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Home My WebLink About8A - Board of Review MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: DISCUSSION: ALTERNATIVES: RECOMMENDED MOTION: CITY COUNCIL AGENDA REPORT MAY 18, 1998 1')<\ ~~ BOYLES, CITY MANAGERl ~ BOARD OF REVIEW CONTINUATION History: Minnesota Statute provides that the County or City Council can sit as the local Board of Review. The City Council has decided it wishes to fulfill this function. The initial Board of Review Hearing was held at the May 4, 1998 City Council Meeting. Current Circumstances: The Board of Review was continued to Monday, May 18, 1998 at 8:00 PM in the Fire Station City Council Chambers. County Assessor Leroy Arnoldi will be present to assist the City Council in conducting the Board of Review Continuation meeting. The Issues: A property owner wishing to contest his or her valuation must do so in person or in writing at the Local Board of Review. This will allow the party to continue the appeal to the County Board of Review or court system should they desire. Eight residents appeared before the Board of Review on May 4 to contest property valuations. Six of the properties required additional research. County Assessor Leroy Arnoldi's report on the properties which required additional research is attached. Conclusion: The Council should review the attached report provided by Leroy Arnoldi. 1. Approve the County Assessor's Report as Submitted. 2. Approve the County Assessor's Report as Amended. Motion and Second to Approve the County Assessor's Report, either as submitted or amended. 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER r r 1 ",. SCOTT COUNTY ASSESSOR COURTHOUSE 112 428 HOLMES STREET SOUTH SHAKOPEE, MN 55379-1381 (612) 496-8115 Fax: (612) 496-8135 E-Mail: lamoldi@co.scott.mn.us LEROY T. ARNOLDI ASSESSOR May 13, 1998 Prior Lake Board of Review Enclosed please find comments and documentation pertaining to the 1998 board of review meeting held on May 4, 1998. In total there were eight citizens that had questions or concerns about their property. Two were of the informational nature, (Ewert and Miller), with six others requiring additional attention. The recommendations for these six properties are indicated on the enclosed form. All of the affected property owners were informed of our findings and recommendations. If I can be of any further assistance feel free to contact me. Sincerely, ~~ Leroy T. Arnoldi Scott County Assessor. An Equal Opportunity/Safety Aware Employer ~'T.,_""",,,,,,_,~,,,_,,_,<,,,,,,~,,,""-"_',"_~_'T"_.~"'",_.~,~"",~--"'---.'-~'. """""",_,_",~",_~,~---"""'-""'<~~--.~~-" . I 1J1:S:: WO> N/"1 N<: 1-'. I-"%j::l /"1 at-< C/l c:: rt::l 0. 'i:J rt CJ f-'. /"1 o 0\ .' 0 o o N ...,tot""t ;-., . I-' ;..... 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Specifically I am appealing the property valuation of 446,500 on my home at 2966 Fox Hollow, Prior Lake ~., legal description shown above. -- Several continuing factors point to an over valuation at this time. First would be that Shamrock Development Inc. cut the price on all single family lots in the original Phase 1, as was mentioned at last years Board of Review, by the developer Jim Stanton. This affected some lot prices to go down by 20%. Secondly, there have been some sales of the original models, at a price substanially under the original asking price. Those homes include, 2802 Fox Run, List price was $734,000, 14693 Wilds View, List price $749,000, 14550 Wilds Pkwy., List Price $648,000. Lastly, we have had some existing Homeowners re-list, and re-sell their homes at a reduced price from what they paid for their homes, and was under the listed price when they put them on the market. Those homes involved, 2923 Fox Trail, and 2920 Pine View. If there has been any action of new homes, it has been mainly in Phase 2, and even there, it has been very slow to develop. I think Phase 1 has seen only one new home built in the last 12 months, and that was because this homeowner bought his lot in the initial days, when the development first came on the market. Any other activity, other than that listed above, has been in the townhomes, and I would look forward to meeting with you to go over the comparisons on all the sales, and re-sales in Phase 1 of the Wilds. As you drive through the Wilds it is not hard to notice the number of For Sale signs, and the length of time they have been on the market, as each one of these Homeowners struggle to recapture their investment. " -Page 2- Prior Lake / LUND - 2) She noted also that properties in other plats appear to be valued at a substantially lower level (specifically, a lakeshore site that was valued at about $35,000 for taxes payable in 1998). '\ We asked the owner which site she was referencing with this observation. She supplied us with . the PID number and plat. Review shows that the site is an odd shaped parcel, with a narrow access strip creating the shoreline. It is thus considered to be inferior to other lake shore sites. We have concluded that this site is properly valued by this office. We have discussed our conclusions with the owner. Respectfully Submitted, ~~ Leroy T. Arnoldi Scott County Ass'essor ,/ T . ~ May 11, 1998 Cheryl Spath-Karges 3869 Island View Circle NW Prior Lake, MN 55372 RE: 1998 estimated market value on PID # 25 159001 0 Dear Ms. Spath-Karges: This letter is to inform you that there will be no change in market value relative to the 1998 assessment of your property. I assigned one of my staff appraisers to review the data pertaining to your property along with recent sales activity of other Prior Lake lakeshore property. As you know, all