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HomeMy WebLinkAbout2021_10_12 BOER MINUTES DocuSign Envelope ID:CD609373-3AA7-4A4A-AD96-60FEBC2424AD MINUTES Board of Equalization and Review Date: October 12,2021 Board Members Present: Hunter Beattie, Chair Barbara Levine,Regular Leon Meyers,Regular Staff Members Present:Nancy Freeman, Tax Administrator Roger Gunn,Real Property Appraisal Manager Kelly Wells, Chief Appraiser Chris Mashburn, Commercial Appraiser with CCA Christy Carden,Appraiser Vrinlli Flores,Administrative Assistant SCHEDULE: 9787141770 Obey Creek Ventures LLC NOT APPEARING 9787144852 Obey Creek Ventures LLC NOT APPEARING 9788308690 CIG Chapel Hill LLC APPEARING 9788402618 CIG Chapel Hill LLC APPEARING 1054345 Aanika Hotels LLC dba Siena Hotel NOT APPEARING 1062694 KIPOS Restaurant NOT APPEARING 9789334067 Stratford Investments LLC Et al NOT APPEARING 9799242451 RRPIV Village Plaza Chapel Hill LP NOT APPEARING 9880171994 NR Edge Property Owner LLC NOT APPEARING 9880088353 NR Edge Property Owner LLC NOT APPEARING 9880082292 NR Edge Property Owner LLC NOT APPEARING Chair Hunter Beattie called the meeting to order at 1:00 PM. OBEY CREEK VENTURES LLC PIN 9787141770 Ryan Alexander Carr elected not to appear before the Board on behalf of the appellant and requested that the submitted documentation serve as the appeal. The appellant is appealing the value of an .85 acre vacant land tract located on S. Columbia Street, Chapel Hill. The current assessed value of the property is $1,295,900.00. A list of evidence follows: APPELLANT COUNTY 9787141770 Appeal 9787141770 County DocuSign Envelope ID:CD609373-3AA7-4A4A-AD96-60FEBC2424AD Kelly Wells represented the County and stated the subject property is 0.85 acres of vacant commercial land located on US 15-501 across from Southern Village in Chapel Hill. The appellant's opinion of value is $647,950 but no supporting evidence was submitted to support this opinion. Ms. Wells stated that after review of the property,the County recommends applying a-20%topography adjustment for the slope of the land,making the subject's value more equitable with similar,nearby commercial land. This would reduce the value of the subject property from$1,295,900 to $1,036,700. The Board reviewed all documents and information provided by the appellant and the County. After deliberation and review, and due to a lack of supporting evidence from the appellant,Mr. Beattie made a motion to accept the County's revised value of$1,036,700.Ms. Levine seconded the motion and the motion carried. Yes: 3 Noes: 0 OBEY CREEK VENTURES LLC PIN 9787144852 Ryan Alexander Carr elected not to appear before the Board on behalf of the appellant and requested that the submitted documentation serve as the appeal. The appellant is appealing the value of a 10.93 acre property located on S. Columbia Street, Chapel Hill. The assessed value of the property is $10,960,800. A list of evidence follows: APPELLANT COUNTY 9787144852 Appeal 9787144852 County Kelly Wells represented the County and stated the subject property is 10.93 acres of commercial land located on US 15-501 across from Southern Village in Chapel Hill. There are three dilapidated homes on the parcel as well. The appellant's opinion of value is $3,528,400 but no supporting evidence for this opinion was submitted with the appeal. After reviewing the property and similar sales in the area,the County recommends further depreciating the homes from 90%to 99%, applying a-60%adjustment to the land for topography, shape, and flood plain,thereby reducing the value from$10,960,800 to $4,375,100 which is $400,000 an acre for the land and$3,100 for improvements. For comparison, a similar nearby property was sold in 2017 for$406,300 an acre. The Board reviewed all documents and information provided by the appellant and the County. After deliberation and review,Mr. Beattie made a motion to accept the County's revised value of$4,375,100. Mr. Meyers seconded the motion and the motion carried. Yes: 3 Noes: 0 AANIKA HOTELS LLC DBA SIENA HOTEL ACCOUNT 1054345 Sean Singhi elected not to appear before the Board and requested that the submitted documentation serve as the appeal. The appellant is requesting a compromise in taxes associated with a discovery of business DocuSign Envelope ID:CD609373-3AA7-4A4A-AD96-60FEBC2424AD personal property located at 1505 E. Franklin Street,Chapel Hill. The total amount of listing penalties that are the subject