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HomeMy WebLinkAbout20091853.tiffCLERK TO THE BOARD PHONE (970) 336-7215, Ext. 4226 FAX: (970) 352-0242 P. O. BOX 758 GREELEY, COLORADO 80632 Whk COLORADO August 19, 2009 GREELEY MALL I/GKD FUND I LLC O/O GK DEVELOPMENT INC 303 EAST MAIN ST STE 201 BARRINGTON, IL 60010 RE: THE BOARD OF EQUALIZATION, 2009, WELD COUNTY, COLORADO - ADMINISTRATIVE DENIAL OF PETITIONER'S APPEAL AND AFFIRM ASSESSOR'S VALUE DESCRIPTION OF PROPERTY: ACCOUNT #: R4473006 PARCEL #: 096119218001 - GR GM LOT 1 GREELEY MALL MINOR (IMPS ONLY PERKINS RESTAURANT 096119200057) SITUS: 2050 GREELEY MALL ST GREELEY 806310000 Dear Petitioner: On July 31, and August 5, 2009, 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 your request for an Administrative Denial of your petition of appeal of the County Assessor's valuation of your property described above, for the year 2009. The assessment and valuation of the Weld County Assessor was affirmed as follows: ACTUAL VALUE AS DETERMINED BY ASSESSOR ACTUAL VALUE AS SET BY BOARD $31,558,530 $31,558,530 c0". A-(04,1c'rLl \ 2009-1853 AS0073 GREELEY MALL I/GKD FUND I LLC - R4473006 Page 2 A denial of a petition, in whole or in part, by the Board of Equalization may be appealed by selecting one of the following three options; however, said appeal must be filed within 30 days of the notice of denial: 1. Board of Assessment Appeals: You have the right to appeal the County Board of Equalization's (CBOE's) decision to the Board of Assessment Appeals (BAA). Such hearing is the final hearing at which testimony, exhibits, or any other evidence may be introduced. If the decision of the BAA is further appealed to the Court of Appeals, only the record created at the BAA hearing shall be the basis for the Court's decision. No new evidence can be introduced at the Court of Appeals. (Section 39-8-108(10), C.R.S.) Appeals to the BAA must be made on forms furnished by the BAA, and such appeals should be mailed or delivered within thirty (30) days of denial by the CBOE to: Board of Assessment Appeals 1313 Sherman Street, Room 315 Denver, CO 80203 Phone: 303-866-5880 Fees: A taxpayer representing himself is not charged for the first two appeals to the Board of Assessment Appeals; however, a taxpayer being represented by an agent or an attorney must submit a fee of $101.25 per appeal. OR 2. District Court: You have the right to appeal the CBOE's decision to the District Court of the county wherein your property is located. New testimony, exhibits or any other evidence may be introduced at the District Court hearing. For filing requirements, please contact your attorney or the Clerk of the District Court. Further appeal of the District Court's decision is made to the Court of Appeals for a review of the record. (Section 39-8-108(1), C.R.S.) OR 3. Binding Arbitration: You have the right to submit your case to arbitration. If you choose this option the arbitrator's decision is final and your right to appeal your current valuation ends. (Section 39-8-108.5, C.R.S.) Selecting the Arbitrator: In order to pursue arbitration, you must notify the CBOE of your intent. You and the CBOE 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 will make the selection. Arbitration Hearing Procedure: Arbitration hearings are held within sixty days from the date the arbitrator is selected. Both you and the CBOE are entitled to participate. The hearings are informal. The arbitrator has the authority to issue subpoenas for witnesses, books, records, documents and other evidence. He 2009-1853 AS0073 GREELEY MALL I/GKD FUND I LLC - R4473006 Page 3 also has the power to administer oaths, and all questions of law and fact shall be determined by him. The arbitration hearing may be confidential and closed to the public, upon mutual agreement. The arbitrator's written decision must be delivered to both parties personally or by registered mail within ten (10) days of the hearing. Such decision is final and not