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City Council - 05/16/1988 - Board of Review APPROVED MINUTES CITY OF EDEN PRAIRIE BOARD OF REVIEW MONDAY, MAY 16 , 1988 6: 30 PM, COUNCIL CHAMBERS 7600 Executive Drive BOARD OF REVIEW MEMBERS: President of the Board Gary D. Peterson , Richard Anderson, George Bentley, Jean Harris , and Patricia Pidcock BOARD OF REVIEW STAFF: City Manager Carl J. Jullie, Assistant to the City Manager Craig Dawson, City Assessor Steve Sinell , and Recording Secretary Jan Nelson PLEDGE OF ALLEGIANCE ROLL CALL: All members were present. I . RECONVENE BOARD OF REVIEW MEETING The meeting was called to order by President of the Board Peterson . II . APPROVAL OF BOARD OF REVIEW MINUTES OF MEETING HELD THURSDAY, APRIL 28 , 1988 The following addition was made to the Minutes : page 14 , Item 1003 -- add PID number 24-116-22 22 0219. MOTION: Bentley moved , seconded by Anderson, to approve the Minutes of the Board of Review meeting held Thursday, April 28 , 1988, as amended and published . Motion carried with Harris abstaining . III . REVIEW OF ITEMS CONTINUED FROM APRIL 28, 1988 City Assessor Sinell stated those items referred by the Board at its April 28th meeting had been reviewed by the City Staff. In order to expedite matters, Anderson suggested that the Council consider as one motion those items on which the owners agreed with the Staff recommendations. MOTION: Bentley moved, seconded by Pidcock, to sustain the Staff recommendations for the 1988 Estimated Market Values on the follow- ing properties : i 2 . Kay & Arlen Westling - 24-116-22 34 0043 - . $172, 200 6. Thomas L. Swirtz - 05-116-22 14 0042 - $148 , 500 R, fi Board of Review Minutes 2 May 16, 1988 9. Paul Welin - 04-116-22 42 0045 - $54, 000 10 . Ronald L. Moeller - 25-116-22 22 0009 - $231,200 22. Lee Lobstein - 03-116-22 34 0015 - $112, 000 23 . Byron & Kristine Anderson - 05-116-22 24 0034 - $94, 000 24 . Alvin & Mildred Bren - 10-116-22 1.4 0011 - $172, 000 25. James Miller - 23-116-22 23 0020 - $112, 800 36. Eugene Dix - 06-116-22 43 0017 - $89, 200 1004. Linda & Dan MacDonald - 05-116-22 31 0064 - $135, 700 1005. David W. Lee - 24-116-22 34 0019 - $94, 000 1006. Daniel J. Heltness - 24-116-22 34 0020 - $94,000 1012 . Bruce & Ruth Ann Hirmer - 24-116-22 43 0056 - $90,400 24-116-22 43 0057 - $90,400 1013. Elfering Construction - 06-116-22 33 0014 - $147, 000 06-116-22 33 0077 - $71 ,000 06-116-22 33 0078 - $72,000 E 1014 . Thomas & Debra Wilson - 35-116-22 21 0096 - $122, 000 1015. Ronald & Leslie Ezerski - 03-116-22 41 0004 - $257, 900 1016. John & Diane Hockert - 08-116-22 41 0013 - $100,600 1018 . William Diers - '23-116-22 31 0003 - $112, 500 1027. Elton M. Nelson - 08-116-22 41 0033 - $88,400 1028 . Jeff Miller - 04-116-22 43 0047 - $110,300 Mike Flynn noted that he also agreed with the Staff recommendation for his property. MOTION: Pidcock moved, seconded by Bentley, to amend the motion to include Item 28. , Mike Flynn - 05-116-22 31 0016 - $95, 100. Motion to amend the motion carried unanimously. i a VOTE ON THE MAIN MOTION.: Motion carried unanimously. F The Council then reviewed each remaining item in turn. 1. Stan Volp - 03-116-22 42 0005 - 13252 Cardinal Creek Road Mr. Volp asked Mr. Sinell to explain the form. Sinell ex- plained the review appraisal conducted Dn Mr . Volp's property. Hoard of Review Minutes 3 May 16 , 1988 r Volp said he questioned the fairness of the appeal process as he understood that some residents had their assessments lowered just by making a phone call to question the amount. Sinell said there were no reductions based on phone calls and that review appraisals were conducted on all appellants ' properties. Bentley said he didn ' t appreciate Mr. Volp' s comments regard- ing unfair treatment. He said the assessment process is done very fairly and equitably and the purpose of this meeting is to consider those cases