of the request for compromise is $2,535.67. A list of evidence follows: APPELLANT COUNTY 1054345 Appeal 1054345 County Christy Carden represented the County and stated the listing penalties were computed based on a discovery resulting from an audit performed by Tax Management Associates. Ms. Carden states the appellant accepted the discovery values for tax years 2016-2021 and is appealing the listing penalties associated with these discovery values.Ms. Carden stated the request is due to economic hardships that the hotel and the hospitality industry has been facing for the last 20 months due to COVID. Mr. Beattie was concerned how COVID was the explanation of why the furniture and fixtures were under reported for tax years 2016-2019. The Board reviewed all documents and information provided by the appellant and the County. After deliberation and review,Mr.Beattie made a motion to deny the request to compromise the listing penalties. Ms. Levine seconded the motion and the motion carried. Mr. Meyers did not agree. Yes: 2 Noes: 1 KIPOS RESTAURANT ACCOUNT 1062694 The appellant elected not to appear before the Board and requested that the submitted documentation serve as the appeal. The appellant is requesting a compromise in taxes associated with a discovery of business personal property located at 431 W. Franklin Street, Chapel Hill. The total amount of listing penalties that are the subject of the request for compromise is $150.83. A list of evidence follows: APPELLANT COUNTY 1062694 Appeal 1062694 County Christy Carden represented the County and stated the appellant's request was due to the business being closed from March 2020 through most of the year,relocation, and the financial hardships brought on by COVID. Ms. Carden stated that the appellant had historically listed on time until tax years 2020 and 2021 The Board reviewed all documents and information provided by the appellant and the County. After deliberation and review,Mr. Beattie made a motion to grant the appeal to compromise the late listing penalties for Kipos Restaurant. Ms. Levine seconded the motion and the motion carried. Yes: 3 Noes: 0 DocuSign Envelope ID:CD609373-3AA7-4A4A-AD96-60FEBC2424AD NR EDGE PROPERTY OWNER LLC PIN 9880088353 Hailey Garrett elected not to appear before the Board on behalf of the appellant and requested that the submitted documentation serve as the appeal. The appellant is appealing the value of a 4.97 acre vacant property located on Village Center Drive, Chapel Hill. The current assessed value of the property is $4,473,000. A list of evidence follows: APPELLANT COUNTY 9880088353 Appeal 9880088353 County Kelly Wells represented the County and stated the appellant is appealing the valuation based on the value per acre of nearby commercial land, and the appellant suggests a lower valuation of$2,500,000 for the subject property.Ms. Wells stated that upon review of this property and the value per acre of commercial land in the area, it was determined that the average value per acre is $780,000. As a result of this review, Orange County recommends applying a-22%market adjustment to the land value thereby reducing the land value from$900,000 per acre to $780,000 per acre and then reducing the land value further with a- 10% size adjustment for a total revised valuation of$3,488,900. The Board reviewed all documents and information provided by the appellant and the County. After deliberation and review,Mr. Beattie made a motion to accept the County's revised value of$3,488,900 for the property. Mr.Meyers seconded the motion and the motion carried. Yes: 3 Noes: 0 NR EDGE PROPERTY OWNER LLC PIN 9880082292 Hailey Garrett elected not to appear before the Board on behalf of the appellant and requested that the submitted documentation serve as the appeal. The appellant is appealing the value of a vacant 14.1 acre property located at 696 Carraway Crossing, Chapel Hill. The current assessed value of the property is $9,870,000. A list of evidence follows: APPELLANT COUNTY 9880082292 Appeal 9880082292 County Kelly Wells represented the County and stated the property consists of 14.1 acres of vacant commercial land. The appellant is appealing the valuation based on the value per acre of nearby commercial land, and the appellant suggests a lower valuation of$4,500,000 for the property. Ms.Wells stated that Orange County reviewed the subject property and the value per acre of similar commercial land in the area, and it