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JEFFERSON COUNTY BOARD OF EQUALIZATION
MINUTES
AUGUST 7, 1997
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
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.
HEARINGS
William & Madelynn Castle
82 Sea Vista Terrace
Port Ludlow, W A 98365
BOE: 97-08-R
PN: 998 700 048
Mr. Castle and Assessor Jack Westerman were present. After explaining the hearing process,
Chairman Broders swore them in. The property under appeal is located in Teal Lake Village in
Port Ludlow, at the address listed above. Mr. Castle stated that they purchased the property in
December of 1996 for $273,000, which is also supported by an appraisal done at the same time.
The current assessed valuation is $296,070. They believe the actual value of the property is
closer to the amount that they paid for it. They are requesting the Board reduce the current
assessment from $296,070 ($106,000 for the land and $190,070 for the improvements) to
$265,000 ($75,000 for the land and $ J 90,000 for the improvements).
Jack Westerman stated that he previously discussed with the Board the issue relating to property
valuations decreasing in the area of Teal Lake (see Minutes of March 10, 1997 and April 2,
1997-Wheeler Hearing). He presented a map of the properties in this area and explained that
they were valued as of January 1,1995 in a four year revaluation cycle. Normally, the Assessor's
office would stand by the sales leading up to the January 1, 1995 assessment date which support
the current assessment. However, due to the unique situation of property valuations significantly
decreasing only in the area of Teal Lake, they are requesting the Board reduce the valuation of
the Castle's property and equalize other parcels located in Teal Lake in order to maintain equity.
This request is also based on the fact that in 1995 the Board of Equalization sustained the
Assessor on an appeal from a property owner in Teal Lake Village.
Phone (360)385-9100/1-800-831-2678 Fax (360)385-9382 jeffbocc@ico.jefferson.wa.us
BOARD OF EQUALIZATION MINUTES - AUGUST 7, 1997
Page 2
The property owner appealed the Board of Equalization's determination to the State Board of
Tax Appeals which does not review appeals based on equity and appraisal dates, but rather on all
available sales information, including those sales which occur after the appraisal dates. The State
overturned the County's decision and reduced the value of the property, creating an inequity
among property values in the area. The State reviews appeals using a different set of guidelines
than those required for Counties. Rather than requiring property owners to go through the entire
appeal process, the Assessor revalued the entire area based on the market as of January I, 1997 to
insure equity. A worksheet outlining the Assessor's recommended changes in assessments was
prepared. Each parcel is different, resulting in different value changes. Out of all the parcels
being recommended for equalization, only one will increase in value, although some may
increase with the addition of new construction values.
After reviewing all the information submitted and hearing the testimony of both parties, the
Board agreed that a physical inspection of the property is not necessary as they are all familiar
with the area, and the period of time for which the Board can equalize property on their own
authority without having to request a reconvening from the State Department of Revenue, is
running out. The Board will review the figures presented by the Assessor's office and make a
determination a later date.
T. Howard Peters
80 Parkwood Blvd.
Sequim, WA 98382
BOE: 97-22-LO
PN: 976800031
Mr. and Mrs. Peters were present and their son Jeff Peters was also present on their behalf.
Appraiser Robert Kingsley represented the Assessor's office. Chairman Broders explained the
hearing process and swore them in. The property under appeal is a waterfront parcel on Oak Bay
in Port Ludlow. Jeff Peters stated that they were unable to find any comparable property sales,
making it difficult to come up with a value for the property. Their property is unbuildable due to
the soil conditions which will not sustain an acceptable septic system.
T. Howard Peters stated that they have owned this property for more than thirty years, hoping to
develop it for their own personal use at some point in the future. Since the property is
unbuildable, there is no future in their plans to make the property their home. Subsequently, they
moved to Sequim.
Jeff Peters stated that they hired an assayer in February to value their forest land and they just
recently received the appraisal. The process of getting a true appraisal is time consuming, but he
feels that one is needed in this case. He was quoted a minimum of 3 months to get an appraisal,
although there are many unknown factors to deal with such as G.M.A. and changes in zoning
regulations.
The appellants are requesting the Board reduce the current land assessment from $42,160 to
$5,000.
Robert Kingsley explained that Mr. Peters provided the Assessor's office with evidence that the
property did not perk, so the assessment was reduced by 50% which is standard procedure for
parcels with septic denials. The new valuation of $42,160 is still not acceptable to Mr. Peters,
BOARD OF EQUALIZATION MINUTES - AUGUST 7, 1997
Page 3
since the property doesn't perk. He noted that a parcel ofland adjacent to the Peters' property
was for sale for $135,000. An individual was in the process of buying the property, until it was
discovered that the parcel did not perk and is unbuildable due to the wetland and the sale fell
through. Mr. Kingsley agrees that the valuation may be high, however without comparable sales,
he does not know how much of an adjustment should be made to reach market value. While he
believes the property, as just a recreational site, is worth less than $42,160, he also believes that
it is worth more than the appellant's estimated value of$5,OOO.
T. Howard Peters stated that there are very stringent controls around the vegetation on this
property preventing access to the beach or use of the property as a recreational site. Mr.
Kingsley stated that without documented evidence of the restrictions, the Assessor's office is
unable to make a further adjustment to the value.
