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HomeMy WebLinkAbout20052259.tiff RESOLUTION RE: THE BOARD OF EQUALIZATION, 2005, WELD COUNTY, COLORADO - DENY PETITIONER'S APPEAL AND AFFIRM ASSESSOR'S VALUE PETITION OF: WESTLAKE OFFICE PLAZA LLC 1814 14 AVE GREELEY, CO 80631 DESCRIPTION OF PROPERTY: ACCOUNT#: R0273493 PARCEL#: 095912300025 -GR 17538-A PT SW4 12-5-66 WESTLAKE COMMONS EASEMENT VAC&DEDICATION PLAT BEG SW COR SEC N89D55'E 680' NOD04'W 50' S89D55'W 274.68' TO TPOB S89D55'W 335.32' N45D09'W 28.14' TO E LN 35 AVE NOD14'W 229.16' TO S LN ROLLING HILLS 3RD ADD N89D53'E 355 WHEREAS, the Board of County Commissioners of Weld County, Colorado, convened as the Board of Equalization for the purpose of adjusting, equalizing, raising or lowering the assessment and valuation of real and personal property within Weld County, fixed and made by the County Assessor for the year 2005, and WHEREAS, said petition has been heard before the County Assessor and due Notice of Determination thereon has been given to the taxpayer(s), and WHEREAS, the taxpayer(s) presented a petition of appeal of the County Assessor's valuation for the year 2005, claiming that the property described in such petition was assessed too high, as more specifically stated in said petition, and WHEREAS, said petitioner being represented by Ian James, Deloitte &Touche, LLP, and WHEREAS,the Board has made its findings on the evidence,testimony and remonstrances and is now fully informed. NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld County, acting as the Weld County Board of Equalization, that the evidence presented at the hearing clearly supported the value placed upon the Petitioner's property, after review by the Weld County Assessor. Such evidence indicated the value was reasonable, equitable, and derived according to the methodologies, percentages, figures and formulas dictated to the Weld County Assessor by law. The assessment and valuation of the Weld County Assessor shall be, and hereby is, affirmed as follows: ACTUAL VALUE AS DETERMINED BY ASSESSOR Land $ 441,790 Improvements OR Personal Property 2,138,260 TOTAL $ 2,580,050 2005-2259 AS0061 pC i 4; "Er- ®8'-/4€9C RE: BOE - WESTLAKE OFFICE PLAZA LLC PAGE 2 BE IT FURTHER RESOLVED that 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 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. 2005-2259 AS0061 RE: BOE - WESTLAKE OFFICE PLAZA LLC PAGE 3 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 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. The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 5th day of August, A.D., 2005. BOARD OF COUNTY COMMISSIONERS WELD COUNTY, COLORADO ATTEST: a IE Q, a illiam H. Jerke, Chair Weld County Clerk to the :jr RI. ( �� Q -,= CUSED . J. Geile, Pro-Tem BY: _L ' t��� Deputy Clerk to the Boat � � EXCUSED Ds E. Long APPROVED AS TO FORM: Robert D. Masden 7 �ssistant�ounty Attorney i��CClLG1�� i� Glenn Va3d Date of signature: "° 2005-2259 AS0061 Weld County STANLEY F. SESSIONS COUNTY ASSESSOR CHRISTOPHER WOODRUFF, DEPUTY ASSESSOR APPRAISAL REPORT OF COMMERCIAL PROPERTY FOR County Board of Equalization WESTLAKE OFFICE PLAZA LLC PETITIONER vs. WELD COUNTY ASSESSOR'S OFFICE RESPONDENT Parcel Number: 0959-12-3-00-025 Schedule Number: R0273493 Log Number: 3857 Date: August 5, 2005 Time: 9:30 am Board: CBOE PREPARED BY STEVE MALLETT Signature Date Signature Date ASSESSOR'S OFFICE STAFF APPRAISER CBOE_COMM_010998 Page 1 SALIENT FACTS AND CONCLUSIONS Purpose of Appraisal To determine Market Value as of 1/1/05 based on an appraisal date of 6/30/04. Property Rights Appraised Unencumbered fee simple interest. Location 3459 W 20 STREET GREELEY Land Area 88,358 Square Feet Zoning Property Type Commercial 1— Office Building Year Built 1997 Year Remodeled Quality Good Class Metal Frame Number of Stories 2 Improvement Sq. Ft. 23,455 Basement Unfinished Sq. Ft. Basement