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HomeMy WebLinkAboutBOR - April 23, 2009 C I T Y 0 ` r ,e %gN v J 4 �.".'1 ANDOVER BOARD OF REVIEW APRIL 23, 2009 — MINUTES The Annual Board of Review was called to order by Acting Mayor Julie Trude at 7:00 p.m., Thursday, April 23, 2009 at the Andover City Hall, 1685 Crosstown Boulevard NW. Andover, Minnesota. Councilmembers Present: Sheri Bukkila, Don Jacobson, Mike Knight Councilmembers Absent: Mayor Mike Gamache Also Present: Jason Dagastino, Anoka County Residential Assessor John Leone, Anoka County Commercial Assessor Jim Dickinson, City Administrator Mike Ducklow, Appraiser Molly Johnson, Appraiser Acting Mayor Trude noted that official notices of the public meeting had been sent to the homes of residents and is posted outside the Council Chambers. She advised that they would only be reviewing assessments from the current year. Vacant properties with no address (PID 25- 32 -24 -42 -0004, 25- 32 -24 -41 -0008, 25-32-24-41 - 0012, 25-32-24-41-0003, and 25- 32 -24 -31 -0003) Mr. Dagastino noted that these properties are all owned by the same property owner and advised that it is an ongoing appeal and would remain open at this time. Shawn Weinand -1188 Station Parkway (PID 34- 32 -24 -42 -0021) Mr. Leone advised that he had been working with this property owner and this appeal would also remain open at this time. Mr. Dagastino advised that he had received 204 calls this year and explained that 95 percent of those calls were residents that were confused in the process. He advised that he then explains the process, timeframe, and rules and regulations used to set the values of the properties. He advised that he had conducted reviews of homes that had not been visited recently and was able to help 100 percent of those people. He advised that the price had been lowered when possible and when not possible the reason was noted. Mr. Leone advised that he had received five calls for vacant lots.. He advised that the value of the commercial condo office type buildings had dropped. Councilmember Jacobson explained if residents do not agree with the decision made by the Board tonight they could continue their appeal to the County. Andover Board of Review Meeting Minutes —April 23, 2009 © Page 2 Mr. Dagastino reported that there had been a decrease of 11.5 percent in overall value, the median sale price was $268,000 in 2008 and dropped to $234,000 in 2009. He advised that different areas of the County have dropped differently, such as lake homes remaining the same and townhomes dropping considerably. He explained market value to be the price an educated buyer and seller would consider in an open arms length transaction. He advised that short sales and foreclosures are not used in the market value determination. He advised that although about 45 percent of the sales in the last year were bank sales, there were still a number of open aims length transactions within the City to use in determining market value. Joyce Wikkin 3322 143` Avenue NW (29- 32- 24 -44- 0043); Larry Larson 3252 143` Avenue NW (29- 32- 24 -44- 0036); Elizabeth Bohn, 3312 143` Avenue NW (29- 32 -24 -44 -0042) Mr. Dagastino explained that there are 11 Woodland Creek Townhomes and the value has dropped drastically. He stated that there were many calls received that the value had not been dropped enough. He advised that he strives to reach the value that the home would sell for on the open market. He advised that the value was $375,000 on January 2, 2008, reported the property to have around 2,200 square feet, and explained that the price dropped to $243,700. Ms. Bohn advised that the sale the value was based on was a foreclosure sale. She thought that the value should be higher as two of the sales in the past two years were foreclosure sales. © Councilmember Jacobson questioned what information the value is based on. Mr. Dagastino advised that he had received several calls in regard to the golf course that has not opened and is still in doubt of being developed. He advised that the callers did not think that the homes would be sold at the price level. He advised that one home had sat on the market at $319,000 for 243 days. He advised that the value had been set in January and the foreclosure sale took place after that date had no impact on his valuation of the home. He felt that he set the price correctly on the townhomes. He advised that the home was originally on a golf course and is no longer. Mr. Leone questioned what criteria the residents are looking at to set a value and questioned what value they actually thought to be correct. Ms. Wikkin questioned if the taxes would drop by 30 percent to match the drop in the value of the property. Councilmember Jacobson advised that it would depend on the amount of the levy set next year. Ms. Wikkin questioned