where errors may have been made. He said there is nothing in the process that indicates people just called and got their assessments lowered. He then re- viewed the process used for the assessment reviews. Pidcock said she thought it was Mr . Volp's right to describe his experience and there was no need for the Board members to engage in a dissertation on thi3 matter . Peterson asked when the property was physically reviewed . Sinell responded that it was reviewed November 11, 1987 . MOTION: Anderson moved, seconded by Bentley, to sustain the 1988 Estimated Market Value on the Volp property, PID 03-116-22 42 0005, at $260 , 800. Motion carried unani- mously. ; 4 3. Mary Jane Swanson - 29-116-22 11 0001 (Primary) 29-116-22 12 0007 (Secondary) S Ms. Swanson was not at the meeting . Sinell said it was a difficult appraisal because there were no good comparable properties; however the comparables used were very close in many respects. He noted that the second property is still a legal buildable site. MOTION: Bentley moved , seconded by Anderson, to sustain the original 1988 Estimated Market Value on the Swanson proper- ties , PID 29-116-22 11 0001 at $200,400 and PID 29-116-22 12 0007 at $41, 900. Motion carried unanimously. 4 . Richard & Karen Fyock - 03-116-22 41 0005 - 13188 Cardinal Creek Road Mrs. Fyock asked if the appraisal was determined strictly on sales in 1987. Sinell said the -assessor found three properties that were most comparable to their home that had sold and adjusted for the differences in those compar- ables. Sinell asked Mrs. Fyock what their opinion of the value is. Mrs. Fyock said the property value has not gone up any since they purchased it. She said they would not have paid as much oi. Board of Review Minutes 4 May 16 , 1988 for their home had they known about the market value in the neighborhood and the tax structure . Mrs. Fyock asked if homes that have not sold increase in value . Sineli said all the properties in Cardinal Creek were appraised for January 1988. Mrs. Fyock said another property in their neighborhood sold for $280, 099 in December , 1987, and that was appraised at $267, 000 and had the same square footage as their home . Peterson asked if they were saying that their house is not worth $283, 700. Mrs. Fyock said that no one is going to buy it when there is such a steep rate of increase in the appraisal values. Bentley noted that the recommended value is less than the amount they paid for the property. Mr. Fyock said other properties in the same cul-de-sac have not increased . Sinell said each property is considered on z its own basis when a property is revalued . MOTION: Pidcock moved to reduce the 1988 Estimated Market Value on the Fyock property, PID 03-116-22 41 0005 to $270, 000. Pidcock said there was a pretty convincing case that there were some comparables not used that were right next door to them. She said she knew from first-hand knowledge that Cardinal Creek properties have not been selling at what they previously sold for; therefore she thought that amount would be fair . Harris said she didn 't think we know what the fair market value is and she didn ' t feel prepared to set a value tonight. MOTION DIED FOR LACK OF A SECOND. MOTION: Anderson moved to set the 1988 Estimated Market Value on the Fyock property, PID 03-116-22 41 0005 at $285, 000 . Pidcock noted the original EMV was $283,700.. ANDERSON WITHDREW THE MOTION. MOTION: Harris moved, seconded by Anderson, to reduce the 1988 Estimated Market Value on the Fyock property, PID 03-116-22 41 0005 to $277, 000 . Harris said this splits the difference between $283, 700 and $270, 000 . VOTE ON THE MOTION: Motion carried unanimously. Board of Review Minutes 5 May 16, 1988 5. Chi Won Sohn - 23-116-22 21 0020 - 8735 Darnel Road Mr . Sohn was not present at the meeting . MOTION: Pidcock moved, seconded by Anderson, to sustain the 1988 Estimated Market Value on the Sohn property, PID 23-116- 22 21 0020 at $109,600. Motion carried unanimously. 