1a April 19, 1993 1
CHANHASSEN BOARD OF
EQUALIZATION AND REVIEW
SPECIAL MEETING
APRIL 19, 1993
Mayor Chmiel called the meeting to order at 7:00 p.m.
COUNCILMEMBERS PRESENT: Mayor Chmiel, Councilman Senn, Councilman Mason,
1 Councilman Wing and Councilwoman Oockendorf
STAFF PRESENT: Don Ashworth, City Manager; Todd Gerhardt, Asst. City Manager;
Orlin Shafer, Steve Just and Ann Wise, Carver County Assessors; and
1 Larry Miller, Hennepin County Assessor
' Mayor Chmiel: I'd like to say welcome, even under the circumstances. It's nice
to see that we have people in Council chambers at least tonight. On Council
evenings it's sort of sparse but it's nice to see that you're here. The
' meeting, the City Council sits as the Board of Equalization and Review and we're
here to listen to the citizens to determine whether or not any comments
regarding the estimated market value of your property. What I'd like to do is
turn this over to Don Ashworth, our City Manager and hopefully we can have a
review also from the County indicating. I might add tonight we won't be able to
provide any comments to you regarding this. We'll listen to what it is. This
will come back to the Council on May 10th with the recommendation back from the
1 County. Now we do have that opportunity to review what comments he has said as
well and to request changes within providing that is a, or there's a substantial
margin that should be addressed. So with that I'd like to turn this over to Don
' Ashworth.
Don Ashworth: Thank you Mr. Mayor. First of all I would like to make sure,
anyone wishing to speak this evening should sign the sheets on this round table
' over here. If you would simply like to make your concerns know, there are
sheets on the outside and if you'd fill those in. In either case, whether you
wish to speak or you want to fill out a form, the Assessor will contact you and
' try to set up a time when he can come and visit your property and review it.
Again, as the Mayor mentioned, in all likelihood we will not be able to respond
to your questions or concerns this evening but instead we'll ask the Assessor to
look at those and provide us with a written response to those. The City Council
' on May 10th will have a copy of all of the forms that you have filled out.
They'll also have a copy of the Minutes from this meeting. So again, whether
you wish to make your concerns known by speaking or if you wish to make them
' known in a written form, in either case the City Council will have those on May
10th together with the response from the Assessor's Office. It will be on May
10th after looking at your concern, after reading the response from the assessor
' that the City Council, or Board of Equalization will then act on each and every
request individually...With that I guess I would ask the Assessor, Orlin Shafer
if he would review the assessment process that was used this past year and
generally the assessment process itself.
1 Mayor Chmiel: Orlin, if I could just interject just before you make a
statement. I've seen some people come in a little bit late. For those of you
who want to come before the Council and state your position, there's a sign -up
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II Board of Equalization and Review - April 19, 1993
sheet right on that round table there. So please sign up for that at this time
II if you would like to.
Orlin Shafer: In regards to that sign -up sheet. Normally our procedure has
II been that we've taken you in the order that you sign up so if you want to speak,
make sure you get your name on there. I'm Orlin Shafer, the County Assessor for
Carver County. Behind me is Steve Just, who works in the city of Chanhassen.
Ann Wise sitting next to me also assesses for the city of Chanhassen and the
gentleman right on Steve's left is Larry Miller. He's the representative
from Hennepin County. The city of Chanhassen does extend into Hennepin County a
little bit so we always get Larry, or at least someone from Hennepin County to
II sit in on these meetings. Just a couple bits of information that is of interest
to a few people, but probably not real important to any one individual and
that's that the city of Chanhassen had approximately $34,898,200.00 worth of
II residential new construction last year. Now that's not our assessment process.
That's just new construction. They had approximately $4,132,500.00 of
commercial and industrial new construction. The County itself went up about
$96,483,800.00 in new construction so you can readily see that Chanhassen was a
11 big part of that and we dedicate a lot of time and a lot of effort to the
assessment process in Chanhassen. The gentleman eluded to a percentage of
increase. We do not take that tactic on most parcels that we assess. The
II parcels can be assessed every year. They must be viewed every 4 years. So
we've been a little remiss in years past about viewing the properties and some
of you readily know that the Assessor hasn't seen your property in 10 or 12
years. Maybe at your choice. When we were out all summer this past year
assessing, we left door tags. Door hangers on the properties asking for you to
contact our office and set up an appointment. Now I know that's, this meeting
tonight some of you are here as a result of that. That we wish we could have
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gotten into your property. We didn't so the end result was an assessment that
probably, or very likely could be unfair for what you actually have. Because we
were guessing more or less at the interior of your property. We have measured
the outside and we do have those numbers and we hope they're accurate. They're
a lot better than they used to be. We viewed what, about 2,700 parcels total?
