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HomeMy WebLinkAboutBoard of Appeals and Equalization - 04/21/2016 APPROVED MINUTES EDEN PRAIRIE BOARD OF APPEAL AND EQUALIZATION THURSDAY,APRIL 21,2016 7:00 P.M., CITY CENTER Council Chambers 8080 Mitchell Road BOARD MEMBERS PRESENT: Lyndon Moquist, Chair; Annette O'Connor, Vice-Chair; Kristin Rial, 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. 1. CALL MEETING TO ORDER The meeting was called to order by Chair Moquist at 7:00 p.m. 1I. PROCEDURAL INFORMATION BY STEVE SINELL The Board members present introduced themselves, and City Assessor Sinell introduced the staff members present. He presented an overview of the process and explained that the Board of Appeal & Equalization is a process required by State statute. Any appeals not completed this evening will be completed at a second meeting not more than twenty days later. The decision of the Board can be appealed to the County Board of Equalization. He noted the Board has usually chosen to consider first the appeals of those who are present at the meeting tonight. III. ORDER OF BUSINESS A. REVIEW APPEALS#1 THROUGH#25 AS LISTED ON THE APRIL 20, 2016 BOAE LIST AND STATUS OF APPEALS Appeal#19—Pavel Ivanov, 7236 Ticonderoga Tr. Pavel Ivanov, 7236 Ticonderoga Tr., disagreed with the 2016 assessed value of $286,300. He purchased the home in 2013 for$252,500, and it was assessed at $252,000 for 2014. In 2015 the assessed value increased to$283,600, and then to $286,300 in 2016. BOARD OF APPEAL AND EQUALIZATION MINUTES April 21, 2016 Page 2 Moquist noted the review appraisal indicates a value of$325,000. Sinell said staff looked at three comparable sales. Comparable No. 2 is three houses away from Mr. Pavlov's home, is smaller than the Pavlov residence, and was determined to be in a similar condition. That comparable sold for$283,500 in September, 2015. Mr. Pavlov stated he did not believe his home would sell for$325,000, and he believed the assessed value is usually less than the sales value. Moquist noted this body is the Board of Equalization so our purpose is to be fair. Sinell noted the assessed value is not always less than the sales price. Walker commented he knows this area well, and he believed this is a very fair assessment. The market in Eden Prairie for homes in this price range has increased and is very active. Moquist noted home prices have gone up over 20%in a two-year period for this price range, and our job here is to be sure we are fair in comparison to other homes. Thompson noted his research showed only one house in the neighborhood sold under $300,000. That house sold for$285,000, and the sales prices for the others went up to $385,000. He believed City staff did take the condition of the Pavlov property into account. Sinell said City staff does not make a decision based on percentages. If the assessor's valuation is at the median, the assessor has met the market. The assessed value for the home at$286,300 is actually undervalued. He noted the property was a foreclosure, and we understood there were some conditions on the property that needed to be fixed. Walker noted foreclosures had been running 15-20% below market value; however, part of the jump between 2014-2015 came from the values going back to a real market value. He believed Mr. Pavlov was the beneficiary of a very fair assessment. Mr. Pavlov said Comparable No. 2 was completely renovated before it was sold, and he did not think the poor condition of his property was properly considered. Thompson noted the value was reduced by $40,000 for the condition when the assessed value was determined.Moquist said the review appraisal came in at $325,000 and is very typical for this type of house. Mr. Pavlov asked the Board members to review photos of his property that showed the poor condition.He noted the only improvement he has made to his property is to replace the windows on the basement level. Rial asked if there are two kitchens in the house. Mr. Ivanov replied there are two. Sinell noted it has handicapped access. O'Connor noted there is some work