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HomeMy WebLinkAboutM020999 Jefferson County Board of Equalization TELEPHONE: 385.9100 COURTHOUSE P.O. BOX 1220 PORT TOWNSEND, WASHINGTON 98368 r'C~'< :~."S ~ .~' ., ~r . ,~...:(.v j f~~,-;,~,~~'-,".(<:Iifi' '.' ':~"~ .' /j2~:-f , _:.-' i'ltl J~') ,,' Jt,Vi'. '--, ',' l.J y.:<j. ~iP>' .., ,,#I 'II'. >.,< :. \' ~ /' ",:",;., .1..' '~f.'IiIr'M"'" /e'r ~- '\'. 'fo.. .li'-' ,- ..~ ,~:~<'~, ,.:'",;:' ,~c ',-- ,t'-~_:;,:':~:'_ ':~":...~.~~j, :I,'f: _ ~,J',~,",," ',' ,~'" -,'.c" Ci"llh'""~i"~'~'-' -... .... .,.4~: '. k:l +?i~ I' '0<" 'I"~ I ",,'r:"::,&~llll ,,'~..-4 ' . _",f;,~ c, ~~.."~~~-'-- _.,~ ~2Q. '. "'~"'O _ _ - '------"'- ........................_---~~~--- JEFFERSON COUNTY BOARD OF EQUALIZATION MINUTES FEBRUARY 9, 1999 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 THE MINUTES Vice-Chairman Marlow moved to approve the minutes of November 17, 18, and 24, 1998 as presented, Member DeLeo seconded the motion which carried by a unanimous vote, PETITION WITHDRAWAL Vice-Chairman Marlow moved to accept the Port Townsend Paper Corporation's withdrawal of their petition, BOE 98-43-C, various parcels, Member DeLeo seconded the motion which carried by a unanimous vote, REQUEST FOR RECONVENING Jeffrey Wysong of Deepwater Investments submitted a "Request for Reconvening" based on the condition being met pursuant to WAC 458-14-127 RECONVENED BOARDS-AUTHORITY (1)( c) which states Boards of Equalization may reconvene on their own authority to hear requests or appeals concerning the current assessment year when the request or appeal is filed with the Board by April 30 of the tax year immediately following the Board's regularly convened session and when a bona fide purchaser or contract buyer of record has acquired an interest in real property subsequent to the first day of July and on or before December 31 of the assessment year and the sale price was less than ninety percent of the assessed value, Vice-Chairman Marlow moved to approve the reconvening request Member DeLeo seconded the motion which carried by a unanimous vote, The hearing is scheduled for today, February 9, 1999 at 10:00 a.m, n '-" 100% Recycled Paper BOARD OF EQUALIZATION MINUTES - FEBRUARY 9,1999 Page 2 1998 RECONVENING Jeffrey Wysong BOE: 98-51-C Deepwater Investments - Admiralty Apartments c/o Kidder, Mathews, Segner 601 Union Street - Suite #4720 Seattle, WA 98101-2355 PN: 989 700 901 Mr. Wysong was present Assessor Jack Westerman and Appraiser Robert Shold were also present Chairman Broders explained the hearing process and swore them in, The property under appeal is the Admiralty apartments located downtown Port Townsend. Mr. Wysong stated that the assessed value should be closer to what he paid for the property, Deepwater Investments purchased the property in December of 1998 for $700,000 and the current assessment is $1,405,880, He explained that the purchase price was partly based on the net operating income of $66,000, Properties in outlying areas of Port Townsend are difficult to sell due to economic conditions, The value agreed upon was $626,000 which is a 10 1/2% cap rate for the property, The 10 1/2% cap rate is the rate of return for the risk of the investment Considering the risk of the investment in this area due to the stagnant economy, he believes they paid more than the property is actually worth, but did so because they liked the property, Deepwater Investments is requesting the Board reduce the current assessment to $700,000, Mr, Westerman stated that he assumes the Board will want documentation of the net operating income of $66,000, Mr, Wysong stated he will provide documentation to the Board for review. Mr. Westerman stated that he believes part of the reason this property sold for $700,000 is the fact that it is enrolled in a federal subsidy program controlled by H.U,D, making it difficult to respond to market rents as quickly as if it were owned fee simple and outright without any encumbrances, Mr. Wysong stated that is partly true, It would be a factor in markets where the subsidized rents are lower than market value, However, in this area, the subsidized rents are at market value, Most of the apartment buildings in this area are Section 8 low income subsidized units, He stated that even if the building was not government subsidized, the value would not change because they would not be able to get any more income and the expenses would be about the same, Mr. Westerman asked if an appraisal of the property was done at the time of purchase? Mr. Wysong replied yes, Mr. Westerman stated that the Board will probably want a copy of it Mr, Westerman wants to be assured that this was a bonafide arms-length transaction, which can be partly shown by documentation of advertising on the open market The Assessor's staff never saw any local listings for this property, however, it may have been advertised in a larger arena, The Board may want some reasonable evidence of advertising as well. He believes that once the Board has all the documentation from Mr, Wysong they will be able to make an informed decision, He requested that if the Board decides to reduce the property value, that they make an adjustment only to the improvement value, so as to maintain equity among land values in the surrounding area, BOARD OF EQUALIZATION MINUTES - FEBRUARY 9, 1999 Page 3 Discussion ensued regarding the marketing of the property, In answer to a question from Vice-Chairman Marlow, Mr, Wysong stated that the building is under contract with HUD to operate in the subsidy program until the year 2013, The contract is reviewed and renewed annually and may be terminated by the property owner, however, it is extremely difficult to do. After reviewing all the information submitted and hearing the testimony of both parties, the Board concurred to conduct an inspection of the property and make a determination at a later date. Meeting adjourned, ~est: t~l 0{. / f 1-^--.-' rinK Lundgren, ~t~ JEFFERSON COUNTY ~~ARH OF EQ.. U. ALIZATION '~A.5~ Richard A Broders, Chairman f William S, Marlow, Vice-Chairman ~ A:~:i:/~~mber