Jeff Peters explained that 15-20 years ago the owner of a parcel located two lots to the north of
the Peters' property, wanted to build a house, so in order to stop the flow of water over their
property, they built a dam which caused the water to back up onto the lots south of it including
the Peters' property, creating a wetland. He stated that this so-called wetland makes 200' of the
waterfront portion of their property unusable. When the owners (James and Nancy Nuerenberg)
ofthe property adjacent to the Peters' property began building a house, the Department of
Ecology and Shorelines Management got involved as a result of another neighbor complaining
that the house was being built too close to the wetland. The Department of Ecology made the
determination that the property along the shoreline is a "Class II wetland" based on the
vegetation that was found there. As a result of the Department of Ecology's determination, the
Peters are not allowed to disturb the vegetation and therefore are unable to access their property
or their tidelands.
Vice-Chairman Marlow asked ifthe Peters' have documentation which supports their
statements? Jeff Peters replied that this information came out of the Nuerenberg case. He went
to every hearing which took place regarding this issue. The Nuerenberg's were required to
rebuild and replant the wetland area that was disturbed when they built their house. He stated
that at one point he wanted to cut a path down to the beach, but he did not dare do it as the same
neighbor who complained to the Department of Ecology about the Nuerenberg's project may
complain about him as well.
After reviewing all the information submitted and 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.
Kenneth & Grace Easterbrook
134 Crestview Drive
Port Ludlow, WA 98365
BOE: 97-19-R
PN: 998 700 005
Mr. & Mrs. Easterbrook were present. Operations Manager Jeff Chapman represented the
Assessor's office. After explaining the hearing process, Chairman Broders swore them in. The
property under appeal is located in Teal Lake Village in Port Ludlow, at the address listed above.
Mr. Easterbrook stated that the current assessment of the property is $203,080 ($48,000 for the
land and $155,080 for the improvements). They purchased the property in August of 1996 for
BOARD OF EQUALIZATION MINUTES - AUGUST 7, 1997
Page 4
$185,000. He stated that they are requesting the Board reduce the valuation to $179,000 based
on the fact that land values in Teal Lake Village have significantly decreased over the last three
or four years, and the purchase price was substantially lower than the current assessment. He
added that their house, like many others in the area, has Louisiana Pacific (L.P.) siding which is
failing. While there is a warranty, it is only good for 7 years and is prorated over that time. As
time goes on, they may get some compensation from the warranty, but they will not be fully
reimbursed. The stigma of this siding alone, devalues the property, even with a warranty. In a
letter received from the Assessor's office they agree that the valuation is too high and are
recommending a reduction to $182,105. He noted that there is a discrepancy between the square
footage on the builder's specifications and the square footage in the Assessor's records. Based
on the factors stated above they feel a reduction in the current assessment is warranted.
Jeff Chapman stated that he was not aware ofthe square footage differences. The appraisers
usually measure the outside footprint of the house to come up with the square footage. He
continued by stating that the area of Teal Lake has been discussed during other appeal hearings
(see Castle Hearing above, and Minutes of March 10,1997 and April 2, I 997-Wheeler Hearing).
He explained that the property in the area was revalued in January 1995. Jefferson County is on
a four year revaluation cycle, which means that property is valued once every four years and is
locked into that value for four years, with the exception of new construction, which is valued as
it is completed. The values established in 1995 were based on the most recent sales which had
occurred in the area. Since 1995, sales have shown that property values have significantly
decreased in Teal Lake Village. In looking at all the resales in Port Ludlow, it appears that the
market decrease is isolated to this area. This is largely due to problems with the Louisiana
Pacific siding as well as the additional building of houses by Pope Resources which seems to
have changed the nature and desirability of the area. In addition, in 1996 a property owner
appealed the Board of Equalization's determination to the State Board of Tax Appeals which
uses a different set of guidelines for reviewing property values than those used by the County
Board of Equalization. The State significantly reduced the property value based on sales which
occurred after the January I, 1995 assessment date. This concerned the Assessor's office as it
created an inequity among property values in the area, which is why they are recommending a
reduction in value for this parcel as well as the equalization of various parcels in Teal Lake
Village.
After reviewing all the information submitted and hearing the testimony of both parties, the
Board agreed that a physical inspection of the property will not be necessary as they are familiar
with the area and the deadline is near for the Board to equalize property on its own authority
without requesting to be reconvened by the State Department of Revenue. The Board will
review the figures presented by the Assessor and make a determination at a later date.
John & Ruth Eubank
18818 - 94th Avenue W.
Edmonds, W A 98020
BOE: 97-24-LO
PN: 990 900 003
Mr. and Mrs. Eubank were present. Appraiser Dennis Pownall represented the Assessor's office.
After explaining the hearing process, Chairman Broders swore them in. The property under
appeal is located at 3 Montgomery Court, Port Ludlow. Mrs. Eubank stated that during this last
revaluation their property increased in value from $63,000 to $103,500. She presented and
BOARD OF EQUALIZATION MINUTES - AUGUST 7, 1997
Page 5
discussed sales of property which they believe are comparable to their property. They are
requesting the value of the land be reduced to $70,000.
Dennis Pownall presented a map outlining the comparable sales used to value the property. He
also marked on the map, the sales presented by the appellant which he does not believe are
comparable. After a brief discussion of the sales, he suggested the Board conduct a physical
inspection of the comparable properties submitted by both he and the appellant.
Mrs. Eubank added that their property is undeveloped land which does not have any utilities. Mr.
Pownall responded that the property is not assessed as having utilities.
After reviewing all the information submitted and 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.
Meeting adjourned.
Attest:
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Erin K. Lundgren, Clerk of the Board
JEFFERSON COUNTY
BOARD OF EQUALIZATION
~~
Richard A. Broders, Chairman
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William S. Marlow, Vice-Chairman
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cresP... DeLeo, Member