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1999-12-20 Special Meeting NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 27 MINUTES OF SPECIAL MEETING, DECEMBER 20, 1999PAGE 693 ASSEMBLY The 1999 New Hanover County Board of Commissioners met in Special Session on Monday, December 20, 1999, at 9:00 a.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: Commissioners Buzz Birzenieks, Charles R. Howell; Vice-Chairman Robert G. Greer; Chairman William A. Caster; Tax Administrator Robert Glasgow; Tax Appraisal Supervisor Larry Bolick, Deputy County Attorney Kemp Burpeau; and Deputy Clerk Teresa P. Elmore. Commissioner Ted Davis, Jr., was absent. Chairman Caster called the meeting to order and welcomed everyone present. 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 - JOHN ALAN JONES, 329 BRADLEY DRIVE, UNIT 8, WILMINGTON, NC, TAX MAP NUMBER RO6208-007-004-008 Tax Administrator Robert Glasgow reported that the property owner, John Alan Jones, was to travel from Raleigh, NC, to give his appeal. Since he was not present, Mr. Glasgow stated that Mr. Jones felt the assessed value on his townhouse unit in Bradley Oaks was excessive because of stucco problems to the exterior of the units and a damaged bulkhead. The Bradley Oaks Townhouse has a view of Bradley Creek and the Intracoastal Waterway and includes piers and boat slips. Damage has occurred from hurricanes and because of improper EFIS stucco installation to the exterior of the units. Motion: At the conclusion of the hearings on this date, Commissioner Birzenieks MOVED, SECONDED by Vice Chairman Greer, to uphold the assessed value of $404,242, as recommended by the Tax Appraisal Supervisor. Upon vote, the MOTION CARRIED UNANIMOUSLY. TAX APPEAL - JAMES B. AND ELAINE RIVENBARK, 12 OAK LANDING ROAD, WILMINGTON, NC, TAX MAP NUMBER RO6309-003-012-000 Mr. James B. Rivenbark, property owner of 12 Oak Landing Road, was sworn in to give testimony on his appeal. Tax Administrator Robert Glasgow reported that the property is a two-story wood-frame townhouse at 12 Oak Landing Road and has a view of the Intracoastal Waterway. The 2,300 square foot unit was built in 1985. Mr. Rivenbark stated that, of the fifteen unit complex, seven units are on the waterfront and have values ranging from $339,000 to $379,000. The land value is $200,000 and the building value is $169,000. The duplexes behind the townhouses are valued at $130,000 and the land value at $170,000. However, the three duplexes are the same size as the townhouses and have built-in garages. The townhouse units have an assessed value of $370,000 and the duplexes are valued at $300,000. He felt that the assessed value of the buildings should be the same. He reported that Unit 8, a duplex, sold for approximately $300,000. The townhouse unit which sold for $370,000 had hardwood floors, a 12 x 12 cedar-lined heated closet in the attic, gold faucets in the bathrooms, and a renovated kitchen. He requested that the units be reviewed and the values be made uniform. He felt the value of the townhouse units should be $340,000. The Tax Appraisal Supervisor Larry Bolick stated that the units were initially appraised at $369,000. When informed that the units were of different sizes, the Appraisal Department made adjustments accordingly. After an appraiser reviewed the properties and found the sizes to be comparable, the values were returned to $369,000. The assessed value is supported by the sale of Unit 10, an interior unit, which sold for $340,000, and another unit which sold for $369,000. The duplex units in the rear were appraised at $300,000, based on the cost schedule and the sale NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 27 MINUTES OF SPECIAL MEETING, DECEMBER 20, 1999PAGE 694 of a unit in February 1998, for $299,000. The rear units have approximately 300-400 square feet less heated space than the units up front. At the conclusion of the hearings on this date, Vice Chairman Greer asked if the value of interior features, such as gold bathroom fixtures and large heated closets, affected the assessed value of units. Tax Appraiser Jeff Clemmons responded that the grade of the unit is considered at the time of the review, but interior items are not considered in the value. He stated that he was misled by one of the property owners, which resulted in some changes and subsequent inconsistencies. All of the assessed values were returned to the original values based on the comparable sales of an end unit at $375,000 and an interior unit at $340,000. The assessed value for Mr. Rivenbark’s unit was changed back to $369,000. Motion: Commissioner Howell MOVED, SECONDED by Commissioner Birzenieks, to uphold the value of $371,018 for the townhouse unit and storage area. In discussion, Vice Chairman Greer commented that a value between $339,000 and $369,000 would be a more fair market value, since the unit that sold for $370,000 was renovated and had higher upgrades. Mr. Glasgow stated that the effective age of the property may be different than the other units because of those improvements, and the property may have less depreciation applied. Vice Chairman Greer stated that he did not agree with the County increasing the value on property when an owner has filed an appeal. He felt that it was antagonistic and it will make taxpayers afraid to appeal values. Mr. Glasgow replied that the Tax Department must assign values that are consistent with the fair market value. He suggested reducing the land value of each front unit by $10,000. Substitute Motion: Vice Chairman Greer MOVED, SECONDED by Commissioner Birzenieks, to reduce the assessed value of the townhouse units by $10,000. The assessed value for Mr. Rivenbark’s property was reduced to $359,000. Upon vote, the MOTION CARRIED UNANIMOUSLY. TAX APPEAL - THOMAS G. POTTLE, 6 CEDAR ISLAND, WILMINGTON, NC, TAX MAP NUMBER RO6700-003-003-005 Tax Administrator Robert Glasgow reported that Mr. Pottle’s property is a 3,100 square foot wooden frame house built on a 3.67 acre parcel. Another parcel with piers is located on the canal to the rear of the property. The Tax Department did not identify the piers until conducting the review. The piers are valued at $5,701 and should be added to the assessed value of $835,695. He recommended increasing the assessed value to $841,396 to include the piers. Vice Chairman Greer commented that he felt it was unfair to a taxpayer when the Tax Department increased the assessed value of a property because of a site review of the tax appeal. Motion: At the conclusion of the hearings on this date, Commissioner Birzenieks MOVED, SECONDED by Vice-Chairman Greer, to uphold the assessed value of $835,695, and to defer the listing of the piers until tax year 2000. Upon vote, the MOTION CARRIED UNANIMOUSLY. TAX APPEAL - FRED B. AND NELL H. GRAHAM, 523 MASONBORO SOUND ROAD, WILMINGTON, NC, TAX MAP NUMBER RO6700-005-010-001 Tax Administrator Robert Glasgow reported that the appellant, Fred Graham, felt the assessed value of his two-story brick house located on the Intracoastal Waterway, was excessive and that the fair market value should be $750,000. Based on comparable sales of similar properties on the waterway, Mr. Glasgow recommended to uphold the value of $882,528. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 27 MINUTES OF SPECIAL MEETING, DECEMBER 20, 1999PAGE 695 Motion: At the conclusion of the hearings on this date, Commissioner Birzenieks MOVED, SECONDED by Vice Chairman Greer, to uphold the assessed value of $882,528, as recommended by the Tax Administrator. Upon vote, the MOTION CARRIED UNANIMOUSLY. TAX APPEAL - HELEN C. EVANS, 316 FRIENDLY SHORES ROAD, WILMINGTON, NC, TAX MAP NUMBER RO5809-002-029-000 Tax Administrator Robert Glasgow reported that the property is a deeded boat slip at the Friendly Shores Boat Slips on the Intracoastal Waterway. The slips are approximately 24 feet in length. The appellant, Helen Evans, felt that the assessed value was excessive and beyond a reasonable estimate of market value. She stated that the boat slip is located in an area that is impossible to access because of the distance from the water due to silt and mud filling in. Motion: At the conclusion of the hearings on this date, Commissioner Birzenieks MOVED, SECONDED by Vice Chairman Greer, to uphold the assessed value of $25,000 for the twenty- four- foot boat slip at Friendly Shores Boat Slips, as recommended by the Tax Appraisal Supervisor. Upon vote, the MOTION CARRIED UNANIMOUSLY. TAX APPEAL - LUIS E. DONAYRE PRIMARY TRUST, 138 MIDDLE OAKS DRIVE, WILMINGTON, NC, TAX MAP NUMBER RO7916-001-005-000 Tax Administrator Robert Glasgow stated that the property is a 150 foot x 300 foot lot with piers on the Intracoastal Waterway. The appellant, Luis E. Donayre, felt that the value should be reduced to $175,000 because similar properties have sold for less than the assessed value of $249,998. Motion: At the conclusion of the hearings on this date, Commissioner Birzenieks MOVED, SECONDED by Vice Chairman Greer, to uphold the assessed value of $249,998, as recommended by the Tax Appraisal Supervisor. Upon vote, the MOTION CARRIED UNANIMOUSLY. TAX APPEAL - DONALD W. AND BETTY SASSER, 299 SHANNON DRIVE, WILMINGTON, NC, TAX MAP NUMBER RO7908-003-014-000 Mr. Donald Sasser, property owner of 299 Shannon Drive, and Mr. Tom Morgan, attorney, were sworn in to give testimony. Tax Administrator Robert Glasgow reported that the property at 299 Shannon Drive is a two- story vinyl-sided home built in 1989 with approximately 2,500 square feet facing the Intracoastal Waterway. Attorney Tom Morgan spoke concerning an additional assessment placed on the house for improvements made at ground level, which increased the value by $14,750. He stated that the closed- in area was done when the house was built in 1989, but has been replaced four times because of damage from hurricanes. Initially, the 1999 appraisal was for $386,026, but the value was changed to add the enclosed area under the house. Mr. Sasser noted that the closed-in area under his house was used as a utility room for storage of lawn equipment and tools. Additionally, Mr. Morgan reported that the land value for the lot is $199,998, which is the same value of the lots on the previous appeal where the values were decreased by $10,000. Five lots of the same size as Mr. Sasser’s lot are valued at $199,998. However, two adjacent lots were valued at $99,999. Because Mr. Sasser had inquired about the lot values, those lots were increased to $199,998. Tax Appraisal Supervisor Larry Bolick noted that any time a lot does not perk or is not built upon because it will not perk, the value is reduced by 50%. The lot adjacent to Mr. Sasser’s lot was reduced by 50% after a hurricane had torn the house down. After the house was rebuilt the reduction was not taken off of the tax record card. Another lot was valued at $30,000 because the lot will not perk. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 27 MINUTES OF SPECIAL MEETING, DECEMBER 20, 1999PAGE 696 Mr. Bolick further explained that a second notice of valuation was sent to Mr. Sasser to include a 30% unfinished basement. An appraiser had visited the property because a permit had been issued for the site, and realized that the property was not properly identified and taxed. Mr. Glasgow reported Permit 1397 was issued in February 1998 for $28,000, for a new structure, possibly piers or bulkheads. Mr. Sasser responded that a permit was issued in 1999 by the Corps of Engineers to rebuild his pier. No other permits were issued for the property. The house next door was rebuilt in 1998. Mr. Glasgow stated that Mr. Sasser’s piers were destroyed by the hurricanes and have been off the tax records since December 17, 1997. Mr. Glasgow explained that an appraiser visits the site during the construction phase and measures the property when possible. Sometimes a house may not be completed when an appraiser views the property and he may not pick up an unfinished enclosure. However, the Tax Department does not reassess the value for past years when an error in the appraisal is made. Although the appeal was made in response to the additional assessment of the area under the house, Mr. Morgan argued also that the land value was too high. Vice Chairman Greer asked how the County came up with a $14,000 assessment when the materials Mr. Sasser purchased totaled $300. Mr. Glasgow responded that the assessment is based on the schedule of values for the number of square feet for an unfinished basement. The value is automatically generated. Motion: At the conclusion of the hearings on this date, Commissioner Birzenieks MOVED, SECONDED by Commissioner Howell, to uphold the assessed value of $400,782, which included the unfinished basement, as recommended by the Tax Appraisal Supervisor. Upon vote, the MOTION CARRIED UNANIMOUSLY. TAX APPEAL - JACK AND OPAL E. SAVAGE, ET AL., 301 CAROLINA