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Home My WebLink About20112884.tiff RESOLUTION RE: ACTION OF THE BOARD CONCERNING PETITION FOR ABATEMENT OR REFUND OF TAXES - CBMRE, LLC WHEREAS, the Board of County Commissioners of Weld County, Colorado, pursuant to Colorado statute and the Weld County Home Rule Charter, is vested with the authority of administering the affairs of Weld County, Colorado, and WHEREAS, the Board of County Commissioners of Weld County, State of Colorado, at a duly and lawfully called regular meeting held on the 31st day of October 31, 2011, at which meeting there were present the following members: Chair Barbara Kirkmeyer, and Commissioners Sean P. Conway, William F. Garcia, David E. Long, and Douglas Rademacher, and WHEREAS, notice of such meeting and an opportunity to be present has been given to the taxpayer and the Assessor of said County, with said Assessor, Christopher Woodruff, and Appraiser, Wayne Melies, being present, and taxpayer, Wolfram Kasemir, part owner of CBMRE, LLC, being present, and WHEREAS, the Board of County Commissioners has carefully considered the attached petition, and is fully advised in relation thereto. NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld County, Colorado, that the Board concurs with the recommendation of the Assessor and the petition be and hereby is, denied, and an abatement or refund be denied as follows: CORRECTION TO ASSESSED ABATEMENT TAX VALUATION OR REFUND YEAR $0.00 $0.00 2010 G . Ph,5R p�+ /�-$ // 2011-2884 AS0078 TAX ABATEMENT PETITION — CBMRE, LLC PAGE 2 The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 31st day of October, A.D., 2011. BOARD OF COUNTY COMMISSIONERS WELD COUNTY, COLORADO ATTEST: ea _ � 4SZ S 1 /L_- (AYE) Barbara Kirkmeyer, hair Weld County Clerk to the Board — C a , r1 is (NAY) CAL .Sean P. Conwa , Pro-Tem BY: Deputy C rk to the Boar raj., (AYE) rF. G rcia APPRoVED A$ T -RM: art t ' (AYE) i. David E. Lo c. < \_ ( ou (A torney c Qooc L �' &AO, CL -(AYE) /77 DouglaA Rademacher Date of signature: // -g-1/ 2011-2884 AS0078 PETITION FOR ABATEMENT OR REFUND OF TAXES /'��,Q County:WELD Date Received c:240W/1- v • (Use Assessor's or Commissioners'Date Stamp) Section I: Petitioner, please complete Section I only. RECEIVED Date: 6 27 2011 Month Day Year —'i ,._2 2011 Petitioner's Name: CBMRE LLC Petitioners Mailing Address: 8529 No 107th St WELD LuUN 1 Y ASSESSOR CREELEY, COLORADO Longmont CO 80504 City or Town State Zip Code SCHEDULE OR PARCEL NUMBER(S) PROPERTY ADDRESS OR LEGAL DESCRIPTION OF PROPERTY R0080690- 131325401011 5970 Hurt Street, Frederick, CO 80530 Petitioner requests an abatement or refund of the appropriate taxes and states that the taxes assessed against the above property for the property tax year 2010 are incorrect for the following reasons: (Briefly describe why the taxes have been levied erroneously or illegally,whether due to erroneous valuation, irregularity in levying, clerical error, or overvaluation. Attach additional sheets if necessary.) The Assessor rightfully selected the Income Approach to determine the value of said property but used erroneous assumptions in the calculations to determine its value compared to industry standards and actual property income and expenses. Petitioner's estimate of value: $338,358 (2010 ) Value Year I declare, under penalty of perjury in the second degree, that this petition,together with any accompanying exhibits or statements, has been prepared or examined by me, and to the best of my knowledge, information, and belief, is true, correct, and co plete. / �jti.-., /l�`''� Daytime Phone Number 303 ) 772-1632 etibon s Signature By Daytime Phone Number( Agent's Signature No St Nn,A- fl .