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HomeMy WebLinkAboutM102312OQ� EQU�� O Dave Garing Mike Smith Henry Krist 1820 Jefferson Street P.O. Box 1220 Port Townsend, WA 98368 Dave Gering Henry Krist MINUTES October 23, 2012 Michael Smith Chairman Vice - Chairman Member Chairman Dave Garing called the meeting to order at 10:00 a.m. in the presence of Member Henry Krist. Vice - Chairman Michael Smith was absent. ASSESSMENT CORRECTION Member Krist moved to accept the following assessment correction. Chairman Gazing seconded the motion. The motion carried. NAME Bruce Albert Robert Wise Marsh Andersen, LLC P.O. Box 10477 Bainbridge Island, WA 98110 APPEAL NO. PARCEL NO. BOE 12 -36 -R 998 300 013 HEARINGS BOE: 12 -21 -LO thru 12 -35 -LO Robert Wise was present. Appraiser John Pray represented the Assessor's Office. After explaining the hearing process Chairman Garing swore in all parties. Under appeal are 15 parcels located West of Hadlock Bay Road near the Port Hadlock Marina. APPEAL NO. PARCEL NO. ASSESSOR'S APPELLANT'S ESTIMATE ESTIMATE BOE 12 -21 -LO 901 121 005 $24,000 $3,360 BOE 12 -22 -LO 901 121 007 $106,000 $14,840 BOE 12 -23 -LO 931 800 101 $30,000 $4,200 Phone (360)385 -9100 Fax (360)385 -9382 jeffbocc@co.jefferson.wa.us 4, Board of Equalization Minutes — October 23, 2012 Page: 2 BOE 12 -24 -LO 966 000 101 $64,000 $8,960 BOE 12 -25 -LO 966 000 102 $192,000 $26,880 BOE 12 -26 -LO 966 000 201 $48,000 $6,720 BOE 12 -27 -LO 966 000 202 $80,000 $11,200 BOE 12 -28 -LO 966 000 301 $16,000 $2,240 BOE 12 -29 -LO 966 000 302 $16,000 $2,240 BOE 12 -30 -LO 966 000 303 $22,600 $3,164 BOE 12 -31 -LO 966 000 305 $8,000 $1,120 BOE 12 -32 -LO 901 121 009 $26,640 $1,825 BOE 12 -33 -LO 966 000 804 $34,720 $4,860 BOE 12 -34 -LO 997 900 010 $60,000 $8,400 BOE 12 -35 -LO 997 900 101 $60,000 $8,400 The appellant stated that he believes the price he paid for the property was fair and proper. The previous owner listed the property for sale at $299,000 and after several months received no offers. The asking price was reduced to $199,000 and there were a couple of inquiries, but no interested buyers. The appellant purchased the Hadlock Marina from the same owner who then approached him about buying the properties under appeal. They agreed on $110,000. Attached to the appellant's appeal form was a letter from Realtor Karen Best stating that the purchase price is the fair market value. He pointed out on a plat map where the various lots are located. He also pointed out that the property located along Hadlock Bay Road is zoned "Urban Growth Visitor Oriented Commerce." The Inn at Port Hadlock has been closed for over a year and the likelihood of tourism in that area is not very probable. Some of the other lots are zoned 13 -18 residence per acre for high density housing once the sewer system is installed. The Tri Area Sewer System plan has been discussed for several years and it is not known when it will be finalized. In the mean time these lots are not buildable. He stated that some of the lots are not owned contiguous so they do not have the required square footage for a drainfield in order to build. The appellant stated he owns a small lot (Lot #10) in "Villa's By the Sea" which is in a gated community located above the marina. He discovered that the drainfield for the grey water for the restaurant is located on this lot. The only way the appellant can build on this lot is to tear out the drainfield. The cost to relocate two legs of the drainfield into the common area is approximately $50,000 and he is not willing to invest that much money. Parcel #901 121 009 is one of the largest lots (approximately 5 acres) and the drainfields for the Inn at Port Hadlock and Villa's by the Sea are located on this property. The appellant stated it is unbuildable until the Port Hadlock sewer system is installed. He received a change of value notice from the Assessor's Office increasing the value from $0 to $26,640. He thought with the closing of the Inn at Port Hadlock he would be able to build on it, however, there is an easement that transfers with the property. There are no utilities to any of the properties under appeal. The road between the two larger parcels consists of gravel and dirt. Improvements would need to be done if the land was developed. The appellant received comparable