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HomeMy WebLinkAbout2021_11_17 BOER MINUTES DocuSign Envelope ID: D94409AB-B2D5-4E05-B3FC-26A40C01CO2F MINUTES Board of Equalization and Review Date:November 17,2021 Board Members Present: Hunter Beattie, Chair Barbara Levine,Regular Ryan Petrone,Alternate Staff Members Present:Nancy Freeman, Tax Administrator Steven Chad Phillips,Deputy Tax Assessor Roger Gunn,Real Property Appraisal Manager Kelly Wells, Chief Appraiser Jimmy Milliken,Appraiser Cyle Anderson,Appraiser Chris Mashburn,Appraiser with CCA Vrinlli Flores,Administrative Assistant SCHEDULE: 9824980078 Python Enterprises LLC NOT APPEARING 9874501704 Marvin Barnes APPEARING 9890810552.004 Gerald Wilson APPEARING 9799141643 CCP Chapel Hill 0806 LP APPEARING 9880363419 Northwestern Mutual Life Insurance Company APPEARING 9799692931 Tri City Investments LLC APPEARING 9788276493 Chapel Hill Hotels LLC APPEARING 9788169824 Shortbread Lofts LLC APPEARING 9789198723 Waypoint UNC Chapel Ridge Owner LLC APPEARING 9799125797 RR-PV University Chapel Hill LP APPEARING 9778510698 The Chapel Hill Tennis Club Inc. NOT APPEARING 9798274764 Link Apartments Glen Lennox LLC NOT APPEARING 9789412394 Kairys Holding Company LLC NOT APPEARING Chair Hunter Beattie called the meeting to order at 12:59 PM. Python Enterprises LLC PIN 9824980078 Python Enterprises LLC 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 6921 Industrial Drive, Mebane. The current assessed value of the property is $2,983,200. A list of evidence follows: DocuSign Envelope ID: D94409AB-B2D5-4E05-B3FC-26A40C01CO2F APPELLANT COUNTY 9824980078 Appeal 9824980078 County Cyle Anderson represented the County and stated the appellant's opinion of value for the property is $1,800,000. The appellant provided an appraisal with this appeal which had an effective valuation date of August 9,2019 and an opinion of value of$1,800,000 for the property. Upon review of this property by CCA, CCA weighted the sales comparison approach at 50%and the income approach at 50% for a reconciled valuation of$1,924,264.As a result of this review, Orange County recommends applying an E36 economic market adjustment to the property for a revised valuation of$1,909,100 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 $1,909,100 for the property. Ms. Levine seconded the motion and the motion carried. Yes: 3 Noes: 0 THE CHAPEL HILL TENNIS CLUB INC. PIN 9778510698 Dave Pawloski elected not to appear before the Board on behalf of The Chapel Hill Tennis Club Inc. and requested that the submitted documentation serve as the appeal. The appellant is appealing the value of the property located at 403 Westbrook Drive, Chapel Hill. The current assessed value of the property is $3,007,000. A list of evidence follows: APPELLANT COUNTY 9778510698 Appeal 9778510698 County Kelly Wells represented the County and stated the appeal is based on multiple years of income and expense data and the bulk of the property being located in a flood plain suggesting a lower valuation of $1,250,000. Upon review of this property, CCA determined that the indicated value from the sales comparison approach is $2,448,097 with no indicated value by the income approach. As a result of this review, Orange County recommends increasing the market adjustment on the land from-90%to -93%,thereby reducing the valuation of the property from$3,007,000 to $2,433,100. 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 valuation of $2,433,100 for the property. Ms. Levine seconded the motion and the motion carried. Yes: 3 Noes: 0 DocuSign Envelope ID: D94409AB-B2D5-4E05-B3FC-26A40C01CO2F Link Apartments Glen Lennox LLC PIN 9798274764 Kevin Baker elected not to appear before the Board on behalf of Link Apartments Glen Lennox LLC and requested that the submitted documentation serve as the appeal. The appellant is appealing the value of the property located at 411 Flemington Drive, Chapel Hill. The current assessed value of the property is $42,461,800. A list of evidence follows: APPELLANT COUNTY 9798274764 Appeal 9798274764 County Kelly Wells represented the County and stated that the appeal is based on months of income and expense data and comparable rents suggesting a lower valuation of$36,090,000 for the property. Upon review of this property by CCA, CCA weighted the sales comparison approach at 45%and the income approach at 55%for a reconciled valuation of$39,203,160.As a result of this review, Orange County recommends adjusting the Economic Modifier from EI I to E18,thereby reducing the valuation of the property from$42,461,800 to $39,122,100. 