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HomeMy WebLinkAboutM0328170k Dave Garing Michael Smith Henry Krist 1820 Jefferson Street P.O. Box 1220 Port Townsend, WA 98368 Dave Garing Henry Krist Michael Smith MINUTES March 28, 2017 Chairman Vice -Chairman Member Chairman Dave Garing called the meeting to order at 9:50 a.m. in the presence of Vice -Chairman Michael Smith and Member Henry Krist. ASSESSMENT CORRECTIONS AND PETITION WITHDRAWS Vice -Chairman Smith moved to accept the following assessment corrections and petition withdraws. Member Krist seconded the motion which carried by a unanimous vote. NAME Dennis Chastain Curtis Rideout GL 44 David Amos Gordon Family Trust APPEAL NO. BOE 16 -01 -LO BOE 16 -31 -LO BOE 16 -32 -LO BOE 16-35-R BOE 16-46-R REQUEST TO RECONVENE PARCEL NO. 712 182 005 721 194 024 721 194 025 821 053 017 801 016 001 REQUEST TO RECONVENE THE 2016 BOARD OF EQUALIZATION: Jefferson County Assessor - Parcel No. 989 704 203 (Lexington Investments, LLC) (Reconvening Code 05 - outlined in WAC 458-14-127 RECONVENED BOARDS -AUTHORITY which states the assessor or taxpayer requests the board reconvene and the following conditions apply: A. Real property within the county is revalued on an annual basis; B. A timely appeal was pending before the BOE when the property was revalued for a intervening year and the assessed value did not change; and C. No appeal was filed for the intervening year) Member Krist moved to reconvene the 2016 Board of Equalization for the following: APPELLANT TAXPAYER PARCEL NO. Jefferson County Assessor Lexington Investments, LLC. 939 001 202 Vice -Chairman Smith seconded the motion which carried by a unanimous vote. Phone (360)385-9100 Fax (360)385-9382 jeffbocc@co.jefferson.wa.us Board of Equalization Minutes — March 28, 2017 Page: 2 REQUEST TO RECONVENE THE 2016 BOARD OF EQUALIZATION: Jefferson County Assessor - Parcel No. 950 700 105 (Jonathan Garrison & Stephanie Pare) (Reconvening Code 02 - outlined in WAC 458-14-127 RECONVENED BOARDS -AUTHORITY which states the Assessor submits an affidavit to the board stating that the assessor was unaware of facts which were discoverable at the time of appraisal and that such lack of facts caused the valuation of property to be materially affected) Member Krist moved to reconvene the 2016 Board of Equalization for the following: APPELLANT TAXPAYER PARCEL NO. Jefferson County Assessor Jonathan Garrison/Stephanie Pare 950 700 105 Vice -Chairman Smith seconded the motion which carried by a unanimous vote. REQUEST TO RECONVENE THE 2016 BOARD OF EQUALIZATION: Christian & Cime Andrews — Parcel Nos. 002 122 002 and 002 122 005 (Reconvening Code 03 - outlined in WAC 458-14-127 RECONVENED BOARDS -AUTHORITY which states in an arm's length transaction, a bonafide purchaser or contract buyer acquired interest in the property after July 1, but on or before December 31, of the assessment year and the sale price was less than 90% of the assessed value.) Member Krist moved to reconvene the 2016 Board of Equalization for the following: APPELLANT TAXPAYER PARCEL NO. Christian & Cime Andrews Christian & Cime Andres 002 122 002 Christian & Cime Andrews Christian & Cime Andres 002 122 005 Vice -Chairman Smith seconded the motion which carried by a unanimous vote. DETERMINATIONS Per WAC 458-14-095(4) post hearing deliberations of the Board of Equalization are not recorded. The Board began post hearing deliberations at 10:00 a.m. At the conclusion of the deliberations the Board resumed the regular meeting at 12:01 p.m. and the following actions were taken. David & Allison Janowski BOE: 16-04-R PN: 933 900 003 510 North Beach Drive Port Ludlow, WA 98365 Under appeal is the land and improvement value of property located at 510 North Beach Drive, Port Ludlow. The property was assessed as of January 1, 2016 and is currently valued at $385,289 ($185,000 for the land and $200,289 for the improvements). The appellants estimate the value to be $288,992 ($180,000 for the land and $108,992 for the improvements). Board of Equalization Minutes — March 28, 2017 Page: 3 David Janowski attended the hearing and testified that he and his wife purchased the property on July 15, 2015 for $422,500. He also presented an appraisal of the property dated June 27, 2015 with a value $422,500 and three comparable property sales that occurred on North Beach Drive. He stated that there were no recent property sales in the area. He also testified that when they purchased their property, the market was just recovering and they slightly overpaid for their property. He feels their estimate of value is correct because their bank appraisal had an influence on the recent sales in the area and artificially increased the value of all the homes on North Beach Drive. The Assessor's representative presented a tax parcel map of the immediate area identifying the location of comparable sales, a copy of the appraisal worksheet for the subject property, and six comparable property sales including three submitted by the appellants. All six comparable property