Yeah. Roughly, between 2,700 and 2,800 parcels this year in the city of
Chanhassen. So it's a fair sized job to do and we didn't zero in on any one
location but we did cover a lot of the subdivisions that had been touch and go
in years past. I think if you had canvased the city you would see that there
were changes in value made across the entire city. Not anyone with Larry and
II not anyone's only your block or your house on your block or your subdivision but
they were made across the entire city. We have a use of a computer now which
enhances our operation and speeds the process up dramatically for us. We're
II being able to utilize it to a much fuller extent. We generally view all the
sales of the property because that's what drives our numbers and if houses are
selling for, just for instance $150,000.00 and we have those houses on for
$130,000.00 or $125,000.00, we are charged with bringing those up to market. So
we might bring some house up to $150,000.00. The next one might come to
$140,000.00 or $145,000.00 or whatever but there are reasons that happens and
that's not the computer's fault. That's the computer's wisdom that does that.
II It's a more objective way of calculating the numbers and establishing the value.
We work very hard to establish the criteria that that computer looks at and the
element of value that we place on each one of those items. Then we press the
' magic button, that computer does a lot of it. It still doesn't alleviate us
from the responsibility though of doing the job and doing it well. So we
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Board of Equalization and Review - April 19, 1993 1
welcome you to this meeting. We don't discourage you from attending this
meeting. We're not your adversary. We're actually your friend. We're working
for you on your side because we have to take the attitude that we want everyone
to be treated fairly and equally. We want to establish a very fair value not
only for you but for every one of your neighbors. And the end tax result is
second nature. From our perspective it has no application but the tax result
that you pay is a result of our work. We recognize that. We take
responsibility for that. The tax itself and the tax extension rate is a
function of the budget. I'd like to caution you that if you're going to speak
with us tonight, not to spend a whole lot of time talking about your taxes or
what they did. We're well aware of what your taxes did but it isn't solving
your problem. If there's a value problem with your home, I would encourage you
to get at that problem. Let the Council or the Board members know what your
problem is. If you have a general question, you can ask. We'll try to answer
it immediately. If it's an information question, if all of us will remain
halfway quiet, everyone can hear and it will probably answer a lot of questions
before you actually get your chance to speak. I have really nothing much
further.
After listening to public comment, the meeting was adjourned until May 10, 1993
at 7:00. 1
The following are the people who spoke at the Board of Equalization and Review
meeting.
Submitted by Don Ashworth
City Manager
Prepared by Nann Opheim 1
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Board of Equalization and Review - April 19, 1993
1. Thomas Lobbe R25.4200250
50 Choctaw Circle
927 -1018 (w)
Assessed at $126,100.00. Purchased the home on December 31, 1992 for
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$110,000.00 and would like to see the assessment lowered to that price.
Home needs major repairs with estimates approximating $70,000.00.
Assessors Recommendation:
Board's Action:
2. Ruth Callaquan
20 Basswood Circle
1 Purchased lot in September for $38,000.00. Lot 12, Block 2, Kurvers Point
and in 3 months it's been reassessed for $46,000.00.
Assessors Recommendation:
Board's Action:
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3. Gary McCaully
' 420 Pleasant View Road
Assessed for '92 at $119,000.00 after viewing the home. Assesment for '93
was S123,300.00. Questions whether they Assessor is doing their work.
' House 5 houses down just sold for $110,000.00 that has larger square
footage and is a brand new house.
Assessor's Recommendation:
Board's Action:
1
4. Robert Rudiman
1
Owns property next to the shopping center at TH 41 and TM 7. Thinks
property should be devalued because of shopping center, commercial
property. Assessed value increased from $109,000.00 to $126,500.00 in one
year which is more than 10 %. Should have been here last year but wasn't
available to do it.
Assessor's Recommendation:
Board's Action:
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Board of Equalization and Review - April 19, 1993
5. Randy & Jennifer Koskey
Murray Hill Road
Bought house 2 years ago and assessment has gone up 64% from '92 to '93.
