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HomeMy WebLinkAbout20132154August 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.O. BOX 758 GREELEY CO 80632 WILKENING STORAGE LLC 11535 W HAMPDEN AVE LAKEWOOD, CO 80227 RE: THE BOARD OF EQUALIZATION 2013, WELD COUNTY COLORADO APPROVAL OF STIPULATION BETWEEN PETITIONER AND ASSESSOR ACCOUNT NO.: R0841201 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 $1,756,619.00 $1,368,306.00 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, ,4444, Esther E. Gesick, Deputy Clerk Weld County Board of County Commissioners Cc: Christopher Woodruff, Weld County Assessor Rth 2k 2013-2154 AS0085 COUNTY BOARD OF EQUALIZATION WELD COUNTY Single County Schedule Number R0841201 STIPULATION (As To Tax Year_2013_ Actual Value) RE PETITION OF : Windsor Commons Self Storage NAME: Wilkening Storage LLC ADDRESS: 1172 Automation Drive Windsor, CO 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: WIN 1WCOM L5 WINDSOR COMMONS 1ST FG 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 $1,756,619.00 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 $1,368,306.00 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: Analysis of the subjects accurate actual income and expenses. 7. Both parties agree that: ®The hearing scheduled before the Board of Equalization on 07/30/13 at 2:15 p.m. be vacated. ❑A hearing has not yet been scheduled before the Board of Equalization. R0841201 1 2013-2154 TED this 24th day of July, 2013. etitio, er(s) or Agent : • ney --(Assistant) County A orney for `�I L JS -E4 (r \ - c c_ d -C Respondent, Weld County Board of Commissioners Address: /./ '7 Z._. /fLc;ro. r i r'rcn4....... Gc) A1.44ne R e o gc, 5'.sr Telephone: 7zo •7 Docket Number Stip-1.Frm R0841201 Address: 1150 "O" 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 Date of Notice: 6/27/2013 Telephone: (970) 353-3845 Fax: (970) 304-6433 Office Hours: 8:00 AM - 5:00 PM ACCOUNT NO. TAX YEAR. TAX AREA. LEGAL DESCRIPTION1.PHYSICALLOCATION R0841201 2013 0436 et w 2 O ul a> O: a. WILKENING STORAGE LLC 11535 W HAMPDEN AVE LAKEWOOD, CO 80227 WIN 1WCOM L5 WINDSOR COMMONS 1ST FG PROPERTY CLASSIFICATION ASSESSOR'S VALUATION ACTUALVALUE PRIOR TO .. REVIEW - ACTUAL VALUE AFTER' REVIEW RESIDENTIAL COMMERCIAL 52,173 1,704,446 TOTAL $1,756,619 52,173 1,704,446 $1,756,619 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: CM05 - The law requires that all of 2 1 and the firs 6months of 2_2 data be used to establish current values. We have consi red all (3) three approaches to value in arriving at your current valuation. We have denied your appeal based upon this data. 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.E.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. Please refer to the reverse side of this notice for additional information. RECEIVED in 152013 WELD COUNTY COMMISSIONERS 15-DPT-AR PR 207-08/13 R0841201 16289 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: RECEIVED Weld County Board of Equalization 1150 O Street, P.O. Box 758 Greeley, CO 80631 Telephone: (970) 356-4000 ext, 4225 JUL. 1 5 202 WELD COUNTY To preserve your appeal ri hts COMMISSIONEJRSS g , your Petition to the County Board of Equalization must e 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 (303) 866-5880 ti- local telephone book for the your 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. LPETITION 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.) 25—®` O0C]_ 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.) , r"!'c.r4caiIN Ail771/E v''A nccei}efr-, ,3 . ATTESTATION I, the u rsigned owner or agent2521 of the property identified above, affirm that the statements contained here/ .nd yn any attachments hereto are true and complete. 