-vrea. r 'Letter of age cy attac ed when petition is sdbmitted by an age If the Board of County Commissioners,pursuant to§39-10-114(1),C.R.S.,or the Property Tax Administrator,pursuant to§39-2-116,C.R.S., denies the petition for refund or abatement of taxes in whole or in part,the Petitioner may appeal to the Board of Assessment Appeals pursuant to the provisions of§39-2-125,C.R.S_within thirty days of the entry of any sucn decision,§39-10-114 5(1),C.R.5. Section II: Assessor's Recommendation (For Assessor's Use Only) Tax Year ZQ/O �[ Actual Assessed Tax original `f 3 /✓ F. x•36 9-70 12 33 "i 23 Corrected i r' /.30 ?r : / - Abate/Refund ❑Assessor recommends approval as outlined above. If the request for abatement is based upon the grounds of overvaluation,no abatement or refund of taxes shall be made if an objection or protest to such valuation has been filed and a Notice of Determination has been mailed to the taxpayer,§39-10-114(1)(a)(I)(D),C.R.S. Tax year: `C/--' Protest? .' No ❑Yes Of a protest was filed,please attach a copy of the NOD.) pI Assessor recommends denial for the following reason(s):. Po/e 7;4 4 / /Ar-r-vd- !,-;. "�.•, /../ f': Assessor's or ep , A .essnr s E 2011-2884 15-DPT-AR No.920-66/11 FOR ASSESSORS AND COUNTY COMMISSIONERS USE ONLY (Section III or Section IV must be completed) Every petition for abatement or refund filed pursuant to§39-10-114,C.R.S.shall be acted upon pursuant to the provisions of this section by the Board of County Commissioners or the Assessor,as appropriate,within six months of the date of filing such petition,§39-1-113(1.7),C.R.S. Section III: Written Mutual Agreement of Assessor and Petitioner (Only for abatements up to$10,000) The Commissioners of County authorize the Assessor by Resolution No. to review petitions for abatement or refund and to settle by written mutual agreement any such petition for abatement or refund in an amount of$10,000 or less per tract, parcel,or lot of land or per schedule of personal property, in accordance with§39-1-113(1.5),C.R.S. The Assessor and Petitioner mutually agree to the values and tax abatement/refund of: Tax Year Actual Assessed Tax Original Corrected Abate/Refund Note:The total tax amount does not include accrued interest,penalties,and fees associated with late and/or delinquent tax payments,if applicable. Please contact the County Treasurer for full payment information. Petitioner's Signature Date Assessor's or Deputy Assessor's Signature Date Section IV: Decision of the County Commissioners (Must be completed if Section III does not apply) WHEREAS,the County Commissioners of County, State of Colorado,at a duly and lawfully called regular meeting held on / / , at which meeting there were present the following members: Month Day Year with notice of such meeting and an opportunity to be present having been given to the Petitioner and the Assessor of said County and Assessor (being present--not present)and Name Petitioner (being present--not present),and WHEREAS,the said Name County Commissioners have carefully considered the within petition, and are fully advised in relation thereto, NOW BE IT RESOLVED that the Board(agrees--does not agree)with the recommendation of the Assessor, and that the petition be(approved--approved in part--denied)with an abatement/refund as follows: Year Assessed Value Taxes Abate/Refund Chairperson of the Board of County Commissioners'Signature County Clerk and Ex-Officio Clerk of the Board of County Commissioners in and for the aforementioned county,do hereby certify that the above and foregoing order is truly copied from the record of the proceedings of the Board of County Commissioners. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of said County this day of Month Year County Clerk's or Deputy County Clerk's Signature Note' Abatements greater than$10,000 per schedule,per year,must be submitted in duplicate to the Property Tax Administrator for review. Section V: Action of the Property Tax Administrator (For all abatements greater than$10,000) The action of the Board of County Commissioners, relative to this petition, is hereby ❑Approved ❑Approved in part$ ❑Denied for the following reason(s): Secretary's Signature Property Tax Administrator's Signature Date 15-OPT-AR No.520-00i 11 Weld Count CHRISTOPHER WOODRUFF COUNTY ASSESSOI BRENDA DONES, DEPUTY ASSESSOI VALUATION REPORT OF COMMERCIAL PROPERTY FOR County Board of Commissioners CBMRE LLC PETITIONER VS. WELD COUNTY ASSESSOR'S OFFICE RESPONDENT Parcel Number: 1313-25-4-01-011 Schedule Number: R0080690 Log Number: 2010-054 Petition for Abatement 2010 PREPARED BY a:LMELIES /w Oct 3, 2011 Signature Date