to be done on Mr. Pavlov's property, but $40,000 should take care of it. Rial said the market is shifting up, and,with two kitchens, six bedrooms and a walls-out basement, she believed the assessed valuation was fair. BOARD OF APPEAL AND EQUALIZATION MINUTES April 21, 2016 Page 3 MOTION: Thompson moved, seconded by Walker, in Appeal#19 to affirm the value at$286,300. Motion carried 5-0. Appeal#25 —Dave & Karen Miller, 19108 Twilight Tr. Dave Miller, 19108 Twilight Tr., said in 2015 they made a lot of changes in their property, including tearing down the original home. It was rezoned from Rural to R1- 13.5 in 2015 to allow for the construction of a new house and to allow for future development. He said they filed for a building permit and,as of January 2, 2016, only the foundation for the new house was completed. He expected that the value would have gone down since there is just a foundation and a garage. Pike said the property was rezoned so it could be divided in the future. Mr. Miller said the new foundation was situated so they could get another house on the property in the future,but they believed the land value was the same as before. O'Connor noted the lot is almost 1-1/2 acres and asked what it was assessed at.Mr. Miller replied it was assessed at $220,000, and noted they have no easement onto Hwy 101. O'Connor then asked if what remains on the lot is the pool and the garage. Sinell said there is also the new foundation.O'Connor then noted she has sold lots in Eden Prairie for more than $220,000. Moquist asked where the new foundation is situated.Mr. Miller said the original house was on the middle of the lot,but the new foundation was shifted to the west toward Twilight Trail. Mr. Miller said he would incur close to $30,000 in fees for the new house which would decrease the value of the land. O'Connor noted he would probably pass along the fees if the lot is subdivided. Moquist asked about the staff recommendation to continue the appeal. Sinell said the property was just appealed this week, so a review appraisal has not been completed. O'Connor commented she had no problem with the assessed value. Sinell said they could put together a review appraisal, but it wouldn't be lower because by State statute they have to set the value on the property for the construction in place at the time. On January 2, 2016, there was a new foundation,a pool and a three-car garage on the property, and it had been rezoned in order to build another house elsewhere on the property. The question is whether it is worth at least 220,000. O'Connor said the value of a 1.3- acre lot zoned for residential in Eden Prairie is more than$220,000. BOARD OF APPEAL AND EQUALIZATION MINUTES April 21, 2016 Page 4 MOTION: O'Connor moved,seconded by Walker, in Appeal #25 to affirm the value at $220,000. Motion carried 5-0. The Board next considered the appeals of those property owners who were not present at the meeting. Appeal#1 —Nguyen Family Inc., 8020 Den Rd. Moquist noted the review appraisal of$275,000 supports the original assessed valuation. Walker believed it was a fair value. Sinell said this property occupies a portion of the City liquor store on Den Road. When the City makes a spot available for private use, the property becomes taxable. It is a typical retail space. He said the exact terms of the lease cannot be published in a public document per State statute,but the lease amount is in the range of other asking rents for similar small retail spaces in the area. Buswell reviewed the three comparable sales of similar retail properties. O'Connor said retail space is valued by its exposure to traffic.Rial noted this property is located across from the Mall and next to the liquor store. MOTION: Thompson moved, seconded by Rial, in Appeal No. 1 to affirm the value at $238,000. Motion carried 5-0. Appeal#2 —Paul & Barbara Morin, 18584 Twilight Tr. Sinell said the owner and Ms Pike agree the value should be reduced to $425,000. MOTION: O'Connor moved,seconded by Walker, in Appeal No.2 to reduce the value to$425,000. Motion carried 5-0. Appeal#3 —Chad