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HomeMy WebLinkAboutBOR April 13, 1995 /r ,~ _....-,'-~::>'., ~ ( .. CITY of ANDOVER . . . " . . " ;.L " 1685 CROSSTOWN BOULEVARD NW. . ANDOVER, MINNESOTA 55304 . (612) 755-5100 ,"., :,:~~-.",,_., ANDOVER BOARD OF REVIEW - APRIL 13, 1995 MINUTES The Board of Review held by the Andover City Council was called to order by Mayor Ja~k McKelvey on April 13, 1995, 7:00 p.m., at Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Councilmernbers present: Dehn, Jacobson, Kunza Councilmernber absent: Knight Also present: County Assessors: John Leone Dianna Stellmach Ed Thurston City Administrator Richard Fursman Others Stanlev Hocks, 14732 Butternut Street NW, PIN 25 32 24 11 0010 Mr. Hocks complained his valuation increased a total of $6,500 in two years, but he hasn't done anything to the place in ten years. He is retired and cannot continue paying higher taxes every year. He asked where the money goes, since the City doesn't even have its own police department. Also, he has lost most of the oak trees because of oak wilt. He had no idea what he could sell his property for. Mr. Leone explained there was a three-percent across-the-board structure increase in Anoka County last year and this year. A porch was added to the structure in 1987. He did not think the property was over valued. Mr. Leone also explained the procedure of reviewing property every four years, looking at comparable sales and valuing property between 90 and 105 percent of the market value it would support. Square feet, decks, detached garages, porches, etc., are also used to make that determination, but not landscaping or trees. No action was taken on this parcel. Otto Pfeiffer, 15400 Rose Street, PIN 20 32 24 13 0000 Mr. Pfeiffer stated the market value increased over $8,000 from last year. The house depreciates every year, and he pointed out several major items that need to be repaired. His total liveable space is only 1,892 square feet. He is semi-retired and his income is drastically reduced, so he is very concerned with constantly rising taxes and the lack of compassion for those living on fixed incomes. He invited Mr. Leone to view his property. It was agreed that Mr. Leone will visit the parcel and make a recommendation to the Council at the April 18, 1995, meeting. M~ ~ on- 5"/4'15' ~ --..- ~ -.--.---- ------ -. Andover Board of Review Minutes - April 13, 1995 Page 2 Bill Sikora, 17800 Universitv Avenue, PIN 01 32 24 11 0001 and 01 32 24 14 0002 Mr. Sikora presented a hand out to the Council of maps and documentation pertaining to the market value of the parcels. He challenged the assessment process and the valuation assigned to the vacant parcel. That 40-acre parcel has 27 acres of protected wetland and 17 acres of high ground; but of that high ground, 3 1/2 acres is inaccessible because DNR restrictions do not allow him to build a road to get to it. That basically leaves a 13 1/2-acre building site with the only access from University Extension, a dirt road which probably will not be built because he and his mother would have to pay for the one side and the City of Ham Lake would have to pay for the other side. Ham Lake has no interest in doing that. In 1991 the property was valued at $41,500, which included a 100-year-old house in need of repair. In 1992 the estimated market value went up to $42,200. He then tore down the house and had an independent appraisal done and the value was reduced by one-half. In talking with the assessor in 1994, he understood that he was being taxed a higher value, an arbitrary tax, because the property supports a building site. He challenged the tax for building sites, and the county subsequently dropped the value by $10,000. He questioned how many people in Anoka County are paying a higher rate for building sites because they do not challenge their valuations. The letters from the county do not indicate a deduction because of the "building site" tax; but it was his definite opinion that the county is trying to keep that as quiet as possible. The taxes in 1994 and 1995 remained the same at $25,600; but this year there is another 33 percent increase. Mr. Sikora then reviewed the history of the second parcel on which his home is located. In 1994 he added an addition, and the home was appraised at $132,000. Upon calling the assessor's office, it was discovered there was a mistake in the square footage of 150 to 160 feet because they squared off an area that is really a jog. The county told them they would reduce the valuation for the next tax year because it was too late to change the valuation, but that didn't happen. In 1996 the value went up from $129,100 to $133,200. He challenged these findings, thinking the process used is arbitrary and flawed. He didn't think residents should have to arbitrate the valuation every year. He has done this three years in a row and doesn't want to do it any more. He's prepared to go to the County Commissioners. Mr. Leone again explained they do not "deal" with the residents; they look at the market value, what it would sell for. They looked at the land valued at $1,900 per acre for the high land and $300 per acre on the low land. Counci1mernber Jacobson felt since the county lowered the value last year because of an error as noted in the letter before them, then the five to six percent increase in valuation should be escalated from the value set in the letter. Mr. Leone stated he was not aware of the reduction in the valuation. -" . -- -"--- --...- -- -. ---- - - -. Andover Board of Review Minutes - April 13, 1995 Page 3 MOTION by Jacobson, Seconded by Kunza, to reduce the taxes payable on the valuation of $25,600 in 1995 and raise it the average price of six percent that is paid by everybody in the City across-the-board this year. DISCUSSION: Mr. Leone stated there was no specific increase in Andover except the three-percent structure increase for everyone in Anoka County. Councilmernbers, residents, and Mr. Leone discussed the differences in valuations of properties at various locations in the City and other factors that may affect them. Councilmernber Jacobson noted the reason for the motion is because the county made an adjustment, and any valuation increase should be taken from that adjusted figure. Motion carried on a 4-Yes, I-Absent (Knight) vote. Mr. Sikora stated he is willing-to let the issue on his house ride. He's lived in the community for 44 years, and it has gotten to the point where having land is a liability. He build his house for $23,000 and has paid $32,000 worth of taxes on it to date! Mr. Schliep, 14616 Hopi Street, PIN 30 32 24 13 0022 Mr. Schliep recently moved from Eden prairie after looking for homes for over three