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HomeMy WebLinkAbout971565.tiffRESOLUTION RE: THE BOARD OF EQUALIZATION, 1997, WELD COUNTY, COLORADO - DENY PETITIONER'S APPEAL AND AFFIRM ASSESSOR'S VALUE PETITION OF: MAJORS DALE CORP 2911 GRANDVIEW DR GREELEY, CO 80631 DESCRIPTION OF PROPERTY: PIN: R0289795 PARCEL: 095914401010 - GR 3GWP1-5 L5 THRU 8 BLK1 GATEWAY PARK FILING #3 - 1ST REPLAT 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 1997, 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 1997, claiming that the property described in such petition was assessed too high, as more specifically stated in said petition, and WHEREAS, said petitioner being present, 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 $ 289,663 Improvements OR Personal Property 1,010,337 TOTAL ACTUAL VALUE $ 1.300,000 971565 AS0038 RE: BOE - MAJORS DALE CORP 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), CRS) Appeals to the BAA must be made on forms furnished by the BAA, and should be mailed or delivered within thirty (30) days of denial by the CBOE to: Board of Assessment Appeals 1313 Sherman Street, Room 523 Denver, CO 80203 Phone: 866-5880 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), CRS) 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, CRS) 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 also has the power to administer oaths, and all questions of law and fact shall be determined by him. 971565 AS0038 RE: BOE - MAJORS DALE CORP Page 3 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 31st day of July, A.D., 1997. APPROVED AS TO FORM: ty Attorney BOARD OF COUNTY COMMISSIONERS WELD OUNTY, COD/ George'E. Baxter, Chair �6onstance L. Harbert_ rP o -'T em D K EXCUSED Barbara J. Kirkmeyer W. H. Webster 9;))A; 971565 AS0038 #atel WliDc. COLORADO MAJORS DALE CORP 2911 GRANDVIEW DR GREELEY, CO 80631 NOTICE OF ADJUSTMENT GR 3GWP1-5 L5 THRU 8 BLK1 GATEWAY PARK FILING #3 - 1ST REPLAT OWNER: MAJORS DALE CORP 06/27/1997 LOG 3390 PARCEL 095914401010 ACCOUNT R0289795 YEAR 1997 OFFICE OF COUNTY ASSESSOR 1400 NORTH 17th AVE. GREELEY, CO 80631 PHONE (970) 353-3845, EXT. 3650 The appraisal value of property is based on the appropriate consideration of the approaches to value required by law. The Assessor has determined that your property should be included in the following category(ies): 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 listing 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 reasons for this defemination of value are: THE ACTUAL VALUATION OF YOUR PROPERTY HAS BEEN ADJUSTED BASED UPON THE ADDITIONAL INFORMATION YOU HAVE PROVIDED. PROPERTY CLASSIFICATION PETITIONER'S ESTIMATE OF VALUE ASSESSOR'S VALUATION ACTUAL VALUE PRIOR TO REVIEW ACTUAL VALUE AFTER REVIEW LAND IMPS 289663 1285337 289663 X37-. i tit)).5,47 �k�llfl /:y"�fl. TOTALS $ $ 1575000 $ 3iSi,.Sltae' 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. Please see the back of this form for detailed information on filing your appeal. 