Finished Sq. Ft. Mezzanine: Value Indications: Land $441,790.00 Cost Approach $2,764,901.00 Market Approach $2,580,050.00 Income Approach $2,640,300.00 Final Value $2,580,050.00 CBOE_COMM_0 10998 Page 2 COST APPROACH LAND VALUE Sales utilized to establish the value in the subject neighborhood are from 2003 and the first six months of 2004 for the 2005 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 1999 through the June of 2004 to establish the proper value, if sufficient information is not available in the prior 18 months. Also, comparables outside the subject property area may be used. The Weld County Assessor has an established ongoing sales confirmation and validation program for property transactions used in developing value. The land size of the subject is 88,358 square feet. Comparable commercial land in the subject area is valued at $6.00 Per SF per square foot. Address Sale Date Sale Price Land Size Per Sq Ft Cob Corn Bank Comparable 1 6222 9th Street, 6/12/2003 $320,835 42,778 $7.50 Greeley Renaissance II Comparable 2 4627 20th St Rd 3/15/2004 $368,000 65,848 $5.59 Greeley H2M LLC Comparable 3 2890 47th Ave 6/23/03 $1,100,000 132,554 $8.30 Greeley ASSESSOR'S LAND VALUE $5.00 X 88,358 SF = $441,790.00 CBOE_COMM_010998 Page 3 SUBJECT PHOTO r ' r • i r/I I VI ..41111111 t WI , w� r,. MI " COST APPROACH SUMMARY The Assessor is currently using Marshall and Swift cost tables for the cost approach of commercial properties in Weld County, which has been approved by the Division of Property Taxation to be utilized by Colorado Assessors. The structure has been classified properly utilizing the Marshall and Swift Valuation service and an appropriate value assigned. A land value has likewise been established through the utilization of vacant land sales of comparable properties. Improvement Value $ 2,323,111.00 Land Value $ 441,790.00 TOTAL VALUE BY THE COST APPROACH $ 2,764,901.00 CBOE COMM_010998 Page 4 MARKET APPROACH COMPARABLE OFFICE SALES # ADDRESS Grantor/Grantee Date of Sale Price Square Price Per Sale Foot Sq Ft Subject New West Bank 23,455 SF $110.00 3459 W 20th Street, Greeley 1 West Point WEST POINT Professional Bld DEVELOP/ 4/26/2004 $3,400,000 24,895 SF $136.57 910 54th Ave CLARKSON LAND Greeley 2 Peakview Point DONA INVESTMENTS 5754 W l lth St. LLC/ MLS 1/28/2004 $3,500,000 31,583 SF $110.81 Greeley PROPERTIES LLC 3 The Group ALGLO LLC/GROUP 3257 W 20th St. INC REAL ESTATE 8/1/2003 $1,370,000 11,009 SF $124.12 Greeley Average selling price for all three sales is $123.83 MARKET CALCULATIONS SUBJECT 23,455 SQ. FT. TIMES $120.00 PER SQ. FT. EQUALS $2,814,600 ROUNDED TO $2,815,000 CBOE_COMM_010998 Page 5 COMPARABLE#1 Se 1 COMPARABLE#2 4` • • _ l COMPARABLE#3 v ' ' ...! CBOE_COMM_010998 Page 6 INCOME APPROACH NEW WEST BANK/ OFFICE 3459 W 20111 STREET GREELEY, CO THE ACTUAL INCOME AND EXPENSES FOR YEAR 2004 WERE UTILIZED IN THIS ANALYSIS. TOTAL INCOME 407,831 LESS TOTAL EXPENSES WITHOUT TAXES -102,398 NET OPERATING INCOME 305,433 CAPITALIZATION RATE 8.5% PLUS TAX RATE 2.5% 11% INCOME VALUE 2,776,664 ROUNDED TO 2,776,700 CBOE_COMM_010998 Page 7 FINAL RECONCILIATION COST APPROACH MARKET APPROACH INCOME APPROACH $2,764,901.00 $2,815,000.00 $2,776,600.00 ASSESSOR'S VALUE $2,580,050.00 CBOE_COMM010998 Page 8 07,-37/05 12:00 FAX WELD ASSESSOR 1Q003 • OFFICE OF COUNTY•ASSESSOR NOTICE OF DENIAL 1400 NORTH 17th AVE. • a GR 17538—A PT SW4 12-5-66 WESTLAKE GREELEY,CO 80631 Stilt COMMONS EASEMENT VAC & DEDICATION PHONE(970)353-3645,EXT.3650 i PLAT BEG SW COR SEC N89D55'E 68O ' 34845,.wcid-co.ua � N0O04'W 5O' S89D55'W 274 .68' TO WE`Dc. 8 STODE5 335 .32' N45DO9'W 28 .14'4' TO E LN 35 AVE NODl4OD14'W OWNER: WESTLAKE OFFICE PLAZA LLC COLORADO • • WESTLAKE OFFICE PLAZA LLC LOG 3857 1814 14 AVE PARCEL O959123OOO25 ACCOUNT RO273493 GREELEY, CO 8O631 YEAR 2005 The appraised value of property is based on the appropriate