property within a taxing district is to be assessed at 90 - 105% of its actual value. The city of Prior Lake falls within this window of measurement. Considering that you paid $305,000 for your property in 1992, a 1998 estimated market value of $321,900 does not seem to be an unrealistic figure. This represents a 5.5% increase of a purchase price that occurred six years ago. As a professional realtor I think you would have to agree that 5.5% appreciation in six years for lakeshore property is very conservative. Based on these findings I will be recomm~nding that the Prior Lake Board of Review affirm the 1998 value of$321,900. If you disagree with this decision you have the right to appeal to the Scott County Board of / Equalization that will meet on Tuesday, June 16, 1998, at 9a.m., at the county courthouse in Shakopee. If you wish to appear at this meeting please call the assessor's office at 496-8115 to be placed on the agenda. Sincerely, Leroy T. Arnoldi Scott County Assessor SCOTT COUNTY ASSESSOR COURTHOUSE 112 428 HOLMES STREET SOUTH SHAKOPEE, MN 55379-1381 (612) 496-8115 LEROY T. ARNOLDI ASSESSOR Fax: (612) 496-8135 E-Mail: lamoldi@co.scott.mn.us RECOMMENDA TION TO: PRIOR LAKE CITY BOARD OF REVIEW May 4.1998 RE: PARCEL IDENTIFICATION NUMBER: 25-060-002-0 OWNER'S NAME: LUND Marvin & Barbara Assessor's Estimate Of Market Value: Janum:y. 1998 $272,200 HISTORY: Last Recorded Transfer: No report of sale within the past 3 years. The owner's cOITI..IIlents at the initial board hearing are summarized as: - I) The property owner's review of available information causes her to be concerned that this office is inconsistent in its estimation of market values for lakeshore lots within the subject's development. - 2) She noted also that properties in other plats appear to be valued at a substantially lower level (specifically, a lakeshore site that was valued at about $35,000 for taxes payable in 1998). We have reviewed: the information presented at the initial board hearing; the valuation and tax file Scott County maintains for the subject, and; any other available and pertinent market data. In addition, we asked the property owner to review this information with us, to be sure that we were properly addressing the specific concerns of the owner. Our response for the Board's consideration are as follows: - 1) Her review of available information causes her to be concerned that this office is inconsistent in its estimation of market values for lakeshore lots within the subject's development. We reviewed our valuation estimates for land within the subject plat, and double checked the rationale employed for those estimates. We have concluded that the land value estimates in the subject plat are consistent. Differences noted in the value estimates within the plat are related to factors that we have identified as impacting market value oflakeshore lots on Prior Lake (for example: lineal feet of shoreline; overall site size; utility; zoning regulations). We have discussed those factors with the owner. An Equal Opportunity/Safety Aware Employer . - T I .-- May 7, 1998 Wayne Baumgart 2966 Fox Hollow Prior Lake MN 55372 1/ RE: 1998 market value Dear Mr. Baumgart: I am in receipt of your letter protesting the 1998 market value of your property. In reviewing my notes from the 1997 Prior Lake Board of Review meeting, there were substantial reductions to property values in the Wilds development. As an example, your property was reduced in value from $531,100 to $446,000. I believed at the time and still due that the reductions in value were warranted. While being concerned with all sales activity in Scott county particular interest occurred with the Wilds development not only because of its high profile but also because of the sizable reductions in value granted in 1997. In your letter you refer to three properties; 2802 Fox Run, 14693 Wilds View and 14550 Wilds Pkwy, that have been sold substantially under the original asking price. This was the reason for the original reductions of market value. Two of the three properties that you indicate have been sold and the selling price is greater than the assessed value presently on them. Additional properties that you mentioned, 2923 Fox Trail and 2920 Pine View, have also sold for more that the assessed value. The Department of Revenue mandates that the median ratio of assessor's value to selling price be in the range of 90% to 105%. The following indicates the tracking of sales activity in the Wilds development during 1997. There are no townhouses in the following illustration. ADDRESS 2802 Fox Run 2800 Fox Run 2923 Fox Trail ASSESSED VALUE SELLING PRICE $579,200 $610,000 $358,000 $378,915 $352,300 $378,500 RATIO 95% 95% 93% DATE 12-97 4-97 8-97 Page 2 2920 Pine View Dr. 14632 Wilds Pkwy. 14693 Wilds View $411,200 $502,900 $577,200 $425,000 $547,200 $625,000 97% 92% 92% 7-97 9-97 9-97 Based on the pattern of sales that has evolved during the past year, I feel the reduction that was granted to properties in the Wilds development was appropriate and that there is no justification for any further reduction in value for the 1998 assessment. I will be making this recommendation to the Prior Lake Board of Review when it reconvenes on May 18, 1998 at 8p.m. If you disagree with the decision, you have the right to appeal to the Scott County Board of Equalization that will meet at the courthouse in Shakopee at 9a.m. on Tuesday June 16, 1998. If you wish to appear at this meeting please call the assessor's office at 496-8115 to be placed on the agenda. Sincerely, Leroy T. Arnoldi Scott County Assessor c: Prior Lake Board of Review Mellszler, Scott County Appraiser T I