HomeMy WebLinkAboutAgenda - 12-02-2002-8iORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: December 2, 2002
Action Agenda e
Item No. ~ _ I
SUBJECT• Appraisal Contractual Agreement
DEPARTMENT: Assessor's Office PUBLIC HEARING: (Y/N) No
ATTACHMENT(S): INFORMATION CONTACT:
John Smith, ext. 2101
Appraisal Contract TELEPHONE NUMBERS:
Hillsborough 732-8181
Chapel Hill 968-4501
Durham 688-7331
Mebane 336-227-2031
PURPOSE: To consider entering into a contractual agreement with Johnson and Knight
Appraisal Services where Orange County Assessor's office will pay $9,500 upon completion of
an appraisal of the General Electric plant located in Mebane.
BACKGROUND: In 2002 representatives for the General Electric Industrial complex situated in
the Mebane area of Orange County appealed their tax value. The Orange County Board of
Equalization and Review found no basis to lower the current appraised value of $11,479,400.
General Electric and their representatives have further appealed to the North Carolina Property
Tax Commission.
The Assessor's Office has found, from experience, that the N.C. Property Tax Commission has
great appreciation for appraisal evidence presented by a third party. The Assessor's office has
also found that this is the fairest approach and typically goes a long way toward resolution of
the appeal.
In this particular case, the appellants (GE) are claiming that the industrial site should be valued
as if it were only a warehouse with a value of only $4,000,000. (The difference would produce a
reduction in revenues of $64,200 annually.) However, the property is being operated as a
functioning industrial site and should be appraised at this higher use. A third party, unbiased
appraiser's opinion is the best approach.
FINANCIAL IMPACT: The cost for this outside appraisal agreement would be $9,500. These
funds would come from the 2002-2003 revaluation fund operating budget.
RECOMMENDATION: The County Manager recommends Board approval and authorization of
the Chair to sign the agreement.
JOHNSON & KNIGHT APPRAISAL SERVICES, INC.
APPRAISERS -REALTORS -COUNSELORS
TELEPHONE (252) 433-0000 OARNETT STREET STATION
RALEIQH (919) 848-1126 208 NORTH OARNETT STREET, SUITE I E-MAIL ADDRESS:
FACSIMILE (252) 433000/ HENDERSON, NORTH CAROLINA 27538 c~ohnsonmjohnsonendknlphtcom
September 27, 2002
John Smith, Jr., Assessor W' ^ `'
Ba~:;~ Jacobs, Chair, Board of County Commissioners ~ '' ~_-~: `.~
Orange County
Post Office Box 8181 4 ~z~ ~~ ~ ~~~.
Hillsborough, North Carolina 27278
Re: General Electric plant ~~~_ . ~ a'~'~
6801 Industrial Drive, Mebane, Orange County, NC
Dear Mr. Smith and Mr. Jacobs:
I would be pleased to prepare a complete self-contained appraisal report on the above referenced
General Electric property in conformity with the Uniform Standards of Professional Appraisal
Practice (USPAP). The interest to be valued is fee simple, with an appraisal date of January 1,
2001. The intended use of the appraisal is for ad valorem tax assessment purposes. The intended
users of the appraisal are yourselves and others as designated by you. The purpose of the appraisal
is to estimate the market value of the specified interest in the subject property. Two copies the
appraisal report will be furnished, and delivery of the appraisal report will be within 120 days of
receipt of notice to commence. My fee for this assignment would be $9,500, with payment due
upon delivery of my report. If this proposal is acceptable, please indicate by signing below and
returning a copy to me. Thank you for your consideration.
Very truly yours,
JOHNSON & KNIGHT APPRAISAL SERVICES, INC.
ion. MAI
John Smith, Jr., Assessor Date Barry Jacobs, Chair
Date