BEACH AVENUE, S., CAROLINA BEACH, NC, TAX MAP NUMBER RO9010-005-002-000 Ms. Opal E. Savage, property owner of 301 Carolina Beach Avenue, was sworn in to give testimony. Tax Administrator Glasgow reported that the property is an oceanfront single-family dwelling consisting of 780 square feet of heated space. Generally, ocean-front lots sell for $159,000. The Savage property has a total assessed value of $186,319. Ms. Savage spoke concerning her efforts in trying to sell the property. In 1997, she had the property listed for $120,000, and she was unable to sell. Her other properties at 303 and 305 Carolina Beach Avenue, rent better because of having several bedrooms and bathrooms. Additionally, properties on the northern part of Carolina Beach have higher resale values than the lots further south. She requested the Board to reduce the value of her property at 301 Carolina Beach Avenue to $120,000. Tax Appraiser Tom Nolan responded that sales of beach property in1997 were low because of the impact of Hurricane Fran. He stated that properties in the northern part of Carolina Beach tend to sell a little higher than those in the southern area. The land alone on ocean-front property will sell for $120,000 and has sold as high as $167,000 to $225,000. Most lots are 50 feet x 100 feet. Motion: At the conclusion of the hearings on this date, Commissioner Birzenieks MOVED, SECONDED by Commissioner Howell, to uphold the assessed value of $186,316, as recommended by the Tax Appraisal Supervisor. Upon vote, the MOTION CARRIED UNANIMOUSLY. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 27 MINUTES OF SPECIAL MEETING, DECEMBER 20, 1999PAGE 697 TAX APPEAL - EDNA AND EDENS HOWARD, 1209 SNAPPER LANE, WILMINGTON, NC, TAX MAP NUMBER RO9014-010-008-001 Tax Administrator Glasgow reported the property is a vacant, double lot at Wilmington Beach. Comparable sales of lots on a nearby street support the assessed value of $30,000. The appellants thought the value to be about $20,000. Motion: At the conclusion of the hearings on this date, Commissioner Birzenieks MOVED, SECONDED by Vice Chairman Greer, to uphold the assessed value of $30,000 for the vacant double-lot at 1209 Snapper Lane, as recommended by the Tax Appraisal Supervisor. Upon vote, the MOTION CARRIED UNANIMOUSLY. TAX APPEAL - SUZANNE R. MARTIN, 127 SOUTH COLLEGE ROAD, WILMINGTON, NC, TAX MAP NUMBER RO5508-002-001-023 Tax Administrator Robert Glasgow reported that Suzanne R. Martin, property owner of 127 South College Road, withdrew her appeal. TAX APPEAL - LOIS K. BENTON, TRUSTEE, 2882 WORTH DRIVE, WILMINGTON, NC, TAX MAP NUMBER RO6505-012-001-000 Mrs. Lois K. Benton, property owner of 2882 Worth Drive, was sworn in to give testimony. Tax Administrator Glasgow reported that the property, a single-family dwelling of 1,194 square feet, has an asbestos exterior and was built in 1956. The property also has a detached garage. Mrs. Benton spoke concerning the infringement of industrial businesses, such as the State Ports, Springer Oil, and the oil tanks along River Road, that affects the quality of life in the residential neighborhood. She felt that the presence of other commercial businesses, such as a nearby plumbing company, continues to destroy the character of the residential area. At least ten homes in the vicinity were in poor condition. Furthermore, the presence of subsidized housing devalues the neighborhood. She believed that the property taxes were too costly for retired people on a limited income. She read Bible passages that charged community leaders to take care of its widows. Tax Appraisal Supervisor Larry Bolick presented support of the assessment through comparable sales of the neighborhood. The comparable sales were: 2606 Dare Street which sold for $63,000 on December 1998, 218 Calhoun Drive which sold for $55,000, and 226 Calhoun Drive which sold for $48,000. Motion: At the conclusion of the hearings on this date, Vice Chairman Greer MOVED, SECONDED by Commissioner Birzenieks, to uphold the assessed value of $53,529, as recommended by the Tax Appraisal Supervisor. Upon vote, the MOTION CARRIED UNANIMOUSLY. TAX APPEAL - BENEDICT FORTUNATI, ET AL., 304 SOUTH SECOND STREET, WILMINGTON, NC, TAX MAP NUMBER RO5405-018-009-000 Mr. Benedict Fortunati, property owner of 304 South Second Street, was sworn in to give testimony. Tax Administrator Robert Glasgow reported that the property is a 2,270 square foot, two- story house built in 1910. The condition of the house is considered fair and it has a high quality grade. The property is in the Historic District and has an assessed value of $182,201. Mr. Fortunati spoke concerning his approach in determining the value of his house. He determined that the fair market value, based on the house being completely renovated, may be worth $252,000. Several improvements will need to be made before the house could be marketed. Renovations include plumbing of two bathrooms and a kitchen, removing and replacing the plaster in the kitchen area, and refinishing most of the woodwork. Some work has been completed, such NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 27 MINUTES OF SPECIAL MEETING, DECEMBER 20, 1999PAGE 698 as the replacement of the heating and air conditioning, a new roof, and repair of the front porch. Structural repairs are needed to support the new roof as well as porch areas. The exterior of the house needs repairing and repainting, new floors are needed, and storm windows need to be installed. The estimated costs of all the repairs is $116,000, with him serving as the contractor. Deducting the costs of the repairs from the fair market value will bring the value of the house to $135,000. Additional repairs are needed to the chimneys and the attic floor joist. He anticipated the fair market value of the house to be between $264,000 and $276,000 when the work is completed. Although the house may be located on the best block of the historic downtown area and is a beautiful house with a lot of potential, the assessed value is more than it should be for its current state. Furthermore, some property owners in the historic area, who are asking top dollar for their property, have had their houses for sale for several years. When he got a bank loan two or three years ago, an appraisal placed the value of the house at $150,000. He spoke of the difficulty in getting comparable sales of houses in the same condition as his property. Tax Administrator Glasgow commented that