Loading...
HomeMy WebLinkAbout20122010.tiff CLERK TO THE BOARD 1861 PHONE (970) 336-7215, EXT 4226 IATE FAX (970) 352-0242 WEBSITE: www.co.weld.co.us 4 1150 O STREET P.O. BOX 758 COUNTY GREELEY CO 80632 August 2, 2012 FIRESTONE PROPERTIES LLC DEPT 8088 PO BOX 2198 MEMPHIS, TN 38101 RE: THE BOARD OF EQUALIZATION 2012, WELD COUNTY, COLORADO DENIAL OF PETITIONER'S APPEAL AND AFFIRMATION OF ASSESSOR'S VALUE ACCOUNT NO.: R5219008 Dear Petitioner: On August 01, 2012, 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 2012. 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 $1,706,600.00 $1,706,600.00 /is cos' 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, 2011, MUST comply with the following provisions of C.R.S. Section 39-8-107(5): (5)(a)(I) On and after August 10, 2011, 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 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 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, Esther E. Gesick, Deputy Clerk Weld County Board of County Commissioners Cc: Christopher Woodruff, Weld County Assessor ADVANTAX GROUP LLC 200 W RIVER DRIVE ST CHARLES, IL 60174 Weld County CHRISTOPHER M.WOODRUFF COUNTY ASSESSOR BRENDA DONES,DEPUTY ASSESSOR VALUATION REPORT OF COMMERCIAL PROPERTY FOR Weld County Board of Equalization FIRESTONE PROPERTIES LLC PETITIONER vs. WELD COUNTY ASSESSOR'S OFFICE RESPONDENT Parcel Number: 1313-12-1-28-009 Schedule Number: R5219008 Log Number: 5865 Date: 8/1/2012 Time: 02:45 PM Board: Board #1 PREPARED BY WADE J.MELIES WELD COUNTY ASSESSOR'S OFFICE STAFF APPRAISER ASSESSOR'S VALUE $1,706,600 ^BOE_COMM_01099B 2012-2010 Page 1 SALIENT FACTS AND CONCLUSIONS Purpose of Appraisal To determine Market Value as of 1/1/12 based on an appraisal date of 6/30/10. Property Rights Appraised Unencumbered fee simple interest. Location 10925 Colorado Blvd., FIRESTONE Land Area 42,026 Square Feet Property Type Commercial Retail Store Year Built 2008 Quality Good Class Masonry Number of Stories 1 Improvement Sq. Ft. 7,420 Value Indications: Land $504,312 Cost Approach $1,275,637 Market Approach $1,855,000 Income Approach $1,656,190 Reconciled $1,706,600 CBOE_COMM_010998 Page 2 General Description of Subject Location: The subject is located just southwest of the intersection of Firestone Boulevard and Colorado Boulevard or formally Highway 119 and County Road 13 in the Town of Firestone. The subject is adjacent south of Walgreens which is in the southwest corner of this intersection. The subject is located west, across Colorado Boulevard, of the Kings Soopers Shopping Center. The lot is described as Lot 5 of Firestone Crossing Filling 1, Replat 1. The physical address is 10925 Colorado Boulevard, Firestone. The subject is currently being use as an Auto Zone parts store. Land: The subject lots size is 42,026 square feet or slightly smaller than 1 acre. The lot is mostly square with 180 feet of frontage on Colorado Boulevard. It is generally level with no drainage issues. Improvements: The subject improvements were constructed in 2008 with masonry block and a sidewall height of 16 feet. The subject contains 7,420 square feet of mostly open retail space. There are two restrooms and a demising wall. There is a checkout counter and warehouse storage area. The exterior is a good stucco decorative finish. The interior is painted masonry block with VCT tile floor. The subject is consider to be good quality and in typical condition. rfletR 40 I 1 h 4 \ _ 1 t , w ;y 1 j Map a� a - Traffic - . . . DP.'••1- atFll n'eStoelRlvil . 40 : r₹ s' --s a ' ; • i peens t , j r7 ar•l•-:toneu - �4 r e i ' Subjectti ^r ... • •�, Ae Savers 9F- ,,,„ _ ...e a t ._. . , `Zoom Out t � ' , 1� ' I , ,. nGmerron:Garden. . t Center &iNirsery: '(( `�.,� • r .t . ark , 1 t i. 1, i t . . , . . , ...... _ ismer 1 a_ it, i, 1 l ,,sit _ , 100 r1, • •1 - l 4 - Edit in Google Map Maker Report a problem c • Internet SA v s 100% - CBOE_COMM_010998 Page 3 Photo and Sketch atiiiiisie.000\ Iliss fityra- ,..,. .3,,..