subject to review. Fees and Expenses: The arbitrator's fees and expenses are agreed upon by you and the CBOE. In the case of residential real property, such fees and expenses cannot exceed $150.00 per case. The arbitrator's fees and expenses, not including counsel fees, are to be paid as provided in the decision. If you have questions or need additional information, please do not hesitate to contact me at (970) 336-7215, Extension 4226. Very truly yours, u t. Esther E. Gesick Deputy Clerk to the Board cc: Christopher Woodruff, Assessor DOWNEY AND MURRAY LLC ATTN: THOMAS DOWNEY 383 INVERNESS PARKWAY STE 300 ENGLEWOOD, CO 80112 2009-1853 AS0073 Weld Count CHRISTOPHER M. WOODRUFF COUNTY ASSESSO BRENDA DONES, DEPUTY ASSESSO VALUATION REPORT OF COMMERCIAL PROPERTY FOR County Board of Equalization GREELEY MALL I/GKD FUND I LLC PETITIONER vs. WELD COUNTY ASSESSOR'S OFFICE RESPONDENT Parcel Number: 0961-19-2-18-001 0961-19-2-18-020 0961-19-2-18-052 0961-19-2-18-002 0961-19-2-18-043 0961-19-2-18-003 Schedule Number: R4473006 R3761086 R1044296 R4473206 R0072287 R4473306 Log Number: 2480 Date: 08/05/2009 Time: 3:30 Board: CBOE PREPARED BY APPRAISERS NAME Enclosed mall Dillards Pizza Hut Strip Center Habitat (old Safeway) Land Parcel east Signature Date Chuck Jack 08/05/09 ASSESSOR'S OFFICE STAFF APPRAISER Page 1 „,?o°9_ 1753 SALIENT FACTS AND CONCLUSIONS Purpose of Appraisal Property Rights Appraised Location Land Area To determine Market Value as of 1/1/09 based on an appraisal date of 6/30/08. Unencumbered fee simple interest. 2050 GREELEY MALL ST GREELEY 2,593,759 Square Feet (59.55 acres) Property Type Commercial Regional Shopping Center Year Built Year Remodeled Quality Class 1973 Constant & on -going Good Metal Frame Number of Stories 1 Improvement Sq. Ft. 425,752 Value Indications: Land Cost Approach Market Approach Income Approach $10,375,036 $ 39,620,811 $ 42,575,200 $ 35,289,053 Assessor's Value $39,354,303 Page 2 DILLARDS PIZZA HUT PAGE 4 STRIP CENTER HABITAT (OLD SAFEWAY) -0713.1./20.09 SKETCH OF ENCLOSED MALL BLDG #1 Location of Sears Bit 2003 6,552 sq.ft. 26.0' sOS a 1130' c2 ma 6 9a 43- o- 4 ran• m 90 940 Location of 12 -flex Theater A. 255.0' 282.0 85.0' 85.0' 230.0' 243.0' 221 0' 10 0' 1601 Open Walkway 60 0 3726.0 sf Location of J.C. Pennys Sketch by Ppea Medina^' 192V 5a 50 Bldg #1 Enclosed Mall Area 23171,409 anf ft 263.0' 80.0' Location of Dillards DILLARDS SKETCH 186.0' 102.0' 220.0 Bldg #3 Dillards Department Store 41,140 sq ft 30 16.0' 440 102.0' Second Floor 1980.0 sf 45.0' Op 170 410 : 1.0' e 0121) lt3O 0 of 410.0' 86.0' Sketch by Rpm( Nadine., 30.0 PAGE 6 Pizza Hut 400 w 10' P 9.0' CONC. SLAB 9.0' 1283.5 19.5' 29.5' a 10.0' 3.7' 3.0 1. 33.0' Sketch by $.x IV^' 0) RESTAURANT BLT 1995 CLASS D Stucco Siding 15'- 18'wh HVAC 3,617 sq.ft. 373 sq.it. equip loft 36.6' 25.0' 0 V COOLER b 120.0 ,� 8' WH Page 7 0 O co Habitat (old Safeway) OCO a iT m Convenience Center in 0 O Co N c) m lode° 00140 a „ b 6- ,OZEI 0'K Sketch by Apex IV 1AAndows" 00 N nn .1 a C) w O a a COST APPROACH LAND VALUE Sales utilized to establish the value in the subject neighborhood are from 2007 and the first six months of the 2008 market 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 July 2003 through June 2008 to establish the proper value, if sufficient information 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 2,593,759 square feet. It has been determined from market sales of similar land that a value of $4.00 psf or $10,375,036 is applicable for the subject properties land area - Parcel Number Sale Sale Price Land Size Per Acre Date Comparable 1 Comparable 2 Comparable 3 Comparable 4 095914416001 Centerplace 11/16/07 $4,183,851 721,332 $5.80 095922149001 06/30/04 $3,070,000 627,046 Greeley Commons $4.90 095914310001 Lowes 095914309001 Kohls Centerplace 04/29/04 $2,750,000 580,443 $4.74 07/17/03 $1,868,500 533,864 $3.50 Range $3.50 to $5.80 Average $4.73 Median $4.82 ASSESSOR'S SUBJECT LAND VALUE $10,375,036 Page 10 Cost Approach