ASSESSOR'S OFFICE STAFF APPRAISER C BCE_CCMM_010 Pag SALIENT FACTS AND CONCLUSIONS Purpose of Appraisal To determine Market Value as of 1/1/09 based on an appraisal date of 6/30/08. Property Rights Appraised Unencumbered fee simple interest. Location 5970 Hurt St. FREDERICK Land Area 53,709 Square Feet Zoning Neighborhood Commercial District Property Type Commercial Mini Warehouse (Self Storage) Year Built 1994 & 1999 Quality Average Class Metal Frame Number of Stories 1 Total Improvement Sq. Ft. 18,080 Number of Units 109 Number Buildings 5 Value Indications: Land $107,418 Cost Approach $545,647 Market Approach $579,360 Income Approach $449,871 Assessor's Value $450,938 C BOE_C OMM_OIC Pal COST APPROACH LAND VALUE Sales utilized to establish the value in the subject neighborhood are from 2007 and the first six month of 2008 for the 2009 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 Januan 2007 through June of 2008 to establish the proper value, if sufficient information is not available in thi prior 18 months the Assessor may go back 5 years. 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 subjects land is made up of two individual lots totaling 107,549 square feet, however only the parcel with improvements is being appealed. This parcel contains 53,709 square feet. Comparable commercial land in the subject area is valued at $2.00 per square foot. Parcel Number Sale Date Sale Price Land Size Per Sq Ft Comparable 1 131325102005 05/30/06 $167,000 63,151 $2.64 Comparable 2 131325425002 01/23/04 $350,000 51,751 $6.76 Comparable 3 131325405010 07/10/02 $50,000 24,162 $2.07 The land sales comparables presented here develop a value range of $2.07 to $6.76 per squar foot. The upper end of the range is a lot with frontage on a major arterial. The lower end of th range is developed by older sales. The comparables support the value of$2.00 per square foi for the subject land. ASSESSOR'S SUBJECT LAND VALUE $107,418 CBOE_COMM_01f Paa Comparable Land Sales .. , iv.rawiiitr.„,,,,,i,,,LikikAgei ix •i I. omp #1 y , ��J I T i Y;., , .'" . 'f•-7 i p i W r ,, ' i ,14tFLORE .o.� ija____1_ lir i "To -,-. t� I. HICKORY CIR '. ' "r ' a■8t.rtApNY CTS° - i ' 4v -� ``. . .. ,a Ili r 1� . • A*PEN UR' S SKYLitdf` .+V r" !Teti° -� � 7 - u ��h�Lt 4 Mika sit M -. yam¢ z rn • .- -. ,, .., - , , 51., -, 1 ..g -"rat', '.-.-%. WILLIAM9 AV.im , �? Y. < 'i _. WM0 41"at fi4i ao9 7 GUY AV fLJL1 _Ll]fr '.#w 1t!d �Q p #3 �` I :Ri, its .-Map,cente�40'.628: N,:1©4C,56 24W, CBOE_COMM_01 Pa Subject Photographs Bldg#1 Mw warehouse Class S yoc 1999 9'all No Heat 130.0' L' s� { 26 untts 4680.0 Sr r r. 36.0' r l w�. Bldg#2 115.0' 40.0' 75.0' yoc 7999 yoc 1994 5 units 6 units _,` .F 1 t Y Mini Warehouse 4tl71 a Class S ?' , � j�`" 101 ii`.��if1'i��l' 'X'''''3"1 -444.".r:0 .u° at, c., 9'Wh P 1 'r yoc 19948'1999 I -• No Heat 11 units 2300.0 sf "'"."""� y- .. Bldg#3 115.0' 50.0' 65.0 yoc 1999 yoc 1994 11 units 11 tarts 30 0' Mini ClassWarehouse S 9'wh No Heat yoc 1994 11 999 22 units 3450.0 sf ,.."x.^....•., Rla.Of 4.NYwfr' CBOE_COMM_010 Pag Subject Photographs Bldg#4 15.0' 50.0' 65.0' yoc 1999 yoc 1996 10 units 12 units 30 0' w. £t_«„ .,,,�,�' eASX Mini Warehouse 'tMr= Class S 1 1 yoc 19966 1999 i No Heat a W 22 units _l 3450.0 sr w0.1. 30.0 Bldg#5 IOWA Mini Warehouse Class S yac 1999 No Heal 9'vm .1 : '� •- - .• . nw=e 28 units 4200.0 sf • 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 depreciation applied. A land value has likewise been established through the utilization vacant land sales of comparable properties. Improvement Value $438,229 Land Value $107,418 TOTAL VALUE BY THE COST APPROACH $545,647 CBOE_COMM_01l Pa( COST CALCULATIONS ACCOUNT NUMBER R0080690 & R0143089 PROPERTY OWNER CBMRE LLC ADRESS 5970 Hurt St. CITY, STATE,ZIP Frederick, CO NUMBER OF STORIES 1 OCCUPANCY MINI WAREHOUSE AVERAGE STORY HEIGHT 9 FLOOR AREA (SQ. FT.) 18,080 CLASS S COST RANK AVERAGE COST AS OF 06/30/08 BUILDING NUMBER Size Cost Year Built Depreciation Total 1 4,680 $27.38 1994 28% $92,260 2 2,300 $27.38 1994 & 1999 23% $48,490 3 3,450 $27.38 1994 & 1999 23% $72,735 4 3,450 $27.38 1996 & 1999 21% $74,624 5 4,200 $27.38 1999 18% $94,297 Add On's Asphalt Paving 32,000 $2.10 1994 28% $48,384 Chain Link Fence 630 $16.40 1994 28% $7,439 DEPRECIATED COST $438,229 Land Value $107,418 Total Cost Value $545,647 CBOE_COMM_01( Pa MARKET APPROACH SUMMARY Real Property for the tax year 2009 must be valued utilizing data for the period one and one-half year immediately prior to July 1, 2008. If comparable valuation data is not available from such one and one-half year period to adequately determine the level of value for a class of property, pursuant to 39 1-104 (10.2)(c) C.R.S, the Assessor may utilize sales five years prior to July 1, 2008 to establish the proper value. The Assessor has appropriately considered the Market Approach to value for the property on appeal. All sales have been confirmed and verified through transfer declarations as well as interviews with buyers, sellers or their representatives to the sale. All sales used are arm's length transactions, and considered to be the most comparable properties sold in relationship to the Subject property. Based upon investigation and analysis, it is the opinion of the appraisers that the value of $579,360 accurately reflects the market value of the subject property as an economic unit, two parcels. The appeal is only for part of the economic unit, therefore the value of the parcel not appealed is deducted. VALUE As INDICATED BY THE MARKET APPROACH $579,360 CBOE_COMM_01i Pa COMPARABLE SALES # Parcel# ADDRESS Grantor/Grantee Date of Sale Square Price Per Nc Sale Price, Foot SF Un Sub 131325401011 7173 13 CR, N/A N/A N/A 18,080 $25 109 ject Frederick assessed 1 0807204040048 824 Stone N&M PROPERTIES 5/12/2008 $129,000 3,726 $34.62 28 Mountain Ct. INC Windsor BUSH ALLAN D& 2 106103416002 316 Basher Dr. Beery Lester Alan 7/24/2007 $1,210,000 20,800 $58.17 177 Johnstown Sandhoff John Derek 3 070713215003 3 Joe P Martinez Ault Business Plaza 12/15/2006 $694,600 15,618 $44.47 43 &004 Ault Rothell Enterprises Subject Comp 1 Comp2 Comp 3 Unadjusted $ n/a $34.62 $53.17 $44.47 per SF Condition Slightly Less Superior Similar Adjustment None -- none Age 1994 & 1991 1984 2006 1999 & 2001 Adjustment ++ -- -- Outside Yes None Yes Some Storage Adjustment ++ None None Adjusted Sale $38 $38 $40 Price per SF rounded The sales present and unadjusted sale price per square foot develop a range of from $35 to $53. Aft adjustments for condition, age, and outside storage the comparable develop a range of $38 to $40 with the average being $38.66. The data indicates the subject economic unit has a market value of $38 per square foot. MARKET CALCULATIONS Subject Economic Unit (both parcels) 18,080 sq. ft. times $38 per sq. ft. equals $687,040 Outside Storage lot 53,840 square feet times $2.00 per sq. ft. equals $107,680 $687,040 Total Economic Unit -$107,680 Non-Appealed Adjacent Lot $579,360 Total Value of the Subject Parcel CBOE_COMM_01I Pa. :1*44,1%, _ ; a vyafenouse First Fbpr 9725.7 SF 24•Unas 12 tomcr 12 to= 8'w H. 41111 Con(Sat. 110838F 44' .r - 120@3' JS Urn 12 Unit I �a fir. Una I3 Una 24 Asphalt 06/25/2008 vawen br 4 I COMPARABLE SALE #1 COUNTY: WELD ACCOUNT R1482886 PARCEL NUMBER: 080720404004 PRIMARY OCC: Mini Warehouse PERCENT: 100% SECONDARY OCC: PERCENT: THIRD OCC: PERCENT: ADDRESS: 824 STONE MOUNTAIN CT WINDSOR RECEPT NUMBER: 3553630 SALE DATE: 5/12/2008 GRANTOR: N&M PROPERTIES INC SALE PRICE: $129,000 GRANTEE: BUSH ALLAN D& ADJ SALE PRICE: YEAR BUILT: 1984 CLASS: D EFFECTIVE AGE: LAND/BLDG RATIO: 2.69 LAND SIZE(SF): 10,032 LAND VALUE: $30,096 BLDG SIZE (SF): 3,726 IMPS PRICE/SF: $26.54 WALL HEIGHT: 8 SALE PRICE/SF: $34.62 STORIES: 1 INTEREST RATE: BSMNT SIZE: DOWN PYMT: BSMNT FINISH: LOAN TERM (YRS): ZONING: POINTS PAID: QUALITY: Average COMMENTS: 12— 10'X 10' units rents$55 per month, 12- 10'X 20'units rent$75 per month,4—10'X 10'units vacant at time of sale or 16.6%vacant.Confirmed sale with Allen Bush. CBOE_COMM_D10! Page .. i. a t� ia �' , «+.r.,.::, ih` S §"°t-4I1'.':',!,0,:',1'f �p�k L 1 p tia5 ' ii t' k3 li eP 1�7 is J I. «�' ``'" A' � • Fa -`,w' �wg11Ri► -_ J !, P',V-^'E A s .•{ I .1L N �y Y MAP11 . P•,•',51 mow dY .Sh:a`f, ` .„ r , * ,.....00 -t: °^.— �;• .