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HomeMy WebLinkAboutE&R 2001-05-21 I I I ,.., MINUTES OF THE BOARD OF EQUALIZATION AND REVIEW MAY 21, 2001 Page 275 The New Hanover County Board of Equalization and Review met on Monday, May 21, 2001, at 2:10 p.m. in the Assembly Room of the New Hanover County Courthouse, 24 North Third 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: Vice-Chairman Robert G. Greer; Commissioner William A. Caster; Commissioner Nancy Pritchett; Tax Administrator Robert Glasgow; Tax Appraisal Supervisor Larry Bolick; Assistant County Attorney Holt Moore; and Deputy Clerk Teresa P. Elmore. Chairman Ted Davis was unable to attend due to a change in his court schedule. Commissioner Boseman was present during most of the hearings, but was not present for the voting of the motions. Vice Chairman Greer called the meeting to order and welcomed everyone present. He apologized for the late start of the meeting due to the Regular Board meeting running behind schedule. Appellants were informed that the Board would make decisions following the hearings and notification of each decision would be mailed within a week. TAX APPEAL PRESENTATIONS TAX APPEAL - RUSSELL F. AND ROSA ADAMS, 1601 HERRING LANE, WILMINGTON, NC, TAX MAP NUMBER R05620-001-001-000 AND R05620-001-037-000 Tax Administrator Glasgow reported that the properties consist of a 2,376 square-foot brick veneer residence constructed in 1920 and an adjoining vacant lot. The house is of an average quality grade and is in average condition with an assessed value of$270,034. The vacant lot has an assessed value of $149,999. Mr. Russell Adams and Mrs. Rosa Adams, the property owners, were sworn in to give testimony. Mr. Adams stated that he felt the assessed value of the house and lot should be the same as his purchase price of $249,000 for the property with the house and $118,000 for the adjoining lot. The comparable sales that the Tax Department used in Softwind Way, a subdivision two miles from the neighborhood, were of a higher quality. In support of his argument for a reduction in the value of the vacant lot, he submitted the sale of an adjacent lot at $95,000 in January 1999. Additionally, another lot on Herring Lane assessed for $80,000 will be sold in June 2001 at $49,500. He suggested a compromise in the assessed value of $118,000 for each of the lots. In the assessment support, Tax Appraisal Supervisor Bolick presented comparable sales of Softwind Way Subdivision, a slightly superior neighborhood along Bradley Creek. The assessed OR?: ~ MINUTES OF THE BOARD OF EQUALIZATION AND REVIEW MAY 21, 2001 Page 276 values of the vacant lots range from $154,998 to $169,998, which is supported by sales of $150,000 to $165,000. Additionally, the house at 1505 Herring Lane sold in June 1998 for $400,000, which supports the assessed value of $417,000 for that property. He recommended to uphold the assessed values on the Adams' properties. Tax Administrator Glasgow explained that in the mass appraisal process, lots may be of different sizes, but the assessed values will be consistent. Assistant Tax Appraisal Supervisor Jeff Clemmons pointed out that the property Mr. Adams reported had sold for $95,000 was not an arms-length transaction. The sale was to an exchange security commission, which may not represent true market value. Although Softwind Way is a better grade community, Herring Lane is closer to the waterway than Softwind Way, but is $20,000 less in the assessed values. Motion: At the conclusion of the hearings on this date, Commissioner Caster MOVED, SECONDED by Commissioner Pritchett, to uphold the assessed value of $270,034 for the house and lot and $149,999 for the vacant lot, as recommended by the Tax Appraisal Supervisor. Upon vote, the MOTION CARRIED 3 TO O. TAX APPEAL - BARR LAKE, LLC, 4941 SHADOW BRANCH LANE, WILMINGTON, NC, TAX MAP NUMBER R07100-005-070-000 - R07100-005-103-000 Tax Administrator Glasgow reported that the assessed value of the individual 31 vacant lots on Shadow Branch Lane is $60,000 per lot. All lots have an unobstructed view of a small lake and all have common use of the facilities. Mr. John Galarde, the property owner, was sworn in to give testimony. He stated that two lots have sold at $40,000 and $39,000 each and other lots will be sold on a cost-plus basis for the construction of the homes using $49,000 as the price of the lot. An appraisal by Worsley Real Estate Company supported the value of $44,000 per lot based on the market price of $1.2 million for the total acreage of undeveloped lots. Additionally, lots in Stranton Village, which have a swimming pool and tennis courts, have assessed values in the $40,000 range. He requested the Board to reduce the assessed value of the lots to $45,000 each, based on his evidence. In the assessment support, Tax Appraisal Supervisor Bolick submitted three sales from another subdivision on Dewars Circle, which were sold as land/home packages. The sales indicate that approximately 25 % of land-home package price is allotted to the land cost for a per lot cost of $61,0000. Furthermore, the lot that sold for $39,000 was to Mr. Galarde's father, which disqualifies the sale as an arms-length transaction. Stranton