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HomeMy WebLinkAboutM0801111� Dave Garing Henry Krist Michael Smith 1820 Jefferson Street P.O. Box 1220 Port Townsend, WA 98368 Dave Garing Henry Krist MINUTES August 1, 2011 Michael $mith Chairman Vice - Chairman Member Chairman Dave Garing called the meeting to order at 9:00 a.m. in the presence of Vice - Chairman Henry Krist and Member Michael Smith. APPROVAL OF MINUTES Vice - Chairman Krist moved to approve the minutes of July 15, 2011. Member Smith seconded the motion which carried by a unanimous vote. ASSESSOR'S UPDATE Assessor Jack Westerman, III and appraisal staff were present. Assessor Westerman welcomed new Member Mike Smith to the Board of Equalization and offered to answer general questions about the assessment process. He reviewed the process for assessing property and informed the Board on the Assessor's office role with the Board of Equalization. Assessor Westerman informed the Board that the 2011 revaluation area for Jefferson County is the Chimacum School District #49. Those properties were last valued in 2007 which was the peak of the market. He provided and reviewed a document titled Assessor's Report Card. The sales trend seems to show that the market has decreased approximately 10% since January 1, 2011 to present. The Assessor's office has had a difficult time assessing property due to the increase of bank foreclosures and distressed sales. The Report Card indicates that there is a 28% difference between a distressed sale and a regular sale. A foreclosure sale doesn't necessarily determine the true and fair market value. When a bank forecloses on a property they just want to get rid of it without trying to sell it for market value. He said he expects the amount of distressed sales to increase making it a challenge for his staff. Assessor Westerman explained the difference between the Port Ludlow area and the Port Ludlow Master Planned Resort (MPR). Typically, the Port Ludlow area values decreased 30 % -35 %. Phone (360)385 -9100 Fax (360)385 -9382 jeffbocc@co.jefferson.wa.us Board of Equalization Minutes - August 1, 2011 Page: 2 Chairman Garing asked if the Assessor expects to get complaints from property owners that their property is valued too low? The Assessor responded that yes; he thinks some people who are trying to refinance or sell the property won't be able to get the amount they want. A document showing sales after the rolls closed in July, 2011 will be provided to the Board at a later date and the Assessor's office will update this information on a weekly basis on their website through September. ASSESSMENT CORRECTIONS Vice - Chairman Krist moved to accept the following assessment corrections. Member Smith seconded the motion which carried by a unanimous vote. APPELLANT Craig Cholvin & Stacy Olson Kenneth Gentil Brian Roggenbuck P.O. Box 878 Darrington, WA 98241 APPEAL NO. PARCEL NO. BOE 11 -06 -R 989 710 801 BOE 11 -13 -R 948 320 001 HEARINGS BOE: 11 -01 -LO PN: 601 323 003 11 -02 -LO 601323 010 Brian Roggenbuck was present. Appraiser John Pray represented the Assessor's office. After explaining the hearing process Chairman Garing swore in both parties. Under appeal are two bare land parcels located on the Toandos Peninsula near Dabob Bay, Quilcene. 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 601 323 003 $116,460 (Land Only) $85,000 (Land Only) 601 323 010 $157,970 (Land Only) $105,000 (Land Only) The Appellant requested and was granted permission from the Assessor's Representative to submit additional information for the Board to review. The subject property was purchased in 2008 for $310,000 with the intent to remove the timber. The estimated value of the timber was $100,000. With that timber gone he feels the value has decreased. The topography of the property is very steep along the waterfront. The Appellant was approached by a shellfish company interested in harvesting the oysters off the beach. It was found that the Skokomish Tribe has the tidal rights which he feels would also reduce the value. Board of Equalization Minutes - August 1, 2011 Page: 3 Appraiser Pray said he had spoken with the Appellant on the phone and asked how much revenue was received from the sale of the timber. He didn't received an answer. Comparable sale #2 is very similar to the subject property including the topography. The Assessor's office valued #2 at $364,000 and it sold for $392,000. Chairman Garing asked what is the size of both the comparable sale and the subject property? The Appellant responded that he thinks that his two parcels are 13 acres and believes the comparable property is the same. The Appellant also stated that he logged the property in 2009 and in doing that a moratorium was placed on both parcels. The land can not be converted to any other use other than commercial forest for 10 years. This prevents building on the property. Appraiser Pray responded that the appellant is correct about the moratorium, however if the property is sold the new owner can go through a process to remove the moratorium. The current assessed value is based on being able to build on the property and is lower than what the Appellant paid. The Appellant estimated the timber being worth $100,000 when he purchased the property. He informed the Board that with the slope of the property he cut more timber down than he expected. In answer to a question of whether he owns the tideland, he responded that he is unclear who owns the tideland. He never pursued leasing the rights to Gold Coast Oyster Company to harvest the shellfish. He also mentioned that both parcels are encompassed in a saltwater intrusion zone and if and when the land becomes buildable there will be a lot of red tape to go through to get a building permit. Hearing no further testimony, Chairman Gating closed the hearing. The Board will make a determination at a later date. Ann Kittredge BOE: 11 -11 -R PN: 701 195 008 AMK Properties P.O. Box 763 Quilcene, WA 98376 Ann Kittredge was present. Appraiser John Pray represented the Assessor's office, After explaining the hearing process Chairman Gating swore in both parties. Under appeal is the land and improvement value of property located on Pratt Lane, Quilcene. Currently, the