--u . -. ' ilkst- i ili) , • . till And 115 . 3' RIR RIR M It CO First Floor 7419 . 8 S . F . 16 . 5' Wall Height Split Face Construction xIVIA C BOE_COMM 010998 Page 4 COST APPROACH SUMMARY The Assessor is currently using Marshall and Swift cost tables for the cost approach of commercial properties in Weld County,which has been approved by the Division of Property Taxation to be utilized by Colorado Assessors. The structure has been classified properly utilizing the Marshall and Swift Valuation service and an appropriate value assigned. A land value has likewise been established through the utilization of vacant land sales of comparable properties. Improvement Value $771,325 Land Value $504,312 TOTAL VALUE BY THE COST APPROACH $1,275,637 CBOE_COMM_010998 Page 5 COST APPROACH LAND VALUE Sales utilized to establish the value in the subject neighborhood are from 2009 and the first six months of the 2010 market for the 2012 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 July 2005 through June 2010 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 42,026 square feet. Comparable commercial land sales in the subject area range from $12.00 to $20.14 per sq ft. Comparable one is the subject property. A value of $12.00 per square foot or $504,312 was chosen to be applicable for the subject property when considering its location. Parcel Number Sale Date Sale Price Land Size Per Acre Comparable 1 131312128009 02/27/08 $550,000 42,026 $13.09 Comparable 2 131311208004 5/19/08 $1,000,000 49,659 $20.14 Comparable 3 146702001002 2/25/09 $1,562,800 130,244 $12.00 ASSESSOR'S SUBJECT LAND VALUE $504,312 CBOE_COMM_01 0998 Page 6 Cost Approach Summary PARCEL NUMBER 131312128009 PROPERTY OWNER Firestone Properties LLC ADRESS 10925 Colorado Blvd CITY,STATE,ZIP Firestone, CO DATE OF APPRAISAL 6/30/2010 OCCUPANCY: Retail Store NUMBER OF STORIES 1 FLOOR AREA (SQ. FT.) 7,420 AVG. STORY HEIGHT 16 CLASS: C YEAR BUILT Remodel 2008 COST RANK Good EFFECTIVE AGE 1 HEATING AND COOLING Packaged ESTIMATED LIFE 50 UNITS COST TOTAL RCN BASIC STRUCTURE COST 7,420 $95.00 $704,900 perimeter adjustment 0.969 wall height adjustment 1.085 Current multiplier 1.01 Local multiplier 0.98 Adjusted RCN Basic Cost $733,548 EXTRAS: Sq Ft Cost PSF Asphalt 16,000 $2.25 $36,000 Concrete Slab 2,600 $3.68 $9,568 TOTAL RCN $779,116 LESS DEPRECIATION PHYSICAL 0.01 $7,791 RCN LESS DEPR. $771,325 ADD IN LAND VALUE $504,312 TOTAL VALUE $1,275,637 Value PSF $172 CBOE_COMM_010998 Page 7 MARKET APPROACH SUMMARY Real property for the tax year 2012 must be valued utilizing the level of value for the period of one and one-half years immediately prior to June 30th, 2010. A period of five years immediately prior to July 1, 2010 shall be utilized to determine the level of value if adequate data is not available from such one and one-half year period to adequately determine the level of value for a class of property. Said level of value shall be adjusted to the final day of the data-gathering period. Changes occurring between base years are not to be accounted for until the following level of value is implemented, other than additions, change in use, detrimental acts of nature, damage due to fire, etc., creation of a condominium, new regulations restricting or increasing the use of the land, or a combination thereof{39-1-104(11)(b)(1), CRS}. The comparable sales in this report were selected using county records, as well as the Multiple Listing Services. The Weld County Assessor's Office has verified that the comparable sales are arms-length transactions based on review of