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HomeMy WebLinkAboutM101497 1820 Jefferson Street PO Box 1220 Port Townsend, WA 98368 James A. Deleo, District 1 William S. Marlow, District 2 Richard A. Broders, District 3 JEFFERSON COUNTY BOARD OF EQUALIZATION MINUTES OCTOBER 14, 1997 Richard A. Broders William S. Marlow James A. DeLeo Chairman Vice-Chairman Member Chairman Richard A. Broders called the meeting to order at 9:30 a.m. in the presence of Vice-Chairman William S. Marlow and Member James A. DeLeo. APPROVAL OF MINUTES Member DeLeo moved to approve the minutes of August 5, 6, 7, and II, 1997 as presented. Vice-Chairman Marlow seconded the motion which carried by a unanimous vote. ASSESSOR'S CERTIFICATION OF ASSESSMENT ROLLS Vice-Chairman Marlow moved to accept the Assessor's Certification of Assessment Rolls in the amount $2,097,640,833. Member DeLeo seconded the motion which carried by a unanimous vote. ASSESSMENT CORRECTION The Board concurred to accept the assessment correction for the following valuation appeal: APPELLANT Safeway Stores, Inc. APPEAL NO. BOE 97-32-C PARCEL NO. 948 303 106 Phone (360)385-9100 / 1-800-831-2678 Fax (360)385-9382 jeffbocC@Co.jefferson.wa.us BOARD OF EQUALIZATION MEETING MINUTES - OCTOBER 14, 1997 HEARINGS Page 2 Water Street Corporation 635 Water Street Port Townsend, W A 98368 BOE: 97-35-C PN: 989700 611 John Sudlow was present on behalf of the Water Street Corporation. Appraiser Bob Shold represented the Assessor's office. After explaining the hearing process, Chairman Broders swore them in. The property under appeal consists ofa historic, three-story, brick building located downtown Port Townsend. Mr. Sudlow explained that he is one of five individuals who initially purchased this building approximately six years ago. At the time the building was in a major state of disrepair. The Town Tavern was in the bottom floor and the top two floors were basically used as a flop-house. The owners renovated the building with a plan to rent apartment units on the second and third floors. As they got into the project they realized it would not be economically viable based on the amount they could get for rent, and the high turnover of tenants, due to the noise level from the Town Tavern which was leasing a portion of the building. The owners then decided to renovate the upper two floors into hotel units for transient use. The problem with the noise still exists, however, with this type of use it is only bothersome for the short term. A lot of money has been put into fixing up the building over the last five years. Mr. Sudlow stated that the Assessor's valuation would be fair under normal circumstances, but when this building was purchased, the owners also inherited a 15 year lease with the owner of the Town Tavern. The owners of the building have been in constant litigation with the owner of the Town Tavern which has made the tenant/landlord relationship very difficult. Revenue from the hotel and other space has not met expectations and the costs involved in litigation have not made this a successful business venture. In fact, 1996 was the first year that this business venture showed a profit ($1,200) and 1997 does not look much better. Mr. Sudlow presented a stack ofJetters and complaints which the Water Street Corporation has received about the noise problems. He stated that the problem is not the tavern itself, but rather the way it is managed. When the building was purchased the lease with the tavern outlined that live music was only allowed once a month. Somehow that lease was not recorded properly and the owner of the Town Tavern has never lived up to the terms of that lease. Now there is live music every Friday and Saturday night and sometime Thursday nights. The efforts of the Water Street Corporation to sound proof the building were unsuccessful, as the noise still reverberates the old brick building and on occasion causes the mortar to fall out. While it has not been certified that the noise level will eventually cause the building to collapse, Mr. Sudlow feels it is a serious issue and stated that the market value of this building is not the same as other buildings downtown due to this issue. A representative from the State Department of Revenue also conducted an appraisal of the property and had the same concerns as Mr. Sudlow. He is requesting the Board reduce the current valuation from $598,935 ($192,875 for the land and $406,060 for the improvements) to $450,000 ($150,000 for the land and $300,000 for the improvements). Bob Shold agreed with Mr. Sudlow that under normal circumstances the Assessor's valuation would be fair and equitable. During the revaluation of this property it appeared that the value was too low based on sales of similar property located downtown. Unfortunately, the Assessor's valuation does not reflect the affect the hostile lease situation has on the value of the property. Mr. Shold agrees that the hostile lease situation does have an effect on the property value, however, he does not know how to measure that effect. There are no sales of similar properties which have this same type of issue. The property was valued based on the cost approach and compared to the sales which have occurred downtown. Certainly a prudent buyer would choose to purchase property without these problems over purchasing the appellant's property at the same price. Mr. Shold commented on the appraisal done by the State Department of Revenue. He stated that this issue affects the income stream, and while he does not know to what degree, he is willing to work with Board to come up with a value which reflects market value. In response to a question posed by Vice-Chairman