Village is not a good comparison between the neighborhoods, because the lots on Shadow Branch Lane have an unobstructed view of the lake. 6lG ,.., I MINUTES OF TIlE BOARD OF EQUALIZATION AND REVIEW MAY 21,2001 Page 277 At the conclusion of the hearings on this date, discussion continued on the undeveloped lots in the subdivision. Assistant Tax Appraisal Supervisor Jeff Clemmons explained that the appraisal provided by Mr. Galarde was the value of a commercial development and not the value of individual lots being sold for residential use. Tax Appraisal Supervisor Bolick pointed out that the lots in Stranton Village and Masonboro Forest are smaller lots than the lots on Shadow Branch Lane and have an assessed value of $48,000. Properties on the other side of Masonboro Forest have an assessed value of $60,000 and are more comparable to the Barr Lake properties. Furthermore, the view of the lake adds to the value of the Barr Lake subdivision. Motion: Commissioner Pritchett MOVED, SECONDED by Vice Chairman Greer, to uphold the assessed value of $60,000 per lot, as recommended by the Tax Appraisal Supervisor. Substitute Motion: Commissioner Caster MOVED to reduce the assessed value to $55,000 per lot. It did not receive a second. I Vote: Upon vote on the original motion, the MOTION CARRIED 2 TO 1. Voting Aye: Commissioner Pritchett Vice Chairman Greer Voting Nay: Commissioner Caster TAX APPEAL - WEBSTER G. AND YVONNE JOHNSON, 815 CASTLE STREET, WILMINGTON, NC, TAX MAP NUMBER R05410-001-003-000 Tax Administrator Glasgow reported that the property is a 27 foot x 62 foot vacant lot that fronts Castle Street. Mr. Webster G. Johnson, the property owner, was sworn in to give testimony. He spoke on receiving an appraisal for the property at $6,000 from Gwen Flowers Realty when he listed the property for sale. Because of the small size of the lot and the set back requirements, he felt that the property could not be developed. He requested the Board to reduce the assessed value to $6,000. He recently sold 817 Castle Street for $8,000 to Mr. Maurice Massey, the adjoining property owner. I In the assessment support, Tax Appraisal Supervisor Bolick stated that staff applied the same standards of value to Mr. Johnson's property as they had to other properties on Castle Street. Lots are assessed at $700 per front foot, but a physical adjustment of 80% was applied due to the small size of the lot. The 30 foot setback requirement deems the property unbuildable. The sale of 817 Castle Street in November 2000 supports the assessed value of the property. Since the property was equitably assessed with other properties on Castle Street, he recommended to uphold G8~ ~ MINUTES OF THE BOARD OF EQUALIZATION AND REVIEW MAY 21, 2001 Page 278 the assessed value of $9,495. Gwen Flowers of Gwendolyn R. Flowers Realty is not a certified land appraiser, and the fair market value of $6,000 is her opinion of value. At the conclusion of the hearings on this date, the Board discussed the limited use of the lot because of the setback requirement and its impact on the value of the property. Motion: Commissioner Pritchett MOVED, SECONDED by Commissioner Caster, to reduce the assessed value to $8,000, based on the selling price of the adjoining lot. Upon vote, the MOTION CARRIED 3 TO O. TAX APPEAL - RACHEL F. MARTIN ETAL, 4400 PINE HOLLOW DRIVE, WILMINGTON, NC, TAX MAP NUMBER R07110-003-038-000 Tax Administrator Glasgow reported that the property is a 1,344 square foot home built in 2000 and includes a 272 square foot enclosed porch. The property sold in August 2000 for $128,500. The lot is valued at $34,000, the same as other lots in the area. Ms. Rachael Martin, the property owner, was sworn in to give testimony. She spoke concerning her purchase of the property for $124,950. Her son enclosed the porch on the concrete patio area. She stated that her property was smaller than other lots in the area, and her house has fewer amenities than the houses that sold for $132,000. Ms. Martin requested the Board to reduce the assessed value to between $125,000 and 131,000. She did not want to be taxed out of her home because of the increased value of her home. In the assessment support, Tax Appraisal Supervisor Bolick submitted comparable sales of three homes in the same subdivision that are identical to Ms. Martin's home except for the enclosed porch. The 2000 selling prices for the properties were $133,500, $145,000, and $130,000. The change from a concrete terrace to an enclosed porch added $5,399 to the value of the property, based on the mass appraisal standards established in January 1991. Mr. Bolick recommended to uphold the assessed value of $135,741, based on the cost basis of square footage. At the conclusion of the hearings on this date, the Board discussed the impact of increased tax rates on the elderly who are on fixed income. Vice Chairman Greer was concerned that people like Ms. Martin could not afford the proposed tax rate increase. Tax Administrator Glasgow noted that Ms. Martin owns property in the Seabreeze area which recently sold for $600,000; however, she is foreclosing on the property. Motion: Commissioner Pritchett MOVED, SECONDED by Commissioner Caster, to uphold the assessed