When compared to neighborhood, percentage change from '92 to '93 ranged
from 7.4% to 27% increase so they feel their's at 64% is extreme. Added a
3 season porch themselves. Materials cost around $5,000.00. Assessor
assessed porch at $10,000.00. Doesn't have a problem as much with that as
much as the 64% on the entire home.
Assessor's Recommendation: 1
Board's Action:
6. Shari Harmel
Hesse Farm Road
Been in home for 2 years and when compared to neighborhood, their's is at
least $40,000.00, and in some cases higher than the rest of the homes in
the neighborhood. Homes in neighborhood are all the same number of
bedrooms. Some of the homes have pools they do not. Square footages are
comparable and exteriors are the same so cannot understand criteria for
deciding what the assessed value is. Only question the home value. Land
value makes perfect sense to them. Have comparable market values and
pictures of the home.
Assessor's Recommendation:
Board's Action: 1
7. Scott Diedrick
Question is more on the process of how assessment increases were done, and
more a question of tax increases. Assessor explained that there's no
correlation between the percentage of increase in assessment to the
percentage of increase in taxes.
Assessor's Recommendation: 1
Board's Action:
1
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Board of Equalization and Review - April 19, 1993
8. Arthur & Ronelva Kimber R25.5050060
2820 Tanagers Lane
474 -7576
Assessed valuation increased better than 12.5%. No structural changes, no
' modifications, no built on decks, no garages or room rennovations since
1965 and paid $20,500.00 for it at that time. Had lake access prior to
'83. Don't have lake access now, unless city changes it's mind. Lake
access lot is under water along with the road going to the access.
Assessor's Recommendations:
Board's Action:
9. Alan Putnam
6285 Chaska Road
20.6% increase in value with nothing done to house in the last 5 years to
' increase it other than put in a paved driveway for $1,000.00. The value
increased by $23,000.00 this last year. Think it's outrageous. The house
needs several thousand dollars worth of brick work and siding work to
repair water damage and to bring it up to what it was 3 or 4 years ago. As
well as replace most of the windows because of water damage.
Assessor's Recommendation:
Board's Action:
10. Jacobson Per
2840 Tanagers Lane
Didn't come last year with increase but it was a 25.5% last year. This
' year increase went up another 5 %, or $8,000.00. As far as tax bill is
concerned, it's a 52% increase from last year to this year on taxes. 30
year old house with no improvements except improving the deck. House is
' valued at $144,000.00. Brand new in neighborhood recently sold for
$160,000.00. Their home is 32 years old. Doesn't think they're
comparable.
Assessor's Recommendation:
Board's Action:
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Board of Equalization and Review - April 19, 1993 II
11. Bill Engelbretson R25.3000780
7120 Utica Lane
House is 23 years old now. Has got the original roof, which needs to be
replaced. Siding is original and needs to be replaced. Furnace is making
funny noises and will need to be replaced soon. Driveway went through
another winter and cracked some more. It didn't appreciate is 5% this
year, it depreciated and asked if the computer program had an age factor in
it to take these things into account. Doesn't think he could sell it for
what it's appraised at. '
Assessor's Recommendation:
Board's Action:
12. Otto Hartung
Timberwood Estates
Two building lots which are unbuildable because the City won't issue
building permits because the property is wetlands. Would valuation lowered
to zero on these two lots. Can't pay perpetual taxes on lots that have no
value.
Assessor's Recommendation:
Board's Action:
13. Irving Raymond R25.8400030
7440 Chanhassen Road
934 -4026
Lived in same house for 39 years. Valuation increased $34,000.00 a year
ago, which he just didn't know what was happening until he got his tax
statement this year. The taxes increased 89%. Moved into the house on
July 1, 1954. Lakeshore property. Highway 101. No garage. No blacktop
driveway. No additions to the house.
Assessor's Recommendation:
Board's Action:
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Board of Equalization and Review - April 19, 1993
14. Dana Nicholson R25.6150200
474 -4859 (H)
780 -5198 (W)
' Moved in 10 months ago. Assessed value is actually less than what the
mortgage company appraised but tax increase of 30%c. County Assessor asked
if they should review the home for a reassessment of value. He said he
would like it reviewed.
Assessor's Recommendation:
Board's Action:
' 15. Tim Rainey R25.2850020
6271 Hummingbird Road
474 -1648
' Assessment increased to $131,900.00 in 1991 when kitchen was remodeled on a
37 year old house. Did most of the work himself and at that time he
complained about the increase in taxes and was told that the value was at
' 100% of the assessed value. This year it's gone up to $141,200.00 and
being told the same thing today. Real estate values in neighborhood have
not gone up. When ask about comparable prices on houses that have sold,
the Assessor says there's nothing in his neighborhood that's comparable.