Marlow, Mr. Sudlow stated that he purchased the property for $290,000 in November of 1989. Mr. Sudlow added that there is 7 years remaining on the lease. After hearing the testimony of both parties, the Board concurred to conduct a physical inspection of the property and make a determination at a later date. BOARD OF EQUALIZATION MEETING MINUTES - OCTOBER 14, 1997 Page 3 Kathleen K. Jo c/o Elizabeth Berman 510 - 57th Street Port Townsend, W A 98368 BOE: 97-37-LO PN: 972 902 001 Elizabeth Berman 510 - 57tb Street Port Townsend, W A 98368 BOE: 97-38-LO 97-39-LO 97-40-LO PN: 972 901 701 972 901 602 972 902 102 Ms. Berman was not present. Appraiser Peter Schuck represented the Assessor's office and was sworn in by Chairman Broders. The property under appeal consists of various vacant lots located off of 52nd Street in the Montana addition in Port Townsend. Ms. Berman and Ms. Jo stated on their petitions that "Due to recent regulatory action of the City, market value of my land is lower than the new assessed value. With septic not allowable, sewer and other utilities, paved road, and other improvements required under attached SEP A are estimated to cost upwards of $200,000 (Liz Berman & Kathleen Jo's land). This land cannot be developed without all improvements, which far exceed the new assessed value. If the rules hadn't changed the new assessment would have been reasonable; NEW REGULATIONS CAME INTO EFFECT AFTER THE ASSESSMENT, SEVERELY RESTRICTING USE and NEGATIVELY AFFECTING VALUE. Any comparables in the area were able to install a septic system and build a residence - I CAN'T DO THAT." Ms. Jo is requesting the valuation of parcel number 972 902 001 be reduced from $35,100 to $21,000. Ms. Berman is requesting the following reductions in value: parcel number 972 901 701 be reduced from $40,800 to $28,000; parcel number 972 901 602 be reduced from $27,000 to $14,000; parcel number 972 902 102 be reduced from $27,000 to $14,000. Peter Schuck noted that the appellants felt the valuation was fair and equitable before the City changed their zoning regulations. Since the change in the City regulations, no sales have occurred which indicate property in the area is overvalued. He agrees that the City's new zoning regulations will impact many property valuations, by forcing individuals who want to develop their property, to extend sewer lines ifthey are within 500 feet of service, or requiring a minimum of 1 acre of land for individuals who are outside the 500 foot marker. Mr. Schuck presented a map outlining sewer and water lines in the area. Whether or not these parcels are inside or outside the 500 foot marker will depend on the City's interpretation of property boundaries and right-of-ways. In looking at the map, Mr. Schuck stated that the parcels are at least 520 feet away from the sewer and water lines and therefore the appellant must own a minimum of 1 acre ofland in order to build. The parcel which consists of a whole block, owned by Ms. Berman, is defmitely a building site, however, he is not sure if the other parcels could be combined to create an acrelbuilding site. The City's health and safety standards are 3 Y, times what the State standards are. The State standards require a minimum of 12,500 square feet if it can be proven that the property will perk. As far as he knows, nobody has challenged the City, or taken them to Court over this issue. The appellants constructed a 40' gravel road with the intention of marketing the property as 4 building sites. The value of these lots was based on a 4 lot site which Ms. Berman sold in 1994 or 1995. While he believes that the new regulations will impact property values, there are no sales at this time which prove or disprove this. Discussion ensued regarding the methodology used in valuing property. After hearing the testimony of both parties, the Board concurred to conduct a physical inspection of the property and make a determination at a later date. Dorothy Cox 3441 Oak Bay Road Port Hadlock, W A 98339 BOE: 97-53-R PN: 921191025 Dorothy Cox was not present. Appraiser Peter Schuck represented the Assessor's office and was previously sworn in bv Chairman Broders. The property under appeal is located at the address listed above. The BOARD OF EQUALIZATION MEETING MINUTES - OCTOBER 14, 1997 Page 4 appellant stated in a letter that insurance companies will not insure the property due to the damaged caused by a housing development uphill from her home and the storm of December 31, 1996. She believes this significantly impacts the value of the property since nobody would purchase the property knowing that they are unable to get insurance. Ms. Cox did not provide an estimate of value, however, she would like the Board of Equalization to review the assessment. Peter Schuck stated that during the storm on December 31,1996, there was a land slide on the bluff of the appellant's property, destroying the stairs to the beach. The Assessor's office removed the $1,500 assessment for the stairs and reduced the overall land value by 2%. The house is approximately 100-150 feet from the bluff and is not affected by the land slide. Waterfront property will always slough, which is why there are setback regulations. There are areas along the straits where 1 foot of sloughing a year is predicted. Years may go by with no sloughing, and then all of a sudden a large land slide occurs. These areas almost always revegitate. While the adjustment may be subjective, Mr. Schuck believes it is fair. At the close of the hearing the Board concurred to conduct a physical inspection of the property and make a determination at a later date. Jeffrey Whitting 1653 Township Line Road Port Angeles, W A 98362 BOE: 