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BOR 2005 04 25 05 CHANHASSEN BOARD OF REVIEW AND EQUALIZATION SPECIAL MEETING APRIL 25, 2005 Mayor Furlong reconvened the Board of Review and Equalization at 5:05 p.rn.. COUNCIL MEMBERS PRESENT: Mayor Furlong, Councilwoman Tjornhom, and Councilman Peterson COUNCIL MEMBERS ABSENT: Councilman Labatt and Councilman Lundquist STAFF PRESENT: Todd Gerhardt, City Manager; Justin Miller, Assistant City Manager; Angle Johnson, Carver County Assessor; Steve Clay, Carver County Assessor; and Cassie Zimmer, Carver County Assessor. Mayor Furlong: I'll reconvene the Board of Review for the City ofChanhassen and I guess go straight to the staff report that we received two requests at our last meeting. I understand a third came in subsequently as well. Angie Johnson: Correct. Mayor Furlong: So why don't we go ahead to a brief staff report here please. The update of what we have or just for the record. Justin Miller: I think you did receive the two requests from the last meeting. The assessors as I understood it met with both applicants and they are recommending no change to those assessments. The one before you tonight, maybe Angie, can you respond a little bit more. Angie Johnson: This is an office building that is off of Highway 7 just west of County Road 41 and it's in a non-conforming area. Basically it's zoned as single family residential and it's the only office building right there. And so Mr. Woosley has always, I think we've talked almost every year. It's always you know very skeptical about his values and increases, and that and I did talk to Bob Generous... the zoning of it and if it met with Mr. Woosley expecting some income information and I pulled out some sales that I attached onto. . . that are similar to his. One thing that Mr. Woosley property, of course it's larger than most. It's over 2 acres where a lot more use than an office building space, and basically that's where, between the analysis came up with a reduction of the land value of $17,600 so reducing total market value from $238,700 to $221,100. Questions? Mayor Furlong: Is this the that single story, kind oftanish brick building just on the south side of 7 there? Angie Johnson: Right. Right. Board of Review and Equalization - April 25, 2005 Mayor Furlong: Okay, any questions for the assessors? No? I guess I'll bring it back to comments. My sense is that based upon the information in the staff report and what we received from the residents last time I'm comfortable going forward with the recommendation of the County Assessor, unless there's something that I'm missing. Councilman Peterson: I would agree. Mayor Furlong: Okay. Councilwoman Tjornhom: Are we speaking of just this one issue? Mayor Furlong: Any or all three. Councilwoman Tjornhom: Okay, then I do have some comments. Mayor Furlong: Alright, let's take those up right now. Councilwoman Tjornhom: Alright. I do have some hesitation with Mr. Deng's. Deng. Is that how you pronounce it? Charles and Susan. You know analyzing I just see that his property was assessed equally in his neighborhood I think it was, I think it was under assessed earlier and then it, I mean 18% was kind of a huge hike I thought in one year. So that's my only thought is that's kind of a big pill to swallow all in one chunk. Angie Johnson: This past year, this year we're going to be doing as part of our... work to make sure that we're getting in all these copies in this neighborhood, but when Steve was looking at the sales, there's quite a bit of inequity there and that's why there's a lot of fluctuation and basically he went through and I don't know, Steve can give you more of an analysis but just basically use the GIS mapping of what, looking at different factors, that's why there were different and basically what we were trying to do is create an equity there. So that's why his went up quite a bit. Councilwoman Tjornhom: Yeah, and I understand that but I guess I do think 18% is quite a large hike in one year and so you know I could see maybe a 10% or 11 % or maybe catching up gradually perhaps. Angie Johnson: That's not the way we're supposed to do it but that's up to you. Councilwoman Tjornhom: That would just be my thought I guess. Justin Miller: Angie, they did add a finished basement this past year, isn't that one of the reasons it went up? Angie Johnson: Yeah. Mayor Furlong: There were some improvements? 2 Board of Review and Equalization - April 25, 2005 Angie Johnson: Yeah. And that was one thing, correct? Councilwoman Tjornhom: Okay. Steve Clay: That was a Centex development, fairly small for their usual type of thing, and they finally finished building the last house in there I believe a year or two ago. We typically wait til an area is finished before we go back in and look at one person and do a core tile or look at all homes. But I looked at it this past fall. I think it was 5 or 6 probably different appraisers over the course of the last 4 years have been out there with individual houses they were building. You're looking at it with different sets of eyes and we have a number of properties that were quality graded pretty low, more than they should have been and some that I thought were a little bit higher than they should have been so I adjusted those and it improved the equity within that neighborhood. And it was kind of spurred by the fact that in 2002 there was 2 sales or re-sales of property in 2002. And then in '04, all of a sudden there was I think 9, 8, or 9 sales, which told us okay, now it's pretty clear that we're really missing the mark on some of these. And that's what prompted me to do that. In a quick review of those quality references. I think the general changes in that neighborhood area ran from 2 to 3 percent to some were over 20. Angie Johnson: Yeah, it was a range of them but it was just making it, the equity in that neighborhood. Steve Clay: If you add, if you factor in the addition, the improvements to be made along with the normal increase, then he's in the same boat as every other citizen basically. Angie Johnson: Right. The thing is ifhe would adjust his down and basically his would be lower than the rest and cause another inequity you know. Mayor Furlong: Okay? Okay. Thank you. Are there any other questions on either the two other properties here? Is there a motion? Councilman Peterson: Motion to approve as submitted by staff. Mayor Furlong: All three? Councilman Peterson: Yeah. Mayor Furlong: Thank you. Is there a second? Councilwoman Tjornhom: Second. Mayor Furlong: You'll second? Okay. Very good. Is there any discussion on the motion? Councilrnan Peterson rnoved, Councilwornan Tjornhorn seconded that the Board of Review and Equalization approve the three appeals as presented by staff. All voted in favor and the rnotion carried unanirnously with a vote of 3 to O. 3 Board of Review and Equalization - April 25, 2005 Mayor Furlong: Is there anything else to come before the Board of Review and Equalization? If not, then we're free to adjourn and close? Todd Gerhardt: Yep. Mayor Furlong: Alright, is there a motion to adjourn? Councilwornan Tjornhorn rnoved, Mayor Furlong seconded to adjourn the Board of Review and Equalization. All voted in favor and the rnotion carried unanirnously with a vote of 3 to O. The rneeting was adj ourned at 5: 15 p.rn.. Submitted by Todd Gerhardt City Manager Prepared by Nann Opheim 4