the Real Property Transfer Declaration,telephone or personal confirmation interviews and physical inspections to confirm property characteristics at the time of sale. Based upon investigation and analysis, it is the opinion of the appraisers that the value of$1,855,000 or$250.00 per sq. ft. accurately reflects the market value of the subject property. VALUE AS INDICATED BY THE MARKET APPROACH $1,855,000 Parcel # Sale Date Sale Price Sale per sq ft Size Use Comp 1 131312128009 7/22/2008 $1,733,000 $233.56 7,420 Auto Parts Comp 2 131312123001 10/8/2009 $3,895,000 $264.26 14,739 Retail Store Comp 3 131106319006 3/31/2008 $1,518,000 $252.92 6,002 Paint Store Comp 4 095901321007 8/25/2008 $1,745,000 $256.92 6,792 Auto Parts Comparable One is the subject property. The unadjusted sales comparables presented develop a range of $233.56 to $264.26 per square foot, the average is $251.91, and the median is $254.92. C0OE_COMM_010998 Page 8 Comparable One L RIR RIR -4 f1 r _ . ..t I U I . � • ;f y.; 10 41 II 7m. - 1 First Floor 7419.8 S.F. • 3Q : 16.5 Wall Height Split Face Construction • pax N•' COMPARABLE SALE COUNTY: WELD ACCOUNT NUMBER: R5219008 PARCEL NUMBER: 131312128009 PRIMARY OCC: Retail Store PERCENT: 100% ADDRESS: FIRESTONE RECEPT NUMBER: 3572658 SALE DATE: 7/22/2008 GRANTOR: REDING COMPANY LLC SALE PRICE: $1,733,000 GRANTEE: FIRESTONE PROPERTIES LLC ADJ SALE PRICE: $ 1,733,000 YEAR BUILT: 2008 CLASS: C EFFECTIVE AGE: 2008 LAND/BLDG RATIO: 5.66 LAND SIZE (SF): 42,026 LAND VALUE: $252,156 BLDG SIZE (SF): 7,420 IMPS PRICE/SF: $199.57 WALL HEIGHT: 16 SALE PRICE/SF: $233.55 STORIES: 1 QUALITY: Average COMMENTS: Purchase price based on 20 year lease written by the seller. Lease is for $ 117,000 per year or $ 15 .77 per square foot NNN. Lease term is 5 years with 3 each 5 year options. There is a 10% escalator for each option. Buyer purchased with the expectation of 6.38 % capitalization rate. CBOE_COMM_010998 Page 9 COMPARABLE Two �, -. y . ! �f of Canopy a 7_ H, 594 0• A Training Room 1110' 203.2 �� .-LElectncalRoom �i no, W+aa 167.8' by�ni Office s a I Emplo ee Room Pharmacy =�iTe.a; 253_0_ ;:-,••__ 2( 0' +e a zt a null"' of ei°n CaklAititc 7.' ' 1 T in ki e� I •.ry�� g ' L } . ,.9, t 7 J i�CN ♦ .r ��11P-, . -_ _ - •J • •+•..��r i.:6 '-st_ w\rig Storage LL I 841 t� _ - - 1149 0' a all � m n. m ° gin Utoo 0 CN o ak d 1 90I J a 1013' Canopy '—=i..,: 1765 ' C anopyTanopytanopy 77 5' 77.5' 77.5' First Floor 14738 7' COMPARABLE SALE COUNTY: WELD ACCOUNT NUMBER: R3846705 PARCEL NUMBER: 131312123001 PRIMARY OCC: Retail Store PERCENT: 100% ADDRESS: 5962 FIRESTONE BLVD FIRESTONE RECEPT NUMBER: 3653308 SALE DATE: 10/8/2009 GRANTOR: CF WLG LLC SALE PRICE: $4,075,000 GRANTEE: GATEWAY BOWL CORP ADJ SALE PRICE: $3,895,000 YEAR BUILT: 2005 CLASS: C EFFECTIVE AGE: LAND/BLDG RATIO: 5. 10 LAND SIZE (SF): 75, 179 LAND VALUE: $902, 148 BLDG SIZE (SF): 14,739 IMPS PRICE/SF: $203.05 WALL HEIGHT: 12 SALE PRICE/SF: $264.26 STORIES: 1 QUALITY: Average COMMENTS: The purchase price was adjusted for personal property. According to the buyer the purchase was based on a 25 years lease at a 7 .5 to 8% cap rate CBOE_COMM_010998 Page 10 COMPARABLE THREE First Floor 6001 7 SF Masonry Building 15' Sidewall Height R!R R!R .yam • II ' a !V y y1 1 a Isloimj ...' y,rq . E 047 /2008 1151' ¶Sdchbr 44, 1V" COMPARABLE SALE COUNTY: WELD ACCOUNT NUMBER: R4939307 PARCEL NUMBER: 131106319006 PRIMARY OCC: Retail Store PERCENT: 100% ADDRESS: 6075 FIRESTONE BLVD FIRESTONE RECEPT NUMBER: 3545574 SALE DATE: 3/31/2008 GRANTOR: Commerce Realty LLC SALE PRICE: $ 1,518,000 GRANTEE: BURKE FAMILY INVESTMENT CLUB ADJ SALE PRICE: $1,518,000 YEAR BUILT: 2007 CLASS: C EFFECTIVE AGE: 2007 LAND/BLDG RATIO: 4.66 LAND SIZE (SF): 27,946 LAND VALUE: $ 167,676 BLDG SIZE (SF): 6,002 IMPS PRICE/SF: $224.97 WALL HEIGHT: 15 SALE PRICE/SF: $252.91 STORIES: 1 QUALITY: Average COMMENTS: The existing lease was for 10 years with three 5 year options. Buyer estimated the capitalization rate derived by the purchase to be 6 to 6.5 %. Lease began Mar. 2008 and ends Feb. 2018, for $90,000 annually. This equates to a 6% cap. CBOE_COMM_010998 Page 11 COMPARABLE FOUR T: • . ^.5.