years. The amenities provided there were fabulous, but they moved because of the exorbitant taxes. Because of all the frustrations, they purchased their house for more than they thought it was worth just to be able to get on with their lives. But in the 1 1/2 years they have been here, taxes have increased $21 a month, and they are continuing to rise. The house was on the market for an extensive period of time before they purchased it. It was valued at $141,900 when they purchased it. For 1996 it is being valued at $169,000, which is an increase of $19,000 in two years. He didn't feel the house appreciated that much; nothing has been done to it. He did not think he could sell the house for that much, that the neighborhood would not support that valuation, that the cost of the taxes will soon outstrip the value of the house, that the taxes do not provide as many perks as they do in Eden Prairie, and that in checking the county's records the taxes paid vary widely from house to house with no apparent reason for the differences. He also questioned if the City was trying to force the former owner out because he had a business in his home. Mr. Leone stated the City does not control nor tell the county how to set the valuations; there is no correlation between the City's business and the county's. Mr. Schliep paid $173,900 for the house in 1993, which is less than the valuation for 1996. It is a one- acre parcel. Mr. Schliep argued they paid too much for the house because of the frustrations over the past three years of getting a home, but they also looked at the county's valuation and calculated the taxes based on that rate. They are $50,000 higher than the other houses in the development. They have done nothing to the house since they purchased it. They cannot continue to support this type of increase. He is also afraid of the costs of sewer and water coming -~ -_.- ". Andover Board of Review Minutes - April 13, 1995 page 4 into the area, which has been rumored. Mr. Leone explained the three-percent structure increase and looked at the purchase price in 1993. He also reviewed the square footage and other statistics of the property. Council also noted the service for the tax dollar is not the issue this evening; it is to value the land and property. They also noted the structure increase comes to about $5,000, and the property is still valued for less than the purchase price in 1993. The Mayor also noted the projection for the ability to provide sewer for that area has been 20 years or more. Also, the City's policy is to provide those utilities only upon petition by the residents unless there is a health hazard. The Council took no action on this parcel. Linda Gibson, 15961 Oneida Ms. Gibson was at the meeting but had to leave before being able to address the Council. She asked that her name be entered into the record. Robert Garin, 2770 174th Lane, PIN 04 32 24 43 0011 Mr. Garin stated the property value for 1995 was $123,700; and the proposed valuation of 1996 is $137,000, that is an increase of $13,300. He didn't understand how it could be worth $13,300 more in one year. Mr. Leone stated he was through that area last year but was unable to gain access to the house at that time. The valuation increased the three percent structure increase, plus an arbitrary increase is assigned when they are not able to enter the home. It was agreed that Mr. Leone will view the parcel and make a recommendation for the April 18, 1995, continued Board of Review. Rich Dwver, 2639 174th Lane, PIN 04 32 24 43 0005 Mr. Dwyer stated he has not done any improvements to the three- bedroom rambler. It is a nice house; but at the rate it is going, he will not be able to live in Andover because of the taxes. The house valuation increased from $140,300 in 1994 to $152,900 in 1995; and the only improvement was the installation of air conditioning. He felt it is very, very unfair to raise his valuation with no information. Nothing has been done in his basement. He is not trying to sell his house; just live in it and try to raise his family here. But at this rate, he won't be able to live here. It is a nice neighborhood, but there is no City sewer and water. They don't mind paying taxes; but if this rate of increase continues, there is no way they can continue. Mr. Leone explained the lot value increased from $23,500 to $28,400. Mr. Dwyer paid $157,000 for the house in 1989, and it is now being valued at $152,900. In looking at the sales of - -- -.' - - - -. ------- "-- ---- -'.- ¡ 1 Andover Board of Review Minutes - April 13, 1995 Page 5 properties, the biggest increases have been in lot values this year. The discussion continued with Council, various residents in the audience, Mr. Leone and Mr. Thurston detailing the system used to determine market value. The assessors pointed out residents are free to approach their office at any time to ask for a re- evaluation of their properties. The residents expressed frustration at the high increases and fear that such increases will continue in the future. The Council pointed out their hands are often tied because of requirements passed by the State legislature and urged the residents to express their concerns to the legislators. There is also an attempt to get more business in the City, which would help the tax situation. The Council also felt in Mr. Dwyer's case, with the valuation being less than the purchase price six years ago, that it is not that far out of line. No Council action was taken. Another gentlemen declined to address the Council except to say he was very disappointed in the whole process. He built a house two years ago at a cost of $144,000. Now his valuation is $191,000. This seems to be out of control, and he is worried about what will happen next year. Mr. Leone explained it is not the intention to value anyone out of their house. If the house was built by the owner, there is some equity that they cannot dismiss when determining the market value. Mr. Thurston explained the sales "window'· they analyze took place between October, 1993 and September, 1994, when the interest rates were low and the market was very active. They saw some dramatic changes in values. They follow the market, not create it. He did not think they will see things escalating the way they have over the last couple years. MOTION by Jacobson, Seconded by Dehn, to continue the Board of Review until the City Council meeting on Tuesday, April 18, for a report back on the re-evaluation of the Otto Pfeiffer property and the Robert Garin property. Motion carried on a 4-Yes, I-Absent (Knight) vote. The meeting was continued at 8:58 p.m. Respectfully submitted, . lV~lÀ~^- Q ~~J___ Mar el1a A. Peach Recording Secretary - _.,- ------ -- -~.--.-