12. Timothy Dunphy - 05-116-22 33 0031 - 17300 Peterborg Road Mr . Dunphy was not present at the meeting . MOTION: Harris moved , seconded by Pidcock, to reduce the 1988 Estimated Market Value on the Dunphy property, PID 0 5-116-22 33 0031 to $104, 700. Motion carried unanimously. 14 . Raymond Rice - 17-116-22 24 0015 - 8010 Island Road Mr . Rice distributed some additional data regarding his review appraisal . He said his home was 73% completed on December 31, 1986 while the assessor says it was 62% com- pleted at that time . He said he protested the use of comparables from Olympic Hills as he did not think his area (Timber Lakes) was comparable to that area . Anderson asked if the property was on lakeshore and, if it was, how many of the homes Mr. Rice used as comparables are on lakeshore. Rice said one of the homes down from him is on lakeshore and has been on the market for about a year . He said another one that is on the lakeshore is also not selling. Anderson then asked if he was on the wooded point . Rice said he was on the south side of the point. Anderson asked if Mr . Rice thought that was not a unique lot that would raise the value of his property. Rice said he could not deny that it was a beautiful lot. Rice said his point was that the house was 73% complete, not 62% at the time of the original valua- tion . He said he would estimate the home was worth around $3 00, 000. Bentley asked if he had paid $316, 000 for the lot and proper- ty. Rice said the actual cost of the package was $300 , 000 but he would stand by $316, 000. Based on the area and the location of the house, Bentley said he thought of the house, property values have appreciated since Mr. Rice moved in . He said he had added an amount of increase to arrive.. at a figure in the $325,000 range. He said he would like to have seen some comparables that were somewhat closer to the affected property. Rice said the highest sale in Weston Bay was $2200000; how- ever , the Board had instructed the assessor to go back in the area and come up with comparables. 1 J s Board of Review Minutes 6 May 16 , 1988 MOTION: Bentley moved, seconded by Pidcock, to reduce the ! 1988 Estimated Market Value on the Rice property, PID 17-116- 22 24 0015 to $325, 000. Motion carried unanimously. 15. Larry Olson - 08-116-22 14 0050 - 7351 Walnut Court Mr . Olson was not present at the meeting. MOTION: Harris moved, seconded by Anderson, to sustain the 1988 Estimated Market Value on the Olson property, PID 08- 116-22 14 0050 at $120, 100. Motion carried unanimously. 17. Ronald E. Neher - 04-116-22 43 0081 - 14860 Ironwood Court Mr. Neher said the last time he was here he had not gone through the comparables process to establish the value of his home . Comparables not withstanding, he said he still feels the house is overvalued at $172, 100. Sinell asked if Neher had a realtor appraise his home. Neher said he had not. Peterson said the two comparable values are very close and would seem to support the estimated value. Neher said that at the starting point of the sales price, his home would be less because his original selling price was lower. Sinell asked if there was some duress on the part of the seller to sell Mr . Neher ' s property. Neher said the seller had already moved out of town . MOTION: Anderson moved, seconded by Harris, to sustain the 1988 Estimated Market Value on the Neher property, PID 04- 116-22 43 0081 at $172, 100 . Motion carried unanimously. 