcock at 7:00 p.m. Pidcock asked the Board members and staff to introduce themselves. II. PROCEDURAL INFORMATION BY STEVE SINELL City Assessor Sinell presented an overview of the process and explained that the Board is appointed by the City Council to hear appeals on value classification. This evening is the first meeting of the Board and they have up to 20 days to complete the process with May 8 being the last day for consideration. Sinell pointed out all of the Board members have had formal training by the Department of Revenue. He reminded everyone that State law requires the determination of property value and not market value. Sinell presented the definition of market value explaining market value is usually the selling price of the property. Prices obtained as a result of forced sales should not be considered nor is it the highest value, lowest value or average value; it is the most likely value. Pidcock reviewed the procedures that would be followed this evening in hearing the various appeals. III. ORDER OF BUSINESS A. REVIEW APPEALS #1 THRU#14 AS APPEAR ON THE APRIL 19, 2012 BOAE LIST AND STATUS OF APPEALS BOARD OF APPEAL AND EQUALIZATION MINUTES April 19, 2012 Page 2 Appeal#7 —Todd Johnson, 10020 Dell Road Todd Johnson appeared before the Board and thanked them for taking the time to hear his and everyone else's appeal. He also thanked City staff for working with him during this process. He explained he had an appraisal done of his property in July 2011 for refinancing. He believes his land and home is overvalued on a relative basis. Johnson explained the appraisal completed by a third party professional confirms the value derived from his own analysis of comparable properties. He feels the appraisal done for refinancing his mortgage is a good reflection of the current state of the market for real estate and represents an unbiased valuation and shows his land value is overstated in the proposed tax valuation. Johnson stated there are nearby similar properties located on the river bluff valued at $82,000 per acre while his parcel is valued at$105,000 per acre. He does agree that his property is unique;however, it lacks support of City services. He lives on a dirt road, has no City water or sewer and no access to cable television. Fire protection is provided through use of a tanker truck. Johnson said he has a lovely view but so does everyone else along the bluff. He asked the Board to grant him relief from the high valuation placed on his property and he wants to feel confident he is not paying more than his equitable share of taxes. In response to a question from Pidcock, Johnson said his appraisal was completed by Dean Loosbrock of Pinnacle Appraisals West, Inc. His valuation based on comparables was $1,800,000 and the City has a current proposed valuation for 2012 of$2,116,600. Moquist asked how Johnson would view his property with the others on this same street. Johnson responded that he purchased the property because of the nice view. He has a 150 degree view of the river valley. Other homes have the ability to have comparable views. Johnson said his property is somewhat unique. He originally purchased the property for$1 million and about one year later he tore down the 1970's home. His intent was to hold the property as an investment but then decided to build. Johnson said if he were to sell the home today he does not believe it would bring more than the amount the City has it valued at. Walker asked Johnson in looking at his lot location and his view,how much better does he think his property is than neighboring properties. Johnson said that is difficult to answer. He would assign a comparable value to other properties that have similar views. What he has is very unique and there are ten acres. However, it is not developable and the property will only be sold as a single private parcel. Sinell said of all the lots up and down the river bluff this is the best one. It sits on the top and juts out with a 150 degree view. It is a very unique site and is essentially one of a kind for Eden Prairie and they do not believe it is developable. Staff Appraiser Schmidt has been working with these properties for a long time. Sinell said he would like to have staff finish the appraisal. They do believe this is an exceptional piece of property. The appellant purchased the property for $1 million in 2000 and built a BOARD OF APPEAL AND EQUALIZATION MINUTES April 19, 2012 Page 3 house for$1.5 million in 2002. Sinell reviewed the values placed on this property since 2003. Board member Johnson said part of the issue he sees is the difference between the objective and subjective and it is difficult to put a number on this property. He would like to see additional information before he makes any determination in value on this property. MOTION: Motion was made by Johnson, seconded by Moquist, in Appeal No. 7 to refer this item to the Assessor to complete a review appraisal. The motion carried 5-0. Sinell said what they