1 Signatur rv cmyte, Email 7Zo m-2 -g®7 2.o/.; Telephone Number Date 2521 Attach letter of authorization signed by property owner. CAS r &k E 1.LC C / l 5__.5- . 1/47,41P.1364 4v &: . 4(i/4CGo ®®.h' co ( 2. 2.-i Address 15-DPT-AR PR 207-08/13 R0841201 16289 Subject Property: Windsor Commons Self Storage 1172 Automation Drive Windsor, CO 80550 Owner: Wilkening Storage LLC Account: R0841201 Legal Description: WIN 1WCOM L5 WINDSOR COMMONS 15T FG 2013 Real Property Notice of Determination Appeal Property Owner's estimate of the property's value as of June 30, 2012: $1,250,000 Allocated as follows: Residential $29,732 Commercial $1,220,268 Basis for Owner's estimate of value or reason for requesting review: The attached analysis of the 2013 Real Property Notices of Valuation of seventeen (17) self -storage properties in Weld County shows the following: • The subject property's valuation INCREASED 74.49% while all but one of the other properties' values either DECREASED as much as 1.73%, stayed the same, or increased a maximum of 12.34%. • The subject property's assessed valuation per commercial square foot was $40.74. The average of the other properties compared above was $28.82 per commercial square foot. The average of all of the other properties analyzed, excluding the highest and lowest properties, is $29.59 per commercial square foot. Applying this average to the subject property results in a more appropriate valuation of $1,237,838. • The Weld County Assessor is NOT applying valuation criteria fairly or appropriately to comparable self -storage properties in Weld County. • The Assessor did not consider all (3) three approaches in arriving at the current value of the subject property. • The only sold property during the valuation period used by the Assessor as a comparable also saw its valuation increase 70.7%, a smaller yet still Page 1 of 3 unreasonable increase compared to the subject property and the other properties analyzed. The property used by the Assessor as a comparable is five (5) years newer than the subject property. • Self -storage properties, unless in significant disrepair, extremely older, or in unsafe locations, all command similar rental rates for the units they offer. By unfairly over -taxing certain properties compared to their competition, the Assessor is placing the unfairly taxed properties at a significant competitive disadvantage. The following comparison of estimated 2013 property tax as a percent of revenue illustrates this disadvantage. The subject property is compared to its closest competitor, Windsor Guardian Self Storage, and assumes similar annual revenues per square foot ($6.64/sq. ft.) since known rental rates are similar. Estimated 2013 taxes as a percent of revenue: Subject Property 17.25% Windsor Guardian 10.27% Therefore, in order to maintain a comparable investment value the subject property would need to raise its rental rates by 7%. Since rental rates are already comparable, the subject property is not able to do this without losing significant business to the competition, also reducing the value of the investment. The Assessor is, therefore, unfairly penalizing the subject property with his valuation. The current owner purchased the property based on a trailing 12 -month net income analysis using amounts provided by the previous owner and verified to bank statement activity, the annual net income was $117,783. (See attached P&L Statement Activity spreadsheet) The subject property is