The URL can be used to link to this page

Browse Search

Home My WebLink About20132023.tiffPETITION TO STATE BOARD OF ASSESSMENT APPEALS 1313. Sherman Street, Room 315 Phone; (303) 866-5880 Denver, Colorado 80203 Fax- (303) 866-4485 Date: August 29, 2013 Property Owner: Inland PPD Hudson Associates c/o GEO Group Subject Property: 3001 N juniper Street, Hudson Street Address City Schedule Number(s): R6775763 Attach separate sheet if necessary Weld F3 Board of Equalization Appeals the decision of the d Board of Commissioners County ❑State Property Tax Administrator For Office Use Only Docket No. Fee: Y N Check/Credit Card # P F H RECEIVED SEp 0 3 2,'':� WELD COUNTY COMMISS!ONEPS Dated: 7/30/2013 This Appeal concerns: (❑Valuation QRefund/Abatement 0 Exemption ❑State Assessed Tax Year: 2013 The subject property is currently classified as: ©Agricultural (Commercial iDExempt ElIndustrial ILJMixed Use LNatural Resources 0 oil & Gas Iti Personal I❑Possessory O Producing DResidential ❑State Assessed ❑ Vacant Land Interest Mines Actual Value assigned to subject property: $01,914,792 Petitioner's estimate of value: $40,000,000 Estimated time for Petitioner to present the appeal: minutes or 4 hours. Not less than 30 minutes. Board will allow equal time to County or Property Tax Administrator. Appearance: LI Petitioner will be present at the hearing El Petitioner will be represented by an agent ❑ Petitioner will be represented by an attorney IOPetitioner will appear by telephone Petitioner is responsible for calling the Board at 303-866-5880 on the scheduled date and time angering (Mountain Time Zone) ❑ Petitioner would like to appear by video conference Petitioner must contact the Board at 303-866-5860 at least 20 days in advance of the scheduled hearing to confirm availability of video conference equipment If the property owner is an entity, it must appear under the representation of an attorney licensed in Colorado except as follows. A closely held entity may be represented by an officer of the entity as long as the amount in controversy does not exceed $10,000, exclusive of costs, interest or statutory penalties. A closely held entity can have no more than three owners. See Section 13-1-127, C.R.S. A closely held entity that will be represented by an officer of thr entity must provide a letter to the Board with this petition stating that It has no more than three owners and that the tax amount at Issue does not exceed $15,000 as of August 7, 2013. A trust filing a petition as of August 8, 2012 may be represented by a trustee, an attorney or an agent. Filing Fee: Ii None Petitioner is appearing pro se (self -represented) and has not filed more than two Petitions with the Board of Assessment Appeals during this fiscal year (July 1 — June 30). p $ 33.75 Petitioner is appearing pro se (self -represented) and has filed more than two Petitions with the Board of Assessment Appeals during this fiscal year (July 1 — June 30). $101.25 Petitioner will be represented by an agent or by an attorney. In the space below, please explain why you disagree with the value assigned to the subject property The subject property is valued in excess of fair market value based on the three approaches to value; cost, market, and income. In addition, the property is valued in excess of other similarly situated properties. �v►1M,�,M cc60,„,s 1 CfFJI 3 e', CA-, i � �°�3 " as lL cgs Required attachments to this form: fl Assessor's or Property Tax Administrator's Notice of Valuation or Notice of Denial F2 Decision of County Board of Equalization, County Board of Commissioners or Property Tax Administrator Attachments required under certain circumstances: El A notarized Letter of Authorization if an agent will be representing Petitioner p A list of names, last known addresses and telephone numbers of co -owners or parties directly interested in the subject property if applicable. Certificate of Service I hereby certify that a true and correct copy of the foregoing Petition to the State Board of Assessment Appeals and attachments were mailed, faxed or hand delivered to: Weld County ® Board of Equalization p Board of Commissioners a State Property Tax Administrator at the following address: 1150 0 Street, PO Box 758, Greeley, CO 80632 on August 29, 2013 Date I hereby certify that a true and correct copy of the foregoing Petition to the State Board of Assessment Appeals and attachments were mailed, faxed or hand delivered to all co -owners or parties directly interested in the subject property on Date I hereby certify that four (4) true and correct copies of the foregoing Petition to the State Board of Assessment Appeals and attachments were mailed or hand delivered to the Board of Assessment Appeals at 1313 Sherman Street, Room 315, Denver, CO 80203 on August 29, 2013 Date (One copy may be faxed to the Board but the original and two additional copies must be mailed or hand delivered.) Petitioner's Mailing Address is Required Even if Petitioner is Represented by An Agent or Attorney (per C.R.S. 39-8-1091 ignature of Agent J or -y Ryan, LLC c/o Ma ew W Poling Printed Name 5251 DTC Parkway, Suite 1045 Mailing Address Greenwood Village, CO 80111 City, State, Zip Code Telephone: (720)524-0022 E-mail: matt.poling@ryan.com Attorney Reg. No.: Signature of Petitioner Inland PPD Hudson Assoc. c/o The GEO Grob Printed Name 621 NW 53rd St, Suite 700 Mailing Address Baca Raton, FL 33487 City, State, Zip Code Telephone: Daytime number E -Mail: It is the Petitioner's responsibility to notify the BAA of any change of address. Petitioners are strongly encouraged to read the Instructions and Rules of the Board of Assessment Appeals prior to completing this Petition Form. The Instructions and Rules are available on the Web at www.dola.Colorado.gov/baa or may be requested by phone at 303-866-5880. July 30, 2013 CLERK TO THE BOARD PHONE (970) 336-7215, EXT 4226 FAX (970) 352-0242 WEBSITE: www.co.weld.co.us 1150 O STREET P.O. BOX 758 GREELEY CO 80632 INLAND PPD HUDSON ASSOCIATES CIO THE GEO GROUP, INC TAX DEPT 621 NW 53 ST SUITE 700 BACA RATON, FL 33487 RE: THE BOARD OF EQUALIZATION 2013, WELD COUNTY, COLORADO DENIAL OF PETITIONER'S APPEAL AND AFFIRMATION OF ASSESSOR'S VALUE ACCOUNT NO.: R6775763 Dear Petitioner: On July 30, 2013, the Board of County Commissioners of Weld County Colorado convened and acting as the Board of Equalization, pursuant to C.R.S. Section 39-8-101 et seq., considered your petition for appeal of the Weld County Assessor's valuation of your property described above, for the year 2013. The Board of Equalization found that the evidence presented at the hearing supported the value placed upon the above -described property as set forth below. Such evidence indicated the value was reasonable, equitable, and derived according to the methodologies, percentages, figures and formulas dictated by law. This decision is based upon the Board's analysis of the written and oral testimony presented by both parties. Further that it is the Board's decision that the taxpayer/did not present sufficient evidence to show that the value of the property was not reasonably valued by the Assessor. The Assessment and