18. Douglas Olsen - 21-116-22 42 0008 - 9030 Staring Lane W. Mr. Olsen said the appraiser was out to look at his property and told him before the comparables were done he thought the value was $68 , 000. Olsen said he told the appraiser he would like to see the comparable study. He said the comparables indicated a value of $81000. Olsen said his house is listed as being built in 1967 when it was actually built in 1961. Sinell said, based in the error in the age of the house, he calculated that the value should be $5,000 lower . MOTION: Harris moved, seconded by Bentley, to reduce the 1988 Estimated Market Value on the Olsen property, PID 21- 116-22 42 0008 to $72, 900. Motion carried unanimously. ' 19. Bruce Marzolf - 08-116-22 33 0018 - 7680 Atherton Way Peterson said Mrs. Marzolf had phoned to say that neither of them could be present. He said the Marzolfs had an appraisal because they are considering selling their home. 9 x Board of Review Minutes 7 May 16, 1988 The appraisal indicated a value $7 , 000 less than the Estimated Market Value. Sinell noted that the realtor appraisal showed three compar- ables that ranged from $88, 700 to $98,700. Pidcock asked if he agreed with that appraisal . Sinell said it is a market analysis, not an appraisal. MOTION: Anderson moved, seconded by Pidcock , to reduce the 1988 Estimated Market Value on the Marzolf property, PID 08-116-22 33 0018 to $92, 300. Motion carried unanimously. 20. Russell & Sandra Stephens - 05-116-22 41 0052 - 16029 Baywood Lane The Stephens were not present at the meeting . Peterson asked what value the Stephens were suggesting . Sinell said their suggested market value was $192, 500. r MOTION: Bentley moved, seconded by Anderson, to sustain the 1988 Estimated Market Value on the Stephens property, PID 05-116-22 41 0052 at $209, 500. Motion carried unanimously. F C 26. William Hargens - 21-116-22 42 0010 - 9060 Staring Lane W. Mr . Hargens was not present at the meeting. g MOTION: Bentley moved, seconded by Anderson, to sustain the 1988 Estimated Market Value of the Hargens property, PID 21-116-22 42 0010 at $103, 400 . Motion carried unani- mously. At this point a member of the audience requested that the Board consider the appeals of those who were present in the audience before the other appeals.. The Board agreed and considered the remaining appeals in that manner . 29 . Dean & Kathryn Johnson - 24-116-22 32 0009 - 9170 Flyway Circle Mrs. Johnson referred to her letter of May 16th which out- lined the reasons why they are appealing their valuation. She said she didn ' t believe they could get $204,000 for their home and she didn ' t think the comparables used were appropriate . She said she chose her own comparables , five of which were on her own block, and compared 1988 market values to square footage for her chosen comparables. She said all of her neighbors have lower market values than hers. 3 E Sinell said her comparables were not sold properties and she had assumed that all the houses were equal except for size . Board of Review Minutes 8 May 16, 1988 Harris asked what the market value represented. Mrs . Johnson said it is the value in the books at the assessing office, so it should be the current market value. MOTION : Bentley moved, seconded by Anderson , to reduce the 1988 Estimated Market Value on the Johnson property, PID 24-116-22 32 0009 to $196,990 . Motion carried unani- mously. 31 . John Swanson - 06-116-22 41 0024 - 6626 Boyd Ave. Mr . Swanson said his EMV as of January 1, 1988 was $195, 000 and that has been reduced to $182 , 000 after the review appraisal and a reduction for items that have not been completed . He reviewed a comparison he had completed of houses in the area, which he reviewed for the Board . He noted that his is the largest house in the neighborhood. Sinell said the comparables used in the assessor ' s review were all in the neighborhood and most of them required only minor adjustments. He said the comparables supported the original appraisal and that most of the sales in the neighborhood were over $150, 000. MOTION: Bentley moved, ,seconded by Harris, to reduce the 1988 Estimated Market Value of the Swanson property, PID 06-116-22 41 0024 to $182 , 000. Motion carried unanimously. 