Summary PARCEL NUMBER PROPERTY OWNER ADRESS CITY, STATE, ZIP DATE OF APPRAISAL OCCUPANCY: FLOOR AREA (SQ. FT.) CLASS: COST RANK HEATING AND COOLING RCN BASIC STRUCTURE COST perimeter adjustment wall height adjustment Current multiplier Local multiplier Adjusted RCN Basic Cost EXTRAS: Conc. Asphalt Loading Docks TOTAL RCN LESS DEPRECIATION All forms RCN LESS DEPR. ADD IN LAND VALUE TOTAL VALUE VALUE PER Sq Ft 096119218001 + Greeley Mall 2050 Greeley Mall Street Greeley, Colo 06/30/08 Regional Shopping ctr 425,752 S Avg Warm & Cool Air Zoned UNITS 425,752 Sq Ft 28,680 998,614 1,290 0.21 NUMBER OF STORIES 1 AVERAGE STORY HEIGHT 18 YEAR BUILT 1973 Effective Age 1985 Estimated Life 55 COST TOTAL $38,057,97 $89.39 0.82 1.127 1.00 0.99 Cost PSF $2.80 $2.10 $17.87 $7,774,122 $34,819,18 80,304 2,097,089 23,052 $37,019,63 $29,245,50 $10,375,03 $39,620,54 $93.1 MARKET APPROACH SUMMARY Real Property for the tax year 2009 must be valued utilizing data for the period one and one-half years 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, the perioc of five years immediately prior to July 1, 2008 shall be utilized to determine the level of value. The Assessor has appropriately considered the Market Approach to value for the property on appeal The Sales Comparison Approach was considered in developing a market value for the Subject. Sale used to establish a market value for the tax year 2009 are from January 1, 2007 through June 30, 2008. 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. 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 $100.00 accurately reflects the market value of the subject property. VALUE As INDICATED BY THE MARKET APPROACH $42,575,200 Page 12 COMPARATIVE SALES APPROACH a) Y M C m O m O LO M m m NO cot N 0 C -ON u - a C .2 O coC° CO 0 O N N N N 0 0 ▪ (.7 N 4224 Center place a) N 07 Windsor Market 2305 Grly LLC U CO 0 C a) 0 Windsor Holdings South Street Realty Ventures 0 ill o N 0 0 .Z' (DC N O O co N (NO m U • CO E rn ccoo o a N E Q try try U o L (0 0 0 N m 0 0 O O O N M 0 0 O O O a i9 0 a ai rn 49 an o r _d >, C a) a) 0 m 0) :U a v co • N 0 N E o N N c0 E .3, co co co U o a L GO CO C a a 00 O L 00 V _O m M CO 0 m o o O co 4) N M ‘c7)o rn N CU ✓ J EA E E 0 0 d O a C >, C O (5 >, >.c>, O O 0 0 'C 0 Nr N 0 E 0 N 0 0 0 E a N 0 0 <0 at 0 0 0) 0 E r r 0 EEL' 0 o a0 0 E c (7 U c C.� is O is -c co N co r N O d 0 oo a)o N W oo 0 r- N N O) CO ma) Nco Maa 0 0 N N �ON Y�4) N U C co co co 0 0 0 0 CO >,tO CO CO N CO Or 2 `) U 0 • N N r 0 • • V r coo O N Or M N M 0 O N et el - N (0 00 dnco NNN 0 V co 7 0 7 o c r cc I r re ce 0u) n a, in o r U m m C 0 0 O cj0•01 a d 00001 (0 J Oa3O)O a00 O O N N N m N M r N M N M it w J co 1� 0 V N r-- .1 IN 0 t 0 V et Mr at 0a3 0C W C 0Yee0C 2050 Greeley Mall 0 T) v a U 1973 & 2003 0) C ao 0 0 S 0 0 Cr; 0 CO N O to 0) M a) o M L CO O) V et 0) co La M O N Cr) CO C O d coNa)▪ co 0 T- m0 o NM O co Q M N et O v (fl a CA o) a) CC C, Q (0 r 0 0 Y) 0 O I y `o aa)) ° m tNN e y m a0 E rn 0 K 0TA R m °) ?) c v L. • 0? 0 C9 w m 0<O. � D m>- »LLQ¢ Adj Sale PSF Comps range: _ $42,575,200 $100.00 x 425,752 O O^ Cr) a -- O_ O_ 69 S CompsMedian: COMPARABLE SALE #1 ACCOUNT R4473006 + PRIMARY OCC: Regional Shopping Center SECONDARY OCC: THIRD OCC: ADDRESS: Be 2003 6, 5Q.R. 25O —113T WI _ Leetlea M 12•Pla then, § a Wed 230.7 flit Open Malwnr 37260 02 Cr Si0 of 4a ivies_" Laurin el SC. Pony, er 560 16t 2520 2420 Bldg #1 Enclosed MaR Area 225310.0 2030 800 Levan et [Wards 4100 188.0' 220.0' Bldg #3 Wards Deparonent Store 42,852 Si 102.0' 30, 1f6Mff op 1211 Pot 186.0' 441 Senn floor Mee 45 102.0' COUNTY: WELD PARCEL NUMBER: 096119218001 + PERCENT: 100% PERCENT: PERCENT: 2050 GREELEY MALL ST, GREELEY RECEPT NUMBER: 3407475 & 3407476 GRANTOR: MACERICH GREELEY ASSOCIATES GRANTEE: GREELEY MALL I/GKD FUND I LLC YEAR BUILT: EFFECTIVE AGE: LAND SIZE (SF): BLDG SIZE (SF): WALL HEIGHT: STORIES: BSMNT SIZE: BSMNT FINISH: ZONING: QUALITY: COMMENTS: 1973, 1995, 2003 2,603,453 477,446 20 1 Average The sale as one