property is assessed at $177,600 ($77,600 for the land and $100,000 for the improvements). The appellant estimates the value is $75,000 ($65,000 for the land and $10,000 for the improvements). The appellant informed the Board that she disagrees with the value of both the land and improvements. She stated that in 2005 a bare land (6.5 acres) sale of a neighboring property sold for $110,000 and another property (6.8 acres) was valued at $76,000. Her parcel is only 5 acres and increased in valued. Board of Equalization Minutes - August 1, 2011 Page: 4 She also explained that her son built a small 16x28 unfinished cabin and doesn't feel it is worth $100,000. It was built with recycled materials. Appraiser Pray said that the appellant purchased the property for $68,000 not $65,000 as stated in her appeal form. He made a site visit to the subject property and was asked to leave, by the appellant's son, before he could determine a proper value. Without inspecting the land/improvements he had to guess on the value and stated that his assessed value is probably too high. The land value increased because a $10,000 utility value was added. The appellant was unaware that her son did not allow the Assessor's representative to inspect the property and apologized. She added that there is an adjacent property (6.8 acres) that has a three (3) bedroom, two (2) bath home and it is assessed at $124,000. Chairman Garing replied that the Board does not compare assessments only comparable sales. Appraiser Pray and the appellant agreed that another site inspection be conducted to determine true and fair market value. Chairman Gating stated that the hearing will be continued until a site inspection is conducted. Alton B. Otis, Jr. BOE: 11 -03 -R PN: 983 500 001 P.O. Box 1915 11 -04 -LO 983 500 002 Port Townsend, WA 98368 Alton B. Otis, Jr., Appellant and Ralph Ericson, Independent Fee Appraiser were present. Appraiser John Pray represented the Assessor's office. After explaining the hearing process Chairman Gating swore in all parties. Under appeal are two parcels of property located at 1174 Woodland Drive, Port Townsend. 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 983 500 001 $899,120 (^$179,400 land/$719,720 imps) $725,000 (No Breakdown Provided) 983 500 002 $91,500 (Land Only) $67,500 (Land Only) Mr. Ericson introduced himself and gave some background of his work as a fee appraiser. He conducted an appraisal of both parcels under appeal and asked the Board if they have any questions about anything provided in his appraisals? Chairman Gazing asked why the Appellant has a different estimate of value than the Fee Appraiser? Mr. Ericson responded that he usually provides appraisals for bank refinancing which would have current year values. He then realized that for this BOE appeal he needed to value the parcels as of January 1, 2008 which is the reason he provided two appraisals. He stated, and the appellant concurred that as of January 1, 2008 parcel #983 500 002 should be valued at $75,000 and parcel #983 500 001 value should be $800,000. Board of Equalization Minutes - August 1, 2011 Page: 5 Appraiser Pray informed the Board that he is filling in for another appraiser who was unable to attend the hearing. He said he doesn't have much information other than what was provided in the Board's packets. When asked for his professional opinion of the fee appraisal provided by Mr. Ericson, Appraiser Pray said he was surprised by the 10% difference between the 2011 and 2008 fee appraisal because he thought it would be more. Mr. Ericson is a highly respected appraiser. Mr. Ericson provided five (5) comparable sales in his appraisal. Three of the comparable sales were located in the same neighborhood as the subject property and sold in December, 2007; May, 2007; and June, 2006. The other two (2) sales were located away from the subject property and sold in April, 2007; and January, 2005. He realizes that the 2005 sale is an older sale, but included it because the properties were similar in size and design. Hearing no further testimony, Chairman Garing closed the hearing. The Board will make a determination at a later date. Bradley Seamans BOE: 11 -15 -R PN: 939 601 401 40 Quilcene Place Port Townsend, WA 98368 Bradley Seamans was not present. Appraiser Charley Hough represented the Assessor's office and was sworn in by Chairman Garing. Under appeal is the land and improvement value of property located at 40 Quilcene Place, Port Townsend. Currently, the property is assessed at $222,815 ($160,000 for the land and $62,815 for the improvements). The appellant estimates the value is $184,350 ($105,600 for the land and $78,750 for the improvements). On the petition form the appellant wrote the following reason for appealing the valuation of his property: "I purchased this house in January, 2011 for $181,500. Three comps. In Cape George show they were also purchased for approx. 113 less than assessed value. 1 believe my recent purchase price was fair market value. " Appraiser Hough stated that the comparable sales he provided were located in both the Cape George Colony and the Cape George Village. The appellant's property is located in the Colony. Chairman Garing asked what the difference was between Colony and Village? Appraiser Hough replied that the Colony only allows stick built homes. The Village allows and is mostly comprised of mobile homes. Stick built homes are also allowed in the Village. The appellant provided comparable sales, but they were located in the Village, which have lower assessed values. The assessment date of the property is January 1, 2008 and the Appellant's comparable sales occurred after that date. Appraiser Hough stated that as of the assessment date the property was correctly valued. Board of Equalization Minutes - August 1, 2011 Page: 6 Hearing no further testimony, Chairman Gating closed the hearing. The Board will make a determination at a later date. Vice - Chairman Krist moved to adjourn the meeting until the next scheduled meeting. Member Smith seconded the motion which carried by a unanimous vote. i esST 'RLoc) Ierk of the Board JEFFERSON COUNTY BOARD OF EQUALIZATION C Dave Gating, )Ch an \ Henry Krist, Vice -C/ 1 Michael Smith, Member