CC Minutes 2002 04 22 BORCHANHASSEN BOARD OF
REVIEW AND EQUALIZATION
SPECIAL MEETING
APRIL 22, 2002
Mayor Jansen called the meeting to order at 6:30 p.m.
COUNCILMEMBERS PRESENT: Mayor Jansen, Councilman Boyle, and
Councilman Peterson
COUNCILMEMBERS ABSENT: Councilman Labatt and Councilman Ayotte
STAFF PRESENT: Todd Gerhardt and Roger Knutson
PUBLIC PRESENT:
Chris Kimsal
Todd Deckard
Alan Fox
Ron Frigstad
Dean Stanton
Arild Rossavik
L.M. Vassar
Bev Bell
Ron Olson
Donald Sennes
7040 Derby Drive
6611 Arlington Court
7300 Laredo Drive
9270 Kiowa Trail
510 Bighorn Drive
8800 Powers Boulevard
215 Highway 212
9371 Kiowa Trail
7700 Crimson Bay Road
6680 Mohawk Drive
Mayor Jansen: Though it is the City Council, we are serving as the Board this evening on
the property reviews so welcome. We have with us this evening Angie Johnson, our
County Assessor. Welcome. We do in fact contract for these services as a city through
the county so Angie is here this evening as our staff representative and Thomas Scherer
with Hennepin County is with us for our little bit of property that we do have within the
Hennepin County borders so welcome here this evening. Why don't we go ahead and
staff will open it up for the staff report.
Angie Johnson: Okay. Along with me from Carver County are appraisers Steve Clay
who has been working the residential properties from the city of Chan for about 3 years
now. 2. And also John Kern who worked with Steve this past year and Heather Solheim
here will be working with Steve this upcoming year for the residential properties.
Mayor Jansen: Great, thank you. Welcome.
Angie Johnson: ! did all the commercial/industrial properties this year. Went through
them and physically inspected all of them in Chanhassen this year and so those have all
been looked at this past year also. So ! believe in Steve's packet here he kind of gave you
what, basically what the residential figures did but along side that was all the commercial
Board of Equalization and Review - April 22, 2002
industrial properties also that were included. And we had 416 residential sales for the
city of Chanhassen this year and basically the overall increase was 10 lA percent for the
city of Chan for residential properties. A little over 10 1 guess. The commercial
industrial kind of, because I did go through it all, there wasn't probably an equal increase
as there was for the whole county. The whole county, land went up 5 percent and the
buildings went up between 5 and 10 but since I did physical inspections, there was
varying changes of course which always happen when you do the physical inspection of a
property. Apartments went up about 5 percent, and overall we had about a 13 percent
increase in market values throughout the city of Chanhassen this past year.
Mayor Jansen: So the overall encompassing the apartments and you called up the
industrial, you're saying overall was a 5 percent. Is that what you just said?
Angie Johnson: Overall for the whole city, including all of... properties was about a 13
percent increase.
Mayor Jansen: 13 percent, okay.
Angie Johnson: Basically because the agricultural land really took a hike for what ag
land we have left. That went up about 20 some percent.
Mayor Jansen: Oh, okay. Is that what you gave us?
Angie Johnson: We had I think in your packet also and what Todd gave you there were I
think 13 appeals here. Basically I think it came out to about like 10 home, or 10 owners
of property but there's 13 PID's. And basically they're all pending until they will be
worked on between now and our next scheduled meeting then.
Mayor Jansen: Okay. Great.
Angie Johnson: So basically what we need from the people here that are attending the
local Board of Review as we are here to, if you have any disputes on your classification
or on your values of your property for the January 2, 2002 assessment, payable 2003. So
that's what we're here tonight to make sure that if you have filled out an appeal, we do
want, if you've got one of these filled out that there's some. There's some in the hallway.
Otherwise I have some up here also. So we have your name and PID number and.., if
you would please give us this so that we have it on record. And I think we did...with
that, I don't know, unless the Board has anything else we can get started with the appeals.
Mayor Jansen: Thank you. Appreciate that. Council, any questions for staff at this
point? Okay. As Angie was outlining, this evening is a public hearing for us to receive
your comments. Basically staff will take that information and then at the next Board of
Review meeting get back to us with what they have reached as far as a conclusion
working with you through the valuation process and actually visiting your individual sites
and bringing forward the results then at the next meeting. So there will not be any action
taken here this evening. So with that, if you'll go ahead and as you approach the podium,
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Board of Equalization and Review - April 22, 2002
as Angie noted, state your name and address for the record and you asked for the PID
number as well. So we'll go ahead and get started so whoever would like to address the
Board first, approach the podium.
