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1820 Jefferson Street
P.O. Box 1220
Port Townsend, WA 98368
Dave Garing Henry Krist Michael Smith
MINUTES
October 26, 2011
Dave Garing Chairman
Henry Krist Vice - Chairman
Michael Smith Member
Chairman Dave Gating called the meeting to order at 9:00 a.m. in the presence of Vice - Chairman Henry
Krist. Member Michael Smith arrived shortly after the meeting began.
REQUEST TO RECONVENE
A "Request to Reconvene" was received by the Board of Equalization for the 2011 season. It was
submitted on the basis that the taxpayer has met the specific requirement outlined in WAC 458 -14 -127
RECONVENED BOARDS - AUTHORITY (1)(c) which states that Boards of Equalization may
reconvene on their own authority to hear requests or appeals concerning the current assessment year
when the request or appeal is filed with the Board by April 30 of the tax year immediately following the
Board's regularly convened session and when a bona fide purchaser or contract buyer of record has
acquired an interest in real property subsequent to the first day of July and on or before December 31 of
the assessment year and the sale price was less than ninety percent of the assessed value. The Clerk of
the Board confirmed with the Assessor's Office that the appellant has met this requirement.
Vice - Chairman Krist moved to reconvene the 2011 Board of Equalization for the following taxpayer
appeal that was timely filed:
APPELLANT
John W. Wood
PARCEL NO.
821 265 038
Chairman Garing seconded the motion. The motion carried.
ASSESSMENT CORRECTION AND PETITION WITHDRAWALS
Member Smith moved to accept the following assessment correction and petition withdrawals. Vice-
Chairman Krist seconded the motion which carried by a unanimous vote.
Phone (360)385 -9100 Fax (360)385 -9382 Jeffbocc&o jefferson.wa.us
Board of Equalization Minutes -October 26, 2011 Page: 2
APPELLANT
John & Sharon Lynch, Trustees
Northwest Watershed Institute
Peter Bahls
3407 Eddy Street
Port Townsend, WA 98368
APPEAL NO.
BOE 11 -26 -LO
BOE 11 -27 -LO
BOE 11 -28 -R
HEARINGS
BOE: 11 -37 -R
11 -38 -LO
11 -39 -LO
11 -40 -LO
11 -41 -LO
PARCEL NO.
821 262 006
821 262 008
821 262 009
PN: 801283 006
801283 008
801 283 010
801283 012
801291 007
Peter Bahls was present. Assessor Jack Westerman, Appraiser Charley Hough and Assessor Technician
Sherrie Shold represented the Assessor's Office. After explaining the hearing process Chairman Garing
swore in all parties. Under appeal is the improvement and land value of property located off of Dabob
Road, Quilcene.
Following is the current assessment and the Appellant's estimate of value for the parcels under appeal:
Parcel No.
Current Assessed Value
801 283 006
$48,475 ($41,475 Imp. & $7,000 Land)
801 283 008
$41,475 (Land Only)
801 283 010
$36,190 (Land Only)
801 283 012
$37,750 (Land Only)
801 291 007
$4,150 (Land Only)
Annellant's Estimate of Value
$4,910 ($0 Imp. & $4,910 Land)
$4,092
$4,875
$5,362
$667
The Appellant stated that the Northwest Watershed Institute is a non -profit organization with a mission
of protecting fish and wildlife habitat with the main focus on the Tarboo watershed. The Tarboo wildlife
preserve is comprised of approximately 316 acres. Federal funding as well as grant funding was used to
purchase property over the last 7 years which is now in a conservation easement held by the Jefferson
Land Trust. Recently, the Institute purchased several 5 acre parcels which were added to the preserve.
These parcels are currently valued at the highest fair market value. Under the restrictions of the
conservation easement the parcels cannot be sold separately or subdivided. The only structure that can
be built on each parcel is a 20x20 shelter. Water and sewer can be installed as part of the improvement.
After reviewing the Assessor's sheet for BOE 11 -37 -R (Parcel No. 801 283 006), the Appellant noted
that the Assessor's records indicate there is a cabin on this parcel, however there is no structure. The
improvement value for the cabin is $7,000. A federal appraisal was performed on parcel 4801283 010
and #801283 012 that provided the value before and after the land was protected by the conservation
easement. The difference was a reduction in value of 90 -95% compared to the current value determined
by the Jefferson County Assessor.
Board of Equalization Minutes - October 26, 2011 Page: 3
Appraiser Hough concurred with the Appellant that there is not a cabin on parcel #801283 006 and the
$7,000 improvement value will be removed. He informed the Board that the Appellant has submitted an
application to combine 10 parcels into the open space program as well as a possible consolidation. The
Jefferson County Department of Community Development has not yet held a hearing on this application.