the Tax Department was unaware of the poor condition of the interior of home. Based on the condition, the Tax Department does have some leeway to reduce the assessed value by changing the condition from fair to poor. Motion: At the conclusion of the hearings on this date, Vice Chairman Greer MOVED, SECONDED by Commissioner Birzenieks, to reduce the assessed value by $30,000 to $152,201. In further discussion, Tax Appraiser Tom Nolan pointed out that an appraisal of two to three years ago listed the value at $150,000, which was before some of the major repair work was done. Motion: Vice Chairman Greer withdrew his first motion and then MOVED, SECONDED by Commissioner Birzenieks, to reduce the assessed value by $20,000 to $162,201. Upon vote, the MOTION CARRIED UNANIMOUSLY. TAX APPEAL - AHMED AND CYNTHIA A. SINGER, 2318 WRIGHTSVILLE AVENUE, WILMINGTON, NC, TAX MAP NUMBER RO5412-011-019-001 Tax Administrator Robert Glasgow reported the appellants, Ahmed and Cynthia Singer were not present to give their appeal. The property is a 1,096 square foot, one-story condominium located in Trolley Path in the Spofford Circle neighborhood. The appellant felt that areas adjacent to his property were undesirable locations and were high crime areas. Although the property was purchased for $100,000, the appellant did not feel he could resell the property for that amount. However, sales of similar properties within the complex supported the assessed value of $83,844. Motion: At the conclusion of the hearings on this date, Commissioner Birzenieks MOVED, SECONDED by Vice Chairman Greer, to uphold the assessed value of $83,844, as recommended by the Tax Appraisal Supervisor. Upon vote, the MOTION CARRIED UNANIMOUSLY. TAX APPEAL - GENE G. FOSTER, ET AL., 1 SALTMEADOW ROAD, WILMINGTON, NC, TAX MAP NUMBER RO4520-003-007-000 Tax Administrator Robert Glasgow reported that the appellant, Gene G. Foster, was not present to give his appeal. The property is an irregular shaped lot on Figure Eight Island with a southern exposure fronting Masons Channel. A pier is located on the property. The appellant felt that the assessed value was significantly above market value. However, the assessment of $403,626 is supported by sales of similar lots on Figure Eight Island. Motion: At the conclusion of the hearings on this date, Commissioner Birzenieks MOVED, SECONDED by Vice Chairman Greer, to uphold the assessed value of $403,626, as recommended by the Tax Appraisal Supervisor. Upon vote, the MOTION CARRIED UNANIMOUSLY. TAX APPEAL - CHARLES PAONE, JR. ET AL., 8528 BALD EAGLE LANE, WILMINGTON, NC, TAX MAP NUMBER RO3805-006-003-000 Mr. Charles Paone, Jr., property owner of 8528 Bald Eagle Lane, was sworn in to give testimony. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 27 MINUTES OF SPECIAL MEETING, DECEMBER 20, 1999PAGE 699 Tax Administrator Robert Glasgow reported that the property at 8528 Bald Eagle Lane is a one-story brick ranch built in 1952 with 2,294 square feet of living space. Additionally, a brick guest house with a two car garage is located on the property. The assessed value is $695,835. The appeal is based on a decrease in the fair market value caused by the damage from recent hurricanes. Mr. Paone spoke on the overall condition of the house. Because of recent hurricanes, damage has occurred that has caused rot and roofing problems. He felt his assessed value was significantly higher than comparable sales of homes of similar size, condition, and age in his neighborhood. In September 1998, the 2,400 square-foot house at 8124 Bald Eagle Lane sold for $590,000. The house at 8340 Bald Eagle Lane sold for $590,000, although the assessed value was $772,227. Another house at 8300 Bald Eagle Lane sold for $640,000. However, the tax assessments for new houses seem to be consistent with the selling price. He requested the Board to reduce the property value from $695,835 to $590,000. The land was assessed at $474,995; but he felt the assessed value of the structures at $219,161 was well above the value based on the condition of the house. The 561 square-foot guest house and garage are assessed at $53,792. The primary residence has a value of $165,369, but is 50 years old. The kitchen and bathrooms are in their original conditions and need to be upgraded. The house was renovated in the 1980s when sections to the foyer and master bedroom were added. Tax Administrator Glasgow responded that the comparable sales that Mr. Paone used were for 1999 sales, which would not be the same as the values of January 1, 1999. He noted that the market has changed considerably since that time. Tax Appraisal Supervisor Larry Bolick stated that the assessed value is supported by a sale in January 1999, at $1,050,000 for 8320 Bald Eagle Lane. Other comparable sales were 8212 Bald Eagle Lane, which sold for $850,000, and 8220 Bald Eagle Lane, which sold for $885,000. Furthermore, Mr. Paone commented on the Commissioners allowing an 80% increase in the assessed value and a higher tax rate at the same time, which resulted in a tax increase of 60% for him. He felt that the County should have leveled out the tax rate so that the impact from the reevaluation would have been more consistent. He spoke of the groundwater condition in the Porters Neck area, and said that any valuation of property should consider that factor. The demands on well water from the housing developments and golf courses should be considered. Also, the impact of hurricanes since 1997 has degraded his property further by the loss of trees and erosion of the waterfront. Retaining walls and piers were lost because of the storms, and the condition of the interior of the house deteriorated also. At the conclusion of the hearings on this date, Tax Appraiser Cheryl Roberts responded to questions pertaining to the condition of the structures. She also pointed out that the lot is on one of the highest elevations in the Porter’s Neck area and that one of the comparable sales Mr. Paone used was for one of the lowest elevations and adjacent to an easement. Motion: Commissioner Howell MOVED, SECONDED by Commissioner Birzenieks, to uphold the assessed value of $695,835, as recommended by the Tax Appraisal Supervisor. Upon vote, the MOTION CARRIED UNANIMOUSLY. TAX APPEAL - WALTER C. WORSLEY, III, 2111 HARBORWAY DRIVE, WILMINGTON, NC, TAX MAP NUMBER RO5115-006-007-000 Mr. Walter C. Worsley, III, property owner of 2111 Harborway Drive, was sworn in to give testimony. Tax Administrator Robert Glasgow reported that the property is a vacant buildable lot facing the golf course on Harborway Drive in Landfall Subdivision. The Tax Department lowered the value to $114,999 in April 1999, after reviewing the land values in Landfall to insure accurate market values. Mr. Worsley spoke concerning his efforts in trying to sell the property for the last year. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 27 MINUTES OF SPECIAL MEETING, DECEMBER 20, 1999PAGE 700 He had listed the property for $125,000 in October 1998, and lowered the price to $115,000 in February 1999, because he had not received any interest from potential buyers. He has since lowered his price to $99,900. He felt that the County should not assess the property for more than he could sell it. He requested the assessed value be reduced to $95,000. Tax Appraisal Supervisor Larry Bolick stated that similar lots were sold in 1998 for $116,000, $124,000, and $115,000, which are comparable to the value of Mr. Worsley’s property. Adjustments were made in April to lower Mr. Worsley’s property from $125,000 to $114,999. He recommended to uphold the assessed value. Motion: At the conclusion of the hearings on this date, Commissioner Birzenieks MOVED, SECONDED by Commissioner Howell, to uphold the assessed value of $114,999, as recommended by the Tax Appraisal Supervisor. Upon vote, the MOTION CARRIED UNANIMOUSLY. TAX APPEAL - JERRY WILLIAM ELLISBERG, 2504 NORTH LUMINA AVENUE EXT., WRIGHTSVILLE BEACH, NC, TAX MAP NUMBER RO5806-001-001-009 Mr. Jerry William Ellisberg, property owner of 2504 Lumina Avenue Extension, Unit C-9 of Wrightsville Dunes, was sworn in to give testimony. Tax Administrator Robert Glasgow reported that the property is an oceanfront condominium unit on the first floor of Wrightsville Dunes, located at the northern end of Wrightsville Beach. The unit contains 1,594 square feet and was built in 1987. Mr. Ellisberg spoke of the difference in quality and amenities of the eight buildings in the Wrightsville Dune complex, which were built at different times by different developers and contractors. He noted that the sale of three units within his building should denote the value of his unit. However, the sale prices included furnishings which the Machinery Acts does not allow in the property tax assessment. In determining the value, the tax appraisers may use the revenue stamps on sales recorded in the Register of Deeds, but the recorded sale does not stipulate whether furnishings are included in the sale price. Most of the furnishings have been replaced in the units because of damage done by recent hurricanes; and, in most cases, the value of these furnishings was included in the sales price. Realtors have told him that the value of the furnishings would be between $20,000 to $40,000. He estimated the value of his furnishings to be $25,000. Another factor to consider was that two of the sold units included garages. Some garage units have been sold to other owners for $25,000. Also, market value of condo units increases between $5,000 and $6,000 per floor level. His unit is on the first floor, but two of the comparable sales were on other levels and one unit was an end unit for a townhouse on two floors. He suggested that the assessed value of $294,000 was a fair amount for his property. Tax Appraisal Supervisor Larry Bolick responded that garages were not charged to any unit because it is open space under the condo and the deeds are not recorded with garages. Regarding the furnishings, the value would be nominal in a $200,000 to $300,000 sale. Comparable sales of the unit were $365,000 for Unit C4, $387,00 for Unit C11, and $362,000 for Unit D7. The assessed value for each unit is $354,103, and does not change with the floor level. Mr. Ellisberg replied that garages have been assigned to some of the units, but there are no litigations over the ownership. Some garages have been sold to other unit owners. Tax Administrator Glasgow stated that sometimes condo units are purchased as rental investments and may include personal property in the transaction. In the future, the Tax Department may need to contact the buyer and seller to find out if personal property is included because the selling price is a basis for value. Motion: At the conclusion of the hearings on this date, Commissioner Howell MOVED, SECONDED by Commissioner Birzenieks, to uphold the assessed value of $354,103, as recommended by the Tax Appraisal Supervisor. Upon vote, the MOTION CARRIED UNANIMOUSLY. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 27 MINUTES OF SPECIAL MEETING, DECEMBER 20, 1999PAGE 701 TAX APPEAL - CLAIRE F. FUNDERBURG, 4 CHANNEL AVENUE, WILMINGTON, NC, TAX MAP NUMBER RO6308-012-002-000 Mrs. Claire F. Funderburg, property owner of 4 Channel Avenue, was sworn in to give testimony. Tax Administrator Glasgow reported that the property, located on Wrightsville Beach, is a typical older beach home built in 1934 and includes rental units. A bulkhead and pier are located on the property and retail shops and restaurants are nearby. Mrs. Funderburg spoke of how the character of Wrightsville Beach has changed from a family oriented area because of the influx of growth. Property values have increased so much that senior citizens living on North Channel Drive and other locations on the beach are having to sell their properties because of the high taxes. She felt the value of her property should be reduced because the businesses behind her house have lowered the quality of living in the residential area. She is needing to sell her property and has it listed for $500,000. Initially, Century 21 Real Estate listed the property for $600,000, but nobody wants to purchase it because the house is too old, the pier is falling in, and the steps to the water have deteriorated. Mrs. Funderburg complained of the problems associated with having the bars behind her house. Young people leaving the bars late at night are loud, trespassed on her property to relieve themselves, and leave trash for others to pick up. Tax Appraisal Supervisor Larry Bolick stated that the assessed value of $599,939 is supported by comparable sales: 10 Channel Drive sold for $801,500; 202 N. Channel Drive sold for $562,500, which is very similar to Mrs. Funderburg’s property; and 32 Greensboro Street sold for $775,000. Mrs. Funderburg responded that having three beer parlors behind her house affects the value of her