HomeMy WebLinkAboutM081209ok
William S. Marlow
Wiliam S. Marlow
MINUTES
August 12, 2009
1820 Jefferson Street
P.O. Box 1220
Port Townsend, WA 98368
Richard A. Broders
Dave Garing
Chairman
Dave Garing Vice Chairman
Richard A. Broders Member
Chairman William S. Marlow called the meeting to order at 9:30 a.m. in the presence of Vice Chairman
Dave Gating and Member Richard A. Broders.
HEARINGS
Norma Ukura & Donald Fowser BOE: 09 -21 -R PN: 976 200 112
2501 E. Marrowstone Road
Nordland, WA 98358
Norma Ukura and Donald Fowser were present. Appraiser John Pray represented the Assessor's office.
After explaining the hearing process Chairman Marlow swore in both parties. Under appeal is the land
and improvement value of property located at 2501 E. Marrowstone Road, Nordland.
Currently, the property is assessed at $223,935 ($134,625 for land and $89,310 for the improvements).
The appellants estimate the value is $165,000 ($90,000 for the land and $75,000 for the improvements).
Mr. Fowser stated that seven or eight years ago their property was assessed as having a view. There is no
view today and he would like the value to decrease the same percentage that it increased when they had a
view.
The Assessor's office provided two (2) comparable sales.
Comparable Property #1
Parcel No.: 021 291 032 (bare land)
Location: 7802 Flagler Road
Date of Sale: June 2006
Sale Price: $97,228
Property Description: 1.00 acre
Phone (360)385 -9100 Fax (360)385 -9382 jeffbocc&o.jefferson.wa.us
Board of Equalization Minutes - August 12, 2009 Page: 2
Comparable Property #2
Parcel No.: 953 700 428
Location: 8122 Flagler Road
Date of Sale: June 2007
Sale Price: $250,000
Property Description: 2.84 acres
Appraiser Pray said that a base rate of $150,000 was applied to the appellant's property with a reduction
of 25% for site quality.
The appellant asked if the value is increased because it has a view, why doesn't it decrease when the view
is gone? Appraiser Pray answered that the market doesn't remain the same and during the last eight (8)
years the Real Estate market has increased significantly. When he inspected the property, he did not see a
water view, however he feels the property is assessed at fair market value.
Member Broders asked why the Appraiser thinks the subject property is superior to comparable one, other
than the size of the parcel? Appraiser Pray replied that comparable one was undeveloped and feels the
appellant's property has a nice territorial view.
In answer to Vice Chairman Garing's question, Appraiser Pray said that neither comparable one or two
have a view.
Vice Chairman Garing asked if there is a land code for non -view and if so should that code have been
used instead? Appraiser Pray answered that in hind sight a non -view code should have been used and
then adjusted upwards. $150,000 is a base rate for water view parcels on Marrowstone Island. $100,000 is
the base rate for a non -view parcels.
Ms. Ukura stated that their territorial view consists of afield with a mound septic system, a couple of
garages and some trees in the distance,
Vice Chairman Garing said that the appellants appealed because their view has changed and he asked the
Assessor's representative if he thinks that issue has been addressed with the 25% reduction in site quality?
Appraiser Pray replied yes.
Hearing no further testimony, Chairman Marlow closed the hearing. The Board will make a
determination at a later date.
Jennifer, Jeffrey, Susan & Karen Pedersen BOE: 09 -37 -LO PN: 964 510 002
2160 Quimper Plane 09 -38 -R 964 510 101
Port Townsend, WA 98368
Karen Pedersen was present. Appraiser John Pray represented the Assessor's office. After explaining the
hearing process Chairman Marlow swore in both parties. Under appeal is the value of two adjacent
parcels (one improved and one bare land) located on Old Gardiner Road, Port Townsend.
Board of Equalization Minutes - August 12, 2009 Page: 3
Following is the current assessment and the appellant's estimate of value for the parcels under appeal:
Parcel No. Current Assessed Value Appellant's Estimate of Value
964 510 002 $8,250 (land only) $4,350
964 510 101 $187,320 ($180,3951and /$6,925 imps) $89,650 ($82,7251and/$6,925 imps)
Karen Pedersen reviewed the independent appraisal performed by Ralph Ericksen. The fair market value
determined by Mr. Ericksen for both parcels is $94,000 verses $195,000 represented by the County. She
stated that the comparable sales used by the Assessor's office do not reflect the nature of their property,
specifically, buildable and non - buildable sites. She feels Mr. Ericksen found properties that had similar
limitations as their two parcels.
