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HomeMy WebLinkAboutBoard of Appeals and Equalization - 04/28/2015 UNAPPROVED MINUTES EDEN PRAIRIE BOARD OF APPEAL AND EQUALIZATION TUESDAY,APRIL 28, 2015 7:00 P.M., CITY CENTER Council Chambers 8080 Mitchell Road BOARD MEMBERS PRESENT: Lyndon Moquist, Chair; Annette O'Connor, Vice-Chair; Denise Kramer, Nate Thompson, and Todd Walker BOARD MEMBERS ABSENT: None CITY STAFF PRESENT: City Assessor Steve Sinell. Staff Appraisers: Jody Carlson, Dave Buswell, Jessica Pike, John Sams, and Jon Thompson. Hennepin County Assessor's Representative Earl Zent. Assessing Technician Lisa Ramsey and Recording Secretary Jan Curielli. I. CALL MEETING TO ORDER The meeting was called to order by Chair Moquist at 7:00 p.m. II. ORDER OF BUSINESS A. APPROVE MINUTES FROM APRIL 9, 2015 BOARD OF APPEAL AND EQUALIZATION MEETING MOTION: Thompson moved, seconded by Kramer, to approve the minutes from the April 9, 2015, Board of Appeal and Equalization meeting as published. Motion carried 5-0. B. REVIEW APPEALS CONTINUED FROM APRIL 9, 2015 Sinell said tonight the Board is being asked consider the appeals that were outstanding after the April 9, 2015, Board meeting. The appeals will be taken in order,beginning with those taxpayers who are in attendance at tonight's meeting, followed by those appeals for which no agreement has been reached, and finally those appeals where agreement has been reached. Appeal#10—Eugene Heier, 9816 Crestwood Terrace Moquist said he and some of the other Board Members were able to drive by the property. Sinell said staff has done a review appraisal and is comfortable that the BOARD OF APPEAL AND EQUALIZATION MINUTES April 28, 2015 Page 2 report is representative. The sales comparisons closely support the EMV, so they are recommending no change. Eugene Heier, 9816 Crestwood Terrace, said he disagreed with the comparables that staff selected because most of those homes had been fully updated at the time they went on the market. He suggested using the property at 14028 Vale Court as it is near his home and is somewhat the same size. That home sold for$284,000. Moquist asked when that property sold. Mr. Heier said it was February 9, 2015. Sinell said the property on Vale Court is a split level and was built in 1975. Mr. Heier's property was built in 1988. The Board Members and Sinell discussed the comparables selected by staff and other properties suggested by the Board Members. Moquist noted the Heier property is located in a nice neighborhood that has transitions around it. Sinell said it was somewhat difficult to find comparables because there were very few ramblers built during the 1980's, which means most of the ramblers that could be used would not be the same age. Mr. Heier said his neighborhood has $1,000,000 homes on one end, with homes built in the 1970's at the other end. He said his home has not been updated, and all of the comparables except for one were updated before they were sold. Thompson asked what the home would need if it were to be updated. Mr. Heier said it has the original carpet and linoleum floors in the other rooms. The exterior is all original except for the roof. There are repairs that would have to be done to the home before putting it on the market. Sinell said they considered Mr. Heier's home to be in normal condition and in generally good repair. It is somewhat unique as there are not many similar houses in Eden Prairie with a similar age, style, and location. It is on a half acre lot and has a nice garage with a double driveway. Thompson said his guess at the market value would be $290,000. The other Board members agreed with that figure. MOTION: O'Connor moved, seconded by Thompson, in Appeal#10 to reduce the estimated market value to $290,000. Motion carried 5-0. Appeal#31—Mike Stephan for Air Les!acy, LLC, Flyins! Cloud Airport Hangar E1-11 Mike Stephan, 7090 Utica Lane, Chanhassen, said he is objecting to the land valuation for his hangar at Flying Cloud Airport. He pays the Metropolitan Airport Commission (MAC)just less than $4,000 to rent the land. According to Minnesota statute, the City must come up with the land valuation, and he must pay personal property tax based on that valuation. That amount is now $4.25 per square foot. He said the two nearest MAC-owned airports are at Crystal and Blaine where the rates BOARD OF APPEAL AND EQUALIZATION MINUTES April 28, 2015 Page 3 are $2.00 and $2.24 per square foot, respectively. He was challenging the land value assessment of$29,000 and thought it should be $15,000 to be consistent with values in Blaine and Crystal. O'Connor