97-54-R PN: 021321018 Mr. Whitting was not present. Appraiser Robert Kingsley represented the Assessor's office and was sworn in by Chairman Broders. The property under appeal is located at 1111 Griffiths Point Road, in Nordland. Mr. Whitting stated in a letter attached to his petition that he disagrees with the assessed value placed on his property for the following reasons: "I. The cabin on the property is listed at $16,800. This was built many years ago by a previous owner with used materials - mostly concrete forms. It is in poor condition because of faulty design, substandard materials and rot. We put on siding and a coat of paint to remove it from the local list of eyesores. An appraiser would have a repair list of several pages. Fair market value - less than $5,000; 2. Mr. Kingsley stated that our house under construction on the property would be assessed at $123,000 when complete. At 65% complete, he calculated the value at $80,000. Based on fair market value, this is unrealistic. There is no potential buyer in the market today who will pay $206,825 for this property with a house 65% completed by an owner-builder. People looking for a house to live in will not consider ours. People planning to build will want to start with their own design. The only potential buyer for this property would be a contractor or speculator who would fmish the project quickly and resell. Anyone in this category would not pay $206,825. He would expect a deep discount in the selling price to step in, invest more time, labor and dollars, hoping to sell at a profit... Mr. Whitting is requesting the Board reduce the current assessment from $206,825 ($110,000 for the land and $96,825 for the improvements) to $175,000 ($110,000 for the land and $65,000 for the improvements). Robert Kingsley presented a chart used in valuing property under construction. The appellant's property was valued based on the percentage of completion. This property also has a garage with a guest house above it, which was occupied during his visit to the site. There is also a dock on the waterfront which contributes to the value. After reviewing the appellant's information and hearing the testimony of Mr. Kingsley, the Board concurred to conduct a physical inspection of the property and make a determination at a later date. Carl Schaber 2728 Fairview E. #404 Seattle, WA 98102-3137 BOE: 97-52-LO PN: 002352010 Mr. Schaber was not present. Peter Schuck represented the Assessor's office and was sworn in by Chairman Broders. The propertY under appeal consists of approximatelv 1.2 acres with a cotta2e built in 1949. It is BOARD OF EQUALIZATION MEETING MINUTES - OCTOBER 14, 1997 Page 5 located at 691 Bachelor Road in Gardiner. The appellant wrote on his petition that "Extensive damage was inflicted on this property by the January 1997 flood and subsequent failure of the Bachelor Road county drainage ditch. Because of the government shoreline restrictions, the beach, bank and steps cannot be adequately repaired to make the property whole again. Currently two (2) large trees are ready to fall in. The lowest estimates are around $75,000 to shore up the bank, but the stairway access is being denied. In addition, the residue and stigma the property will carry could have a substantial reduction in value of up to $300,000. For example, the abutting property to the east (Copeland's) had a sale which was fmally rejected because of my slide damage," A photograph of the slide damage was also submitted. Mr. Schaber is requesting that the Board reduce the current assessment from $331,705 ($253,575 for the land and $78,130 for the improvements) to $231,705 ($153,575 for the land and $78,130 for the improvements). Peter Schuck stated that during his inspection in February of this year, he observed four (4) different slides on the property. The closest slide to the house was approximately 35 feet away. He reported that the Assessor's office removed $500 for the value of the stairs which were destroyed and reduced the value of the land by 10% due to the damage caused by the land slides. As stated during a previous hearing, waterfront will slough, but it will also revegitate. After reviewing the appellant's information and hearing the testimony of Mr. Schuck, the Board concurred to conduct a physical inspection ofthe property and make a determination at a later date. Robert Scavron P.O. Box 2671 Silver City, NM 88062 BOE: 97-51-R PN: 957 307 804 Mr. Scavron was not present. Assessor Jack Westerman was present and sworn in by Chairman Broders. The property under appeal consists of a two-story house located at 1915 Franklin Street in Port Townsend. The appellant wrote on his petition that "This is an old, wood frame home, with one bath sitting on an undersized lot (Approximately 6,000 square feet). The house needs work. Other than the roof, no improvements have been made since the 1960's. It is not insulated and has only single pane windows." He is requesting the Board reduce the current assessment from $120,665 ($42,000 for the land and $78,665 for the improvements) to $97,410 ($27,140 for the land and $70,270 for the improvements). Jack Westerman presented a map of the area listing sales of comparable properties. Most of the increases in valuation are attributable to the land rather than the improvements. After reviewing the appellant's information and hearing the testimony of Mr. Westerman, the Board concurred to conduct a physical inspection of the property and make a determination at a later date. Meeting adjourned. Attest: [;{Lk~ Y1. :i, d~/tUlA~ ErIn K. Lundgren, ~re;; of tte Board 0.' ~illiam S. Marlow, Vice-Chairman ~. / ,.,/~ 2/W'-',"' "'J //, h ;,> . 'es A. DeLeo, Member L /