if mortgages are taken into account in valuing the homes. Mr. Dagastino advised that he does not use mortgage amounts in the valuation of the home. Andover Board of Review Meeting Minutes —April 23, 2009 © Page 3 Acting Mayor Trude questioned the size of the lots and what the effect of the golf course area would have on the townhomes. Mr. Dickinson advised that most of the homes along the golf course would generally be higher value homes. He advised that some property owners will see increase in value and some would see decrease, but it would ultimately bring them to the 10.8 percent city wide drop in value. He advised of the townhomes, which would be considered higher value and advised that some higher end detached townhomes were being priced to sell at about $234,000. Acting Mayor Trude confirmed the size of the detached townhomes at 2150 square feet on one level. Councilmember Knight confirmed that part of the problem in this solution is the uncertain future of the golf course. Mr. Dagastino thought that the Aztec Estate Townhomes would be comparable to these townhomes and were selling for around $250,000. He explained that the original asking price factored in the golf course, which is no longer a factor. He advised that these townhomes have been equalized to similar townhomes that are not connected with a golf course. He advised that everything on the golf course that was single family was lowered by 32 percent. © Acting Mayor Trude thought that this appeal could be kept open to gather further information. She confirmed that the foreclosure sale did not factor into the valuation of the property the selling price was slightly higher than the valuation and could become a factor in raising the price. Ms. Wikkin was under the impression that the tax amount would fall equally with the value of the home dropping. Mr. Dickinson thought that the City portion of the residents' tax amount would drop. Ms. Bohn stated that she just wanted to confirm that all the homes along the golf course had fallen in value and not just the townhomes. Mr. Dickinson reported that the golf course has a failing irrigation system and is in need of serious upgrades before it could become operational. He did not think that the current owner would be willing to sell it at the discounted rate needed. He thought that most likely that owner would sell the land for development or wetland banking. Councilmember Jacobson suggested increaseing the price to $250,000 plus an extra five percent for the wetland amenity /former golf course found near the homes, which would be $262,500. Mr. Dickinson advised that if the value is changed it would need to be changed on all 11 properties and explained that those residents may not be in favor of the increase, as they are not © appealing their value. Andover Board of Review Meeting Minutes —April 23, 2009 © Page 4 Councilmember Knight advised that the residents that did not attend the meeting could not have known in advance that the price may be raised on their home. Mr. Dagastino confirmed that they could raise the level of the three homes this year and equalize the other units the following year. Mr. Leone advised that in the 30 years that he has been doing this he has only seen one resident request a higher value and explained that was because the owner wanted the City to buy their land. Ms. Bohn agreed to the value of the townhome since she found that the value of all of the homes along the course had dropped. Ms. Wikkin stated that she could not agree with a 30 percent drop in value. Mr. Dagastino did not think that more information would be needed to value these homes as he felt the valuation was correct. Councilmember Knight agreed that the valuation was in line with the sale during that.time period. © Mr. Dickinson pointed out that a comparable price had been found for Aztec Estates and was more concerned with the values being equal rather than changing only two or three. Councilmember Jacobson questioned the status of the homeowners. Ms. Wikkin was not agreeable to the value, Mr. Larson was agreeable with the value, and Ms. Bohn was also agreeable with the value set. Motion by Councilmember Jacobson, Seconded by Councilmember Bukkila, to concur with the valuation of the three parcels discussed based on the assessment made by the Anoka County Assessor Office. Motion carried unanimously. Winslow Holasek, 1159 Andover Boulevard, (PID R23- 32 -24 -31 -0025, R23- 32 -24 -31 -0026, R23- 32 -24 -32 -0006, R23- 32- 24 -33- 0002, R23- 32- 24 -34- 0052, R23- 32 -24 -41 -0001, 823- 32 -24- 42- 0002, R23- 32 -24 -42 -0003, R23- 32- 24 -43- 0001, R23- 32 -24 -43 -0002, R23- 32 -24 -44 -0001, R24- 32 -24 -31 -0001, R24- 32 -24 -32 -0001, R24- 32- 24 -33- 0001, R24- 32 -24 -34 -0001, 824- 32 -24- 43- 0001, R26- 32 -24 -12 -0001, R26- 32- 24 -13- 0001, R26- 32 -24 -21 -0002, R26- 32 -24 -24 -0002) Mr. Holasek confirmed that there was a green acres law change and another made in the past year that would affect the ability to appeal the value of that type of property. He questioned if some background information could be given on green acreage.. Acting Mayor Trude advised that a bill had been passed regarding green acres last week. Andover Board of Review Meeting Minutes —April 23, 2009 © Page 5 Mr. Ducklow advised that the legislature made some big changes in the past year stating that the County would need to distinguish between productive and nonproductive land. He advised that the newest session developed a new law, signed on April 3, 2009, stating that productive and nonproductive land would stay and another plan that land owners have until 2010 to decide if they would like to pull their nonproductive land out of green acreage without back taxes being owed. He advised that rule now states that landowners have until May 1, 2011 to decide if they would like to do this. He advised that the value of Mr. Holasek's land raised from $2,100 to $2,752 an acre. He advised that the value is rising because of the tillable land. He advised that the value is set on actual sales in the southwest corner of the state where farmland sales are found more frequently. He advised that $4,000 per acre was set by the Department of Revenue and is then swayed by the soil level. He advised that in Anoka County it has been set at $2,752. Mr. Dagastino advised that a border meeting is held to determine the value of the agriculture land and equalize those values. Mr. Ducklow advised that Mr. Holasek could contest his market value or tillable amount of land, but nothing could be done with the green acre value set by the State. Mr. Holasek advised that he is present to voice his opinion, his objection and contest. He advised that he is not present to dispute the value of the green acres law but just to object to the value. © Councilmember Jacobson confirmed that all of the land owned by Mr. Holasek is green acres. Mr. Holasek thought that the valuation had been raised from $1,100 to $1,500 in 2007, then it rose from $1,500 to $2,100 in 2008, and then from $2,100 to $2,752 in the current year. He advised that the overall increase from 2007 to 2009 would be an 83.5 percent increase. He questioned how the County reached the value for green acres. Mr. Ducklow advised that the County is supposed to set the value at $3,200 and they instead came back to the State with a value of $2,752. He advised that it is $448 less than the value suggested by the State. He advised that there are three classifications of soil in the County in which A would be valued at $3,200 and B and C would be valued at $2,752. Acting Mayor Trude acknowledged that Mr. Holasek had a grievance with the value of his land but confirmed that the price for green acreage had been set by the State and this Board would not be able to change that value. Mr. Holasek asked a few technical questions regarding the amount set by the County and State. Mr. Ducklow advised that he would research that information for him. Councilmember Bukkila left the meeting at 8:25 p.m. © Mr. Leone left the meeting at 8:25 p.m. Andover Board of Review Meeting Minutes —April 23, 2009 Page 6 Mr. Holasek read a statement to the Board stating that he objected to the market and user value of his property. Motion by Councilmember Jacobson, Seconded by Acting Mayor Trude, to enter into the record a letter written by Mr. Holasek in regard to his objection of the 2009 market and user values of his property, and forward to the County for review at the meeting on June 15, 2009. Motion carried unanimously. Mr. Holasek requested that the City Attorney review whether or not the local Board of Appeal would have the authority to change the value of his land. Councilmember Jacobson questioned whether or not the City Attorney would be the right party to review this issue. Mr. Dickinson advised that any value that would be modified by the Board would need to be approved by the County and would then come under the authority of the County Attorney and not the City Attorney. Councilmember Jacobson thought that this should be continued to the County Board of Review and that issue should ultimately be reviewed by the County Attorney, as he would make the decision. Motion by Knight, Seconded by Trude, to hold Mr. Holasek's parcels over to the reconvene meeting on May 5, 2009. Motion carried unanimously. Mr. Ducklow advised that he would speak with the County Attorney tomorrow along with the Department of Revenue. Motion by Jacobson, seconded by Knight to continue the Board of Review meeting to May 5, 2009. Motion carried unanimously. The meeting recessed at 8:50 p.m. Respectfully submitted, Amanda Staple Timesaver Off Site Secretarial, Inc.