find on refinancing appraisals in many cases is they are conservative. Moquist asked if they weigh in how they assess other homes on the same block and if the value on that property is impacted by potential. Sinell said they will have other properties that have ten acres and are worth $1 million based on their divide plan or zoning. Appeal#1 —Martin Shaw, 10240 Tarn Circle Sinell explained this is a twin home off of Franlo and Anderson Lakes Parkway. Staff did complete an appraisal of this property and compared it to several other twin homes in the area that sold and concluded the value of this property to be at$165,000 which is less than the Estimated Market Value assigned at$178,300. Sinell said staff shared the appraisal with the homeowner who believes the property should be valued at$124,900. Johnson asked what documentation was provided to support the owner's belief that the property should be valued at$124,900. The appellant has corresponded with the City through e-mails. This was a foreclosed piece of property and was purchased for $124,900. His appraisal came in at about the sale price at$126,000. One of the problems is the broad range of sale prices on twin homes. Much has to do with the condition of the property and condition of sale and whether or not it is a foreclosure or short sale. Staff Appraiser Carlson explained she did an interior inspection of this property and they have done approximately $5,000 in improvements. There are not a lot of updates and it is not run down. The house is in average condition. MOTION: Motion was made by O'Connor, seconded by Johnson, in Appeal No. 1 to reduce the Estimated Market Value from $178,300 to $165,000. Moquist pointed out the comparables are very different from the purchase price. Walker said he believes $165,000 is high based on the recent experience of the market. Sinell explained Comparable No. 6 is the closest to this property and it is smaller and on the corner of Franlo. Moquist said the subject property does appear to be on a nice lot with a nice view. BOARD OF APPEAL AND EQUALIZATION MINUTES April 19, 2012 Page 4 Vote was called on the motion with all members voting aye. The motion carried 5-0. Sinell said part of the problem is that the date of assessment is January 2, 2012 and from their observation, the lowest end of the market is right now. Appeal#4 —Roger Rumble, 16837 Enclave Circle MOTION: Motion was made by, Johnson seconded by Moquist, in Appeal No. 4 to refer this item to the Assessor for review. The motion carried 5-0. Appeal#6—Patricia Earp, 8087 Loniz Meadow Pt. MOTION: Motion was made by Moquist, seconded by O'Connor, in Appeal No. 6 to refer this item to the Assessor for review. The motion carried 5-0. Appeal#11 — Tim O'Connor, 13597 Zenith Lane MOTION: Motion was made by O'Connor, seconded by Moquist, in Appeal No. 11 to refer this item to the Assessor for review. The motion carried 5-0. Appeal#12— Sandra Carlson, 9777 Belmont Lane MOTION: Motion was made by Johnson, seconded by Moquist, in Appeal No. 12 to refer this item to the Assessor for review. The motion carried 5-0. Appeal#13 —Robert& Rebecca Weiler, 10281 Meade Lane MOTION: Motion was made by Johnson, seconded by Moquist, in Appeal No. 13 to refer this item to the Assessor for review. The motion carried 5-0. Appeal#14 —Barbara Condit, 15220 Boulder Pointe Road Walker said he would have to excuse himself from this appeal. He has previously worked with the appellant. MOTION: Motion was made by Johnson, seconded by Moquist, in Appeal No. 14 to refer this item to the Assessor for review. The motion carried 4-0-1 with Walker abstaining. B. HEAR OTHER PERSONAL AND WRITTEN APPEALS FROM SIGN-UP LIST OUTSIDE COUNCIL CHAMBERS Appeal#15— Karen Hieb, 6745 West 192"Avenue BOARD OF APPEAL AND EQUALIZATION MINUTES April 19, 2012 Page 5 Karen Hieb said she purchased her home in 2000 for$125,900 and has seen its value go up and down. The City has her property valued at$134,100. Their appraisal was completed last Thursday and the home was appraised at$90,000. Hieb pointed out her neighbor's home is valued at $76,000. A home to the south with 1,086 square feet recently sold for$100,000. Her house has 960 square feet. MOTION: Motion was made by Johnson, seconded by O'Connor, in Appeal No. 15 to refer this item to the Assessor to complete a review appraisal. The motion carried 5-0. C. SCHEDULE NEXT MEETING The next meeting of the Board of Appeal and Equalization is scheduled for Tuesday, May 8, 2012, at 7:00 p.m. D. CLOSE THE BOARD OF APPEAL AND EQUALIZATION MEETING TO ADDITIONAL APPEALS MOTION: Motion was made by O'Connor, seconded by Moquist, to close the Board of Appeal and Equalization meeting to additional appeals. The motion carried 5-0. IV. CONTINUE THE BOARD OF APPEAL AND EQUALIZATION MEETING MOTION: Motion was made by O'Connor, seconded by Johnson, to continue the Board of Appeal and Equalization meeting to May 8, 2012. The motion carried 5-0 and the meeting was continued at 7:55 p.m.