house, whereas those listed properties did not have this problem. She urged the Board to reduce the value of her property, in order to reduce her taxes. Motion: At the conclusion of the hearings on this date, Vice Chairman Greer MOVED, SECONDED by Commissioner Birzenieks, to reduce the assessed value of $599,939 by 10% because of the commercial encroachment. Upon vote, the MOTION CARRIED UNANIMOUSLY. TAX APPEAL - LEWIS AND MARJORIE A. KURTZMAN, 5613 KEWSICK COURT, WILMINGTON, NC, TAX MAP NUMBER RO6713-008-004-000 Tax Administrator Robert Glasgow reported the property owners, Lewis and Marjorie Kurtzman, have met with the Tax Department and have agreed with the revised assessment of $384,998. The two-story, wood-frame house had stucco (EFIS) siding removed and it was replaced with lap siding in 1998. Comparable sales support the new value. Motion: At the conclusion of the hearings on this date, Commissioner Birzenieks MOVED, SECONDED by Vice Chairman Greer, to uphold the assessed value of $384,998, as recommended by the Tax Appraisal Supervisor. Upon vote, the MOTION CARRIED UNANIMOUSLY. TAX APPEAL - MARY F. GORNTO, ET AL., 301 SOUTH LUMINA AVENUE, WRIGHTSVILLE BEACH, NC, TAX MAP NUMBER RO6312-006-004-000 Mr. Alex Murchison, part owner of 301 South Lumina Avenue, was sworn in to give testimony. Tax Administrator Glasgow reported that the property at 301 South Lumina Avenue in Wrightsville Beach is a typical older beach house built in the 1920's. The house is maintained as a summer home. A small cottage is located behind the main house. The property is located adjacent to and on the south side of the Blockade Runner Hotel. Mr. Murchison spoke of the circumstances concerning the easement between his property NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 27 MINUTES OF SPECIAL MEETING, DECEMBER 20, 1999PAGE 702 and the Blockade Runner Hotel. The Town of Wrightsville Beach took 15 feet of his property for a public access, which left a 35-foot frontage. Having the public access next to his property has generated more noise, congestion, trash, parking problems, and vandalism. Furthermore, new zoning requirements will restrict the use of any new development on the property. He requested the value be reduced to $450,000. Comparable properties sold were 50 feet in width instead of 35 feet for his property. Tax Appraisal Supervisor Larry Bolick stated that the property was reduced by $147,000, after recognizing the loss of 15 feet for the public access. The effective age and condition of the residence was reflected in the change in value. The revised assessed value is supported by the following sales: 769 S. Lumina Avenue sold for $737,500, 405 S. Lumina Avenue sold for $850,000, and 409 S. Lumina Avenue sold for $950,000. Motion: At the conclusion of the hearings on this date, Vice Chairman Greer MOVED, SECONDED by Commissioner Birzenieks, to reduce the assessed value of the land by 10% because of the impact of the public access on the property. Upon vote, the MOTION CARRIED UNANIMOUSLY. TAX APPEAL - SUSAN ELLEN AND HOWE WAIN, ET AL., 819 SOUTH LUMINA AVENUE, WRIGHTSVILLE BEACH, NC, TAX MAP NUMBER RO6319-011-010-000 Mr. Howe Wain, property owner of 819 South Lumina Avenue, was sworn in to give testimony. Tax Administrator Glasgow reported that the property at 819 South Lumina Avenue is an older wooden home of Wrightsville Beach. The land value of $667,299 is consistent with similar sized lots and location. The house value is $92,130. Mr. Howe Wain spoke concerning the problem of the property being next to a beach public access. He complained that visitors to the beach often drive on his property, leave litter, and invade his privacy. Some of his personal belongings have been stolen. Property owners, who are not located next to a beach access do not have the same public nuisances that he does and he felt his assessed value should be reduced. He stated that he would have difficulty selling his property because of the problems associated with the location. An appraisal, prior to Fran, placed a value of $315,000 for the unit. Tax Appraisal Supervisor Larry Bolick stated that an adjustment made in April reduced the value of the house to $47,748 to address some of his concerns. However, comparable sales, such as 405 S. Lumina selling for $850,000, 409 S. Lumina selling for $950,000, and 769 S. Lumina Avenue selling for $737,500, supported the assessed value of $759,929. Tax Administrator Glasgow stated that the tax appraisers had considered the nuisances of a beach access when the property was reduced in April. Motion: At the conclusion of the hearings on this date, Commissioner Birzenieks MOVED, SECONDED by Vice Chairman Greer, to reduce the assessed value by a 10% locational obsolescence. Upon vote, the MOTION CARRIED UNANIMOUSLY. TAX APPEAL - BESSIE M. HERN, 305 EAST MCCLURE CIRCLE, WILMINGTON, NC, TAX MAP NUMBER RO1110-004-004-000 Tax Administrator Robert Glasgow reported that the property, a one-story home in Shearin Hills, has 1,040 square feet of living space. The owner, Bessie Hearn, felt that the value was too high and estimated the value to be $65,500. However, the comparable sales supported the assessed value of $73,522. Motion: At the conclusion of the hearings on this date, Commissioner Birzenieks MOVED, SECONDED by Commissioner Howell, to uphold the assessed value of $73,522, as recommended by the Tax Appraisal Supervisor. Upon vote, the MOTION CARRIED UNANIMOUSLY. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 27 MINUTES OF SPECIAL MEETING, DECEMBER 20, 1999PAGE 703 TAX APPEAL - H. P. LAING, 4906 ACRES DRIVE, WILMINGTON, NC, TAX MAP NUMBER RO3518-001-004-000 H.P. Laing, property owner of 4906 Acres Drive, withdrew the appeal. TAX APPEAL - RICHARD B. AND CHARLENE F. BOYD, 6908 ESCHOL COURT, WILMINGTON, NC, TAX MAP NUMBER RO6714-004-031-000 Mr. Richard B. Boyd, property owner of 6908 Eschol Court, was sworn in to give testimony on his appeal. Tax Administrator Glasgow reported that the property is a one-story 1998 custom-built brick home in Windward Oaks Subdivision. The house consists of 2,237 square feet of living space on a .77 acre lot, and has the assessed value of $298,067. Mr. Boyd spoke concerning the effect of market conditions on the value of his house. He felt that the county seemed to be over-built, and that the City’s Phase II Annexation Plan has affected the value of his home. Recent sales have indicated a reduction of $50,000 for houses in