HomeMy WebLinkAbout20132109August 8, 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.Q. BOX 758
GREELEY CO 80632
LONGS PEAK BUSINESS CENTER LLC
7374 S ALTON WAY STE 203
CENTENNIAL, CO 80112
RE: THE BOARD OF EQUALIZATION 2013, WELD COUNTY COLORADO
APPROVAL OF STIPULATION BETWEEN PETITIONER AND ASSESSOR
ACCOUNT NO.: R4647307
Dear Petitioner:
On August 01, 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 request to approve and adopt a valuation of your property arrived at by a
Stipulation between you and the Weld County Assessor, for the year 2013.
The Board of Equalization found that the evidence presented at the hearing supported the
stipulated 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.
ACTUAL VALUE AS STIPULATED VALUE
DETERMINED BY ASSESSOR APPROVED BY BOARD
$2,303,378.00 $1,931,400.00
The above 'Stipulated Value' is the value which will be used in the calculation of your property
taxes for 2013. This value is not appealable.
If you have questions concerning the above information, please call me at (970) 336-7215,
Ext. 4226.
Very truly yours,
Esther E. Gesick, Deputy Clerk
Weld County Board of County Commissioners
Cc: Christopher Woodruff, Weld County Assessor
STERLING PROPERTY TAX SPECIALISTS INC
950 S CHERRY ST SUITE 320
DENVER, CO 80246
Cc) Poi -
2013 -2109
A$0085
COUNTY BOARD OF EQUALIZATION
WELD COUNTY
Single County Schedule Number R4647307
STIPULATION (As To Tax Year_2013_ Actual Value)
RE PETITION OF :
NAME: LONGS PEAK BUSINESS CENTER LLC
ADDRESS: 5073 Silver Peaks Av.
Dacono, CO
JUL 29 2013
WELD CO',14 • f l',SSE
GaSEL'ec
Petitioner (s) and the Weld County Assessor hereby enter into this Stipulation
regarding the tax year 2013 valuation of the subject property, and jointly move the Board
of Equalization to enter its order based on this Stipulation.
Petitioner (s) and Assessor agree and stipulate as follows:
1. The property subject to this Stipulation is described as:
L2 BLK1 (CARLSON ANNEX) SILVER PEAKS AT DACONO FG #2
2. The subject property is classified as Commercial property.
3. The County Assessor originally assigned the following actual value to the
subject property for the tax year 2013:
Total $2,303,378.00
4. After further review and negotiation, Petitioner (s) and Weld County Assessor
agree to the following tax year 2013 actual value for the subject property:
Total $1,931,400.00
5. The valuation, as established above, shall be binding only with respect to tax
year 2013.
6. Brief narrative as to why the reduction was made:
Actual income indicated an adjustment.
7. Both parties agree that:
❑The hearing scheduled before the Board of Equalization on (Date) at
(Time) be vacated.
R4647307
NA hearing has not yet been scheduled before the Board of Equalization.
1
2013-2109
19 da 01
Petitioner(s) or Agent ttorney
Address:
qSb S,
Sic . 31.-A
mile,, C- R o2Ll,kv
Telephone: 3u3-�S'7
Docket Number n/a
Stip-1.Frm
R4647307
2i
ssists fit) County At[orney for
Respondent, Weld County Board of
Commissioners
Address:
1150 "0" Street
P.O. Box 758
Greeley, CO 80632
Telephone:(970) 336-7235
Address:
1400 N.17th Avenue
Greeley, CO 80631
Telephone: (970) 353-3845 ext. 3697
2
NOTICE OF DETERMINATION
Christopher M. Woodruff
Weld County Assessor
1400 N 17th Ave
Greeley, CO 80631
ACCOUNT NO.
R4647307
TAX YEAR
TAX AREA
Date of Notice: 6/27/2013
Telephone: (970) 353-3845
Fax: (970) 304-6433
Office Hours: 8:00 AM - 5:00 PM
LEGAL DESCRIPTION/ PHYSICAL LOCATION
2013
LONGS PEAK BUSINESS CENTER LLC
7374 S ALTON WAY STE 203
CENTENNIAL, CO 80112
2981
DAC 2SPD L2 BLK1 (CARLSON ANNEX) SILVER
PEAKS AT DACONO FG #2 5073 SILVER PEAKS
AV DACONO, CO
PROPERTY CLASSIFICATION
COMMERCIAL
INDUSTRIAL
ASSESSOR'S VALUATION
ACTUAL VALUE PRIOR TO i ACTUAL VALUE AFTER.
REVIEW REVIEW
940,701
1,362,677
TOTAL
$2,303,378
940,701
1,362,677
$2,303,378
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:
CM06 - The assessor's staff has requested information which is pertinent and critical to proper
evaluation of your property's value. Because we have not received this information, we have no
choice but to deny any adjustments.
