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Home My WebLink AboutE&R 1989-05-08 I I I 47 ~ 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. ~ 48 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. ~\ 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 I I I ~f -., 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, .~#~ L ie F. Harrell Clerk .....1