valuation of the Weld County Assessor was affirmed as follows: ACTUAL VALUE AS ACTUAL VALUE AS DETERMINED BY ASSESSOR SET BY BOARD $61,914,792.00 $61,914,792.00 ec: Pe/ 2013-2023 AS0085 A denial of a petition, in whole or in part, by the Board of Equalization must be appealed within thirty (30) days of the date the denial is mailed to you. You must select only one of the following three (3) options for appeal: 1. Appeal to Board of Assessment Appeals: You have the right to appeal the County Board of Equalization's decision to the Colorado Board of Assessment Appeals. A hearing before that Board will be the last time you may present testimony or exhibits or other evidence, or call witnesses in support of your valuation. If the decision of the Board of Assessment Appeals is further appealed to the Court of Appeals pursuant to C.R.S. Section 39-8-108(2), only the record of proceedings from your hearing before the Board of Assessment Appeals and your legal brief are filed with the appellate court. All appeals to the Board of Assessment Appeals filed after August 10, 2013, MUST comply with the following provisions of C.R.S. Section 39-8-107(5): (5)(a)(I) On and after August 10, 2013, in addition to any other requirements under law, any petitioner appealing either a valuation of rent -producing commercial real property to the board of assessment appeals pursuant to section 39-8-108(1) or a denial of an abatement of taxes pursuant to section 39-10- 114 shall provide to the county board of equalization or to the board of county commissioners of the county in the case of an abatement, and not to the board of assessment appeals, the following information, if applicable: (A) Actual annual rental income for two full years including the base year for the relevant property tax year; (B) Tenant reimbursements for two full years including the base year for the relevant property tax year; (C) Itemized expenses for two full years including the base year for the relevant property tax year; and (D) Rent roll data, including the name of any tenants, the address, unit, or suite number of the subject property, lease start and end dates, option terms, base rent, square footage leased, and vacant space for two full years including the base year for the relevant property tax year. (II) The petitioner shall provide the information required by subparagraph (I) of this paragraph (a) within ninety days after the appeal has been filed with the board of assessment appeals (b)(I) The assessor, the county board of equalization, or the board of county commissioners of the county, as applicable, shall, upon request made by the petitioner, provide to a petitioner who has filed an appeal with the board of assessment appeals not more than ninety days after receipt of the petitioner's request, the following information: (A) All of the underlying data used by the county in calculating the value of the subject property that is being appealed, including the capitalization rate for such property; and (B) The names of any commercially available and copyrighted publications used in calculating the value of the subject property. (II) The party providing the information to the petitioner pursuant to subparagraph (I) of this paragraph (b) shall redact all confidential information contained therein. (c) If a petitioner fails to provide the information required by subparagraph (I) of paragraph (a) of this subsection (5) by the deadline specified in subparagraph (II) of said paragraph (a), the county may move the board of assessment appeals to compel disclosure and to issue appropriate sanctions for noncompliance with such order. The motion may be made directly by the county attorney and shall be 2013-2023 AS0085 accompanied by a certification that the county assessor or the county board of equalization has in good faith conferred or attempted to confer with such petitioner in an effort to obtain the information without action by the board of assessment appeals. If an order compelling disclosure is issued under this paragraph (c) and the petitioner fails to comply with such order, the board of assessment appeals may make such orders in regard to the noncompliance as are just and reasonable under the circumstances, including an order dismissing the action or the entry of a judgment by default against the petitioner. Interest due the taxpayer shall cease to accrue as of the date the order compelling disclosure is issued, and the accrual of interest shall resume as of the date the contested information has been provided by the taxpayer. Appeals to the Board of Assessment Appeals must be made on forms furnished by that Board, and must be mailed or delivered within thirty (30) days of the date the denial by the Board of Equalization is mailed to you. The address and telephone number of the Board of Assessment Appeals are: Board of Assessment Appeals 1313 Sherman Street, Room 315 Denver, Colorado 80203 Telephone Number: 303-866-5880 Fees for Appeal to the Board of Assessment Appeals: A taxpayer representing himself is not charged for the first two (2) appeals to the Board of Assessment Appeals. A taxpayer represented by an attorney or agent must pay a fee of $101.25 per appeal. OR 2. Appeal to District Court: You have the right to appeal the decision of the Board of Equalization to the District Court of the /county wherein your property is located: in this case that is Weld County District Court. A hearing before The District Court will be the last time you may present testimony or exhibits or other evidence, or call witnesses in support of your valuation. If the decision of the District Court is further appealed to the Court of Appeals pursuant to C.R.S. Section 39-8-108(1), the rules of Colorado appellate review and C.R.S. Section 24-4-106(9), govern the process. OR 3. Binding Arbitration: You have the right to submit your case to binding arbitration. If you choose this option, the arbitrator's decision is final and you have no further right to appeal your current valuation. C.R.S. Section 39-8-108.5 governs this process. The arbitration process involves the following: a. Select an Arbitrator: You must notify the Board of Equalization that you will pursue arbitration. You and the Board of Equalization will select an arbitrator from the official list of qualified people. If you cannot agree on an arbitrator, the District Court of the county in which the property is located (i.e., Weld) will select the arbitrator. b. Arbitration Hearing Procedure: Arbitration hearings are held within sixty (60) days from the date the arbitrator is selected, and are set by the arbitrator. Both you and the Board of Equalization are entitled to participate in the hearing. The hearing is informal. The arbitrator has the authority to issue subpoenas for 2013-2023 AS0085 witnesses, books, records documents and other evidence pertaining to the value of the property. The arbitrator also has the authority to administer oaths, and determine all questions of law and fact presented to him. The arbitration hearing may be confidential and closed to the public if you and the Board of Equalization agree. The arbitrator's decision must