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 valuation of $39,122,100 for the property. Ms. Levine seconded the motion and the motion carried. Yes: 3 Noes: 0 WILSON PIN 9890810552.004 Gerald Wilson appeared before the Board to appeal the value of the property located at 150 Providence Road Unit 100, Chapel Hill. The current assessed value of the property is $332,000. A list of evidence follows: APPELLANT COUNTY 9890810552.004 Appeal 9890810552.004 County The appellant stated he did not provide any comparable sales as evidence since there were no recent sales in the subject project but instead considered asking prices. The appellant stated he analyzed two other properties nearby, 141 Providence Road and 110 Conner Drive. These units are for sale at asking prices of$162/Square Foot and$169.97/Square Foot,respectively,both well below the $228.49/Square Foot valuation of the subject property. The appellant's opinion of value for the property is $250,000. Cyle Anderson represented the County and stated that the subject property is a 1,453 square foot office condominium built in 1997. Upon review of this property by CCA, CCA weighted the sales comparison approach at 50%and the income approach at 50%for a reconciled valuation of$248,419 for the property. As a result of this review, Orange County recommends applying an E 15 economic modifier to the property for a revised value of$281,200 for the property. DocuSign Envelope ID: D94409AB-B2D5-4E05-B3FC-26A40C01CO2F The Board reviewed all documents and information provided by the appellant and the County. After deliberation and review,Mr.Beattie made a motion accept the County's revised value of$281,200 for the property. Ms. Levine seconded the motion and the motion carried. Yes: 3 Noes: 0 BARNES PIN 9874501704 Dalton Burns appeared before the Board on behalf of Marvin Barnes to appeal the value of the property located at 1811 NC Highway 86 South,Hillsborough. The current assessed value of the property is $896,800. A list of evidence follows: APPELLANT COUNTY 9874501704 Appeal 9874501704 County The representative for the appellant stated that the appeal is based on the subject's land being inequitably assessed with neighboring parcels and should be assessed at approximately $7.58 per square foot or $326,700. The appellant stated an opinion of value of$549,900 for the property. Cyle Anderson represented the County and stated the subject property is a convenience store built in 1988. Upon review of this property by CCA, CCA weighted the sales comparison approach at 50%and the income approach at 50%for a reconciled valuation of$834,630. As a result of this review, Orange County recommends increasing the neighborhood modifier from E37 to E42 for a revised valuation of $825,600 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$825,600 for the property. Ms. Levine seconded the motion and the motion carried. Yes: 3 Noes: 0 Kairys Holding Company LLC PIN 9789412394 The appellant 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 721 Hillsborough Street, Chapel Hill. The current assessed value of the property is $945,900. A list of evidence follows: APPELLANT COUNTY 9789412394 Appeal 9789412394 County Kelly Wells represented the County and stated the subject property is a.58-acre commercial lot mproved with a single-family residence, and the appeal is based on the March 2021 purchase price of$530,000 for the property. Ms. Wells stated the new owners plan to demolish the building and no new improvement DocuSign Envelope ID: D94409AB-B2D5-4E05-B3FC-26A40C01CO2F plans have been finalized.Upon review of the property,the County recommends reducing the land valuation by applying a-50%market adjustment for location and use for a revised value of$507,400 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$507,400 for the property. Ms. Levine seconded the motion and the motion carried. Yes: 3 Noes: 0 Mr. Beattie made a motion to recess the meeting until 2:00 PM. Mr. Beattie called the meeting back to order at 1:59 PM. CCP Chapel Hill 0806 LP PIN 9799141643 Katie McGee appeared before the Board on behalf of CIG Chapel Hill 0806 LLC,to appeal the value of the property located at 1602 E. Franklin Street, Chapel Hill. The current assessed value of the property is $5,053,800. A list of evidence follows: APPELLANT COUNTY 9799141643 Appeal 9799141643 County The appellant is requesting a lower value for the subject property due to the property's 2020 income and expenses and poor financial performance. Ms.McGee summarized the income documentation provided to the Board members. In addition,Ms. McGee suggested adjustments to the County data offering corrections in square footage for three of the County's comparable properties, suggesting an average value of$78.20 per square foot or$3,279,000 for the subject property. Jimmy Milliken represented the County and stated the subject is known as Signature Health Care of Chapel Hill.Upon review of this property by CCA, CCA determined that the indicated value of the property by the sales comparison approach is $3,964,375. As a result of this review Orange