Thinks Murray Hill area got hit unfairly.
Assessor's Recommendation:
1 Board's Action:
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16. Dean Wieber R25.8650190
6357 Oxbow Bend
844 -3412
' Just moved into a house 1 year ago. If take purchase price, add
landscaping that was done, need to add 28% to that to get the assessed
value that was on the notice. Asked what the sales ratio for residential
single family. Orlin Shafer stated it was currently running at about
94.6%.
Assessor's Recommendation:
' Board's Action:
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Board of Equalization and Review - April 19, 1993
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17. Peter Brandt R25.8140020
7570 Dogwood Road
751 - 6022/470 -4566
Also submitted written letter. Purchased property about 3 years ago and
then built home. Is questioning the value of the land. As a result of
subdivision, part of land was declared wetland, trail easements taken, and
utility easements taken. So net acreage that can actualy be used for
residential purposes, it's down to about 2.8 acres. Their land value is
much higher than neighboring property. They've 6.2 acres of farmland and
then 3.8 acres that can be used for residential purposes. In talking with
Orlin Shafer, the farmland is valued at between $2,500.00 and $3,000.00 per
acre which means on the top end talking about $18,600.00 of farmland. On
the lake side, comparable property in neighborhood is anywhere from
$60,000.00 up to about $110,000.00. Assessed value of land is at
$204,000.00. 50 if you add the farmland piece together with the lakeshore
piece, the price is very different than $110,000.00 at the top end and
$20,000.00 for farmland.
Assessor's Recommendation:
Board's Action: '
18. Mark Rogers R25.6150140
3851 Leslee Curve
470- 0086/330 -7608
Also submitted written letter. Question regarding sales ratio. When he
was here in 1988, used figure .9, not .95 or .96 as their target. Both the
Assessor and the Board members were aiming at .9. Asked if this was a new
target figure. Orlin Shafer indicated it was a result of the law that's ,
been in effect for many years which stated market value. Assessment from
'92 to '93 increased 5.1 %. This year it's increased 9.9 %. Home was built
in 1957 and there's no comparison to the new ones built today. Economy's
not increasing at 10 %. His income isn't increasing at 10 %. Not happy.
Assessor's Recommendation:
Board's Action:
19. Herbert J. Kask
115 Pleasant View Road
474 -8673
Would like to know if the City Manager, Mayor and the City Council can all
say that their assessments are at 95% of the true market value.
Assessor's Recommendation:
Board's Action: '
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Board of Equalization and Review - April 19, 1993
20. Dennis Clark
Trunk Highway 41
Two parcels of land on Highway 41 between Minnetonka Intermediate School
' and pond. Questioning how Assessor is classifying the body of water
property is on. Doesn't think it should be assessed as lakeshore. Orlin
Shafer said he felt it was being assessed as a pond, not lakeshore. Also
' has an easement running through the property. Half of property is under
water.
' Assessor's Recommendation:
Board's Action:
21. John Schevenius
' 570 Pleasant View Road
474 -2617
' In 1991 when home was refinanced through the VA, assessment last year were
8% above that value. This year they'll be about 17% over that value. Did
start building garage last year, which is not yet quite complete. Back in
' 1940 when he first lived there going to high school, Pleasant View Road was
very quiet road, which it is not today. The property on the lake has
decreased due to the traffic on Pleasant View Road.
Assessor's Recommendation:
Board's Action:
22. Herb Pfeffer
2850 Tanagers Lane
474 -5028
' Thinks something needs to be done about escalating taxes. Right now his
taxes are close to his mortgage payment. What's happening in Minnesota?
What's happening in Chanhassen? Would think with increase in tax base with
' new industry and residential development in city, taxes would go down or at
least stay the same. Within last 2 years, 56.5% increase in market value.
Orlin Shafer asked if house should be reviewed and said it was just
reviewed last year.
Assessor's Recommendation:
Board's Action:
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Board of Equalization and Review - April 19, 1993 1
The following are written comments to the Board of Equalization and Review:
23. Donald M. Oelke R25.0022700
6431 Yosemite Avenue
474 - 0171/441 -6631 1
Assessment increased from $92,000.00 for 1992 to $105,900.00 to $118,600.00
for 1994. Feels property has really depreciated because of property next
door which the city has allowed to go unfinished on a building permit.