considered a Tier 2, condition A- to B property due to its location and age. The property when purchased was only approximately 83% occupied and had significantly below -market rental rates. The typical CAP Rate for Tier 2 Colorado, A- to B condition self -storage properties with lower occupancy rates and below -market rental rates ranges between 9.0% to 10.0%. Applying these CAP Rates to the trailing 12 -month net income results in a range of value between $1,177,832 and $1,308,702. In addition to low occupancy and below -market rental rates, the subject property had a large number of highly discounted rental rates (off of the already below - Page 2 of 3 market rates), and approximately 20% of tenants seriously in arrears in rental payments (a very high accounts receivable balance). The amount paid for the subject property was NOT based on its true market value at the time of purchase, but was in anticipation of potential upside from significantly improved management of the property over a multi -year period. The original actual cost to purchase the land and build the subject self -storage facility in 2003 was $1,930,212. The current owner paid less than the property originally cost to build. Assuming straight-line depreciation over a 30 -year life, the depreciated value of the property at June 30, 2012 would be $910,148. The Assessor's valuation of the residential portion of the subject real property was INCREASED 75.48% from $29,732 to $52,173. This portion of the real property is a NON -INCOME producing asset and was not considered in the current owner's evaluation of the property for purchase. The current owner also had to repair damage to the apartment in the amount of $8,624 to just get the apartment back to its previously assessed value. The assessed valuation of this portion of the real property should not have been increased at all. Thank you for your careful consideration of the above points in determining the fair and reasonable tax valuation of the property. Page 3 of 3 E o o 2 a o U jp vl > O I, N O d O Z 0 0 0 0 m 0 N O N Q 0 - Co O u o a N v n v 0 R m N L O h y ten To h d o c x • o a E > C O d s if_ v 1 U1 Co E u m E ' O 0 U N m e u m N � U >-m O > 0. U m CL U v to e uC m m U > v e 0 > 0 U a v > 0_ > 0. C O G O Z Property Owner Property Name / Address N n M m a n m o N N V N N N L� IA a Co 0 N R M Co • o m o n ti " N n ti 0 a m a n m n N 0 1 • L. 0 0 0 m V} V00 n a N N IA N N Co co co N IA m 0 N n L) CO 0 0 L. O N CO CC u v u O 0L N Y IA N 0 m N 0 0 o O 0 .4 l0 Co 0 CO m .4 oo n N N CO N n IA IA 0- Ih o N 01 0 m m 0 nl ry N ti t0 O 0] N 0 01 0 N n vA N LY V} IA M N m In m IA ao eQ no en a o Co n Co m Leiul N ti N i 0. LI. 0 ID 0 0 ni 0 � Ca m a n . m .4 n m m a 0 o Co CO rl 0 N o Co • eti 0. IA LO O 0 .4 O 0 0 CC CC W 00 a R2996004 $ 478,689 $ LI C 2 0 t0 0 Co a N N N LY 0 0 m o a rn V1 rn 0 0 co co N 0 n 0 S 0 CO $ 1,375,941 $ 1,384,615 $ VY a 0 N In m a Co us N I? 0 w CO o m a R Ol N N N m IA 0 C N n 0 O m co C a 00 0 g g ems. A. O 0 0 a vi N d n: CO Co CO n 0 W 0 In M N n - N CO .4 Ol N N Co N N N IA IA +A in o Co .4 0 M o o n Ni. 0 n t -i. 0 L) 0 0 e 0 N 0 0 0 0 n 0 N IA IA N 0 0 o a 0 v N o N a Co IA Co 0 Li, en 0 a 6 a N N in - 0 0 0 of d L) N N 0 n 0 0 c -I N N - N o N O Co n a o L1 N 0 0 0 0 ct ry 0 n N IA IA co to o m n a - o • 0 0 ct ¢ 0 a 0 Westmoor Comms LLC IA Ln 87,535 $ (5,29 IA a m In +A Co w Co n In co" ti N IA IA 20,800 $ 32.82 N eN° Vn 0 Co 0 0 00 .-I M iA IA iA N n a Co N Co 10 0 m N ri L m a N n N Co N N t0 m 01 N Coi Co Co a IA +A L) e o o e O O O' '0. Vl 0 O nln 0 0 vl N. C) N V N m oo n oo Co • w A V IA 4A Co N m 0 O 0 n .