�p�(�7' } • t �e ,.a COMPARABLE SALE #2 COUNTY: WELD ACCOUNT NUMBER: R8124499 PARCEL NUMBER: 106103416002 PRIMARY OCC: Self Storage PERCENT: 99% SECONDARY OCC: Office Building PERCENT: 1% ADDRESS: 316 BASHER DR,JOHNSTOWN RECEPT NUMBER: 3495820 SALE DATE: 7/24/2007 GRANTOR: BEERY LESTER ALAN& SALE PRICE: $1,210,000 GRANTEE: SANDHOFF JOHN DEREK ADJ SALE PRICE: $1,210,000 YEAR BUILT: 2006 CLASS: S EFFECTIVE AGE: 2006 LAND/BLDG RATIO: 3.91 LAND SIZE (SF): 81,293 LAND VALUE: $138,199 BLDG SIZE(SF): 20,800 IMPS PRICE/SF: $51.52 WALL HEIGHT: 8 SALE PRICE/SF: $58.17 STORIES: 1 INTEREST RATE: BSMNT SIZE: DOWN PYMT: BSMNT FINISH: LOAN TERM (YRS): ZONING: JOH POINTS PAID: QUALITY: Average COMMENTS: This is a newly constructed, 177 unit self storage complex in 8 buildings. There is 1,500 square feet of office space and 35 outside RV spaces. The complex was 40% rented at the time of purchase. The buyer expects to have complex rent to 90% in less than one year. The current rate quote, occupancy, and purchase price develop a cap rate of 4.3%. The complex has a kiosk that allows users to rent space, make payments, and purchase lock with attended assistance. Each unit is individually alarmed. CBOE_COMM_O1( Page '9 r • few • 7.4j°"_. II I11. 1.. "'` 11. 1. 2001 . COMPARABLE SALE #3 COUNTY: WELD ACCOUNT R6993398&6993498 PARCEL NUMBER: 070713215003&004 PRIMARY OCC: Mini Warehouse PERCENT: 100% SECONDARY OCC: PERCENT: THIRD OCC: PERCENT: ADDRESS: 3 JOE P MARTINEZ LN AULT RECEPT NUMBER: 3442803 SALE DATE: 12/15/2006 GRANTOR: AULT BUSIJNESS PLAZA LLC& SALE PRICE: $754,600 GRANTEE: ROTHELL ENTERPRISES LLC ADJ SALE PRICE: $694,600 YEAR BUILT: 1999&2001 CLASS: C EFFECTIVE AGE: LAND/BLDG RATIO: 3.07 LAND SIZE(SF): 47,916 LAND VALUE: $59,895 BLDG SIZE(SF): 15,618 IMPS PRICE/SF: $40.64 WALL HEIGHT: 9 SALE PRICE/SF: $44.47 STORIES: 1 INTEREST RATE: BSMNT SIZE: DOWN PYMT: BSMNT FINISH: LOAN TERM(YRS): ZONING: ALT I POINTS PAID: QUALITY: Average COMMENTS: DEDUCTED$60,000 FOR ADJOINING VACANT PARCEL OF LAND INCLUDED IN SALE. UNIT MIX;22-12X15, 12-12X30,6-20X32, I-25X30.20X30 OFFICE AND 30X60 SECOND STORY MANAGER'S APARTMENT. UNABLE TO CONFIRM SALE WITH BUYER. CBOE_COMM 010 Page 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 c January 1, 2007 through June 30, 2008. The total revenue reported by the owner for 2007 and 2008 was not available. The potential revenue based on quoted rental rates was used. The expenses reported by the owner for 2006 were used plus a percentage for management and reserves. Typical vacancy for mini storage in Northern Colorado is 20 to 30 percent, because of limited information fror the owner we over estimate the subject's vacancy to be 50 percent. This information, combined with statewide and industry-wide data, is used to determine typical income and expenses for various property types. As added documentation to support the estimates used, the MLS listing sheet and al income analysis from the Listing Realtor, date 9/25/2008 are provided. 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 $449,871 See table on the following page. CBOE_COMM_01 Peg( Rental Income based on going Rates Size Units Rent/Month Total 10x 10 42 $68 $34,272 10 x 15 10 $80 $9,600 10 x 20 52 $100 $62,400 15 x 15 4 $110 $5,280 15 x 20 1 $100 $1,200 estimated 109 Potential Gross Income $112,752 Vacancy and Loss 50% $56,376 Effective Gross Income $56,376 Expenses Advertising $726 Bank Svc Charge $81 Equipment Rental $49 Health Insurance $3,848 Liability Insurance $1,902 Postage $4 Telephone $546 Utilities $1,413 Mgmt 3% $1,691 Reserves 2% $1,128 Total expenses -20% -$11,389 Net Operating Income $44,987 Cap Rate + Eff Tax Rate 0.075 + 0.025 10.00% Estimate Value $449,871 Tax Rate Mill Rate Assm't Rate Eff Tax Rate 0.087432 0.29 0.025355 CBOE_COMM_01( Page Rea1GO.MLS (Search/ShowDetailsMain)-www.iresis.com Page 1 of 1 IRtS IRES MLS#: 581451 PRICE: $694,900 ADDR: 7173 WCR 13, Frederick, 80530 SALE:COMMERCIAL/INDUSTRIAL/INC ACTIVE Locale:Frederick County:Weld Area/SubArea: 10/31 Map Book:N-999-999 • Subdivision:Tops Business Park t• Legal:Provided Upon Request DOM: 55 YearBuilt:1994 SqFt Source:Assessor Records New Const:No tr Builder: t:t "` } �... New Const Notes: Lot Size: Approx Acreage: MLS Comments:Awesome business opportunity for the experienced and non Elec: Water:City experienced entrepreneur.Great location,easy access for entire tri-town area. Gas: Taxes/Yr:$11,305/2008 Current leases at 65%occupied.