economic unit. SALE DATE: SALE PRICE: ADJ SALE PRICE: CLASS: LAND/BLDG RATIO: LAND VALUE: IMPS PRICE/SF: SALE PRICE/SF: INTEREST RATE: DOWN PYMT: LOAN TERM (YRS): POINTS PAID: 7/27/2006 $49,200,000 $49,180,000 C 5.34 $10,413,812 $77.13 $103.00 �+ft awes MSS vl 300 PAGE 14 0 c COMPARABLE SALE #2 ACCOUNT PRIMARY OCC: SECONDARY OCC: THIRD OCC: R3118504 Community Shopping Center ADDRESS: 4711 T11RU 4759 29 ST GREELEY RECEPT NUMBER: 3321190 GRANTOR: GREELEY COMMONS LLC GRANTEE: GREELEY SHOPPING CENTER LLC COUNTY: WELD PARCEL NUMBER: 095922149001 PERCENT: 100% PERCENT: PERCENT: SALE DATE: SALE PRICE: ADJ SALE PRICE: 8/25/2005 $21,000.000 YEAR BUILT: 2004 & 2005 CLASS: EFFECTIVE AGE: LAND/BLDG RATIO: 4.62 LAND SIZE (SF): 627,046 LAND VALUE: $2,506,304 BLDG SIZE (SF): 138,446 IMPS PRICE/SF: $133.58 WALL HEIGHT: SALE PRICE/SF: $151.68 STORIES: 1 INTEREST RATE: BSMNT SIZE: DOWN PYMT: BSMNT FINISH: LOAN TERM (YRS): ZONING: POINTS PAID: QUALITY: Good COMMENTS: GREELEY COMMONS SHOPPING CENTER HAS SIX SEPARATE RETAIL BUILDINGS AND ONE BANK WITH DRIVE -UP FACILITY. IT IS ANCHORED BY BIG BOX TENANTS SUCH AS CIRCUIT CITY 21,236 SF, OFFICE MAX 19,848 SF, and MICHAEL'S 21,323 SF. APPROXIMATELY 5,073 SF VACANT AS SHELL BUILDING SPACE AT TIME OF SALE. Page 15 COMPARABLE SALE #3 ACCOUNT NUMBER: R2587603 & R2587703 PRIMARY OCC: SECONDARY OCC: THIRD OCC: ADDRESS: Community Shopping Center COUNTY: WELD PARCEL NUMBER: 095914309001 & 002 PERCENT: 100% PERCENT: PERCENT: 4224 CENTERPLACE DR GREELEY RECEPT NUMBER: 3213029 GRANTOR: CENTERPLACE GREELEY LLC GRANTEE: GREELEY REALTY VENTURES LLC YEAR BUILT: EFFECTIVE AGE: LAND SIZE (SF): BLDG SIZE (SF): WALL HEIGHT: STORIES: BSMNT SIZE: BSMNT FINISH: ZONING: 2003 491,948 98,039 20 1 GRE PUD SALE DATE: SALE PRICE: ADJ SALE PRICE: CLASS: LAND/BLDG RATIO: LAND VALUE: IMPS PRICE/SF: SALE PRICE/SF: INTEREST RATE: DOWN PYMT: LOAN TERM (YRS): POINTS PAID: QUALITY: 8/6/2004 $11,900,000 $11.900,000 C 5.09 $1,967,792 $101.30 $121.38 Average PAGE 16 CBOE_COMM _01C Page COMPARABLE SALE #4 ACCOUNT R2459886 PRIMARY OCC: Neighborhood Shopping SECONDARY OCC: THIRD OCC: ADDRESS: COUNTY: WELD PARCEL NUMBER: 095913412013 PERCENT: 100% PERCENT: PERCENT: 2305 THRU 2401 W 27 ST GREELEY RECEPT NUMBER: 3357052 GRANTOR: 2305 GREELEY LLC UND 20% INT & GRANTEE: SOUTH STREET PARTNERS LTD LLC YEAR BUILT: EFFECTIVE AGE: LAND SIZE (SF): BLDG SIZE (SF): WALL HEIGHT: STORIES: BSMNT SIZE: BSMNT FINISH: ZONING: QUALITY: COMMENTS: SALE DATE: 1/19/2006 SALE PRICE: $7,100,000 ADJ SALE PRICE: CLASS: LAND/BLDG RATIO: LAND VALUE: IMPS PRICE/SF: SALE PRICE/SF: INTEREST RATE: DOWN PYMT: LOAN TERM (YRS): POINTS PAID: 1979 THRU 1986 368,561 86,064 16 1 GRE CH Average WILLOW STATION SHOPPING CENTER I S AN UNANCHORED CENTER WITH FIVE SEPARATE RETAIL BUILDINGS. APPROXIMATELY 20% VACANT AT TIME OF SALE. CONFIRMED WITH NAVID SAIDI. C 4.28 $1,474,244 $65.36 $82.49 PAGE 17 CBOE_COMM_01 0 Page COMPARABLE SALE #5 ACCOUNT R2429803 PRIMARY OCC: Community Shopping Center SECONDARY OCC: THIRD OCC: ADDRESS: COUNTY: WELD PARCEL NUMBER: 080718402001, 002,003, 006, 013 PERCENT: 100% PERCENT: PERCENT: 1520, 1540, 1550, 1560 MAIN ST WINDSOR RECEPT NUMBER: 3431469 GRANTOR: NEW WINDSOR MARKETPLACE LLC GRANTEE: NSS WINDSOR HOLDINGS LLC YEAR BUILT: 2003 EFFECTIVE AGE: LAND SIZE (SF): 472,389 BLDG SIZE (SF): 96,062 WALL HEIGHT: 25 & 22 STORIES: 1 BSMNT SIZE: BSMNT FINISH: ZONING: QUALITY: Good SALE DATE: SALE PRICE: ADJ SALE PRICE: CLASS: LAND/BLDG RATIO: LAND VALUE: IMPS PRICE/SF: SALE PRICE/SF: INTEREST RATE: DOWN PYMT: LOAN TERM (YRS): POINTS PAID: 10/24/2006 $9,900,000 $9,600,000 C 4.92 $2,834,334 $70.43 $99.94 COMMENTS: NEW WINDSOR MARKETPLACE HAS 96,062 S.F. OF RETAIL SPACE. THE CENTER IS ANCHORED BY A 66,662 S.F. KING SOOPER'S STORE WITH AN ATTACHED SMALL RETAIL STRIP WING WITH 15,400 S.F.. A SECOND STANDALONE RETAIL BUILDING CONTAINS 14,000 S.F.. THE PURCHASE PRICE WAS ADJUSTED BY $300,000 FOR THE KING SOOPER SELF SERVE GAS STATION INCLUDED IN SALE. 4,200 S.F. WAS VACANT