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04/08/1991 BOE - 00005939� � � THE MINUTES OF THE MEETING OF THE BOARD OF REVIEW OF APRIL 8, 1991 The meeting of the Board of Review was called to order at 7:38 p.m. by Mayor Nee. PLEDGE OF ALLEGIANCE: Mayor Nee led the Council and audience in the Pledge of Allegiance to the Flag. ROLL CALL: MEMBERS PRESENT MEMBERS ABSENT Mayor Nee, Councilman Billings, Councilman Schneider, and Councilman Fitzpatrick Councilwoman Jorgenson Mayor Nee stated that there are two parts to the Council meeting this evening, the first being the meeting of the Board of Review and the other is the Regular City Council meeting. He stated that the purpose of the Board of Review is to determine if the estimated market value meets the standards of fairness and equity. Mr. Leon Madsen, City Assessor, introduced Mr. Starky and Mr. Barck of the Anoka County Assessor's Office. He stated that they would answer any questions regarding the values placed on apartments or mobile homes. He stated that this Board of Review meeting is to hear from property owners regarding their 1991 assessment which will affect the taxes payable in 1992. He stated that notices of valuation were sent to all property owners advising them to contact the City Assessor's Office if they wished to appear before the Board of Review. Mr. Madsen stated that his office received a number of calls and were able to resolve most of the questions raised. He stated that the cases where an agreement could not be reached will be presented this evening. He stated that the Board'of Review has the authority to affirm the valuation placed on a property or to increase or decrease the value. He stated that, however, no increases in the valuation can be made if the property owner is not present. Mayor Nee stated that a property owner will have the right to appeal to the County if they are not satisfied with the Pindings of this Board. He stated that there is an appeal process, and if a property owner wishes to appeal to the County it is important that this be known. JAMES AND MARLENE BAUER, 7630 BACON DRIVE: Mr. Bauer stated that the value of his home rose over $16,00o due to his addition and he wished to protest this increase. He stated BOARD OF REVIEW MEETING OF APRIL 8. 1991 PAGE 2 � that he has no idea on the selling price for homes in his area, with the exception of the property at 7665 Bacon Drive. Mr. Madsen stated that his office felt a comparable home was the property at 1437 - 76th Avenue which sold for $112,900 and has a value of $98,600. He stated another home that would be comparable is at 7665 Bacon Drive. Mr. Madsen stated that the main reason for Mr. Bauer's increase in value was because of the addition. Councilman Billings stated that the average value of comparable homes in the area is $97,600, and he would be willing to reduce the value on this property by $6,800. Councilman Schneider asked Mr. Bauer what he believed was a fair value. He stated that he felt $93,000 was fair based on the selling price o£ other homes in the neighborhood. MOTION by Councilman Schneider to reduce the estimated market value on the property at 7630 Bacon Drive by $6,600 to $93,000. Seconded by Councilman Sillings. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. � Mr. Bauer stated that he was satisfied with this value and would not appeal to the County. ROGER AND DEBORAH HARMON. 5498 WEST DANUBE ROAD: Mr. Harmon sta�ed that he purchased this property last summer for $130,000 and his market value is over $154,000. Mr. Harmon stated that there are other homes in �he area that sold for considerably less than the estimated market values. He stated that these homes were located at 5528 West Danube Road, 1479 Danube Road North, 1467 Innsbruck Drive North, and 1600 Innsbruck Drive. Mr. Harmon stated that the home at 5250 St. Imier Drive sold for $136,000 and had an estimated market value oP $128,700. He stated that this home is similar to his home in size but has a better lot and two fireplaces. He stated that the total square footage for this home is 1,752, and his home has 1,958 square feet with the addition. Mr. Madsen stated that in his comparison of sales in the Innsbruck area they did not go back any further than 1990. He stated that he felt the sale at 1425 North Innsbruck Drive was an excellent comparable. He stated that the size is within 100 square feet and is the same age as Mr. Harmon's home. He stated that the property at 5250 St. Imier Drive was constructed in 1965, and Mr. Harmon's � home was built in 1979. � �I � SOARD OF REVIEW MEETING OF APRIL 8, 1991 PAGE 3 Councilman Billings stated that he would like to have an opportunity to look at Mr. Harmon's property. MOTION by Councilman Billings to continue this item to April 22, 1991. Seconded by Councilman Fitzpatrick. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. Councilman Schneider stated that he was concerned about the square footage value as Mr. Harmon's sale stands out that it was a remarkable buy. ROGER MOBERG, 1601 NORTH INNSBRUCK DRIVE: Mr. Moberg stated that he wished to protest the value placed on his property. He stated that he paid over 550,00o and could not even sell it for $38,000. He stated that this unit is a two bedroom located on the third floor, and the estimated market value is $40,800. He stated that in 1988 there were forty units £or sale with only seven being sold. Mayor Nee asked if the seven units that were sold were HUD foreclosures. Mr. Moberg stated that he did not know what type of sale was involved. He stated that it would be easier to sell if there was an assumable mortgage. Mr. Madsen stated that this is a problem area, and the values have been reduced yearly from 1983 with the exception of 1988. He stated that there have been two very distinct markets, the HUD activity and the open market. He stated that the HUD sales really are not a market sale