�'r J,. ' - 7 _. r .�—r icy.{ � � ` 4 y y — -... . .ii..-4.341=1 y — - -V4 a 1 �f i Q .?.�. A CZ ^ - i 82.8' - - Men omen f< °• i m e.M�Bath X /' 1 I. S .. lip ` 4r. _, Reta i I on First Floor 6792.3 SF y. 1 ii lr .op Concrete 662.7 SF � ,_ 11 /05/2008 i.icti by .b..1.►4ns" COMPARABLE SALE COUNTY: WELD ACCOUNT R1750686 PARCEL NUMBER: 095901321007 PRIMARY OCC: Retail Store PERCENT: 100% SECONDARY OCC: PERCENT: THIRD OCC: PERCENT: ADDRESS: 3025 W 10 ST GREELEY RECEPT NUMBER: 3574242 SALE DATE: 8/25/2008 GRANTOR: BTS GREELEY AA LLC SALE PRICE: $1 ,745,000 GRANTEE: MCMULLAN FAMILY TRUST (74% INT) ADJ SALE PRICE: YEAR BUILT: 1983 CLASS: C EFFECTIVE AGE: 2002 LAND/BLDG RATIO: 5.34 LAND SIZE (SF): 36,300 LAND VALUE: $217,800 BLDG SIZE (SF): 6,792 IMPS PRICE/SF: $224.85 WALL HEIGHT: 19 SALE PRICE/SF: $256.91 STORIES: 1 QUALITY: Average COMMENTS: CBOE_COMM_010998 Page 12 INCOME APPROACH SUMMARY The Weld County Assessor has appropriately considered the Income Approach to value for the Subject property on appeal. The Assessor has gathered income information from local commercial properties for the time frame of January 1, 2009 through June 30, 2010. This information, combined with statewide and industry-wide data, is used to determine typical income and expenses for various property types. The subject property is an income investment property. The subject's actual income was used in the Income Approach.The subject rent rate was compared to market rates and found to be market. The cap rate was derived from the market. Three of the sales presented in the Market Approach were income producing properties.With the purchase price and rental rate the cap rate can be derived from the market. In conclusion of the Income Approach, the Assessor has considered both groups of data and has put more emphasis on the local factors and data than the state and national data. This information was then applied to the subject property to arrive at an appropriate Income Approach Value. TOTAL INCOME VALUE FOR THE SUBJECT PROPERTY $1,656,190 CBOE_COMM_010998 Page 13 Actual Rent for Auto Zone Firestone Rent 7,420 $15.77 $117,013 Vacancy 0% $0 Effective Gross Income $117,013 Expenses Management 5% $5,851 Reserves 3% $3,510 Total $9,361 Net Operating Income $107,652 Cap Rate 6.5% Indicated Value $1,656,190 per sq ft $223.21 Sales Comparable Cap Rates Rent Comp 1, subject 6.38% $15.77 Comp 2 7.5-8% $20.00 Comp 3 6% $15.00 Checkers, Greeley $17.00 CB0E_C0MM_010998 Page 14 CONCLUSION Real property for the tax year 2012 must be valued utilizing the level of value for the period of one and one-half years immediately prior to June 30th, 2010. A period of five years immediately prior to July 1, 2010 shall be utilized to determine the level of value if adequate data is not available from such one and one-half year period to adequately determine the level of value for a class of property. Said level of value shall be adjusted to the final day of the data-gathering period. Changes occurring between base years are not to be accounted for until the following level of value is implemented, other than additions, change in use, detrimental acts of nature, damage due to fire, etc., creation of a condominium, new regulations restricting or increasing the use of the land, or a combination thereof{39-1-104(11)(b)(I), CRS}. The subject property has been classified as Commercial Property for assessment purposes. Commercial property value shall be determined by appropriate consideration of the Cost Approach, Market Approach, and Income Approach to value. {39-1-103(5)(a) C. R.S.