OR 4.3% AT TIME OF SALE. CONFIRMED SALE WITH NICK STUDEN JR. PAGE 18 CBOE_COMM_01 f Page 0o) 0 q 5 0 0 WI 0 0 0 COMPARATIVE SALES APPROACH M N ft,O O r O N V • 2 MW aa'a'a'rC.5 CIS m >`V I- 000 a00 ON a) V N o N O V O O a'a' CO r- 0 -N- CO i D M V O V N a Cr CY CY t L cr) - Q C L co N Y CO U 0 O 3m 0 o co CO Denver West Village 14225 W Colfax Ca 2 T a) CO r- V CO O 0)0000 N NNC)M n0 CV CO 01 U) V h CO N- O C0 V OO COQ w E O 0 m C Ca C U U a O 0 CD CD 0 0 O O O O 1 a 7 CD -o 2 N O oo o ` r O 00 3 Ica) >, o a) w U O fa 0) J • N a • M -o O O Y Ca J T a) a) a) 0 Ca a) 51 t- m m o ▪ O U N> O a a) N 0)) z!NCEc )) - a c — o o a) • woaolJ 2 a) Co (OOCDCflrCID U CD 0000)0 OD C) O O O N N N M O M r Nt M N M O I"- CO rrr N 7 M Or V O VLt CC CC CC IX I:C w J co co L Q 1' U Stevinson Family t C) a) CO Simon Property a C u_ a O October -07 CO 0 0 N 64 C O N CO Co to r CO M CO O O M CO O 0) Shopping Center O Cr) r N M C1 M O O Vcm O 'p_ a) (O 0 co- 0) o N O Co O N A- L U c" r M (n dT 0 O O O O O (0 • N O co- up 0 0 00 0 0 O CO N r v v E9 (9 a) d O 0) ... • c +. r ea G CL C C 0) 0) 12 c4 m m (7 (7 (n in Adj. Sales Price M O M 0 CO N- 01 CO 0 0 0 O N M n 0) O 0) C co a Shopping Center O S O O CO V N L 4) 0 M �- ct5 (n C 60 O n C U ;79 rn .o r 0) a) CC 0) C a � N O CD p r r CCn C O CO- cm ( °LO- CD Tr cU O N r o) N O CD 0 N 0 ▪ Y CO• R (I) CO CA C • m .0 CO J m } CC 0) co Value Per Sq Ft CO M N N- N r 0) a E U Comps Median: $103.00 - $151.68 Comps Range: $100.00 x 425,725 = Subject Value: 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 January 1, 2007 through June 30, 2008. This information, combined with statewide and industry-wid data, is used to determine typical income and expenses for various property types. In conclusion of the Income Approach, the Assessor has considered both groups of data and has pu 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 $35,289,053 Page 20 CBOE_COMM_O10! Page Capitalization Rates The overall capitalization rate was established by utilizing the Winter 2007/2008 issue of the Burbach & Associates Real Estate Investment Survey and the Korpacz Real Estate Investor Survey. The Burbach Report showed a range of stabilized cap rates from 6.5% to 8.5%. The Korpacz Report showed an average rate of 6.78%. For the purpose of this report a capitalization rate of 8.0% was chosen to be applicable for the subject property. Added to the 8.0% cap rate was an effective tax rate of 2.18% and then rounded to 10.5% . The 10.5% was reduced 2.0% to 8.5% for the land only leases. This was done because a land capitalization rates do not include a recapture rate. Recapture is the return of the portion of the investment in an asset that will waste away (be used up) during the investment period. Land does not waste away thus the 2.0% reduction it the land capitalization rate. The recapture rate was determined by dividing 1 by the expected life of the subject's building or 1/50 = 2%. Page 21 CBOE_COMM_0la Page Income Approach (Actual Income and actual vacancy) Net Operating Income Lot #1 Cap Rate Value per Income Enclosed Mall (includes Dillards) $2,874,739 10.5% $27,378,467 Land Leases $504,971 8.5% $5,940,835 Total Lot #1 $3,379,710 $33,319,302 Lot #2 Habitat (old Safeway) -$13,737 10.5% -$130,829 Main Strip Center $169,453 10.5% $1,613,838 Auto Zone Land $36,850 8.5% $433,529 Gas Station Land $4,523 8.5% $53,212 Total #2 $197,089 $1,969,751 Total Income (both lots 1- 2) $3,576,799 Total Value per the income Approachl $35,289,053 Page 22 CBOE_COMM_O1C Page CONCLUSION Real property for tax year 2009 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 cla: 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 implemented, other than additions, change in use, detrimental acts of nature, damage due to fire, et 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 consider( 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 $39,384,303 most accurately reflects the value of the subject property in Weld County for the 2009 tax year. Cost Approach Sales Comparable Approach Income Approach $39,620,811 $42,575,200 $35,289,053 Assessor's Value Land $10,375,036 Improvements $28,979,267 Total Value $39,354,303 Page 23 CBOE_COMM_01( Page osed Value Based on the Subiect's Actual Income & Vacanc Ocao a o a) c in • Y s. 0 • •O 0. 