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MINU`CES <br />CITY COUNCIL <br />JTTLY 24, 1996 <br />interest in this matter; therefore, the opinion may be <br />biased. <br />Morelan indicated he did some calculations using Ramsey <br />County market values established for properties within <br />the notice area. Based on these calculations, he <br />determined that building valuations minus land <br />valuations averaged $81,000. Morelan pointed out that <br />Hennepi_n County's valuation for this house is $53,000, <br />but indicated he realized there is some question that <br />the tax report is for this particular structure. <br />Morelan indicated that if the valuation of the house is <br />$53,000, then it is substantially lower in value than <br />surrounding houses. Morelan stated he did not know <br />what impact this would have on surrounding property <br />values. <br />Pedersen felt the most telling fact is that the house <br />just recently sold for $96,500. Pedersen suggested the <br />house may be worth more in a Little Canada location <br />than in Richfield. Pedersen suggested the $102,000 to <br />$106,000 valuation estimate provided by the realtor <br />seemed reasonable. Pedersen felt the house would blend <br />into tYie neighborhood, and did not believe the house <br />would devalue the neighborhood. <br />Morelan stated that he did not know what went into <br />valuinq a house or how much effect a house has on <br />surrounding homes. <br />Pedersen suggested the process is not a scientific one, <br />and pointed out that valuations used for tax purposes <br />are usually less than what a house can be sold for. <br />Pedersen again suggested the recent $96,500 sale price <br />was the most telling factor. <br />Fahey indicated that when the Conditional Use Permit <br />ordinance was modified, the City put a provision in <br />which states that a house being moved into an existing <br />neiqhborhood cannot negatively impact the neighborhood. <br />Fahey stated that he had trouble accepting the <br />valuation provided by the realtor, and would prefer an <br />independent appraisal of the house. <br />Pedersen pointed out that the real figure is the sale <br />price of $96,500 from December, 1995. Pedersen also <br />noted the house was located in Richfield and subject to <br />airplane noise. Therefore, the Little Canada location <br />would make the house more valuable. <br />Morelan noted the Hennepin County valuation plus the <br />4 <br />