Hallonquist, 7022 Donlea Ln Sinell said the owner and Ms Pike agree the value should be reduced to $558,000. MOTION: Walker moved, seconded by Thompson, in Appeal No. 3 to reduce the value to$558,000. Motion carried 5-0. Appeal#4 —Eden Prairie Development, 14301 Martin Drive O'Connor asked if this is the apartment building near Buca's. Sinell replied it is. Sams said this is the first year with the property completely constructed.Occupancy started in mid-2015, and on January 2, 2016, 192 units were completed in the building. He said income and expense information was requested in March, and they just received the information today.He said staff recommends this item be continued until May 10 to review the information provided by the owner. BOARD OF APPEAL AND EQUALIZATION MINUTES April 21, 2016 Page 5 MOTION: Rial moved, seconded by Thompson, in Appeal No.4 to continue this item to the May 10 meeting. Motion carried 5-0. Appeal#5 —Cole PM Eden Prairie MN— 11200 Prairie Lakes Drive Sinell said staff has requested income and lease information and a physical nspection. MOTION: O'Connor moved,seconded by Thompson, in Appeal No. 5 to continue this item to the May 10 meeting. Motion carried 5-0. Appeal#6—Brandon& Astrid DeWitt, 15184 Village Woods Dr. Smell said the owner and Ms Carlson agree the value should be reduced to 396,900. MOTION: Thompson moved, seconded by Rial, in Appeal No. 6 to reduce the value to$396,900. Motion carried 5-0. Appeal#7—Julie & Kui-Chiu Kwok, 18953 Firethorn Pointe Sinell said the owner and Jon Thompson agree the value should be reduced to $650,000. MOTION: Rial moved, seconded by Walker, in Appeal No. 7 to reduce the value to $650,000. Motion carried 5-0. Appeal#8 —I112 Property Illinois LP, 16481 Hilltop Rd. Sinell said by statute the local Board of Appeal & Equalization cannot lower the value when an interior inspection of the property was not allowed. MOTION: Thompson moved, seconded by Walker, in Appeal No. 8 to affirm the value at$333,700. Appeal#9 —Laurent Bobda,8758 Hawthorne Dr. Sinell said the owner and Ms Carlson agree the value should be reduced to$235,000. O'Connor asked why it was reduced from$270,700. Sinell replied they agreed to reduce the property to the October 2015 purchase price because the final inspection of the property showed some deferred maintenance. MOTION: O'Connor moved,seconded by Waller, in Appeal No. 9 to reduce the value to$235,000. Motion carried 5-0. Appeal#10 —Susan &William Pauline, 8710 Bentwood Dr. BOARD OF APPEAL AND EQUALIZATION MINUTES April 21, 2016 Page 6 Sinell said the owner and Jon Thompson agree the value should be reduced to $385,000. MOTION: O'Connor moved,seconded by Rial, in Appeal No. 10 to reduce the value to$385,000. Motion carried 5-0. Appeal#11 —Jon & Holly Osters, 12210 Jasper Ln. Sinell said the owner and Ms Carlson agree the value should be reduced to$468,000. MOTION: Thompson moved, seconded by Walker, in Appeal No. 11 to reduce the value to$468,000. Motion carried 5-0. Appeal#12 —Christopher Razain,9727 Sky Lane Sinell said the owner and Mr. Buswell agree the value should be reduced to $1,000,000. MOTION: Rial moved, seconded by Thompson, in Appeal No. 12 to reduce the value to$1,000,000. Motion carried 5-0. Appeal#13 —Juan Rodrilluez, 18100 Dane Dr. Sinell said the owner and Mr. Sams agree the value should be reduced to$558,000. MOTION: Thompson moved, seconded by Walker, in Appeal No. 13 to reduce the value to$558,000. Motion carried 5-0. Appeal#14 —Pioneer Holdings, LLC,18515 Pioneer Trail Sinell said the owner and Mr. Sams agree the value should be reduced to$165,000. Sams said conservation easements take about half of the property, so there is about one acre for building. He said they looked at what the minimum potential would be for the property. MOTION: Walker moved,seconded by Thompson, in Appeal No. 14 to reduce the value to$165,000. Motion carried 5-0. Appeal#15 —Kirk Larson, 18748 Pathfinder Dr. Sinell said the owner and Mr. Sams agree the value should be reduced to$515,000. MOTION: Thompson moved, seconded by Walker, in Appeal