64 aS ct 3E 3 (n o us • ta aa) o > a_ CS a`O a d O 7 O C6 O a ard d O > • a 0 a� O) o o N O > H C C d • d r o> (� N > Q E a J 7 as O > O N Parcel Number $21,820,797 $29,410,736 O M O O Co U) $22,884,314 $31,558,530 O N d ' N (O W S 0 0 CO CO ER CA NI- O r U) N CO CO N CA CO r U) O M NtO O CO 0 R CO o a c. Ni 000 N Or CO o0 co CO N O W d' N • CO CF? r tib i CO 0 S S 569 � CO O N ▪ N O CO (O V N V n N O CO CO0 OD r CO (N ct00 9 CR (0 5 N S N OCO CO CO 0) COCO U) (» va (° S OC0 0 U) r CO O (O (O r CO r r N d CO N • CO. CO CO O O CO M) CO 0 N r CO CO (.O r NI: N (ci N- o o co co N r CO V3 CO S CO r f6 O (C) W CD r a r r N N N 0) O 2 O o CD 12. r (13 r C) r c6 CO rnW rn0 od $28,979,267 $39,354,303 N CO CO N d' CO 0) CO 0 (n d' (/) c(o CO co CO - ,O 5 r 69 N CO CO CO N CO CO r + r r C ON) N Cal r .. CD C.i r r CO r r C1 r CO •C O CO co o2 o -o C co co CO a) REAL AND PERSONAL PROPERTY NOTICE OF DETERMINATION Christopher M. Woodruff WELD Assessor 1400 N 17th Ave GREELEY, CO 80631 Date of Notice: 6/24/2009 Telephone: (970) 353-3845 Fax: (970) 304-6433 Office Hours: 8:00 AM - 5:00 PM SCHEDULE/ACCOUNT NO. TAX YEAR TAX AREA LEGAL DESCRIPTION/ PHYSICAL LOCATION R4473006 2009 4049 GR GM LOT 1 GREELEY MALL MINOR (IMPS ONLY PERKINS RESTAURANT 096119200057) SITUS: 2050 GREELEY MALL ST GREELEY 86310000 2050 GREELEY MALL ST GREELEY, GREELEY, CO 806310000 PROPERTY OWNER GREELEY MALL I/GKD FUND I LLC C/O GK DEVELOPMENT INC 303 EAST MAIN ST STE 201 BARRINGTON, IL 60010 PROPERTY CLASSIFICATION ASSESSOR'S VALUATION ACTUAL VALUE PRIOR TO REVIEW ACTUAL VALUE AFTER REVIEW COMMERCIAL 31,558,530 31,558,530 TOTAL $31,558,530 $31,558,530 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: LF102 - No change has been made to the valuation of this property. Colorado law requires us to send this notice of denial for all properties on which we do not adjust the value. 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. DOWNEY & MURRAY LLC 383 INVERNESS PARKWAY SUITE 300 ENGLEWOOD CO 80112 2009-1853 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, Colorado 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 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 11. 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 9`" Avenue and 9th Street, P.O. Box C Denver, CO 80203 Greeley, Colorado 80632 (303) 866-5880 Telephone (970) 356-4000 Ext. 4520 www.dola.colorado.gov/baa 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, 2008? (Your opinion of value in terms of a specific dollar amount is required for real property pursuant to § 39-8-106(1.5), C.R.S.) $ c% 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.)) ATTESTATION I, the undersigned owner or agent' of the property identified above, affirm that the statements contained her and on an attachments hereto ar true and complete. Signature Telephone Number Date 'Attach letter of authorization signed by property owner. 15-DPT-AR PR 207-08/08 NOD #: 7493 EXHIBIT "A" ATTACHMENT TO COUNTY BOARD OF EQUALIZATION PETITION OF GREELEY MALL Mall I/GKD FUND I LLC, SCHEDULE NUMBERS R4473006, R3761086 and R1044296 1. The Assessor has failed to give appropriate consideration to all the requisite approaches to valuation in determining the value of the property. 2. The current year actual value assigned by the assessor does not reflect the actual value of the subject property during the 18 month period ending June 30, 2008. 3. Upon consideration of all the approaches to value, values given to comparable land and improvements and upon consideration of the requirements of Colorado law that require that assessments be uniform, just and equitable, a reduction in the current year actual value of this property is warranted. 