HomeMy WebLinkAbout20102605.tiff RESOLUTION
RE: ACTION OF THE BOARD CONCERNING PETITION FOR ABATEMENT OR REFUND
OF TAXES - ART INVESTMENTS, LLC, C/O ROGER CHIVUKULA
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 1st day of November, 2010, at which
meeting there were present the following members: Chair Douglas Rademacher, and
Commissioners Sean P. Conway, William F. Garcia, Barbara Kirkmeyer, and David E. Long,
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, being
present, and taxpayer Art Investments, LLC, c/o Roger Chivukula, not 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 2009
EL iiSk, Po-
2010-2605
1 1" / y "/0 AS0075
TAX ABATEMENT PETITION -ART INVESTMENTS, LLC, C/O ROGER CHIVUKULA
PAGE 2
The above and foregoing Resolution was, on motion duly made and seconded, adopted
by the following vote on the 1st day of November, A.D., 2010.
BOARD OF COUNTY COMMISSIONERS
I. %4 LD COUNT,Y, COLORADO
ATTEST: > -Y �% I r, C it
i S�1C�Lvbc)L. —.J
Weld County Clerk to the Boa .M is.i (� 6yO� %V a Radema e
jy P i��l% A_a.A&.- /A LA--• 1 d, "� YY —�r(+:ara Kirkmeye , P -Tem
Dep Clerk .o the Board w
Sean P. Co a c
AP D M: ( I q -'
Will m F. Garcia
unty Attorney cA) `L
David E. Long
V
Date of signature: a liD Ito
2010-2605
AS0075
! -
PETITION FOR ABATEMENT OR REFUND OF TAXES y��/Oh
Cdy a!@/ZJ � O Date Received � G. 0.33
F,l ("Ir, tr PO (Use Assessor's or Commissioners'Date Stamp)
. LRJ
LU�J PC I Se#tior ligLitibitir,please complete Section I only. rimen
R 1t
Date: Or ? s X010 RECEIVE®
Mont Day Year �tc
Petitioner's Name: r2-0f7 E2 GA SIO K O L A. MAY 28 2010
Petitioner's Mailing Address: '32 1 Lo cSL u-.oc
Avt••01 Co Roo' -c WELD COUNTY ASSESS(
City or Town State Zip Code GREECLEr. COLORADO
SCHEDULE OR PARCEL NUMBER(S) PROPERTY ADDRESS OR LEGAL DESCRIPTION OF PROPERTY
I313aZoo2007- tt4bS DU Di'-Jess PAaI Ci etw�
?VoSYoo
Petitioner states that the taxes assessed against the above property for the property tax year 2 00°1/4 are
incorrect for the following reasons: (Briefly describe the circumstances surrounding the incorrect value or tax.
Attach additional sheets if necessary.) ,I
4 e AI
e --,rr<.s c n L-t,-r Z
4,Ee A- r-ce-c , .-cewasz 6-cat c..A[0-Pi s
Petitioner's estimate of value: $ 4 3, 47O Oo0(0409 4 a007
Value ' Year
Petitioner requests an abatement or refund of the appropriate taxes.
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,correctt,an pleb -
Daytime Phone Number l&o) 3C2- 13 y
Petitioner's Signature
By Daytime Phone Number I
Agents Signature'
`Letter of agency must be attached when petition is submitted by an agent.
If the board of county commissioners,pursuant to section 39-10-114(1),or the property tax administrator,
pursuant to section 39-2-116,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 section 39-2-125
within thirty days of the entry of any such decision,§39-10-114.5(1),C.R.S.
Section II: Assessor's Recommendation
(For Assessor's Use Only)
ZOa%
Tax Year
Actual Assessed Tax
O P 4'p ✓#t y'4 /Vlc?af 5 a
Original / / / �
Corrected /�" ' ' /y�
Abate/Refund e
Csi
o Assessor recommends approval as outlined above.
�g No protest was filed for the year: (If a protest was filed,please attach a copy of the NOD.)
pi Assessor recommends denial for the following reason(s):
�,.2con'/c s-a/too t da/
a/
sass rDe Assessor's " ature
15-DPT-AR No.920-66/06
2010-2605
Account Number e?,8NOS'*100 Parcel Number 13t3(3ZOOZOC>Z_
Owner Name A Cc-e.>„)& riait r-rTt) L,�.C�
Phone Number X20- 36-2 - t3y e-mail os- AAL..cs '@ C ow\ctkSt. r\t#-
REAL PROPERTY QUESTIONNAIRE
Attach additional documents as necessary.
MARKET APPROACH
This approach to value uses comparable sales from the appropriate time period to determine the actual value of
your property. The following items, if known, will help you estimate the market value of your property. If
available, attach a copy of any appraisal or written estimate of value.
