E&R 1990-05-01
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MINUTES OF CONTINUED 1990 BOARD OF EQUALIZATION AND REVIEW
MAY 1, 1990
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ASSEMBLY
The 1990 Board of Equalization and Review met on
Tuesday, May 1, 1990, at 10:10 o'clock A.M. in the Fifth
Floor Conference Room of the County Administration Building,
320 Chestnut Street, Wilmington, North Carolina.
Members present were:
Commissioner E. L. Mathews, Jr.
Commissioner Nolan O'Neal
Chairman Fred Retchin
Chairman Retchin called the meeting to order.
TAX APPEAL CHARLES G. AND CRISTINE E. DIXON
R06607-011-001-000 (Lot 12, Section 1 of Woodberry Forest)
Mr. Charles G. Dixon presented background information
on his property, stating the information on actual square
footage heated area is not accurate because of the computer
system used to establish the guidelines is incorrect. He
stated the tax record shows 576 square feet over the garage,
while the actual heated square footage is 286. Mr. Dixon
explained that several houses in his neighborhood sold for
more than his house, however his house is valued eleven
percent higher. He stated the main problem with the system
is that the square footage in two story houses in his
neighborhood are understated and the one story houses are
overstated, which is not fair and equitable treatment of
taxpayers.
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Tax Appraisal Supervisor, James S. Bethune, stated that
the value of his property as sold is $124,000 with a tax
assessment of $108,000. This issue has alerted the tax
appraisers to the fact that in the Woodberry Forest area,
actual sales do not support lower rates assigned by the
Schedule of Values for two story dwellings. Savings in cost
of materials and labor for the reduced size of the
foundation, roof structure and cover normally support lower
rates per square foot. Mr. Bethune stated close attention
would be given in developing the Schedule of Values for the
1991 Revaluation.
Mr. Bethune stated he feels the cost approach is
correct and reasonable and Mr. Dixon is being charged
equitably compared with the other one story ranch houses in
his area and a justification for reducing the assessment
cannot be found.
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ARRIVAL OF COMMISSIONER BARFIELD
Commissioner Barfield arrived at 10:15 o'clock AM.
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CONTINUED APPEAL - CHARLES G. AND CRISTlNE E. DIXON
Chairman Retchin requested the Tax Appraisers to check
some of the values listed by Mr. Dixon in the Woodberry
Forest area to see if there are errors in the system.
ARRIVAL OF VICE CHAIRMAN CORBETT
Commissioner Corbett arrived at 10:55 o'clock A.M.
After discussion of the cost per square foot,
Commissioner Barfield stated that he thought the appraisal
and assessment is fair.
Commissioner O'Neal MOVED, SECONDED by Chairman Retchin
to uphold the appraised value of $108,700 as recommended by
the Tax Appraisal Supervisor. Upon vote, the MOTION CARRIED
AS FOLLOWS:
Voting Aye: Commissioner Mathews
Commissioner O'Neal
Chairman Retchin
Abstaining: Commissioner Barfield
Vice Chairman Corbett
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TAX APPEAL MALIBU WILMINGTON, INC. TAX PARCEL
R05509-010-013-000 and R05509-010-013-001 (Palms Apartments
on Wilshire Boulevard)
Mr. Terry Hughes, Tax Representative for Malibu
Wilmington, Inc. explained that he tried to arrive at the
value through the income approach to the value, using the
actual income from 1988 to 1990 and the evaluation arrived
at was $2,040,000 for 1989, and $1,592,000 for 1990 value
was at 1,310,000 based on 67 percent occupied at present.
Malibu Wilmington, Inc. concluded that the discount cash
flow basis would give more than what an investor would pay
for the property and came up with a value of $2,085,790.
Commissioner Barfield stated that Malibu Wilmington
would receive tax credits for the capital improvements. He
emphasized that the occupancy rate is determined by the
quality of management of the complex.
Mr. Hughes admitted to not having visited the property
under appeal. Mr. Register explained that without visiting
the property, Mr. Hughes was stating as fact things that
were not from his own knowledge, and that it would be
difficult to make a professional appraisal by looking and
comparing with comparable properties.