be delivered personally or by registered mail within ten (10) days of the arbitration hearing. c. Fees and Expenses: The arbitrator's fees and expenses are agreed upon by you and the Board of Equalization. In the case of residential real property, the fess may not exceed $150.00 per case. For cases other than residential real property, the arbitrator's total fees and expenses are agreed to by you and Board of Equalization, but are paid by the parties as ordered by the arbitrator. If you have questions concerning the above information, please contact me at (970) 336-7215, Ext 4226. Very truly yours, c_( 6• - </PiJiek Esther E. Gesick, Deputy Clerk Weld County Board of County Commissioners Cc: Christopher Woodruff, Weld County Assessor RYAN 5251 DTC PARKWAY ONE DTC SUITE 1045 GREENWOOD VILLAGE, CO 80111 2013-2023 AS0085 Weld County Christopher Woodruff, County Assessor Brenda Dones, Deputy Assessor SUMMARY APPRAISAL REPORT OF COMMERCIAL PROPERTY FOR Weld County Board of Equalization INLAND PPD HUDSON ASSOCIATES LLC Petitioner vs. WELD COUNTY BOARD OF EQUALIZATION RESPONDENT Parcel Number: 1307-26-2-01-002 Schedule Number: R6775763 Docket Number: 7391 Date: 07/30/2013 Time: 1:45 pm PREPARED BY: Charles C. Jack Commercial Appraiser, Weld County 2013-2023 Salient Facts and Conclusions Purpose of Appraisal To determine the Market Value as of 1/ 1/ 13 based on an appraisal date of 6/ 30/ 12. Property Rights Appraised Unencumbered fee simple interest. Location 3001 N Juniper St, Hudson, Colorado Property Type Improvement Si. Ft. Land Area Commercial Medium Security Prison (Correctional Facility) Administrative& Support Bldg- 54,308 Thrco housing units- 161,955 Segregate housing unit - 66,653 Gatehouse- 1,600 Storage Warehouse - 7,500 Gymnasium - 8,000 Total Facility Area - 300,016 2,211,736 sq ft (50.77 acres) Year Built 2009 Quality Good Class Masonry Number of Stories 2 Actual Value Indications: Land Cost Approach Actual costs Cost Approach Marshall & Svvift Market Approach $ 2,764,671 $67,442,673 $66,511,034 n/ a Income Approach $78298,133 Assessor's Value $ 61,914,792 CBOECOMM 010998 Page 2 Subject Building location Site Map • • • • • •• •• • 1 •• • • I , • • 1 • • 1 • • 1 • Si • • I • • 1 • • J • , • . 1 • • I • ▪ • • • • • •♦ •F•—• t-• f fi'Y- .-11 •0-•.-•- •-J-•. • a 444` (. A. • , •• P: I t • • 4 `B • • • 614. • SITE K! TPLAN CBOECOMM 010998 Page 3 Site Map CBOECOMM 010998 Page 4 \:\7\f\��: Ny\z\f\\f\,, NV'N\Z\/ `�/\N. AN etN �; \/N \ f `/N,"../ // \% \ \f,\r\ \ l` .p j/ \/\,/ /\/ � ,/ / / /\ \: fiNZ\/\ /\/\' N/'\ / /N/': \ \/' f / ` . /N/‘\ /N./ N•./ ,'\/\/\/':/\ /N %\y,../ h�T } : i" �� .i , gip -E T• / ( . 4";:l •.. • ♦a 0 • ///./ .//,,/ .!./ / ! / / / / / / / / / / / / I / / / / i_: f '•/ ! / /•i / /./ 1 / //��/ /// / {.�, LL /V / • / . / ii ii //2/".//,,,/,///////2,..,/;/),:///://:///./.1 ! 1 /1'////! / // ! J• ! / 1 CBOECOMM 010998 Page 6 i u: :41444:11k � IIp3p[aaj.1F. :G rL�?t r u•'i:a; .W: :::'. 01 {:n :: ;;:� ; --- - .e Sketch of Housing Units ti E, F, &G Sketch by Apex M?dIna'. 28.3' 2nd Floor Area Sketch by ibex Medina"' ,E 83 .6'0? Housing Unit 1st Level 2nd Level Total Area 36935.6 sf 15050.0 sf 53,985.0 sf 152 cells total 304 beds 28.3' 28.3' CBOE_COMM _010998 Page 8 a Aaisi NS ----grip �1t4w�,, ..M„ /1.ii. is Ir;1■11 u..I�� hit 11 iar.- 2 steno '. i Ak, i i ill �. — , g— _ . - MI..., ..i iii rmirra , , �' t.� 17'17 woo RO Et . - -i� CBOECOMM 010998 Page 9 Housing Unit D 1st Floor 47342.8 sf 2nd Floor 19310,0 sf Total 66,652.8 sf 338 beds of which 62 are Solitary confinement 28.3' Sketch by Apex Medina". 7 28.3' Sketch by Apex beady!'" 7' 55.7' 91' 55.7' 91' Bldg D 153' 53' CBOE_COMM_010998 Page 10 80' Armory Emergency Response Entry Building Storage Warehouse Bit 2009 Metal fr w/ block Package -air 15' wh 1600.0 sf Vigor Sec.uity Waiting Area Check 5' Sketch by Qc*x Medina"' Canopy 50.0 sf 10' 20' OBOE _COMM _010998 Page 11 20' 56' a E (o 0)0 6 Storage Warehouse Blt 2009 Class S Electric heat 14' wh 7500.0 sf 125' r„t_•,iir,:,,.. 60* CBOE COMM 010998 Page 12 Gymnasium — Bldg I 100' 40' Gym 80' sketch by Apex klednse' Bit 2009 Steel fr w/ block Forced Air 24' wh 8000.0 sf 72' Office Maintenance Restrooms In 8' 40.0 sf 8' 40.0sf Handball Courts 3200.0 sf O co CBOE_COMM_010998 Page 13 COST APPROACH LAND VALUE The Assessor has appropriately considered the Cost Approach to value for the property on appeal. Land Value Sales utilized to establish the value in the subject neighborhood are from 2011 and the first six months of the 2012 market for the 2013 assessment date. The comparative sales approach is the most reliable method of land valuation. Pursuant to 39-104-(10.2) (c) C. R. S., the Assessor may utilize sales from lily 2007 through line 2012 to establish the proper value, if sufficient information is not available in the prior 18 months. Also, comparables outside the subject property area may be used. The Weld County Assessor has an established ongoing sales confirmation and validation program for property transactions used in developing value. The land size of the subject is 2,211,736 square feet. Comp Parcel 130736001010 1 Hudson 130736001017 2 Hudson 080726400021 3 Windsor 147120020010 4 R Lipton 096109200001 5 &coley Sale Sale Date Sale Price Land Sze PSF Adj 6/1/2010 $5,500,000 4,359,922 $1.26 6/4/2010 $3,200,000 1,881,900 $1.70 1/4/2012 $5,416,700 2,348, 729 $2.31 12/31/ 2010 $2,039,800 1,443,143 $1.41 6/ 13/ 2008 $3,150,000 4,262,782 $0.74 Unadjusted Sales Range: $0.74 to $2.31 Average: $1.48 Median: $1.41 + +- Adjusted Sale Range: $0.74 to$1.61 Average $1.28 Median: $1.44 Adj Grantor/ PSF Grantee Greenacre/ $1.44 BNS S Dakot a/ $1.45 BNS BROE/ $1.61 Halliburton Milano / $1.20 Halliburton Western / $0.74 Leprino It has boon determined from market sales of similar land after adjustments that a value of $1.25 per square foot or $2,764,671 is applicable for the subject properties land area. SUBJECT LAND VALUE $2,764,671 CBOECOMM 010998 Page 14 COST APPROACH SJM M ARY Building Bldg type M & SCost RCN Sq R #of Beds Cost Value Per Sol Ft Bldg B& C Administration & Support $16,672,000 54,308 $306.99 Bldg D Housing Unit $17,987,000 66,653 338 $269.86 BI dg E Housing Unit $15,084,000 53,985 304 $279.41 BI dg F Housing Unit $15,084,000 53,985 304 $279.41 BI dg G Housing Unit $15,084,000 53,985 304 $279.41 BI dg A Gatehouse $636,750 1,600 $397.97 BI dg J Sorage Warehousc $370,000 7,500 $49.33 Bldg I Gymnasium $833,000 8,000 $104.13 Total BI dgs Value $81,750,750 300,016 1,250 Add Extras Fencing/ lighting $1,800,000 Asphalt $980,000 Concrete slab $464,400 Total Improvements $84,995,150 Less aonmicobsolesence of 25°/ $21,248,788 Val u e less EO. $63,746,363 Add Land Value $2,764,671 Total Value Per the Cost Approach $66,511,034 $221.69 Value Per Subjects 1,250 total beds $53,209 Value rentable Per 1,188 beds $55,986 CBOECOMM 010998 Page 15 Cost Approach Summary Bldg B & C -Administration and support (Assessor bldg #1) PARCEL NUMBER 1307-26-2-01-002 Inland PPD Hudson Associates LLC PROPERTY OWNER ADRESS 3001 N Juniper St CITY, STATE, ZIP Hudson, Co DATE OF APPRAISAL 06/30/12 OCCUPANCY: Medium -security prison NUMBER OF STORIES 1 FLOOR AREA (SQ. FT.) 54,308 AVERAGE STORY HEIGH1 16 CLASS: Class C YEAR BUILT 2009 COST RANK Excellent ESTIMATED LIFE 45 HEATING AND COOLING Warm & Cool air zoned UNITS COST TOTAL RCN BASIC STRUCTURE COS' 54,308 $312.38 $16,964,733 Sprinklers PSF 54,308 $2.73 148,261 Total Basic Structure cost 54,308 $315.11 $17,112,994 perimeter adjustment 0.948 wall height adjustment 1.092 Current multiplier 0.98 Local multiplier 0.99 TOTAL RCN $17,187,719 LESS DEPRECIATION PHYSICAL 3.0% $515,632 TOTAL VALUE of Bldg B&C without land $16,672,087 Rounded Value $16,672,000 Value PSF $306.99 CBOECOMM 010998 Page 16 Cost Approach Summary Bldg D - Housing Unit - SHU (Assessor bldg #2) PARCEL NUMBER 1307-26-2-01-002 PROPERTY OWNER Inland PPD Hudson Associates LLC ADRESS 3001 N Juniper St Hudson, Co CITY, STATE, ZIP DATE OF APPRAISAL 06/30/12 OCCUPANCY: Medium -security prison NUMBER OF STORIES 2 FLOOR AREA (SQ. FT.) 66,653 AVERAGE STORY HEIGH1 12 CLASS: Class C YEAR BUILT 2009 COST RANK Excellent ESTIMATED LIFE 45 HEATING AND COOLING Warm & Cool air zoned UNITS COST TOTAL RCN BASIC STRUCTURE COST 66,653 $312.38 $20,821,064 Sprinklers PSF 66,653 $2.73 181,963 Total Basic Structure Cost 66,653 $315.11 $21,003,027 perimeter adjustment 0.910 wall height adjustment 1.0 Current multiplier 0.98 Local multiplier 0.99 TOTAL RCN $18,543,194 LESS DEPRECIATION PHYSICAL 3.0% $556,296 TOTAL VALUE of BIdgD without land $17,986,899 Rounded Value $17,987,000 Value PSF $269.86 CBOECOMM 010998 Page 17 Cost Approach Summary Bldg E - Housing Unit (Assessor bldg #3) PARCEL NUMBER 1307-26-2-01-002 PROPERTY OWNER Inland PPD Hudson Associates LLC ADRESS 3001 N Juniper St CITY, STATE, ZIP Hudson, Co DATE OF APPRAISAL 06/30/12 OCCUPANCY: Medium -security prison NUMBER OF STORIES 2 FLOOR AREA (SQ. FT.) 53,985 AVERAGE STORY HEIGH1 12 CLASS: Class C YEAR BUILT 2009 COST RANK Excellent ESTIMATED LIFE 45 HEATING AND COOLING Warm & Cool air zoned UNITS COST TOTAL RCN BASIC STRUCTURE COST 53,985 $312.38 $16,863,834 Sprinklers PSF 53,985 $2.85 153,857 RCN BASIC STRUCTURE COST 53,985 $315.23 $17,017,692 perimeter adjustment 0.887 wall height adjustment 1.0 Current multiplier 1.02 Local multiplier 1.01 TOTAL RCN $15,550,552 LESS DEPRECIATION PHYSICAL 3% $466,517 TOTAL VALUE of Bldg E without land $15,084,036 Rounded Value $15,084,000 Value PSF $279.41 CBOECOMM 010998 Page 18 Cost Approach Summary Bldg F - Housing Unit (Assessor bldg #4) PARCEL NUMBER 1307-26-2-01-002 PROPERTY OWNER Inland PPD Hudson Associates LLC ADRESS 3001 N Juniper St CITY, STATE, ZIP Hudson, Co DATE OF APPRAISAL 06/30/12 OCCUPANCY: Medium -security prison NUMBER OF STORIES 2 FLOOR AREA (SQ. FT.) 53,985 AVERAGE STORY HEIGH1 12 CLASS: Class C YEAR BUILT 2009 COST RANK Excellent ESTIMATED LIFE 45 HEATING AND COOLING Warm & Cool air zoned UNITS COST TOTAL RCN BASIC STRUCTURE COS' 53,985 $312.38 $16,863,834 Sprinklers PSF 53,985 $2.85 153,857 Total Basic Structure cost 53,985 $315.23 $17,017,692 perimeter adjustment 0.887 wall height adjustment 1.0 Current multiplier 1.02 Local multiplier 1.01 TOTAL RCN $15,550,552 LESS DEPRECIATION PHYSICAL 3% $466,517 TOTAL VALUE of Bldg F without land $15,084,036 Rounded Value $15,084,000 Value PSF $279.41 CBOECOMM 010998 Page 19 Cost Approach Summary Bldg G - Housing Unit (Assessor bldg #5) PARCEL NUMBER 1307-26-2-01-002 PROPERTY OWNER Inland PPD Hudson Associates LLC ADRESS 3001 N Juniper St CITY, STATE, ZIP Hudson, Co DATE OF APPRAISAL 06/30/12 OCCUPANCY: Medium -security prison NUMBER OF STORIES 2 FLOOR AREA (SQ. FT.) 53,985 AVERAGE STORY HEIGH1 12 CLASS: Class C YEAR BUILT 2009 COST RANK Excellent ESTIMATED LIFE 45 HEATING AND COOLING Warm & Cool air zoned UNITS COST TOTAL RCN BASIC STRUCTURE COST 53,985 $312.38 $16,863,834 Sprinklers PSF 53,985 $2.85 153,857 Total Basic Structure Cost 53,985 $315.23 $17,017,692 perimeter adjustment 0.887 wall height adjustment 1.0 Current multiplier 1.02 Local multiplier 1.01 TOTAL RCN $15,550,552 LESS DEPRECIATION PHYSICAL 3% $466,517 TOTAL VALUE of Bldg B&C without land $15,084,036 Rounded Value $15,084,000 Value PSF $279.41 CBOECOMM 010998 Page 20 Cost Approach Summary Gatehouse - Bldg A (Assessor bldg #6) PARCEL NUMBER 1307-26-2-01-002 PROPERTY OWNER Inland PPD Hudson Associates LLC ADRESS 3001 N Juniper St CITY, STATE, ZIP Hudson, Co DATE OF APPRAISAL 06/30/12 OCCUPANCY: Medium -security prison NUMBER OF STORIES 1 FLOOR AREA (SQ. FT.) 1,600 AVERAGE STORY HEIGH1 15 CLASS: Class C YEAR BUILT 2009 COST RANK Excellent ESTIMATED LIFE 45 HEATING AND COOLING Warm & Cool air zoned UNITS COST TOTAL RCN BASIC STRUCTURE COST 1,600 $312.38 $499,808 perimeter adjustment 1.191 wall height adjustment 1.069 Current multiplier 1.02 Local multiplier 1.01 Adjusted RCN Basic Cost $655,563 EXTRAS: Sq Ft Cost PSF Canopy 50 $17.62 881 TOTAL RCN $656,444 LESS DEPRECIATION PHYSICAL 3% $19,693 TOTAL VALUE of Gatehouse without land $636,750 Rounded Value $636,750 Value PSF $397.97 CBOECOMM 010998 Page 21 Cost Approach Summary Storage Warehouse (Assessor bldg #7) PARCEL NUMBER 1307-26-2-01-002 PROPERTY OWNER Inland PPD Hudson Associates LLC ADRESS 3001 N Juniper St Hudson, Co CITY, STATE, ZIP DATE OF APPRAISAL 06/30/12 OCCUPANCY: Medium -security prison NUMBER OF STORIES 1 FLOOR AREA (SQ. FT.) 7,500 AVERAGE STORY HEIGH1 14 CLASS: Class S YEAR BUILT 2009 COST RANK Good ESTIMATED LIFE 40 HEATING AND COOLING Electric UNITS COST TOTAL RCN BASIC STRUCTURE COST 7,500 $46.77 $350,775 perimeter adjustment 1.040 wall height adjustment 1.000 Current multiplier 1.03 Local multiplier 0.97 Adjusted RCN Basic Cost $364,478 EXTRAS: Sq Ft Cost PSF Loading Wells 1,120 $15.04 16,845 TOTAL RCN $381,322 LESS DEPRECIATION PHYSICAL 3% $11,440 TOTAL VALUE of storage warehouse without land $369,883 Rounded Value $370,000 Value PSF $49.33 CBOECOMM 010998 Page 22 Cost Approach Summary Gymnasium (Assessor bldg #8) PARCEL NUMBER 1307-26-2-01-002 PROPERTY OWNER Inland PPD Hudson Associates LLC ADRESS 3001 N Juniper St CITY, STATE, ZIP Hudson, Co DATE OF APPRAISAL 06/30/12 OCCUPANCY: Medium -security prison NUMBER OF STORIES 1 FLOOR AREA (SQ. FT.) 8,000 AVERAGE STORY HEIGH1 24 CLASS: Class S YEAR BUILT 2009 COST RANK Average ESTIMATED LIFE 35 HEATING AND COOLING Forced air UNITS COST TOTAL RCN BASIC STRUCTURE COST 8,000 $91.80 $734,400 perimeter adjustment 1.040 wall height adjustment 1.257 Current multiplier 0.91 Local multiplier 0.97 Adjusted RCN Basic Cost $847,451 EXTRAS: Sq Ft Cost PSF Canopy 80 $17.62 1,410 Concrete slab 3,200 $3.10 9,920 TOTAL RCN $858,780 LESS DEPRECIATION PHYSICAL 3% $25,763 TOTAL VALUE of Gymnasium without land $833,017 Rounded Value $833,000 Value PSF $104.13 CBOECOMM 010998 Page 23 Actual Construction Costs- Reproduction Cost Original Construction Contract Ste Development $9,421,100 Housing Unit D- 9-IU $15,950,000 Housing Un i t s E, F,& G $39,918,200 Admi ni st rat i on/ Sipport (B&C) $13,651,000 Warehouse/ Maintenance $1,158,500 Gatehouse $237,000 Original Contract am $80,335,800 Changed Order #4 (April 14th 2008) $84, 728 Changed Order #6 (August 6th, 2008) $90,279 Change Oder #1 (August 15th, 2008) $1,500,000 Change Order #2 (November 3rd, 2008) $182,365 Change Order #3 (February 23rd, 