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HomeMy WebLinkAboutE&R 1999-06-21 I I I l73~ MINUTES OF BOARD OF EQUALIZATION AND REVIEW, JUNE 21, 1999 ASSEMBLY The 1999 New Hanover County Board of Equalization and Review met on Monday, June 21, 1999, at 1:00 p.m. in the Meeting Room of the New Hanover County Library, 201 Chestnut Street, Wilmington, North Carolina. The purpose of the meeting was to hear appeals filed by property owners regarding their tax value assessments. Members present were: Commissioners Buzz Birzenieks, Ted Davis, Jr., Charles R. Howell; Vice-Chairman Robert G. Greer; Chairman William A. Caster; Tax Administrator Robert Glasgow; Tax Appraisal Supervisor Jim Bethune; Assistant County Attorney Kemp Burpeau; and Deputy Clerk Teresa P. Elmore. Chairman Caster called the meeting to order and welcomed everyone present. Clerk to the Board, Lucie F. Harrell, administered the Oath of Office to newly elected Commissioners William A. Caster and Robert G. Greer. Appellants were informed that the Board would make decisions following the hearings and notification of each decision would be mailed within a week. ASSESSED VALUES REDUCED Tax Administrator Robert Glasgow reported several appellants have met with the Tax Appraisal Staff and based on these discussions the appellants have concurred with the proposed reductions in values. He recommended that the Board approve the reductions in the assessed values for those appeals. Motion: Vice-Chairman Greer MOVED, SECONDED by Commissioner Birzenieks, to reduce the assessed values on the properties which the Tax Department has reached an agreement with the appellants. Upon vote, the MOTION CARRIED UNANIMOUSLY. The Board of Equalization and Review reduced the assessed value on the following appeals: TAX APPEAL - PPVC LLC, 1964 SEVENTEENTH STREET, WILMINGTON, NC, TAX MAP NUMBER R06007-003-002-002 Tax Administrator Robert Glasgow reported that the appellant's tax representative, Mr. Jacob Tanzy of Robert D. Rash and Associates, has agreed with the recommended reduction of the assessed value from $693,517 to $663,445. The reduction was based on an adjustment to the quality grade and increasing depreciation to the eight year old building. The land value was changed to reflect the market value of $424,570. ~ 174 MINUTES OF BOARD OF EQUALIZATION AND REVIEW, JUNE 21, 1999 TAX APPEAL - DOROTHY FOUNTAIN, ETAL, 429 SOUTH COLLEGE ROAD, WILMINGTON, NC, TAX MAP NUMBER R05508-005-014-000 Tax Administrator Robert Glasgow reported that the appellant's tax representative, Mr. Jacob Tanzy of Robert D. Rash and Associates, has agreed with the recommended reduction of the assessed value from $844,979 to $786,881. The reduction was based on an adjustment to the quality grade and land value. TAX APPEAL-BAY FOODS, INC., 6328 OLEANDER DRIVE, WILMINGTON,NC, TAX MAP NUMBER R05620-004-003-007 Tax Administrator Robert Glasgow reported that the appellant's tax representative, Mr. Jacob Tanzy of Robert D. Rash and Associates, has agreed with the recommended reduction of the assessed value from $617,958 to $592,009. The reduction was based on correcting the building condition, quality grade and structure type. TAX APPEAL - ALEXANDER AND LOSSIE G. GARDELL, 6711 OLEANDER DRIVE, WILMINGTON, NC, TAX MAP NUMBER R05616-005-003-000, R05616-005-004-000, R05616-005-005-000 Tax Administrator Robert Glasgow reported that the appellant, Alexander Gardell, has agreed with the recommended reduction in the assessed value for lot 5 from $36,000 to $18,000 and to uphold the values of lots 3 and 4 at $78,246 and $36,000 respectively. The reduction in the land value was based on the vacant lot containing 12,742 square feet for the R-15 zoned property. TAX APPEAL - BRUCE B. CAMERON, TRUSTEE, 1423 SOUTH THIRD STREET, WILMINGTON, NC, TAX MAP NUMBER R05417-002-004-000 Tax Administrator Robert Glasgow reported that the appellant provided a signed contract for sale on the property in the amount of $125,000, and felt that the assessed value should be no more than the selling price. Based on the location of the property and the arms-length sale, Mr. Glasgow recommended to reduce the value of the property from $247,899 to $124,854. TAX APPEAL - ELIZABETH H. CAMERON, 552 BEACH ROAD NORTH, FIGURE 8 ISLAND, WILMINGTON, NC, TAX MAP NUMBER R03811-002-031-000 Tax Administrator Robert Glasgow reported that the property owner, Elizabeth H. Cameron, provided information that the lot was not large enough to build upon because of CAMA's setback requirements. He recommended to reduce the assessed value from $200,000 to $100,00 for as long as the condition remains on the property. TAX APPEAL - BATE LAND COMPANY, LP, 5 COWRIE LANE, WRIGHTSVILLE BEACH, NC, TAX MAP NUMBER R05809-002-029-000 Tax Administrator