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Tax Appraisal Supervisor Bethune stated that the Tax
appraisal is correct. He noted that Mr. Hughes showed
173,000 square feet however, the appraiser's measurements
showed over 200,000 square feet in the building, that the
cost approach is flawed and the income approach to value is
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typically incorrect. The typical vacancy rate is 5 percent,
not 10 percent and the normal operating costs are 45 percent __,
instead of 62 percent. Also, in computing an income approach
to value one should look at the markets to compare a well
operated comparable property to provide for income and
expenses and base the appraisal on that, not on actual
figures from the subject property. The Malibu Wilmington's
income approach value does not have credence. There is no
market from which to obtain actual sales and Mr. Hughes has
not shown the appraisal as incorrect. Therefore, he
recommended a total assessed value of $2,841.290.
Vice Chairman Corbett MOVED, SECONDED by Commissioner
Mathews to uphold the appraised value of $1,471,110 for Tax
parcel R05509-010-013-000 and $1,370,180 for parcel
R05509-010-013-001 as recommended by the Tax Appraisal
Supervisor. Upon vote, the MOTION CARRIED UNANIMOUSLY.
COMMISSIONER MATHEWS EXCUSED FROM MEETING
Commissioner Mathews requested to be excused from the
rest of the meeting since he represents the Realtor having
contracts on the property in the remainder of appeals to be
heard. Commissioner Barfield MOVED, SECONDED by Vice
Chairman Corbett to excuse Commissioner Mathews from the
remainder of the meeting. Upon vote the MOTION CARRIED
UNANIMOUSLY.
TAX APPEAL WILMINGTON HOLDING CORPORATION PARCEL
*R04720-010-011-000 - 23 North Front Street
Tax Administrator Register gave a general description
of the property located at 23 North Front Street known as
The Iron Front Building. The property is owned by
Wilmington Holding Corporation, is currently offered for
sale by Harbor Associates at $425,000 compared to the tax
assessment of $301,240.
Mr. Terry Hughes, Property Tax Representative for
Marvin F. Poer & Company, cited varying statistics and
values. He stated that the Discount Cash Flow Analysis
indicates a value of $277,119 and by subtracting rent losses
due to present vacancies, the value indicated is $2,219,150.
The realtor has not had any offers for the property to date.
Commissioner Barfield MOVED, SECONDED by Vice Chairman
Corbett to uphold the appraised value of $301,240 for Parcel
#R04720-010-011-000 as recommended by the Tax Appraisal
Supervisor. Upon vote, the MOTION CARRIED AS FOLLOWS:
Voting Aye:
Commissioner Barfield
Commissioner O'Neal
Vice Chairman Corbett
Chairman Retchin
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Excused:
Commissioner Mathews
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TAX APPEAL WILMINGTON HOLDING CORPORATION PARCEL
#RO-4720-010-010-000 AND R04720-010-010-001 (21 North Front
Street)
Mr. Terry Hughes, Tax Representative for Wilmington
Holding Corporation, stated he has an offer to purchase
contract for sale of the property for $200,000.
Tax Appraisal Supervisor stated that the offer to
purchase has no earnest money deposit, which does not
represent a valid contract. He stated that the assessed
combined value was reduced from $402,620 to $250,000 since
the January 1, 1983 revaluation due to the excessive
functional and obsolescent depreciation and rapid
deterioration which occurred after the former tenants
vacated.
Commissioner Barfield MOVED, SECONDED by Chairman
Retchin to uphold the 1990 assessed value of $250,000 for
Parcel #R04720-010-010-000 and R04720-010-010-001 as
recommended by the Tax Appraisal Supervisor. Upon vote the
MOTION CARRIED AS FOLLOWS:
Voting Aye:
Commissioner Barfield
Commissioner O'Neal
Vice Chairman Corbett
Chairman Retchin
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Excused:
Commissioner Mathews
ADJOURNMENT
Vice Chairman Corbett MOVED, SECONDED by Commissioner
Barfield to adjourn. Upon vote, the MOTION CARRIED.
Chairman Retchin adjourned the meeting at 11:30 o'clock
A.M.
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