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1988 05 16 BOR15 MINUTES C~ANHASSEN BOARD OF EQUALIZATION AND REVIEW MAY 16, 1988 A meeting of the Chanhassen Board of Equalization and Review was called to order by Mayor Hamilton on May 16, 1988, at 7:30 p.m. The following members were present: Mayor Hamilton, Councilmen Horn and Geving. Councilmen Johnson and Boyt were absent. Mayor Hamilton stated that the Board would accept comments from public this evening and then ask the Assessor to review each comment and make a recommendation back to the Board. The Board of Review will reconvene on Monday, June 6, 1988, at 7:30 p.m. to take final action on each property. Attached "Exhibit A" lists each property owner and their comments. Motion by Hamilton, seconded by Horn to adjourn the meeting at 10:15 p.m. All voted in favor and the motion carried. EXHIBIT "A" May 16, 1988 N e/ Address Parcel No. . . . . . . 7& J/m Wehrle 241 Mountain Way (fDr ail Near Mountain) 6981 Redwing Lane John Dorek Chanhassen Bowl 581 W. 78th St. Dick Sd w g sn Chan Center Partnership 80 W. 78th St. T ~ r'::L'~ Zamor Chanb~-sen Inn 531 West 79th St.' fk=nry Dimler 961 Western Drive Julius Smith Representing Clients 25-2130100 25-2021260 25-2021260 25-6860020 25-8900030 25-1600680 25-2150050 25-0025000 25-0020610 ~e is President of the Near Mountain Bum~wners Association. This area has ~ reassessed for the second year in a row instead of the 4 year cycle which Last years valuatic~ was $71,900. ~e put a $20,000 additio~ c~ his home and the value increased to $104,700. The additicnal value is unlivable. Valuation increased frcm $1,100,000 to $1,476,000. He feels that is too much A private appraisal was conducted by Newccmb and Hanson Appraisal and they estimate the value of this building at $835,000. The Assessor' s established the value at $1,149,100 for 1988. This is 35% higher than the private appraisal. In 1986 the property was assessed at $1,286,000 and in 1987 it was assessed at $937,000. Feels the valuation should be ~ed in line with the private appraisal. Valuation ~s 835,000 in 1987 and it increased to $1,300,000 in 1988. He added on eight new roc~ which cost $115,000, yet the increase was $450,000. Valuation increased from $69,000 in 1987 to $77,000 in 1988. He feels this is too much of an increase. The value of this vacant lot in Christmas Acres increased 27%. Feels that is too much. The value of this half acre parcel increased 20% to $65,200 and no ~ ments were made to the property. The value of this older ~ increased 77% from $41,600 to $73,800 in 1988 with no -1- Name/ Address Parcel No. Comments 7& Julius Smith Representing Clients Instant Web United Mailing Victory Envelope 25-0020600 25-5650080 25-5650070 25-5660010 The value of this home increased by $78,900 or 22%. Improvements were made to the property, but after a private appraisal for insurance purposes, the insurance ~ raised their replacenent value by 9.6%. The assessor has valued this 14 acre parcel at $5,593,300. After giving ccm- parisc~s of other property in Chan Lakes Business Park and replac~ent cost estimates frc~ their architect, they feel a market value of $4,662,000 is more reasonable. This is based om using 90% of the land value which they feel is $20,000 per acre and 90% of the full market value of the building which they feel is $4,900,000. Based cn similar cxmnpari~ns used for the Instant Web property, they feel that a 'fair market value for United Mailing is $3,815,500, not $4,138,600 as reccm- mended by the Assessor. This is based on a using 90% of the land value which they feel is $19,000 per acre and 90% of the full market value of the building which they believe is $3,644,500. acres of this property is unusable because it is a public easement for walkway and under watershed district control. Using the same formulas applied for the above two parcels, they feel that the land value of this property should be $251,400 ~ed to the Assessor' s valuation of $512,200. Nearly 5 acres of this parcel is unusable because of the public walkway and watershed control. They agree with the Assessor's ultimate building valuation of $3,309,600 except that they believe the building will not reach its full econo- mic value for several years. They feel penalized for planning ahead and building a facility large enough to house their needs for many years to -2- 7 ~14~wess Parcel No. Omments . 