property sales information from the Assessor's Office titled "Improved Property Sales." All of his lots are unimproved. He stated if the Assessor's v Board of Equalization Minutes — October 23, 2012 Page: 3 Representative used this information to determine fair market value than he did not make the appropriate conclusion. The appellant determined the fair market value of each parcel was 1/8 of the Assessor's value. Appraiser Pray stated that he sent the appellant the wrong comparable property sales information. He meant to send the unimproved property sales sheet. He presented a statutory warranty deed dated January 2, 1997 that shows the sale of a portion of the appellant's property for $500,000. The appellant's two "Villa's By the Sea" parcels not part of the 1997 sale. Neighboring parcels were sold between August 2004 and July 2005 for over $60,000. The 2007 assessed value was reduced from $900,000 to $780,000. Appraiser Pray noted that parcel 4966 000 801 was replaced by parcel #901 121 009 and he is not sure the reason for the change. In answer to a question from Chairman Gating, Appraiser Pray responded the assessment date for the parcels is January 1, 2011. Member Krist asked if both parties have met and discussed the differences? The appellant replied no. He had called the Assessor's Office and talked to another appraiser who told him that Assessor Jack Westerman would contact him. He did not hear from anyone until he received notice of his appeal hearing. Member Krist recommended that both parties meet. Chairman Garing has concerns that there may be limiting factors to the parcels and wondered if the Assessor's Office gave reductions to account for them. For example, the lot in "Villa's By the Sea" has a drainfield located on it and it is unbuildable. He asked Appraiser Pray if an error was made on this particular parcel? Appraiser Pray responded that he was unaware of the drainfield and if that is the case then a reduction would need to be made. Chairman Garing stated that the appellant has testified that some of the lots are zoned "Urban Growth Visitor Oriented Commerce." He asked if they were assessed as residential or if they were given a reduction for the special zoning? Appraiser Pray replied that all the lots were assessed as residential. He agreed that based on the testimony and information given by the appellant some of the values may be incorrect. Chairman Garing asked that both parties get together to discuss each parcel and determine whether a reduction is warranted. Appraiser Pray would be more than happy to work with the appellant but was concerned that he may not be able to come to an agreement for each parcel. Chairman Gating responded that the Board is not asking for both parties to come to an agreement. But rather, in light of the information, he would like to have the Assessor's Representative re- Board of Equalization Minutes — October 23, 2012 Page: 4 evaluate his assessments. The appellant stated he filed these appeals in June and has spent four months preparing for this hearing. He is very disappointed that the Assessor's representative did not seem to do his homework. Chairman Gating suggested that based on the evidence, this hearing be continued until all the information can be reviewed to determine if any parcel is warranted a correction. This hearing will be continued to a future date. Craig Cholvin & Stacy Olson BOE: 12 -37 -R PN: 931 500106 1208 Franklin Street Port Townsend, WA 98368 Craig Cholvin was present. Appraiser John Pray represented the Assessor's office. After explaining the hearing process Chairman Garing swore in both parties. Under appeal is the land and improvement value of property located at 860 Olympus Boulevard in Port Ludlow. Currently, the property is assessed at $410,035 ($292,720 for the land and $117,315 for the improvements). The appellants estimate the value to be $365,000 ($260,570 for the land and $104,430 for the improvements). The appellant stated they purchased their property for $365,000 in June, 2012 and paid $15,000 over the listing price. They had been looking at another property in the neighborhood, but it sold for $350,000 prior to them making an offer. A comparison is made to both properties because in 2007 their property was valued at $510,455 and the neighboring home was assessed much