Have similar properties in your immediate neighborhood sold within the 18-month data gathering period?
DATE SOLD PROPERTY ADDRESS SELLING PRICE
t,o - wC COvv.0 POT- Pi*--“A PNl 6oas Cowles 2-v.-)
W r-0T"`-C
Based on these sales and accounting for differences between sold properties and your property, state the value
of your property. $
COST APPROACH
(For Non-Residential Properties Only)
This approach to value uses replacement construction costs from the appropriate time period to determine the
value of your property. The following items, if known, will help you estimate the replacement cost of your
property.
ORIGINAL
YEAR BUILT BUILDER CONSTRUCTION COST
ZOO I '- C sT Q c- Cows', rtvcnC+J V-ef c*-A . y
List all changes made to your property prior to January 1 of the current year, i.e., remodeling of storefront;
expansion of storage area;addition to parking, service or manufacturing area.
DATE DESCRIPTION OF CHANGE COST
2oo5f zoo 6 ^Zj ��k...�o Pv+t•;car F4e..,.44 4-44 s, 14ro-t. 4c MVO-
4.4 .,ia.tc n a 1°A CA- WAS.. w.wal .
c .wA(«,o Wk.)
1 n+0 St '•.+l`�w\ Sin".Nl�'' t '-CTt-S
Is your structure in typical condition for its age? `(t5 If not,why?
Based on the replacement cost of construction and of any changes, including depreciation, state the total value
of your property. $ 5.47-0, 0ex
INCOME APPROACH
(For Non-Residential Properties Only)
This approach to value converts economic net income from the appropriate time period into present worth.
If the property was rented or leased, attach operating statements showing rental and expense amounts for this
property.
Indicate square foot rental rate for all tenants. (Attach rent and lease schedule)
If known, list rents of comparable properties.
If available, attach operating statements showing rental and expense amounts for comparable properties.
If an appraisal using the income approach was conducted, please attach.
FINAL ESTIMATE OF VALUE J
State your final estimate of the property's value. $ -5/ 1 a-O COO 4,4 o g ter¢_ 30,Zoo
w o CL w. 'Jti{ (-9.-75 To0 T TN C.v( aRiAr' R'"TS •
15-AR-DPT
ARL VOL 2
1-84 Rev 10-09
Art Investments, LLC
c/o Roger Chivukula
381 Lodgewood Lane
Lafayette, CO 80026
May 28, 2010
Weld County Assessor's Office
1400 N 17th Ave.,
Greeley, Colorado 80631
Dear Weld County Assessor,
My name is Roger Chivukula and my LLC owns 11409 Business Park Circle in Firestone is Art Investment,
LLC. My account number is#R8405400 and the Parcel Number is#131302002002. I am very concerned
about the Weld County tax assessor's valuation for 11409 Business Park Circle and would like for you to
consider a few items in connection with my appeal of the valuation.
The building was purchased at what I think a lot of people would consider being the peak of the
commercial real estate market in November of 2007. Economists have determined that time period to
be when the recession officially began and it gained speed rapidly. I live in Lafayette, Colorado and I had
been looking for some time to purchase a building in a community that I enjoy. The building has nine
different companies that lease space and they are all small businesses and it has been necessary to
make rent concessions during this recession. Part of what is important to them is the rent that we
charge but another crucial element are the taxes and expenses that, as the building owner, my LLC must
charge to the tenants as all of the leases are on triple net terms and the tenants pay these as part of the
triple net rent.
When the recession started, cap rates started to increase rapidly. When I purchased the building, the
cap rate required by the mortgage lender was approximately 7.39%. This is a very low cap rate and I
was willing to pay a premium for the building and have it as my sole property with real promise in the
many years to come. Because of the change in circumstances, however,the market cap rate has gone
up to what is more accurately 8.0%to 8.5%as of June 30, 2008, which would value the property at
about$3,690,000-$3,470,000. I researched all of the market comps for comparables and for cap rate
information and what I found is that there are no good market comps. My broker that I worked with to
purchase the property told me that things really nose dived in 2008 (and 2009—but I understand we are
only looking at up to June 30, 2008) and that cap rates have been dramatically increasing and even are
reaching into the 9 and 10's currently.
The other area I would like you to consider is that the assessor lists the property at 25,296 square feet.
The square footage number of 25,296 square feet is incorrect.The actual square footage is 21,731
square feet which is what I have in my rent rolls. Based on the assessment's amount per square foot of
$158.13 per square foot,the valuation would be$3,436,000.