2009) $31,135 Change Order #5 (May 18th , 2009) $80, 747 Change Order #7 (December 11th, 2009) $103,426 Anal Contract Construction Cost $82,408,480 Indirect costs not induded $7,422,078 (Architect, legal, permits -9%) Total Costs $89,830,558 Less Obsol escence Physical $2,694,917 3% Functional $0 0% Economical $22,457,640 25% Value I ess obsol escence $64,678,002 Add Land Value $2,764,671 Value per actual cost less all forms of obsolescence $67,442,673 $53,954 per total beds $56,769 per rentable bed CBOECOMM 010998 Page 24 Income Approach In the Income Approach the appraiser analyzes the income to the landlord, which for this report is Inland PPD Associates LLC, the owner of the real property. There is an existing lease dated 09/24/2008 on the subject property between Cornell (now GEO) and Inland PPD for the real property and fixtures only . This lease is a triple net lease for a term of 10 years with two 10 year extensions. The lease indicates a pure net annualized base rental income of $10,112,000. From this stated income there would be a 5% adjustment for management and a 3% adjustment for reserves and replacement. There would need to be an adjustment for the income produced by the personal property (Reported personal property value of $2,200,000 x a 11.25% cap rate) or $247,500. This would produce a net income of $9,056,040 for the real property. When the 11.25% capitalization rate is applied to this figure it indicates an estimated value of $80,498,133. Then deducting the actual personal property value generates a value per the income approach of $78,298,133. When considering this lease, the income stream to the landlord is consistent for at least a ten year term. The income to the landlord is not affected by the state of the tenants business. It does not matter if the prison is 100% leased or vacant; the income to the landlord is stable and consistent. An income approach analyzing a rent per day per bed from older prison facilities was considered but not used. These rents represent a value in use and include a large contribution to the operating business enterprise as well as the personal and real property. It is difficult to separate the business portion of the rent from the real property only portion. The most common method is to rely upon the operator of the correctional facility to provide a breakdown of the business and real property allocation. This leaves the rent breakdown open to interpretation and less reliable. As stated above the subject prison has an existing real property lease between the landlord (Inland PPD) and GEO the tenant. It is the consideration of this lease that any prudent investor would analyze since it is what drives the real property value. Capitalization Rate There is very little market data of comparable sales in the required collection period in which to derive a capitalization rate. Due to this the summation or build up method was chosen to appropriate for developing a capitalization rate for the subject property. The summation method constructs a discount rate using a safe liquid rate as a foundation and adding rates for risk, liquidity, and investment management to the base rate. The rate chosen to be applicable for the subject, using the summation method, is 11.0% and is broken down as follows: Safe rate of 5% which is the return on competing safe investments (blue chip stocks, insured savings, and triple net leases to a major corporate tenant). A Risk rate of 1%, which is the chance that the return will be poorer than the safe rate. A liquidity rate of 2%, which is how quickly the asset can be convert to cash. Management of 1%, the process to safe guard the funds invested. Recapture rate of 2% the return of the investment that will waste away (1/45 yr expected life). This method can be found in the Property Appraisal and Assessment Administration (Red Book) pages 240-42 & 267-68. Also considered was the Realty Rates Investor Survey Publication for special purpose properties which showed a capitalization rate of 11.29% for 2011 and 11.32% for 2010 in the surveyed western region. In consideration of both the summation method and the Realty Rates Investor Survey Publication a capitalization rate of 11.25% was chosen to be applicable for the subject property. CBOECOMM 010998 Page 25 Expenses INCOME WORKSHEET Parcel: 130726201002 Name: Inland PPD Address: 3001 N Juniper, Hudson, Co Bldg Sq Ft Use 300,016 Prison Avg Rent PSF Subject Rents Annual Rent per Annual Gross Area Rent PSF Month Income Main Fir PSF 300,016 $33.70 $842,667 $10,112,000 LessVacancy & Expenses Vacancy 0% $0 $10,112,000 mgmt R/R 5% 3% $505,600 $303,360 Net Income before p/p income deduction Less P/P income ($2,200,000 x 11.25% cap) Net Income before p/p actual value deduction Value before personal property ded Cap Rate less personal property ectio n 11.25% $9,303,040 $247,000 $9,056,040 $80,498,133 $2,200,000 Estimated Property Value $ 78,298,133 Value psf $260.98 CBOECOMM 010998 rage cu CONCLUSION For this report, based on the income approach, the cost approach using the Marshall & Swift Valuation, and the actual contract cost, the indicated value for the subject property for the appraisal year 2013 was determined to be $66,500,000. Replacement Cost Approach from Marshall & Swift Valuation Reproduction Cost Approach from Actual Contracted Costs Income Approach Sales Comparison Approach $66,511,034 $67,442,673 $78,298,133 N/A Final Value $66,500,000 Assessor's Value $61,914,792 CBOE_COMM _010998 Page 27 NOTICE OF DETERMINATION Christopher M. Woodruff Weld County Assessor 1400 N 17th Ave Greeley, CO 80631 ACCOUNT NO. TAX YEAR TAX AREA LEGAL DESCRIPTION/ PHYSICAL LOCATION R6775763 2013 2606 L2 SAND HILLS INDUSTRIAL PARK 3001 N JUNIPER ST HUDSON, CO PROPERTY OWNER INLAND PPD HUDSON ASSOCIATES INC TAX DEPT 700 C/O THE GEO-diibil=7 621 NW 53 ST SUITE BACA RATON, FL 33487 PROPERTY CLASSIFICATION ASSESSOR'S VALUATION ACTUAL VALUE PRIOR TO REVIEW ACTUAL VALUE AFTER REVIEW COMMERCIAL 61,914,792 61,914,792 TOTAL $61,914,792 $61,914,792 The Assessor has carefully studied all available information, giving particular attention to the specifics included on your protest. The Assessor's determination of value after review is based on the following: The income approach to value based on the existing lease indicates the subject value is correct. If you disagree with the Assessor's decision, you have the right to appeal to the County Board of Equalization for further consideration, § 39-8-106(1)(a), C.R.S. The deadline for filing real property appeals is July 15. The Assessor establishes property values. The local taxing authorities (county, school district, city, fire protection, and other special districts) set mill levies. The mill levy requested by each taxing authority is based on a projected budget and the property tax revenue required to adequately fund the services it provides to its taxpayers. The local taxing authorities hold budget hearings in the fall. If you are concerned about mill levies, we recommend that you attend these budget hearings. Please refer to last year's tax bill or ask your Assessor for a listing of the local taxing authorities. Date of