Maple Grove 2015 Board of Appeal and Equalization Meeting. Meeting Minutes. April 7, Call to Order. Purpose of Tonight s Meeting
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1 Maple Grove 2015 Board of Appeal and Equalization Meeting Meeting Minutes Call to Order Purpose of Tonight s Meeting Assessor Remarks Pursuant to call and notice thereof, the Maple Grove Board of Appeal and Equalization was held at 7:00 p.m. on at the Maple Grove Government Center/Public Safety Facility, Hennepin County, Minnesota. Members present were Mayor Pro Tem Phil Leith, Councilmembers Karen Jaeger, LeAnn Sargent, and Erik Johnson. Absent: Mayor Mark Steffenson. Present also were Al Madsen, City Administrator; Tim Mitchell, City Assessor; Rich Gruber, Commercial Appraiser; Julie Gustafson, Senior Residential Appraiser, and Jodi Kohn, Assessing Technician. Mayor Pro Tem Leith called the meeting to order at 7:00 p.m. Mayor Pro Tem Leith stated the purpose of tonight s meeting is to discuss the 2015 Estimated Market Values and classifications for taxes payable in The required certified forms of tonight's proceedings will be signed at the end of the meeting. City Assessor Mitchell provided a brief description of the Local Board of Appeal and Equalization process and stated the Local Board of Appeal and Equalization would reconvene on April 21, 2015, at 7:00 p.m. and all petitioners would be notified by mail of the Board s decision. He indicated petitioners in attendance will present their appeal and a petitioner must appear in the minutes of this meeting in order to be considered by the County Board of Appeal and Equalization, and the Assessor s Office will conduct a property review and present the Board with its written recommendations. He stated if petitioners are not satisfied, they may seek further action at the Hennepin County Board of Appeal on June 15, He explained that 2015 values are based on sales taking place between October 1, 2013, and September 30, 2014, and foreclosures, short sales or lender mediated sales cannot be used. He stated that in 2011, the Minnesota Department of Revenue instituted a market condition adjustment based on a 21- month sales study period and the market condition adjustment for single family homes was approximately 4%, lakeshore properties had no adjustment, condos were adjusted 7.7%, townhomes were adjusted 4.15%, and twin homes were adjusted 10.1%. He stated for the 2015 assessment, the total City market value was $7.99 billion, an increase of over 5% from the 2014 market value of $7.6
2 Page 2 Consideration of Appeals David and Rhonda Helms PIN # Nottingham Parkway N. Luke and Sarah Graham PIN # Brockton Ct. N. billion. He stated that single family home values increased an average of 3.6%, lakeshore values decreased 2.9%, twin home values increased 12.2%, townhome values increased 3.1%, condo values increased 8.4%, commercial property values decreased.1%, industrial property values increased 2.1% and apartment properties increased 9.5%. Petitioner was not in attendance. Mayor Pro Tem Leith noted the letter submitted into the official record by the Petitioner. Mr. Luke Graham submitted documents to the Board in support of his appeal for a reconsideration of their property value. He stated they purchased the home in 2010 for $228,000 and renovated the entire house at a cost of over $200,000. He explained they had total improvements from of $135,000 and at that time received a bank appraisal for $321,000. He stated the value was somewhat held down because of the outside appearance and they have since spent $72,000 on external improvements and had the home reappraised in June 2014 showing a value of $350,000. He described the renovations and presented several pictures and stated that the reason for their appeal is that it was their understanding that the assessed value was held down because of comparables but their home has been completely renovated and a local realtor indicated the house could easily sell somewhere in the $375,000 range and they are asking the Board to reconsider the value. Member Sargent asked the Petitioner to confirm that he wants the Board to raise the assessed value. Mr. Graham replied in the affirmative and explained that due to a potential relocation for his job, they could be selling the home soon and they feel having an assessed value considerably lower could create an issue when they are ready to sell. City Administrator Madsen reminded Mr. Graham that if the value goes up to $375, ,000, he would be stuck with that value even if his job relocation falls through.
3 Page 3 Mr. Graham confirmed that he understood. Member Johnson reminded Mr. Graham that he would also be increasing his taxes payable based on an increase in value and Mr. Graham is asking a future buyer to agree to a higher tax liability that might turn off some buyers. Jason D. Harwood, Authorized Rep, The Printer Inc. (R.R. Donnelley & Sons Company) PIN # Kilmer Lane North Jason D. Harwood, Authorized Rep, The Printer Inc. (R.R. Donnelley & Sons Company) PIN # Kilmer Lane North Robert & Shirley Dorcy PIN # Petitioner was not in attendance. City Assessor Mitchell stated that staff has received documentation from petitioner that will be provided to the Board for the reconvene meeting and noted that petitioner has two parcels under appeal. Ms. Shirley Dorcy stated they built their home 41 years ago and have not done anything to it. She discussed their previous appeals and stated that Randy Dejong came out to the house last Friday and agreed to change the value to $435,200 and they are asking for a further reduction.
4 Page Weaver Lake Drive North William and Diane Feist PIN # Territorial Rd. Mario Cocchiarella, owner, Earl Street Partners, LLC Co. Rd. No. 101 Mario Cocchiarella, owner, Earl Street Partners, LLC Co. Rd. No. 101 Sandip Bhakta PIN # Petitioner was not in attendance. City Assessor Mitchell noted the letter received from the Petitioner and advised that staff will review the property, run comparables, and share this information with the Board at the reconvene meeting. Mr. Mario Cocchiarella stated they have had a significant increase in their values from $11 million to $13 million and they are not ready for that kind of increase based on market conditions for the property and requested that the Board reconsider the increase on their two parcels. Petitioner was not in attendance. Mayor Pro Tem Leith noted the letter submitted into the official record by the Petitioner.
5 Page Eagle Lake Dr. N. Petitioners that have agreed with value recommendation Paul Monge Narcissus Ln. N. City Assessor Mitchell advised that staff has reached agreement with the following properties and recommendations regarding these properties will be included in the formal report to the Board: Brian Farrell, PIN # , Rice Lake Circle Sandra Ferguson, PIN # , 6680 Cardinal Circle Kathryn Kittelson, PIN # , st Place N. Hassan Ismail, PIN # , th Ave. N. Michael and Melissa Ginzburg, PIN # , th Ave. N. Jin Wang and Aihua Wan, PIN # , th Ave. N. Mr. Paul Monge stated the 2016 assessed value average in his housing development is $502,000 and the average purchase price was $531,000. He stated the 2016 values for homes in the cul-desac had an increase of.85%-1.88% and their house was assessed at a 3.46% increase. He stated that property numbers 6, 7 and 8 referred to in the documents he submitted are similar in price, size, footprint, lot size, etc. and the 2016 value for property #6 is $541,000 and $539,000 for property #8 compared to their purchase price of $576,000 with an assessed value of $562,800. He requested a reduction in value in line with his neighbors. Member Johnson asked Mr. Monge if he had made any improvements to his property. Mr. Monge replied he has made no improvements to his property. Recess Motion by Member Jaeger, seconded by Member Sargent, to recess the Board of Appeal and Equalization Meeting to April 21, 2015, at 7:00 p.m. Upon call of the motion by Mayor Pro Tem Leith, there were four ayes and no nays. Motion carried. Mayor Pro Tem Leith adjourned the meeting at 7:40 p.m. Respectfully submitted, Alan A. Madsen City Administrator
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