Robert Glasgow reported that the Tax Appraisal Department visited the site and felt an additional adjustment was needed for the thirty-year-old beach home. The I I I '1.75~ MINUTES OF BOARD OF EQUALIZATION AND REVIEW, JUNE 21, 1999 appellant's representative, Dennis W. Miller, agreed with the reduction in the assessed value from $583,798 to $538,863, which was based on reducing the quality grade and increasing depreciation. TAX APPEAL - AGNES MORTON MEYER WOODRUFF, 6402 QUAIL RUN, WILMINGTON, NC, TAX MAP NUMBER R06700-003-007-001 Tax Administrator Robert Glasgow reported that the appellant, Agnes Morton Meyer Woodruff, had agreed to a 25% reduction in the assessed value based on the presence of wetlands on the property. He recommended to reduce the value from $261,997 to $196,498. TAX APPEAL - JAMES DAVID AND JANICE POWELL, 407 SUMMER REST ROAD, WILMINGTON, NC, TAX MAP NUMBER R05710-002-021-000 Tax Administrator Robert Glasgow reported that the property owner, James D. Powell, provided a MAl appraisal report for his property in the amount of $700,000 and requested that his assessed value be reduced to that amount. Mr. Glasgow recommended that the value of the land be reduced to $621,510, which would make the assessed value of the property to be $700,567. TAX APPEAL PRESENTATIONS TAX APPEAL - DANIEL AND TINA JACOBS FLOHR, 8 CEDAR ISLAND, WILMINGTON, NC, TAX MAP NUMBER R06700-003-003-009 Mr. Daniel Flohr, property owner of 8 Cedar Island, was sworn in to give testimony on his appeal. Mr. Flohr spoke on the impact of the over-built housing market and the City of Wilmington' s annexation plan on property values in New Hanover County. Property owners in the newly annexed areas will see significant increases in their tax bills. He disagreed with the $700,000 assessment on his one-acre lot and felt that the Tax Department used the $700,000 amount because Mr. John Isley had purchased a vacant lot on Cedar Island in 1998 for $700,000. He stated that the recent market conditions have forced the Tax Department to reduce the valuations on properties in the Landfall area and that they should reduce his property value also. The value of his lot on a tidal creek should not be the same as the lots on the Intracoastal Waterway. Furthermore, he argued that his house should not receive an additional special architecture adjustment since it was assigned the highest quality grade of200, which means above excellent. Since the house does not have any extraordinary design elements, he felt that no additional adjustment should apply. If special architecture adjustments are used to make the appraisal, then specific guidelines, training and accountability should be required. He could not estimate the value of his home, because no recent home sales have occurred in the neighborhood. Appraisal Supervisor Jim Bethune stated that through the informal appeal procedure, the value of the property was reduced from $1,970,278 to $1,464,301. He felt the assessed value j 176 MINUTES OF BOARD OF EQUALIZATION AND REVIEW, JUNE 21, 1999 represented the low end of a probable market value which was supported by comparable sales in similar neighborhoods. Comparable sales of unimproved lots also supported the land value assigned to the home site. The architectural adjustment is based on the appraiser' judgement on the quality of architectural cuts, multi-flooring, and built-in moldings of the structure. Motion: At the conclusion of the hearings on this date, Vice Chairman Greer MOVED, SECONDED by Commissioner Birzenieks, to affirm the assessed value of $1,464,301, which included the boathouse dock and pier previously omitted from the property listing. Upon vote, the MOTION CARRIED UNANIMOUSLY. TAX APPEAL- SABRAA. STEPHENS,ETAL,613 V ARSITYDRIVE, WILMINGTON,NC, TAX MAP NUMBER R05511-001-012-000 Ms. Sabra A. Stephens, property owner of 613 Varsity Drive, was sworn in to give testimony. Ms. Stephens spoke concerning the problem of a 70% failure rate on the Louisiana Pacific siding on houses in her neighborhood. The homeowners have a class-action lawsuit against the manufacturing company because of damaging deterioration. Although she is not having a problem with her siding at this time, the stigma of the problem is affecting the value of her home. She asked that the assessed value of her home be reduced by $7,000, which is the approximate cost to replace the existing siding. Tax Appraisal Supervisor Jim Bethune reported that the appellant had not furnished any documentation to show that the exterior covering of her home was defective. Additionally, Ms. Stephens would be compensated to make any needed repairs, if the class-action suit against the manufacturer is successful. In any event, the assessed value of$75,082 is supported