value of $135,741, as recommended by the Tax Appraisal Supervisor. Upon vote, the MOTION CARRIED 3 TO O. l8(~ I I I ~ MINUTES OF THE BOARD OF EQUALIZATION AND REVIEW MAY 21,2001 TAX APPEAL - JAMES R. AND ANNE L. RAGONE, 425 SUPERIOR ROAD, LOT 82 OCEAN FOREST LAKES, WILMINGTON, NC, TAX MAP NUMBER R08112-006-015- 000 Tax Administrator Glasgow reported that the property is a vacant lot in an established neighborhood. The subdivision requires 1,660 square feet of heated living area for houses being built, and there are many other restrictions and conditions. Page 279 Mr. James R. Ragone, the property owner, was sworn in to give testimony. He reported that he purchased the property 15 years ago for $16,000 instead of$18,000, as listed on the record card. He spoke on the difficulty he has had in trying to sell his property for the past five years because of the double-wide mobile homes on an adjacent street and flooding problems caused from Hurricane Floyd. Although the homeowners association has worked to enhance this area of the subdivision with new landscaping, sales have not occurred. Additionally, water and sewer systems are unavailable. He has the property listed for sale at $15,000. In the assessment support, Tax Appraisal Supervisor Bolick provided sales in the Ocean Forest Lakes Subdivision from 1997 to 1998 that ranged from $19,500 to $22,000, which supports the assessed value of $20,000 per lot. At the conclusion of the hearings on this date, discussion was held on the effect the new schools would have on growth in the area. Staff pointed out that water and sewer service connections were seen in the picture of the lot and drainage problems may be rectified with the construction of berm and swell areas next to the school property. No road connects the subdivision to the school property. Motion: Commissioner Caster MOVED, SECONDED by Vice Chairman Greer, to uphold the assessed value of $20,000, as recommended by the Tax Appraisal Supervisor. Upon vote, the MOTION CARRIED 3 TO O. TAX APPEAL - CHARLES M. RAMSEY ETAL, 5010 CAROLINA BEACH ROAD, WILMINGTON, NC, TAX MAP NUMBER R07117-003-006-000 Tax Administrator Glasgow reported that the property, a single family residence with 720 square feet of heated living space, was built in 1955. The house has over $9,000 of depreciation and is assessed at $25,943. Although the property is currently used as a residence, the land is commercially zoned B-2 and is assessed at $72,160. A concrete block utility building is assessed at $1,051. The total assessed value is $99,154. Mr. Charles Ramsey, the property owner, was sworn in to give testimony. He spoke on receiving an appraisal for his property at $74,000. The small size of the 82 foot wide lot severely limits its commercial use because of its lack of ample parking. The tax value increased from $49,000 to $107,000. After he met with the Tax Department, the value was reduced to $99,154. No improvements have been made to the home except for a roof replacement after Hurricane P8G ~ MINUTES OF THE BOARD OF EQUALIZATION AND REVIEW MAY 21,2001 Page 280 Floyd. In response to questions concerning the value of commercial properties along Carolina Beach Road, Tax Appraiser Tom Nolan responded that the properties were holding their values. Although the owner believes the residential property is not large enough, sales have been reported at $100,000 for residential lots. Tax Administrator Glasgow added that it would probably require adjoining properties to make Mr. Ramsey's lot a good commercial property. Mr. Ramsey reported that nearby commercial property was sold at $60,000 and it was used for a floral shop. He realized that property values have increased, but he did not feel there was justification for such a large increase. Furthermore, a vacant lot on the southwest corner of Silver Lake Road is zoned for commercial use, but it has limited parking available. He requested the Board to reduce his value. Tax Administrator Glasgow advised that State law requires the Tax Department to establish the values based on market value. Because of the influx of residents to the area who were willing to pay higher prices, market values have increased substantially. In the assessment support, Tax Appraisal Supervisor Bolick compared the property to other sales along Carolina Beach Road in 1997 and 1998 that sold from $95,000 to $167,000. A 1,100 square foot building was removed from a lot and the selling price was equal to $7.27 a square foot. Mr. Ramsey's property is currently assessed at $6.22 per square foot, which places the land value at $13,613. Another property at 6314 Carolina Beach Road sold for $88,235 per acre in August 1997. It was zoned for residential use and assessed at $34,000. Another lot sold for $167,000 in May of 1997. It had an 864 square foot house that was built in 1920 and it is currently used as the office of M&T Masonry and Supply Company. At the conclusion of the hearings on this date, Tax Administrator Glasgow advised the Board that commercial property can be reduced to residential value when the property is not used commercially. When that property is sold, it reverts back to its commercial value. Usually a 25 % reduction is applied to the commercial