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05-30-1984CITY OF RICHFIELD, MINNESOTA LOCAL BOARD OF REVIEW MAY 30, 1884 The meeting of the Richfield Board of Review was called to order at 7:05 p.m. by Mayor Hamilton. Members Present: Bunee, Kirsch, Ludeman, Priebe, Mayor Hamilton, and citizen appointees Lawrence Emond and John Janski. Mayor Hamilton announced that the Local Board of Review was convened, pursuant to state law, in order to consider appeals from property owners in Richfield concerning the valuation established for their property. Ron Rankin, Assistant City Manager/Administrative Services Director, told the Board that all property had an estimated market value established by the Assessing Division as of January 2, 1984. Overall, residential property values in Richfield increased by approximately 1.2~ over 1983 values. He noted that properties which were physically reappraised received reductions and increases, with no overall trend to those values. Rankin said the Richfield property assessment is conducted through a contract with Hennepin County, supervised by the Administrative Services Department. He introduced Larry Miller and Ken Born, members of the Hennepin County Assessing staff assigned to the City of Richfield. Rankin said property valuation notices were mailed to Richfield property owners in late April, and the notices requested property owners to contact the City Assessors office - - -- - regarding questions-or- to schedu-fie- a-n appearance- before the Board of Review. Prior to the commencement of the meeting, only two property owners had scheduled appearances, but others had expressed an interest in making an appearance. Mayor Hamilton called on Dr. Renneke, 7533 Sheridan Avenue, to make his appeal to the Board. Dr. Renneke quoted a state statute regarding the need for Local Boards of Review to consider the value of comparable properties in making their determinations. He asked for a reduction in value from that set by the Assessor, and reviewed a lengthy history of values which had been set for his property and his previous appeals from values established by the Assessor. Dr. Renneke read from a prepared statement outlining his appeal. He requested a residential valuation for his property, since he did not believe the dental office addition added any resale value. Larry Miller said the 1983 value for Dr. Renneke~s property was $96,200 and the 1984 value is $96,600, an increase of $400. Miller reviewed values of comparable property, and commented on the difficulty in establishing value on an residential property with a dental office. John Janski said that combination offices do sell periodically, although there are not a lot of them. He said he believed the Assessor's square foot values have tried to take into account the fact that the office is not as valuable. Discussion followed concerning the location of the dentist office, and the extent of increases made for Dr. Renneke's property. Dr. Renneke said he thinks his house is worth approximately $85,000, and that the office does not add any value to the property. Priebe noted that market value is not determined by the use of the property, but would be paid by a buyer of the property. Bunce noted that previously the city had reduced the value, and it had been raised by the Hennepin County Board of Review. Motion by Ludeman, second by Priebe to leave the value for Dr. Renneke's property at 7533 Sheridan at $96,600, the ~iaiue established by the City Assessor. Kirsch, Ludeman, Priebe, Hamilton, Emond and Janski voted "aye", Bunbe voted "no". Motion carried . The next person to appear before the Board was Mr. Sid Sanford, 7000 Portland Avenue. Mr. Sanford said his value had increased from 1983 by approximately 12.5, and he thinks the value has been over- inflated in the last several years. He further noted the difficulty of retired people and those on fixed incomes keeping up with property taxes. He said he believes the value on his property should be approximately $50,000. Mayor Hamilton asked about the impact of traffic on the value of Mr. Sanford's property. Mr. Emond said a location on a busy street will have an impact on the value, and that this should be taken into account. Discussion followed concerning the location of the property, lot size, and various characteristics of the property related to its value. Mr. Emond said that 5-b$ economic depreciation should be taken into account because of the traffic impact. Motion by Bunce, second by Ludeman, to reduce the value established for Mr. Sanford's property at 7000 Portland Avenue South from $83,500 to $78,500. All voted aye, Motion carried. The next person to appear before the Board was Mr. Larry Wozniczka, 6744 Wentworth Avenue South. Mr. Wozniczka said that a value of $95,400 was set for both the 1884 and 1983 assessments, he wished to appeal both. Rankin noted that it would not be possible under the law for Mr. Wozniczka to appeal the 1983 value, but the Board could consider the value set for 1984. Mr. Wozniczka said he had an appraisal from a r.ealtor which suggested a lower value for his property. He said he thought a fair value for the property would be approximately $90,000. 1 Larry Miller reviewed the characteristics of the property taken into account in the valuation. He gave a speci.fie description of the property characteristics for consideration by the Board members. Priebe noted that the overall average increase was greater than 1°6, but Mr. Wosnicska had been given no increase from 1983 to 1984. He said it would be hard to decrease the value when nearly all other properties have increased. Mr. Janski discussed the gross square foot area of the house as related to the value set by the Assessor, and said he does not believe the property is over-valued. Motion by Ludeman, second by Priebe, to leave the value of $95:400 for Mr. Wosnicska~s property at 6744 Wentworth Avenue South as established by the City Assessor. All voted aye, Motion carried. The next person to appear was Mr. Jay Olson, 6644 Elliot Avenue. Mr. Olson said his concern was about the value for property he plans to buy being in line with other property in the neighborhood. He said a value had been set for 1984 of $107,400. He noted that the house had previously been through a fire., and said he thinks the value should be in the range of $94- 95 , 000 . . Larry Miller said he had conducted a review appraisal of the property today, and had reduced the value from $107,400 to $102,300. Discussion followed concerning the expected sale of the property t•o Mr. Olson, and the size and characteristics of the property. Motion by Ludeman, second by Priebe, to have the value of the property at 6644 Elliot Avenue remain at $102,300. as revised by the City Assessor. Discussion followed by Mr. Emond and Mr. Janski concerning comparisons of this property and a 2-story house discussed earlier by the .Board. They believed it may be appropriate to consider a slight reduction in the value of the property. The motion and second were withdrawn. • Motion by Ludeman, second by Priebe, to adjust the value of property at 6644 Elliot from $102,300 to $100,000. All voted aye, Motion carried. The next persons to appear were Ben and Doris Van Campen, 6615 Lakeshore Drive, Unit 701. Mrs. Van Campen.said that they are not protesting their taxes, but did not understand how the value had been calculated for their property, especially regarding the amounts paid for garage space at the Lake Shore Drive Condominium building. After further discussion, the Board requested the Assessing Division to meet with Mr. and. Mrs. Van Campers and better describe to them how the value of their property is calculated for tax purposes. Mr. Miller said he would do this. Motion by Ludeman, second by Priebe to adjourn the meeting of the Richfield Board of Review. All voted aye, Motion carried. No other persons wished to appear before the Board. p.m. The meeting of the Board of Review was adjourned at $:30 Date Approved; July 23, 1984 ~~ onald Rankin Acting City Clerk -- _ -_ 1