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HomeMy WebLinkAboutBoard of Appeals and Equalization - 04/19/2018 APPROVED MINUTES EDEN PRAIRIE BOARD OF APPEAL AND EQUALIZATION MONDAY,APRIL 19, 2018 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: Todd Walker CITY STAFF PRESENT: City Assessor John Sams. Staff Appraisers: Jody Carlson, Dave Buswell, Jessica Pike, Adam Swart, and Jon Thompson. Hennepin County Assessor's Representative Earl Zent. Assessing Technician Lisa Ramsey and Recording Secretary Jan Curielli. I. CALL MEETING TO ORDER Chair Moquist called the meeting to order at 7:00 p.m. II. PROCEDURAL INFORMATION BY JOHN SAMS The Board members introduced themselves. City Assessor Sams introduced the staff members present and explained the Board of Appeal & Equalization is a process that is required by State statute. He said 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. III. ORDER OF BUSINESS A. REVIEW APPEALS #1 THROUGH#27 AS LISTED ON THE APRIL 19, 2018 BOAE LIST AND STATUS OF APPEALS Appeal#1 —Christopher & Jennifer Wells, 17271 Acorn Ride Christopher Wells handed out information regarding his appeal. He has been a resident since 1997 and purchased this home in 2002. He disagreed with the estimated market value of$701,000 and believed the correct value was $650,000. He purchased a plain house from the builder in order to get into the neighborhood, and the interior is much the same as when they purchased the home. There is a deviation of 20 feet in the lot from front to back, and there are several protected trees on the lot at the back BOARD OF APPEAL AND EQUALIZATION MINUTES April 19, 2018 Page 2 of the house. He disagreed with the comparable properties used by the City because two of the properties are custom homes in a custom development. The prices for those homes were priced at least$100,000 higher than his home, which reflected the difference in quality. He reviewed several photos and provided information about other properties he considered better comparables. He believed there should be increased deductions to the value of his home because of what the others have done to their homes. O'Connor noted when this home was marketed the market was very high, and there were premiums charged for amenities. Moquist asked staff to provide the City's rationale for the valuation. Sams said Ms Pike completed an appraisal of the property in March 2018. Staff is recommending a change in valuation to $690,000. Two comparable properties are in the immediate neighborhood. Staff also looked at a couple of properties that Mr. Wells researched. There were several deductions made for the comparable on Acorn Ridge that sold for $800,000 because it was a superior home, had more above-grade square footage, more finished basement area and other differences. Jennifer Wells pointed out the differences in the interiors with the photos of the three comparables they passed out. Moquist said the home that recently sold for$800,000 was amazing. He thought the $575,000 comparable is also an outlier that was quite a value for someone because there was nothing wrong with the home. He noted the Wells' property had a valuation of$687,000 for two years prior to the 2018 valuation. He commented he has not seen values being higher than those in the previous two years. O'Connor noted this year existing homes are not selling for nearly what they were. Mrs. Wells said the house next door to their home sold for$580,000 right after the $800,000 house sold, and that shows what is taking place in her area. O'Connor said realtors don't use ramblers to compare against two stories. She thought$650,00 is too low for the Wells property,but$690,000 is probably too high. Nate Thompson thought the $675,000 range would be the right valuation. MOTION: O'Connor moved, seconded by Rial, in Appeal No. 1 to reduce the value from$701,000 to $675,000. Motion carried 4-0. Appeal#2—Anthony Lando, 10531 Riverview Dr E Anthony Lando said he purchased the property in December 2015 and had two appraisals completed at that time that were slightly above the purchase price of $455,000. Since purchasing the home,he has put about$50,000 into the property for windows and siding. He noted the proposed valuation for 2018 came in at $645,000, which is a 42% increase over the original price in 2015. He disagreed with the BOARD OF APPEAL AND EQUALIZATION MINUTES April 19, 2018 Page 3 $645,000 valuation and believed the valuation should be around $535,000. He researched some other homes, including a comparable home two houses over from his that sold in 2017 for$545,000. He had three additional comparables that are very close to his house and noted the comparables used in the City's valuation were further away from his home and were not sold as recently as the comparables he researched. Sams said Jon Thompson visited the property in