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 lodDI taxing authorities
Please refer to the reverse side of this notice for add itional,.informatiod
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RECEIVE{*
JUL ! 7 2a13
WELD COUNTY
COMMISSIONERS
STERLING PROPERTY TAX SPECIALISTS INC
950 S CHERRY ST SUITE 320
DENVER, CO 80246
15-DPT-AR
PR 207-08/13
R4647307 18162
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
1313 Sherman Street, Room 315
Denver, CO 80203
(303) 866-5880
www.dola.colorado.qov/baa
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.)
$ ►. hot $oo
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.)
Nag& see i-�A /id .
District Court
Contact the District Court in the County
where the property is located. See your
local telephone book for the address and
telephone number.
I ATTESTATION
I, the undersigned ow
her and on any
or y-ent"' of the property identified above, affirm that the statements contained
hereto are true and complete.
got -7s?-sgoe 7/1/13
Telephone Number Dat
Co Wf
Email
237 Attach letter of authorization signed by property owner.
Address
15-DPT-AR
PR 207-08/13
R4647307 18162
PROPERTY TAX SPECIALISTS. INC
May 21, 2013
Mr. Christopher Woodruff
Weld County Assessor
1400 N. 17t' Avenue
Greeley, CO 80631
RE: 5073 Silver Peaks Ave. (Schedule Number R4647307) (the "Property")
95o S. Cherry Street
Suite 320
Denver, CO 80246
303.757.8865
fax 3037577691
www.sterlingpts.com
Dear Assessor:
The undersigned, Sterling Property Tax Specialists, Inc., represents the owner of the Property for
the purpose of protesting the 2013 Notice of Valuation. A copy of the Letter of Authorization is
attached hereto and made an integral part hereof.
The Property is an industrial multi -tenant building consisting of approximately 42,920 square feet
gross building area. The Property was constructed in 2007 and as of the date of value, June 30,
2012, has not stabilized. Changes in the economy as well as an oversupply of competing space
eroded net revenue due to reduced rent rates, high vacancy and collection losses.
During the base period, two leases were originated. A lease for $6.25 per square foot triple net
was originated early in the base period. A second lease, in November 2011, was leased on a gross
basis for $8.00 per square foot. In 2012, the rent roll shows actual triple net charges of $3.32 per
square foot. Utilizing the actual triple net charges, a comparison of the base period leases can be
made.
Base Period leases NNN Rent Rate NNN expenses Gross Rent rate
2,873 sq. ft. @ $6.25 NNN $6.25
3,497 sq. ft. @ $8.00 Gross $4.68
Weighted Average $5.39
$3.32 $9.57
$3.32 $8.00
$32
$8.71
The rent roll dated June 30, 2012 is attached hereto as Exhibit A and made an integral part hereof.
In 2010 and continuing into the base period, tenants defaulting on their leases have resulted in an
effective vacancy, through collection loss, that is higher than the vacancy shown on the rent roll
information. A tenant occupying 9,700 square feet was in default and paying no rent. A tenant,
doing business as Mary Jane's, a marijuana distributor, was paying gross rent of only $3.32 per
square foot. On the date of valuation, June 30, 2012, the Property was 100% occupied as shown
on the rent roll; however, the effective economic vacancy on the date of valuation was 29%. The
calculation for effective vacancy is attached hereto as Exhibit B and made an integral part hereof.
5073 Silver Peaks Ave.
Page 2
The Property is a multi -tenant investment property. As such, Petitioner contends an income
analysis provides the most reliable indication of value for the Property. Petitioner has utilized the
net leasable area of 42,313 square feet as shown on the rent roll. Petition has given weight to the
base period leases and utilized a gross rent rate of $8.70 per square foot. Petitioner has allowed
10% for stabilized vacancy. In 2011 and 2012, the actual allowable expenses were $2.39 and
$2.13 per square foot respectively. In the income analysis, Petitioner has utilized $2.00 per square
foot for expenses. Petitioner has deducted 3% for reserves for replacement. Petitioner has utilized
a capitalization rate of 9% and added the effective tax rate of 3.4% for a tax loaded cap rate of
12.4%. In light of the 19% excess vacancy, Petitioner has deducted an adjustment for excess
vacancy.
The Petitioner's income analysis is as follows:
Potential Gross Income (42,313 X $8.70 PSF)
Stabilized Vacancy at 10%
Effective Gross Income
Expenses ($2.00 PSF)
Reserves for Replacement at 3%
Total Expenses
NOI
Capitalized at 12.4% (9% + 3.4%)
Adjustment for Excess Vacancy (Exhibit C)
Value After Adjustment for Excess Vacancy
$ 84,626
9,939
$ 368,123
36,812
331,311
94,565
236,746
$ 1,909,242
299,400
$ 1,609,800 (rounded)
The calculation for the adjustment for excess vacancy' is attached hereto
integral part hereof.
