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}EFFERSON COUNTY BOARD OF EQUALIZATION
A. C. DALGLEISH
DAVID G. DOUGLAS
ARCIDE BARBER, JR.
JAMES A. DE LEO
CHAIRMAN
VICE-CHAIRMAN
MEMBER
ALTERNATE
MINUTES
OCT 0 B E R 1 7, 1 9 9 1
The Board of Equalization convened at 9:30 a.m. with Chairman A.c. Dalgleish, Vice-
Chairman David G. Douglas, Member Archie Barber, Jr.and Clerk Julie Matthes present. The
Board dispensed with the reading of the minutes of previous meetings at this time.
HEARINGS
MICHAEL SHIACH
50 FOSTER LAND
PORT LUDLOW, W A 98365
BOE: 91-123-LO
PN: 990 600 360
Chairman Dalgleish introduced the Board, the Clerk and the Assessor's Office representative
Bob Shold. He also explained the hearing process and swore in Mrs. Shiach, and her son,
Michael Shiach and Robert Shold.
Mrs. Shiach explained that she and her husband purchased this lot in 1973 for $6,450. Ten
years later, they quit claim deeded it to their son, Michael. They built their home on the lot
next door.
A few years ago they tried to sell the lot. There is runoff from Foster Lane and the lot is
a gully and a natural drainage area. In order to divert runoff, Jefferson County put a culvert
in that drains into this lot.
Robert Shold explained that the ravine and the use of this property because of the topography
were taken into consideration at the time it was assessed.
Board of Equalization Minutes: October 17, 1991
Page: 2
Vice-Chairman Douglas stated for the record that the neighborhood code 3334 is for Port
Ludlow 2, Area 3. The land code used is 1145. The lot is designated as a unimproved site,
partial fair marine view, it is wooded and the topography is difficult. The Assessor deducted
40% for topography and an addition 30% because of the ravine. The Board was on-site on
October 16, 1991 and noted the topography problems. Vice-Chairman Douglas asked if there
was any record in the Shiach's files or the County files to show that the County had tried to
divert the run off down the road rather than into their lot? Mrs. Shiach said the County built
up a berm on the road and she is not sure if the runoff from the road still goes through the
culvert.
Assessor's Exhibits:
#A-l Computer Field Sheet for Subject Property
#A-2 Neighborhood/Land Code Rate/Description Listing
There were no further comments or questions.
CERTIFICATE
OF
NEW CONSTRUCTION VALUE
Vice-Chairman Douglas stated that the Assessor had prepared a statement dated October 10,
1991. "Pursuant to RCW 36.21.080 and 84.40.040, I, Jack Westerman III, Assessor of
Jefferson County hereby certify that the value of new construction added to the 1991
assessment role is $48,698,530. New construction added subsequent to certification of the
assessment roles to the BOE. An additional $16,379,140 was included in this certification."
MOTION
Vice.Chairman Douglas moved to accept the Certificate of Construction
value. Member Archie Barber, Jr. seconded the motion which carried by
unanimous vote.
Board of Equalization Minutes: October 17, 1991
Page: 3
PACIFIC OIL PRODUCTS
NORMAN SATHER
P.O. BOX 227
PORT TOWNSEND, W A 98368
WILLIAM M. THOMAS
250 NORTH PALMER DRIVE
PORT TOWNSEND, WA 98368
BOE: 91-015-C
PN: 989 700 401
BOE: 91-016-C PN: 989 700 402
BOE: 91-017-C PN: 989 700 403
Chairman Dalgleish explained the procedures of the Board of Equalization and then swore
in Bob Shold representing the Assessor's Office, and Norman Sather who is also
representing William Thomas in this appeal.
Mr. Sather explained that the property is an old hydrocarbon bulk plant. There is an
underground oil storage tank that is empty. For many years the property was used as a bulk
storage facility, supplied from barges on the waterfront. At present the property is used as
a warehouse facility because of environmental regulations. The land is contaminated.
He went on to explain that the property is in a prime downtown waterfront location. In 1987,
the property was put up for sale and in 1990 an offer was made by a developer that wanted
to put condominiums on the site. A moratorium was passed by the City of Port Townsend
to stop waterfront development and within six months a city-wide waterfront plan was in
place. A building height restriction was adopted that stopped the developer and the sale of
the property.
The property is for sale again, but the City of Port Townsend is also interested in having it
as a park. The City's position is well known and therefore it is difficult to find potential
buyers. At this point, Mr. Sather feels they cannot sell the property or develop it and the
contamination has to be cleaned up at a cost of $250,000. Until the property is sold, it is
worthless.
The Board asked if the current owners are responsible for contamination of previous owners?
Mr. Sather replied that they are, unless they want to sue the previous owners. The 1985 and
1989 valuations were discussed.