March. Staff's understanding is the home was a lender-owned property when Mr. Lando purchased the home. There is a significant amount of deferred maintenance in the home. He noted it is difficult to find direct comparables for this home, and staff had to reach out in terms of location and date of sale. This is a home on a secluded site with a good view. Some of the surrounding properties aren't the same size and don't have the same site amenities as the Lando property. Staff addressed some of the deferred maintenance in the appraisal and made appropriate adjustments to the valuation. Staff's conclusion is to recommend a change in the valuation to $625,000. Sams said they have pictures from 2015 when staff went through the property. It shows the windows were in tough shape, and some interior maintenance was needed. Mr. Lando said he has put in $50,000 for windows and siding, but has the soffits, fascia, and much of the interior left to do. He noted his neighbors' valuations are in the $500,000 range. Rial asked if he has a five-car garage. Mr. Lando replied there are three stalls and an area that goes back for additional parking. Part of the area near his property is a conservation area, so it is almost a shared lot. O'Connor questioned whether staff used the right comparables. Sams replied some of the comparables Mr. Lando brought tonight are not nearly the same size nor on as nice a site as Mr. Lando's property. Nate Thompson said he went through Comparable 1, and that home in okay shape but the lot is terrible. Mr. Lando noted his next door neighbor has interior upgrades. Nate Thompson asked if the lots are the same size. Mr. Lando said his neighbor's is somewhat smaller;however, the Lando's cannot do anything with their lot. Moquist asked if staff found any comparables that had similar views. Mr. Lando said his neighbors have a similar view. Moquist noted Mr. Lando took on a big project, but there is a lot of value in the land itself. He thought it is a trade-off for a nice lot but a big project. O'Connor noted that area was not a controlled development with covenants, so they did their own thing in those homes. She thought there seemed to be comparables available on Riverview Road versus Bell Oaks. Sams said they looked at as many similarities in comparables as they could in the appraisal. There are some with comparable sites, and others that are more like the BOARD OF APPEAL AND EQUALIZATION MINUTES April 19, 2018 Page 4 house itself. Staff made adjustments for the variables from property to property. He noted the house on the corner did not seem like a very good comparable to this property. Mr. Lando said he felt the 2018 value was drastically increased compared to his neighbors. He noted the windows and siding materials he used for replacement were of a cheaper quality than the originals. Moquist asked about the value in 2016. Sams replied the value in 2016 was greater. He reviewed the property himself in 2016, noticed there was deferred maintenance, and backed it off for that year. We knew staff would continue to review the property on a yearly basis as Mr. Lando began the deferred maintenance. At this point we feel the property has been significantly changed. Nate Thompson asked about the carpeting and if the property showed pretty well. Jon Thompson said the interior amenities were addressed, and it was cleaned up but not completely updated. Moquist asked about the value of the land. Sams replied we don't necessarily split the value of the land in our review. We have to list the land value and the building value, but we are more concerned about total value. We don't have many lot sales in Eden Prairie now,but staff believes the lot value would be more than $300,000. O'Connor disagreed with that lot value. Sams said this is a premium site and we believe the market would recognize that. O'Connor noted the Board members have to ask ourselves what we could sell this house for today. Sams said staff is recommending a reduction to $625,000. Rial thought the home has potential and believed it would list at around $600,000. O'Connor thought it would be below $600,000 because it still needs work. Nate Thompson said his guess would be $600,000. MOTION: Nate Thompson moved, seconded by Rial, in Appeal No. 2 to reduce the value from $645,000 to $600,000. Motion carried 4-0. Appeal#3—Michael & Marie Dunn, 8661 Red Oak Dr Sams said the owner is out of town,but has said he may want to address the Board at the May 8 meeting. Staff has completed the review appraisal and are recommending we hold the current value at$327,600. Moquist said he would like to give the owner an opportunity to address the Board. MOTION: Nate Thompson moved, seconded by Rial, in Appeal No. 3 to continue this appeal to the May 8 meeting. Motion carried 4-0. Appeal#4—Ken Williams, 17163 Padons Dr BOARD OF APPEAL AND