was determined that the average value per acre is $780,000.As a result of this review, Orange County recommends applying a-22%market adjustment to the land value and then a-25%size adjustment to the land value for a total revised valuation of$585,000 per acre and an overall valuation of$8,248,500 for the property. DocuSign Envelope ID:CD609373-3AA7-4A4A-AD96-60FEBC2424AD The Board reviewed all documents and information provided by the appellant and the County. After deliberation and review,Mr. Beattie made a motion to accept the County's revised value of$8,248,500. Mr. Meyers seconded the motion and the motion carried. Yes: 3 Noes: 0 Mr. Beattie made a motion to recess the meeting until 1:45 PM. Ms. Levine seconded the motion and the Board recessed. Mr. Beattie called the meeting back to order at 1:45 PM. CIG Chapel Hill LLC PIN 9788308690 Alexander Carr appeared before the Board on behalf of CIG Chapel Hill LLC to appeal the value of property located at 186/221 Howell Street, Chapel Hill. The current assessed value of the property is $1,855,900. A list of evidence follows: APPELLANT COUNTY 9788308690 Appeal 9788308690 County Mr. Carr stated that the subject property is one of two separate parcels of student apartment properties along with PIN 9788402618 operated as one economic unit. The property was constructed in1967, renovated in the mid to early 2000s and most recently purchased in 2017. Mr. Carr stated the property has been struggling even before COVID,but based on an end of year 2020 income and expense analysis,the indicated value for the subject parcel was $1,422,976. Kelly Wells represented the County and reiterated that the property known as Ram's Horn Apartments spans across two parcels. Ms. Wells stated that the subject parcel consists of three buildings with a total of 4,992 square feet gross building area and has a current assessed value of$1,855,900. Ms. Wells stated that upon review of the total complex for both parcels by CCA,CCA weighted the sales comparison approach 45%and the income approach 55%for a reconciled valuation of both parcels of$4,987,757. This value was allocated between the two parcels based on the total square feet of the gross building area indicating a recommended value for the subject parcel of$1,507,926. As a result,Orange County recommends applying an economic market adjustment of E19 to the property value for a revised valuation of$1,503,200. The Board reviewed all documents and information provided by the appellant and the County. After deliberation and review,Mr. Beattie made a motion to accept the County's revised value of$1,503,200 for the subject property. Ms. Levine seconded the motion and the motion carried. Yes: 3 Noes: 0 DocuSign Envelope ID:CD609373-3AA7-4A4A-AD96-60FEBC2424AD CIG Chapel Hill LLC PIN 9788402618 Alexander Carr appeared before the Board on behalf of CIG Chapel Hill LLC to appeal the value of the property located at 201 Howell Street, Chapel Hill. The current assessed value of the property is $2,852,400.A list of evidence follows: APPELLANT COUNTY 9788402618 Appeal 9788402618 County Mr. Carr stated that the subject property is one of two separate parcels of student apartment properties along with PIN 9788308690 operated as one economic unit. Mr. Carr stated the property has been struggling even before COVID,but based on an end of year 2020 income and expense analysis,the indicated value for the subject parcel was $2,187,024. Kelly Wells represented the County and reiterated that the property known as Ram's Horn Apartments spans two parcels. The subject parcel consists of six buildings with a total of 11,520 square feet gross building area and has a current assessed value of$2,852,400. The appellant is appealing the valuation on the basis that the income and expenses from 2020 suggest a lower valuation of$1,524,858. Upon review of the total complex for both parcels by CCA, CCA weighted the sales comparison approach 45%and the income approach 55%for a reconciled valuation of$4,987,757. This value was allocated between the two parcels based on the total square feet of the gross building area indicating a recommended value for the subject parcel of$3,479,830. As a result of this review, Orange County recommends reducing the economic market adjustment from E30 of E15 for a revised valuation of $3,463,500 for the property. The Board reviewed all documents and information provided by the appellant and the County.After deliberation