County recommends increasing the market adjustment on the land from-30%to -50% and adding an E02 economic market adjustment to the property for a revised valuation of$3,952,900. Chris Mashburn from CCA verified that upon further analysis,the square footage of on one of the comparable properties agrees with the tax representative's square footage for that 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 reduce the valuation of the subject property to $3,279,000. Ms. Levine seconded the motion and the motion carried. Yes: 3 Noes: 0 DocuSign Envelope ID: D94409AB-B2D5-4E05-B3FC-26A40C01CO2F Northwestern Mutual Life Insurance Company PIN 9880363419 Tom Sanders appeared before the Board to appeal the value of 1.48 acres on Perkins Drive, Chapel Hill. The current assessed value of the property is $148,300. A list of evidence follows: APPELLANT COUNTY 9880363419 Appeal 9880363419 County The appellant provided a survey of the 1.48 acre property adjacent to an area apartment complex and explained that with a Duke Energy overhead power line easement and other easements through the site, the subject cannot be developed and generate income and is basically just a public use property. The appellant referred the Board to a similar nearby parcel,PIN 9880261499,which has a value of$13,700. Based on this property,the appellant feels the value of the subject property should be $20,075. Jimmy Milliken represented the County and stated that upon review of the subject property,the County determined that the property is not buildable and suggests the Use adjustment on the land be changed from-90%to -98%leading to a revised valuation of$29,700 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$29,700 for the property. Ms. Levine seconded the motion and the motion carried. Yes: 3 Noes: 0 Tri City Investments LLC PIN 9799692931 Michael Benak from McCarter&English appeared before the Board to appeal the value of the ouproperty located at 1801 Fordham Boulevard, Chapel Hill. The current assessed value of the property is $16,045,200.A list of evidence follows: APPELLANT COUNTY 9799692931 Appeal 9799692931 County The appellant stated that the prior assessment of the subject property was around$8 million and the current$125 per square foot valuation is significantly higher than the other Lowe's Home Improvement stores throughout the state. Mr. Benak referenced documentation and stated that his firm had represented Lowe's Home Improvement in many tax appeals throughout the state, and have consistently settled these appeals at$65 per square foot for these stores' values. Mr. Benak stated that the income approach for the subject property would indicate a value of$56 per square foot for the subject,but based on the values of other area Lowe's Home Improvements,the appellant is requesting a value of$60 per square foot or $7,686,000 for the subject property. Kelly Wells represented the County and stated that upon review of this property by CCA, CCA weighted the sales comparison approach at 40%and the income approach at 60% for a reconciled valuation of DocuSign Envelope ID: D94409AB-B2D5-4E05-B3FC-26A40C01CO2F $11,467,369 for the property.As a result of this review,the County recommends increasing the economic market adjustment on the property from E20 TO E43 for a revised valuation of$11,432,100. Chris Mashburn reviewed comparable properties of the appellant versus the County's comparable properties, explained rental rates and the income approach with vacancy and collection loss. Mr. Mashburn explained properties like the subject have minimal vacancy with most being triple net leases. As no lease information has been furnished to the County, it was difficult for the County to determine accurate income and expense rates for the property. Mr. Benak stated that the County's vacancy percentage is too low as is the County's 5%expense rate. Mr. Beattie requested this appeal be continued in order to request legal advice from the County attorney and for the appellant to provide lease information to determine impact, including information on lease transactions. The Board reviewed all documents and information provided by the appellant and the County. After deliberation and review,Mr.Beattie moved that the Board continue the appeal to December 2,2022. Ms. Levine seconded the motion and the motion carried. Yes: 3 Noes: 0 Chapel Hill Hotels LLC PIN 9788276493 Hailey Garrett appeared before the Board on behalf of Chapel Hill Hotels LLC to appeal the value of the property located at 214 W. Rosemary Street, Chapel Hill. The current assessed value of the property is $15,344,400.A list of evidence follows: APPELLANT COUNTY 9788276493 Appeal 9788276493 County Ms. Garrett stated the subject property is the AC Marriott Hotel and the impact of COVID-19 and an analysis of the last three years income performance supports an opinion