} The Assessor has considered all three approaches to value for the subject parcel on appeal. FINAL RECONCILIATION After consideration of the cost, market and income approaches, it is the Weld County Assessor's opinion that the value of$1,706,600, most accurately reflects the value of the subject property in Weld County for the 2012 tax year. COST APPROACH MARKET APPROACH INCOME APPROACH $1,275,637 $1,855,000 $1,656,190 ASSESSOR'S VALUE $1,706,600 COOE_COMM_010998 Page 15 APPRAISAL STANDARDS AND ETHICS CERTIFICATION I certify to the best of my knowledge and belief that: The statements of fact contained in this report are true and correct. The reported analyses, opinions and conclusions are limited only by the reported assumptions and limiting conditions and is my personal unbiased professional analyses, opinions and conclusions. I have no present or prospective interest in the property that is the subject of this report, and I have no personal interest or bias with respect to the parties involved. My compensation is not contingent on an action or event resulting from the opinion or conclusions in, or the use of, this report. My analyses, opinions and conclusions were developed,and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice. No one provided significant professional assistance to the person signing this report. I have made a personal inspection of the property that is the subject of this report. 1/Ctve4) 272e1C'e:a- Wade J.Melies Colorado Certified General Appraiser CG40036400 CBOE_COMM_010998 Page 16 ADDENDUM STATE OF COLORADO Department of Regulator/09M , Division of Red Estate At1M PRE4fED0R SECURE PAPER Cert Gen Appraiser 49036400 an t 2012 Dec 31 2014 Met, IRrur pale (spenn woos iYuIle C0 OREE{.E'/.CO BOW %eam WmmVRkr [4prig*9{rol a CB0E_COMM_010998 Page 17 CLERK TO THE BOARD 1861 PHONE (970) 336-7215, EXT 4226 FAX (970) 352-0242 // WEBSITE: www.co.weld.co.us 1150 O STREET P.O. BOX 758 COUNTY � GREELEY CO 80632 July 25, 2012 FIRESTONE PROPERTIES LLC DEPT 8088 PO BOX 2198 MEMPHIS, TN 38101 Account No.: R5219008 Dear Petitioner(s): The Weld County Board of Equalization has set a date of August 01, 2012, at or about the hour of 2:45 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, 2012, and mailed to you on or before August 12, 2012. 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. AS0082 FIRESTONE PROPERTIES LLC-R5219008 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 ADVANTAX GROUP LLC 200 W RIVER DRIVE ST CHARLES,IL 60174 AS0082 NOTICE OF DETERMINATION WELD co(WED , Christopher M. Woodruff (APIIS STONERS Date of Notice: 6/27/2012 Weld County Assessor 10(1 JUL23 Telephone: (970) 304-6433 (970) or(720) 652-4255 1400 N 17th Ave A II; 4 Greeley, CO 80631 mail: appeals@weldgov.com www.weldgov.com RCEI ED Office Hours: 8:00 AM - 5:00 PM SCHEDULE/ACCOUNT NO. TAX YEAR TAX AREA LEGAL DESCRIPTION/ PHYSICAL LOCATION R5219008 2012 2556 FIR 1FC1 L5 FIRESTONE CROSSING FG#1 REPLAT 1 FIRESTONE 000000000 rt , FIRESTONE FIRESTONE PROPERTIES LLC DEPT 8088 PO BOX 2198 W MEMPHIS,TN 38101 LL 6 ASSESSOR'S VALUATION PROPERTY CLASSIFICATION ACTUAL VALUE PRIOR TO ACTUAL VALUE AFTER REVIEW REVIEW COMMERCIAL 1,706,600 1,706,600 TOTAL $1,706,600 $1,706,600 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: CMO6- 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 deadline for filing personal property appeals is July 20. 