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HomeMy WebLinkAboutM102512• o� EQU4,t ,4, O. Dave Garing Mike Smith Henry Krist 1820 Jefferson Street P.O. Box 1220 Port Townsend, WA 98368 Dave Gering Henry Krist MINUTES October 25, 2012 Michael Smith Chairman Vice - Chairman Member Chairman Dave Garing called the meeting to order at 11:30 a.m. in the presence of Vice - Chairman Michael Smith and Member Henry Krist. HEARINGS Georgette Semick & Gary Rossow BOE: 12 -48 -LO PN: 940 500 037 JTWROS 31 N. Rhododendron Drive Port Townsend, WA 98368 Prior to starting the hearing, Vice - Chairman Smith informed the members that he is acquainted with the appellants and would like to recues himself from this appeal. Chairman Garing asked Appraiser Hough and the appellants if they feel that Vice - Chairman Smith would be objective in making a decision on this appeal. Both parties agreed that Vice - Chairman Smith would be impartial and should participate in this appeal. Georgette Semick and Gary Rossow were present. Appraiser Charley Hough represented the Assessor's Office and Randall Marx, Jefferson County Public Health Department Environmental Health Specialist attended on behalf of the Assessor's Office. After explaining the hearing process Chairman Garing swore in all parties. Under appeal is the land value of property located in Cape George Village, Port Townsend. Currently, the property is assessed at $35,000. The appellants estimate the value is $18,000. Mr. Rossow testified that their property is an undeveloped lot that they purchased in October, 2004 in the Cape George Village for $18,000. At the time of purchase the appellants knew that the septic had failed the winter test which would limit their ability to install a septic system and get a building permit. He said that the Assessor's Office valued Phone (360)385 -9100 Fax (360)385 -9382 jeffbocc@co jefferson.wa.us Board of Equalization Minutes — October 25, 2012 Page: 2 their property at $70,000 with a 50% reduction for the septic problem. It is their position that the property is valued incorrectly for the following reasons: 1) It is not buildable in its current state. By definition, when the County has formally issued a determination that a septic permit cannot be issued, then no building permit can be issued and no building can be constructed. The fact that there may be ways to improve or change the state of the property such that it might eventually be permissible to build is purely speculation and not a basis for current valuation; and 2) The 50% reduction factor is entirely arbitrary and not based on any underlying facts or objective analysis. Mr. Rossow stated that nearly all of the comparable sales submitted by the Assessor's Representative have improvements. There is only one sale which occurred in August, 2012 and sold for $35,000. That lot has aseptic system worth $17,000 and he feels the Board should subtract that amount from the total value for a final value of $18,000. Appraiser Hough stated that the comparable sale the appellant is referring to has a septic permit that has expired. He discussed comparable sales and informed the Board that comparable sales 47 -11 that were provided in his packet of information are from listings not actual sales. Appraiser Hough testified that the appellants listed the property in 2012 with an asking price of $49,000 (Exhibit #4 Photo). The appellants received a letter from the Jefferson County Public Health Department (Exhibit 45) dated April 13, 1998 stating that the property failed a wet season evaluation during the winter of 1997 -1998. Appraiser Hough then reviewed the following comparable sales: Comparable Property #1 Parcel No.: 940 800 052 Location: Cape George Village Division 4, Lot 53 Value: $41,250 Sale Date: November, 2011 Sale Price: $42,000 Comparable Property #2 Parcel No.: 940 500 061 Location: Cape George Village Division 3, Lot 62 Value: $35,000 Sale Date: August, 2012 Sale Price: $35,000 This lot was given the same 50% reduction for the possible limitation of installing a septic system. The owners of this lot applied for a septic permit (SEP08 -13B) but it was never finalized. Board of Equalization Minutes — October 25, 2012 Page: 3 Comparable Property #3 Parcel No.: 940 500 047 and 940 500 048 Location: Cape George Village Division 3, Lot 48 and Lot 49 Value Lot 48: $182,760 (Land Value $80,000 and Improvement Value $102,760) Value Lot 49: $55,295 (Land Value $35,000 and Improvement Value $20,295) Sale Date: March, 2012 Sale Price: $240,000 for both lots Comparable Property #4 Parcel No.: 940 800 037 Location: Cape George Village Division 4, Lot 37 Value: $109,860 (Land Value $65,000 and Improvement Value $44,860) Sale Date: April, 2012 Sale Price: $110,000 A 1974 mobile home is located on this parcel. Manufactured homes older than 1976 cannot be moved because Washington State Labor and Industries will not issue a moving permit. You either have to tear them down or you are stuck with them. Comparable Property #5 Parcel No.: 940 800 053 Location: Cape George Village Division 4, Lot 54 Value: $146,605 (Land Value $65,000 and Improvement Value $81,605) Sale Date: April, 2012 Sale Price: $150,000 Comparable Property #6 Parcel No.: 940 800 042 Location: Cape George Village Division 4, Lot 42 Value: $105,100 (Land Value $65,000 and Improvement Value $40,100) Sale Date: May, 2012 Sale Price: $125,000 1977 Double -wide mobile home is located on the property. The following are Real Estate listings of comparable properties. Even though they are not actual sales, listing prices cannot be ignored. This was determined by the Washington State Board of Tax Appeals (Docket 49223). Comparable Property #7 (Appellant's