consideration of the approaches to value required by law. The Assessor hbs determined that your property should be included in the following category(ies): Commercial property is valued by considering the cost; market, and income approaches. • If your concern is the amount of your property tax,local taxing authorities(county,city,fire protection,and other special districts)hold budget hearings in the fall. Please refer to your tax bill or ask your Assessor for a fisting of these districts,and plan to attend these budget hearings. The Assessor has carefully studied all available information,giving particular attention to the specifics included on your protest,and has determined the valuation(s)assigned to your property. The masons for this determination of value are: Market and income supports the assessor's value. PETITIONER'S - ASSESSOR'S VALUATION PROPERTY CLASSIFICATION ESTIMATE ACTUAL VALUE ACTUAL VALUE OF VALUE PRIOR TO REVIEW AFTER REVIEW COMMERCIAL 258OO5O 2580050 • • TOTALS $ $ 758nQFr1 $ 7FQAnGI' APPEAL DEADLINES: REAL PROPERTY—JULY 15,PERSONAL PROPERTY—JULY 20. 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.A.S. Please see the back of this form for detailed information on filing your appeal. By: Stanley F. Sessions 06/30/2005 WELD COUNTY ASSESSOR DATE ADDITIONAL INFORMATION ON REVERSE SIDE ra-rm-stm3 07/07/05 12:01 FAX WELD ASSESSOR• U005 YOU HAVE THE RIGHT TO APPEAL THE ASSESSOR' S DECISION The County Board of Equalization will sit to hear appeals beginning July 1 and continuing through August 5lior real property (land and buildings) and personal property (furnishings,machinery, and equipment). § 39-8-104 and § 39- 8-107(2),C.R.S. APPEAL m QGEJU]itES: If you choose to appeal the Assessor' s decision, mail or deliver one copy of this completed form to the County Board of ON OR BEFORE JULY 15 FOR REAL Pour ROPERht to TY Apeal,ND JUour LY 20 FOR PERSONAL almust be A PROPEERD ORY.DELIVERED WELD COUNTY BOARD OF EQUALIZATION 915 10th Street,P.O.Box 758 Greeley, Colorado 80632 Telephone(970)356-4000 Ext.4225 NOTIFICATION.OF. G; You will be notified of the time and place set for the hearing of your appeal. • COUNTY:l a -444•OPEDIIIAi AZATEI'(4N/S..DET niZl CNATIiONi The County Board of Equalization must make a decision on your appeal and mail you a determination within five business days of that decision. The County Board must conclude its hearings and render decisions by August 5. TAXPA "EJ't.'.RsIG S,FOR•FLWTHER•APPEAMS: if you are not satisfied with the County Board of Equalization's decision you must file within thirty days of the County Board of Equalization' s written decision with ONE of the following: Board of Assessment Appeals (BAA): Contact the BAA at 1313 Sherman,Room 315,Denver, Colorado 80203, (303)866-5880. www.dola.colorado.gov/baa District Court: 9th Avenue and 9th Street, P.O. Box C Greeley, Colorado 80632 Telephone(970) 3564000,Ext.4520 • Arbitration: WELD COUNTY BOARD OP EQUALIZATION 915 10th Street,P.O.Box 758 Greeley,Colorado 80632 • Telephone(970)356-4000,Ext.4225 • If you do not receive a determination from the County Board of Equalization, you must file an appeal with the Board of Assessment Appeals by September 12. TO PRESERVE YOUR APPEAL RIGHTS,YOU MUST PROVE YOU HAVE FILED A TIMELY APPEAL;THEREFORE,WE RECOMMEND ALL CORRESPONDENCE BE MAILED WITH PROOF . OF MAILING. PETITION TO THE COUNTY BOARD OF EQUALIZATION In the space below,please explain why you disagree with the Assessor's valuation. IN ACCORDANCE WITH § 39-8"-106(1.5), C.R.S., IF YOUR APPEAL INVOLVES REAL PROPERTY,YOU MUST STATE YOUR OPINION OF VALUE IN (TERMS OF A SPECIFIC DOLLAR AMOUNT. Attach additional documents as necessary. ,E `MO.sit o} X10.