of value around$12,600,000. Ms. Garrett stated that comparable hotels in the market are assessed around$52,000 to $112,000 per key with an average around$87,000 a key. Ms. Garrett explained the supporting documentation provided to the Board. Kelly Wells represented the County and stated that upon review of this property by CCA, CCA weighted the sales comparison approach at 40%and the income approach at 60% for a reconciled valuation of $14,737,870 for the property. As a result of this review,the County recommends changing the market adjustment on the land from-8%to-10% and applying an E02 economic market adjustment to the entire property, thereby reducing the valuation of the propertyfrom$15,344,400 to $14,742,100. Chris Mashburn stated that due to COVID-19 impacting hotels, data for the 2018 and 2019 revenue was used for the basis of the analysis on hotel appeals. DocuSign Envelope ID: D94409AB-B2D5-4E05-B3FC-26A40C01CO2F 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 $14,742,100. Ms. Levine seconded the motion and the motion carried. Yes: 3 Noes: 0 Shortbread Lofts LLC PIN 9788169824 Alexander Carr appeared before the Board on Behalf of Shortbread Lofts LLC to appeal the value of the property located at 333 W.Rosemary Street, Chapel Hill. The current assessed value of the property is $36,607,700.A list of evidence follows: APPELLANT COUNTY 9788169824 Appeal 9788169824 County William Owens from Ryan represented the appellant and summarized supporting evidence of an analysis of the year 2020 on actual income supporting a value opinion of around$33,000,000 for the property. Kelly Wells represented the County and stated the subject is a 179-unit student apartment complex. Upon review of this property by CCA, CCA weighted the sales comparison approach at 45%and the income approach at 55%for a reconciled valuation of$35,884,032.As a result of this review, Orange County recommends applying an E20 economic market adjustment to the property,thereby reducing the value of the property from$36,607,700 to $35,875,400. 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$35,875,400 for the property. Levine seconded the motion and the motion carried. Yes: 3 Noes: 0 Waypoint UNC Chapel Ride Owner LLC PIN 9789198723 Alexander Carr appeared before the Board on behalf of the appellant to appeal the value of the property located at 1242 Legacy Terrace, Chapel Hill. The current assessed value of the property is $28,582,300. A list of evidence follows: APPELLANT COUNTY 9789198723 Appeal 9789198723 County William Owens from Ryan represented the appellant and summarized the supporting evidence of the 2020 actual income analysis which supported a value opinion of around$22,400,000. Kelly Wells represented the County and reiterated that the appellant is appealing the valuation on the basis that the income and expenses from 2020 suggest a lower valuation of$22,408,447 for this student DocuSign Envelope ID: D94409AB-B2D5-4E05-B3FC-26A40C01CO2F housing apartment complex with 180 units (544 beds). Ms. Wells stated that upon review of this property by CCA, CCA weighted the sales comparison approach at 45%and the income approach at 55%for a reconciled valuation of$28,671,746. As a result of this review, Orange County recommends no change in value for the subject. 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 recommendation of no change in value for the property. Ms. Levine seconded the motion and the motion carried. Yes: 3 Noes: 0 RRPV University Chapel Hill LP PIN 9799125797 Alexander Carr appeared before the Board on behalf of the appellant to appeal the value of the property located at 201 S. Estes Drive, Chapel Hill. The current assessed value of the property is $33,729,300. A list of evidence follows: APPELLANT COUNTY 9799125797 Appeal 9799125797 County Mr. Carr stated that he had spoken with the appellant and the appellant was now in agreement with the County's opinion of value. Kelly Wells represented the County and stated that the appellant had originally appealed the valuation on the basis that the income and expenses for 2020 suggest a lower valuation of$25,000,000 for this property. Ms. Wells stated that upon review of this property by CCA, CCA weighted the sales comparison approach at 50%and the income approach at 50%for a reconciled valuation of$33,875,225. As a result of this review, Orange County recommends no change in value 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 recommendation of no change in value for the property.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 3:23 PM. The motion was seconded by Ms. Levine and the meeting was adjourned. DocuSign Envelope ID: D94409AB-B2D5-4E05-B3FC-26A40C01CO2F DocuSigned by: LIWA t r fkAff t, ,2n9AAR883DF4DF.. Hunter Beattie, Chair 4/1/2022 DocuSigned by: Ev, �Oi A 006547D. Vrinlli Flores, Recording Secretary 4/1/2022