06/27/1997 By: 15-DPT-AR Form PR -207-87/94 WARREN L. LASELL WELD COUNTY ASSESSOR DATE ADDITIONAL INFORMATION ON REVERSE SIDE 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 5 for real property (land and buildings) and personal property (furnishings, machinery, and equipment) 39-8-104 and 39-8- 107(2), C.R.S. APPEAL PROCEDURES: If you choose to appeal the Assessor's decision you must appeal to the County Board of Equalization. To preserve your right to appeal, your appeal must be POSTMARKED OR DELIVERED ON OR BEFORE JULY 15 FOR REAL PROPERTY, AND JULY 21 FOR PERSONAL PROPERTY. WELD COUNTY BOARD OF EQUALIZATION 915 10th Street, P.O. Box 758 Greeley, Colorado 80632 Telephone (970)356-4000 Ext. 4225 NOTIFICATION OF HEARING: You will be notified of the time and place set for the hearing of your appeal. COUNTY BOARD OF EOUALIZATION'S DETERMINATION: The County Board of Equalization must make a decision on your appeal and mail you a determination within five business days. The County Board must conclude their hearings by August 5. TAXPAYER RIGHTS FOR FURTHER APPEALS: 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. District Court: 9th Avenue and 9th Street, P.O. Box C Greeley, Colorado 80632 Telephone (970) 356-4000, Ext. 4520 Arbitration: WELD COUNTY BOARD OF 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 11. 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., YOU MUST STATE YOUR OPINION OF VALUE IN TERMS OF A SPECIFIC DOLLAR AMOUNT. Attach additional documents as necessary. .1 &'a 75ovo ,P-34 ?1JL L.t•NA ,N 1995, 79/97 Co5r of gFs /DI ucs 5 TDF•A4£ - Stec %r_,s /34atty rows a V& C. a* -4? cosr wws f7ndSo r S'FluctA U A)07 2! fr4s NE0 - qT AAN.EY IMAM ry,j8/vco /21 /9? -7 C.B.O.E. HEARING DATE: TIME: SUBJECT: ADDRESS: PIN: PARCEL#: M:\WPFILES\COMMERCL\PROTESTS\GATEWAY.97 July 31, 1997 8:30 GATEWAY SELF STORAGE 2600 36TH AVENUE, GREELEY R0289795 0959-14-4-01-010 SUBJECT PHOTOGRAPHS Residence/Office Storage Units �u ulitilluurJu ,_o.:,,_„ ..... 1 GATEWAY SELF -STORAGE SUMMARY OF FACTS NAME: GATEWAY SELF -STORAGE ADDRESS: 2600 36TH AVE. GREELEY, CO LAND SIZE: 289,663 SQUARE FEET LAND PURCHASED: 06/16/95 FOR $75,000 TAX LIENS OF SALE DATE: $311,904.87 (PAID BY BUYER) LAND/BUILDING RATIO: 5.06 (TYPICAL 2.5 OR 142,900 SQ FT) EXCESS LAND: 146,763 SQUARE FEET EXCESS LAND VALUE: $146,763 GROSS BUILDING SQUARE FEET: 55,575 STORAGE UNITS 1,585 RESIDENCE/OFFICE 57,160 TOTAL NUMBER OF STORAGE UNITS: 431 BUILT: 1995 1997 ASSESSOR'S VALUE: $1,300,000 PRICE PER SQUARE FOOT: $20.18 2 COMPARABLE LAND SALES 1 SUBJECT: 2600 36th Ave. Greeley, CO Crowley/Majors ............................... ............................... ............................... DATE