4. The $31,558,530 value assigned to schedule numbers R4473006 for 2009, which represents a increase of approximately 20% over the 2008 value, is excessive and should be reduced. Review of the actual income and expenses indicates of value of approximately $25,000,000. We request that the value be reduced to $25,000,000. 5. The $3,304,560 value assigned to schedule numbers R3761086 for 2009 is excessive and should be reduced. Review of the actual income and expenses indicates of value of approximately $983,000. Dillards vacated the property in May, 2008. The was 100% vacant as of the January 1, 2009 assessment date. We request that the value be reduced to $983,000. 6. The $287,600 value assigned to schedule numbers R1044296 for 2009 is excessive and should be reduced. Review of the actual income and expenses indicates of value of approximately $70,000. Pizza Hut vacated the property. The was 100% vacant as of the January 1, 2009 assessment date. We request that the value be reduced to $70,000. 7. Analysis of this property is ongoing. Further quantification of the economic obsolescence and other market factors may warrant a further reduction in the requested value. DOWNEY & MURRAY ac ATTORNEYS AT LAW July 15, 2009 VIA CERTIFIED MAIL RETURN RECEIPT REQUESTED Weld County Board of Equalization 915 10th Street P.O. Box 758 Greeley, CO 80632 Thomas E. Downey, Jr. 303 813-1111 ted(aidowneymurray.com Re: Greeley Mall I/GICD Fund I LLC Schedule numbers R4473006, R3761086 and R1044296 and Greeley GKD LLC Schedule numbers R4473206, R4473306, and R0072287 Dear Clerk to the Board: We represent the owners of the above referenced real property in Weld County. Enclosed are our Six (6) separate Petitions to the Board of Equalization appealing the denials of the owners' Protests to the County Assessor. We would appreciate your setting these three matters for consecutive hearings on the same day. I am not available for hearing on August 4th or 5th.. The Notices of Hearing on these matters should be directed to the undersigned. Petitioner, pursuant to C.R.S.§ 39-8-107(3), respectfully requests that the Assessor provide all data supporting the assessor's determination of actual value on these three appeals to the undersigned no later than two working days prior to the CBOE hearing. Thank you for your cooperation in this regard. Should you have questions, please call. TED/ss Enclosure cc: D. Lakowski Very truly yours, reyinit Thomas E. Downey, Jr. 383 Inverness Parkway ❑ Suite 300 c Englewood, Colorado 80112 '' fax 303 813-1122 UJ CC • o MN (~/1 •ON- I - m 000- •z `nU 000- •Z o ¢3o -O •awm rC a N • 0 =¢ Z W N 03 l0 G t 7009 0820 0001 4910 0445 a O u N N o W W C J N n 9 i' VD ro VD o v O v CO CO L U r n x o U O W eal b • N ul O N v—I • act 7 111 WIDc. COLORADO July 22, 2009 GREELEY MALL I/GKD FUND I LLC C/O GK DEVELOPMENT INC 303 EAST MAIN ST STE 201 BARRINGTON, IL 60010 CLERK TO THE BOARD PHONE (970) 356-4000 EXT 4226 FAX: (970) 352-0242 WEBSITE: www.co.weld.co.us 915 10TH STREET P.O. BOX 758 GREELEY, COLORADO 80632 Parcel No.: 096119218001 Account No.: R4473006 Dear Petitioner(s): The Weld County Board of Equalization has set a date of July 28, 2009, at or about the hour of 3:45 PM, to hold a hearing on your valuation for assessment. This hearing will be held at the Weld County Centennial Center, First Floor Hearing Room, 915 10th 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, 2009, and mailed to you on or before August 12, 2009. Because of the volume of cases before the Board of Equalization, all cases shall be limited to 15 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. GREELEY MALL I/GKD FUND I LLC - R4473006 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 • 4 Esther E. Gesick Deputy Clerk to the Board cc: Christopher Woodruff, Assessor DOWNEY & MURRAY LLC 383 INVERNESS PARKWAY STE 300 ENGLEWOOD, CO 80112 CLERK TO THE BOARD PHONE (970) 356-4000 EXT 4226 FAX: (970) 352-0242 WEBSITE: www.co.weld.co.us 915 10TH STREET