HomeMy WebLinkAboutM102816Dave Garing
Michael Smith
Henry Krist
1820 Jefferson Street
P.O. Box 1220
Port Townsend, WA 98368
Dave Garing Henry Krist Michael Smith
MINUTES
October 28, 2016
Chairman
Vice -Chairman
Member
Chairman Dave Garing called the meeting to order at 9:30 a.m. in the presence of Vice -Chairman
Michael Smith and Member Henry Krist.
APPROVAL OF MINUTES
Member Krist moved to approve the minutes of July 15, 18 and 19, 2016. Vice -Chairman Smith seconded
the motion which carried by a unanimous vote.
HEARING
Lexington Investments, LLC BOE: 15-34-R PN: 989 704 206
Shaun Novinbakht 15 -35 -LO 989 704 203
9454 Wilshire Blvd., Ste. PHI
Beverly Hills, CA 90212
Shaun Novinbakht was not present. Appraiser Charley Hough represented the Assessor's Office and
was sworn in by Chairman Garing.
The property was valued as of January 1, 2015. Following is the current assessment and the
appellant's estimate of value for the parcels under appeal:
Parcel No. Current Assessed Value Appellants' Estimate of Value
989 704 206 $1,270,690 ($691,750 Land & $578,940 Imp) $580,000 ($300,000 Land & $280,000 Imp)
989 704 203 $605,340 (Land Only) $200,000 (Land Only)
Phone (360)385-9100 Fax (360)385-9382 jeffbocc@co.jefferson.wa.us
Board of Equalization Minutes — October 28, 2016 Page: 2
BOE 15-34-R (989 704 206)
Under appeal is an improved parcel zoned commercial located at 734 Water Street in Port Townsend.
On the petition form the appellant wrote the following reason for appealing the valuation of the parcel:
"The property was just purchased on 11-16-2015 for the total purchase price of $580, 000. Which
included both parcel numbers 989704206 and 989704203. "
Per a request from Chairman Garing, Appraiser Hough reviewed the improvement values shown on the
commercial cost sheet as follows:
Section 1 (Bank)
Basic Building Cost:
$1,104,881.91
Additional Sums (includes Drive-thru canopy, Asphalt & ATM cover):
$
11,550.00
50% Depreciation for Building:
$
558,215.95
Square Foot Cost:
$
180.33
Section 2 (Mezzanine)
Basic Building Cost:
$
330,933.26
50% Depreciation for Building:
$
165,466.63
Square Foot Cost:
$
65.17
In 2014, the Assessor's Office purchased a new computer system called PACs. When the data was
transferred some of the information was taken from previous assessments. In this case, the appellant's
improvement value is determined by a flat rate of $578,940.
Appraiser Hough discussed the square footage rates used to determine the land value. The land value was
given a 20% increase for a corner influence. He stated that no adjustments have been made since 2013.
All properties located in Port Townsend are currently valued statistically. A physical inspection will be
performed in 2018. The appellant purchased the property on a Special Warranty Deed on November 17,
2015 for $588,000.
Vice -Chairman Smith asked if this property was listed for sale prior to being purchased by the appellant?
Appraiser Hough responded that the appellant verbally told him that he purchased the property at a real
estate auction.
Appraiser Hough discussed the following comparable property sales:
Comparable Property #1
Parcel No.:
965 703 007
Location:
1334 Lawrence Street, Port Townsend
Assessed Value:
$390,400
Sale Date:
June, 2014
Sale Price:
$400,000
Board of Equalization Minutes — October 28, 2016 Page: 3
Comparable Property #2
Parcel No.: 989 700 803
Location: 817 Water Street, Port Townsend
Assessed Value: $316,693
Sale Date: August, 2014
Sale Price: $430,800
Comparable Property #3
Parcel No.:
989 705 706
Location:
940 Washington Street, Port Townsend
Assessed Value:
$299,245
Sale Date:
October, 2014
Sale Price:
$225,000
Comparable Property #4
Parcel No.:
989 713 504
Location:
1005 Lawrence Street, Port Townsend
Assessed Value:
$580,300
Sale Date:
October, 2015
Sale Price:
$650,000
Comparable Property #5
Parcel No.:
989 705 603
Location:
835 Jefferson Street, Port Townsend
Assessed Value:
$401,045
Sale Date:
October, 2015
Sale Price:
$500,000
Comparable Property 46
Parcel No.: 989 704 302
Location: 609 Washington Street, Port Townsend
Assessed Value: $394,085
Sale Date: November, 2015
Sale Price: $435,000
Comparable Property #7
Parcel No.: 989 700 708 and 989 700 709
Location: 725 Water Street, Port Townsend
Assessed Value: $1,291,628
Sale Date: December, 2015
Sale Price: $1,440,000
Board of Equalization Minutes — October 28, 2016 Page: 4
Comparable Property #8
Parcel No.:
989 703 702
Location:
1220 Water Street, Port Townsend
Assessed Value:
$819,905
Sale Date:
January, 2016
Sale Price:
$755,000
Comparable Property #9
Parcel No.:
989 704 112
Location:
230 Taylor Street, Port Townsend
Assessed Value:
$592,680
Sale Date:
March, 2016
Sale Price:
$1,125,000
Comparable Property #10
Parcel No.: 001 024 001 and 001 024 009
Location: 1012 Lawrence Street, Port Townsend
Assessed Value: $877,230
Sale Date: March, 2016
Sale Price: $1,000,000
Appraiser Hough provided a memo from the Washington State Department of Revenue stating that
Bargain and Sale Deeds and Special Warranty Deeds will no longer be accepted as valid sales. Only
sales with Warranty Deeds or a Real Estate contract should be included in the valid sales reports.
Discussion ensued regarding the lease for the appellant's property. A copy of the lease agreement was not
provided. Commercial property is valued using a square footage rate not an income approach. The same
methodology was used to value the appellant's property and the comparable properties.
BOE 15 -35 -LO (989 704 203)
Appraiser Hough stated this parcel is used as a parking lot for bank customers. It is divided into four (4)
lots as follows:
Lot 2: 6,050 square feet, receiving a 50% reduction for excess lot.
Lot 4: 6,050 square feet, receiving a 50% reduction for excess lot.
Lot 6: 5,105 square feet, receiving a 50% reduction for excess lot and a 15% reduction for size.
Lot 8: 4,125 square feet, receiving a 50% reduction for excess lot and a 32% reduction for size.
Based on the methodology used to value banks with parking lots located in Port Townsend, Appraiser
Hough recommended reducing the land value from $605,340 to $384,244.
Chairman Garing noted that the appellant indicated on the petition forms that additional information
would be submitted. The Clerk of the Board confirmed that no additional information was received from
the appellant prior to the hearing.
Board of Equalization Minutes — October 28, 2016 Page: 5
Hearing no further testimony, Chairman Garing closed the hearing. The Board will make a
determination at a later date.
ADJOURNMENT
Vice -Chairman Smith moved to adjourn the meeting at 11:32 a.m. Member Krist seconded the motion
which carried by a unanimous vote.
ATTE T:
L sl4eL cke, Clerk of the Board
JEFFERSON COUNTY
BOARD OF EQUALIZATION
he
Dave Grin Chi an
ichael Smith, Vice -C airman
Henry Krist, Member