EQUALIZATION MINUTES April 19, 2018 Page 5 Sams said the owner is not here tonight but did send the email that is attached to the application. Moquist noted it looks like there was a recommendation to reduce the value to $610,000, and the owner is asking for a compromise at $580,000. Sams replied Mr. Swart reviewed the property and came up with comparables located on lakes. There has been only one recent sale of a property on Duck Lake--Comparable 4 on the staff report. That property sold in June of 2016 for$766,000. Other sales on Mitchell Lake were looked at. The appraisal used for refinance purposes did not use any sales of lake locations and used only $5,000-10,000 to account for the difference of lake property. Moquist asked what staff used as an adjustment for the lake. Sams replied they used a $40,000 downward adjustment for Duck Lake versus Mitchell Lake. There would be an upward adjustment of$25-35,000 for the lake location. MOTION: Rial moved, seconded by Nate Thompson, in Appeal No. 4 to reduce the value from $624,700 to $610,000. Motion carried 4-0. Appeal#5— Gary Simons, 7024 Tartan Cur Katie Simons said they did an extensive market analysis. The comparables used by the City were not similar and were in a different type of neighborhood. Sams said staff has not completed the review, so they would like this appeal to be continued. MOTION: Nate Thompson moved, seconded by Rial, in Appeal No. 5 to continue this appeal to the May 8 meeting. Motion carried 4-0. Appeal#9—Robert Howell & Fang Toni, 10299 Lee Dr Fang Tong, 10299 Lee Dr, said they bought their house in 2016. Their street has 28 units, and six of the houses are of the same design. She said all of the valuations of the other houses increased this year by 6%, but their house increased 10%. They are asking to be given the same treatment as their neighbors. She reviewed a table comparing the assessed values for her home and four other homes. Sams said the property was purchased in July 2016 for$242,000, and it was vacant when they purchased it. Staff went out last year to look at the property and indicated there was deferred maintenance. For 2017 we agreed to a valuation of$242,000 because of the condition of the property. At that time, we said we would look at it again in 2018 to see if any changes had been made. Ms Carlson went out to look at the property on April 16, and some of the issues had been repaired. For example, the deck had been removed. This year we said it has been brought back into a typical BOARD OF APPEAL AND EQUALIZATION MINUTES April 19, 2018 Page 6 condition, although there were no significant updates. As a result, this property went up a higher percentage than others in the neighborhood. There have been no other sales in this neighborhood since this property was sold in 2016, so staff looked at other cluster neighborhoods for comparable sites. He noted there is no percentage limit as to an increase or decrease in value; rather, the issue is what is the current market value. Moquist asked if staff factored in the previous adjustment. Sams replied the house is now in average condition, and deferred maintenance has been done. The question is whether this property would sell for$266,400 today. Moquist said there are three comparables that are very similar. Ms Tong said they are not comparable properties because those have finished basements. Rial commented these homes have really increased in value, more so than some others in Eden Prairie. O'Connor said there are many buyers who would want a house in that price range in Eden Prairie. Ms Tong said there are houses in her neighborhood that are in much better condition than theirs. O'Connor thought the current value is very fair for what you own, and that is what we have to look at. Rial commented it is difficult to find a house in this price range. Ms Carlson noted there were no updates to the interior of the house,but neither was there anything wrong with it. There is no deck and no finished basement. MOTION: O'Connor moved, seconded by Nate Thompson, in Appeal No. 9 to affirm the value of$266,400. Motion carried 4-0. Appeal#20—Joseph & Me2an Levitt, 6933 Autumn Terr Joseph Levitt, 6933 Autumn Terr, said the City came out this week and appraised the property. They purchased the home in March 2015 for$282,500 and have done nothing to the property since that time. The estimated valuation was $328,200, which was $46,000 more than their purchase price. Prices in the neighborhood range from $287-297,000 so he did not think the valuation was correct. Sams said they were just out to the property on the 17f and have not completed the review. MOTION: O'Connor moved, seconded by Rial, in Appeal No. 20 to continue this appeal to the May 8 meeting. Motion carried 4-0. Appeal#6— Timothy Meman, 7664 Superior Terr Sams said they need time to complete the review appraisal. BOARD