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HomeMy WebLinkAboutBoard of Appeals and Equalization - 04/08/2010 APPROVED MINUTES EDEN PRAIRIE BOARD OF APPEAL AND EQUALIZATION THURSDAY,APRIL 8, 2010 7:00 P.M., CITY CENTER Council Chambers 8080 Mitchell Road BOARD MEMBERS PRESENT: Patricia Pidcock, Chair; Brian Duoos, Vice- Chair; Jim Johnson and Annette O'Connor BOARD MEMBERS ABSENT: Lyndon Moquist CITY STAFF PRESENT: City Assessor Steve Sinell; Staff Appraisers: Dave Buswell, 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. II. PROCEDURAL INFORMATION BY STEVE SINELL The Board members introduced themselves presenting a brief background of their experience. 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 and classification. Pidcock reviewed the procedures that would be followed this evening in hearing the various appeals. They will review appeals 3 through 10 and the status of those appeals and then hear other personal and written appeals. III. ORDER OF BUSINESS A. Review Appeals#3 through#10 as Appear on April 8, 2010 BOAE List and Status of Appeals Appeal No. 3 —NAP Southwest Station, 13560, 13570, 13580 Technology Dr., Multiple Units Sinell reported this appeal is for Southwest Condos located on Technology Drive. The original developer still owns 82 of the 237 units and is appealing the value of all 82 units. A review has been done by Assessor Buswell and this review has been shared with NAP. BOARD OF APPEAL AND EQUALIZATION MINUTES April 8, 2010 Page 2 Jane Bardin,NAP's realtor on staff, explained in 2009 it was agreed to reduce the estimated market value by $745,000 for 84 units and the 2010 assessment was reduced by 12.72 percent. Values continue to go down. The 2009 market value was $18,818,000 and the 2010 market value is $11,188,000. Bardin said they feel the 2010 estimated market value for these units should be $9,658,251 based on their estimate of$117 per square foot. Last year NAP sold six units ranging in price from $90,000 for a one bedroom to $190,000 for a smaller two bedroom, two bath unit. O'Connor asked if staff agrees the square footage cost should be the same for a one bedroom and a two bedroom unit. Buswell said the number of bedrooms do come into account. When the units were selling extremely well the one bedroom was selling in the mid $200,000's and were valued in the $140,000 range. In 2008 the 82 properties were valued at$15,450,000 and after the Board meeting the value was dropped to $12,818,000 and to $11,188,000 for 2010. NAP bases their estimated market value of $9,658,251 on eight sales; four from Southwest Station and four from Williams Place. Of those eight sales, four of them were forced sales. Buswell said he was not sure that is a good comparison to use. Sinell explained NAP took eight sales and averaged the sale price per square foot arriving at$117 per square foot totaling $9.6 million. They did not include the two properties they owned and sold which would bring that number up considerably. The two properties sold were sold for significantly more than they were valued at. City staff looked at each unit type and did a market comparison for each type. They used actual sales or non-duress sales because the Market Value Standard Code and Department of Revenue says they have to look at arm's length, traditional sales versus bank sales. Staff s review of actual sales supports their values and suggests if anything, they may be low on the value of these units. There is a lot of uncertainty because of the low number of sales. Sinell said there are 237 units in the Southwest Station property and the other 155 unit owners have not appealed their value. They cannot have a different standard of value for the property owned by NAP and the other 155 units. In response to a question from Duoos, Buswell explained one unit sold by NAP was for$190,000 with an average square footage of 1,216 for this unit type. That unit type is valued at$148,800 and NAP suggests the value should be $132,146. The second unit sold for$159,000 with an average square footage of 1,045 square feet for this unit type. Sinell said their biggest concern is that they not develop a different standard for a value because there is an appeal. MOTION: Motion was made by Johnson, seconded by Duoos, in Appeal No. 3 to affirm the original estimated market value of$11,188,000. The motion carried 4-0. BOARD OF APPEAL AND EQUALIZATION MINUTES April 8, 2010 Page 3 Appeal No. 4—Douglas Stansbury, 9439 Olympia Dr. MOTION: Motion was made by Johnson, seconded by Duoos, in Appeal No. 4 to refer this appeal to the Assessor. The motion carried 4-0. Appeal No. 5 —Jing Qian, 11056 Bell Oaks Estate Rd. MOTION: Motion was made by Johnson, seconded by O'Connor, in Appeal No. 5 to refer this appeal to the Assessor. The motion carried 4-0. Appeal No. 6—Brian & Nancy Post, 9349 Wilderness Cove Sinell explained there is some uncertainty as to whether or not the property owner wants to allow this property to be inspected. State law does not allow the Board to make changes to the value unless the property is inspected. MOTION: Motion was made by Duoos, seconded by O'Connor, in Appeal No. 6 to refer this appeal to the Assessor contingent on the taxpayer allowing an inspection. The motion carried 4-0. Appeal No. 8 and 9 —William& Joyceper, 7525 Mitchell Rd Unit 217 and Unit 219 Sinell stated these are office condo units. Inspections have been scheduled for these units. Staff also received an appeal for another 17 units at this location this afternoon and the Board will be asked to consider them later this evening. MOTION: Motion was made by O'Connor, seconded by Johnson, in Appeal No. 8 and 9 to refer these appeals to the Assessor. The motion carried 4-0. Appeal No. 10 - Hemisphere Holdinizs, LLC c/o Kurt Bromschwiiz—HA Airport Stormgar on Leased MAC Land Sinell explained this is a new storage hangar located at Flying Cloud Airport. The owner feels the value of this building should be $161,000. An inspection of the property has been scheduled. MOTION: Motion was made by Johnson, seconded by Duoos, in Appeal No. 10 to refer this appeal to the Assessor. The motion carried 4-0. BOARD OF APPEAL AND EQUALIZATION MINUTES April 8, 2010 Page 4 B. Hear Other Personal and Written Appeals Appeal No. 11 -Tom Cooney, 11055 Mount Curve Rd. MOTION: Motion was made by Johnson, seconded by Duoos, in Appeal No. 11 to refer this appeal to the Assessor. The motion carried 4-0. Appeals No. 12 thru 28 -7525 Mitchell Road, Units 100, 105, 201, 202, 203, 205, 206, 208, 301, 302, 305, 306, 308, 310, 315, 317, 319, MOTION: Motion was made by Johnson, seconded by Duoos, in Appeal No's. 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, and 28 to refer these appeals to the Assessor. The motion carried 4-0. Appeal No. 29-Mike Dewberry, 17026 Cedarcrest Drive Dewberry said he did talk to an Assessor this evening and he would like to continue this item to the next meeting so he can meet with the Assessor to discuss his value further. MOTION: Motion was made by O'Connor, seconded by Johnson, in Appeal No. 29 to refer this appeal to the Assessor. The motion carried 4-0. C. Schedule Next Meeting The next meeting of the Board of Appeal and Equalization is scheduled for Tuesday, April 27, 2010, at 7:00 p.m. D. Close the Board of Appeal and Equalization Meeting to Additional Appeals MOTION: Motion Johnson, seconded by O'Connor, to close the Board of Appeal and Equalization meeting to additional appeals. The motion carried 4-0. 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 April 27, 2010. The motion carried 4-0 and the meeting was continued at 7:35 p.m.