and, in tracking sales in 1989 and 1990 of non-HUD units, the ratio is 90 to 92 percent. Mr. Madsen felt that the values were less than the selling prices on the open market for these units, but he would not argue that this is a difficult market. He stated that this is true for condominium sales throughout the country. Councilman Schneider asked if all the units were appraised the same. Mr. Madsen stated that third floor units have sold for more, and there is indication they are worth more than those on the ground level. Mr. Moberg stated he is shocked that HUD values are not considered because it seems this is a real meaning as to what the property is worth. Mr. Madsen stated that there are two different marketing scenarios, one is the government selling and wanting to cut their losses, and the other market is for those who sell at their leisure. � BOARD OF REVIEW MEETING OF APRIL 8, 1991 PAGE 4 Mayor Nee asked Mr. Moberq what he believed miqht be the selling price for his unit. Mr. Moberg stated that he does not have any idea but with taxes rising it would not help in selling the unit. Mayor Nee stated the history has been that the values have been adjusted down for a number of years and has decreased from last year. Councilman Schneider stated that he was sympathetic, but there are some comparables, and it seems if this value was adjusted it would be necessary to adjust all the values on these units. MOTION by Councilman Schneider to concur with the Assessor's estimated market value for this property at $40,800. Further, to note Mr. Moberg's protest in order that he may proceed with his appeal to the County, if he so desires. Seconded by Councilman Fitzpatrick. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. MIRABLAS SAJADY. 5849 - 3RD STREET: Mr. Madsen stated that Mr. Sa7ady's main concern was that he � purchased the property from HUD last year for $74,000 and it is valued at $76,600. He stated that Mr. Sa�ady has left the meeting, but stated that a realtor advised him the property was only worth $65,000. Mr. Madsen stated that his office would recommend the $76,600 value be upheld. MOTION by Councilman Fitzpatrick to reaffirm the value of $76,600 placed on this property with the stipulation that the property owner be advised that he could appeal to the County. Seconded by Councilman Schneider. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. YOAVA KLUCSAR, 1420 RICE CREEK ROAD: Mr. Klucsar stated that he wished to protest the value of $77,800 placed on his property. He stated that he has a two bedroom home with only half the basement finished and the other half is crawl space. He stated that one of the comparable homes was a three bedroom which sold for $78,900. IIe stated that even thouqh his lot is large it is not level. Mr. Klucsar stated that he was advised by Merrill Lynch Realty that his home would be worth between $65,000 and $70,OOD. He stated that another realtor advised him, if he were to sell, he could ask $75,000 but felt he should take any offer over $65,000. ' Mr. Madsen stated that the value in 1987 addition brought the value to $64,800. He there was an increase in the land value only was $61,900 and the stated that in 1989 for a total value of � BOARD OF REVIEW MEETING OF APRIL 8. 1441 PAGE 5 $69,300. He stated that in 1990 the addition was completed, a value of $77,400 was established, and this year it is $77,800. Mr. Klucsar stated that the addition was 22 by 18 feet for a bedroom and entryway. He stated that the size of his home is 920 square feet. Mr. Madsen stated that the record shows the home is over 1,100 square feet and felt this should be checked further. MOTION by Councilman Schneider to continue this item to April 22, 1991. Seconded by Councilman Billings. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. LOIS WHITE, 7736 ALDEN WAY: Ms. White stated that she has spoken with the Assessor several times and is appearing this evening to protect her right to appeal to the County. She stated that her value is $10,000 over the selling price and did not feel she should be assessed for more than she could sell her home. Ms. White stated that in 1985 she had three separate appraisals. She stated that all of these appraisals were $10,000 less than the ' estimated market value of her home. She stated that she did receive a reduction on one occasion because of the property across the street. Ms. White stated that her home has 9DD square feet and a problem with water, cracks, and constant erosion. She stated that last fall she had an appraisal and was advised, if she were to sell, to list the home for $125,000. She stated that the value on her home is $130,200. Mr. Madsen stated that in regard to the square footage, there seems to be a discrepancy as the reoord indicates the home has 1, loo square feet. Mayor Nee stated that it would be appropriate for someone in the Adsessor's Office to meet with Ms. White and, if she is not satisfied with the value placed on her property, she could appeal to the County. MOTION by Councilman Fitzpatrick to continue this item to April 22, 1991. Seconded by Councilman Schneider. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. BRUCE AND SHELDYN HIMLE, 1588 WOODSIDE COURT: � Mr. Madsen stated that a letter was received from the Himle's as they wished to go on record in order to be able to appeal to the County. � � � SOARD OF REVIEW MEETING OF APRIL 8, 1991 PAGE 6 MOTION by Councilman Schneider to receive the le�ter from the Himle's. Seconded by Councilman Fitzpatrick. Upon a voice vote, all voting a-ye, Mayor Nee declared the motion carried unanimously. MOTION by Councilman Billings to continue this meeting of the Board of Review to April 22, 1991. Seconded by Councilman Schneider. Upon a voice vote, all voting aye, Mayor Nee adjourned this meeting at 9:05 p.m. Respectfully submitted, Carole Haddad Recording Secretary Approved: William J. Nee Mayor