\yc: EN-is ,) The property is valued in excess of fair market value based on the three approaches to value; cost, market and income approaches. In addition, the property is valued in excess of other similarly situated properties. Due to s heduling conflicts, we request that a hearing be scheduled after July 24, 2005. • Ian D. James Iulynj ?005 ➢0.307-eiim • Investors Group of Companies, Inc. Ninth Street, Suite 100 iirecle, Colorado 80631 l Tel. 970.356.6699 Fax 970 353 0660 3333 Last Camelbask Road, Suite 253 „ PI Arizona 85018 Tel. 602.954.2385 Fax 602.9547086 INVESTORS' ,senors-u,a tom LETTER OF AUTHORIZATION To Whom It May Concern: Property Owner Name: Westlake Office Plaza LLC Hereby appoints and authorizes Deloitte Tax, LLP as taxpayer's representative to represent our firm's property and all property controlled by our firm or any of its subsidiaries of partnerships on all matters pertaining to the 2005 and 2006 ad valorem taxes. Until written notice of termination is issued, they have the right to file returns, examine records, obtain all tax statements, and discuss or appeal any tax assessments to the proper authorities when, in their opinion, the assessment does not constitute fair market value. In addition they have the right to file appeals to the appropriate jurisdiction, if authorized by law. By: Name: Jon ecker Title: Controller/Broker Address: 826 9th Street, Suite 100 Greeley, CO 80631 Phone Number: 970-356-6699 Property Desc: Parcel Address Assessor State R0273493 3459 W 20 ST GREELEY Weld County CO Subscribed and sworn before me this 9- day of 1/1-4,---e-1_, , s i0oS Notaf3r"8it[ilic e , sit of ' e3 CO#301 71 Mycdti. s4lbn jI`JS Westlake Office A VALUE ANALYSIS OF INVESTOR'S GROUP OF COMPANIES 3459 20th Street Plaza 3459 West 20th Street Greeley, CO 80634 SCHEDULE NUMBER: R0273493 ASSESSOR'S ACTUAL VALUE $2,580,049 TAXPAYER'S OPINION OF ACTUAL VALUE $2,090,000 Prepared by Deloitte & Touche Property Tax Services Ian James (303) 312-4041 As of January 01, 2005 2. EXHIBIT Investors Investors-3459 20th St. Pro Forma 2005.XLS.Cover kO il64-19 1 DELOITTE &TOUCHE PROPERTY TAX SERVICES VALUE SUMMARY Consultant Matt Poling D&T SA Investors Property Name 3459 20th Street Plaza Location 3459 West 20th Street Greeley, CO 80634 Property Type Bank Building Site Size (Acres) 2.0300 Site Size (SF) 88,427 Description of Improvements 0 YOC 1997 NLA (SF) 21,349 Major Tenants New West Bank; Remax; Stewart Title; Linden Bartels & Noe Age (Years) 8 Tax Account Parcel Numbers R0273493 Tax Year 2005 2005 Actual Value Land $441,790 Land/SF $5.00 Improvements $2,138,259 Improvements/SF/NLA $100.16 Personal Property $0 Total $2,580,049 Total/SF/NLA $120.85 Investors-3459 20th St. Pro Forma 2005.XLS -1- 2 OWNER'S OPINION OF VALUE Total $2,090,000 Value/SF of NLA $97.90 ASSESSED VALUE (2005) Land $441,790 Improvements 2,138,259 Personal Property 0 Total $2,580,049 Assessed Value/SF of NLA $120.85 Investors-3459 20th St. Pro Forma 2005.XLS -2- 3 INCOME CAPITALIZATION APPROACH KEY ELEMENTS Net Leasable Area (NLA) 21,349 Market Rent/SF $17.50 Market Expenses/SF $7.00 Occupancy (as of January 1) 100% Stabilized Occupancy 90% Deferred Maintenance $0 Actual Gross Rental Annual Income (2004) $406,117 Actual Expenses (2004) $156,540 Actual Net Operating Income (2004) $249,578 SUPPORT FOR EXPENSE ESTIMATION OPERATING EXPENSES/SF AVERAGE BOMA OFFICE BUILDINGS SUBJECT Less than Expense Category Alt Suburban 50,000 SF Actual 2004 Fixed Expenses $3.00 Operating Services Expense $1.12 Repair/Maintenance $0 67 Utilities $1.28 Insurance and Professional Fees $0.23 Administrative and Payroll $1.04 Tenant Improvements $0.00 Leasing Commissions $0.00 Reserves for Replacement $0.00 Total Expenses/SF $8.23 $8.30 $7.33. Investors-3459 20th St. Pro Forma 2005.XLS -3- 4 PRO FORMA Gross Annual Income $17.50 psf $373,608 Exp. Recov. $0.00 psf 0 Total Gross Annual Income $373,608 Less: Vacancy and Credit Loss 10.0% 37,361 Effective Gross Income $336,247 Less: Expenses - net of taxes or $4.00 psf 85,468 Less: Tenant Finish $ - psf 0 Less: Leasing