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Home My Public Portal About04/06/94 Board of Appeals CCM54 LOCAL BOARD OF REVIEW MINUTES OF APRIL 6, 1994 The Local Board of Review of the City of Medina, Minnesota met Wednesday, April 6, 1994 at 7:00 p.m. in the City Hall Council Chambers for the purpose of reviewing and correcting the assessment of the City for the year 1994 for taxes payable in 1995, Mayor Anne Theis presiding. Present: Board Members John Ferris, James Johnson, Ann Thies, Philip Zietlow and Mayor Anne Thies. Absent: None. Also Present: City Assessors Rolf Erickson and Ann Risch, Hennepin County Assessor Chris Bennett and Clerk -Treasurer Jeff Karlson. Ronald and Kathleen Hansmann, 2482 Holy Name Drive, said the market value of their home had increased nearly $10,000 in the last two years, from 89,000 to $98,200, and they could not understand the big increase. Rolf Erickson said the reason existing homes had increased in value so much in recent years was the excellent real estate market. He cited two reasons for this: (1) With lower interest rates, people who could not previously afford a home were now buying homes; (2) New homes were costing more to build which created a bigger demand for less expensive existing homes. Erickson said there was an especially big demand for real estate in the Medina area which was driving up land prices. Erickson pointed out that, overall, property values in Medina had increased by eight percent in the last year. John Madson, 1455 Willow Drive, said the assessment on his home had gone up from $135,500 to $152,900. He said he recently refinanced his home which had been appraised at $144,000. John Ferris pointed out that an appraisel for credit is different than an appraisel for the resale of a home. Erickson said comparisons with sales of like homes was the most important consideration. Wallace Anderson, 985 Medina Road, said his homestead classification had changed from agricultural to residential and he asked how this would affect his taxes. Ann Risch said there was no difference because his home was on "green acres." Risch said the actual market value of his two forty acre parcels was deferred. Brent Fossum, 1300 Oakview Road, said the market value of his home went up 28 percent, from $346,300 to $441,000. 55 Erickson said the classification of the home was upgraded which explained the big increase. Ferris asked why the classification changed when the house had not changed significantly since it was built in 1985. Ferris said if there was a change in classification, there should be a compelling reason for doing so. Erickson said they often have to make an arbitrary judgement by looking at the quality or the amenities of the home and comparing it to other homes of similar quality. Erickson added that they are always striving for more consistency. Dick Welk, 150 Spur Circle, said the assessment on his home increased from $596,000 to $706,000. He said he added an indoor swimming pool but was told that the pool would not increase the market value of the home. Erickson said $86,000 was added for the enclosed pool which was only 50% of its value. Erickson said the assessment would go up even higher the following year when the pool is assessed at its full value. Frank Schneider, 1675 Dusty Drive, asked why city taxes went up 46 percent in 1994. Ferris said the percentage increase he was referring to was based on the preliminary levy that was certified to the county last September. Ferris said the actual levy was much lower and the city's tax rate remained the same in 1994 as it had for the previous two years. Dave Onan, 2105 Pinto Drive, said the market value of his home had increased 47 percent in the last 10 years. He said the annual increases did not seem to be very consistent. Lenny Leuer, 3625 Chippewa Road, requested that his assesssment be lowered from $115,400 to the 1993 assessment of $102,600. He also asked the board to lower his father's properties (Leo Leuer, 3705 Chippewa) from $129,500 to $120,000 and from $6,500 to $4,000. Leuer said wells north of the recently closed Woodlake Sanitary Landfill, where their properties were located, displayed higher indicator parameters for chemical oxygen demand, chloride, conductivity, and ammonia. Leuer said his concern was for the well and the land. He said he was taking a proactive stance and would pay for any testing of the wells himself. Dan Dugan, 4125 Brockton Lane, said his assessment went from $174,100 in 1993 to 221,900 in 1994. Erickson said a new pole barn added $11,200 to the market value and the increase in land values also attributed to the increase. 56 Steve Johnson, 3452 Elm Creek Drive, said his 1994 assessment increased to $157,400 after the Hennepin Co. Board of Review had lowered his 1993 assessment from $152,500 to $147,600. Johnson said homes in his area increased an average of three percent. Erickson said they look at market values on a year to year basis. Mike Homberger, 3585 Chippewa Road, said he had to live with the same risk of water contamination as Lenny and Leo Leuer because of the landfill south of his property. Homberger said he also owned a house at 2982 Ardmore Avenue which went up in value by five and a half percent despite its deteriorating condition. Harry Benson, 1235 Oakview Road, asked what the basis was for land values going up and increasing his assessment from $496,400 in 1993 to $531,600 in 1994. He said he owned 5.23 acres of land of which half was under water. Richard Townsend, 650 Navajo Road, said his assessment increased from $427,700 in 1993 to $580,600 and he wanted to know why he received such a big increase. Erickson said his home, which was under construction in 1992, was assessed at 60% complete for taxes payable in 1994 and was now being assessed at its full value. Gordon Henderson, 2872 Ardmore Avenue, said the assessment on his buildings and lots was too high. Henderson owned eight small lots which contained his home and a three -car garage which he used as a machine shop. Erickson said they viewed his property as one site and determined its value accordingly. Dick Theis, 805 Meander Road, did not feel that the assessment on his home should have increased by $6,900 because of its deteriorating condition and its poor location along County Road 116. Theis said the home was located in a commercially zoned district but the one half acre property was too small to sell as commercial property. Theis added that the house was not worth fixing up because his property and others could potentially be bought up and used as commercial property. Tom Ely, 2455 Tamarack Drive, said the market value of his home increased to $213,000 which he felt was too high. Erickson agree that the property may have been assessed too high and recommended that it be lowered to $194,000. Anthony Sundin, 1525 Hackamore Road, said the estimated market value of his home increased to $117,700. The land was assessed at $45,200 which he felt was too high. 57 Ron Rogers, 2152 Medina Road, submitted a letter to the board objecting to the increase in his assessment which went from $292,700 in 1993 to $321,800 in 1994,,a 10° ircreaEe. Rogers aid his home was 25 years old and had not changed considerably. Erickson said the assessment could be reduced $12,000 to $14,000 based on the effective age of the house. BOARD ACTION Moved by Ferris, secr3A,ed by Mayor Theis, to reduce the 1994 assessments of the following property owners for taxes payable in 1995: 1. John Madson, 1455 Willow Dr., from $152,900 to $150,000 2. Brent Fossum, 1300 Oakview Rd., from $441,000 to $411,000 3. Lenny Leuer, 3625 Chippewa Rd., from $115,400 to $107,700 4. Leo Leuer, 3705 Chippewa Rd., from $129,500 to $126,000 and from $6,500 to $4,000 5. Mike Bomberger, 3585 Cipppewa Rd., from $87,100 to $84,000 6. Harry Benson, 1235 Oakview Rd., from $531,600 to $516,000 7. Dick Theis, 805 Meander Rd., from $75,900 to $69,000 8. Tom Ely, 2455 Tamarack Dr., from $213,000 to $194,000 9. Anthony Sundin, 1525 Medina Rd., from $117,700 to $107,700 10. Ron Rogers, 2152 Medina Rd., from $321,800 to $308,000 Motion passed unanimously. Moved by Ferris, seconded by Zietlow, to adjourn the meeting at 11:16 p.m. Motion passed unanimously. Anne E. Theis, Mayor ATTEST: