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Home My WebLink AboutM021412I • 0k Dave Garing Henry Krist Michael Smith 1820 Jefferson Street P.O. Box 1220 Port Townsend, WA 98368 Dave Qaring Henry Hrist MINUTES February 14, 2012 Afichael 3mith Chairman Vice - Chairman Member Chairman Dave Garing called the meeting to order at 9:30 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 August 1 and 4, 2011 as presented. Member Smith seconded the motion which carried by a unanimous vote. ASSESSMENT CORRECTION AND PETITION WITHDRAWAL Member Smith moved to accept the following assessment correction and petition withdrawal. Vice - Chairman Krist seconded the motion which carried by a unanimous vote. APPELLANT Robert & Delores Lickar Lynda Parkhurst APPEAL NO. BOE 11 -59 -R BOE 11 -60 -R HEARINGS PARCEL NO. 962 114 502 999 900 140 Tim Loika BOE: 11 -61 -R PN: 994 800 101 2395 NW Estaview Circle Corvallis, OR 97330 Tim and Kathryn Loika were present. Appraiser Dennis Pownall represented the Assessor's office. After explaining the hearing process Chairman Gazing swore in both parties. Under appeal is the land and improvement value of property located off of Brighton Street, Port Hadlock. Phone (360)385 -9100 Fax (360)385 -9382 jeftbocc&o.jefferson.wa.us Board of Equalization Minutes - February 14, 2012 Page: 2 Currently, the property is assessed at $369,935 ($245,125 for the land and $124,810 for the improvements). The appellant estimates the value is $247,000 ($147,000 for the land and $100,000 for the improvements). Mr. Loika said they purchased the property 12 years ago for $190,000. At that time there was a 1,700 square foot modular home with vaulted ceilings and a large deck on the property. They removed that home and built a new structure which was similar in size. The property abuts a steep bank and doesn't get a lot of sun. The Assessor's records indicate there is a gazebo on the property valued at $1,500 that has since been removed. He said the garage doors are valued at $2,275 however, they paid $450 per door. He offered to provide a copy of the garage door receipt, but was told by Appraiser Pownall that it wasri t necessary. Using the Jefferson County appraisal table, they have calculated a $24.24 per square foot value for an finished, unheated garage. The value is close to the Lexar (also known as Highline Homes) value of $22.95 per square foot with doors included. After discussing the value of neighboring properties, he stated they feel their value is unfair. Appraiser Pownall stated that the appellants received a change of value notice for the new construction value and that is the only value that can be appealed at this time. A "shell" value of $20,000 was placed on the appellant's improvement value which did not changed for a couple of years. The previous value was $369,430 and the new value is $369,935. He acknowledged that the gazebo had been removed. Appraiser Pownall said he was on leave at the time new construction values were reviewed. Appraiser John Pray made a site visit and assessed the new construction, but he did not include the deck or the siding which would affect the percentage of completion and increase the value. Chairman Gating asked if Appraiser Pownall feels the appellant's comparison with the Lexar price per square foot are comparable to the appellant's property? Appraiser Pownall replied that he doesn't feel the two are comparable because the Lexar quote doesn't include a value for financing, foundations, or permits. Appraiser Pownall said that Appraiser Pray determined that the appellant's percentage of completion was 40% and he feels it is more like 46 %. Mr. Loika said the information provided to him by the Assessor's Office shows that 40% complete includes: roof cover, windows and exterior doors, rough framing, concrete, excavation, plans, permits and survey. If a structure is 46% complete it would meet the following requirements: roughed in plumbing, installation, and siding. None of those items are complete in their structure and he feels 40% is more accurate. He then discussed the assessed value of neighboring properties. Chairman Gating informed the appellants that the Board looks at comparable property sales and does not compare assessed values. Hearing no further testimony, Chairman Garing closed the hearing. The Board will make a determination at a later date. Board of Equalization Minutes - February 14, 2012 Page: 3 John Wood BOE: 11 -58 -R PN: 821 265 038 P.O. Box 65377 Port Ludlow, WA 98365 John Wood was present. Appraiser Charley Hough 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 off of Bywater Bay North, Port Ludlow. Currently, the property is assessed at $306,830 ($105,400 for the land and $201,430 for the improvements). The appellant estimates the value is $240,000 (No breakdown between land and improvements was provided). The appellant informed the Board that he purchased the property in August, 2011 for $240,000 and he feels that the purchase price represents fair market value. Appraiser Hough discussed the information he provided in the Board's packet and gave a brief history of the listing of the home on the open market. There were 122 sales in the Chimacum School District between July 2010 and July 2011. Out of those sales, 22 of them were distressed or bank sales which computes to 16% of the sales during that one year