I would truly appreciate your reconsideration of the correct value of my building. The valuation you
provided me is an 80% increase in my taxes which puts an extremely heavy burden on all the companies
that are in the building. I have lost three of my nine tenants in the building and I am very much at risk
r .
for losing more tenants as a result of the increase assessment. In addition,the largest tenant in the
building, LaFarge, is actively trying to sublet its space because they are struggling financially. I realize
that you value the buildings up to June 30, 2008 and I have tried to provide you with some reasoning for
you to consider a reduction that was valid up to June 30, 2008. I have great concern over the companies
that employ citizens in your county not being able to stay afloat because of their gross rental costs. I
truly care about my tenants and I hope that you will reconsider the valuation so that it better reflects
the economic reality, and in turn will help these local businesses stay in business in Weld County.
Sincerely,
Art Investments, LLC
Roger Chivukula
1501:
900'
3-Story Office
.19.0_'i
Total Building Area
25296 so A a v
titi Claus1
L Year Built 2001
1 m, Complete INAC _
'— e w Wilt' 57 I0A' d
1. - iy
Spookier S)5tem S
ci
1 +hr III m -
6d3221 Floor
sd r. 0x320 95 5432.0s9rt 33 80
m
(Aspna,per Plans=259250:AJ 2 I.
�2 211 a
�^ 2aa h)
4._ .c.0a
o.
750 n_ _ 450'
- �21 Concrete 172210 sq.ft
. '3�4'Ekgzp.:- 1360'
uvmnrnnrvwmry
COMPARABLE SALE COUNTY: WELD
ACCOUNT NUMBER: R8405400 PARCEL NUMBER: 131302002002
PRIMARY OCC: 3 Story Office Building PERCENT: 100%
ADDRESS: 11409 BUSINESS PARK CIR., FIRESTONE
RECEPT NUMBER: 3519630 SALE DATE: 11/14/2007
GRANTOR: DIAMOND WEST LLC SALE PRICE: $4,000,000
GRANTEE: ART INVESTMENTS LLC ADJ SALE PRICE: $4,000,000
YEAR BUILT: 2001 CLASS: C
EFFECTIVE AGE: 2001 LAND/BLDG RATIO: 1.94
LAND SIZE(SF): 49,136 LAND VALUE: $221,111
BLDG SIZE(SF): 25,296 IMPS PRICE/SF: $149.38
WALL HEIGHT: 12 SALE PRICE/SF: $158.12
STORIES: 3 INTEREST RATE:
BSMNT SIZE: DOWN PYMT:
BSMNT FINISH: LOAN TERM (YRS):
ZONING: POINTS PAID:
QUALITY: Good
COMMENTS: Buyer purchased property as an investment property. Appraisal used a 7% cap
rate for the income approach. All rents are NNN.
•
Income analysis for R8405400
11409 Business Park Cir
Rate is derived from actual income for the first half of 2008.
Cap Rate Test
Sale Actual
Size Rate 1/2 2008 Total $4,000,000
24850 $11.65 $144,746 $289,492 psf $160.97
Cap 7.39% 7.24%
Vacancy included in actual income NOI $295,600
Potential Gross Income $289,492
Expense
Mngt 5.00% 14474.62 Petition Amount
Rsry 3.00% 8684.769 $3,470,000
total $23,159 $139.64
Net Operating Income $266,333 Adjustment
p sf $150.00
Cap 7.39% $3,727,500
Land $405,369
Value $3,603,964 Imps $3,322,131
psf $145.03
Market Rate Analysis
24850 $15.00 $372,750
Vacancy 12% $44,730
PGI $328,020
Expense
Mngt 5.00% $16,401
Rsry 3.00% $9,841
$26,242
NOI $301,778
Cap 7.39%
$4,083,605
$164.33
6 CLERK TO THE BOARD
�j PHONE: (970) 336-7215, EXT. 4226
ZZ�r FAX: (970) 352-0242
91510TH STREET
P.O. BOX 758
GREELEY, COLORADO 80632•i
COLORADO
October 4, 2010
ART INVESTMENTS LLC
CIO ROGER CHIVUKULA
381 LODGEWOOD LN
LAFAYETTE CO 80026
RE: SCHEDULE NUMBER: R8405400
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: 11409 Business Park Circle. The
meeting is scheduled for November 1, 2010, at 9:00 a.m., in the First Floor Meeting Room, Weld
County Centennial Center, 915 10th 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,
Tonya Disney
Deputy Clerk to the Board
cc: Assessor
p riet CLERK TO THE BOARD
PHONE: (970) 336-7215, Ext. 4225
FAX:91 0) 352-0242
915 10TH STREET
P.O. BOX 758
GREELEY, COLORADO 80632
C.
COLORADO
November 17, 2010
ART INVESTMENTS LLC
C/O ROGER CHIVUKULA
381 LODGEWOOD LN
LAFAYETTE CO 80026
RE: SCHEDULE NUMBER: R8405400
Dear Property Owner:
On November 1, 2010, 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,
I � �, 1�
Tonya Disney
Deputy Clerk to the Board
cc: Assessor
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