OF APPEAL AND EQUALIZATION MINUTES April 19, 2018 Page 7 MOTION: O'Connor moved, seconded by Nate Thompson, in Appeal No. 6 to continue this appeal to the May 8 meeting. Motion carried 4-0. Appeal#7— Cynthia Reeve, 7668 Superior Terr Sams said they need time to complete the review appraisal. MOTION: O'Connor moved, seconded by Rial, in Appeal No. 7 to continue this appeal to the May 8 meeting. Motion carried 4-0. Appeal#10—Rohan Preston, 11600 Landing Rd Sams said they need time to complete the review appraisal. MOTION: O'Connor moved, seconded by Nate Thompson, in Appeal No. 10 to continue this appeal to the May 8 meeting. Motion carried 4-0. The Board then reviewed Appeals #11 — 19, the recommendations for which were agreed upon by the owner and staff. Those appeals are listed individually below, with recommendations for each appeal. All nine of the appeals are covered by one motion following Appeal#19. Appeal#11 —Kristina Louwasie, 6296 Coteau Tr Recommendation: Reduce the value from$818,200 to $760,000. Appeal#12—Bruce Paradis, 12550 Beach Cir Recommendation: Reduce the value from$320,000 to $250,000. Appeal#13 —John & Mary Howarth, 15820 Eden Dr S Recommendation: Reduce the value from$345,200 to $305,000. Appeal#14—CGCMT 2006-05 Property Portfolio, LLC, 775 Prairie Center Dr Recommendation: Reduce the value from$20,000,000 to $19,500,000. Appeal#15 —Lian2 Zhou, 16999 Candlewood Pkwy Recommendation: Reduce the value from$514,200 to $505,000. Appeal#16—Ronen & Natalia A2am, 9011 Briar2len Rd Recommendation: Reduce the value from$469,400 to $460,000. BOARD OF APPEAL AND EQUALIZATION MINUTES April 19, 2018 Page 8 Appeal#17—Jacqueline Sladky, 14663 Queens Tr Recommendation: Reduce the value from$589,300 to $510,000. Appeal#18 —Richard Schultz, 9495 Homeward Hills Rd Recommendation: Reduce the value from$640,900 to $605,000. Appeal#19—Gautham Sampan0rama Reddy, 15420 Plumstone Dr Recommendation: Reduce the value from$574,200 to $510,000. MOTION: Nate Thompson moved, seconded by Rial, in Appeals #11-19 to reduce the value of the properties as recommended. Motion carried 4-0. Sams noted Appeals #21-27 were received after April 9, 2018, and have not yet been reviewed by staff. They are awaiting an inspection or further information on the properties. Chair Moquist read Appeals #21 —27. Those appeals are listed individually below. The seven appeals were continued to the May 8 meeting. A single motion for the seven appeals follows #Appeal 27. Appeal#21 —Kenneth Robinson, 11383 Entrevaus Dr Appeal#22—Chris Bischof as Tax Rep. for Hospitality Properties Inc., 11391 Viking Dr Appeal#23 —Chris Bischof as Tax Rep. for MMP PropCo LLC, 11576 Leona Rd Appeal#24—Chris Bischof as Tax Rep. for MMP PropCo LLC, 11552 Leona Rd Appeal#26—Jeffrey Wests!or, 7730 Smetana La Appeal#27—Jerrica Rimer, 7163 Sunshine Dr MOTION: O'Connor moved, seconded by Rial, that Appeals 21-27 will have the values assigned by staff if the property owner does not allow an inspection or it the requested information is not supplied. Motion carried 4-0. MOTION: O'Connor moved, seconded by Nate Thompson, in Appeals 21-27 to continue the appeals to the May 8 meeting. Motion carried 4-0. BOARD OF APPEAL AND EQUALIZATION MINUTES April 19, 2018 Page 9 B. HEAR OTHER PERSONAL AND WRITTEN APPEALS FROM SIGN-UP LIST Sams said one appeal was received tonight, and he recommended the Board refer the appeal back to staff for further research. Appeal#28—Jeff Jiovanazzo, 19066 Vogel Farm Tr MOTION: Nate Thompson moved, seconded by Rial, in Appeal 28 to continue the appeal to the May 8 meeting. Motion carried 4-0. C. SCHEDULE NEXT MEETING Sams said the next meeting of the Board of Appeal & Equalization is scheduled for Tuesday, May 8, 2018. D. CLOSE THE BOARD OF APPEAL & EQUALIZATION MEETING TO ADDITIONAL APPEALS Prior to the motion to close the meeting to new appeals, Lyndon Moquist read a statement from the Assessor regarding how new appeals will be handled: "Any owner or owner representative who desires to be added to the meeting agenda as an appeal may do so (written or in-person) up until the close of this Local Board of Appeal and Equalization process—which ends on the May 8" reconvene meeting." These additional appeals will: • Be entered into the meeting official record • Have the existing valuation affirmed by the Local Board • Be allowed the opportunity to have the property reviewed by the County Board of Appeal and Equalization if they apply timely to the County. MOTION: O'Connor moved, seconded by Nate Thompson, to close the Board of Appeal & Equalization meeting to additional appeals. Motion carried 4-0. IV. CONTINUE THE BOARD OF APPEAL AND EQUALIZATION MEETING MOTION: O'Connor moved, seconded by Rial, to reconvene the Board of Appeal & Equalization on May 8, 2018, at 7:00 p.m. Motion carried 4-0. The meeting was adjourned at 9:12 p.m.