by comparable sales of homes in the community. Motion: At the conclusion of the hearings on this date, Commissioner Birzenieks MOVED, SECONDED by Commissioner Howell, to uphold the assessed value of $75,082, as recommended by the Tax Appraisal Supervisor. Upon vote, the MOTION CARRIED UNANIMOUSLY. TAX APPEAL - WILLOW POND LIMITED PARTNERSHIP, FROG POND PLACE, WILMINGTON, NC, TAX MAP NUMBER R04917-007-003-000, R04917-007-004-000, R04917-007-00S-000, R04917-007-006-000, R04917-007-007-000, R04917-007-008-000, R04917-007-009-000, R04917-007-010-000, R04917-007-011-000, R04917-007-012-000, R04917-007-013-000, R04917-007-014-000 Mr. John Wessell, the attorney representing Willow Pond Limited Partnership, and Bob Lucas, administrator for Wilmington Housing Finance and Development (WHFD), were sworn in to give testimony. I I I 17~ ~ -., f MINUTES OF BOARD OF EQUALIZATION AND REVIEW, JUNE 21, 1999 Tax Administrator Robert Glasgow reported that the tax assessment on the apartment complex was reduced from $2,614,864 to $2,196,133, based on the appellant's appraisal using market rents. Mr. Wessell stated that the appraisal, using the income approach to value, showed that the value was $775,000. He asked the Board to reduce the assessed value to a value between $775,000 and $2,196,133. Mr. Wessell explained that tax credits for low income housing were used to finance the construction ofthe Willow Pond project The North Carolina Housing Finance Agency, a quasi-State agency, sells tax credits to investors or to the NC Equity Fund for loans at low interest rates. To take advantage of the funding, the Willow Pond Limited partnership agreed to place caps on rental rates. WHFD, a general partner in the limited partnership, manages the Willow Pond apartments. Although the apartments are not Section 8 housing, rent payments are significantly lower than normal Section 8 rental. A three-bedroom Section 8 apartment rents for $823, while Willow Ponds rents for $338. Mr. Lucas explained that WHFD, a 5013C non-profit corporation, manages Willow Pond under general property tax exempt regulations. The project provides a benefit to low income families that make less than 50% of the median income. The tenants do not receive subsidies and are self- sufficient according to HUD and IRS regulations. Besides the reduced rent payments, the families must contribute to a fund which can be used to purchase a first home or pay for their education. Of the original residential families, 32 have moved out on their own, 16 have purchased homes, and 7 are on a waiting list to acquire homes from the WHFD. Twelve of the 52 units in the project are owned by Volunteers of America, who provide housing for victims of abuse, and are not a part of the appeal. Commissioner Birzenieks asked how other communities across the state and country handle tax assessments on similar organizations. Mr. Wessell responded that similar partnerships in Raleigh, Durham and Greensboro, are structured as non-profits having tax credits and owned by taxable entities. The Willow Pond Partnership owns the tax credits, which the non-profit partner, WHFD, does not need. Most of the country does consider the property as tax exempt for income tax purposes when a non-profit sponsors the general manager. However, most counties in North Carolina do not exempt the developments from property taxes. Mr. Bethune eXplained that the tax assessors are unable to consider the non-profit status of a partnership and they can only determine the value of a property by the cost approach, income approach or market approach. He considered the cost approach to value as the proper approach to assess the value of Willow Pond. lfthe value of the property is reduced, the tax savings is absorbed by the partnership. He pointed out that the project provides a good public service, but the ~ 178 MINUTES OF BOARD OF EQUALIZATION AND REVIEW, JUNE 21, 1999 -- partnership can increase the income from the apartments. Mr. Wessell responded that the financing agency must approve all increases in rent payments. In the past, rent increases have been minimal, approximately $11.00 per month based on the median income of the tenants. Mr. Lucas explained that the rents cannot be more than a maximum of30% of the family's gross income to be in compliance with the tax credit code. In order for the corporate sponsors to purchase the tax credits, they must agree to charge low rents. However, losses in depreciation and tax credits, as well as any profit, are used as tax benefits by the partners. Currently, the project is at the maximum income level based on the tenants' income. After the hearings on this date, Mr. Bethune reported that the quality grade was corrected from Grade 110 to Grade 100, thereby reducing