Feel assessment should remain at $105,900.00 level until building permit is
completed on neighbor's property.
Assessor's Recommendation:
Board's Action: '
24. Martha Heiberg R25.4810160
3941 Linden Circle
474- 2466/835 -3222
Assessment increased from $75,100.00 to $87,600.00 to $96,200.00 which is
excessive.
Assessor's Recommendation:
Board's Action:
25. Douglas & Sherry Swanson
1780 Koehnen Circle
474- 2027/933 -1868 ,
Value too high with house not completely finished (basement) and no
improvements done. '
Assessor's Recommendation:
Board's Action: ,
26. Donald J. Dudycha Jr. R25.2640020-9840 Deerbrook
8347 Mitchell Road R25.2640010 -9820 Deerbrook
Eden Prairie, MN 55347
934 - 6558/935- 1555(w)
Lot on 9840 Deerbrook is unbuildable according to the City of Chanhassen
and paid $5,000.00 for it on 12/12/92. Paid $25,000.00 for lot at 9820
Deerbrook on 12/12/92.
Assessor's Recommendation:
Board's Action: 1
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Board of Equalization and Review - April 19, 1993
27. John R. Braden Jr.
502 Laredo Lane
934 - 0547/673- 5620(W)
Property is assessed higher than comparable homes in neighborhood.
Assessor's Recommendation:
Board's Action:
28. Timothy L. Rashheger R25.1920020
' 7870 Park Drive
474 - 2635/474 -8100 (W)
' Feel property is assessed too high and would property reviewed.
Assessor's Recommendation:
Board's Action:
I 29. Gary Carlson R25.7700070
3831 West 62nd Street
474 -3354
' Doesn't feel yearly increases in assessment are higher than inflation and
the property is assessed higher than what it could be sold for.
' Assessor's Recommendation:
Board's Action:
30. Gary D. & Maureen G. Carlson R25.5080130
' 3831 West 62nd Street
474 -3354
Home has been on the market at $129,000.00 for 1 1/2 years and hasn't sold.
' Assessor's Recommendation:
Board's Action:
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Board of Equalization and Review - April 19, 1993
31. Mark Paulson R25.2620100
1321 Stratton Court
470 - 4475/368- 1346(w)
Assessment rose $10,000. in 1992 and $23,500. in 1993 and feel assessment
of $164,800. is higher than 95% of fair market value.
Assessor's Recommendation:
Board's Action:
32. James D. Bennyhoff R25.6150070
3931 Leslee Curve
474- 5118/473- 9561(w)
House is 36 years old and is assessed higher than neighborhood homes.
Recent homes sales have been lower than expected and neighbor's house
reduces value of this property. 1
Assessor's Recommendation:
Board's Action:
33. Char Jeurissen R25.4020010 '
1421 Lake Susan Hills Dr.
368 - 4150/937- 9750(w)
Purchased home April 24, 1992 and value has not increased in one year by
$10,300.00 from $104,900. to $115,200. Water problems in basement have not
been fixed. (95% =$108,300.) '
Assessor's Recommendation:
Board's Action: '
34. Dan Ooenges R25.2730360
6518 Gray Fox Curve
949- 2650/368- 1174(w)
Assessment increased from $108,000. to $128,400. in one year which is '
excessive.
Assessor's Recommendation: '
Board's Action:
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Board of Equalization and Review - April 19, 1993
35. Janine & Al Afflitto R25.5500270
94 Olympic Circle
470 - 6371/376 -7098 (J) 930 -6291 (Al)
No comment.
Assessor's Recommendation:
Board's Action:
36. Stewart & Karen Reamer R25.6810020
1331 Ashton Court
474- 4481/932- 9032(Karen)
No assessor visited property (no door hangers left). Rambler is 50 years
old with no improvements in last 15 years. No similar houses in area since
new development is going on all around property.
Assessor's Recommendation:
Board's Action:
37. Joan Skallman R25.4810070
6590 Joshua Circle
474 -0733
Assessment has increased $10,000. to $85,400. in 1992 and then to $98,300.
in 1993 with no improvements other than interior and exterior painting.
Assessor's Recommendation:
Board's Action:
38. Joseph & Adrienne Carrica
900 Homestead Lane
496 -1326
Last year an agreement was reached to value the home at $192,600. which
they are still protesting.
Assessor's Recommendation:
Board's Action:
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