period. In order to reduce the assessed value to the sale price he would have to grade it at a low plus quality and he doesn't feel the home warrants that kind of reduction. The question is whether a distressed sale determines fair market value and it is up to the Board to make that determination in this case. The assessment date of this property is January 1, 2011. Hearing no further testimony, Chairman Garing closed the hearing. The Board will make a determination at a later date. Marsh Anderson, LLC BOE: 11 -34 -R PN: 901 014 003 403 Peabody Port Angeles, WA 98362 Robert and Lisa Wise, appellants and Pat Lamb, Independent Fee Appraiser were present. Appraiser Charley Hough represented the Assessor's office. After explaining the hearing process Chairman Garing swore in al] parties. Under appeal is property located at 173 Hadlock Bay Road, Port Hadlock. Currently, the property is assessed at $3,899,840 ($1,199,840 for the land and $2,700,000 for the improvements). The appellants estimate the value is $2,000,000 ($700,000 for the land and $1,300,000 for the improvements). Independent Appraiser Pat Lamb stated he is a Washington State General Certified Appraiser with an MAI designation and he provided background of his appraisal experience. The appellants are appealing the Assessor's valuation of $3,899,840 on property known as the Port Hadlock Marina. The appellant's petition listed their initial estimate of true and fair market value as $2,000,000, but noted that this estimate was subject to revision as additional information became available. He stated that prior to their Board of Equalization Minutes - February 14, 2012 Page: 4 purchase of the property a storm damaged the marina which caused an 84% loss in occupancy. The Inn at Port Hadlock closed its doors and went into foreclosure. All of this impacted the revenue of the marina. Mr. Lamb stated that he prepared an appraisal as of September 8, 2011 that included 87 pages of documentation plus addendums. He presented and discussed seven (7) comparable sales of marinas located in the Puget Sound region. Four (4) of these sales occurred within the current assessment cycle with one sale pending. Their final opinion of true and fair market value is $3,021,044 consisting of $2,648,189 for the "As Is" marina leasehold real property with an additional $372,855 for the fee simple upland real property. The appellants contend that the Appraiser did not adequately separate the value of the land, the value of the improvements, and the "business enterprise value ". They stressed that the concept of subtracting the enterprise value of the business to isolate the real property interest is particularly important when considering the specialty use of a business such as a marina. Appraiser Hough presented a Real Estate Excise Tax Affidavit showing that the marina was purchased by the appellants in January 2011 for $4,275,000. The property was assessed as of January 1, 2011 for a total valuation of $3,899,840 with improvements valued at $2,700,000 and land valued at $1,199,840. He acknowledged that adjustments for excess front footage were not properly accounted for in the initial determination of fair market value. After a lengthy discussion, the Appraiser Hough stipulated that the appellant's appraisal accurately reflects the true and fair market value of the property as of January 1, 2011. Hearing no further testimony, Chairman Gating closed the hearing. The Board will make a determination at a later date. Donald Johnston BOE: 11 -31 -LO PN: 021202 025 6344 NE 130t° Place 11 -32 -LO 021202 026 Kirkland, WA 98034 Donald Johnston was not present. Appraiser John Pray represented the Assessor's office and was sworn in by Chairman Garing. Under appeal is the land value of two (2) parcels located off of Fort Gate Road, Nordland. Following is the current assessment and the appellant's estimate of value for the parcels under appeal: BOE NO. Parcel NO. Current Assessed Value Appellant's Estimate of Value 11 -31 -LO 021 202 025 $17,500 (Land Only) $7,500 11 -32 -LO 021 202 026 $35,000 (Land Only) $15,000 On each petition form the appellant wrote the following reason for appealing the valuation of both parcels: "In conversation by phone with the person who apparently appraised the lot, he stated the price in sale of only one other lot (a half acre) with no specific location, only west of my property with no explanation of comparative value + wrongly stated that my property had been listed for sale. It has Board of Equalization Minutes - February 14, 2012 Page: 5 never been listed since my ownership. Am retired & living on social security and may consider selling. Never been rented or occupied no improvements in past 2 years. This lot is part of the drainf eld for my room house. I don't understand justification for assessed increase in this depressed real estate market ". Appraiser Pray stated the appellant owns three (3) parcels. The two (2) parcels under appeal are vacant lots. One parcel has received a 50% reduction for the drainfield. He feels these vacant land parcels are assessed at fair market value. Hearing no further testimony, Chairman Garing 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. ATTTST• Le31ie R. Locke, ZCle/rkof the Board JEFFERSON COUNTY BOARD OF EQUALIZATION Dave Garing, Chairman Henry Krist, Vice - Chairman S� Michael Smith, Member