$112,000.00 per year is potential income PIN:R0080690 Zoning:Commercial based on 100%occupancy.Vacant commercial lot approx 1 acre adjacent to property also for sale and can be combined for additional parking space Available Date: income MLS#581567.Seller says BRING ALL OFFERS! Min/Max Vacant: Floor Level: — Total Building SqFt:18080 Driving Directions:From 1-25,go East on Highway 119,turn South on County Total SqFt Leased: Road 13.turn right on Hurt Street.Property on left after Applied Films. Min SqFt Available:Max SqFt Available: - Property Features Total Monthly Income $4,500.00 Land Size-.5-1 Acre,Style-1 Story/Ranch,Construction-Block,Roof- Total Annual Income $112,000.00 Metal Roof,Location Description-Level Lot,Fences-Chain Link, Property Gross Scheduled Income $9,300.00 Features-Storage On Site,Paved Parkng,Lot Improvements-Street Less Vacancy Rate 35.0000 Paved,Road Access-County Road/County Maintained,Road Surface At Account/Legal Property Line-Blacktop Road,Basement/Foundation-No Basement, Advertising Flood Plain-Minimal Flood Or C Rating,Heating-No Heat,Cooling-No Insurance $200.00 Cooling,Inclusions-No Inclusions,Water/Sewer-City Water, Property Management Commercial/Industrial Type-Mini-Warehouse,Ownership-Private Owner, Personal Property Tax Occupied By-Tenant Occupied, Real Estate Tax $1,333.00 Vacant For Rent, Maintenance Possession-Delivery Of Deed,Owner Will Vacate,Current Lease Common Area Maint.Per SQFT$0.00 Agreement,Tenant Pays•Nothing,Gross Scheduled Income Includes- Services Lease/Rents,Sale Includes-Building(S),Leases,Business,Existing Lease- Supplies Month-To-Month,Possible Usage-Business,Commercial Or Industrial,New Utilities $400.00 Financing-Cash,Conventional,Showing Instructions-Call First,Then Go, Misc. Call Listor, Total Operating Expense $5,188.00 Net Operating Income $106,812.00 Cap Rate 15.37 Gross Rent Mult.74.72 LA:Sonia Lynn Locke Phone:303-702-1973 Email:sonial 8mazgnfinanpialgroup.cg p Fax:303-702-1496 LO:Classic Properties Phone:303-702-1973 TB:3.00 BA:3.00 For Showings:LA:303-702-1973 Buyer Excl:No Contract:R Min EM:$15,000.00 EM Recip:First American Heritage Title LS:N Prepared By Sonia Lynn Locke-9:18 AM-9/25/2008 Information Deemed Reliable But Not Guaranteed.MLS Content And Images Copyright 1995-2008,IRES LLC.All Rights Reserved. http://www.iresis.com/MLS/Scarch/index.cfm?Action=ShowDetailsMain&Listing_ID=88... 9/25/2008 CBOE_COMM_010£ Page Potential Income Unit Size # of units Monthly rate Monthly rent 10 x 10 36 $ 68.00 $2,448.00 10 x 15 10 $ 80.00 $ 800.00 15 x 15 4 $110.00 $ 440.00 10 x 20 46 $100.00 $4,600.00 15 x 20 1 $150.00 $ 150.00 10 x 30 6 $150.00 $ 400.00 Total monthly income $9,338.00 Possible annual income $112,056.00 CBOE_COMM_O1 Pagi CONCLUSION Real property for tax year 2010 must be valued utilizing the level of value for the period of one and one-half years immediately prior to July 1, 2008. Except that, if comparable valuation data is not available from such one-and one-half-year period to adequately determine the level of value of a clas of property, the period of five years immediately prior to July 1, 2008 shall be utilized to determine the level of value. 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 i. implemented, other than additions, change in use, detrimental acts of nature, damage due to fire, etc or creation of a condominium, or any new regulations restricting or increasing the use of the land, or combination thereof. {39-1-104(11)(b)(1) C. R .S.