sales occurred in 2016 and ranged in price from $270,000 to $480,000. After reviewing all the information submitted, the Board concurred that the appellant did not present clear, cogent, and convincing evidence necessary to overcome the presumptive correctness of the Assessor. Vice -Chairman Smith moved to sustain the Assessor's valuation of $385,289 ($185,000 for the land and $200,289 for the improvements). Member Krist seconded the motion which carried by a unanimous vote. (See also minutes of January 31, 2017) Ida & Keith Entry BOE: 16-14-R PN: 948 309 801 111512th Street Port Townsend, WA 98368 Under appeal is the land and improvement value of property located at 1115 12th Street, Port Townsend. The property was assessed as of January 1, 2016 and is currently valued at $217,864 ($65,100 for the land and $152,764 for the improvements). The appellants estimate the value to be $205,100 ($65,100 for the land and $140,000 for the improvements). Ida Emry attended the hearing and testified that she and her husband purchased the property on September 17, 2014 for $190,000 and spent an estimated $10,000 on improvements. She did not present any sales of comparable properties, but testified at the hearing that the value should be reduced based on traffic noise as well as the muddy condition of the road leading to their parcel during the rainy season. The Assessor's representative presented a response to Taxpayer's Petition, a copy of the appraisal worksheet for the subject property, and four comparable property sales. One of the comparable sales sold twice in a one year period (double sale). The comparable property sales ranged in price from $212,900 to $270,000 and sold between June 4, 2015 and May 31, 2016. Board of Equalization Minutes — March 28, 2017 Page: 4 After reviewing all the information submitted, the Board concurred that the appellants did not present clear, cogent, and convincing evidence necessary to overcome the presumptive correctness of the Assessor. Member Krist moved to sustain the Assessor's valuation of $217,864 ($65,100 for the land and $152,764 for the improvements). Vice -Chairman Smith seconded the motion which carried by a unanimous vote. (See also minutes of January 31, 2017) Roger & Betty Jane Redifer BOE: 16-20-R PN: 821 265 005 83 White Rock Lane Port Ludlow, WA 98365 Under appeal is the land and improvement value of property located at 83 White Rock Lane, Port Ludlow. The property was assessed as of January 1, 2016 and is currently valued at $849,741 ($491,300 for the land and $358,441 for the improvements). The appellants estimate the value to be $773,296 ($414,855 for the land and $358,441 for the improvements). Roger and Betty Redifer attended the hearing and testified that they purchased their property on May 5, 2015 for $927,000. They did not present any sales of comparable properties and stated that there were no sales of comparable properties in the area that would support their increase in value. The Assessor's representative presented a response to the taxpayer's petition, a copy of the appraisal worksheet for the subject property, and three comparable property sales. The comparable property sales all sold in 2015 and ranged in price from $785,000 to $1,045,000. After reviewing all the information submitted, the Board concurred that the appellant did not present clear, cogent, and convincing evidence necessary to overcome the presumptive correctness of the Assessor. Vice -Chairman Smith moved to sustain the Assessor's valuation of $849,741 ($491,300 for the land and $358,441 for the improvements). Member Krist seconded the motion which carried by a unanimous vote. (See also minutes of January 31, 2017) Robert Lambe BOE: 16-15-R PN: 990 603 226 P.O. Box 65483 Port Ludlow, WA 98365 Under appeal is the land and improvement value of property located at 671 Pioneer Drive, Port Ludlow. The property was assessed as of January 1, 2016 and is currently valued at $314,147 ($80,000 for the land and $234,147 for the improvements). The appellant estimates the value to be $284,850 ($80,000 for the land and $204,850 for the improvements). Board of Equalization Minutes — March 28, 2017 Page: 5 Robert Lambe and his son, Jesse Lambe attended the hearing. The appellant did not provide any market sales data to support his estimate of value. The home was built in 1990 and has a water view with the primary living area encompassing approximately 1,482 square feet. The 3 bedroom, 2.5 bath home also has a basement, and an attached garage. The appellant testified at the hearing that no improvements had been made to the property in the last 10 years and the cedar shake roof needs replaced. The Assessor's representative presented a tax parcel map of the immediate area identifying the location of comparable property sales, a copy of the appraisal worksheet for the subject property, and three comparable property sales from Redfin's real estate data base that he believes support the Assessor's determination of value. The comparable property sales consist of three bedroom