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Home My WebLink About20111957.tiff (it0 CLERK TO THE BOARD PHONE (970) 336-7215, Ext. 4226 FAX: (970) 352-0242 1150 O STREET P. O. BOX 758 GREELEY, COLORADO 80632 C. COLORADO August 26, 2011 GREELEY COUNTRY CLUB PO BOX 477 GREELEY, CO 80632-0477 RE: THE BOARD OF EQUALIZATION, 2011, WELD COUNTY, COLORADO - STIPULATE PETITIONER'S APPEAL AND AFFIRM ASSESSOR'S VALUE DESCRIPTION OF PROPERTY:ACCOUNT#: R6779246 PARCEL#: 095911200010-PT NW4 11 5 66 (GREELEY COUNTRY CLUB ANNEX) BEG AT PT 30'E & 900.81'N OF W4 COR N84D40'E 105.70' S35D34'E 81' N76D21'E 162' S86D08'E 220.75' S88D22'E 905' S89D32'E 203.50' N0D32'E 1885' S84D55'W TO PT 30'E OF W LN SEC S TO BEG (68A) EXC BEG S84D36'W 1271 Dear Petitioner: On July 26,2011, the Board of County Commissioners of Weld County, Colorado,convened, and acting as the Board of Equalization, pursuant to Section 39-8-101, C.R.S., et.seq., considered the Stipulation on your petition of appeal of the County Assessor's valuation of your property described above, for the year 2011. The Stipulation was entered into between the Assessor and said petitioner(s),and accepted by the Board of Equalization, agreeing that the assessment and valuation of the Weld County Assessor be Stipulated as follows: ACTUAL VALUE AS ACTUAL VALUE DETERMINED BY AS STIPULATED ASSESSOR $3,257,194 $2,700,000 ee d' "ttr e ler) 2011-1957 AS0079 GREELEY COUNTRY CLUB - R6779246 Page 2 If you have questions or need additional information, please do not hesitate to contact me at (970) 336-7215, Extension 4226. Very truly yours, d Esther E. Gesick Deputy Clerk to the Board cc: Christopher Woodruff, Assessor R H JACOBSON AND COMPANY 6239 E CALEY DR CENTENNIAL, CO 80111 2011-1957 AS0079 COUNTY BOARD OF EQUALIZATION WELD COUNTY ASSESSOR'S ACCOUNT NUMBER 6779246 LATION (As To Tax Year 2011 Actual Value) TITION OF : NAME: Greeley Country Club MESS: P.O. Box 477 Greeley, CO 80632 f f r r f Petitioner(s),Greeley Country Club and the Weld County Assessor,hereby enter into pulation regarding the tax year 2011 valuation of the subject property, and jointly :hat the Board of Equalization to enter its order based on this Stipulation. Petitioner(s) and the Assessor agree and stipulate as follows: 1. The property subject to this Stipulation is described as: PT NW4 11 5 66 (CREELEY COUNTRY CLUB ANNEX) BEG AT PT 30'E Aka 4500 West 10 Street, Greeley, CO 2. The subject property is classified as Commercial property. 3. The County Assessor originally assigned the following actual value to the subject property for tax year 2011. Land $ 1,547,234 Improvements$ 1,709,960 Total $ 3,257,194 4. After further review and negotiation,the petitioner(s) and Weld County Assessor agree to the following actual value for the subject property. Land $ 1,547,234 Improvements$ 1,152,766 Total $ 2,700,000 2011-1957 I ne valuations, as estabilsnea above, snail be binding only with respect to tax year 2011. Brief narrative as to why the reduction was made: Value was adjusted based upon the general market prices per sq. ft. that were in place in the base period, additionally the income was considered as backup for the market. Both parties agree that the hearing scheduled before the Weld County Board of Equalization on DATE at TIME am be yagated; or, a hearing has not yet been scheduled before the Board of Equalization x (check if appropriate). TED this 20u' day of July, 2011. (s)JarAttormy 4 r- Petitioner(s) or Attorney Address: 2-11 E . ce-(e� 4-( cf.) Vol] ( 3 a3 �`--r 3 Telephone: (C41'7D Co es or Address: 1400 N.17th Avenue Greeley, CO 80631 (970) 353-3845 ext. 3656 NOTICE OF DETERMINATION Christopher M. Woodruff • Date of Notice: 6/22/2011 Weld County Assessor Telephone: (970) 353-3845 or(720) 652-4255 1400 N 17th Ave " ` Fax: (970) 304-6433 Greeley, CO 80631 E-mail: appeals@co.weld.co.us www.co.weld.co.uh"' I a .b Office Hours: 8:00 AM -5:00 PM SCHEDULE/ACCOUNT NO.. .TAX Y!AR TAX AREA LEGAL DESCRIPTION/ y PHYSICAL LOCATION R6779246 2011 0600 PT NW4 11 5 66 (GREELEY COUNTRY CLUB ANNEX) BEG AT PT 30'E & 900.81'N ¢ OF W4 COR N84D40'E 105.70' S35D34'E 81' i GREELEY COUNTRY CLUB N76D21'E 162' S86D08'E 220.75' S88D22'E a PO BOX 477 905' S89D32'E 203.50' N0D32'E 1885' r GREELEY,CO 80632-0477 S84D55'W TO PT 30'E OF W LN SEC S TO BEG(68A)EXC BEG 584D36'W 1271 p 4500 W 10 ST,GREELEY x a ASSESSOR'S VALUATION PROPERTY CLASSIFICATION ACTUAL VALUE PRIOR TO ACTUAL VALUE AFTER REVIEW REVIEW COMMERCIAL 3,257,194 3,257,194 TOTAL $3,257,194 $3,257,194 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: CM01 - The Colorado Constitution requires commercial property to be valued based on actual value andassessed at 29%. F3eplacementcast, market,_a_ndincom�are approaches used to_ determine the actual value of your property. 