Bob Shold stated that the land values from 1989 were consistent with 1985. There had not
been much sales activity in that area. The Assessor's Office did not know about the
contamination at the time of the valuation. He also added that the property is on the market
for $1.6 million, and explained this is usually an indicator of what the owner thinks the
property is worth.
Chairman Dalgleish asked what value Mr. Sather requested on the property? He had put
a "zero" on the petition for PN:989 700 401. Mr. Sather explained that he had deducted the
clean-up amount from two of the petitions (PN:989 700 401 and PN:989 700 403).
Board of Equalization Minutes: October 17, 1991
Page: 4
Vice-Chairman Douglas stated for the record that PN:989 700 401 is valued on land code
6016 for 165 front feet at $1000 a front foot. The second parcel, PN:989 700 402 is assessed
at land code 9301 or $40 per front foot for 55 front feet of tidelands. The third parcel,
PN:989 700 403 is assessed at land code 6016 for 55 front feet at $1000 a front foot.
$222,200 is the total land value of these three parcels together.
Vice-Chairman Douglas asked if the owners had received any indication from a federal or
state agency that the land needed to be cleaned up? Mr. Sather answered that the agencies
aren't responsible for making that decision, the property owners are. The only time there is
a deadline on clean-up is if the contamination is leaking into the environment or a water
source. The law is clear that it has to be cleaned up at some point. When the property is
sold, it will have to be cleaned up for the new owners. Vice-Chairman Douglas asked if the
owners qualify for any financial assistance from the government to clean up the property?
Mr. Sather said that there were only grants available that had to be paid back.
The Board asked Bob Shold for a copy of the land codes along Water Street so that they
could compare the $1000 a front foot with the rest of the area. Bob Shold explained that for
years there had not been any sales in the area, but since the last valuation of this property
there had been several. He said that because the waterfront on that street is not "used" as
waterfront, it is coded the same as the frontage on the other side of the street. Vice-
Chairman Douglas also asked Bob Shold for a map of the lots on Water Street.
Mr. Sather and the Board concurred that PN:989 700 402, which is tidelands and underwater
most of the time is not being contested.
Assessor's Exhibits:
BOE: 91-015-C
#A-l Computer Field Sheet for Subject Property
BOE: 91-016-C
#A-l Computer Field Sheet for Subject Property
BOE: 91-017-C
#A-l Computer Field Sheet for Subject Property
The Board will make an on-site inspection of this property on October 28, 1991.
Board of Equalization Minutes: October 17, 1991
Page: 5
JOHN E. MURRAY
517 SURRY DRIVE
SANTA ROSA, CA 95401
BOE: 91-122-R
PN: 976 500 004
Chairman Dalgleish opened the hearing with Robert Kingsley present to represent the
Assessor's Office. Mr. Murray was not present. Chairman Dalgleish read the petition into
the record. The land valuation is $77,820 and the improvements are $30,550. The petitioner
is asking for $55,000 on the land, $2,500 under crops, timber and minerals and under
improvements $29,800 for a total of $87,300. Mr. Murray states in the petition that he had
the property appraised in December, 1987 by Trinity Appraisal Service. This appraised value
was $87,300. It has 90 feet of waterfront.
Robert Kingsley stated that an appraisal was usually only good for six months. He had three
recent comparable sales. For the record, the Assessor's Office had a great deal of
correspondence with the Mr. Murray during the appeal process. The appellant asked Robert
Kingsley several times to reconsider and review the valuation, which he did, but not to the
appellant's satisfaction.
Robert Kingsley's first comparable is Lot #16 at Olympus Beach. It has 50 front feet of
waterfront and 50 feet of tidelands. It sold in June, 1988 for $87,000. The land and
residence assessment for 1991 totalled $69,295. The market value is higher than the
assessment. Comparable #2 is at Olympus Beach also, it consists of the east half of Lots 50
& 51. It has 100 front feet of waterfront. The total valuation for land and improvements is
$229,570. Comparable #3 is a portion of lots 48 and 49 at Olympus Beach. This parcel has
75 feet of waterfront. The total valuation for land and improvements is $146,525. It sold in
December of 1989 for $164,000. Robert Kingsley explained that when Mr. Murray had his
appraisal done in 1987, these local higher sales had not been transacted, therefore Mr.
Murray's appraiser had to go out of the area for com parables.
There was a brief discussion about the ownership of the property. Two brothers, Harry and
John inherited it from their mother's estate. They both are aware of the appeal.
Vice-Chairman Douglas stated for the record that land code 1125 was used in the valuation.
Assessor's Exhibits:
#A-l Computer Field Sheet for Subject Property
#A-2 Assessor's Listing of Sales within a Given Area
#A-3 Area Map of Olympus Beach Tracts
#A-4 Neighborhood/Land Code Rate/Description Listing
#A-5 Map of South End of Plat of Olympus Beach Tracts
#A-6 Map of North End of Plat of Olympus Beach Tracts
#A-7 Comparables #1-4, Computer Field Sheets and Real Excise Tax Forms
Board of Equalization Minutes: October 17, 1991
Page: 6
The on-site inspection for Mr. Murray's parcel is scheduled for October 23, 1991.