value of the land, which will reduce the total assessment for Mr. Ramsey's property to $79,200. Mr. Glasgow recommended to reduce the assessed value to $79,200 or not less than the preceding assessment. Motion: Commissioner Caster MOVED, SECONDED by Commissioner Pritchett, to reduce the assessed value to $79,200 or not less than the preceding assessment. Upon vote, the MOTION CARRIED 3 TO O. r~ (8 -:: t. ~ C I I I ~ MINUTES OF THE BOARD OF EQUALIZATION AND REVIEW MAY 21, 2001 TAX APPEAL - JACK WHITE AND ARLENE L. REYNOLDS, 105 ROUGUE COVE DRIVE, WT 18 FEDERAL POINT MARINA AND YACHT CLUB, WILMINGTON, NC, TAX MAP NUMBER R08818-006-047-000 Tax Administrator Glasgow reported that the property is a 4,466 square foot lot in Federal Point Marina and Yacht Club Subdivision. Transferred with the lot is a 35 foot boat slip, which is included in the appraised lot value of $90,000. Page 281 Mr. Jack W. Reynolds, the property owner, was sworn in to give testimony. He spoke concerning the appraised value of $1,000 per foot being too high for his 45 foot boat slip. He felt that his value should be the same as the value of the other slips that had been reduced to $20,000. He reported that he purchased the land in May 1996 and it has been for sale for five years. The property has been listed at $119,900, then reduced to $109,900, and now at $99,900. He did not think the land was worth $90,000 without the boat slip and the boat slip was not worth $35,000. He requested the Board to reduce the value by $15,000. Tax Administrator Glasgow explained that the boat slips were reduced because originally the boat slips at Elsworth Sloan Waterfront Villas were assessed at $1,050 per lineal foot. However, the schedule of values assessed the boat slips at $20,000. All boat slips have been reduced to $20,000. A reduction and refund was given to the Federal Point Yacht Club and owners. In the assessment support, Tax Appraisal Supervisor Bolick reported that sales of similar lots in nearby subdivisions were compared to Mr. Reynolds' property. Property at 103 Hope Town Road sold for $142,500, and it has the assessed value of $99,999. Property at 1001 Waterview Place does not have a boat slip, but sold for $97,500 in October 1997. Lots on Merchant Lane sold for $116,000 in May 1999 and $132,500 in August 1997. Mr. Bolick stated that Mr. Reynolds is being treated the same as other owners of lots with boat slips, and the assessment is based on the standard of values established in 1999. These boat slips were assessed with the lots as a packaged deal. Twelve of the 18 lots have sold from $100,000 to $142,000 during the years of 1996-1998. Mr. Reynolds stated that he purchased the lot for $70,000 in 1996 as an investment on which he has lost money. He pays $1,700 per year for fees, which is increasing his cost on the lot. Although the property is listed for $99,900, he would received $90,000 after paying real estate fees. Tax Administrator Glasgow commented on the length of time that it takes for an appeal to the North Carolina Property Tax Commission. However, the Department of Revenues does try to expedite the process by mediating settlements. Vice Chairman Greer commented that it was unfair for people to wait five years for a 9823 ~ MINUTES OF THE BOARD OF EQUALIZATION AND REVIEW MAY 21,2001 Page 282 response to an appeal, and he stated that the Board should write a letter urging the Property Tax Commission to expedite the appeals process. The 1996 General Electric appeal was finally heard last year. At the conclusion of the hearings, discussion was held on the purchase price of Mr. Reynolds' property. Assistant Appraisal Supervisor Clemmons stated that the 100+ boat slips in the Federal Point Marina and Yacht Club were used as an incentive to purchase the 18 residential lots. Sales show that immediately after someone purchased the lot for $90,000, they would sell it for $100,000. Motion: Commissioner Pritchett MOVED, SECONDED by Commissioner Caster, to uphold the assessed value of $90,000, as recommended by the Tax Appraisal Supervisor. Upon vote, the MOTION CARRIED 3 TO O. TAX APPEAL - SOUTHERN LIFESTYLES, LOT 21 AND 22 WINDY HILLS SUBDIVISION, WILMINGTON, NC, TAX MAP NUMBER R07908-003-069-000 AND R07908-003-070-000 Tax Administrator Glasgow reported that the properties are vacant waterfront lots in an established neighborhood. The parcels were split from the parent parcel R07908-oo3-040-ooo in October 2000. Mr. Loren Dickey, one of the property owners, was sworn in to give testimony. He reported that he purchased the 19 lots in Windy Hills Subdivision in 1999. The waterfront lots were assessed at $99,000 each. The subdivision was recorded in 1959 using meets and bounds description, but there was no recorded map. The Planning Board and Zoning Board of Adjustment have agreed to the recorded map which provides the lots with new tax parcel identification numbers. The Tax Department has increased the values of the lots because of the new recorded maps. The property still does not have sewer available, and the same old dirt road provides access. He is not disputing the values of the lots that have sold for $190,000 to $225,000, but he believed that the tax values of the properties should not