Comparable Property B) Parcel No.: 940 500 026 Location: Cape George Village Division 3, Lot 27 Value: $27,500 List Date: August, 2012 List Price: $391000 This lot was given the same 50% reduction for the possible limitation of installing a septic Board of Equalization Minutes — October 25, 2012 Page: 4 system. This lot was issued a septic permit (SEP08 -98) but it has expired. Comparable Property #8 Parcel No.: 940 500 039 Location: Cape George Village Division 3, Lot 40 Value: $35,000 List Date: August, 2012 List Price: $59,000 This lot was given the same 50% reduction for the possible limitation of installing a septic system. Comparable Property #9 Parcel No.: 940 500 044 Location: Cape George Village Division 3, Lot 45 Value: $70,000 List Date: February, 2012 List Price: $95,000 Comparable Property 910 Parcel No.: 940 500 081 Location: Cape George Village Division 3, Lot 82 Value: $27,500 List Date: August, 2012 List Price: $57,500 This lot was given the same 50% reduction for the possible limitation of installing a septic system. Comparable Property #11 Parcel No.: 940 800 021 Location: Cape George Village Division 4, Lot 21 Value: $98,000 List Date: August, 2012 List Price: $239,000 This lot was given a 40% increase for the location with a great view. The following are the appellant's comparable property sales that occurred in Cape George Colony: Appellant's Comparable Property A Parcel No.: 938 400 901 Location: Cape George Colony Division 3, Block 9, Lot 1 Value: $7,440 Sale Date: June, 2010 Sale Price: $8,250 Board of Equalization Minutes — October 25, 2012 Page: 5 This lot was given a reduction for size and possible limitation of installing a septic system. Appellant's Comparable Property C Parcel No.: 938 400 908 Location: Cape George Colony Division 3, Block 9, Lot 8 Value: $8,750 Sale Date: November, 2011 Sale Price: $8,500 This lot was given a 50% reduction for possible limitation of installing a septic system. Appellant's Comparable Property D Parcel No.: 938 400 812 Location: Cape George Colony Division 3, Block 8, Lot 12 Value: $39,000 Sale Date: October, 2008 Sale Price: $22,500 This lot has a site improvement for electricity. This lot was also listed for sale as of August, 2012 for $76,900. On August 23, 2012, Appraiser Hough drove through Cape George Village and found several vacant properties for sale ranging from $39,000 up to $239,000 including the appellant's lot. There have been only two land sales between December, 2011 and August, 2012 which are comparable property sales #I and #2. There have been 11 sales in the Colony and Village from July, 2011 through July, 2012. In response to a question to define "building envelope" Appraiser Hough replied that it is the area that remains after installation and setbacks from the septic system. There are also height restrictions in Cape George and limits on the allowable square feet of building space. Randall Marx, Jefferson County Environmental Health Specialist testified that when installing a septic system there needs to be 12 inches of dry usable soil. If the lot has 18 inches or less, the State requires that the lot go through a wet season evaluation (which occur during the months of January, February and March). In the case of the appellant's property, they had less than 12 inches of dry soil and had to go through a wet season evaluation in 1998. Sometimes a lot will go through several evaluations before it passes or it is determined not buildable. Before another attempt at an evaluation is made, the property owner has to do something to try and dry up the soil such as installing culverts or a curtain drain. Most properties eventually pass the wet season evaluation and are issued a building permit. If during the evaluation the rainfall, exceeds 120% of normal rainfall or less than 80% of normal rainfall then the evaluation is considered incomplete and has to be performed again. Appraiser Hough stated that the property is worth something and the appellants have it Board of Equalization Minutes — October 25, 2012 Page: 6 listed for sale for more than it is valued. Chairman Garing asked Mr. Marx if the $17,000 estimate by the appellants to install a septic system is reasonable? Mr. Marx replied that a curtain drain or some kind of effort would need to happen before the appellants could request another evaluation. So depending on the cost of the improvement, it could be $17,000. Ms. Semick said that in order to install a curtain drain and request another evaluation it would cost $2,800. The estimate to install a mound system for a two bedroom house (as was done in Appellant Comparable Property B) would be $17,000 to $18,000. The reason they appealed to the Board of Equalization was because they felt there were not enough comparable property sales to determine true and fair market value. Appraiser Hough stated that the County has never said that the lot is not buildable. There are just additional things that need to be done in order for the possible approval of a septic permit. Values in the Village are less than in the Colony. In general, land values were lowered by 30 %. Discussion continued regarding the length of time various lots have been on the market and have not sold. The appellants stated that their lot has been listed since August, 2012 for $42,000 and there has only been one call of interest. Hearing no further testimony, Chairman Garing closed the hearing. The Board will make a determination at a later date. Member Krist moved to adjourn the meeting at 12:45 p.m. Vice - Chairman Smith seconded the motion which carried by a unanimous vote. ATT ST: Leslie R. Locke, Clerk of the Board JEFFERSON COUNTY BOARD OF EQUALIZATION C ` Dave Ga 'n Chairm n MC: