E&R 1989-05-08
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MINUTES OF 1989 BOARD OF EQUALIZATION AND REVIEW
MAY 8, 1989
ASSEMBLY
The 1989 Board of Equalization and Review met on Monday, May
8, 1989, at 10:00 o'clock A.M. in the General Assembly Room of
the New Hanover County Courthouse, 24 North Third Street,
Wilmington, North Carolina.
Members present were:
Commissioner Jonathan Barfield, Sr.
Commissioner W. Albert Corbett, Jr.
Commissioner E. L. Mathews, Jr.
Commissioner Nolan O'Neal
Chairman Fred Retchin
Chairman Retchin called the meeting to order.
Tax Appraisal Supervisor, James S. Bethune, requested the
Commissioners to consider the following items when hearing tax
appeals:
1. The Tax Appraisal Department is required to appraise
property at the market value as of January 1, 1983.
By law this value cannot be changed unless an error
has occurred or misapplication of the Schedule of
Values.
2. The County's appraised value is assumed to be correct
which places the burden on the appellant to prove that
this value is not correct.
TAX APPEAL - COLONIAL PARKE APARTMENTS (FORMERLY COUNTRY CLUB
APARTMENTS) R049-15-003-006-00A AND R049-15-003-006-000
Mr. J. Scott Vincent, President of Real Estate Valuation
Consultants, presented background information on the complex
commenting on the poor maintenance of the apartments, the
mechanical error in measuring the buildings, and unheated hall
space stating based on these factors along with a record of poor
rental income, a realistic assessment for the apartment units
would be $2,943,790 instead of $3,626,470 as submitted by the Tax
Appraiser.
Tax Appraisal Supervisor Bethune commented on the purchase
price of the property by Southmark Corporation in the amount of
$3,314,000 which is more than the assessed value placed on the
property by the Tax Department. He recommended correcting the
building measurements to reflect measurements of 51' x 116' for 8
one bedroom apartments buildings, and 51' x 112' for 9 two
bedroom apartments buildings which would reduce the value by
$104,360.
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Motion: After discussion of poor management, Commissioner
Barf ield MOVED, SECONDED by Commissioner 0' Neal to reduce the
assessed value of the property by $104,360 as recommended by the
Tax Appraisal Supervisor. Upon vote, the MOTION CARRIED
UNANIMOUSLY.
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TAX APPEAL FOUNTAINHEAD APARTMENTS TAX PARCEL
R055-10-008-020-001
Mr. Andy B. Anderson, of Easley, McCaleb & Stallings, Ltd.,
presented a Pro Forma Income Statement based upon market rents
stating in view of this data, he feels the property is over
assessed and requested the Commissioners to consider adj usting
the 1989 value to $4,213,172.
Tax Appraisal Supervisor Bethune stated the assessed value
of $4,589,610 is reasonable and is supported by the income
approach to value. Although the Tax Department has been unable
to confirm the actual sales price paid for the property by the
present owners, it is obvious that the sales price was far in
excess of the assessed value; therefore, it is recommended that
the Board uphold the tax appraisal.
A lengthy discussion was held on the actual sales price of
the property. Tax Appraisal Supervisor Bethune indicated that
the owners stated the property sold for $3,915,000; however, when
investigating the sale price, there was an actual cash
transaction of $3,915,000 in addition to assuming a $1,764,107
loan for a total cost of $5,679,107. He recommended upholding
the appraised value at $4,589,610.
Motion: After discussion of the sales price, Commissioner
Corbett MOVED, SECONDED by Commissioner Mathews to uphold the
appraised value of $4,589,610 as recommended by the Tax Appraisal
Supervisor. Upon vote, the MOTION CARRIED UNANIMOUSLY.
TAX APPEAL - CORNING GLASS WORKS - R049-00-002-001-000
Tax Appraisal Supervisor Bethune stated Corning Glass Works
called Friday afternoon to request withdrawal of the appeal.
Motion: Commissioner O'Neal MOVED, SECONDED by Commissioner
Corbett to uphold the assessed value of $11,688,373 for Tax
Parcel R049-00-002-001-000 in the absence of the appellant. Upon
vote, the MOTION CARRIED UNANIMOUSLY.
TAX APPEAL - FRANK A. INCERTO - R054-11-008-008-000
Tax Appraisal Supervisor Bethune stated Mr. Incerto is not
present; however, he has agreed to a 10% reduction on the
building for deterioration reducing the value to $99,940 for a
total appraised value of $150,500.
Motion: Commissioner Mathews MOVED, SECONDED by Commissioner -,
O'Neal to accept the appraised value of $150,500 as recommended
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by the Tax Appraisal Supervisor. Upon vote, the MOTION CARRIED
UNANIMOUSLY.
TAX APPEAL - SHH ASSOCIATES - R047-20-006-004-00
Mr. John Hicks, representing SHH Associates, stated the
third floor of the SHH property located at 228 North Front Street
was renovated last year with the 1989 appraised value of the
property being twice the amount of money expended for the
renovation. He presented a list of tax valuations for
surrounding buildings, which have been renovated, and requested
the Commissioners to consider the value of adjacent buildings and
reduce the appraised value of $341,570 to $181,710.
A lengthy discussion was held on surrounding buildings and
appraised values in comparison to floor space. Tax Appraisal
Supervisor Bethune stated in view of the extensive renovation
made by the property owners the appraised value of $341,570
reflects the market value of the property. He commented on
adjacent buildings, particularly, the John Talbert Building,
stating the appraisal does seem to be low and that the Appraisal
Department will review permits for the renovation of this
building to see if the value should be reappraised.
Motion: After discussion of the appraisal in comparison to
adjacent buildings, Commissioner Mathews MOVED to reduce the
appraised value to $181,170 as requested by Mr. Hicks. The
MOTION FAILED DUE TO NOT RECEIVING A SECOND.
Motion: After further discussion, Commissioner Corbett MOVED,
SECONDED by Commissioner Barfield to reduce the appraised value
of the property to $265,000. Upon vote, the MOTION CARRIED AS
FOLLOWS:
voting Aye: Commissioner Barfield
Commissioner Corbett
Vice-Chairman O'Neal
Chairman Retchin
Voting Nay: Commissioner Mathews
ADJOURNMENT
Commissioner Corbett MOVED, SECONDED by Vice-Chairman O'Neal
to adjourn. Upon vote, the MOTION CARRIED UNANIMOUSLY.
Chairman Retchin adjourned the meeting at 11:35 o'clock A.M.
c!fe ectfully submitted,
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L ie F. Harrell
Clerk
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