Based upon the foregoing, Petitioner hereby requests the Assessor
Property for calendar year 2013 to $1,609,800 (rounded).
All information contained herein should be considered confidential and
parties.
Sincerely,
STERLING PROPERTY TAX SPECIALISTS, INC.
B
Brenda L. Fearn, Property Tax Consultant
as Exhibit C and made an
adjust the value for the
not available to any third
LETTER OF AUTHORIZATION
September 20,?01?
Sterling Property Tax Specialists. Inc.
950 South Cherry Street. Suite 320
Denver. Colorado 80246
RE: 2013 and ?0I4 Property Tax Assessment Matters
Gentlemen:
The undersigned, as owner(s) of property located in Weld County, Colorado. at SEE
ATTACHED. and more particularly described on Assessor's Notice of Valuation,
Schedule No(s). SEE ATTACHED hereby authorizes Sterling Property Tax Specialists,
Inc. and Barry J. Goldstein. Esq.. to act as agent on my behalf regarding all 2013 and
2014 property tax assessment matters. and obtain any and all documents relating thereto
and file any protests necessary. This Authorization shall be effective as of the date set
forth above.
LONGS PEAK BUSINESS CENTER. LLC
By Resolute investments. Inc.. Manatzer
By: Gary Rohf, Pitesident
Telephone: 303-645-0505
Resolute Investments
Weld County
2013/2014
Lones Peak Business Center. LLC
5073 Silver Peaks Ave. R4647307
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PETITIONER'S
EXHIBIT
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Total Square Footage:
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76 711
F E a. E .4 0
Vacant Units:
al 0
Exhibit B
Vacancy calculations
Net Leasable Area
Occupied units (not in default)
Total occupied square feet
Effective occupancy
Vacancy
3,497 sq. ft
2,873 sq. ft
6,990 sq. ft
15,181 sq. ft
1.547 sq. ft*
30,088 sq. ft
G
PETITIONER'S
EXHIBIT
B
42,313 sq. ft
71% (rounded)
29% (rounded)
$8.70
* Gross market rent
$3.32
Mary Jane's Foss rent 38%
Percentage of gross market rent paid by Mary Jane's
Square footage of Mary Jane's unit 4,072 sq. ft
Multiplied by the % of market rent paid sq. ft 38%
Effective market occupancy 1
4ET RENTABLE AREA:
CIET OPERATING INCOME (NOI)
ACTUAL VACANCY
NORMAL VACANCY
EXCESS VACANCY
EXCESS VACANCY DISCOUNTING
SCHEDULE #: R4647307
ADDRESS: 5073 Silver Peaks
42,313
NET OPERATING INCO1 ON
S (ANNUAL)
(Excess Vacancy
ABSORPTION FACTOR
DISCOUNT TO
ANNUALIZED
(
1 YES @
2_9%
10°/u
$236,745
19°/u
9.0% )
FACTOR ABSORPTION ADJ. FACTOR
YEAR 1.00 0.917431
1 0.917431 0
0.000000 0.00
0 0.00 0
0 0.000000 0
0.000000 0.00
0 0.00
0 0.000000 0.917
FINAL FACTOR =
BE APPLIED - INCOME LOSS
(annual Loss a Final Factor)
TENANT FINISH AND LEASING COSTS $35.00
Tenant Finish and Leasing Costs per Square Foot = s ah aIIon)
((Cost per sq t a Excess vacant sgft) / # of years
FACTOR ABSORPTION ADJ. FACTOR
YEAR 1.00 0.917431
1 0.917431 0
0.000000 1.00
0 1.00 0
0 0.000000 0
0.000000 1.00
0 1.00 0
0 0.000000 0 917
FINAL FACTOR =
DISCOUNT TO BE APPLIED - TEN. FIN. & LEASING COSTS
FINAL DISCOUNT
$44,982
$281,381
$41,300
$258,100
$299,400
P!!III!!!\11
PROPERTY TAX SPECIALISTS. INC
95o S. Cherry Street
Suite 320
Denver, CO 80246
Weld County Board of Equalization
c/o Weld County Assessor
1400 N. 17th Avenue
Greeley, CO 80631
UNITED STATES
POSTAL SERVICE
1000
80631
i
RETURN RECEIPT
REQUE3TEO
U.S. POSTAGE
PAID
DENVER.CO
80246
JUL 15.'13
AMOUNT
j1j!'�li!Ll!�f"tli`t�ii�j !f„1'l i'�•'i'I;!'�li!i!�''i
$7.17
0007,155-10
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