increase during a non- revaluation year. In 1999, he paid taxes on $99,999, but when the map was recorded and a clear title was given for the property in October, another $100,000 was added to the value of the lots. Tax Administrator Glasgow reported that three of the lots were subdivided into five lots. Anytime property is subdivided, it has the tendency to increase in value. A $100,000 lot may end up being two $120,000 lots. Mr. Dickey stated that these lots were non-conforming legal lots that would not qualify for subdivision approval. A recombination of lots 29 and 30 was revised into lots 29R and roughly 30 feet of common area for an access to the waterway. Lots under appeal are #21 and #22. Tax Administrator Glasgow responded that the reconfiguration had replatted the three ('(}7 ._~ ~ r ! ...._1 ~ I I I ~ MINUTES OF THE BOARD OF EQUALIZATION AND REVIEW MAY 21, 2001 Page 283 parcels into five. The Tax Department has the lots recorded as buildable lots. He asked Mr. Dickey if they were buildable. Mr. Dickey responded that no change in the lots has been made except they were now legal non-conforming lots. Assistant Appraisal Supervisor Clemmons reported that previously the lots were categorized as unbuildable and could not be used for any purpose, so the assessed value was reduced to approximately 50% of the standard adjustment at $99,999. When the split package came through with three lots subdivided into five, the property values were changed based on the purchase price paid by Mr. Dickey, a new community access and pier on the property, and the sales of individual waterfront lots in excess of $200,000. He had assumed that the lots were made buildable because of the new sales and he removed the adjustment for unbuildable and placed the same assessed value of other waterfront lots in the Myrtle Grove community of $199,999. A house is being constructed on one of the lots, which had been categorized as unbuildable. Mr. Dickey responded that the lots under appeal are unbuildable and would not pass the County's percolation test for a septic tank. He has plans to connect to the County's sewer system off Loder Avenue. Until the gravity sewer system is in place, these two lots will not receive building permits. The sewer project should start in the next 60 days. Tax Administrator Glasgow stated that the Tax Department will require proof if the lots are unbuildable and will check with the Health Department. Unbuildable lots are reduced by 50 %, but the adjustment is removed when the lots become buildable. Road access has been created and a house is being built. If Mr. Dickey is unable to get a building permit for the lots, a reduction will be appropriate. Mr. Dickey did not understand why the County would remove the adjustment since nothing has changed for the lots. He requested the Board to keep the value as before until a building permit is obtained and sewer is available. Tax Appraisal Supervisor Bolick stated that a pier has been built on one of the reconfigured lots designated as a common area providing community access to the water. Tax Administrator Glasgow explained that the tax assessment on common areas are redistributed to all of the property owners. Usually, common areas are held by the homeowners association. Often it is left in the name of the developer, like Southern Lifestyles instead of the homeowners association. A minimal value is assigned until the property is titled to the homeowners association. The property cannot be reduced and called a common area until then. Mr. Dickey responded that as the developer he is responsible to be prudent to the owners of the lots. If the values are improper he will suggest that the property owners request the Board '88G ~ MINUTES OF THE BOARD OF EQUALIZATION AND REVIEW MAY 21, 2001 Page 284 for an adjustment. In the assessment support, Tax Appraisal Supervisor Bolick reported that the Tax Office received a split package from Land Records which altered this subdivision for tax year 2000. While executing the appropriate action of valuation, the Tax Department changed the value of all lots within this subdivision. The comparable sales showed that the values are in line with market value as of January 1, 1999. Previously, the land was assessed as though no buildings could be erected. Due to the reconfiguration/re-plotting of three parcels into five, the Tax Department identified that these properties are buildable. Each parcel is equitably assessed and the values are in accordance with the comparable sales in the vicinity of $221,500 to $250,000. He recommended that the value of the properties be upheld. At the conclusion of the hearings on this date, discussion was held on the reason for the change in value. Assistant Appraisal Supervisor Clemmons explained that the change was made because the use of the property had changed. After the properties were split, the lots were assumed buildable and sold for a profit. Three to four waterfront properties were sold for $230,000 each. The new assessed value was not based on the selling price of $230,000, but it is consistent with other Intracoastal waterfront lots in the Myrtle Grove area at $199,998. Commissioner Caster asked Staff if the Board could make a