Commissions $ - psf 0 Net Operating Income $250,779 AD VALOREM TAXES Rather than deduct taxes as an expense, the tax rate is added to the OAR. Tax rate per $100 is as follows: City 0.00% School 0.00% County and Special Districts 0.00% Tax Rate/$100 2.51% Investors-3459 20th St. Pro Forma 2005.XLS -4- 5 OVERALL CAP RATE Built-up(Mortgage Equity)Technique: Ro = M x RM + [E x RE] Ro = Overall Rate M = 0.75 M = Loan-to-value ratio RM = 0.0967 RM = Capitalization rate to mortgage constant(8.5%, 25 years, $1) RE = 0.09 RE = Capitalization rate to mortgage equity (Equity dividend) Ro = 0.0950 OAR Selected 9.50% Plus: Tax Rate 2.51% Composite Overall Capitalization Rate 12.01% Note:Long-term mortgage rate per Korpacz Real Estate Investor Survey;based upon 25-year term. SUMMARY OF INCOME CAPITALIZATION APPROACH NOI OAR = VALUE $250,779 12.01% $2,088,250 Less: Deferred Maintenance/Environmental $0 Less: Income Loss due to Lease-up $0 Value by Income Capitalization Approach Rounded to, $2,090,000 Investors-3459 20th St. Pro Forms 2005 XLS -5- 6 3459 20th Street-Greeley Offer Rate History 5 M 3 iiNg f5:v..s. .it .i1 S`fy h& f f Y d l5 .t _. 20 - 04 4Q 100.0% 2004 3Q 100.0% - - - - - _ 2004 2Q 100.0% 'r - - _ - - 20041Q 100.0% - - _ 2tG3 4Q: 100S% 2003 3L . 100:,x* 2003 2Q 100.0% !! - 20031Q: 100A% $12.67/nnn - .$12471nnn, $17_95 $1T.9ff 2002 4Q 100.0% $12.47/nnn - $12.47/nnn $17.98 - $17.98 2002 3Q 100.0% $12.47/nnn - $12.47/nnn $17.98 - $17.98 2002 2Q 79.8% $12.00/nnn - $12.00/nnn $19.70 - $19.70 Investors-3459 20th St. Pro Forma 2005.XLS -Offer Rate History- 7 DELOWTTE&TOUCHE PROPERTY TAX SERVICES r' WEIGHTED EFFECTIVE MARKET RENT ANALYSIS Base Period Leases Total Leasable Area: 21,349 Property Name: 3459 20th Street Plaza Office Leases Net Leasable Area. 21,349 Term Annual Tenant Leasing Effective Ann. Effective Tenant Start Date SF Leased (Years) Income Finish/Yr Commission/Yr Income Rate/SF Re/Max 1/4/2004 3,318 4 $ 43,134 $13.00 Weighted Averages 3,318 $ 43,134 $ - $ - - $13.00 NOTES: This average is net effective of T.I's and commissions. T .and commission amounts are amortized over tens of lease. Retail Leases Net Leasable Area: - Term Annual Tenant Leasing Effective Ann. Effective Tenant Start Date SF Leased (Years) Income Finish/Yr Commission/Yr Income Rate/SF $ $0.00 $0.00 $0.00 0 $0.00 $0.00 NOTES: This average is net effective of T.I's and commissions T.I.and commission amounts are amortized over tern of lease. Weighted Avg.Rate-Office Leases [s 13.00 I Weighted Avg.Rate-Retail Leases [s - GPI Office Leases $ 277,537 Office Rate/SF $ 1300 GPI Retail Leases $ - Retail Rate/SF $ - GPI Total $ 277,537 Overall Rate/SF $ 13.00 8 Cash Flow (Cash) Westlake Office Plaza, LLC - (Westlake) Dec 2004 Year-to-date Ending December 31, 2004 Month to Date % Year to Date % OPERATING INCOME Potential Rent 32,299.58 93.06 377,292.25 92.90 Less: Vacancies 0.00 0.00 -1,797.00 -0.44 CAM Recoveries 2,410.00 6.94 29,022.19 7.15 Utility charge-back 0.00 0.00 1,599.96 0.39 TOTAL OPERATING INCOME 34,709.58 100.00 406,117.40 100.00 NON-OPERATING INCOME Interest Income 246.73 0.71 493.38 0.12 Late and NSF Fee 0.00 0.00 1,220.18 0.30 TOTAL NON-OPER. INCOME 246.73 0.71 1,713.56 0.42 OPERATING EXPENSES RECOVERABLE EXPENSES Property Administration: Office Supplies 0.00 0.00 39.86 0.01 Property Management Fees 1,735.48 5.00 20,296.46 5.00 Telephone: Alarms 95.37 0.27 1,156.05 0.28 Total Property Administration 1,830.85 5.27 21,492.37 5.29 Utilities: Electricity 1,463.93 4.22 17,869.31 4.40 Gas 909.36 2.62 5,936.56 1.46 Water& Sewer 103.98 0.30 2,653.67 0.65 Total Utilities 2,477.27 7.14 26,459.54 6.52 Service Expense: Alarm Monitoring/Repair 0.00 0.00 885.00 0.22 Elevator Inspection & Repair 0.00 0.00 1,731.53 0.43 Extermination 0.00 0.00 938.98 0.23 Gen. Maint./Contracted Labor 0.00 0.00 593.76 0.15 HVAC Contract 0.00 0.00 858.40 0.21 Janitorial Contract 