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05-01-89 agendaCITY OF RICHFIELD, MINNESOTA Council Letter No. 103 Agenda May 1, 1989 Issue Statement: Convening of the 1989 Board of Review. Background• The 1989 Richfield Board of Review is scheduled for Monday, May 1, 1989 at 7:00 p.m. in the Council Chambers of City Hall. As provided by City Charter, the Board of Review consists of the Mayor, Council Members, and two citizens appointed by the City Manager with confirmation by the City Council. Mr. Lawrence Emond and Mr. John Janski were recently appointed to serve on the 1989 Board of Review. The duties and responsibilities of the Board of Review are established by state law. In general, it is the Board's responsibility to hear appeals by property owners from the Estimated Market Values established by the City Assessor and to determine if market values should be adjusted. The appeals typically concern market values rather than tax rates or other concerns which property owners may bring up to the Board. Each parcel of property in Richfield has had an Estimated Market Value (EMV) set as of January 2, 1989. Overall, residential - property values increased by approximately 1.5$ from 1988 values. Properties which were physically reappraised received reductions and increases, but were generally increased. Properties which were not physically reappraised received statistical adjustments based on the characteristics of the property and a computer assisted assessment. For the eighth year, the Richfield property assessment has been conducted through a contract with Hennepin County which is supervised by the Administrative Services Department. Staff works closely with the Hennepin County property appraisers to ensure that the local assessment complies with the provisions of the law. For example, the Administrative Services Director verifies that the number of on-site properties appraised for 1989 exceeded the standard (25$ of total properties in the City) established by law. In addition, the median ratio (comparing Estimated Market Value to sales price) for Richfield's 1989 Assessment is 92.6$. The County Auditor's suggested level of assessment (median ratio) for all municipalities in Hennepin County is 92.5$. Thus, the Richfield local assessment is on target with comparable Hennepin County communities. In March, property valuation notices were mailed to all property owners showing the 1989 Estimated Market Value. The notices advised property owners to contact the City Assessor's office regarding any questions or to schedule an appearance before the Board of Review if the property owner desired to challenge the EMV. About 250 inquiries have been received to date, as compared to 472 last year. In addition, 60 property reviews were done by Assessing staff. Some resulted in adjustments by the Assessing staff. To date, the City has received three notifications of appeals to the Local Board of Review. All of these individuals indicated that they will appear before the Local Board. A list of the property owners who are appealing their EMV is attached to the Council Letter. Any adjustments made by the Richfield Board of Review will be recorded on the property assessment rolls. After appearing at the Local Board, property owners-may subsequently appeal to the Hennepin County Board of Review, and then to the State Board of Review and/or the State Tax Court. Recommended Motion: It is recommended that the Board of Review convene at 7:00 p.m. on Monday, May 1, 1989 and conduct the business scheduled for the Board. Basis of Recommendation: 1. State Statute and City Charter mandate a Board of Review Hearing each year to be conducted before May 31, 1989. 2. The City Council has established Monday, May 1, 1989 at 7:00 p.m. as the date and time of the Board of Review Hearing for 1989. 