MARTHA K. DENNISTON
13030 12TH AVENUE N.W.
SEATTLE, WA. 98117
BOE: 91-120-R (Resort)
PN: 921 084 011
Chairman Dalgleish introduced the Board, the Clerk and the Assessor's Office representative
Bob Shold. He also explained the hearing process and swore in Mrs. Denniston and Robert
Shold.
Mrs. Denniston stated that there is a small business on this parcel that rents out cabins on
a daily basis, mostly during the tourist season. The property is very unique. There are
wetlands and natural habitat on the waterfront and her goal is to maintain this atmosphere so
that people enjoy its beauty. The waterfront is vulnerable to storms and in order to save the
beach she has had to put in a seawall.
Some of the buildings were built in 1925. There is very little room for expansion of the
business because of the limited water supply and septic problems on Marrowstone Island. She
has three wells and two septic fields. She feels it is important to leave the property as natural
as possible, that it should not be taxed at "highest and best use".
Bob Shold agrees that this is a very unique property. His first two comparables are smaller
parcels, although there are also rental cabins located on the beach. Comparable #1 sold in
1988 for $155,000 and has 110 feet of waterfront. Comparable #2 sold in October of 1988
for $165,000 and also has 110 feet of frontage. The last two comparables show waterfront
sales on Marrowstone Island. Comparable #3 is on Mystery Bay and sold in November 1989
for $285,000, it has 236 front feet. Comparable #4 is a sale from 1991 and is land only that
sold for $232,500 and is 200 front feet with tidelands.
Assessor's Exhibits:
#A-l Computer Field Sheet for Subject Property
#A-2 Neighborhood/Land Code RateIDescription Listing
#A-3 Map of Marrowstone Island
#A-4 Comparables #1-4, Computer Sheets and Real Estate Excise Tax Forms
There were no further questions or comments. Chairman Dalgleish stated that the Board
would do an on-site inspection on October 25, 1991.
Board of Equalization Minutes: October 17, 1991
Page: 7
BARBARA R. PHINIZY
20 BLUEBIRD LANE.
PORT LUDLOW, WA. 98365
BOE: 91-121-R
PN: 821 175 003
Chairman Dalgleish introduced the Board, the Clerk and the Assessor's Office representative
Robert Kingsley. He also eXplained the hearing process and swore in Mr. Phinizy and
Robert Kingley.
Mr. Phinizy stated that they bought this property and built a house that has been finished for
less than two months. They have a complete record of the total cost of the house. They
have spent $165,000 to build the house. They paid $43,000 for the lot. This is the actual
cost.
Chairman Dalgleish asked if it is a new construction assessment this year? Robert Kingsley
said that a portion of it is. Mr. Phinizy stated that they had been building for eighteen
months.
Mr. Kingsley discussed the land value. The Assessor arrived at $52,600 for 5.11 acres and
site improvements. There are two recent comparable sales. In May, 1990, Lot 4 which was
5.2 acres sold for $59,500. Lot 9 sold in June, 1990 for $65,000.
Mr. Phinizy added in closing that they did not have a view and there is a gully that makes
about one and a half acres of their property unusable.
There were no further comments at this time. The Board will have an on-site inspection on
October 23, 1991.
There being no further business before the Board, the meeting adjourned.
APPROVED BY:
DATE APPROVED:
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~.!oiG~Itii,gIitrRMAN
D' .CJ~
riA VI~O~GLAS, VIC CHAIRMAN
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ATTEST:
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ARCHIE L. BARBER, JR., MEMBER
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~lie A. Matt es
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CERTIFICATE OF NEW CONSTRUCTION VALUE
State of Washington )
)
JEFFERSON County )
Pursuant to RCW 36.21.080 and 84.40.040, I,
JACK WESTERMAN III
Assessor of JEFFERSON County, hereby certify that the value of new construction
added to the 1991 assessment roll is $ 48,698,530*
* NEW CONSTRUCTION ADDED SUBSEQUENT TO CERTIFICATION OF ASSESSMENT
ROLLS TO B.O.E.. AN ADDITIONAL $16,379,144 IN NEW CONSTRUCTION
N THE CERTIFICATION.
.~
Subscribed and ij.m to before me this / D day of
f3 1 . r ~ /' 6flA-~' d f1:M'j
JLJf\ Ii d\ .vi r ) tJ Auditor for
DC -fo!geY' . 19 C; /
Tf (:!f...KStY) County.
FILE A COpy ON OR BEFORE SEPTEMBER 15 WITH:
Department of Revenue
Property Tax DIvisIon
GA Building AX-02
Olympia, WA 98504-0090
FORM REV 64 0059 (6-89)