37. Gary Reynolds - 05-116-22 43 0016 - 16630 Baywood Terrace Mr. Reynolds said he thought we should be comparing the Estimated Market Values since his home has not sold and there is no actual sales value for the property Peterson asked him if he meant he would like to compare the Estimated Market Value of the comparables at the time of sale. Reynolds said he thought that was a more equitable way of comparing the properties. Bentley said there are standard, conventional means of doing the assessment process and he would prefer to not deviate from those means. Peterson said the City 's process follows the instructions from the State and the County. Reynolds said that none of the comparable properties have a value of 100% of the sales price. Peterson noted that many properties do have such a value with some over and some under that figure. Peterson said Mr . Reynolds could take his philosophy to the County level and try to persuade them to change their methods. Reynolds said in that case he would then use gross square footage , which would produce a price per square foot. He said his property figures out to $98. 53 per square foot while the comparables ' square footage averages $78. 80. He R f i i Board of Re%iiew Minutes 9 May 16, 1988 said he would like to know why there is such a large variation . Bentley said he believed you can ' t take one aspect of the valuation process and use that for the basis of determining whether one property is higher in value . He noted that the size of the properties has been discounted one way or another on the sales comparison study. MOTION: Harris moved, seconded by Pidcock , to sustain the 1988 Estimated Market Value on the Reynolds property, PID 05-116-22 43 0016 at $128, 100. Motion carried unanimously. 1023 . Michael McNamara - 24-116-22 43 0038 - 10260 & 10270 Tarn Circle Mr . McNamara said he had an appraisal done by Edina Realty for his own taxes that was $164, 000. He said he had tried to sell it and another realtor told hi►n he would be lucky to get $140,000. He said the assessor told him the review appraisal was at $167, 000 and he did not agree with that amount. a Sinell said the assessor used a comparable on the same street to arrive at his review appraisal although the compar.ables were sold as single units rather than one large unit as Mr . McNamara requires. i MOTION: Bentley moved, seconded by Anderson, to reduce the 1988 Estimated Market Value on the McNamara property, PID 24-116-22 43 0038 to $167, 000. Motion carried unani- mously. 1024 . Carol Burnett - 26-116-22 41 0033 - 9940 Bennett Place Ms. Burnett said her valuation jumped $10,000 in one year and she didn' t understand how that could be since the house is not finished, there is no sewer and water, and many trees were removed for the road. In addition there are no improvements at all to the house. Peterson asked if the increase was due to increased land value. Sinell said the 1987 value was $130 # 700 while 1988 is $136, 100. He said the increased value is due to infla- tion and a lot of the value is in the land. He said the area is undergoing changes and the property is surrounded by developments. He said the assessor was also directed to look at the highest and best use of the property to see I whether the house contributed to the value. The assessor ' s conclusion was that the house does contribute to the value . 0 y MOTION: Bentley moved, seconded by Harris, to reduce the 1988 Estimated Market Value on the Burnett property, PID 26-116-22 41 0033, to $132, 700. Motion carried unanimously. I r Board of Review Minutes 10 May 16 , 1988 At this point President of the Board Peterson turned over the chair to Board Member Bentley. 