700.00 2.02 8,421.00 2.07 Janitorial Supplies 196.79 0.57 667.73 0.16 Carpet Cleaning 0.00 0.00 45.00 0.01 Landscaping and Grounds 0.00 0.00 4,353.00 1.07 Occasion Decorating 455.81 1.31 622.44 0.15 Sweeping- Parking Lot 150.00 0.43 1,800.00 0.44 Snow Removal 0.00 0.00 1,039.75 0.26 Trash Removal 98.16 0.28 1,126.17 0.28 Window Cleaning 0.00 0.00 840.00 0.21 Total Service Expense 1,600.76 4.61 23,922.76 5.89 Repair and Maintenance: Electrical Repairs 0.00 0.00 1,095.00 0.27 Electrical Supplies 0.00 0.00 78.36 0.02 HVAC Repairs 393.75 1.13 3,180.53 0.78 Page 1 3/15/2005 3:12:01 PM 9 Cash Flow (Cash) Westlake Office Plaza, LLC - (Westlake) Dec 2004 Year-to-date Ending December 31, 2004 HVAC Supplies 347.31 1.00 507.75 0.13 Light Bulbs/Fixtures 1,228.19 3.54 1,969.94 0.49 Locks and Keys 0.00 0.00 123.05 0.03 Other Exterior Repairs 0.00 0.00 656.85 0.16 Other Interior Repairs 0.00 0.00 44.49 0.01 Painting/ Drywalling 0.00 0.00 4,060.38 1.00 Plumbing Repairs 0.00 0.00 560.00 0.14 Plumbing Supplies 0.00 0.00 234.32 0.06 Roof Repairs 120.64 0.35 676.40 0.17 Total Repair and Maintenance 2,089.89 6.02 13,187.07 3.25 Taxes and Insurance: Insurance 348.75 1.00 4,859.17 1.20 Taxes - Real Estate 2,475.24 7.13 63,975.24 15.75 Total Taxes and Insurance 2,823.99 8.14 68,834.41 16.95 TOTAL RECOVERABLE EXPENSES 10,822.76 31.18 153,896.15 37.89 NON-RECOVERABLE EXPENSES Property Administration: Advertising & Promotion 0.00 0.00 123.90 0.03 Bank Charges 2.00 0.01 22.00 0.01 Legal & Accounting 0.00 0.00 525.00 0.13 Total Property Administration 2.00 0.01 670.90 0.17 Utilities: Gas 104.51 0.30 813.35 0.20 Total Utilities 104.51 0.30 813.35 0.20 Repair and Maintenance: Light Bulbs/ Fixtures 0.00 0.00 53.41 0.01 Signage 0.00 0.00 1,081.39 0.27 Total Repair and Maintenance 0.00 0.00 1,134.80 0.28 Taxes and Insurance: Other Taxes & Licenses 0.00 0.00 25.00 0.01 Total Taxes & Insurance 0.00 0.00 25.00 0.01 TOTAL NON-RECOVERABLE EXP. 106.51 0.31 2,644.05 0.65 TOTAL OPERATING EXPENSES 10,929.27 31.49 156,540.20 38.55 NET OPERATING INCOME 23,780.31 68.51 249,577.20 61.45 NON-OPERATING EXPENSES Lease Commissions 0.00 0.00 8,192.50 2.02 Meals and Entertainment 113.20 0.33 1,666.22 0.41 TOTAL NON-OPERATING EXP. 113.20 0.33 9,858.72 2.43 NET INCOME 23,913.84 68.90 241,432.04 59.45 Page 2 3/15/2005 3:12:01 PM 10 Cash Flow (Cash) Westlake Office Plaza, LLC - (Westlake) Dec 2004 Year-to-date Ending December 31, 2004 ADJUSTMENTS Escrow-Tax -1,127.73 3,625.62 Prepaid Insurance 348.75 -4,206.78 Building Improvements 0.00 -7,188.82 Tenant Improvements 0.00 -21,567.00 Security Deposits 0.00 4,700.50 Accrued Property Tax 2,475.24 2,912.32 Owner Draw -23,800.00 -242,810.00 TOTAL ADJUSTMENTS -22,103.74 -264,534.16 CASH FLOW 1,810.10 -23,102.12 Beginning Cash -1,809.24 Ending Balance 0.86 Page 3 3/15/2005 3:12:01 PM 11 Rent Roll Westlake Office Plaza July 1, 2004 Rentable Lease Leased Suite Name Sq.Ft. Rent Rent/sq Deposit From To 112 North American Title 2,173- $ 2,897.33 $ 16.00 $ - 07/01/02 06/30/05 113 REMAX First Assoc. 3,318 3,594.50 13.00 4,700.50 01/15/04 01/14/08 114/112A New West Banks of Colorado 4,693 6,843.96 17.50 7,528.35 08/01/02 01/31/13 115 Edward D. Jones & Co. 1,222 1,400.00 13.75 - 10/01/99 09/30/04 222 Stewart Title 3,154 4,468.17 17.00 4,599.58 06/01/98 05/31/06 223-A-C,F-G Waterfield Financial Corp. 1,665 2,150.00 15.50 - 04/15/00 10/14/04 223-D-E Leading Edge Financial Group 441 624.75 17.00 661.50 11/01/01 10/31/06 224 Linden/Bartels & Noe 5,458 7,959.58 17.50 - 01/01/98 12/31/05 Roof Cricket 1,250.00 2,000.00 10/01/01 09/30/06 Total 22,124 $ 31,188.29 $ 16.92 $ 19,489.93 Total Occupied 22,124 $ 31,188.29 $ 16.92 Occupied 100.00% Total Vacant 0 %Vacant 0.00% 12 Cash Flow (Cash) Westlake Office Plaza, LLC - (Westlake) Dec 2003 Year-to-date Ending December 31, 2003 Month to Date % Year to Date OPERATING INCOME Potential Rent 31,374.42 109.65 388,863.59 