Ms. Pedersen said that the property is severely restricted and has no potential for improvements. They
have no room for a septic system or drainfield on the property. The property is surrounded by water on
three (3) sides. Moorage is not an options because of the tideland restrictions.
Photos and a drawing of the two parcels (12 lots) were discussed by the appellant. Lots 1 -6 are located on
the beach in the water. Most of what the appellants own is either underwater or a railroad borough. The
photos were taken after a winter storm and shows that the property is underwater.
In conclusion, Ms. Pedersen reiterated that the independent appraisal represents fair market value. No one
is going to pay $195,000 for property you can't build on.
Appraiser Pray agreed that this property is very unique and it was hard to find comparable sales. He
presented two comparable sales:
Comparable Property 41
Parcel No.: 902 133 004
Location: 5981 Old Gardiner Road
Date of Sale: August 2005
Sale Price: $185,000
Property Description: 1.60 acres, 130 Front Feet
Comparable Property #2
Parcel No.: 701 043 011
Location: 923 Carl Johnson Road
Date of Sale: July 2008
Sale Price: $154,020
Property Description: 1.57 acres, 170 Front Feet
Appraiser Pray reviewed the property description (Ericksen's Appraisal, page 12). He said that the
properties used as comparable sales (Ericksen Appraisal) at Seven Sister Beach (Hoods Head) were not
given any adjustments for shape of the lots, access, power, utilities, etc. The subject property has power
and you can drive right to the property.
Board of Equalization Minutes - August 12, 2009 Page: 4
In reviewing comparable #2, Appraiser Pray stated that the property was purchased by the Northwest
Watershed Institute for conservation purposes.
Ms. Pedersen said it is not feasible to wait for a conservation group to purchase their property and she
doesn't feel it is a comparable sale.
In answer to a question from Chairman Marlow, Ms. Pedersen said her family would be willing to sell the
property.
Appraiser Pray reiterated that this property is a recreational site that you can drive directly to and have
power. Whereas you are not able to drive to the properties on Seven Sisters, there is no power and the
independent appraisal didn't have any adjustment for those facts.
Vice Chairman Garing asked if the subject property has power? Appraiser Pray replied that the $10,000
utility base line is for water, power and septic. However, the property has no septic which is about a
$6,000 error.
Chairman Marlow asked if the $100,000 difference between the Ericksen appraisal and the Assessor's
value is worth being able to easily access the property and have power? Appraiser Pray replied that he
reduced the value by a significant amount and he really had no comparable sales to go by.
Hearing no further testimony, Chairman Marlow closed the hearing. The Board will make a
determination at a later date.
Celene Regueira BOE: 09 -14 -R PN: 002 131 022
103 Bay Ridge Drive
Port Townsend, WA 98368
Celene Regueira and Peter Moyer were present. Appraiser Dennis Pownall represented the Assessor's
office. After explaining the hearing process Chairman Marlow swore in both parties. Under appeal is the
land and improvement value of property located at 103 Bay Ridge Drive, Port Townsend.
Currently, the property is assessed at $278,420 ($172,960 for land and $105,460 for the improvements).
The appellants estimate the value is $196,572 ($91,112 for the land and $105,460 for the improvements).
Mr. Moyer stated they purchased this property at the end of 2001 and the taxes increased 78% which they
feel is inappropriate. Their land value increased 184% and improvements went up 30 %. He reviewed
comparable sales used by the Assessor's office and informed the Board that the amount of acreage in
those parcels was a lot more than their property.
The appellants are not disputing the improvement value only the land value. Mr. Moyer provided a
spreadsheet with his appeal form. The spreadsheet shows a wide variety of increases and in one case a
decrease of 12 %. Ms. Regueira wonders why their property is so special?
Board of Equalization Minutes - August 12, 2009 Page: 5
Appraiser Pownall said that residential land is weighted towards the building site. The majority of the
value is placed on the first acre and the residual acreage (acreage beyond the first acre) is valued lower.