homes with 2.25 to 3 baths. All three comparable property sales occurred in 2016 and ranged in price from $297,500 to $325,000. After reviewing all the information submitted, the Board concurred that the appellant did not present clear, cogent, and convincing evidence necessary to overcome the presumptive correctness of the Assessor. Member Krist moved to sustain the Assessor's valuation of $314,147 ($80,000 for the land and $234,147 for the improvements). Vice -Chairman Smith seconded the motion which carried by a unanimous vote. (See also minutes of February 3, 2017) William & Nancy Zingheim BOE: 16-16-R PN: 921324 014 6281 Oak Bay Road Port Ludlow, WA 98365 Under appeal is the land and improvement value of property located at 6281 Oak Bay Road, Port Ludlow. The property was assessed as of January 1, 2016 and is currently valued at $285,649 ($201,360 for the land and $84,289 for the improvements). The appellants estimate the value to be $151,000 ($95,000 for the land and $50,000 for the improvements). William Zingheim attended the hearing and testified that his property did have, but no longer has the comparable value of similar homes on waterfront acreage. He asserts that changes in State and County shoreline and wetland regulations (requiring a 150 foot setback from any body of water, wetland, or stream) have diminished the value. He also testified that the County legally permitted the home, shop, and septic field but then subsequently designated all of those same structures to be non -conforming, significantly limiting the ability to move, alter, expand, or construct improvements. Additionally, since he purchased the property in 1994, State and County regulations have been established that impose significant restrictions on the current use, future improvements, and limited potential of the entire unimproved property. Approximately two years ago the appellant placed his property on the open market with a local Real Estate broker. The broker believed that comparable sales of waterfront properties justified a listing price of $345,000. One offer was received for $330,000 but quickly rescinded when the prospective buyer became Board of Equalization Minutes — March 28, 2017 Page: 6 aware of the overlapping restrictions placed on the property. He also attempted to sell the property himself. He was able to generate reasonable interest that "vaporized" when prospective buyers learned of the county restrictions and limitations placed on the property. The Assessor's representative presented three sales that he identified as comparable property sales, a tax parcel map showing the location of the comparable property sales, photographs of the subject property, a copy of the appraisal worksheet for the subject property, and the first page from Redfin's real estate data base of the three comparable property sales. He testified that each of the comparable properties included a manufactured home of similar square footage and age with some updates. Two of the three included similar acreage, and he said that none of the properties were encumbered by waterfront or wetland restrictions similar to that of the appellant's property. The Assessor's representative explained that he valued the appellants' property by the local waterfront foot multiplier ($2,100 per waterfront foot) and gave it a negative 35% adjustment for a muddy shoreline. He also assigned the property a negative 15% adjustment because the ground between the house and shoreline is wet. He did not feel it necessary to negatively adjust the upland acreage. RCW 90.58.290 requires that the restrictions imposed under the Shoreline Management Act be taken into account by the Assessor in setting the fair market value of property. The Board finds that due to the unique nature of the appellants' property, there is compelling evidence indicating county restrictions limit and prohibit activities to a much higher degree than typically associated with most residential waterfront property, and these restrictions have negatively impacted its current market value. The presence of a year-round stream running through the length of the subject's uplands requires a 150' buffer on both sides of the stream's course. These setbacks are a significant restriction on a parcel that is only 214' wide. The Board finds that county restrictions on the subject's uplands warrants a negative adjustment of 15% in addition to the Assessor's site quality adjustment of negative 15% for "wet ground" between the home and shoreline. The considerable volume of mud that has accumulated along the intertidal zone in front of the subject property impedes most recreational use of the tidelands. The Board finds the negative adjustment of 35% that the Assessor applied to the local front foot rate should also be consistently applied to the assessed valuation of the tidelands. Adjustments were not made to the subject's improved valuation. However, the Board recognizes in its total valuation of land and improvements that potential buyers may be reluctant to move forward (at a price