noted the sales price of land in Eden Prairie would be considerably higher than the price at either Blaine and Crystal. Mr. Stephan said all three airports have the same towers and services, and all have multiple runways. He noted airport property is different from residential property. Moquist asked why Mr. Stephan had chosen to build the hangar at Flying Cloud rather than at either of the other two airports. Mr. Stephan said he did look at the South St. Paul airport where he would not have had to pay a portion of the cost to develop the MAC land;however, Flying Cloud is the most convenient for him. Moquist asked if the market is different now than when Mr. Stephan built his hangar. Mr. Stephan said the MAC opened applications in July of 2014 for the 45 buildable lots on the south side of Flying Cloud Airport. Currently there are only two buildings in that area. He believed it would be years before Flying Cloud becomes a desirable place to build a hangar. Sinell said real property that is not taxable can be taxable to an individual. person. That means in Minnesota, if non-taxable real property is made available for use of a private individual, then that individual is responsible to pay the tax as if he were the owner. In that case there is a lien against an individual rather than against the property. Moquist asked about the comparison of values on the north and south sides of the airport. Sinell said the MAC and the FAA control development at the airport, and they decide when they are ready to allow development. This appeal is on the market value we placed on the property, and Dave Buswell is recommending a total value of $235,000. That is a reduction from the original EMV of$301,000, of which $29,000 would be the land portion. He said they would consider how much other land in Eden Prairie is selling for. For example, a typical residential lot is $13.00 per square feet. They consider this land to be comparable to industrial land, which would be valued at $4.00-$5.00 per square foot. O'Connor noted Eden Prairie would be considered a more desirable airport than Blaine or Crystal. Mr. Stephan said he has $181,000 in the building as of January 2, 2015, so he disagreed with the total EMV of$235,000. Sinell said Dave Buswell works these appeals, and he compared this hangar with the one next door. He said they have to value the property on the same basis despite the sweat equity Mr. Stephan has put into the building. He said they have not done an analysis on property in other communities,but they are comfortable that this land is worth at least$4.50 per square foot. Mr. Stephan rents the space as his exclusive space and thereby gets a share of airport property. He noted there are many buildings on leased land, and this particular building is on government-owned land. BOARD OF APPEAL AND EQUALIZATION MINUTES April 28, 2015 Page 4 Mr. Stephan said every comparable used is about a commercial property, and his property is a non-commercial storage building. O'Connor noted that everybody at the airport pays the same. Moquist noted this is still land, and the location does matter. Walker said he did not think all airports would have equal value. Sinell said they try to factor in all the different parts of the value, and they believe the $4.25 figure is conservative. The value of the building next door to Mr. Stephan's is at $4.25 per square foot. MOTION: O'Connor moved, seconded by Thompson, in Appeal#31 to set the value at$235,000. Motion carried 5-0. Appeal#16— Shravan Par2al, 16997 New Market Drive Sinell said the EMV is $451,800, and the review appraisal set the value at$485,000. Staff recommends no change. MOTION: Walker moved, seconded by Thompson, in Appeal#16 to affirm the value at$451,800. Motion carried 5-0. Appeal#18 - Nicholas Je_iel, 8760 Darnel Road Sinell said Mr. Jejel agrees with the staff recommendation to reduce the EMV to $283,000. MOTION: Walker moved, seconded by Thompson, in Appeal#18 to reduce the value to $283,000. Motion carried 5-0. Appeal#37 - Mike Lupo, 17742 Steadin2 Road Sinell said staff is recommending no change. Moquist said he had found some comparables that had sold in late 2014 around $490,000, so he thought there was some potential to lower the value slightly. Sinell noted the Lupo property has a walkout. MOTION: Walker moved, seconded by O'Connor, in Appeal#37 to affirm the value at$513,400. Motion carried 5-0. Appeal#38 - Stephanie Nyhus for American Family Mutual Insurance,6131 Blue Circle Drive Sinell said he has spoken several times with Ms Nyhus. He and Jon Thompson looked at the property on April 21. They have