-I Co ry m Co o n a m a m in o a n a N .4 'VT VT V! L! iA N N 0 CC Lil O a 00 Oti Co .-I 0 Co fo rel. Co Cof a o n 0 a 0 CO N .-I NO 0. 0 0 N 0 0 Co 0 0 0 Co 0 M0 n 0 N N n CO M M N .. m Co 0 CC CC CC CC Majors Dale Corp 0 0 0 0 h v al m m m O O O j O 0 i O W 0 M w 0 Co N N p 5 O O 0 el' i+ W W N O OD O O 0 L "- ' v W • c O v 0 N C C CO VI v O OO o a U p 00> L> Co > O 03 p U O U 2 2 U O n v 0 0 Z O L O Q Q i 0, • 0 CC u 0 o L o Y 0 E a ;6. -2m l7 O '^ ° v m >i v u v w m >': m u'Et. m y r, p w % J W 9 w W VI a v al m w l0 v O v M C d moo v U n C Ve o C N C o O> N v Co y v) SE N in In v .4 tO O O N O n 4, Co N N W 0 Co O .4 O n p .4 § p a V1 O a (9 y N V' N U' 4 m ONO C 'O 'O d .rE+ Li! O W C C C CD ti 01 v� o ▪ a R3854086 $ 1,550,080 $ 1,660,969 $ 110,889 Yoshida Partners ei 5 0 I0 O a.EO U O .= w en TD N 0 v o 0 o 0 G 0 Co N LF 0 0 N n R8124499 $ 700,000 $ 0 O L W J2 5 O > m 0 0 w N C O L 0 C E ° 0 2 n p m U) CO N Vn a0 m to 0 o V V 0 co O a U 0 >- a; n 0 i m 0 N O N Q 3 m U O a Na, cmi n O U W 0 W al a O a) N d m ai a a m Q `0 a q } J to O F m t E T c > E o w 0. y u O. O 3 0. c 3 • ° z0 E LL V t� s u v .ac u co a >- " > a on u m ✓ 0 .0 V a a O ▪ J V n 0 U U N T • a e — U Property Owner Property Name / Address N N v m N N CO N n m O N m m U) cO m 0000 N V. 00 0 0. 0 M V) CO m 0 0. O in o N to o. o o in of N N CO ti to m ai N ti m ti N 0 O W N v 591,703 $ 629,448 $ an r -- e n to m co n ur u an N .L4 to n o 0 .y. N o oin m to 0 n N O t0 aS N CO en a m ri a m co o N ci N tp ▪ n V N a n 0 M ro 0 N LO d o ci $ 272,901 $ 272,901 $ N W to a v a; m m 4/1 an ur in a 0 0 CO N c, -1O N. Na co W U) en ^ tto ▪ m ci ei art ai' v an N N 0 CO u . + mi 0 N. •a O 0; od LI w ci Ol N N t0 W rl r Vr Lr VI- N 0 0 t0 10 N CO o m CO m m en 0 n 0 co co o co m a 4 a en 4 en ti co 2 co Co c W ry' Q u Q u • ci O Ci in N O N O o N 0 2 Schnuerle, Charles O m ¢ m T o m a o a CO c7 U m m m to 4 n to m to to to m en co uo o co o to n n to n an yr a m mo co ro en o O 52,080 $ 10,198 CO rT a N 6 m W 0 Co n of m t0 en n ri en n to to en O CO CO or VI N W U) N to CO N LO n n R2808986 $ 635,256 $ 0 an to m CO Co No WI O - a V Vt m m m m CON n n It Co N a C O m ' u o as H — E ' m a a m LL a ^ m O Note: Based on Bank Statement A _20 rjit 0 N N O O N z Q a E NN mo NM OM en de mm o 01ee ID NM OM RR NM Oe 00 Ma Na nri NN em ma en r. em a. mm 66 em ON mo mo mn NN NN WO TT mm o n Rd e • e mM mn mN nn me mn em »» TN MN 66 Me 00 NN NM m C $ 10,667.00 $ 140,220.16 $ 14,470.21 $ 14,965.27 $ 15,723.14 $ 11,321.04 $ 15,811.83 $ 17,227.14 $ 17,249.73 0 IN NI N C1 0 NI 01 CON 0 O m W qqqm O N ' o0000 N 0 ▪ 0 0 0 a NON w M N < ▪ »»N»»... N NNLi- »N»»N».1»» 0 0 oo emm 0 e N 6 6 06 o e, e m o 0 o CO o coo° a 6 d W N n M P mmm O O N N O N N .4 N C IA N N N N N N N N N»» N» N N» N N N»» N 00 00 N NN o 66 oe NI CY mmm V O 606 mee me 0N NN NNN 00 mem 0.0 w0n mne NN NNN a0 0N0 N • 00T O m 01 • COON N 0 0 N i ccw ocm M N N . N ti a N 06 NN NNN P m IN N ri O O a m • em m ., ti m 66 O C N ui 0 0 $ 13,352.82 $ 25,912.59 $ 117,783.22 rq $ 16,071.05 $ 16,163.52 $ 11,315.64 $ $ (23,011.05) $ 12,165.54 $ 14,862.26 rn NET INCOME 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 WILKENING STORAGE LLC 11535 W HAMPDEN AVE LAKEWOOD, CO 80227 Account No.: R0841201 Dear Petitioner(s): The Weld County Board of Equalization has set a date of July 30, 2013, at or about the hour of 2:15 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 WILKENING STORAGE LLC - R0841201 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 JJ Esther E. Gesick Deputy Clerk to the Board cc: Christopher Woodruff, Assessor AS0085 Hello