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. R H JACOBSON & CO 6239 E CALEY DR CENTENNIAL CO 80111 • APPEAL PROCEDURES County Board of Equalization Hearings will be held from July 1 through August 5 at 915 10th Street, 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 915 10th Street, P.O. Box 758 Greeley, CO 80632 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 a_ppeal; 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.aov/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 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 properitairrsuant to §39-8-106(1.5), C.R.S.) $ 25001000 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,a etc.) See-- Kra -'u-b ATTESTATION I, the undersigned owner or agent1 of the property identified above, affirm that the statements contained herei ion any attachments hereto are true and complete. 11 -L-�- 1!/Z)2a a it Signature Telephone Number Date 1 Attach letter of authorization signed by property owner. • R. H. Jacobson & Co. 6239 E. Caley Dr Centennial, Co 80111 Weld County Board of Equalization 915 10th Street P.O. Box 758 Greeley, Colorado 80632 Re: R6779246 In behalf of our client Greeley Country Club, we are appealing the denial of our protest of the 2011 value of the above property. Regards, R.H. Jacobson R. H. JACOBSON & COMPANY 2861 Kendrick Street—Golden, Colorado 80401 303-278-2185 FAX 303-278-6271 Regarding: Property Tax Assessment Appeal Schedule#: Address: Owner: *Ara,/ CO"nay aa.sG Lease Holder: To Whom it May Concern: I hereby appoint R.H. Jacobson & Company and its associates to represent(me) (us) on the above mentioned or attached properties set forth in "Exhibit A" for the purposes of real estate tax services for the years 2011-2012 and any prior years. Sin � As For 6:4E Ormr-ey Ccve (title) ' /'%t52'— Social Security # or Tax I.D. # ©214953 Telephone Number 99-0-3s 3-ocz Print name The forgoing instrument was acknowledged before me this day of 2011. My commission expires , 20_ Notary Public R. H. Jacobson & Co. 6239 E. Caley Dr Centennial, Co. 80111 Weld County Assessor 1400 N. 17th Ave. Greeley, Co. R.E. R6779246 Greeley Country Club In Behalf of the owners of Greeley Country Club we are protesting the 2011 value of the subject property. Greeley Country Club was established in 1920 as a 9 hole course. The course was updated and the back 9 holes were added in the early 1960's. This update was done by Pres Maxwell. The course is a par 70 6500 yard course on 119 acres including a clubhouse and practice range, with a rating that indicates that the course is not considered difficult. Most country club courses have a par of 72,the difference being the lack of par 5 holes on the subject. The property does not have much terrain change and there is not extensive bunkering. This course would likely be a low class III course according to the descriptions found in Marshall and Swift. The Clubhouse was built in 1976 and has 16,225 square feet. The clubhouse has many deferred maintenance items and is reaching the end of its useful life. Valuation The appropriate methods for valuing private country club courses are the cost and sales comparison approaches. The income approach is considered unreliable for these facilities since membership and therefore income is limited. An income approach for private clubs tends to indicate a lower value than the other two approaches, although, the sales comparison approach does reflect the likely income potential. Cost Approach Cost approach attempts to determine a replacement cost for the subject, apply appropriate depreciation, and add land value to estimate the replacement cost less depreciation. As stated above, the course would be considered a low class III course under Marshall & Swift. This classification returns a cost of$130,000 per hole. Considering that the course is a shortish par 70 course the cost of construction would likely be less than Marshall and Swift indicates and is most likely to be more like $125,000 per hole for a replacement cost estimate of$2,250,000. also using Marshall & swift we estimate the clubhouse to be $900,000 for a total cost of$3,150,000 We must apply depreciation to this number in order to get the depreciated cost of construction for the subject. The following tables assist in this estimate of depreciation. Construction Items Minimalist Average Upscale Percentage Course Course Course Mobilization 10,000 35,000 75,000 1.26 Layout& staking 10,000 30,000 120,000 2 Erosion Control 0 25,000 150,000 2.53 Clearing 3,000 35,000 280,000 4.73 Selective Clearing 0 54,000 240,000 4.05 Topsoil Strip 40,000 150,000 300,000 5.07 Rock Blasting 0 15,000 150,000 2.53 Earthmoving 0 375,000 750,000 12.6 Shaping 75,000 150,000 300,000 5.07 Topsoil Replace 40,000 150,000 240,000 4.05 Storm Drainage 10,000 75,000 500,000 8.45 Golf Drainage 20,000 75,000 500,000 8.45 Irrigation 130,000 345,000 910,000 15.3 Greens 36,000 190,000 600,000 10.1 Tees 30,000 60,000 100,000 1.69 Bunkers 17,000 52,000 84,000 1.42 Cart Paths 0 112,000 530,000 8.96 Seedbed Prep 50,000 95,000 125,000 2.1 Grassing 50,000 120,000 110,000 .18 Sod 0 