Notice: 6/27/2013 Telephone: (970) 353-3845 Fax: (970) 304-6433 Office Hours: 8:00 AM - 5:00 PM Please refer to the reverse side of this notice for additional information. RYAN 5251 DTC PARKWAY ONE DTC SUITE 1045 GREENWOOD VILLAGE, CO 80111 RECEIVED JUL 172813 WELD COUNTY COMMISSIONERS 15-DPT-AR PR 207-08/13 R6775763 17863 APPEAL PROCEDURES County Board of Equalization Hearings will be held from July 1 through August 5 at 1400 N 17 AVE. To appeal the Assessor's decision, complete the Petition to the County Board of Equalization shown below, and mail or deliver a copy of both sides of this form to: Weld County Board of Equalization 1150 O Street, P.O. Box 758 Greeley, CO 80631 Telephone: (970) 356-4000 ext, 4225 To preserve your appeal rights, your Petition to the County Board of Equalization must be postmarked or delivered on or before July 15 for real property — after such date, your right to appeal is lost. You may be required to prove that you filed a timely appeal; therefore, we recommend that all correspondence be mailed with proof of mailing. You will be notified of the date and time scheduled for your hearing. The County Board of Equalization must mail a written decision to you within five business days following the date of the decision. The County Board of Equalization must conclude hearings and render decisions by August 5, § 39-8-107(2), C.R.S. If you do not receive a decision from the County Board of Equalization and you wish to continue your appeal, you must file an appeal with the Board of Assessment Appeals by September 12, § 39-2-125(1)(e), C.R.S. If you are dissatisfied with the County Board of Equalization's decision and you wish to continue your appeal, you must appeal within 30 days of the date of the County Board's written decision to ONE of the following: Board of Assessment Appeals District Court 1313 Sherman Street, Room 315 Contact the District Court in the County Denver, CO 80203 where the property is located. See your (303) 866-5880 local telephone book for the address and www.dola.colorado.gov/baa telephone number. Binding Arbitration For a list of arbitrators, contact the County Commissioners at the address listed for the County Board of Equalization. If the date for filing any report, schedule, claim, tax return, statement, remittance, or other document falls upon a Saturday, Sunday, or legal holiday, it shall be deemed to have been timely filed if filed on the next business day, § 39-1-120(3), C.R.S. PETITION TO COUNTY BOARD OF EQUALIZATION What is your estimate of the property's value as of June 30, 2012? (Your opinion of value in terms of a specific dollar amount is required for real property pursuant to § 39-8-106(1.5), C.R.S.) $LIq cio, a-0 What is the basis for your estimate of value or your reason for requesting a review? (Please attach additional sheets as necessary and any supporting documentation, i.e., comparable sales, rent roll, original installed cost, appraisal, etc.) I ATTESTATION I, the undersigned owner or agent"' of the property identified above, affirm that the statements contained herein o an ;,:--.j. ;.- eto are true and complete. f7zOSzs-F-L1/Zz 7- IS- Zola Signature / Telephone Number Date Email 215 Attach letter of authorization signed by property owner. Address 15-DPT-AR PR 207-08/13 R6775763 17863 STATEMENT OF AGENCY The GEO Group, Inc. Inland PPD Hudson Associates, LLC Hereby appoints Ryan, LLC as agent for the purpose of filing real estate and personal lxopaty statements, renditions, returns and/or assessment appeals, applications or petitions for review of valuation with all counties, appraisal districts and/or Assessment Appeal_ Boards, Boards of Review, or Boards of Equalization, appearing on our behalf before said Boards, examining any records, and discussing with the appropriate governmental authority the xgccs=nent of the property located at the following address: 3001 North Juniper Street Hudson, Weld County, Colorado Schedule #86775763 / Panel 0130726201002 This property being owned by the undersigned incorporated in the State of Colorado.. This agency shall remain in effect for the 2013 and.2014 assessment years, as well as the 2011 and 2012 abatement years. Signature f 7 /eel le/4/3 Subietibed and sworn to before matbis3 day of OtotAl NogrpYuWic &soot I' tees; .i _ nO. Fliffil Innovative Solu,;ens to Taxing Problems. July 15, 2013 CERTIFIED RETURN RECEIPT 7011 1150 0001 8720 8486 Weld County Board of Equalization 1150 O Street, PO Box 758 Greeley, CO 80631 Re: 2013 Property Protests 5251 DTC Parkway One DTC Suite 1045 Greenwood Village, CO 80111 Tel. 720.524.0022 Fax 720.524.0651 www.ryan.com Enclosed are the 2013 Objection to RS Property Ase nnents for the fol I owi ng taxpayers and pacels numbers: Taxpayer LN Real Estate LLC LN Real Estate LLC New Windsor Stati on L LC NEW W ndsor Station LLC New Windsor Station LLC New Windsor Station LLC NEW WINDSOR STATION LLC NEW WI NDSOR STATION LLC REALTY INCOME CORPORATION Western Equipment Truck Inc Inland PPD Hudson Associates, LLC Pacel R0208287 R8372200 R2429803 R2429903 R2430003 R2430303 R2431003 R2431103 120723202014 096124201001 R6775763 If you have questions, or need additional information, please contact Mr. Ian Janes at (720) 524- 0022. Si ncerei y, M i chel le Turner Senior Analyst 7011 1150 0001 8720 8486 Greenwood Village, Colorado 80111 00 o rn N C q 7-c0 o0o O o c a O w N T) O N 0 OO O O CCA Awarded Contract to Purchase and Operate Lake Erie Correctional Institution in Ohio September 1, 2011 4:18 PM ET NASHVILLE, TN, Sep 01, 2011 (MARKETWIRE via COMTEX) -- CCA (Corrections Corporation of America) (NYSE: CXW), the nation's largest partnership corrections provider to government agencies, announced today that it has entered into a contract with the state of Ohio to purchase and operate the 1,798 -bed Lake Erie Correctional Institution located in Conneaut, Ohio. The Lake Erie facility is currently managed by another private operator. This contract represents the first contract CCA has had with the state of Ohio. CCA will purchase the 1,798 -bed Lake Erie facility, which was constructed in 1999, for a purchase price of approximately $73.0 million and expects to invest approximately $3.1 million in capital improvements. The management contract, which is expected to commence on January 1, 2012, has an initial term of twenty years with unlimited renewal options subject to appropriations and mutual agreement. The contract also provides a guaranteed occupancy of 90 percent. CCA will be compensated by a per diem rate for operating related services and an Annual Ownership Fee (AOF) for costs associated with the ownership of the facility. On a combined basis operating results will be similar to our owned and managed business segment. Damon Hininger, president and CEO, stated, "This award is unprecedented in the partnership corrections industry as it represents the rust purchase of a correctional facility from a state, which we believe signifies that states are looking for innovative solutions to their budgetary challenges." Hininger added, "We are excited to start a new partnership with the state of Ohio and look forward to developing