} 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 considere 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 $450,938, most accurately reflects the value of the subject property in Weld County for the 2010 tax year. COST APPROACH MARKET APPROACH INCOME APPROACH $545,647 $579,360 $449,871 ASSESSOR'S VALUE Improvements $354,328 Land $107,418 Total: $450,938 CBOE_COMM_01 Pag 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 rn 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/r,vh) Xeltre - Wade J. Melies Commercial Appraiser Colorado Certified General Appraiser 40036400 CDOE_COMM_0109 Page' CLERK TO THE BOARD PHONE: (970) 336-7215, EXT. 4226 1 8 6 I - 2 0 1 1 FAX: (970) 352-0242 1150 O STREET P.O. BOX 758 GREELEY, COLORADO 80632 WELD_,COUNTY I October 5, 2011 CBMRE LLC 8529 NO 107TH ST LONGMONT CO 80504 RE: SCHEDULE NUMBER R0080690 Dear Property Owner: This is to advise you that the Weld County Board of Commissioners will hear your petition for abatement or refund of taxes on the property described as: 5970 Hurt Street, Frederick, CO 80530. The meeting is scheduled for October 31, 2011, at 9:00 a.m., Weld County Administration Building, 1150 O Street, Greeley, Colorado. The Assessor is recommending that the Board deny your petition. You are not required to be present at this hearing; however, this is your opportunity to have your position heard, especially if your position is opposed to the Assessor's recommendation. If you intend to submit any documentation in support of your position for this hearing, all such documentation must be submitted to the Office of the Clerk to the Board and to the Weld County Assessor's Office at least seven calendar days prior to the meeting date in order for it to be considered at the scheduled hearing. If you have any questions concerning this matter, please do not hesitate to contact me at (970) 336-7215, Extension 4226. Sincerely, .4-via ikkTonya Disney Deputy Clerk to the Board cc: Assessor Weld County Presentation for Tax Refund RE: Schedule No. R0080690 5970 Hurt Street,Frederick, CO 80530 (Tops Business Park Lot 2) Hearing: October 31, 2011, 9:00 AM Petition for abatement dated June 28, 2011 Petitioner's estimate of value for year 2010, $338,358 based on actual amounts. Tax year 2010 Potential Income 112,754 Vacancy Rate 70% Gross Income 33,826 Expenses 11,839 Net Income 21,987 Effective Cap Rate 10% Indicated Value 219,870 Land value 118,488 Taxable Value 338,358 The valuation of Lot 2 for 2011 dated 5/1/2011 $397,229 was revise to $248,332 on 6/22/2011. I am satisfied with this new valuation. 2010 Valuation Method: I agree with Mr. Melies that the Income Approach is the correct method to establish a fair valuation of my storage facility. Initial Vacancy Rate: Purchase date July 17, 2009 13 tenants (87.2% vacancy); half of them were in default. The property was neglected and mismanaged for several years. It was in foreclosure. Within 12 months, I decreased the vacancy to 77% and had a $28,000 gross income for the year. Property taxes were $16,000 (57% of gross income). I also needed to pay $24,000 for the prior year and a half of delinquent taxes at closing. Expenses: po.e 13 In his report, Mr. Melies indicates "The total revenue reported by the owner for 2007 and 2008 was not available". "The expenses reported by the owner for 2006 were used" ($11,389). This amount is very close to the industry standard of 35% of gross in a stable situation and is very close to my actual gross income from 2009-2010 ($11,826). EXHIBIT min rip" I am using industry standard P/L percentages as published by the "Inside Self Storage" organization, verified through other sources including Mr. Melies to estimate a reasonable 2009 to 2010 valuation. I obtained tax information on three similar storage facilities (Handy Storage, Denver; Greeley Self-Storage; Access Storage, Denver) who's tax expense average is 38% of total expenses; this translates to (35% x 38%) 13% of gross income (not 57%). Capitalization Rate: Because the property is not stabilized, the high capitalization rate of 10% is justifiable. Having accepted most of Mr. Melies' figures, there is only one assumption that must be addressed here and that is the vacancy rate. Assumptions by Mr. Melies: � u�K A- 1. Potential Income $112,752 2. Expenses 2006 11,389 3. Capitalization rate 10% 4. Land value th ou h 2010 118,488 i(Ud cow cv Sofia A B C D Tax year June to June 2007-08 2008-09 2009-10 2011-12 Potential Income 112,752 112,752 112,752 112,752 Vacancy Rate 50% 70% 75% 67.9% Gross Income 56,376 33,826 28,188 36,193 Expenses 2006 11,389 11,389 11,389 11,389 Net Income 44,987 22,437 16,799 24,804 Effective Cap Rate 