motion to uphold the valuation of the property based on the lots being buildable, but to reduce the value of the property by 50% if the lots are unbuildable. Tax Administrator Glasgow responded that if these lots are reduced in value until such time as water and sewer are available for the area, the door will be open for other property owners who have unbuildable lots to request a reduction until such time as water and sewer are available. These lots are being purchased at $230,000, which confirms the value of the lots. Motion: Commissioner Caster MOVED, SECONDED by Vice Chairman Greer, to uphold the assessed value of$199,998 for each lot, as recommended by the Tax Appraisal Supervisor. Upon vote, the MOTION CARRIED 3 TO O. TAX APPEAL - CRAIG A. AND ELISABETH WENGER, 278 WILLIAMS ROAD, WILMINGTON, NC, TAX MAP NUMBER R08207-001-014-001 Tax Administrator Glasgow reported that the property is a vacant lot at the end of Williams Road and borders the Intracoastal Waterway. The lot provides a direct access to the waterway and offers a southerly panoramic view of the waterway. Mr. Craig Wenger, the property owner, was sworn in to give testimony. He spoke concerning the constraints of the property because of the septic tank system for the house. Nothing can be built on the vacant lot until sewer is installed in the area, which is projected in 10- 15 years. The lot may never be a buildable lot and cannot be worth $99,000. He estimated its /8G ."....... - I I I ~ ~~ t {:: MINUTES OF THE BOARD OF EQUALIZATION AND REVIEW MAY 21,2001 Page 285 worth at 30% less than the assessed value. The land is completely in a flood zone. The comparable properties used by the Tax Department are not similar because they are larger and on a high bluff with more frontage on the waterway. His property is a wetland area with an encroaching pond. The lot does not have a recorded access from the main road, which would cause a problem for future development. He crosses over his neighbors' property. His home and vacant lot were recorded as being 3.7 acres which conforms to R-15 zoning; however, a survey for refinancing the property found the vacant lot to be .22 acre, which does not conform to R-15.' The lot line was changed to be in compliance. In 1993, the lot was appraised at $50,000. Accordingly, the new revaluation has increased its value by 400 %, whereas, few places in New Hanover County have increased by 400%, especially in the Myrtle Grove area. Tax Administrator Glasgow noted that some waterfront properties have increased by $400,000. In the assessment support, Tax Appraisal Supervisor Bolick said the standard assessed value of property along the waterway for easements or properties that do not perk is set at $99,999. The appropriate 50% reduction has been applied to Mr. Wenger's vacant lot since it has been determined unbuildable. However, construction of a pier would be allowed on the lot along the Intracoastal Waterway. Mr. Bolick recommended the assessed value to be upheld based on the lot receiving the standard 50% reduction in value. At the conclusion of the hearings on this date, discussion was held on the effects of having no road access rights and the encroachment of the ponds on the value of the property. Assistant Appraisal Supervisor Clemmons responded that the pond is actually a low lying area along the salt water marsh and that the two houses beyond Mr. Wenger's property appear to have access. Motion: Commissioner Caster MOVED, SECONDED by Commissioner Pritchett, to uphold the assessed value of$99,999, as recommended by the Tax Appraisal Supervisor. Upon vote, the MOTION CARRIED 3 TO O. TAX APPEAL - WRIGHTSVILLE PARK, LLC, 5140 GREENVILLE LOOP ROAD, UNITS4A, 4B, 4C, AND4D, WILMINGTON,NC, TAX MAP NUMBER R06116-004-005- 017, R06116-004-005-018, R06116-004-005-019, R06116-004-005-020, Tax Administrator Glasgow reported that the properties under appeal are four units of a condominium, two on top and two on bottom. Each unit has 1,150 square feet and was built in 1997. The assessed value of Unit 4A and Unit 4B are $102,701 each, and Unit 4C and Unit 4D are assessed at $99,793 each. Mr. Steve Neimeyer, one of the developers/owners of the units, was sworn in to give testimony. He spoke on originally selling the units in 1997 between $90,000 and $99,000; however in 1998, the market for condo units stopped. The owners had planned to develop 32 units. He requested the Board to consider the selling price of $90,000 for Unit 8 (one of the OL:'7 oC .,~ MINUTES OF THE BOARD OF EQUALIZATION AND REVIEW MAY 21,2001 Page 286 better units downstairs) as the assessed value. Recent sales have been $78,000 and $81,000 and the average rent has decreased to $700 per unit. The $90,000 sale in August 1998 showed the trend in the declining market for condominiums. In the assessment support, Tax Appraisal Supervisor Bolick reported that sales of the units in April and May 1997 were $94,000, $96,000 and $100,000, and sales in 1996 were $100,000. The schedule of values was based on condo sales of 1998. While one of the units sold for $90,000 in August 1998, another sold at $100,000. Mr. Neimeyer replied most of the units sold in 1997 before the downward market trend which started in 1998. In 