the area. A downward trend in home sales is supported by the number of homes on the market that have not been sold and for which the selling price has been reduced. He stated that four homes in the Windward Oaks Subdivision that are larger than his home have sold for between $255,00 and $299,000. Additionally, he thought that the Tax Department was inconsistent in applying the values to neighboring subdivisions. The land value in Halcyon Forest, a subdivision behind Windward Oaks, was assessed at $35,000, while land assessments in Windward Oaks Subdivision range from $58,500 to $65,000. He has a 60 foot drainage ditch behind his property and a 30 foot drainage ditch on the right hand side of the lot which will affect the market value of the property. He requested the Board to reduce the evaluation by 10% to give him a fair and equitable assessment. Tax Appraisal Supervisor Larry Bolick responded that Mr. Boyd’s lot was reduced by 10% in consideration of the drainage easements on his property. He commented that Mr. Boyd’s comparable sales were based on the selling prices of spec houses which reflect the quality grades of the homes. The Tax Department used comparable sales that were found in Windward Oaks on Finian Drive. One house sold in December 1998 for $360,000 and the tax value was $362,447. He recommended to uphold the assessed value. Tax Appraiser Tom Nolan stated that Halcyon Subdivision and Windward Oaks Subdivision were of two different qualities. Initially, the plans for Windward Oaks showed a club house, pool and other common areas. Removing those areas from the plans have caused the prices to go down. In Halcyon, the land value was included in the selling price of the homes. The assessed value of the land at $35,000 was in line with the selling prices of the property. Mr. Boyd replied that he did not think there was $20,000 to $30,000 difference between the land value of two adjacent subdivisions. He felt the assessment should be changed because of changes in the development of the subdivision. The current builder is building less expensive single-story homes. The Tax Department had given an adjustment because some of the upgrades in furnishings were included in the purchase price. Motion: At the conclusion of the hearings on this date, Commissioner Birzenieks MOVED, SECONDED by Commissioner Howell, to uphold the assessed value of $298,067, as recommended by the Tax Appraisal Supervisor. Upon vote, the MOTION CARRIED UNANIMOUSLY. TAX APPEAL - AUGUST J. LICHTNER, JR., 329 FORT FISHER BOULEVARD SOUTH, KURE BEACH, NC, TAX MAP NUMBER RO9217-019-010-000 Tax Administrator Glasgow reported that the appellant, August J. Lichtner, was not present to give his appeal. The property, an oceanfront duplex in Kure Beach, has 2,114 square feet of living space and has wood panel exterior. Mr. Lichtner provided land values that were less than his, but upon the County’s review, those land values were increased. The adjoining owner has his property listed for sale at $60,000 more than the assessed value. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 27 MINUTES OF SPECIAL MEETING, DECEMBER 20, 1999PAGE 704 Motion: At the conclusion of the hearings on this date, Commissioner Birzenieks MOVED, SECONDED by Vice Chairman Greer, to uphold the assessed value of $252,983, as recommended by the Tax Appraisal Supervisor. Upon vote, the MOTION CARRIED UNANIMOUSLY. TAX APPEAL - MALCOLM C. AND PRISCILLA MOORE, 2608 MARKET STREET, WILMINGTON, NC, TAX MAP NUMBER RO3518-001-004-000 Mr. Malcolm C. Moore, property owner of 2608 Market Street, was sworn in to give testimony. Tax Administrator Robert Glasgow reported that the property, a one and one-half story brick house with 4,098 square feet of heated space, is on a lot facing Market Street. The house has a 150 grade and is in good condition for a house built in 1940. The property has a swimming pool and a detached garage. The land value for this property, as well as for other properties along Market Street, was reduced by 50% because of its location on Market Street. Mr. Moore spoke concerning the County placing his home in the same classification as the homes in the “affluent” Forest Hills area. He talked about the disadvantages of having a house located on Market Street. The noise and pollution from traffic as well as being in a high-crime area were factors the Commissioners should consider when linking his home with the Forest Hills neighborhood. In the past five years, a new boat, motor and trailer, as well as other items have been stolen from his property. He stated that he and his wife had invested a lot of time and money into their home and that he should not be penalized for making that investment. Mr. Glasgow responded that the Tax Department listed the neighborhoods on tax records for the purpose of identification for the appraiser. A certain value is not affixed to a particular neighborhood except for the land value and the land value is based upon sales. The Forest Hills neighborhood does have an indication of high value because of the large houses in the area and it being an old established neighborhood, which is determined by the market. He explained that the land value along Market Street has a 50% reduction in value because of the traffic congestion and pollution problems on Market Street. Normally, a $900 per front-foot rate is applied. Tax Appraisal Supervisor Larry Bolick stated that the assessment is supported by comparable sales in the Forest Hills neighborhood between $312,500 and $368,000. In visiting the property, the appraiser found that a basement was not identified and assessed. The property was assessed an additional $32,260 for the basement, which increased the total assessment to $411,123. Upon hearing of the increased assessment, Mr. Moore said this was typical of government to increase taxes for someone who appears before them to request a decrease. He was very angry and subsequently left the meeting. Vice Chairman Greer reiterated his concern that it may appear that the Tax Department is finding additional assessments whenever an individual files an appeal of their taxes. He felt that it was telling the taxpayers in New Hanover County if they appeal their tax assessment, the County will increase their taxes. He did not feel the County should assess anything that they find while reviewing an appeal. Commissioner Howell asked for more information about the 50% reduction for property on Market