Alan Fox: I might as well get it over with. Thanks for letting me in, although I think I
have a logical argument. I didn't have a chance to contact the auditor's office before
tonight. We've been out of town. This was in the backlog of mail. Imagine my delight
when I opened my mail and discovered you had discovered oil on my property.
Mayor Jansen: If you could start with your name and address and PID number for the
record please.
Alan Fox: Alan Fox, 7300 Laredo Drive. PID is R25.8200130.
Mayor Jansen: Thank you.
Alan Fox: And you should have my sheet in there. I find the numbers somewhat mind
boggling but, my argument is basically that the numbers have been going up
disproportionately compared with the one comparable that I had time to take a look at.
One that I was familiar with. We live down at the end of Laredo Drive. It's lakeshore
property and along Frontier Trail there's comparable lakeshore property at 7417 Frontier
Trail. However it's got I think better lakeshore and a much newer home, so the numbers
don't track one to one but what I'm looking at is the progression over a 7 year period.
I'm basing the increase on their property based on actual sales. That property sold in
January of 1994 for $275,000. It sold again last fall, I think it was October of 2001 at
$420,000. Now that's an absolute actual valuation increase of 52.7 percent. At the same
time, same years the estimated valuation of my property went from 160.6 to 302.1K,
which is a progression, inflation progression of 88.1 percent. So on the one hand what I
feel is a comparable but higher priced in property so property over the same period on
virtually the same lakeshore, their's was actually 53 percent on actual sales. My
estimated valuation went up 88 percent over the same period. So to me that represented a
disparity between the valuation escalation in that case based on actual sales figures on
mine and the estimated valuation. So that was kind of a flag for me. For example the
growth that catches my eye is mine went up 30 percent just in one year, this last year, and
my question then from that is, did all lakeshore go up an average of this 29.7 percent.
And if not, why was mine different from the average so that' s a question I raise. And
then over the 7 year period I'm talking about, just in the 2 years since then from the
figures I cited, the dates I cited, my valuation has increased an additional almost 39
percent. 38.6 percent, and for that rate of inflation and the increased valuation, excuse
me in the last 2 years. If that were a 5 period sale that I quoted...it says within 2 years.
That house should probably be on the market of $582,000 and I feel that that's certainly
unrealistic for that piece of property. Therefore it calls in my mind, calls into the
question the valuation of mine based upon the disparity in the rate of progression over the
measured period and the recent large jump. So that's it in a nutshell. Thank you for
listening.
Board of Equalization and Review - April 22, 2002
Mayor Jansen: Well thank you. Appreciate your coming in this evening to share your
comments. Angie, just as a clarification. Is there not a cap on the annual increase?
Angie Johnson: There's a limit in market value that kicks in because of the increases and
that, but no. We have to be at what market value is. We're supposed to be at 100 percent
of what sales are doing.
Mayor Jansen: Okay.
Angie Johnson: And so that's, we just don't know what's happened. Lakeshore has just
really gone through the roof the last couple years and, what lake is he on?
Steve Clay: Lotus.
Angie Johnson: Okay. Lotus we had quite a few sales in the last couple years and Steve
reviewed that whole area this year, and yeah. They all took a big increase.
Mayor Jansen: Okay. So at this point you'll be able to sit down with Mr. Fox and go
over more of the specifics.
Angie Johnson: We had a lot of sales there.
Mayor Jansen: Alright, thank you. Next please.
Chris Kimsal: Chris Kimsal. ! live at 7040 Derby Drive. PID R25.8590430.
Angie Johnson: Did you fill out one of the sheets?
Chris Kimsal: Not yet. But my assessed value in 2001 was 155. No, in 2000 it was
155,700. Went up 7.64 percent to 167,600 in 2001. This year it took another 12.4
percent hike to 188,400 so from 155,700 to 188,400 in 2 years. ! do not live in one of the
posher neighborhoods in town. Right up the road here. It's become more of a transition
neighborhood. People move in. Hang around for a few years and move up to another
house. My house was built in 1986. It wasn't built very well, and it's to the point now
where I'm having to put a lot of money in the home. ! have drainage issues in the front
yard because it wasn't compacted properly when the house was built. The driveway is
caving in up at the foundation of the garage. ! have to replace the driveway. ! have
windows that are single pane and they are rotting and they need replacement. And then
all of this at a time when my employer's telling me that he can't give me a raise because
inflation is zero. ! guess ! really have trouble believing that my neighborhood's houses
are going up at this kind of rate. ! know a couple of neighbors that have told me they've
had trouble selling their homes. They're not putting them on the market and having them
getting grabbed up in a matter of weeks. ! mean they're sitting on them for several
months before they go so. ! guess ! think these increases are outrageous and so I'm
seeking relief.
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Board of Equalization and Review - April 22, 2002
Mayor Jansen: Okay, thank you. If you'll be sure to fill out one of the forms for us this
evening, we'd appreciate it. Thank you.