1996, he built twenty-four units in Hawthorne Park and sold them within ten months. No units have sold in Wrightsville Park for the past four years. At the conclusion of the hearings on this date, Tax Appraisal Supervisor Bolick noted that the top units were assessed at the higher value of $102,701 instead of $99,793 because of receiving a better quality grade for the vaulted ceilings. Additionally, the assessed value of five other units was adjusted because of a clerical error. Motion: Vice Chairman Greer MOVED, SECONDED by Commissioner Pritchett, to uphold the assessed value of $102,701 for Units 4A and 4B and $99,793 for units 4C and 4D, as recommended by the Tax Appraisal Supervisor. Upon vote, the MOTION CARRIED 3 TO O. TAX APPEAL - CAPER CORPORATION, BIRCH CREEK II, CONDOMINIUM, WILMINGTON, NC, TAX MAP NUMBER R05514-001-036-000 Tax Administrator Glasgow reported that in February 2001, the parcel was split into four units and a common area. The units are 1.25 story condominiums in the Birch Creek II neighborhood (phase 9), located off Wilshire Boulevard at the addresses of931, 933, 935 and 937 Birch Creek Drive. Prior to the split, the property was a 1.57 acre tract valued at $125,600. Each unit has 1,653 square feet of heated living area with a quality grade of 125 and an assessed value of$136,980. The assessed value of$5,601,652 was applied to the total property, with each individual unit assessed at $108,863. After the construction was completed in February 2000, the 10% functional obsolescence was removed and the properties were assessed at $136,980 for 2001. Mr. Walter Pancoe, the developer of the project, was sworn in to give testimony. He spoke on the high quality units deserving a higher market value. However, only one unit has sold since February 2000 at $133,000. The listing price for the other units is $129,000, which includes appliances worth $1,500 as inducements. He requested the Board to reduce the assessed value from $141,000 to $100,000 per unit. He argued that the assessed value should be the same as the selling price of the brand new units. In the assessment support, Tax Appraisal Supervisor Bolick stated that a reduction in the total assessed value of the parcel was from $565,745 to $560,652 because of an error in the sketch bRG I I I ..., r1"~.'~c',1; MINUTES OF THE BOARD OF EQUALIZATION AND REVIEW MAY 21, 2001 Page 287 plan. The assessed value of $136,980 is the same as other units in Birch Creek. Comparable sales of units in Birch Creek have ranged from $125,000 to $146,000 and they support the assessed value of the four new units. The Tax Department assessed all units in Birch Creek the same using the same quality grade of 125. He recommended to uphold the assessed value. Mr. Pancoe reiterated that the assessed value should be the same as the selling price of the new units. He felt that the four units have a less desirable location because of being close to the main road. Sales of older units were higher because of the owners adding better flooring and other amenities. Tax Administrator Glasgow explained that the real estate market climbed in value between 1995 and 1998. Since then a downward slide has reduced values to lower than the standard established as of January 1999. Had the market continued to climb, the assessed valued would have remained at the January 1, 1999 established values. At the conclusion of the hearings on this date, Assistant Appraisal Supervisor Clemmons reported that other condominiums across the road off Wilshire Boulevard had sold in a timely manner in 1998 and 1999. Motion: Commissioner Caster MOVED, SECONDED by Commissioner Pritchett, to affirm the assessed value of $547,920, as recommended by the Tax Appraisal Supervisor. Upon vote, the MOTION CARRIED 3 TO O. TAX APPEAL - C. DANIEL AND TEMA C. CHURCH, 333 KURE DUNES LANE, WILMINGTON, NC, TAX MAP NUMBER R09200-001-002-055 Tax Administrator Glasgow reported that the single family residence with 2,074 square feet of heated living space was constructed in 2000. Mr. Church purchased the property in 2001 for $234,000. The assessed value for the land is $65,000 and the house is $178,423, a total taxable value of $243,423. The value of the house equals to $86 per square foot. Mr. Glasgow stated that the appellant, Daniel Church, was unable to attend the meeting, but he had requested staff to present his appeal. Mr. Church made the argument that the assessed value of his property should be the same as the purchase price of $234,000. He requested the Board to reduce the assessed value from $243,423 to $234,000. In support of the assessment, Tax Appraisal Supervisor Bolick showed comparable sales of properties in the area prior to the January 1, 1999 revaluation date. Sale prices ranged from $230,500 to $270,000. In certain areas of the County, properties have begun to sell for less than the assessed value. Since Mr. Church purchased his home after the revaluation date of January 1, 1999, Mr. Bolick recommended that the assessed value be upheld. ~-~bG ~ MINUTES OF THE BOARD OF EQUALIZATION AND REVIEW MAY 21,2001 Page 288 Motion: At the conclusion of the hearings on this date, Vice Chairman Greer MOVED, SECONDED by Commissioner Caster, to uphold the assessed