P.O. BOX 758 GREELEY, COLORADO 80632 COLORADO July 27, 2009 GREELEY MALL IIGKD FUND I LLC C/O GK DEVELOPMENT INC 303 EAST MAIN ST STE 201 BARRINGTON, IL 60010 Parcel No.: 096119218001 Account No.: R4473006 Dear Petitioner(s): The Weld County Board of Equalization has set a date of August 5, 2009, at or about the hour of 3:30 PM, to hold a hearing on your valuation for assessment. This hearing will be held at the Weld County Centennial Center, First Floor Hearing Room, 915 10th 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, 2009, and mailed to you on or before August 12, 2009. Because of the volume of cases before the Board of Equalization, all cases shall be limited to 15 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. GREELEY MALL I/GKD FUND I LLC - R4473006 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 CC -' Esther E. Gesick Deputy Clerk to the Board cc: Christopher Woodruff, Assessor DOWNEY AND MURRAY LLC ATTN: THOMAS DOWNEY 383 INVERNESS PARKWAY STE 300 ENGLEWOOD, CO 80112 Esther Gesick From: Sent: To: Cc: Subject: Mr. Downey, Esther Gesick Friday, July 24, 2009 12:12 PM 'ted@downeymurray.com' Courtney Anaya; 'Esther Gesick, Weld County' Weld County Board of Equalization (BOE) Although I had previously sent letters indicating the Greeley Mall accounts were scheduled for July 28, 2009, at 3:45 p.m., the Assessor's Office informed me that the accounts were rescheduled to Wednesday, August 5, 2009, at 3:30-4:30 p.m., to allow additional time to review the properties. The accounts are as follows: R0072287 - Greeley GKD, LLC R4473206 - Greeley GKD, LLC R4473306 - Greeley GKD, LLC R4473006 - Greeley Mall I/GKD Fund I, LLC R3761086 - Dillards Property Tax Dept R1044296 - Preferred Income Investors LLC, dba, c/o Pizza Hut - Greeley Mall Please accept this e-mail as your notification to disregard the letters concerning a hearing on the 28th and I will follow-up with revised letters for the hearing on August 5, 2009. If you have any questions, please reply or call me at the address below. Thank you. Esther E. Gesick Deputy Clerk to the Board Weld County, Colorado 915 10th Street Greeley, CO 80631 (970)356-4000 X4226 (970)352-0242 (fax) 1 Esther Gesick From: To: Sent: Subject: Tom Downey [ted@downeymurray.com] Esther Gesick Friday, July 24, 2009 12:16 PM Read: Weld County Board of Equalization (BOE) Your message was read on Friday, July 24, 2009 12:16:06 PM (GMT -07:00) Mountain Time (US & Canada). 1 Esther Gesick From: Sent: To: Cc: Subject: Dear Ms. Gesick: Sue Schield (SS@downeymurray.com] Wednesday, August 05, 2009 9:44 AM Esther Gesick Tom Downey Requet for Administrative Denial for Greeley Mall I/GKD Fund I LLC Thank you for returning my call this morning. Pursuant to your request, this e-mail is being sent to request administrative denial for the following accounts: 1. R4473006 2. R3761086 3. R1044296. Thank you again for your assistance with regard to this matter. Sue Schield Paralegal to Thomas E. Downey, Jr. Downey & Murray LLC 383 Inverness Parkway, Suite 300 Englewood, CO 80112 Telephone: (303)813-1111 Fax: (303)813-1122 The preceding e-mail message (including any attachments) may contain information that is confidential, be protected by the attorney -client or other applicable legal privleges, or constitute non-public information. It is intended to be conveyed only to the designated recipient(s). If are not an intended recipient of this message, you are hereby notified that you may not read this message, and that any disclosure, distribution, reproduction, printing or use of any of the information contained in or attached to this message is prohibited. If you have received this message in error, please notify the sender immediately by return e-mail or by telephone and delete the original message from your system. Use, disclosure, distribution, reproduction or printing of this message by unintended recipients is not authorized and may be unlawful. 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