Street. Mr. Glasgow responded that because of factors, such as egress and ingress on a busy street and continual noise from traffic, residential properties are given a 50% reduction. Vice Chairman Greer commented that although the property has a very nice house on it, there is a detriment to it because of its location. A home on a busy street will have less value than one in a quiet residential area. He did not think the lot was worth $90,000 because of having a house on it. If the property was used commercially, the value should be more. Mr. Glasgow responded that a functional obsolescence could be applied to the value of the house. If there is a condition or detriment that affects the value, a percentage can be applied from NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 27 MINUTES OF SPECIAL MEETING, DECEMBER 20, 1999PAGE 705 0% to 100% against the value of the building and not the land. He suggested that the Board apply a 25% obsolescence to the house and basement, which would reduce the assessed value of the house to $222,704; the land value would remain unchanged at $89,186. Vice Chairman Greer suggested a 10% reduction on the house plus a $20,000 reduction on the land value. Mr. Glasgow advised that if a reduction is applied to Mr. Moore’s land value, then other land values will need to be reduced along Market Street. Currently, the land values are consistent. Motion: At the conclusion of the hearings on this date, Commissioner Birzenieks MOVED, SECONDED by Vice Chairman Greer, to apply a 25% locational obsolescence on the assessed value of the house and basement. Upon vote, the MOTION CARRIED UNANIMOUSLY Further discussion was held on the need to protect individuals who are being priced out of their homes because they cannot afford their taxes and individuals who make improvements to homes located in undesirable locations, which is important to the County and community. TAX APPEAL - QUAIL FOREST ASSOCIATES, 706 MONTCLAIR DRIVE WILMINGTON, NC, TAX MAP NUMBER RO3518-001-004-000 Tax Administrator Robert Glasgow reported that the appellant, Mr. Neal Hunt of Quail Forest Apartments, was to present his appeal to the Board. Since Mr. Hunt was not present, Mr. Glasgow stated that the appellant believed the appraisal method used by the Tax Department was improper and that the real estate taxes should be included when calculating the income approach to value. Mr. Hunt felt that the assessed value should be $1,450,000 to $1,500,000. Based on conversations with the Institute of Government concerning the appropriate method to calculate the income approach to value, the Tax Department recalculated the value to be $1,669,101. Motion: At the conclusion of the hearings on this date, Commissioner Birzenieks MOVED, SECONDED by Commissioner Howell, to uphold the assessed value of $1,669,101, as recommended by the Tax Appraisal Supervisor. Upon vote, the MOTION CARRIED UNANIMOUSLY. TAX APPEAL - LAKE FOREST, INC., 1624 LAKE BRANCH DRIVE, WILMINGTON, NC, TAX MAP NUMBER RO3518-001-004-000 Tax Administrator Robert Glasgow reported that after meeting with the appellant, Alice Cumberworth, Project Manager for the Lake Forest Apartments, the assessed value of both parcels was reduced from $9,078,395 to $7,760,678. By increasing the effective age of the miscellaneous improvements, the value was reduced by $1,317,717, which makes the value in line with current market value. Motion: At the conclusion of the hearings on this date, Vice Chairman Greer MOVED, SECONDED by Commissioner Birzenieks, to reduce the assessed value to $7,760,678, as recommended by the Tax Administrator. Upon vote, the MOTION CARRIED UNANIMOUSLY. TAX APPEAL - JOHN B. AND ADELAIDE E. BRADFORD, 4909 DEWARS CIRCLE, WILMINGTON, NC, TAX MAP NUMBER RO7107-014-022-000 Tax Administrator Robert Glasgow reported that the property is a two-story wood frame house in Stranton Village at Masonboro Forest. The appellant, John B. and Adelaide Bradford, filed an appeal based on the fact that $20,000 of upgrades in furnishings were included in the purchase price of their home. After reviewing the information provided, the Tax Department agreed and reduced the value. Motion: At the conclusion of the hearings on this date, Commissioner Birzenieks MOVED, SECONDED by Vice Chairman Greer, to reduce the assessed value from $234,622 to $224,729, as recommended by the Tax Appraisal Supervisor. Upon vote, the MOTION CARRIED UNANIMOUSLY. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 27 MINUTES OF SPECIAL MEETING, DECEMBER 20, 1999PAGE 706 ADJOURNMENT Vice Chairman Greer expressed concern that when some of the taxpayers appealed their value that the Tax Department increased the taxpayer’s assessed value. He felt that when discoveries are made while reviewing an appeal, the increased assessment should not apply to the current year. It would appear that the appellants were being penalized for making an appeal on their value. Any new discovery should be picked up later at the regular time for listing property. Commissioners Birzenieks commented that he felt people would lose faith in government, if the County increased tax values whenever an appeal was made. Tax Administrator Glasgow stated that the tax appraisers will need to confirm the listing before getting too far into the appeal process. Vice Chairman Greer commented that the appeal process should allow someone the right to appeal before government without consequences. If something is found because of the appeal, the County should bring it forward at the next appropriate time and not during the appeal process. Deputy County Attorney Kemp Burpeau replied that the North Carolina Machinery Act would compel the Tax Department to identify any discrepancy on the tax record card in order for property to be taxed at its fair market value. When something is identified that is not listed, the law requires the Tax Department to make the discovery, however, it does not have to be effective in that year. Tax Administrator Glasgow pointed out that when reviewing a property for an appeal, the assessment can be increased or decreased because of findings at the site. However, the Board can direct staff to list the discovery for taxing in the next year, effective January 1. Motion: There being no further appeals, Commissioner Howell MOVED, SECONDED by Vice Chairman Greer, to adjourn the meeting. The meeting adjourned at 5:55 p.m. Respectfully submitted, Teresa P. Elmore Deputy Clerk to the Board