No. 15 to reduce the value to$515,000. Motion carried 5-0. Appeal#16—James Yi, 9861 Crestwood Ter. BOARD OF APPEAL AND EQUALIZATION MINUTES April 21, 2016 Page 7 Sinell said the owner and Ms Carlson agree the value should be reduced to$218,000. MOTION: O'Connor moved,seconded by Thompson, in Appeal No. 16 to reduce the value to $218,000. Motion carried 5-0. Appeal#17—Paul & Heather Anderson, 10963 Chapman Pt. Sams said the property was just inspected this afternoon.It was sold in December 2015 for$596,900. There is some deferred maintenance and lack of updating.He said after review and inspection of the property he agreed with the owner that the value should be reduced to$596,900. Staff will review the property again next year. Thompson asked if there was any moisture damage. Sams said there was some, and the Anderson's bought the house "as is." MOTION: Rial moved, seconded by Thompson, in Appeal No. 17 to reduce the value to$596,900. Motion carried 5-0. Appeal#18 —Dehua Yang, 10708 Sonoma Ridge Sinell said the owner and Mr. Buswell agree the value should be reduced to$870,000. MOTION: Thompson moved, seconded by Walker, in Appeal No. 18 to reduce the value to$870,000. Motion carried 5-0. Appeal#20 —Glenn Schultz, 7431 Bittersweet Dr. Sinell said the property was sold in March 2015 for$202,000. There is an inspection scheduled for Friday,April 22, so staff would like to continue this to May 10. MOTION: Thompson moved, seconded by Walker, in Appeal No. 20 to continue this item to the May 10 meeting. Motion carried 5-0. Appeal#21 —Edenvale Property Owner, 7600 Executive Dr. Buswell said this is industrial/office property. Staff has scheduled an inspection for April 27 and has requested additional financial information. MOTION: Thompson moved, seconded by O'Connor, in Appeal No. 21 to continue this item to the May 10 meeting. Motion carried 5-0. Appeal#22 —LSOP 2 MN,LLC,7660 Golden Triangle Dr. Sinell said staff has tentatively scheduled an inspection for April 27 and has requested financial information. BOARD OF APPEAL AND EQUALIZATION MINUTES April 21, 2016 Page 8 MOTION: Thompson moved, seconded by Rial, in Appeal No.22 to continue this item to the May 10 meeting. Motion carried 5-0. Appeal#23 —Michele & Gabriel Loor, 9707 Sky Ln Sinell said the owner and Mr. Buswell agree the value should be reduced to$850,000. MOTION: O'Connor moved,seconded by Thompson, in Appeal No. 23 to reduce the value to $850,000. Motion carried 5-0. Appeal#24 —MTS Systems Corp., 14000 Technology Dr. Sinell said an inspection is scheduled for Friday, April 22. MOTION: O'Connor moved,seconded by Thompson, in Appeal No. 24 to continue this item to the May 10 meeting. Motion carried 5-0. B. HEAR OTHER PERSONAL AND WRITTEN APPEALS FROM SIGN-UP LIST Appeal#26—Dorothy Severson, 10660 Northmark Dr. Sinell said this appeal was just received this evening. Thompson asked if the owner indicated what the value should be. Carlson said she just indicated the value is too high. Staff will schedule an inspection of the property. MOTION: O'Connor moved,seconded by Thompson, in Appeal No. 26 to continue this item to the May 10 meeting. Motion carried 5-0. C. SCHEDULE NEXT MEETING Sinell said the next meeting of the Board of Appeal & Equalization is scheduled for Tuesday, May 10, 2016. D. CLOSE THE BOARD OF APPEAL &EOUALIZATION MEETING TO ADDITIONAL APPEALS MOTION: Walker moved,seconded by Thompson, to close the Board of Appeal & Equalization meeting to additional appeals. Motion carried 5-0. E. SIGN AND WITNESS OATHS OF OFFICE FOR BOARD & COMMISSION MEMBERS Sinell distributed oaths of office to be signed and witnessed for each of the Board of Appeal& Equalization members, along with a certificate form to be signed to indicate each of the members was present at the meeting tonight. BOARD OF APPEAL AND EQUALIZATION MINUTES April 21, 2016 Page 9 IV. CONTINUE THE BOARD OF APPEAL AND EQUALIZATION MEETING MOTION: O'Connor moved, seconded by Rial, to continue the Board of Appeal& Equalization meeting to May 10, 2016. Motion carried 5-0. The meeting was continued at 8:28 p.m.