50,000 200,000 3.38 Build Total$ 521,000 2,218,000 5,914,000 100 Cost Per Hole$ 28,944 123,222 328,555 Source: Golf Course Builders Assoc.,ASGCA, DGA Irrigation System 15 to 20 years Tees and Greens 15 to 20 years Bunkers 5 to 8 years Paving 8 to 12 years Maint. Bldg. 30 to 40 years Clubhouse 25 to 50 years The first table is used to estimate the value contribution of each component while the second table outlines the useful lives of the main components. For example, greens contribute 10.1% of the cost of construction and have a useful life of 15 to 20 years. Most components do not ever fully depreciate since they are continuously cared for. The exceptions to this are the irrigation systems and the bunkers. For this estimate we will assume that the improvements are at the midpoint of their lives. Irrigation systems represent about 15%of the construction cost of a course. Tees and greens contribute about 12%to construction costs. Using this we estimate the cost to rebuild the tees and greens to be $135,000 (12%of$2,250,000). Again using the midpoint of the useful life we estimate the depreciation of the irrigation system to be $172,125. This same methodology indicates the depreciation for the cart paths to be$201,600 considering that there is a need to extend these paths. Finally, Bunkers need to be redone about every 8 years, considering the midpoint of useful life we estimate depreciation for the bunkers to be$22,500. There is some indication that the bunkers need to be rebuilt to provide better drainage; if this is the case the cost would be higher. The cost estimate for a suitable clubhouse from Marshall & Swift is $900,000 or$55.46 per square foot. This estimate seems low but will be used for consistency. Major component depreciation would then be; ITEM DEPRECIATION Cart Paths $201,600 Bunkers $22,500 Tees and Greens $135,000 Irrigation Systems $172,325 Clubhouse $450,000 Total $981,425 Applying the depreciation estimate to the replacement cost new yields a RCNLD of $2,168.575 (total cost of$3,150,000 less depreciation). Additional depreciation in the form of economic must be considered. In this economic depreciation is derived from a capitalized membership loss. From 2005 to current,the club has lost 13 members or 20%. The loss of monthly dues hampers the ability to keep the property up and further erodes membership. Comparing membership income from year end 2006 to year end 2008 shows a loss of$26,179 in annual dues. Capitalizing this loss at 9.5%indicates an economic depreciation of$275,000. Deducting this final form of depreciation indicates a final RCNLD of$1,893,575. To this we must add land value. Usually, golf courses are built on land that is not suitable for other uses. This includes floodways and designated open space or parkland. A land estimate is based on the value of these kinds of land. For this estimate we consulted several land sales in the vicinity of the subject. All sales were agricultural uses. The size range was 24 to 240 Acres and the range of sales prices was $584 to $5,833 per acre. Based on location we conclude that the value per acre would fall in the higher end of the range and will use $5,000 per acre as a land cost estimate. This shows a value of land of$595,000. Adding this land value to the depreciated cost indicates a final cost estimate of$2,488,575. Sales The sales comparison approach estimates the market value of the subject based on sales of comparable properties. In this case,the subject property being a private country club would only sell if the property was distressed. Because of this fact we looked at three sales of golf facilities that were distressed at the time of sale. The following chart summarizes these sales. Course Sale price Sale date Per hole Vista Ridge $3,350,000 12/29/2006 $186,111 Heather Ridge C.C. $3,100,000 12/01/2009 $172,222 Blackstone C.C. $4,000,000 10/19/2009 $222,222 Vista Ridge golf course, now known as Colorado National Golf, was sold thru the public trustee for$3,350,000. The property is much newer with a more extensive clubhouse and is superior to the subject. Heather Ridge Country Club sold for $3,100,000 in 2009 to the local recreation district. The property overall superior to the subject mostly based on its location. The courses are similar but the clubhouse is larger. Blackstone C.C. was built in conjunction with a residential development. The course was built in 2007 and had a new 36,000 square foot clubhouse. The property is superior to the subject. We would expect the subject would sell for less than the comparables if it was on the market as a distressed property mostly based on its age, location, and quality. We would estimate the sale price at $2,600,000. Reconciliation The two value estimates are as follows, Cost $2,488,575 Sales $2,600,000 Based on these estimates we ask the Assessor to reduce the value to $2,500,000. R.H. Jacobson& Co. 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