The value of the five parcels will be reduced if the open space application is approved. Appraiser Hough
also informed the Board that the Appellant has five more BOE appeals waiting to be heard which would
also be included in the open space application.
Assessor Technician Shold added that if the ten parcels are consolidated, as proposed by the Appellant,
the value would be reduced in addition to the open space reduction.
Assessor Jack Westerman explained the Open Space - Open Space program. After the Jefferson County
Department of Community Development holds a hearing on the open space application, the Appellant
may or may not receive the value he is requesting. With the popularity of conservation easements, the
Assessor's staff is tasked with determining a value on a piece of land that has a lot of restrictions. He
said that parcel numbers will be assigned to the land in the conservation easement and 50% of the
taxable value will be the owners responsibility and 50% will be the Land Trust's responsibility. When
there is an appraisal performed on conservation easement properties, it makes the appraiser's job easier.
The Appellant had an appraisal done on two of the five properties being discussed today.
The Appellant responded that four of the five properties are very similar with the exception of a wedge
shaped piece. Without an objection from the Assessor's Office, the Appellant submitted the rwo
appraisals to the Board of Equalization.
Assessor Technician Shold asked if the Land Trust would be able to sell five acres to a willing buyer?
The Appellant replied that per the conservation easement restrictions, a buyer would have to purchase all
the land included in the conservation easement.
Assessor Westerman explained the Conservation Easement program. Some conservation easements,
including this one, are very restrictive.
Chairman Garing asked if the Assessor's Office concurs with the Appellant's estimate of value?
Assessor Westerman replied, yes.
In answer to a question on how to value the wedge shaped parcel, Assessor Westerman suggested
placing a value of $500. Anything less than $500 would be totally exempt.
Hearing no further testimony, Chairman Gating closed the hearing. The Board will make a
determination at a later date.
Board of Equalization Minutes - October 26, 2011 Page: 4
R.G. Woodman & Brian Dempsey BOE: 11 -42 -LO PN: 721 173 002
12093 Viewcrest Place NE
Bainbridge Island, WA 98110
R.G. Woodman was present. Appraiser Charley Hough represented the Assessor's Office. After
explaining the hearing process Chairman Garing swore in all parties. Under appeal is the land value of
property located off of Thorndyke Road, Port Ludlow.
Currently, the property is assessed at $552,000. The Appellants estimate the value is $441,800.
The Appellant stated that the co -owner of the subject property, Brian Dempsey, met with Appraiser
Hough and they came to a value agreeable to both parties which is outlined in a memo dated September
27, 2011.
Appraiser Hough asked the Board to equalize land code 1525 located in neighborhood code 3440 which
consists of 15 waterfront parcels located off of Thorndyke Road. Three (3) property owners filed
multiple appeals which in turn prompted the requested equalization. He stated that the current
waterfront foot rate is$2,500 per front foot and he is requesting that it be reduced to $2,000.
Hearing no further testimony, Chairman Gating closed the hearing. The Board will make a
determination at a later date.
Brian & Cairns Dempsey BOE: 11 -44 -R PN: 721 174 006
DBC #1, LLC 11 -45 -LO 721 174 024
1301 Spring Hill Street, Unit 29J
Seattle, WA 98104
Brian and Cairns Dempsey were not present. Appraiser Charley Hough represented the Assessor's
Office and was swom in by Chairman Garing. Under appeal is the land and improvement value of two
parcels located off of Thorndyke Road, Port Ludlow.
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
721 174 006 $524,920 ($137,270 Imp. & $387,650 Land) $446,170 ($137,270 Imp. & $308,900 Land)
721 174 024 $170,800 (Land Only) $136,700
Appraiser Hough informed the Board that these two parcels are in the same area that he is requesting to
equalize. He requested that the waterfront foot rate be reduced from $2,500 to $2,000.
Hearing no further testimony, Chairman Garing closed the hearing. The Board will make a
determination at a later date.
Board of Equalization Minutes - October 26, 2011 Page: 5
Tory & Tod Nissle
15616 3" Drive SE
Bothell, WA 98012 -6328
BOE: 11 -47 -R PN: 935100 011
Tory and Tod Nissle were 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 813 Thorndyke Road, Port Ludlow.
The Appellants did not indicate a reason for appealing their valuation on their petition form. They
submitted with their petition form, a fee appraisal prepared by Main Street Appraisal dated May 25,
2011.