initially perceived to be fair market value) upon learning that these structures have been declared "non -conforming", possibly impairing the purchaser's ability to obtain financing, secure standard insurance, or satisfy all county requirements through a fee based permit and consultation process in determining whether it is possible to expand, move, or replace existing structures. Board of Equalization Minutes — March 28, 2017 Page: 7 The Assessor's representative presented three comparable property sales that he described as less desirable than the subject because they were not on waterfront nor had a water view. The Board does not agree with the contention that waterfront property is inherently more valuable than non - waterfront property, hence the reason to consider comparable sales. Upon examining the second page of Redfin's sales summary (which the Assessor's representative neglected to provide to the Board), comparable sale #3 is characterized as having "dramatic mountain views" and has "perfect southern exposure for gardening/farming" neither of which the subject has. It appears from the photographs and maps that the subject property overlooks a small harbor, a rock quarry in the process of being reclaimed, a commercial pier and fish processing facility, and muddy shoreline. The Assessor's representative also stated his belief that the three comparable sales were not encumbered by the same shoreline and wetland restrictions that blanket the subject property. The Board of Equalization finds that a preponderance of the evidence supports a true and fair market value of $229,503 which is higher than the appraiser's comparable sales #1 and #2 but lower than his comparable sales #3. After consideration of all the evidence and testimony, Vice -Chairman Smith moved to overrule the Assessor's determination of value and reduce it from $285,649 ($201,360 for the land and $84,289 for the improvements) to $229,503 ($145,214 for the land and $84,289 for the improvements). Member Krist seconded the motion which carried by a unanimous vote. (See also minutes of February 3, 2017) Fredrick & Paula Davis BOE: 16-19-R PN: 990 600 107 143 Baldwin Lane Port Ludlow, WA 98368 Under appeal is the land and improvement value of property located at 143 Baldwin Lane, Port Ludlow. The property was assessed as of January 1, 2016 and is currently valued at $393,589 ($50,000 for the land and $343,589 for the improvements). The appellants estimate the value to be $357,105 ($50,000 for the land and $307,105 for the improvements). Fredrick Davis attended the hearing. The appellants did not contest the Assessor's valuation of land. The home was built in 2007 with the primary living area encompassing approximately 2,671 square feet. The 3 bedroom, 2.5 bath home also has a finished basement, and an attached garage on the lower level. He presented two comparable property sales that occurred in the neighborhood: 1) 201 Montgomery Court sold on September 9, 2015 for $325,000; and 2) 63 Baldwin Lane sold on June 15, 2015 for $270,000. Additional documentary evidence regarding the specific characteristics of these two sales of comparable properties were not made available to the Board. He testified that a market evaluation was conducted that resulted in a value ranging from $360,000 to $390,000. Written documentation of this market analysis was not offered for the Board's inspection. Board of Equalization Minutes —March 28, 2017 Page: 8 The Assessor's representative presented a tax parcel map of the immediate area identifying the location of comparable property sales, a copy of the appraisal worksheet for the subject property, and four comparable property sales from Redfin's real estate data base. The comparable property sales consist of two, three, and four bedroom homes with 2 to 2.5 baths. The size of the homes ranged from 2,130 to 2,850 square feet. All four comparable property sales occurred between November 4, 2015 to December 9, 2016 and ranged in price from $297,500 to $325,000. The Assessor's representative testified at the hearing that a case could be made for a lower value, if the appellants' two comparable property sales were the only two considered. However, a wider sampling of comparable property sales is a more accurate estimate of valuation. After reviewing all the information submitted, the Board concurred that the appellants did not present clear, cogent, and convincing evidence necessary to overcome the presumptive correctness of the Assessor. Member Krist moved to sustain the Assessor's valuation of $393,589 ($50,000 for the land and $343,589 for the improvements). Vice -Chairman Smith seconded the motion which carried by a unanimous vote. (See also minutes of February 3, 2017) NOTICE OF ADJOURNMENT Member Krist moved to adjourn the meeting at 12:05 p.m. Vice -Chairman Smith seconded the motion which carried by a unanimous vote. JEFFERSON COUNTY ATT T: , BOARD OF EQUALIZATION Leslie R. LocAC&rk,f the Board Dave Gaffing, airman , Michael Smith, Vice -Chairman " l . d�'L�S2 Henry Krist, Member