10. 12. 13. 14. 15. 16. 17. Scott Gavin 1851 Lake Lucy Rd 7016 Chaparral In Todd M. ~ 469 Pleasant View Ken W. Wolter 341 Deerfoot Tr James Carlson 7020 Dakota Cir Harvey Parker 7480 Chan. Rd. Richard Steller 6321 Steller Cir Robert Finley 740 Vcgelsberg Trail Frank Reese 6200 Chaska Rd. 25-4070130 25-2020620 25-6300160 25-8100090 25-2300110 25-8400060 25-6030020 25-1220030 25-1100210 He bought the property for $30,000 and put a garage c~ it which is not finished yet. The value increased to $56,000 and it should not be more than $40,000. Value increased $9,100 in c~e year. neighbor's twin home is valued at $68,000 and her's is at $76,000. Value was $279,000 in 1987 and increased to $340,000 in 1988. This is a 21% increase and is too much when no improve- me,ts were made. Value increased from $112,000 in 1987 to $133,200 in 1988. This is a $21,000 increase. His neighbor's property is assessed at a lower value and f~en Prairie has the identical home which has a 1988 value equal to his 1987 value. The 1986 value ~as $109,500. In 1987 he put an addition c~ and the value increased to $159,700. Now the value has increased to $193,000. The value of two ho~es in this neighborhood have not changed in the past two i~=ars. Other homes in the neighborhood are unequal. Assessed value in 1987 was $92,600 and it increased to $128,900 in 1988. T~D buildin~ permits were taken out to repair the bxm~e. This was a new house in 1987 and valued at $149,800. The value increased to $170,500 in 1988. M~wed in this ~ in 1986 at a value of $77,400. The value increased 29% in the last two years to $98,100 in 1988. There is no sewer and water to this property and he feels the valuation is too high. Fa- adjoinir~ parcels in both Carver and f~_~nnepin Counties. The property is assessed at $16,000 per acre. The par- cel in Chanhassen is .8 acres and ~as -3- N me/ Address Parcel No. Cc~ments 18. 19. 20. 21. 22. 23. 24. Barbara Allison 6681 Horseshoe Cu Douglas & Carolyn Barinsky 8731 Audubon Rd. Cheryl Newton 6228 Cascade Pass Dennis Kar stensen 7482 Saratoga Ken Weigel 6370 Near Mtn. Blvd Marge Rossing Carver Beach Richard Ross ing 25-6300250 25-0220500 25-2090150 25-7610050 25-2110040 25-1602061 25-1602071 25-1601490 declared unbuildable. Either the parcel should be buildable or the valuation should be lowered. Valuation was 68,000 in 1987. They remode~ last year and the valuation increased to $199,600 in 1988. Their neighbors also remodeled and their home is twice as big and valued $32,000 lower. ALl other hcm~s in the neigh- borhood are better hcznes with lower values. The property was reassessed in 1985 and the value was increased based on improve- ments made in 1984. No other improve- ments have been made since that time. Nc~ there is a 75% increase in value. The County's system of assessing only new/resales is illegal. The 1987 valuation was $115,000 and increased to $125,300 in 1988. No improvements were made. Why the increase? A 15% increase in the market value is too large over the past three years. refinanced one year ago and the appraisal was only 1.59% more than he originally paid. Wants to knc~ the formula used to assess his hcme. Why is he being assessed every year? He's at 92% of the market value now and he feels that is too high. Her 10 lots are taxed $845 versus her neighbor's 11 lots are taxed $420. Valuation increased frc~n $82,500 in 1987 to $96,000 in 1988. He built a shop at a cost of $4,000 and feels his valuation should not have increased $13,500. The Assessor also included a greenhouse used only for storage which is not a permanent structure as it sits on railroad ties. -4- Parcel No. Omme~ts 25. 26. 27. 28. 29. 30. 31. 32. 33. Rodolfo Alejo 7465 Chippewa Tr. Ron Mielke 405 Santa Fe Tr. Charles Markert 7461 Hazeltine Blvd. 3851 Leslee Cu Darcy Westlind 6211 Cascade Pass Sherwin & Shirley Taradash 61 Sandy Hook Rd. Tcm Akins 6203 Cascade Pass Ray Rcettger 3221 Dartmouth 1910 Stoughto~ Ave. 25-1980150 25-8800190 25-0090310 25-6150140 25-2090010 25-2400060 25-2100130 25-1400110 25-0030400 Disappointed because his assessed value is c~_ly $73,000 whe~ he paid $79,400 for the property. In 1986 he built a gazebo/storage shed for about $800. Valuatiu~ increased from $86,000 in 1987 to $100,000 in 1988. Neighbor's properties are not assessed this high. Requests a valuation of $84,500 or less. Value has increased $13,500 ewer last year and no improvements have been made. Value increased fr~ $97,300 in 1987 to $106,200 in 1988. A 9% increase in value equals a 17% increase in taxes. He paid $118,000 for the property incl,w~ng points, which should be deducted frcm the purchase price. Value increased from $89,200 in 1987 to $98,900 in 1988. She has only lived there for 10 months. Why this type of increase? Their house was built and completed in October, 1986 and was assessed in the fall of 1987. The Cuunty should not continuously reassess property. They received a 12% increase in valuation bringing the 1988 value to $205,300. If only new parcels are increased, uneq,~l Sa~e cc~uern as other Near Mount~ residents. He thought that houses would be reassessed based on the 4 year cycle. Objects to the excessively high tax psid in relation to the same size and types of h~es in other parts of the State. Wants to knc~ the assessment fozmula. Valuation increased fr~n $107,000 to $198,000 in 1988 with no ~mp~ovements made. Wants to ~ why such a large -5- Nme/ Address Parcel No. fkannents 34. 35. 36. 37. 38. 39. 40. 41. Kevin Dauwalter 6300 Castle Ridge Tom Kraker 6441 White Dove D~nnis Var~erbur 7008 Sandy Hook Rd. John R. Stephens 6800 Chaparral Lane William Austin 749 Carver Beach Road Chris Bellino 8140 Dakota Lane Keith Sheser 261 Mountain Way Char lie Coffee 7474 Saratoga 25-0340100 25-5500440 25-6040140 25-2400270 25-2000810 25-1601530 25-3451020 25-2130080 25-7610090 1988 valuation of $224,000 for 21 acres of mini-storage, . 16 acres on green acres, and 5 acres with buildings seems high. Purchased his home for $135,000. What is the assessment ratio being sought, i.e. 92%, 95%? Gave examples of 5 properties (4 in Chanhassen and 1 in Victoria) that are for sale in the County that are assessed at anywhere frcm 52% to 79% of market value. His property is assessed at 95% and would like to lowered to sc~ere between 50% and 70%. He moved in in 1987 and just received a $7,000 property tax bill. He' s assessed at the 96% to 97% range and wants the City to look at the system used for setting values, i.e. new properties assessed at 97% versus existing being 90% or lower. Withdrew his name. Value increased frem $58,200 in 1987 to $78,900 in 1988. He built a garage for $5,000. This is a 39% increase. Feels it is too high. Purcha_~=d the home in January. An appraisal was ccmpleted by the lending institution which paralleled the cost of the hcme. Nc~, 4 months later, the Assessor increased the value by $15,500. why? Value increased frc~n $138,800 in 1987 to $141,900 in 1988. No improvements were made to the home and he thought it was assessed on a 4 year cycle. His assessed value increased fr~n $108,000 in 1987 to $148,000 in 1988. He put on a $13,000 addition. Feels that his house would not sell for that amount of money. -6- N e/ Parcel No. Omme~ts 42. 43. 44. 45. 46. 47. 48. 49. 50. 