and review,Mr. Beattie made a motion to accept the County's revised valuation of $3,463,500. Ms. Levine seconded the motion and the motion carried. Yes: 3 Noes: 0 STRATFORD INVESTMENTS LLC ET AL PIN 9789334067 Alexander Carr elected not to appear before the Board on behalf of the appellant and requested that the submitted documentation serve as the appeal. The appellant is appealing the value of the property located at 881 Martin Luther King Jr Boulevard, Chapel Hill. The current assessed value of the property is $4,515,200. A list of evidence follows: APPELLANT COUNTY 9789334067 Appeal 9789334067 County Kelly Wells represented the County and stated the appellant is appealing the valuation of this 50 unit apartment property on the basis that the income and expenses from 2020 suggest a lower valuation of $3,800,000. Ms.Wells stated that upon review of this property by CCA, CCA weighted the sales comparison approach 45%and the income approach 55%for a reconciled valuation of$4,270,998 for the DocuSign Envelope ID:CD609373-3AA7-4A4A-AD96-60FEBC2424AD property. As a result of this review, Orange County recommends increasing the economic market adjustment on the property from E21 to E26 for a revised valuation of$4,229,500 for the property. The Board reviewed all documents and information provided by the appellant and the County. After deliberation and review,Mr. Beattie made a motion to accept the County's revised value of$4,229,500. Mr. Meyers seconded the motion and the motion carried. Yes: 3 Noes: 0 RRPIV VILLAGE PLAZA CHAPEL HILL LP PIN 9799242451 Hailey Garrett elected not to appear before the Board and requested that the submitted documentation serve as the appeal. The appellant is appealing the value of the property located at 255 S. Elliott Road, Chapel Hill. The current assessed value of the property is $14,464,800. A list of evidence follows: APPELLANT COUNTY 9799242451 Appeal 9799242451 County Kelly Wells represented the County and stated the appellant is appealing the valuation of the property known as the Elliott Square Shopping Center on the basis that the property's income and expenses from 2019 through 2020 suggest a lower valuation of$11,000,000. Ms. Wells stated that upon review of this property by CCA, CCA weighted the sales comparison approach 45%and the income approach 55%for a reconciled valuation of$13,230,230.As a result of this review, Orange County recommends applying an E09 economic market adjustment to the property for a revised valuation of$13,163,100. The Board reviewed all documents and information provided by the appellant and the County. After deliberation and review,Mr. Beattie made a motion to accept the County's revised value of$13,163,100. Ms. Levine seconded the motion and the motion carried. Yes: 3 Noes: 0 NR EDGE PROPERTY OWNER LLC PIN 9880171994 Hailey Garrett elected not to appear before the Board and request that the submitted documentation serve as the appeal. The appellant is appealing the value of the property located at 100 Village Center Drive, Chapel Hill. The current assessed value of the property is $6,874,500. A list of evidence follows: APPELLANT COUNTY 9880171994 Appeal 9880171994 County DocuSign Envelope ID:CD609373-3AA7-4A4A-AD96-60FEBC2424AD Kelly Wells represented the County and stated the property is a multi-tenant retail building located in the area known as Carraway Village. The appellant is appealing the valuation on the basis that the income and expenses from 2020 suggest a lower valuation of$4,000,000 for the property. Ms. Wells stated that upon review of this property by CCA, CCA weighted the sales comparison approach 50%and the income approach 50%for a reconciled valuation of$2,229,285 for the property. As a result of this review, Orange County recommends changing the market adjustment of the land from 200%to -22%for a revised valuation of$2,234,700. The Board reviewed all documents and information provided by the appellant and the County. After deliberation and review,Mr. Beattie made a motion to accept the County's revised value of$2,234,700. Ms. Levine seconded the motion and the motion carried. Yes: 3 Noes: 0 Having heard all of the appeals scheduled on this date,Mr. Beattie made a motion to adjourn this meeting at 2:11 PM. The motion was seconded by Mr. Meyers and the meeting was adjourned. �DIo1cuSSiign^ed by, A 6,�/N N ✓�N l`L RqRFIRF Hunter Beattie, Chair 4/1/2022 /DocuSigned by: 4/1/2022 Vrinlli Flores,Recording Secretary