He provided, in his packet of information, a chart he compiled using the appellant's spreadsheet to show
his methodology. This chart shows that the percentage increase will be larger for smaller parcels. The
same methodology is used throughout the County and with the comparable sales he provided.
Mr. Moyer is confused as to why their property is being compared to property with a water view when
their parcel looks at trees. They both have abase rate of $150,000.
Vice Chairman Garing asked the Assessor's office what the characteristics are for code 1363? Appraiser
Pownall said he does not know the codes off hand, he would have to look in the neighborhood file.
Vice Chairman Garing stated he is trying to understand the site characteristics of the subject property
versus the other comparable sales used by the Assessor's office. Comparable sales were only provided for
methodology comparisons, replied Appraiser Pownall.
Hearing no further testimony, Chairman Marlow closed the hearing. The Board will make a
determination at a later date.
Bruce Ehrhardt & Gregory Hupp BOE: 09 -42 -R PN: 961600 303
P.O. Box 65404
Port Ludlow, WA 98365
Bruce Ehrhardt and Gregory Hupp were present. Appraiser Robert Shold represented the Assessor's
office. After explaining the hearing process Chairman Marlow swore in both parties. Under appeal is the
land and improvement value of property located at 71 -C N. Chandler Court, Port Ludlow.
Currently, the property is assessed at $360,600 ($105,000 for land and $255,600 for the improvements).
The appellants estimate the value is $310,000 (no break down was provided).
Mr. Ehrhardt stated that per the RCWs properties are required to be assessed annually. Since 2007 values
in Port Ludlow have decreased 20 -25% and some adjustment needs to be made to all properties on an
annual basis. In looking at the 2007 valuation, the appellants feel that the assessment was excessive. The
Assessor should have looked at five (5) years of data, however they only used the last year or year and a
half of data including a sale that occurred in May, 2007.
The appellant's property is a condo in a four -plex building. They looked at various properties within the
Inner Harbor and found two units that were the same or slightly larger, both with a double garage, a
basement and are newer than their condo. These two properties were assessed at $325,000.
Mr. Ehrhardt said that the improvement values for properties in their area are all about the same ($150 per
square foot). However, the land values are very different and they do not understand how that can be
Board of Equalization Minutes - August 12, 2009 Page: 6
because no one owns the land and property should be valued the same.
Appraiser Shold reviewed the information that was available as of the date of assessment (1/1/07).
Vice Chairman Garing asked the Assessor's representative to explain why the appellant's property was
not given the same value as other condominiums. Appraiser Shold answered that a breakdown between
improvements and land have to be determined. The location determines the land value and the building is
the same rate per square foot depending on the size of the unit.
A discussion ensued regarding the four (4) year assessment cycle.
Hearing no further testimony, Chairman Marlow closed the hearing. The Board will make a
determination at a later date.
Ann & John Meier BOE: 09 -22 -R PN: 938 400 518
31 E. Rhododendron Drive
Port Townsend, WA 98368
Ann and John Meier were present. Appraiser Charley Hough represented the Assessor's office. After
explaining the hearing process Chairman Marlow swore in both parties. Under appeal is the land and
improvement value of property located at 31 E. Rhododendron Drive, Port Townsend.
Currently, the property is assessed at $401,540 ($160,000 for land and $241,540 for the improvements).
The appellant estimates the value is $270,000 ($80,000 for the land and $190,000 for the improvements).
Mr. Meier said that when they purchased the log home in 2006 it calculated to be $268 per square foot and
he doesn't feel his modest log home is worth that amount. When he talked to the Assessor's office in
2008, Mr. Hough said it was assessed at $125 per square foot. Nothing has been done to improve the
property. Their parcel is about a 1/3 of an acre with a steep slope that gives them a nice view. The
appellants feel that market value doesn't reflect what Real Estate sales are showing.
Appraiser Hough talked about the additional information the appellant provided regarding three (3) sales
in Cape George in 2009. In 2008 there were 13 transactions in the colony and the ratio of those were
98 %. Ratio is the difference between what a parcel sells for and what it is assessed at. With this
information property doesn't seem to be over valued.
The Assessor's office provided 11 transactions within Cape George Colony including the subject property
and their affidavit.