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. ADVANTAX GROUP LLC 200 W RIVER DRIVE 15-DPT-AR PR -08/11 ST CHARLES, IL 60174 R5219008 9008 15383 APPEAL PROCEDURES County Board of Equalization Hearings will be held from July 1 through August 3 at 1150 O Street,P.O.Box 758,Greeley,CO 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 and on or before July 20 for personal 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 9th Avenue and 9th Street Denver,CO 80203 P.O.Box C (303)866-5880 Greeley,Colorado 80632 www.dola.colorado.qov/baa (970)356-4000 Ext.4520 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 30,2010? (Your opinion of value in terms of a specific dollar amount is required for real property perty pursuant to§39-8-106(1.5),C.R.S.) 1,04/5 000 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.) t[A 1 ZnGG'l�� cApprcn.Ck ogI ar.ducti 0._an�o�' ATTESTATION I,the undersigned owner or agent'of the property identified above,affirm that the statements contained herein and on any attachments hereto are true and complete. (930-4yy-,916.;. 7-13-sofa Signatur Telephone Number Date cashambxl t'adVa- 'o :onti Email Address Attach letter of authorization signed by property owner. LETTER OF AUTHORIZATION AutoZone, Inc. hereby appoints and authorizes Advantax Group,LLC as its ad valorem tax agent in the states listed below. Advantax Group, LLC and/or its designee has the right to receive confidential ad valorem assessment information; file returns, renditions and applications; examine any property records:meet, discuss and/or appeal any tax assessments with the appropriate officials: as it pertains to property that is owned by the undersigned taxpayer, or in which the undersigned taxpayer has an ownership interest. This authorization shall remain in force and effect until December 31, 2012. Authorized States Colorado Missouri Connecticut Montana District of Columbia New Hampshire Kansas Rhode Island Massachusetts Florida Signed this 15t 1.Nday of rnct L.r,( , 20t, . a Title: 1e,ct5t7, State of�.h ,Q d o County of 5\,c \ 1: y This instrument was acknowledged and signed before me this 1St kday of y y'\A.i,G 20 fa.. By of 4, snrE . cti Public (SE. )i 'oitesc: igioam ;'m F My commission expires: Income Approach Forecast AutoZone 3435 131312128009 ; 85219008 10925 Colorado Blvd., Firestone,CO 80504 Rental Rate: $16.00 Square Footage: 7,420 Potential Gross Rent: $118,720 Vacancy & Collection Loss ( 10.00% ): $11,872 Effective Gross Income: $106,848 Expenses: Management ( 5.00% ): $5,342 Insurance ( 0.00% ): $0 Reserves( O24(5F ): $1,781 Operating Expenses: $7,123 Net Operating Income: $99,725 Capitalization Rate: 9.54% Market Value: $1,045,335 HIGHLIGHTS I FALL 2010 I RETAIL I UNITED STATES 4ACANO 41 RGvlAL RATE U.S. RETAIL SURVEY EXISTING NEW SUPPLY NEW SUPPLY UNDER ABSORPTION ABSORPTION VACANCY VACANCY QUOTED RENT CHG.IN INVENTORY*(SF) 2009 YTO 2010 CONSTRUCTION 2009 YTO 2010 RATE(%) RATE(%) SEP.30,2010 RENT YID MARKET SEP.30,2010 (SF) (SF) (SF) (SF) (SF) DEC.31,2009 SEP.30,2010 (US$PSF) 2010(%) Atlanta,GA 137557000 1,524,000 65,000 357,000 (2,047,000) (523,291) 14.7 15.0 13.57 -7.5 Bakersfield,CA 8,916,000 - 0 35,000 - 76,746 - 7.5 15 37 - Baltimore,MD 46,362.000 609,000 30,000 144,000 (634,000) 244.888 8.7 8.6 18.63 -0.6 Boise,ID 12,250,000 - 82000 14,000 - 25?927 - 12.4 12.27 - Boston.MA 85,857.000 690,000 292,000 135,000 (30,000) 394.101 8.1 7.6 15.70 -1.8 Char.estor',S: 12922,000 - 166,000 0 - 63,871 - 10.8 1468 - Charlotte,NC 51,715,000 306,000 26,000 27,000 228,000 147,826 10.4 12.1 13.10 4.5 Chicago,IL 163.410,000 1,565,000 121,000 154,000 (520,000) (810,949) 11.7 12.4 16.19 -29 Cincinnati,OH 34,250,000 203,000 0 10,000 (322,000) (33,234) 13.4 13.0 11.09 -2.5 Cleveland,OH 51,046000 266.000 106.000 20,000 (583,000) (39,9971 12.1 12.5 11.49 -1.4 Columbia,SC 15,040,000 - 30,000 0 - 181,699 - 8.4 11.19 Columbus,OH 28,451,000 412,000 59,000 181,000 474,000 220.714 15.0 13.8 12.01 6.0 Dallas/Ft.Worth,TX 151,308,000 