value of $243,423, as recommended by the Tax Appraisal Supervisor. Upon vote, the MOTION CARRIED 3 TO O. TAX APPEAL - JONATHAN AND REBA S. ALPER, 1236 PEMBROKE JONES DRIVE, WILMINGTON, NC, TAX MAP NUMBER ROS707-00S-001-000 Tax Administrator Glasgow reported that the appeal is on a vacant lot in Pembroke Jones Park of Landfall and has an assessed value $142,619. Mr. Jonathan Alper, owner of the property, was sworn in to give testimony. He stated that he purchased the property in 1991 for $105,000 and initially planned to build a two-story home. However, his plans changed and he has tried to sell the property for the last seven years. He felt that the triangular shape of the 50 foot x 75 foot lot and the location on a busy street has made it difficult to sell the property. Furthermore, additional lots in the phase 2 area have caused more competition in selling his property. Currently, the lot is listed for $117,500, but he has offered a bonus to the selling agency and has asked that all offers be brought to him for consideration. He compared his property to a lot on Verrazano Drive, another busy street near the Eastwood Road entrance and on a golf course; and it is assessed at $99,999. Another lot on the same golf hole has an assessment of $89,999. Several lots on the Nicholas course in the new section have tax values of $85,000 to $100,000. Two lots on his block have sold within the last 2-3 years for approximately $100,000. Mr. Alper requested the Board to reduce the value of his lot to $100,000. In support of the assessment, Tax Appraisal Supervisor Bolick submitted comparable sales of vacant lots on Pembroke Jones Drive and Arboretum Drive that sold between $138,000 and $141,500. Staff felt that the property was equitably assessed and consistent with other properties in the area. Mr. Bolick recommended to uphold the assessed value. Motion: At the conclusion of the hearings on this date, Commissioner Caster MOVED, SECONDED by Commissioner Pritchett, to uphold the assessed value of $142,619, as recommended by the Tax Appraisal Supervisor. Upon vote, the MOTION CARRIED 3 TO O. ASSESSED VALUES REDUCED Tax Administrator Glasgow reported several appellants withdrew their appeals after the Tax Department found errors and corrected the values. The appellants have agreed with the reduced values. He recommended that the Board approve the assessed values for the following property owners: Gary A. and Alice M. Emery Delbert Lenon Hermann Christine W. Seitter Landen Lawrence C. and Jane C. Murray R03515-013-018-000 reduced to $109,863 R03311-004-014-000 reduced to $44,660 R04207-001-031-000 reduced to $37,170 R03717-003-026-000 reduced to $302,154 .Tb2 I I I ~ MINUTES OF THE BOARD OF EQUALIZATION AND REVIEW MAY 21, 2001 Page 289 Roger Sims, Eta!. John M. and Maria W. Tetterton Donald T. and Connie W. Vigus P. Gregory and Cathleen Zack R06611-01O-019-000 reduced to $183,367 R055 13-002-001-000 reduced to $290,193 R06217-006-004-002 reduced to $33,000 R06208-0 11-029-000 reduced to $245,467 Tax Administrator Glasgow requested the Board to add Raymond W. Haas, Eta!. (Item 8) to the list of appellants. The appellant has agreed to the reduced assessed value of $128,515. Motion: Commissioner Caster MOVED, SECONDED by Commissioner Pritchett, to include the appeal from Mr. Raymond Haas with the appellants who have agreed to the corrected assessments, and to accept the assessed values of the listed appellants as recommended by the Tax Appraisal Supervisor. Upon vote, the MOTION CARRIED 3 TO O. Tax Appraisal Supervisor Bolick informed the Board that the appellants were requested to send notification of their agreement with the corrected values. In the future, signatures will be required on a form. Tax Administrator Glasgow reported that some of the appellants were not present to give their appeals. He asked the Board to affirm the assessed values of the remaining appeals: Jimmy G. Cone, Sr. Etal, 323 Friendly Lane, Wilmington, NC, Tax Map Number R07200-008-026-000, Assessed Value of $195,713 Robert Warren Fehr, 5935 Myrtle Grove Road, Wilmington, NC, Tax Map Number R07908-003-055-000, Assessed Value of $191,455 George R. Howard, Jr., 2032 Scrimshaw Place, in Landfall Subdivision, Wilmington, NC, Tax Map Number R05114-009-158-000, Assessed Value of $153,890 James B. and Myrtle Long, 4208 Wrightsville Avenue, Wilmington, NC, Tax Map Number R05518-01O-008-000, Assessed Value of $86,940 O. K. and Jeannean Wiggins, 420 Rose Avenue, Wilmington, NC, Tax Map Number R05613-003-025-001, Assessed Value of $148,956 Thomas A. Williamson, III, 325 Bradley Oaks Drive, Unit 6, Wilmington, NC, Tax Map Number R06208-007-004-006, Assessed Value of $482,171 Motion: Commissioner Caster MOVED, SECONDED by Commissioner Pritchett, to uphold the assessed values on the remaining appeals. Upon vote, the MOTION CARRIED 3 TO O. 170G .~ MINUTES OF THE BOARD OF EQUALIZATION AND REVIEW MAY 21, 2001 Page 290 ADJOURNMENT There being no other business, Vice-Chairman Greer recessed the Board of Equalization and Review until the next meeting scheduled for June 18, 2001. The meeting recessed at 5:30 p.m. Respectfully submitted, i )C ;1 " ..1A..t~<./ / CkY"yL~I~_ Teresa P. Elmore Deputy Clerk to the Board ~.:b(