10% 10% 10% 10% Valuation 449,870 224,366 167,990 189,016 Land value 118,488 118,488 118,488 59,028 Taxable Value 568,358 342,854 286,478 248,044 Columns: A: Assumptions by Mr. Melies based on a 50% vacancy rate. B: Estimating 2008 - 09 financials from C (but using vacancy rate 70%) C: Financials for the year 2009-10 (actual end of year vacancy rate 75%) D: Projections for 2011-12 with the new valuations Conclusions: 1. Gross Income and Vacancy Rates are closely related; when you know the value of one, you can calculate the value of the other. As can be seen from the table above, a change in the Vacancy Rate (or Gross Income) drastically changes the property valuations. 2. We can assume that under the previous owners neglectful management, the Vacancy Rate had been steadily declining for several years until July 19, 2009. Since we were not provided reliable financials for 2007 to 2009, they are fairly easy to estimate. As stated, my starting vacancy rate was 87% and a year later was 77%, a 1., management, after significant renovations and new administration. Under the circumstances stated herein, it is reasonable to assume that the vacancy rate for 2008 - 2009 was between 70% and 87%. Vacancy Rates 100% -- -- :. 0:87 -- 90% 80% 075 t ��II 075 066 l 70% 0.65 f'i° °"yII r 60% "�a s'---" iSirfilli "a, Ob 0i 1; Sid i.Ihil; 50% lb • d i;.: r r i igf i e vvgK :vi i'h ilk ,il 40% f°' m'�3a ,1141 qp 80/0 -tea .k 't i9 :jo;i Pak b yj;.�iN :�;2,'t, , .I 20% x : of Has t"ri' s-'l1, 10% ,.11-1 �a '—"— kj "..((}p i i �-a 0% _�u 1:.:: r...ci uti'i .d::k.i., 1lih q vii; lj tl 2010 2006 2007 2008 2009 2011 I understand that the Colorado industry standard vacancy rate is 20%to 30%.%50°I/no situation, using the estimated vacancy rate of 70% is more reasonable than 50% used in column A. The resulting property valuation in column B would reflect a more accurate situation. 3. The 2011 land valuation was reduced to almost half of the prior year valuations; this is due to economic influences. The Income Approach is only based on performance, as it should be. The new 2011 valuation appears to be very much in line with my current expectations. Please accept my petition to reduce the valuation of Lot 2 to at least $338,358 and process an appropriate tax refund. Thank you for you consideration, Wolfram Kasemir Part owner of CBMRE LLC dba, AA Affordable Storage ..--_--,Q ..0-feAS - ..91 /' , 2U `mo Q_?- . o c.C. Wails Date CAMBRIDGE" / _._ _ PRpara 11. 58242 ___. aPVaM Ba 1 2 3 il<«, I _ I �i Pte - I 2 n, i«,✓- a c nxa-t?_ I �n� � � � e`A III t�I 111C'„ 1111 '1'-e 311 t 131 ��,., . / . . a 4,, 4 .i. v I a - I rC4 4 l e pp. . L kyy ii ; 1 51 V 96 VQ.t tAA.an2 i s�/. J 'tn/P nit)A.,.f I � - ' /2 Off II v 11 ids IIGi!.. 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CCOY9 I; `Ymog. t'N-0`oo„Oto� cmaoerrig`orb?clgfl ° 'o 'Yao �3IT3z2Enc" mo,W£3g02E u • ^I re m c ppH EYm_ ` dm � � ;, c4mN yN��nObnnnnE11�600002JEE2 LL'KNNNN)Qm02SJCN • a m x .t C'Cm9L 2 > 4") o co .tc 000mT a000000 000000000000--------- J 'COOCY zno00000000MO000------1--------M-- -----M,. - - - Q 0 8 N GmmooY.LLLLO0 x c0lnmmw3 NNWNN O NN NWINdd ppppliY Ndd {Y NN NNp dp o r 0 0 i- CLERK TO THE BOARD PHONE: (970) 336-7215, Ext. 4225 I 8 6 - 2 FAX: (970) 352-0242 1150 O STREET P.O. BOX 758 GREELEY, COLORADO 80632 WELD__COUNTY November 8, 2011 CBMRE LLC 8529 NO 107TH ST LONGMONT CO 80504 RE: SCHEDULE NUMBER R0080690 Dear Property Owner: On October 31, 2011, the Board of Weld County Commissioners considered your petition for abatement or refund of taxes and denied same. Pursuant to Section 39-2-125(f), C.R.S., you have the right to appeal this decision to the State Board of Assessment Appeals within thirty days. You may obtain the appropriate forms and instructions from: Board of Assessment Appeals, Department of Local Affairs, 1313 Sherman Street, Room 315 Denver, CO 80203 Phone: 303-866-5880 In preparation for appealing to the State Board of Assessment Appeals you may also go to the following state link to obtain any further information you may need to proceed, http://www.dola.state.co.us/baa/index.htm Very truly yours, Tonya Disney Deputy Clerk to the Board cc: Assessor Hello