Appraiser Hough stated that the Appellants purchased the property for 16.8% less than the assessed
value through a Bargain and Sale Deed. He doesn't feel that this sale indicates fair market value. He
discussed the independent appraisal provided by the Appellants. Comparable property sales 41 and 92
were located within the Port Ludlow Master Planned Resort. Comparable 46 was another Bargain and
Sale Deed. The bank sold it to another bank, who immediately sold it for a very low price. It is his
experience that banks do not try to sell property for full price. He then discussed the comparable
property sales he submitted and stated he visited the property on January 6, 2011 where he found the
power was turned off. It looked as if the owners were in the process of remodeling the kitchen. At that
time it was listed for sale for $350,000 and then re- listed on March I5, 2011 for $269,000. The
Appellant purchased the property in June, 2011 for $261,000.
After Teaming that Appraiser Hough revisited the property, Chairman Gating asked if the kitchen was
still in the remodeling stage and if the home was in good condition?
Appraiser Hough replied that the subject property looked good and the kitchen was finished. The
question remains, do Bargain and Sale Deeds determine fair market value?
Hearing no further testimony, Chairman Garing closed the hearing. The Board will make a
determination at a later date.
Stephen Nielsen DOE: 11 -48 -LO PN: 721 174 012
8350 Merrimount Drive 11 -50 -LO 721 174 032
Mercer Island, WA 98040 11 -51 -LO 721 174 014
11 -52 -LO 721 174 033
Stephen Nielsen was present. Appraiser Charley Hough represented the Assessor's Office. After
explaining the hearing process Chairman Gating swore in all parties. Under appeal is the land value of
property located off of Thorndyke Road, Port Ludlow.
Board of Equalization Minutes - October 26, 2011 Page: 6
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
721 174 012 $235,315 $155,000
721 174 032 $73,815 $65,000
721 174 014 $235,915 $155,000
721 174 033 $73,840 $65,000
The Appellant stated that he agrees with the recommendation of the Assessor's Representative to reduce
the waterfront foot rate from $2,500 to $2,000.
Appraiser Hough informed the Board that these parcels are in the same area that he is requesting to
equalize. He requested that the waterfront foot rate be reduced from $2,500 to $2,000. He specifically
recommends the following reduction:
Appeal No.
Recommended New Value
BOE 11 -48 -LO
$189,710
BOE 11 -50 -LO
$59,575
BOE 11 -51 -LO
$190,310
BOE 11 -52 -LO
$59,600
Hearing no further testimony, Chairman Garing closed the hearing. The Board will make a
determination at a later date.
Kenneth & Loretta Close BOE: 11 -33 -LO PN: 995 500 011
P.O. Box 65455
Port Ludlow, WA 98365
Kenneth and Loretta Close were present. Assessor Jack Westerman represented the Assessor's Office.
After explaining the hearing process Chairman Gating swore in all parties. Under appeal is the land
value of property located off of Cameron Drive, Port Ludlow.
Currently, the property is assessed at $75,000. The Appellants estimate the value is $39,950.
Mr. Close said that they purchased the property for $31,950 in March, 2000. The purpose for purchasing
the property was because they owned the adjoining lot and didn't want anyone building next to them.
They subsequently sold their home in 2007 and listed this property for sale in 2008 and it still hasn't
sold. He then discussed the restriction of the property which is located on the Port Ludlow Golf Course.
It has a 30 foot setback and a restricted view. Drainage requirements make a building site quite small.
They had a difficult time finding comparable property sales within the last three years. Discussion
continued regarding assessed values of similar properties. He feels the value is unfair because of the
restrictions and setbacks on the property.
Board of Equalization Minutes - October 26, 2011 Page: 7
Assessor Westerman stated that the Appellants failed to discuss the assessed value of the property next
to them which is smaller in size and has a higher assessed value. The land values are not currently at
2003 levels; house values are. There is no evidence to lower land values. He then discussed the
breakdown of sales that occurred in the Port Ludlow area. The subject property was listed for sale at the
time of the site visit for $86,900 and was later reduced to $69,500 in March 2011. As of the assessment
date of January 1, 2011 the subject property was assessed at $75,000 which is lower than the listing price
at the time. Assessor Westerman said he started with a base rate of $125,000 and applied a 40%
reduction for the shape. He would not be opposed to an additional reduction in value for shape size and
reduce it down to $62,500. If the Appellants can show that there are physical restraints for building, the
Assessor's Office would make an additional reduction of 50 %.
The Appellant stated that the property is no longer listed for sale and he thinks it is buildable, but the
covenants require a 1,200 square foot structure. They would be agreeable to the Assessor's
recommendation to reduce the value to $62,500.
Hearing no further testimony, Chairman Gazing closed the hearing. The Board will make a
determination at a later date.
Member Smith moved to adjourn the meeting until the next scheduled meeting. Vice - Chairman Krist
seconded the motion which carried by a unanimous vote.
ATTEST-
eslie R. Locke , Zr the Board
JEFFERSON COUNTY
BOARD OF EQUALIZATION
Dave Garing,''hai` an
e
Henry Kris -, Vice 7
i
Michael Smith, Member