100.43 Less: Vacancies -4,335.00 -15.15 -18,054.00 -4.66 CAM Recoveries 906.00 3.17 11,277.07 2.91 Storage Space Rent 0.00 0.00 300.00 0.08 Utility charge-back 666.70 2.33 4,823.51 1.25 TOTAL OPERATING INCOME 28,612.12 100.00 387,210.17 100.00 NON-OPERATING INCOME Interest Income 43.08 0.15 323.23 0.08 TOTAL NON-OPER. INCOME 43.08 0.15 323.23 0.08 OPERATING EXPENSES RECOVERABLE EXPENSES Property Administration: Other Professional Services 0.00 0.00 250.00 0.06 Property Management Fees 1,430.61 5.00 19,360.51 5.00 Telephone: Alarms 97.54 0.34 1,079.04 0.28 Total Property Administration 1,528.15 5.34 20,689.55 5.34 Utilities: Electricity 810.21 2.83 10,490.18 2.71 Gas 284.22 0.99 1,932.35 0.50 Water & Sewer 117.34 0.41 2,839.59 0.73 Total Utilities 1,211.77 4.24 15,262.12 3.94 Service Expense: Alarm Monitoring/Repair 0.00 0.00 285.00 0.07 Elevator Inspection & Repair 0.00 0.00 1,599.66 0.41 Gen. Maint./Contracted Labor 26.00 0.09 988.97 0.26 HVAC Contract 0.00 0.00 429.20 0.11 Janitorial Contract 700.00 2.45 8,637.00 2.23 Janitorial Supplies 95.60 0.33 1,151.60 0.30 Carpet Cleaning 0.00 0.00 60.00 0.02 Landscaping and Grounds 1,290.00 4.51 1,884.32 0.49 Sweeping - Parking Lot 150.00 0.52 780.00 0.20 Snow Removal 696.21 2.43 1,001.21 0.26 Trash Removal 90.60 0.32 1,098.79 0.28 Window Cleaning 0.00 0.00 410.00 0.11 Total Service Expense 3,048.41 10.65 18,325.75 4.73 Repair and Maintenance: Electrical Repairs 0.00 0.00 370.00 0.10 Electrical Supplies 0.00 0.00 763.12 0.20 HVAC Repairs 429.20 1.50 1,012.45 0.26 Locks and Keys 0.00 0.00 808.48 0.21 Plumbing Repairs 300.00 1.05 800.00 0.21 Page 1 3/15/2005 3:13:36 PM 13 Cash Flow (Cash) Westlake Office Plaza, LLC - (Westlake) Dec 2003 Year-to-date Ending December 31, 2003 Plumbing Supplies 192.73 0.67 546.50 0.14 Roof Repairs 0.00 0.00 493.04 0.13 Total Repair and Maintenance 921.93 3.22 4,793.59 1.24 Taxes and Insurance: Insurance 370.38 1.29 4,444.56 1.15 Taxes - Real Estate 5,103.65 17.84 61,062.92 15.77 Total Taxes and Insurance 5,474.03 19.13 65,507.48 16.92 TOTAL RECOVERABLE EXPENSES 12,184.29 42.58 124,578.49 32.17 NON-RECOVERABLE EXPENSES Property Administration: Bank Charges 0.00 0.00 20.00 0.01 Legal &Accounting 0.00 0.00 500.00 0.13 Total Property Administration 0.00 0.00 520.00 0.13 Utilities: Electricity 1,094.55 3.83 11,830.87 3.06 Gas 723.87 2.53 3,275.38 0.85 Total Utilities 1,818.42 6.36 15,106.25 3.90 Repair and Maintenance: HVAC Repairs 0.00 0.00 429.20 0.11 Signage 0.00 0.00 81.43 0.02 Total Repair and Maintenance 0.00 0.00 510.63 0.13 Taxes and Insurance: Other Taxes & Licenses 0.00 0.00 25.00 0.01 Total Taxes & Insurance 0.00 0.00 25.00 0.01 TOTAL NON-RECOVERABLE EXP. 1,818.42 6.36 16,161.88 4.17 TOTAL OPERATING EXPENSES 14,002.71 48.94 140,740.37 36.35 NET OPERATING INCOME 14,609.41 51.06 246,469.80 63.65 NON-OPERATING EXPENSES Lease Commissions 0.00 0.00 20,753.00 5.36 Meals and Entertainment 47.21 0.17 112.37 0.03 TOTAL NON-OPERATING EXP. 47.21 0.17 20,865.37 5.39 NET INCOME 14,605.28 51.05 225,927.66 58.35 ADJUSTMENTS Escrow- Tax -5,043.08 -5,588.75 Prepaid Insurance 370.38 4,444.56 Tenant Improvements 0.00 -24,209.00 Security Deposits 0.00 12,127.93 Accrued Property Tax 5,103.65 6,328.44 Page 2 3/15/2005 3:13:36 PM 14 Cash Flow (Cash) Westlake Office Plaza, LLC - (Westlake) Dec 2003 Year-to-date Ending December 31, 2003 Owner Draw 199,050.00 0.00 Prior Years Draw -199,050.00 -199,050.00 TOTAL ADJUSTMENTS 430.95 -205,946.82 CASH FLOW 15,036.23 19,980.84 Beginning Cash 8,066.75 Ending Balance 23,102.98 Page 3 3/15/2005 3:13:36 PM 15 Rent Roll Westlake Office Plaza July 1, 2003 Rentable Lease Leased Suite Name Sq.Ft. Rent Rent/sq Deposit From To 112 North American Title 2,173 $ 2,897.33 $ 16.00 $ - 07/01/02 06/30/05 112-A New West Banks of Colorado 946 1,340.17 17.00 - 08/01/02 01/31/13 113 State Farm Insurance 3,060 4,590.00 18.00 - 09/01/97 08/31/03 114 