the assessed value to $2,196,133. MOTION: Commissioner Birzenieks MOVED, SECONDED by Vice Chairman Greer, to reduce the assessed values of the apartments, based on the adjustments to the effective age and quality grade, as follows: Building 3508 from $161,130 to $134,595 Building 3512 from $244,486 to $205,523 Building 3516 from $241,455 to $203,100 Building 3525 from $254,802 to $213,773 Building 3521 from $241,455 to $203,100 Building 3517 from $241,455 to $203,100 Building 3510 from $241,455 to $203,100 Building 3514 from $255,133 to $214,038 Building 3518 from $244,486 to $205,523 Building 3523 from $244,486 to $205,523 Building 3519 from $244,486 to $205,523 Upon vote, the MOTION CARRIED UNANIMOUSLY. TAX APPEAL - JEANETTE D. BROWN, 18 JEB STUART DRIVE, WILMINGTON, NC, TAX MAP NUMBER R06117-002-015-000 Mrs. Jeannette D. Brown, property owner of 18 Jeb Stuart Drive, was sworn in to give testimony. Tax Appraisal Supervisor Jim Bethune reported that the appellant did not provide supportable evidence to warrant a reduction in value of her home, except for the sale of a home on the same street for $84,000, which occurred three years ago. He stated that comparable sales found by the Tax Department supported the assessed value of $119,584, and he felt the property could be sold for that amount. Mrs. Brown stated that her home was 39 years old and the fair market value should be $110,000. A garage was converted into living space, using paneling and glass sliding doors. Carpet I I I ~ 17~ MINUTES OF BOARD OF EQUALIZATION AND REVIEW, JUNE 21, 1999 was installed on top of the concrete slap and the room is heated by a gas space heater. The adjacent houses are used as rental properties and some of the neighbors do not take sufficient care of their lawns. One neighbor's home is valued at $120,000, and has a swimming pool, storage building, and garage, while her home does not have the extras. MOTION: After the hearings on this date, Vice-Chairman Greer MOVED, SECONDED by Commissioner Howell, to uphold the assessed value of $119,584. Upon vote, the MOTION CARRIED UNANIMOUSLY. ASSESSED VALUES UPHELD Tax Administrator Glasgow recommended that the Board affirm the assessed values on properties that the appellants have withdrawn their tax appeals. Motion: Commissioner Birzenieks MOVED, SECONDED by Vice-Chairman Greer, to uphold the assessed values on properties that the appellants have withdrawn their appeals. Upon vote, the MOTION CARRIED UNANIMOUSLY. The Board of Equalization and Review upheld the assessed value on the following properties, as recommended by the Tax Administrator: TAX APPEAL - NEWLAND KAY CROCKER, ETUX, 2031 EASTWOOD ROAD, WILMINGTON, NC, TAX MAP NUMBER R05714-001-004-000 Tax Administrator Robert Glasgow reported the appellant, Mr. Newland Kay Crocker, has withdrawn the appeal. He recommended to affirm the assessed value of $781,967. TAX APPEAL - ROYAL PALMS MHP LLC, 5140 CAROLINA BEACH ROAD, WILMINGTON, NC, TAX MAP NUMBER R07600-062-056-000 Tax Administrator Robert Glasgow reported the appellant, Ken C. Burnham, withdrew the appeal. He recommended to affirm the assessed value of $2,000,632. TAX APPEAL - BAY INVESTMENTS CO., LID, 406 LAKE PARK BOULEVARD, CAROLINA BEACH, NC, TAX MAP NUMBER R09006-003-002-000 Tax Administrator Robert Glasgow reported that the appellant's tax representative, Jacob Tanzy of Robert D. Rash and Associates, withdrew the appeal. He recommended to affirm the assessed value of $513,405. TAX APPEAL - FRANK HAWKINS KENAN 1988 TRUST, TEXAS STEAK HOUSE, LANDFALL SHOPPING CENTER, 1333 MILITARY CUTOFF ROAD, WILMINGTON, NC, TAX MAP NUMBER R05608-008-005-000 Tax Administrator Robert Glasgow reported that the appellant's tax representative, Jacob Tanzy of Robert D. Rash and Associates, withdrew the appeal. He recommended to affirm the ~ 180 MINUTES OF BOARD OF EQUALIZATION AND REVIEW, JUNE 21, 1999 assessed value of $1,437,436. TAX APPEAL - AZALEA PLAZA ASSOCIATES, 1420 FLORAL PARKWAY, WILMINGTON, NC, TAX MAP NUMBER R05517-001-010-000 Tax Administrator Robert Glasgow reported that the appellant's tax representative, Jacob Tanzy of Robert D. Rash and Associates, withdrew the appeal. He recommended to affirm the assessed value of $667,010. TAX APPEAL - THOMAS AND MICHELE MELIN, 208 BEACH ROAD NORTH, FIGURE 8 ISLAND, WILMINGTON, NC, TAX MAP NUMBER R04605-001-012-000 Tax Administrator Robert Glasgow reported that the appellant, Thomas Melin, withdrew his appeal. He recommended to affirm the assessed value of $807,290. ADJOURNMENT There being no further appeals scheduled for the day, Chairman Caster recessed the meeting until June 28, 1999. The meeting adjourned at 5:00 p.m. Respectfully submitted, J~fJ~ Teresa P. Elmore Deputy Clerk to the Board ofEqualization and Review