Angie Johnson: Make sure you have daytime phone numbers on there for us. We're
going to have to contact everyone and do an inspection on their properties before we have
our next meeting.
Chris Kimsal: That's another thing is I haven't done, there's been no improvements
whatsoever to my property.
Angie Johnson: But still we do need to do an inspection.
Chris Kimsal: Sure.
Mayor Jansen: Great, thank you. Next please.
Dean Stanton: Hi. My name is Dean Stanton. I currently live at 510 Bighorn Drive and
this is on the property next to it. PID number is R25.7930110, and I guess what I'm
talking about is, it's a Lotus Lake lot. It's a little different than the typical lot on Lotus
Lake in that it's got severe soil problems, and I came before this board back in I think
1990 and got the property reduced because it's going to require over $100,000 of work
with pilings, grade beams and steel work and I've got numerous proposals here. We are
planning on building on it. In the year 2000 the lot was valued at $60,000. 2001 it went
up to $72,000. A 20 percent increase. Between 2001 and 2002 it went to $80,900. 12 lA
percent increase, and then this year it's going from $80,900 to $142,600. And it just
seems a little excessive in the last couple of years. Yes it is a lake lot but it's got a
holding area for the development and it's kind of an odd shaped lot and it requires a lot of
extra work to bring it up to put a house on it because of all the pilings and cement work
and everything.
Steve Clay: Yeah, I remember walking that lot.
Dean Stanton: Yeah, so it's kind of an unusual case but it just seems like the value has
jumped up excessively in the last couple years and ! guess I'm questioning whether all
the lake values have jumped up double since 2000? ! know they've increased but.
Steve Clay: I would suspect quite a few of them have doubled in the last 3 years or so.
Especially this last year. ! went around and re-valued all the individual lakeshores and
based on sales of properties as well as sales of vacant lots. There's a .7 acre lot a quarter
of a mile south of you on that side of the lake that just sold, the fella had 3 acres. He
subdivided. There was 3 lakeshore lots, new lots there. That vacant lot sold for
$399,000. It was smaller than your's. So you think you put $100,000 in pilings and steel
supports and stuff. We took our value at $142. You know the difference between that
and the $400,000 sale more than makes up for the $100,000 work that would need to go
in. But I'd be glad to take a closer look at it with you. Did you say you're planning on
building on it?
Board of Equalization and Review - April 22, 2002
Dean Stanton: Yes.
Steve Clay: You probably have some engineering data?
Dean Stanton: Yes.
Steve Clay: It'd be nice to take a look at that.
Dean Stanton: So you would need the soil report or the actual?
Steve Clay: Anything you've got. We can sit down and take a look at that.
Dean Stanton: Sure. ! can provide you all the documentation. I've got 3 different quotes
on what it would cost to put the pilings in and the cement work and we've got all that so.
Would ! give you that back-up data, mail it in or?
Steve Clay: I'll give you a call and we'll set up some time for a meeting.
Dean Stanton: Okay. Why don't you put my cell phone number down. 612-850-7507.
That's easier to reach me during the day. Thank you.
Mayor Jansen: Great, thank you.
Arild Rossavik: My name Arild Rossavik. My Parcel ID number R25.3530020... and
read a letter I've just enclosed. I'm kind of protesting against a $45,200 property value
increase for 2002. ! bought my property in 1993 and I've lived there ever since. My
property is zoned residential, but the neighbor to the north, 8750 Powers Boulevard is
also zoned residential but has been running commercial business, Air Conditioning By
George out of his two story warehouse ever since ! became his neighbor .... commercial
traffic from employees and business vehicles and deliveries of air conditioning systems
for assembling in the rear by giant trucks. A copy of the building permit for 1995 plainly
shows permits granted for a residential garage. For 9 years ! have observed, ! have never
observed any vehicle except his motorcycle parked.., of his 2 story garage which in
addition has 2 mercury flood lights... The City of Chanhassen has.., respond to my many
complaints telling me that the business is run out of his house basement. ! have
documented many times that the 2 story business is the center of the business activity,
and anybody can stop by at 7:00 and 8:00 a.m. in the morning to see for themselves. !
know it's not an issue for the Board to resolve but nevertheless the fact that ! have a
commercial property facing 8 feet from my property line does affect negative to the value
of my property and ! would have to disclose this fact to a potential buyer. Therefore ! ask
the property value not to increase as a residential value is negative impacted by the
commercial building and activity property next door. ! have some pictures.., at this point
in time but.
Board of Equalization and Review - April 22, 2002
Mayor Jansen: That actually would be a separate issue for us to address as far as the
property next to your' s.
Arild Rossavik: Well I'm just looking at my property because you increased the property
$45,000 of value. As long as ! have a commercial property next door, and that's not
being addressed.
