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HomeMy WebLinkAboutBOR April 26, 2001 CITY of ANDOVER City of Andover Board of Review April 26, 2001 Call to Order - 7:00 pm 1. Board of Review 2. Adjournment CITY of ANDOVER ANDOVER BOARD OF REVIEW -APRIL 26, 2001 MINUTES The Andover Board of Review was called to order by Mayor Mike Gamache on April 26, 2001, 7:02 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Council members present: Don Jacobson, Mike Knight, Ken Orttel Councilmember absent: Julie Trude Also present: Finance Director, Jim Dickinson City Administrator, John Erar Anoka County Assessor, John Leone Anoka County Assessor, Ken Jagusch Intern, Jenni Sicard Others ANDOVER BOARD OF REVIEW Kathv Truelrv. 5314 169th Lane NW. R 123225240021 Ms. Truelry explained they built their home two years ago as a totally accessible rambler. They feel the market value on the home is too high. It is what they paid for it. She provided a list of materials and costs the builder summarized to make their house accessible, which added considerably to the cost of the house. She did not feel they would get the amount it is valued for because the market for handicapped accessible homes is very limited and most people in that market do not have the financial ability to pay that much for a home. They built the house for their 22-year-old son, their only child, who became a paraplegic six years ago. They plan for this to be his life-time home. They looked for other ramblers sold in Andover the last quarter of last year, but most of them have more land than they do. The house is valued at $397,900. The chair lift alone cost $10,000 but is necessary for their son to access the basement to turn off water, the furnace, etc., in case of an emergency. The numbers the assessor has are correct relating to the house and property. It is built over sized for a two-bedroom rambler. Mr. Jagusch explained unfortunately they deal with market value of the property, not the cost. They look at what it will sell for, not what it cost to build. He suggested the possibility of trying to get tax relief through the Minnesota Department of Revenue local government special needs to put them in a special homestead classification. Andover Board of Review Minutes - April 26, 2001 Page 2 (Andover Board of Review, Continued) Ms. Truelry stated they looked into that. They would have to pay the cost of transferring title to their son, though they pay the mortgage, just to save $200 in taxes. It is not worth it. It only applies to values through $80,000. She thought the value of the entire property exceeds what they would be able to get for it. They want to have the valuation reduced closer to what it was the previous year. They have not had any market analysis or appraisal done on their property. Mr. Jagusch noted two comparable sales of handicapped accessible housing in Andover with similar or smaller acreage which sold for more than the market value of the Truelrys. From the evidence they see, the market value of these homes are competitive, though they rnay be up for sale for a longer period of time because of the limited market. The valuation is still five percent below what they paid for it in 1999. The increase from 2000 to 200 I reflected the change from an uncompleted value while the house was being built to the full value. He also noted they are always trying to assess at market value. Council found no errors in the assessment numbers or formula. While sympathizing with the situation, they did not feel there was anything they could do. It was suggested Ms. Truelry appeal at the County Board of Review in June. Charlie Veiman. 13646 Crooked Lake Boulevard. R 33322431 0007 Mr. Veiman provided the Council with copies of documents to support his position. He stated he contacted people in the neighborhood about the increase in taxes and found the average to be I3 to 15 percent. His increase was 41 percent. In 1999 his valuation was $91,900. In 2000 injumped to $144,300. He talked to Mr. Leone to explain the county took 27 feet of easement when they reconstructed Bunker Lake Boulevard. As a result, he lost the ability of splitting off one lot, which has been verified in writing by the City's Building Official, Dave Almgren. With that, Mr. Leone reduced his valuation this year ffom $161, I 00 to $142,400. His house is the oldest in the neighborhood. It was originally a school house, and he renovated it. It is very nice inside, but there are very narrow stairs going to the basement. He is objecting to the increase from $91,000 to $142,000. His attorney advised him to attend the meeting this evening. He did not bring the appraisals that were done when the county took additional easement. Mr. Leone reviewed the assessment calculations and noted the increase to which Mr. Veiman is objecting occurred last year. The window of opportunity to contest that value has passed. This hearing deals with the 200 I valuation, payable taxes in 2002. That valuation has been reduced from $161,100 to $142,400 because the widening of Bunker Lake Boulevard resulted in the ability to split only two lots rather than three. Council found no errors in the assessment numbers or formula. It was also noted that the increase being disputed occurred last year and cannot be dealt with at this hearing. It was suggested Mr. Veiman appeal at the County Board of Review in June, bringing along all documentation to support his position. Andover Board of Review Minutes - April 26, 2001 Page 3 (Andover Board of Review, Continued) Mr. Jagusch noted the following letters of appeal from residents: Mr. David Oldham. 15187 Bluebird Street NW. R 233224320011 Mr. James Neilson. 4949 NW Marvstone Boulevard. R I3 32 25 44 0028 Motion by Orttel, Seconded by Jacobson, that the Board note that we had objections to valuations from Kathy Truelry and Charlie Veiman, and both were found to be not valid or addressable by this Board. There are also two other appeals entered into the record. No action was taken. Motion carried on a 4- Yes, I-Absent (Trude) vote. Motion by Knight, Seconded by Jacobson, to close the Board of Review. Motion carried on a 4- Yes, I-Absent (Trude) vote. The meeting was adjourned at 7:58 p.m. Respectfully submitted, 1V\~~vL Marcella A. Peach Recording Secretary