a long-standing relationship with the Ohio Department of Rehabilitation and Correction and the Conneaut community. We value the trust the state of Ohio has placed in us and we will work closely with the state of Ohio, the Ohio Department of Rehabilitation and Correction, the Conneaut community and the current operator to ensure a smooth transition." About CCA CCA is the nation's largest owner and operator of partnership correction and detention facilities and one of the largest prison operators in the United States, behind only the federal government and three states. We currently operate 66 facilities, including 45 company -owned facilities, with a total design capacity of approximately 90,000 beds in 20 states and the District of Columbia. We specialize in owning, operating and managing prisons and other correctional facilities and providing inmate residential and prisoner transportation services for governmental agencies. In addition to providing the fundamental residential services relating to inmates, our facilities offer a variety of rehabilitation and educational programs, including basic education, religious services, life skills and employment training and substance abuse treatment. These services are intended to reduce recidivism and to prepare inmates for their successful re-entry into society upon their release. We also provide health care (including medical, dental and psychiatric services), food services and work and recreational programs. Forward -Looking Statements This press release contains statements as to our beliefs and expectations of the outcome of future events that are forward -looking statements as defined within the meaning of the Private Securities Litigation Reform Act of 1995. These forward -looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the statements made. These include, but are not limited to, the risks and uncertainties associated with: (i) general economic and market conditions, including the impact governmental budgets can have on our per diem rates, occupancy, and overall utilization; (ii) fluctuations in our operating results because of, among other things, changes in occupancy levels, competition, increases in cost of operations, fluctuations in interest rates and risks of operations; (iii) our ability to obtain and maintain correctional facility management contracts, including as a result of sufficient governmental appropriations and as a result of inmate disturbances; (iv) changes in the privatization of the corrections and detention industry, the public acceptance of our services, the timing of the opening of and demand for new prison facilities and the commencement of new management contracts; (v) the outcome of a lawsuit that has been filed challenging the legislation with authorized the pending transaction with the state Ohio (vi) the outcome of California's realignment program and its utilization of out of state private correctional capacity; and (vii) increases in costs to construct or Page 1/2 expand correctional facilities that exceed original estimates, or the inability to complete such projects on schedule as a result of various factors, many of which are beyond our control, such as weather, labor conditions and material shortages, resulting in increased construction costs. Other factors that could cause operating and financial results to differ are described in the filings made from time to time by us with the Securities and Exchange Commission. CCA takes no responsibility for updating the information contained in this press release following the date hereof to reflect events or circumstances occurring after the date hereof or the occurrence of unanticipated events or for any changes or modifications made to this press release. Contact: Karin Demler Investors 615-263-3005 Steve Owen Media 615-263-3107 SOURCE: Corrections Corporation of America Page 2/2 Tammy Waters From: Courtney Maya Sent: Monday, July 29, 2013 2:52 PM To: Esther Gesick Cc: Tammy Waters Subject: FW: Inland PPD (Weld County) Attachments: CCA Purchase of Lake Erie Correctional Facility.pdf Importance: High Hi Esther, I just saved two more CBOE packets out there for UNITZ LLC and INLAND HUDSON for tomorrow's hearings. I'm forwarding this email to you regarding the INLAND PPD HUDSON hearing. They are unable to attend the hearing, but it sounds like they want their letter to be read into the hearing. Please see email below. Thanks! Courtney Anaya Assistant Analyst Weld County Assessor's Office (970) 353-3845 ext. 3670 canaya@co.weld.co.us Confidentiality Notice: This electronic transmission and any attached documents or other writings are intended only for the person or entity to which it is addressed and may contain information that is privileged, confidential or otherwise protected from disclosure. If you have received this communication in error, please immediately notify sender by return e-mail and destroy the communication. Any disclosure, copying, distribution or the taking of any action concerning the contents of this communication or any attachments by anyone other than the named recipient is strictly prohibited. From: Noel Lawrence Sent: Monday, July 29, 2013 2:39 PM To: Courtney Anaya Subject: FW: Inland PPD (Weld County) Importance: High Here is what Chuck received this afternoon. From: Charles Jack Sent: Monday, July 29, 2013 1:25 PM To: Noel Lawrence Subject: FW: Inland PPD (Weld County) Importance: High Charles C. Jack Commercial Appraiser Weld County Assessor's Office 1400 N. 17th Avenue, Greeley, Co Phone: 970-353-3845 Ext.3676 Confidentiality Notice: This electronic transmission and any attached documents or other writings are intended only for the person or entity to which it is addressed and may contain information that is privileged, confidential or otherwise protected from disclosure. If you have received this communication in error, please immediately notify sender by return e-mail and destroy the communication. Any disclosure, copying, distribution or the taking of any action concerning the contents of this communication or any attachments by anyone other than the named recipient is strictly prohibited. From: LoRusso, Mark [mailto:Mark.LoRusso@rvan.com] Sent: Monday, July 29, 2013 1:18 PM To: Charles Jack Cc: Poling, Matthew; Alcock, Sarah Subject: FW: Inland PPD (Weld County) Importance: High Hi Chuck. I'm assisting Matt Poling with the 2013 examination of taxable value for Inland PPD Hudson Associates (Hudson Correctional Facility). Due to conflicts in schedule and the short notice given by the board, we will not be able to attend to the BOE hearing tomorrow. I'm notifying the board today of this conflict and will, in lieu of an appearance, simply ask the BOE to consider a letter submitted by our office in support of the appeal. At this point, we are leaning heavily on a benchmark of approximately $40,000 per bed as the proper value for Hudson. We have two sources supporting this position. A review of other facility assessments in Colorado indicates a clustering of $40,000 per bed. See summary table below. Some of the values below are under appeal, but nonetheless provide an instructional benchmark for comparison. Facility 2013 Val County ST # of Beds 2013 Proposed Value per Bed Huerfano County Correctional Center Huerfano CO 752 Bent County Correctional Center Bent CO 1,420 Kit Carson County Correctional Center Kit Carson CO 1,488 Crowley County Correctional Center Crowley CO 1,720 Hudson Correctional Facility 5,380 Weld CO 1250 27,528,349 55,394,230 58,000,000 72,500,000 36,607 39,010 38,978 42,151 213,422,579 39,670 61,914,792 49,532 While we realize Weld County is not bound by assessments in other counties, it is helpful to know how other county appraisers have valued similar properties...especially when there is not a lot of market data available for analysis. Also, there was a late 2011 transaction of significance in Ohio with CCA purchasing the Lake Erie Correctional facility for $72.7 million or $40,434 per bed (1798 beds). The deal came with a state guarantee of 90% occupancy, a substantial driver in the selling price. See attached. 