recently completed an $8,000,000 renovation of the property. BOARD OF APPEAL AND EQUALIZATION MINUTES April 28, 2015 Page 5 O'Connor asked if the property is all American Family. Sinell said that is why the value is only $75.00 per square foot. The typical 20-year old building would be in the $100 range. Hennepin County Assessor's Representative Earl Zent said he is familiar with the market in Eden Prairie and also oversees valuations of property in all of Hennepin County. The office market is coming back, and they have seen amazing prices for sales of older office space in the last six months. He noted the company would be able to get back the costs of renovation if they were to sell the property. Sinell said he encouraged Ms Nyhus to have an appraisal done so they know what the property is worth; however, she still does not agree with the EMV. The company has options available to go to the County Board or to go straight to the Minnesota tax court. MOTION: O'Connor moved, seconded by Thompson, in Appeal#38 to accept the value of$14,975,000. Motion carried 5-0. Appeal#22 - Ronald Weeks, 11063 Bell Oaks Estate Road Sinell said Mr. Weeks and John Sams have agreed that the value should be reduced to $1,250,000. MOTION: Thompson moved, seconded by Walker, in Appeal#22 to reduce the value to $1,250,000. Motion carried 5-0. Appeal#24 - Karen Kirchoff, 18560 Farmstead Circle Sinell said Ms Kirchoff and John Sams have agreed that the value should be reduced to $405,000. MOTION: O'Connor moved, seconded by Kramer, in Appeal#24 to reduce the value to $405,000. Motion carried 5-0. Appeal#25 - Richard Muller, 14343 Golf View Drive Sinell said Mr. Muller and Jessica Pike have agreed that the value should be reduced to $298,000. MOTION: Thompson moved, seconded by Kramer, in Appeal#25 to reduce the value to $298,000. Motion carried 5-0. Appeal#26 - Helen Pearlman, 11333 Landing Road Sinell said Ms Pearlman and John Sams have agreed that the value should be reduced to $664,700. BOARD OF APPEAL AND EQUALIZATION MINUTES April 28, 2015 Page 6 MOTION: O'Connor moved, seconded by Walker, in Appeal#26 to reduce the value to $664,700. Motion carried 5-0. Appeal#27 - Sharon Wong, 13418 Essex Court Sinell said Ms Wong and Jody Carlson have agreed that the value should be reduced to $340,000. MOTION: Thompson moved, seconded by Kramer, in Appeal#27 to reduce the value to $340,000. Motion carried 5-0. Appeal#28 - Peter Anderson, 11112 Mount Curve Road Sinell said Mr. Anderson and John Sams have agreed that the value should be reduced to $595,000. MOTION: Thompson moved, seconded by Walker, in Appeal#28 to reduce the value to $595,000. Motion carried 5-0. Appeal#30 - Paul Schulz, Flyins! Cloud Airport Hangar 50A Sinell said Mr. Schulz and Dave Buswell have agreed that the value should be reduced to $125,000. MOTION: O'Connor moved, seconded by Kramer, in Appeal#30 to reduce the value to $125,000. Motion carried 5-0. Appeal#32 - Ghassan Safi, 10219 Mooer Lane Sinell said Mr. Safi and Jessica Pike have agreed that the value should be reduced to $250,000. MOTION: O'Connor moved, seconded by Kramer, in Appeal#32 to reduce the value to $250,000. Motion carried 5-0. Appeal#33 - Brenda & Robert Boroszko, 6560 Tanager Lane Sinell said the Boroszkos and Jody Carlson have agreed that the value should be reduced to $355,000. MOTION: Thompson moved, seconded by Kramer, in Appeal#33 to reduce the value to $355,000. Motion carried 5-0. BOARD OF APPEAL AND EQUALIZATION MINUTES April 28, 2015 Page 7 Appeal#34 - Tom Baker, 8485 Red Oak Drive Sinell said Mr. Baker and Dave Buswell have agreed that the value should be reduced to $485,000. MOTION: O'Connor moved, seconded by Kramer, in Appeal#34 to reduce the value to $485,000. Motion carried 5-0. Appeal#35 - CPG Leasing, LLC, Flyins! Cloud Airport Hangar E1-12 Sinell said the owner and Dave Buswell have agreed that the value should be reduced to $260,000. MOTION: O'Connor moved, seconded by Thompson, in Appeal#35 to reduce the value to $260,000. Motion carried 5-0. Appeal#36 - Ram Subramanian, 15323 Plumstone Drive Sinell said the appeal was cancelled by the taxpayer on April 15, 2015. MOTION: O'Connor moved, seconded by Thompson, in Appeal#36 to affirm the value of$464,600. Motion carried 5-0. C. SIGN BOARD OF APPEAL AND EQUALIZATION DOCUMENTS Sinell asked the Board members to sign the Board of Appeal and Equalization documents. III. ADJOURN THE 2014 BOARD OF APPEAL AND EQUALIZATION MEETING MOTION: O'Connor moved, seconded by Walker, to adjourn the Board of Appeal and Equalization meeting. Motion carried 5-0. The meeting was adjourned at 8:30 p.m.