1,457,000 299,000 272,000 801,000 (741,299) 13.0 13.3 13.22 -5.3 Denver,CO 69,031,000 221,000 233,000 258.000 (232,000) 544,200 10_• 10.3 14.47 -3.9 Detroit,MI 69,944,000 1,102,000 270,000 60,000 262,000 232,932 16.2 16.2 12.63 -3.6 Fresno,CA 24,701000 - 0 0 - 48.749 - 10.9 13.64 Ft.Lauderdate/Broward Co„FL 49,624,000 89,000 23.000 7,000 (1,450.000) 341,398 10.6 10.1 17,74 -5.2 Greenville/Spartanburg,SC 28,912,000 29,000 0 46,000 (427,000) 162,156 12.3 11.9 9.71 -5.1 Hartford,CT 41,422,000 646,000 6,000 109,000 327,000 246,691 8.6 8.1 13.55 -2.6 Hawaii 17077,242 92,000 0 - 107,322 - 4.2 31.74 - Houston,TX 147,577,000 1,069,000 199,000 103,000 2,044,000 1,757,964 12.2 10.9 14.09 -10.0 Indianapolis,IN 38,650,000 173,000 26,000 9,000 (326,000) 242,593 13.8 13.2 11.89 -3.3 Jacksonville,FL 34,089000 333,000 149,000 18,000 (856,000) (31.313) 13.2 13.5 13.81 -5.7 Kansas CIly,MO-KS 39,216,000 189,000 12,000 53,000 (27,000) 64,262 13.5 14.8 11.92 -2.1 Las Vegas,NV 49.666,000 577,000 161.000 43,000 (550,000) (240,801) 13.8 15.3 18.29 -16.1 Little Rock,AR 14,680,000 - 50,000 0 - 68,027 8.3 8.88 Los Angeles-Inland Empire,CA 83,672,000 1,329,000 53,000 115,000 (1,082,000) 771 11.7 11.8 18.10 -13.5 Los Angeles,CA 143.674 000 1,074.000 409,000 366,000 (1,022.000) 87,737 6.4 6.8 24.04 -1.1 Louisville,KY 27,172,000 - 76,000 51,000 - (344,097) - 11.8 11.19 Memphis,TN 29,519,000 24,000 25,000 116000 106,000 252,087 12.6 12.7 10.96 -5.4 Miami/Dade County.FL 44,091000 472,000 89,000 35,000 (455,000) 304,153 7.2 6.6 22.06 -4.8 Milwaukee,WI 33,627.000 146,000 18,000 250.000 (66,000) 85,242 112 11 3 12.26 -3.5 Minneapolis,MN 53.731000 11,000 78,00C 242,000 (214,000) 255,233 9.8 9.7 14,00 2,4 Nashville,TN 29,771,000 706,000 58,000 61000 197,000 110,330 11.0 10.9 13.98 5.9 New Jersey-Northern 90,870,000 463,000 576.000 297,000 (783,000) 192,828 8.1 8.5 19.72 -1.1 Oakland/East Bay,CA 42,445,000 132.000 38,000 39,000 (643,000) (14,315) 7.8 7.5 23.52 -5.7 Orange County,CA 62,257,000 222,000 3,000 18,000 (800,000) (247,687) 6.1 6.6 23.42 -4.3 Orlando,FL 62,386,000 888,000 92,000 203,000 (1,203,000) 180,318 11.8 11.7 15.92 .3.9 Palm Beach County.FL 35,984,000 244,000 16,000 20.000 (534,000) 100,219 11.1 11.1 18.07 -8.4 Philadelphia,PA 148,561,000 1.754,000 423,000 291,000 (800,000) 377.665 10.0 10.1 14.51 1.4 Phoenix,AZ 102,755,000 1,290,000 225,000 36,000 (1.677,000) (853,012) 13.9 15.4 15.46 -6,4 Portland,OR 34,409 000 60,000 105,000 8,000 (377,000) 41,706 8.0 8.4 18.42 -0.6 Raleigh/Durham/Chapel Hilt,NC 37,744,000 1,124000 11.000 224,000 429.000 80,018 9.2 9.2 15.11 -6.7 Reno,NV 10,788,000 - 8,000 8,000 - (53,155) - 15.2 16.31 Sacramento,CA 48,302,000 314,000 74,000 0 (912,000) 128,753 13.6 14.0 18.24 -4.6 San Diego,CA 55,563,000 302,000 38000 71,000 (842,000) 108,747 7.4 7.6 21.80 -2.6 San Francisco,CA 9,967,000 160,000 0 12,000 (35,000) 5,878 4.3 5.1 29.03 2.7 San Jose/South Bay,CA 31,498.000 40,000 235,000 29,000 (595,000) 45,588 6.2 6.9 27.17 4.3 Seattle/Puget Sound,WA 55,760.000 710,000 66,000 26,000 (273,000) (223,279) 8.8 9.9 18.37 -4.3 Si.Louis,MO 51,852,000 167.000 22.000 0 91,000 465,994 11.6 11.1 12.73 0.6 Stockton/San Joaquin Co.,CA 19,259,000 - 13,000 0 - (171,658) - 103 16.63 Tampa/SI Petersburg,FL 86,186,000 1,039,000 112,000 0 (1,334,000) 98,247 110 11.2 13.88 -1.4 Washington.DC 81,185,000 812,000 36,000 398.000 (794,000) (6,929) 7.6 7.8 22.12 1.8 Westchester County.NY 52,349,000 109,000 141000 30,000 427,000 266,686 6.7 6.6 19.22 -5.1 U.S.TOTAL/AVERAGE 2.971,972,000 25,082,000 5,446,000 4,997,000 (17,059,000) 4,150,000 10.58 10.90 16.24 -4.85 P.2 I COLLIERS INTERNATIONAL Market Commentary , RealtyRates.cofh'^ Investor Survey Cap Rate Indices Decrease For All Property Types During 3rd Quarter 2010 Consistent with a 72 basis point