Comparable Property #1
Parcel No.: 938 400 803
Location: 195 San Juan Drive
Date of Sale: March 2009
Sale Price: $320,000 (106% Ratio)
Board of Equalization Minutes - August 12, 2009 Page: 7
Comparable Property #2
Parcel No.: 938 400 703
Location: 290 North Palmer Drive
Date of Sale: March 2009
Sale Price: $310,000 (95% Ratio)
Comparable Property #3
Parcel No.: 938 400 541
Location: Cape George Colony Division 3
Date of Sale: January 2009
Sale Price: $25,000 Land Only (75% Ratio)
Comparable Property #4
Parcel No.: 938 400 812
Location: Cape George Colony Division 3
Date of Sale: October 2008
Sale Price: $22,500 Land Only (89% Ratio)
Comparable Property 45
Parcel No.: 938 100 425
Location: 260 South Palmer Drive
Date of Sale: October 2008
Sale Price: $519,000 (93% Ratio)
Comparable Property #6
Parcel No.: 937 800 118
Location: 291 Victoria Loop
Date of Sale: September 2008
Sale Price: $640,000 (92% Ratio)
Comparable Property #7
Parcel No.: 938 100 313
Location: 340 Sunset Blvd.
Date of Sale: April 2008
Sale Price: $600,000 (97% Ratio)
Comparable Property
Parcel No.: 939 601 411
Location: 51 Sequim Place
Date of Sale: March 2008
Sale Price: $455,000 (99% Ratio)
Comparable Property #9
Parcel No.: 937 800 107
Location: 91 Victoria Loop
Date of Sale: January 2008
Sale Price: $469,000 (99% Ratio)
Board of Equalization Minutes - August 12, 2009 Page: 8
Comparable Property #10
Parcel No.: 939 601 431
Location: 180 Colman Drive
Date of Sale: January 2008
Sale Price: $574,000 (100% Ratio)
Comparable Property 911
Parcel No.: 938 400 603
Location: 150 Rhododendron Drive
Date of Sale: January 2008
Sale Price: $396,500 (99% Ratio)
Appraiser Hough stated that some of the values in Cape George went up 400% from the old values in
2004. It was one of the biggest growing areas in the last four years. Only 3 out of 11 sales sold for under
the assessed value and one of those was a family sale. Even now there are no major signs that the market
is declining in Cape George.
The appellant and Appraiser Hough had a discussion about how the levy rate is determined and the new
legislation effective 2014 where all Washington State Counties will be required to go to an annual cycle.
Member Broders asked the Assessor's Representative if comparable #5 and #10 are most like the subject
property? Appraiser Hough answered that the cost to build a log home is more than a stick built home.
In a request for clarification from Member Broders, Appraiser Hough stated that the base rate used in the
comparable sales ranged from $150,000 to $250,000 and that is due to the view quality.
Hearing no further testimony, Chairman Marlow closed the hearing. The Board will make a
determination at a later date.
Steven & Elizabeth Corbett BOE: 09 -26 -LO PN: 938 400 529
130 Emerald Highlands Way
Sequim, WA 98382
Steven and Elizabeth Corbett were not present. Appraiser Charley Hough represented the Assessor's
office and was sworn in by Chairman Marlow. Under appeal is a bare land parcel located in Cape George
Colony Division No. 3, Port Townsend.
Currently, the property is assessed at $120,000 (land only). The appellant estimates the value is $90,000.
On the petition form the appellants wrote the following reason for appealing the valuation of their
property: "Dramatic reduction in land/property values in 2008/2009 State and Nation wide. Assessor used
sale prices for land/property sold at peak 2005/2006, these values are not reflective of today's market ".
Appraiser Hough informed the Board that the subject property is currently listed for $139,000 which is
Board of Equalization Minutes - August 12, 2009 Page: 9
above the assessed value of $120,000. It is a buildable lot, however it will take some engineering to
construct a home on it.
Hearing no further testimony, Chairman Marlow closed the hearing. The Board will make a
determination at a later date.
Vice Chairman Garing moved to adjourn the meeting. Member Broders seconded the motion which
carried by a unanimous vote.
ATTEST:
eslie I, Locke, Clerk of the Board
JEFFERSON COUNTY
BOARD OF EQUALIZATION
William S.
Dave Garir
Chairman
Chairman
Richard A. Broders, Member