higher at $666,180. In 2011, their property was assessed at $410,035 and the neighboring property was assessed lower at $349,215. He stated that their home is a one bedroom and the comparable property sale is a three bedroom home with 25% more waterfront. They do have more square footage but again the neighboring property has more waterfront footage. He is asking that the value be lowered to the purchase price. Appraiser Pray stated he contacted the sellers of the appellant's property who informed him that they wanted to sell the property as a short sale. He gave a brief history of the sales for the appellant's property. He informed the Board that there has been a recent sale (September 27, 2012) located at 782 Olympus Blvd. that sold for $495,000 and it is currently valued at $412,000. Both properties have the same amount of depth which gives them more privacy. The appellant stated that he talked with the sellers of 782 Olympus Blvd. That property is fully landscaped, has a home and an accessory dwelling unit that can be rented out, and a septic system that can accommodate both structures. Their home consists of one bedroom and if they wanted to add additional bedrooms they would have to spend a lot of money to upgrade their septic system. Chairman Garing asked if the same waterfront rate was used for valuing all the waterfront Board of Equalization Minutes — October 23, 2012 Page: 5 properties in that area? Appraiser Pray replied yes, he used the same formula. Hearing no further testimony, Chairman Garing closed the hearing. The Board will make a determination at a later date. Cynthia & Rick Landis BOE: 12 -12 -R PN: 995 300 004 4943 SR 20 Port Townsend, WA 98368 Cynthia Landis was present. Appraiser John Pray represented the Assessor's office. After explaining the hearing process Chairman Garing swore in both parties. Under appeal is the land and improvement value of property located at 303 Castellano Way, Port Townsend. Currently, the property is assessed at $244,470 ($65,000 for the land and 5179,470 for the improvements). The appellants estimate the value to be $210,470 ($55,000 for the land and $159,470 for the improvements). The appellant stated that she and her husband have a partnership with Fred and Janie Kimball and that partnership developed Spring Valley Cottage Condominiums. With the downturn of the housing market the appellants were forced to purchase the five (5) remaining cottages to avoid the partnership filing for bankruptcy. She informed the Board that 2 years ago they had the good fortune to sell unit #2 for $240,000 and that unit is currently listed for sale for $220,000. The owners are renting unit 42 and offered the renters the option to rent to own for $200,000. Approximately 4 months ago they had an offer of $190,000 on unit 47 which has the exact floor plan as unit #2. The buyers did not like the CCRs and withdrew their offer. The appellant stated that she does not intend to sell unit #4, until the market turns around. If someone offered $220,000 it would be accepted. They would go as low as $210,000. Appraiser Pray provided two comparable property sales. Comparable property sale 41 is Unit #9 that sold in June 2008 for $267,500. Comparable property sale #2 is Unit 93 which sold in December 2008 for $284,900. Using the same methodology, he determined the value of Unit 94 as of January 1, 2009 to be $244,470. This property will be assessed and given a new value as of January 1, 2013. He then explained the four year cycle currently used by Jefferson County and informed the appellant that Jefferson County will go to an annual cycle in 2014. Hearing no further testimony, Chairman Garing closed the hearing. The Board will make a determination at a later date. DISCUSSION re: Draft Letter to Washington State Department of Revenue Regarding Equalizing All Quarry Properties in Jefferson County: Member Krist stated that due to the absence of Vice - Chairman Smith this discussion will be deferred until a later date. Board of Equalization Minutes - October 23, 2012 Page: 6 Member Krist moved to adjourn the meeting at 12:10 a.m. Chairman Garing seconded the motion. The motion carried. JEFFERSON COUNTY BOARD OF EQUALIZATION ATT ST: �DaveeGGannjg C it an� '-/(Excused sen L slie R. LocZle rk o f the Board Mike Smith, Vice-Chairman Henry Krist, Member