Mayor Jansen: Understood. Understood. And we can certainly address that at another
time and ! would recommend getting that information to Mr. Gerhardt and he can pass it
along to the proper staff person to take a look at, so appreciate your bringing that to our
attention.
Arild Rossavik: Okay, thank you.
Mayor Jansen: Okay, great. Thank you. Next. Is there anyone else here who would like
to address your properties here to the Board of Review?
Angie Johnson: We do have a couple other ones that...
Mayor Jansen: Okay, good evening.
LeVerne Vassar: Hi. I'm LeVerne Vassar and I've got some property down on Highway
212 by the lower Y, and it hasn't changed one bit in 30 years that I've been there, but the
valuation, they keep raising the valuation on it and they tell me that ! can't build, so
therefore if! can't build, you're diminishing my property, not increasing my property
values. ! don't know how you can raise it at all.
Mayor Jansen: And I'm assuming that his property's not within the MUSA line yet,
correct? As far as having services available.
Todd Gerhardt: Probably a non-conditional use in that area.
Mayor Jansen: Okay. And have you filled out one of the forms?
LeVerne Vassar: She's got it.
Mayor Jansen: Okay.
Angie Johnson: It's in your packet.
Mayor Jansen: Okay, thank you. Appreciate your being here this evening. Is there
anyone else who would like to submit your application for your property here this
evening? Okay. Otherwise I'm going to bring this back to the Board, and as ! said at the
beginning of the meeting, we do not take action here this evening. Staff will be
contacting you and working with you on your specific properties and your specific issues
and then coming back to us at the next meeting which is on May 13th at 6:30 so that will
Board of Equalization and Review - April 22, 2002
be present here again in this room. So council ! need a motion please to continue. Do
you have that in front of you?
Councilman Boyle: No.
Mayor Jansen: I'll make the motion to continue the Board of Review to May 13, 2002 at
6:30 p.m. Yep, and that will be it. Do ! have a second please?
Councilman Boyle: Second.
Mayor Jansen moved, Councilman Boyle seconded to continue the Board of Review
and Equalization until May 13, 2002 at 6:30 p.m. All voted in favor and the motion
carried unanimously 3 to 0.
Mayor Jansen: Angie, is that all you needed from us this evening?
Angie Johnson: Do we need to get these in your minutes, the ones that didn't speak but
have filed an appeal? They probably should go in the minutes though.
Mayor Jansen: Okay. Do you just need us to state the names and PID numbers for the
record? Okay, thank you.
Ron Frigstad: My name is Ron Frigstad. ! live at 9270 Kiowa Trail. My PID number is
R25.0920010, and ! would just like some.., of the valuation of my house. It's 30 years
old and it needs a new roof and some other things so ! don't think it's in sparkling
condition or ready for sale. It went up 11.3 percent this year so that's a little high.
Mayor Jansen: Okay, thank you.
Todd Deckard: Hello. My name's Todd Deckard. I'm at 6611 Arlington Court. Parcel
ID 252620330. ! filled out my reasons on the form and wrote a letter.
Mayor Jansen: Thank you very much. Does that take care of all the ones you received
this evening Angie?
Angie Johnson: We have a couple more here...
Mayor Jansen: Okay.
Donald Sennes: My name is Donald Sennes and two PID numbers. 251600500. That's
my home. And then 251600510 is a small rental property that we have adjacent to our
property, and my complaint or whatever is that in relation to our neighbors properties
which ! have a list of 10 that ! gave to the assessor's office, our's has increased a lot more
than any of the others and especially ! documented 4 of the properties that ! have records
back to 1998 which again is a much larger increase in valuation.
Board of Equalization and Review - April 22, 2002
Mayor Jansen: Alright. Thank you.
Ron Olson: Ron Olson at 7700 Crimson Bay Road. PID number R25.2610010, and
we've noted our reasons on the form.
Mayor Jansen: Okay. Thank you very much. Okay so we are set and we have our
motion and the.
Tom Scherer: There was a letter, are those in the packet? There was one of them for
Hennepin County side. Did you get the one from Steven Hall?
Mayor Jansen: And as long as we have the documents we're okay. Do they need to be
just mentioned into the minutes or we're fine because we received the documents this
evening?
Todd Gerhardt: As long as we receive written complaint, that's all that is needed at this
time.
Mayor Jansen: Okay great, thank you. Appreciate that. So with that, if! could have a
motion to adjourn the Board of Review and Equalization please.
Councilman Boyle moved, Councilman Peterson seconded to adjourn the meeting.
All voted in favor and the motion carried. The meeting was continued to May 13,
2002 at 6:30 p.m.
Submitted by Todd Gerhardt
City Manager
Prepared by Nann Opheim