1026. Gary Ernst - 21-116-22 22 0013 - 15851 Summit Drive Mr. Ernst said he is in an area where there is no sewer and water and where there are very few two story homes. He noted that all three comparables are in a different area and he thought they were not very comparable since there were too many things to adjust for . He said a comparable in his neighborhood sold in 1986 and he didn' t understand why that couldn ' t be used since that was a better comparable. President of the Board Peterson resumed the chair at this point . Sinell asked Mr. Ernst what he thought the house was worth. Ernst said he thought it was worth about $135,000 since it was built for $120, 000 including the lot. He said he had put on a deck and finished the basement since purchasing the property. MOTION: Pidcock moved, seconded by Harris, to reduce the 1988 Estimated Market Value on the Ernst property, PID 21-116-22 22 0013, to $140, 000. Motion carried unanimously. 1029. Robert T. Callan - 24-116-22 31 0017 9051 High Point Circle Mr . Callan said he thought he could sell his property for $128, 000. He objected to the comparables used because of the square footage and the quality of construction . Bentley said he thought the market comparison was valid . MOTION: Bentley moved, seconded by Anderson, to sustain the 1988 Estimated Market Value on the Callan property, PID 24-116-22 31 0017, at $133, 200 . Motion carried unani- mously. 38 . Otto Halstenson - 23-116-22 14 0031 - 8965 Preserve Blvd . 38a. Ermin Windschill- 23-116-22 14 0032 - 8967 Preserve Blvd . Mr . Halstenson was not present at the meeting nor was Mr . Windschill . Bentley said he had a hard time with the increase suggested by the assessor after the review appraisal. Sinell noted that the second unit had just been sold. MOTION: Anderson moved, seconded by Pidcock, to sustain the 1988 Estimated Market Value on the Halstenson property, PID 23-116-22 14 0031 at $157, 200 and on the Windschill property, PID 23-116-22 14 0032 at $140,900. Motion carried unanimously. Board of Review Minutes 11 May 16, 1988 1017. Michael W. Dunn - 23-116-22 42 0062 - 9044 Preserve Blvd . MOTION: Harris moved , seconded by Pidcock , to reduce the 1988 Estimated Market Value on the Dunn property, PID 23-116-22 42 0062 to $210, 000. Motion carried unanimously. 1022. Northwood Gas Co. , Inc. - 03-116-22 22 0019 03-116-22 22 0021 03-116-22 22 0022 MOTION: Pidcock moved, seconded by Anderson , to sustain the 1988 Estimated Market Value of the Northwood Gas Co. , Inc. properties, PIDs 03-116-22 22 0019, 03-116-22 22 0021, 03-116-22 22 0022 at $800, $76, 000, and $57, 500, respec- tively. Motion carried unanimously. MOTION: Pidcock moved, seconded by Bentley, to accept the assessors ' recommendations for the 1988 Estimated Market Value on the following properties: 27. Andrew W. and Susan G. Wolf - 23-116-22 24 0078 - $59, 400 30 . Michael Sutton - 26-116-22 14 0018 - $45, 000 10-116-22 21 0001 - $32, 500 10-116-22 21 0002 - $33, 500 W 32. William & Wanda Carpenter - 04-116-22 21 0014 - $103 , 700 33 . Lee Garber - 04-116-22 43 0050 - $128, 800 35. Bihari Desai - 17-116-22 .12 0058 - $72, 900 1001 . Donald Paton - 17-116-22 13 0026 - $95, 300 1002. Mark Peterka - 23-116-22 42 0063 - $262, 700 1003 . Bruce Eliason - 25-116-22 23 0022 - $248 , 900 24-116-22 22 0219 - $56,000 1007 . Donald Sabinske - 08-116-22 33 0010 - $116, 300 1019. David & Jeanne Mooty - 03-116-22 31 . 0003 - $309, 100 i 1020 . Nancy & Jeff Lukens - 04-116-22 44 . 0007 - $221, 400 1021. EdTed Properties - 01-116-22 24 0029 - $193, 000 s Motion carried unanimously. IV. OTHER BUSINESS There was none. Board of Review Minutes 12 May 16, 1988 V. ADOPTION OF RESOLUTION NO. 88-87, ACCEPTING THE 1988 ASSESSMENT MOTION: Bentley moved, seconded by Harris, to adopt Resolution No. 88--87, accepting the 1988 assessments. Motion carried unanimously. Bentley said he wanted to compliment Mr. Sinell and his staff on the excellent job they did on the 1988 appraisal process . VI . ADJOURNMENT MOTION: Anderson moved, seconded by Pidcock, to adjourn the meeting at 10 : 05 PM. Motion carried unanimously. 4 a