2 If we use $40,000 per bed as a reasonable benchmark for the Hudson facility, the resulting value is $50,000,000. We are also analyzing the Hudson facility's actual income and expenses for a potential income value indication. The preliminary analysis indicates a much lower value than $50,000,000. However, for purposes of the 2013 BOE hearing, we are requesting a value of $50,000,000. Thanks for your consideration. Regards, Mark LoRusso From: Poling, Matthew Sent: Thursday, July 25, 2013 9:36 AM To: LoRusso, Mark Subject: FW: Inland PPD (Weld County) From: Charles Jack jmailto:cjack@co.weld.co.usj Sent: Wednesday, July 24, 2013 11:30 AM To: Poling, Matthew Subject: Inland PPD (Weld County) Good Morning Mr. Poling, I'm getting started on the Inland PPD Hudson Associates county board appeal (Hudson Correctional Facility). It looks like the County Commissioners have it scheduled for 07/30/2013 at 1:30 pm. I think they just sent those notices out yesterday or the day before. Is there any pertinent information you would like to share with our office at this point in time or might this be an administrative denial to allow more time to gather data? Thank you for your help. Charles C. Jack Commercial Appraiser Weld County Assessor's Office 1400 N. 17th Avenue, Greeley, Co Phone: 970-353-3845 Ext.3676 Confidentiality Notice: This electronic transmission and any attached documents or other writings are intended only for the person or entity to which it is addressed and may contain information that is privileged, confidential or otherwise protected from disclosure. If you have received this communication in error, please immediately notify sender by return e-mail and destroy the communication. Any disclosure, copying, distribution or the taking of any action concerning the contents of this communication or any attachments by anyone other than the named recipient is strictly prohibited. *******iii******iii*********************************iii***S*************** Privileged/Confidential Information maybe contained in this message If you are not the addressee indicated in this message (or responsible for delivery of the message to such person), you may not copy or deliver this message to anyone. In such case, you should destroy this message, and notify us immediately. If you or your employer do not consent to Internet email messages of this kind, please advise us immediately. Opinions, conclusions and other information expressed in this message are not given or endorsed by my firm or employer unless otherwise indicated by an authorized representative 3 independent of this message. ************************************************************************** 4 July 22, 2013 CLERK TO THE BOARD PHONE (970) 336-7215, EXT 4226 FAX (970) 352-0242 WEBSITE: www.co.weld.co.us 1150 O STREET P.O. BOX 758 GREELEY CO 80632 INLAND PPD HUDSON ASSOCIATES C/O THE GEO GROUP, INC TAX DEPT 621 NW 53 ST SUITE 700 BACA RATON, FL 33487 Account No.: R6775763 Dear Petitioner(s): The Weld County Board of Equalization has set a date of July 30, 2013, at or about the hour of 1:45 PM, to hold a hearing on your valuation for assessment. This hearing will be held at the Weld County Administration Building, Assembly Room, 1150 O Street, Greeley, Colorado. You have a right to attend this hearing and present evidence in support of your petition. The Weld County Assessor or his designee will be present. The Board will make its decision on the basis of the record made at the aforementioned hearing, as well as your petition, so it would be in your interest to have a representative present. If you plan to be represented by an agent or an attorney at your hearing, prior to the hearing you shall provide, in writing to the Clerk to the Board's Office, an authorization for the agent or attorney to represent you. If you do not choose to attend this hearing, a decision will still be made by the Board by the close of business on August 5, 2013, and mailed to you on or before August 12, 2013. Because of the volume of cases before the Board of Equalization, most cases shall be limited to 10 minutes. Also due to volume, cases cannot be rescheduled. It is imperative that you provide evidence to support your position. This may include evidence that similar homes in your area are valued less than yours or you are being assessed on improvements you do not have. Please note: The fact that your valuation has increased cannot be your sole basis of appeal. Without documented evidence as indicated above, the Board will have no choice but to deny your appeal. If you wish to obtain the data supporting the Assessor's valuation of your property, please submit a written request directly to the Assessor's Office by fax (970) 304-6433, or if you have questions, call (970) 353-3845. Upon receipt of your written request, the Assessor will notify you of the estimated cost of providing such information. Payment must be made prior to the Assessor providing such information, at which time the Assessor will make the data available within three (3) working days, subject to any confidentiality requirements. AS0085 INLAND PPD HUDSON ASSOCIATES - R6775763 Page 2 Please advise me if you decide not to keep your appointment as scheduled. If you need any additional information, please call me at your convenience. Very truly yours, BOARD OF EQUALIZATION Esther E. Gesick Deputy Clerk to the Board cc: Christopher Woodruff, Assessor RYAN 5251 DTC PARKWAY ONE DTC SUITE 1045 GREENWOOD VILLAGE, CO 80111 AS0085 BOE SUMMARY SHEET Account Number: R6775763 INLAND PPD HUDSON ASSOCIATES C/O THE GEO GROUP, INC TAX DEPT 621 NW 53 ST SUITE 700 BACA RATON, FL 33487 HEARING DATE: July 30, 2 13, AT 1:45 PM YIV HEARING ATTENDED? ( NAME: AGENT NAME: APPRAISER NAME CCJ RYAN 5251 DTC PARKWAY ONE DTC SUITE 1045 GREENWOOD VILLAGE, CO 80111 DECISION ACTUAL VALUATION APPROVE BY ASSESSOR SET BY BOARD TOTAL ACTUAL VALUE $61,914,792.00 6/ 9/g 790t Ov COMMENTS: MOTION BY M A- TO SECONDED BY -DI R. Failed to prove appropriate value No comparables given Assessor's value upheld Other: Conway -- N) Garcia -- /N) �eetThi excused ri c kna n -- ( &N) Rademacher -- N) RESOLUTION NO. 2013-2023 M:\OBOE\Letter Templates\Summary Sheet.docx Hello