New West Banks of Colorado 3,747 5,308.25 17.00 7,528.35 08/01/02 01/31/13 115 Edward D. Jones & Co. 1,222 1,400.00 13.75 - 10/01/99 09/30/04 222 Stewart Title 3,154 4,336.75 16.50 4,599.58 06/01/98 05/31/06 223-A-C,F-G Waterfield Financial Corp. 1,665 2,150.00 15.50 - 04/15/00 10/14/04 223-D-E Leading Edge Financial Group 441 606.38 16.50 661.50 11/01/01 10/31/06 224 Linden /Bartels& Noe 5,458 7,732.17 17.00 - 01/01/98 12/31/05 Roof Cricket 1,250.00 2,000.00 10/01/01 09/30/06 Total 21,866 $ 31,611.05 $17.35 $ 14,789.43 Total Occupied 21,866 $ 31,611.05 $ 17.35 % Occupied 100.00% Total Vacant 0 %Vacant 0.00% 16 • t a. 1N C. 1: h - O e O — z o co ° tA T tg '0 I 11 W x x C g G a 3 0,96 .9 A 6 iN ci s I 1 0 T A ,, d lot. et ✓ t 4 &FRS* *seaFece ce,� be 6e ***bete sReeiteR� �telette EReR6RERgt II+g$eRvr n '/� cF 00000 00000 OO it v) O 00000 00 Oo 00 O OOv1OO O O ♦ t V, N 2 ^0'6-+(4 IN. -' -.h.Ju 0 O N-N.-.O OOOHr .._-4(.4 tR An '�O O•Z •1p g up . is gt„,,N wW V I U5 B e(2 �+ '� o ve)hv6j*o **VP* oh NseeeeRee 0000Be *twice* eetivflebe tl2�Be Bete �IReRg ElA u '. 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P.,,SIog o4'nnn o? 3 E� a-in g b o0.' .:000.-. e,mo,o:a o,0000 o.r ,o y w o 1 2 q M . 41 E co Uri; $ o O 0 V ° N 11 i 44 i 'd 111] UI a hJd . . ate w i k Ian th iS � 3 g ; g ›.1 hi al Ili >3 22 A Investors Group of Companies, Inc. 826 Ninth Street, Suite 100 Brokerage Greeley. Colorado 80631 Tel- 970.356.6699 Management Fax 970.353 0660 . " - tiny 3333 East Cael back P.oad,Suite 253 rnantI g Phoenix,ArizonaCm 85018 Tel. 602.954.2385 1 a�in.uloti Fax 602.954.7086 Os-e,op in tent I N V E S TO R S" www_tnvestors-usa.corn LETTER OF AUTHORIZATION To Whom It May Concern: Property Owner Name: Westlake Office Plaza LLC Hereby appoints and authorizes Deloitte Tax,LLP as taxpayer's representative to represent our firm's property and all property controlled by our firm or any of its subsidiaries of partnerships on all matters pertaining to the 2005 and 2006 ad valorem taxes. Until written notice of termination is issued, they have the right to file returns, examine records, obtain all tax statements, and discuss or appeal any tax assessments to the proper authorities when, in their opinion, the assessment does not constitute fair market value. In addition they have the right to file appeals to the appropriate jurisdiction, if authorized by law. By: Name: Jon 7 ecker Title: Controller/Broker Address: 826 9'h Street, Suite 100 Greeley, CO 80631 Phone Number: 970-356-6699 Property Desc: Parcel Address Assessor State R0273493 3459 W 20 ST GREELEY Weld County CO Subscribed and sworn before me this g _day of 1i' -c-iC , moos Not .BC' State of Co ;vf LQ • My s41bn yr—,rtet^or Westlake Office 23 CLERK TO THE BOARD PHONE (970)356-4000 EXT 4217 FAX: (970)352-0242 WEBSITE: www.co.weld.co.us I 91510TH STREET WI D P.O. BOX 758 C. GREELEY, COLORADO 80632 COLORADO July 20, 2005 WESTLAKE OFFICE PLAZA LLC 1814 14 AVE GREELEY CO 80631 Parcel No.: 095912300025 Account No.: R0273493 Dear Petitioner(s): The Weld County Board of Equalization has set a date of August 5, 2005, at or about the hour of 9:30 AM,to hold a hearing on your valuation for assessment. This hearing will be held at the Weld County Department of Planning Services, Conference Room, 918 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 5,2005,and mailed to you on or before August 12, 2005. 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 request it directly from the Assessor's Office by fax (970) 304-6433, or by calling (970) 353-3845. Upon receipt of your 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. WESTLAKE OFFICE PLAZA LLC - R0273493 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 p OF O EQUALIZATION Lh il.,t1 Donald D. Warden Clerk to the Board cc: Stanley Sessions, Assessor DELOITTE & TOUCHE LLP 555 SEVENTEENTH STREET SUITE 3600 DENVER CO 802023942 Hello