decrease in Treasury rates to which most commercial mortgage interest rates are indexed, the RealtyRates.comTM Investor Survey Weighted Composite (Cap Rate) IndexTM decreased 19 basis points, from 10.02% to 9.83% during the 3rd Quarter of 2010. All property sectors surveyed, except Retail which remained unchanged, recorded quarter-over-quarter index decreases with the greatest recorded by the Golf sector, down 48 basis points, followed by the Special Purpose sector with a 40 basis point decline. Showing the smallest declines were the Retail sector which was unchanged during the 3rd Quarter, followed by the Office sector with a four basis point decline. The indicated decline in the Weighted Composite (Cap Rate) IndexTM can in no way be construed as a sign of market recovery or increasing property values, as the cited decreases were more than offset by relatively larger declines in net operating income across virtually all markets and property types nationwide. RealtRates.com INVESTOR SURVEY 4th Quarter 2010' CURRENT&HISTORICAL CAP RATE INDICES 3 2010 8.89 12.22 9.62 9 60 1105 9.55 9 54 0 - 11.84 10.72 11.30 10.00 3rd Qtr. 8.63 11.87 945 9.48 10.76 942 9.44 9.50 11.72 10.55 10.96. 9.83 2nd Qtr. 8.96 12.35 963 9.59 11.12 961 9.48 9.50 11.81 10.72 1136' 10.02 1st Qtr 910 1244 977 973 11.27 9.62 9.69 9.62 12.00 10.88 11.56" 10.16 2009 8 35 1217 9.47 9.49 10.98 9 33 9.38 9.29 11.72 10.50 11.30 9.87 2008 3 77 12.01 9.37 9 38 1105 9 32 9 O9 9.09 1157 10,13 11.22 9.74 2007 8 81 11.72 9.53 9 52 10 49 937 9 25 9.20 11.85 9 93 1129 9.75 2006 926 11.93 1018 9.77 10.77 363 972 9.32 1124 10.31 1153. 10.03 2005 9.14 11.46 10.03 9.42 10.50 9,22 9.46 9.02 11.06 10.04 11.44 9,77 2004 9.00 10.68 10.19 9.72 1O71 3.03 940 8,36 11.01 991 11.74, 9.75 2003 9.19 1038 10.56 953 11.69 951 944 9O5 11.16 10.04 12.04 9.94 2002 9.21 10.70 9.92 920 11.13 9.62 9.43 9.23 11.08 10,57 10.99 9.82 2001 9 61 10.52 10 31 981 10.87 10.22 9.78 9 85 11.11 10.69 12.76 10.23 2000 8.37 9.19 9.41 9.65 9.39 10.90 10.13 10.38 10.64 10.56 12.44 10.01 1999 7.94 8.14 8.34 8.54 8 76 9.65 8.97 919 9.42 9.35 1102 8.87 1938 8.71 8.93 915 9.37 9 60 10.59 9.84 10.08 10.33 10.26 12.09 9.73 1997 8 45 8.66 8.88 9.10 9.32 10.28 9 55 9,79 10.03 9.96 11.73 9.44 1996 8.47 8.70 8.93 9.17 9 41 10.46 9.65 9.92 1019 10.06 11.921 9.54 1395 9.22 3.45 968 992 1017 11.21 10.42 10.68 1094 10.86 12.80 10.30 1994 9.15 10.37 11.63 12.92 12 74 11.94 12.05 11.35 1263 12.84 14.78 11.90 1993 9.15 10.37 11.63 12.92 12.74. 13.94 12.05 11.35 12.63 12.84 14.78 11.90 1992 9.66 1090 12.17 13.47 13.30 14.56 12.63 11.94 13.24 13.45 15.49 12.48 q rfk'rrIrt "i i t ' .y�W,�.1 WC,9's;'r '* 7 r l 2r r , s ' . fi3),Iiii ::.;" F'q „ ♦ -rat 4 -'37:'`, 4 �_ �� sygy y�y'v '-ate � i ,r _ _ '3rd Rwrttr 2010 Data Copyright 2010 R.;altyRatr.corn'!" A 5y ��q y. T yy 1,9 ST G�'P' ,ST 0.• QT : ST ® J o w 11W Q ; N F a?-.Fr- C C O O nV 9= 7 OSmEm � J.2 = f°SsCo o ! O N JCl � o ♦� V 00= LL CC• Id }W. N u, S 3 a 0 W= Pv ... I 0. O cc O y co yo a �4 N et I w s6 LL • >n O J C 0 bC y X N CO 0 — m CO O �3sM Q N a ♦�•`1 h� 1 , ,��•1 ,gyp•1 Sy q". ytd' SySr Sy4 yyd Sd�y yy dy of' yyd BOE SUMMARY SHEET Account Number: R5219008 FIRESTONE PROPERTIES LLC DEPT 8088 PO BOX 2198 MEMPHIS, TN 38101 HEARING DATE: August 1, 2012, AT 2:45 PM HEARING ATTENDED? (A@ NAME: AGENT NAME: ADVANTAX GROUP LLC 200 W RIVER DRIVE ST CHARLES, IL 60174 APPRAISER NAME: WJM DECISION ACTUAL VALUATION APPROVE BY SET BY ASSESSOR BOARD TOTAL ACTUAL VALUE $1,706,600.00 I soli, Li oo . in) COMMENTS: MOTION BY L TO Letevi SECONDED BY '6 (n Conway --e'N) Garcia -- ) Failed to prove appropriate value Kirkmeyer -- N) No comparables given Long -- N) Assessor's value upheld Rademacher-- N) Other: RESOLUTION NO. 2012-2010** M:\CBOE\Letter Templates\BOE Summary Sheet.docx Hello