3. Notice of the Hearing has been published and posted pursuant to law. Alternative Recommendation: None Discussion/Decision Mode: The Hearing is likely to be conducted and complete on May 1, 1989. However, if it becomes necessary, the meeting could be continued to a future date in May. Respectfully submitted, Jame Prosser City anager JDP:eja 1. James Giordano 6607 Lynwood Boulevard 2. Kathleen Hanson 6424 20th Avenue South 3. Vernon Dworshak 7226 Queen Avenue South SUBJECT PROPERTY Address 6424 20th Avenue South PID 25-028-24-23-0110 Story Height one Baths _ 1st Floor Area 768 ~ Baths one Gross Building Area 768 Finished Basement 600 sq. ft. Year Built 1956 Walkout no Condition Avg• Fireplace no 1st Floor Rooms Kitchen, living room, Air Conditioning Yes two bedrooms Garage 1027 sq. ft. 2nd Floor Rooms Porches/Deck -160 sq. ft. deck Bedrooms. Two Lot Size 50 x 135 Comments: Purchased 2/87 $71,900 a GRID - COMPARABLE DATA APPLICANT'S NAME: ADDRESS: PROPERTY ADDRESS: P.I.D. #: MUNIC: TYPE OF BLDG.: UNIT LOCATION: 1ST FLOOR AREA: GROSS BLDG. AREA: YR. OF CONST.: CONDITION: 1ST FL. ROOMS: 2ND FL. ROOMS: BEDROOMS: BATHS: HALF BATHS: SIN. BSMT. SQ.FT.: WALKOUT: FIREPLACE: AIR COND: GARAGE AREA: PORCH AREA: LOT SIZE: James Giordano 6607 Lynwood Blvd 1112 W 66th St #1 28-028-24-13-0124 Richfield SUBJECT PROPERTY Condo Lower Level 1062 1062. 1981 Avg 4 2 1 1 single Common. Area COMPS-SALE DATA: SALE DATE SALE PRICE SALE/SQ.FT. SUBJECT-APPRAISAL DATA: l~g8g ASSESSMENT APPRAISAL/SQ.FT. REPIARKS 1005 Rae Dr 1025 Rae Dr 1025 Rae Dr 1118 W 66th #7 #7 #5 #3 COMP #1 COMP #2 COMP #'3 COMP #4 Condo Condo Condo Condo Lower Lower Upper Lower 1062 1062 1062 1062 1062 1062 1062 1062 1881 1881 1881 1881 Avg Avg Avg Avg 4 4 4 4 2 2 2 2 1 1 1 1 single single single single Common Area Common Area Common Area Common Area 4-81 7-88 5-88 5-87 12-87 $6g,g00 $74,900 $80,000 $6g,g00 $70,000 $65.8 1 $70.52 $75,32 $65.81 $65.91 $73,100 $68.83. GRID - COMPARABLE DATA 'PLICANT'S NAME: Kathleen Hanson „QDRESS: :f - 6424 20th Avenue South PROPERTY ADDRESS: 6424 20th Avenue South P.I.D. #: 25-028-24-23-0110 MUNIC: Richfield SUBJECT 6429 22nd '6321 22nd PROPERTY COMP #1 COMP #2 TYPE OF BLDG.: STORY HEIGHT: 1ST FLOOR AREA: GROSS BLDG. AREA: YR. OF CONST.: CONDITION: 1ST FL. ROOMS: 2ND FL. ROOMS: BEDROOMS: BATHS: HALF BATHS: :N. BSMT. SQ.FT.: WALKOUT: FIREPLACE: AIR COND: GARAGE AREA: PORCH AREA/DECK: LOT SIZE: COMPS-SALE DATA: SALE-DATE SALE PRICE SALE/SQ.FT. SUBJECT-APPRAISAL' DATA: 1989 ASSESSMENT APPRAISAL/SQ:FT. REMARKS: Rambler Rambler Rambler one one one 768 888 768 768 888 768 1956 1957 1957 Avg Avg Avg 5 5 4 2 3 2 1 1 1 600 400 0 no - no ~ no no no no yes no yes 1027 s.f. 576 s.f. 308 s.f. 160 s.f. deck 149 s.f. deck no 50x135 50x135 50x135 2-87 g-87 7-88 $71,800 $73,500 $62,000 $93.62 $82.70 $80.73 $63,700 $82.94 6513 .19th COMP #3 Rambler. one 748 748 1957 Avg. 4 2 1 400. no no yes 576 s . f . no 50x135 g-88 $66,500 $88.90 COMP #4 SUBJECT PROPERTY Address 7226 Queen Avenue South PID 32-028-24-14-0026 Story Height one 1st Floor Area 1080 ~ Baths Baths one none Gross Building Area 1080 Finished Basement 400 sg. ft. Year Built 1847 Walkout no Condition Avg. Fireplace no 1st Floor Rooms Kitchen, living room Air Conditioning yes three bedrooms Garage 24 x 36 2nd Floor Rooms Bedrooms three Porches/Deck 250 sg. ft. deck Lot Size 75 x 134 Comments: New roof, new siding and windows on front and north side GRID - COMPARABLE DATA APPLICANT'S NAME: Vernon Dworshak ,DORESS: 7226 Queen Avenue South PROPERTY ADDRESS: 7226 Queen Avenue South P.I.D. #: 32-028-24-14-0026 MUNIC: Richfield SUBJECT 2901 W 71st 6829 Thomas 7332 Thomas PROPERTY COMP #1 COMP #2 COMP #3 TYPE OF BLDG.: Rambler Rambler Rambler Rambler STORY HEIGHT: one one one one 1ST FLOOR AREA: 1080 g28 1040 884 GROSS BLDG. AREA: 1080 g28 1040 884 YR. OF CONST.: 1947 1957 1971 1950 CONDITION: Avg Avg Avg Avg 1ST FL. ROOMS: 5 5 5 5 2ND FL. ROOMS: __ __ __ __ BEDROOMS: 3 3 3 3 BATHS: 1 1 3/4 1 1 HALF BATHS: SIN. BSMT. SQ.FT.: 400 450 300 400 WALKOUT: no no no no FIREPLACE: no no no no AIR COND: ' yes yes yes%~ no GARAGE AREA: 864 484 280 440 PORCH AREA: deck 250 none none none LOT SIZE: 75 x 134 75 x 135 5o x 127 75 x 135 COMPS-SALE DATA: SALE DATE 2-88 6-88 8-88 SALE PRICE 78,000 78,000 73,500 SALE/SQ.FT. 84.05 75.96 83.15 SUBJECT-ASSESSMENT DATA: 1989 MKT. VALUE 78,300 ASSESSMENT/SQ. FT. 72.50 REMARKS: Recommend no change COMP T4 Installed after purchase