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06-01-1987 Board of ReviewCITY OF RICHFIELD, MINNESOTA 1987 BOARD OF REVIEW MEETING June 1, 1987 BOARD OF REVIEW MEMBERS PRESENT: John Hamilton, Mayor; Ivan Ludeman; Michael Sandahl; Martin Kirsch; Edwina Garcia; Lawrence Emond; and John Janski. STAFF PRESENT: James Prosser, City Manager; Steven Devich, Administrative Services Director; Thomas P. Ferber, City Clerk; Larry Miller, Hennepin County Principal Appraiser; Tom Holmes, Hennepin County Senior Appraiser; and John Dean, Assistant City Attorney. The meeting was called to order by Mayor Hamilton at 7:02 p.m. City Manager Prosser reviewed Council Letter No. 168 regarding the duties and responsibilities of the Board of Review. Item#1 APPEAL BY THOMAS CUNDY, 6204 IIPTON AVENUE SOUTH. P.I.D. 29-028-24-12-0035. Thomas Cundy, 6204 Upton Avenue, stated that the location of his home adjacent to the 62 Crosstown Freeway subjected the property to excessive traffic noise which would support a lower Estimated Market Value {EMV). He cited a letter from Edina Realty which stated this property has a value 10% less than a similar property which is not located adjacent to the Crosstown. Larry Miller,-Hennepin County Principal Appraiser, compared the value of the subject property to comparable properties and recommended that the Board sustain the assessor's. determination of an Estimated Market Value of $78,100 for this property. Mr. Miller stated that the location~of the property had been taken into account and the EMV was 5% - 10% less than what it would be if it was located elsewhere in Richfield. Mr. Cundy stated that the comparable properties cited by Mr. Miller were not as severely impacted by the freeway noise because of the grade depression of the freeway and distance from the freeway. Mr. Cundy stated that the EMV for his property had been reduced in 1984 and asked that no increase be given for 1987. Board Member Emond stated that Mr. Cundy had sold the property, for $84,900 in 1982 and that the 1987 EMV of $78,100 is at least 10% below what the property could be sold for on the market. He reviewed the sales of similar properties in the area. Board of Review Meeting Minutes 2 June 1, 1.987 Board Member Janski stated Mr. Miller had used the proper techniques in determining the EMV of the property and had presented evidence to support his conclusion. Barbara Cundy, 6204 Upton Avenue, stated that home has not changed and she could not understand why the EMV had been reduced in 1984 and was being raised in 1987. Board Member physically inspec value increase or Larry Miller 1984 based on the available in 1987 time. Ludeman stated that 25~ of the homes are ted each year and that the percentage of market decrease is applied to all homes in Richfield. stated that he had reduced the market value in inspection at that time and that the data supports an increased market value at this Lawrence Wozniczka, 6744 Wentworth Avenue, suggested that comparable property data should also include market and assessed value information in addition to sales data. M/Sandahl, S/Ludeman of $78,100 as the Estimat at 6204 Upton Avenue. (P.I.D. 29-028-24- Motion carried 7-0. 12-0035 Item #2 APPEAL BY SIDNEY SANFORD, 7000 PORTLAND AVENUE SOUTH. P.I.D. 34-028-24-11-0071. Sid Sanford, 7000 Portland Avenue, stated that his property is adversely affected by traffic noise of 92-96 dba. He stated that several homes in his area had sold below assessed value. He stated that overinflation of values has caused problems for financial institutions and that values should be decreased. He stated that because his home had never been sold, any value placed on it is pure speculation. Larry Miller, Hennepin County Principal Appraiser, noted that Mr. Sanford had declined to let him review the property and compared the value of .the subject property to comparable properties and recommended that the Board sustain the assessor's determination of an Estimated Market Value of $83,000 for this property. 1 Mayor Hamilton noted that he had observed the noise problem at the subject property and asked Mr. Sanford why he did not permit the assessor to inspect the property. to sustain the assessor's determination d Market Value of the property located. Board of Review Meeting Minutes 3 June 1, 1987 Mr. Sanford stated that the property had been inspected before and there had been no changes so he felt it would be a waste of time. Board Member Ludeman asked how the difference between assessed ground floor area and assessed gross floor area is weighed in the overall assessment. Larry Miller reviewed the gross building area and ground floor area concepts as used in comparing properties. Board Member Janski asked if the EMV reflected the Portland Avenue location. Larry Miller responded that the value did reflect the adverse impact of the location. Board Member Sandahl asked Mr. Sandford what he felt the EMV should be. Mr. Sanford stated that it was his opinion it should be $72,500. Thomas Cundy, 6204 Upton Avenue, asked that the Board be aware that when he sold his home in 1982, he gave a very favorable 12°s interest rate which is why he was able to get $84,900 at the time. Council Member Ludeman asked what the EMV for 7000 Portland Avenue was in 1986 and how much an average home went up in Richfield. Larry Miller responded that the EMV was $79,000 last year and that the average increase was 3.6~s. M/Ludeman, S/Sandahl to reduce the Estimated Market Value of the pro erty located at-7000 Portland Avenue (P.I.D. 34-0__2_8-24- 11-0071) from $83,000 to $81,500. Motion carried 6-1. (Garcia opposed) Item #3 APPEAL BY CAROL INGERSOLL 7327 THOMAS AVENUE SOUTH P.I.D. 32-028-24-14-0121 Carol Ingersoll, 7327 Thomas Avenue, stated that she wished to appeal the EMV for this property because she had been advised that the condition of the property would warrant a lower value. The Board directed Mr. Miller to physically review this property and decided to defer action on the appeal. Board of Review Meeting Minutes 4 June 1, 1987 M/Ludeman, S/Sandahl to defer consideration of the appeal of - Carol Ingersoll of the Estimated Market Value of the property located at 7327 Thomas Avenue (P.I.D. 32-028-24-14-0121) to the date the Board reconvenes. Motion carried 7-0. Item #4 APPEAL BY REVIN RILIAN, 7009 5TH AVENUE, P.I.D. 34-028- 24-11-0085. Kevin Kilian, 7009 5th Avenue, appealed the EMV for his property on the basis that the purchase price was less the EMV. The Board directed Mr. Miller to physically review this property and decided to defer action on the appeal. M/Ludeman, S/Sandahl to defer consideration of the appeal of Kevin Kilian of the Estimated Market Value of the property located at 7009 5th Avenue (P.I.D. 34-028-24-11-0085) to the date the Board reconvenes. Motion carried 7-0. Item #5 APPEAL BY DAVID HANSON, 6436 OLIVER AVENUE SOIITH (APARTMENTS) P.I.D. 28-028-24-23-0005. Larry Miller, Hennepin County Principal Appraiser, stated that Mr. Hanson had filed a written appeal, and submitted data to the Board but was :not in attendance tonight. M/Ludeman, S/Sandahl to sustain the assessor's determination of $468,000 as the Estimated Market Value of the property located at 6436 Oliver Avenue.. (P.I.D. 28-028-24-23-0005)' Motion carried 7-0. Board of Review Meeting Minutes ~z~ ~~I11;~; I :I ~; M 4' 5 M/Sandahl, S/Ludeman to adjourn the meet the 1987 Board of Review on Monday, June 8, 1 the Citv Council Chambers to consider the pen Motion carried 7-0. 1 The meeting was adjourned at 8:00 Date Approved: 6/22/87 ~~,~~~ ~~ Thomas P. Ferber City Clerk ~~ ~ i Ja a Prosser Ci Manager June 1, 1987 and to reconvene at 6:30 p.m. in appeals. Mayor