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Home My WebLink AboutE&R 1990-05-01 5') c MINUTES OF CONTINUED 1990 BOARD OF EQUALIZATION AND REVIEW MAY 1, 1990 ~" 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. - 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. ~:. ARRIVAL OF COMMISSIONER BARFIELD Commissioner Barfield arrived at 10:15 o'clock AM. 53 ~ I 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 I 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. I 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 ~ 54 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 ~"', Excused: Commissioner Mathews ~ 55 I 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 I 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. I ~