51. Robert Petersc~ 6221 Cascade Pass Fred Plocher Red Cedar (kwe 3850 ~ple Shores Drive Robert Zima 271 Near Mtn Way Robert M. Bow~n 6275 P~rs Bl~d. ~d & Donna Clark 6859 Gary S. McGlenne~ 6240 Near Mtn Blvd. Glenn & Bonnie 80 21 (2heyemne Spur Robert & Marilyn Wolf 7636 So. Shore Dr 25-6030040 25-2090060 25-6500140 25-6500130 25-6500150 25-6500160 25-4450080 25-2130070 25-2550050 25-1601430 25-2140060 25-1800460 25-8010250 ~his is a new home valued at $160,000 in 1988. His neighbor's house has 2800 s~re feet and is assessed at $61.00/ sq. ft. ~e feels his hc~e should be based on the same criteria which would eq%~l $134,000. ~e presently has it listed for $165,900. He has an 1100 sq. ft. hc~e that was reassessed fr~n $100,600 in 1987 to $106,400 in 1988. Why the increase? ALl parcels are assessed at $97,000. Two are finished and two are shells. The first unit sold for $133,000. Wants to schedule a future date for tax review as he was out of tc~n. Feels the assese~ent of $139,500 for his 1500 sq. ft., t~o bedroom house is too much. Feels that an assessed value in excess of $305,100 is too high. Property raised 20%. Due to unstable employment, a tax increase would cause a real hardship at this time. Protests his assessment and authorizes the Near ~ountain Association President to represent their interests. Valuation raised frown $95,300 to $103,700 with no improvements made other than wallpapering, drapes, etc. An Assessor has never visited their h~ne so how does he knc~ what .kinds of improve- ments exist? Feels the valuation is too high. His estimated ~ are $10,000 per year and he feels that is way too high. While looking for a house in Chanhassen, there were other houses located on Lotus Lake with taxes ranging fr~n $5,000 to $6,000. -7- N e/ A~klress Parcel No. Cxannents 52. 53. 54. 55. Wynifred Fynbo 6865 Nez Perce Rick & Cynthia Yokiel 741 Bighorn Drive Mavis Skalle 780 Santa Vera Doug & Jane Cook 290 Trappers Pass 25-1601330 25-1601340 25-1990050 25-1980320 25-8570190 Feels the assessor's estimate of her house is incorrect. She has a very basic 1100 sq. ft. house and it is esti- mated at $113,700. She receives another tax statement with an estimated value of $9400 which is non-homestead. She feels that this is one parcel and all should be homestead and that she should only receive one tax statement. Feels their assessment is high as they purchased the house for $107,680. Their assessment is 10% to 20% higher than their neighbors. They purchased their hc~e in February. There is a conservation easement which, for all practical purposes, eliminates 55% to 60% of the lot for their own use. They feel that this will adversely affect their market value. The assessed value of $183,400 would create a market value of $203,800 -more than they paid for the property. 56. 57. 58. 59. Peter What ley 201 Mtn Way 25-2110060 John R. Stephens 6800 Chaparral 25-2000810 Douglas Dougherty 301 Trappers Pass 25-8570030 Michael Ludwig 25-5500420 111 Shasta Cir. West Assessment increases in Near Mountain have increased in varying amounts, some have risen modestly and others signifi- cantly. Why? Does not feel the ser- vices they receive properly reflects the amount of taxes they pay. They received a large increase in valuation and no major or minor improve- ments were made. Neighboring property owners received only a small increase. Market value and taxes too high. What percentage of market value is property taxed at? Hc~ was assessed value deter- mined? Are older homes with same owner ever reassessed? Why are Carver County taxes higher than other metro areas? This is a new hcme approximately 2½ years old. No changes have been made to the house. The value increased frcm -8- Parcel No. (kmunents 60. 61. W. Sinnen 8800 Sunset Tr. Robert & Margaret Seeley 6232 Cascade Pass 25-2500040 25-2090170 $112,900 to $120,000. They were origi- n_~l ly taxed at a high level ar~ the 4 at 6228 Cascade is identical to his and is val~=d at $115,000. ~/s neighbor's asses~ue~t w~nt down $1,000 to $108,000. Feels a reduction in assessment is in order because the property originally included a house on 15 acres. Now the property has ~ subdivided and includes the house on 3 acres. ~ can the value increase by 20% under these cc~d/tions? The value increased $11,700 over last year and no impr~ts were made. They cc~~ a realtor who stated that they could not get any more for the prop- erty now than what they paid for it. -9-