Off` 6-16-95 $386,905 289,663 $1.34 2 2400 W. 29th St. Greeley, CO Dayton Hudson/Iowa Land 1-20-94 $723,366 480,473 $1.51 3 7251 W. 4th St. Greeley, CO Tech. Center/EFTC 3-11-94 $250,000 222,958 $1.12 4 7251 W. 4th St. Greeley, CO Tech. Center/EFTC 5-3-94 $250,000 241,665 $1.03 5 2623 35th Ave. Greeley, CO Greeley Gateway/ James Thomas 12-8-92 $249,800 102,993 $2.43 6 2625 35th Ave. Greeley, CO Greeley Gateway & D&R Land Co./William Moreland 6-17-91 $392,000 174,031 $2.25 NOTE: SUBJECT LAND IS PRESENTLY VALUED AT $1.00 PER SQUAREFOOT 3 Subject MINI STORAGE SALES GROSS ≥UARE FEET s 57,160 PRIG SQUARE FOOT 20.18 #1 1540 Altura Blvd Aurora, CO 11/93 990,000 30,045 32.95 #2 7700 Washington St. Adams County, CO 12/93 1,400,000 59,300 23.61 #3 101 E. Main St. Windsor, Co. 09/96 470,000 19,440 24.18 #4 15413 E. 18th Ave. Aurora, CO 11/93 1,990,000 63,989 31.10 #5 6200 W. 10th St. Greeley, CO 01/95 713,265 29,939 23.83 #6 2331 Wedgewood Ave. Longmont, CO 03/95 2,000,000 53,409 37.45 #7 5929 S. College Ave. Ft. Collins, CO 03/95 2,075,000 59,000 35.17 The average for all seven comparable sales is $29.75 per square foot. 4 MARKET APPROACH SUMMARY Subject gross square feet 57,160 at $29.75 per square foot $1,700,510 Plus excess land value 146,763 Market approach value $1,847,273 Rounded To $1,847,000 SUBJECT VALUE BY THE MARKET APPROACH: $1,847,000 5 COMPARABLE SALE 1 PHOTO PIN: PARCEL #: PRIMARY OCCUPANCY: MINI STORAGE OFFICE SPACE % : 2nd OCCUPANCY: ADDRESS: PROJECT: SALE DATE: SALE PRICE: ADJ SALE PRICE: GRANTOR: GRANTEE: YEAR BLT: EFFECTIVE AGE: BLDG SIZE: CLASS: CONSTRUCTION-QUAL: WALL HEIGHT: STORIES: BSMT SIZE: LAND SIZE: LAND VALUE: REMARKS: 1540 ALTURA BLVD. AURORA SELF -STORAGE 11/23/93 $990,000 BOOK #: RECEPTION #: ALTURA STORAGE EQUITIES, LTD. LESLIE N. JOHNSON, ETAL 1978 30,045 C AVG 90,429 LAND/BLDG RATIO: IMPS PRICE/PSF SALE PRICE/PSF: CASH DOWN: LOAN: INTEREST RATE: LOAN TERM (YRS): POINTS PAID: MINI -STORAGE 29,295 SF; APARTMENT 750 SF. 309 UNITS. 6 3.01 $32.95 COMPARABLE SALE 2 PHOTO PIN: PARCEL #: PRIMARY OCCUPANCY: OFFICE SPACE % : 2nd OCCUPANCY: ADDRESS: PROJECT: SALE DATE: SALE PRICE: ADJ SALE PRICE: GRANTOR: GRANTEE: YEAR BLT: EFFECTIVE AGE: BLDG SIZE: CLASS: CONSTRUCTION-QUAL: WALL HEIGHT: STORIES: BSMT SIZE: LAND SIZE: LAND VALUE: REMARKS: MINI STORAGE 7700 WASHINGTON ST. ADAMS CO. KANGAROO SELF -STORE -IT 12/21/93 BOOK #: $1,400,000 RECEPTION #: ENGLEWOOD EXCHANGE SERVICES, LTD. LESLIE N. AND ANN S. JOHNSON 1989 59,300 C AVG 1 145,490 LAND/BLDG RATIO: IMPS PRICE/PSF SALE PRICE/PSF: CASH DOWN: LOAN: INTEREST RATE: LOAN TERM (YRS): POINTS PAID: MINI -STORAGE 58,100 SF; OFFICE/APARTMENT 1,200 SF. 324 UNITS, 7 2.45 $23.61 $470,000 COMPARABLE SALE 3 PIN#, 1498186 ADDRESS: PROJECT: SALE DATE: SALE PRICE: ADJ SALE PRICE: GRANTOR: GRANTEE: YEAR BLT: EFFECTIVE AGE: BLDG SIZE: CLASS: CONSTRUCTION-QUAL: AVG WALL HEIGHT: 8.5 STORIES: 1 BSMT SIZE: LAND SIZE: LAND VALUE: PRIMARY OCCUPANCY: OFFICE: 2ND OCCUPANCY: 101 E. MAIN ST 09/20/96 $470,000 $467,500 W.S.S., INC., RUFF, CHRISTOPHER D. & CYDNEY J. 1992 1992 19,440 S PARCEL #: MINI WHSE 1 1/2 STORY RES. REMARKS: 67,300 67,518 WINDSOR BOOK #: RECEPTION #: LAND/BLDG RATIO: IMPS PRICE/PSF: SALE PRICE/PSF: CASH DOWN: LOAN: INTEREST RATE: LOAN TERM (YRS): POINTS PAID: 80721102001 1569 2513590 3.46 $20.58 $24.05 $1,000 NEW 10.0% 20 NONE MINI WHSE, 4-BLDGS, 124 UNITS, WITH A TOTAL GROSS SQ. FT OF 17800; 1 1/2 STORY HOUSE BUILT IN 1920 WITH 1,640 SQ.FT. PLUS 1,080 SQ.FT. BSMT., TWO OLD FRAME SHEDS 11' X 19' & 14' X 30' HAVE LITTLE OR NO VALUE. 8 COMPARABLE SALE 4 PHOTO PIN: PARCEL #: PRIMARY OCCUPANCY: OFFICE SPACE % : 2nd OCCUPANCY: ADDRESS: PROJECT: SALE DATE: SALE PRICE: ADJ SALE PRICE: GRANTOR: GRANTEE: YEAR BLT: EFFECTIVE AGE: BLDG SIZE: CLASS: CONSTRUCTION-QUAL: WALL HEIGHT: STORIES: BSMT SIZE: LAND SIZE: LAND VALUE: 15413 E. 18 AVE. SELF -STORAGE 11/23/93 $1,990,000 MINI STORAGE AURORA BOOK #: RECEPTION #: LESLIE N. JOHNSON ETAL BULGROUP PROPERTIES, L. P. 1984 LAND/BLDG RATIO: IMPS PRICE/PSF 63,989 SALE PRICE/PSF: C CASH DOWN: AVG LOAN: INTEREST RATE: 1 LOAN TERM (YRS): POINTS PAID: 203,817 REMARKS: MINI -STORAGE 62,389 SF; APARTMENT 1,600 SF. 542 UNITS. 9 3.19 $31.10 COMPARABLE SALE 5 PIN: 1984786 PARCEL U: ADDRESS: PROJECT: SALE DATE: SALE PRICE: ADJ SALE PRICE: GRANTOR: GRANTEE: YEAR BLT: BLDG SIZE: CLASS: CONSTRUCTION-QUAL: WALL HEIGHT: STORIES: BSMT SIZE: LAND SIZE: LAND VALUE: REMARKS: OCCUPANCY: 6200 W 10 ST 0 01/04/95 $722,800 $713,265 CURTIS W KOEHN CECIL FARMS 1980 29,939 D AVG 9 1 0 87,120 152,460 95909100018 WHSE MINI GREELEY BOOK #: 1474 RECEPTION U: 2421751 LAND/BLDG RATIO: IMPS PRICE/PSF: SALE PRICE/PSF: CASH DOWN: LOAN: INTEREST RATE: LOAN TERM (YRS): POINTS PAID: 2.91 $18.73 $23.82 $472,800. NEW 10.3% 5 1 PROPERTY WAS ACQUIRED IN EXCHANGE FOR LIKE -- KIND PROPERTY PURSUANT TO SECTION 1031 OF THE INTERNAL REVENUE CODE. ADJUSTED PURCHASE PRICE FOR PP. MINI WHSE 28,191 SF, OFFICE 824 SF, APARTMENT 924 SF. 185 UNITS. 10 COMPARABLE SALE 6 PHOTO PIN: PARCEL #: PRIMARY OCCUPANCY: MINI STORAGE OFFICE SPACE % : 2nd OCCUPANCY: ADDRESS: PROJECT: SALE DATE: SALE PRICE: ADJ SALE PRICE: GRANTOR: GRANTEE: YEAR BLT: EFFECTIVE AGE: BLDG SIZE: CLASS: CONSTRUCTION-QUAL: WALL HEIGHT: STORIES: BSMT SIZE: .LAND SIZE: LAND VALUE: REMARKS: 2331 WEDGEWOOD AVE. LONGMONT A STORAGE DEPOT 03/16/95 $2,000,000 BOOK #: RECEPTION #: LONGMONT STORAGE, LTD. STORAGE TRUST PROPERTIES, L. P. 1984 LAND/BLDG RATIO: 2.10 IMPS PRICE/PSF 53,409 SALE PRICE/PSF: $37.45 C CASH DOWN: $1,000,000 AVG LOAN: INTEREST RATE: 1 LOAN TERM (YRS): POINTS PAID: 111,949 MINI -STORAGE 50,595 SF; OFFICE/APARTMENT 2,814 SF. 430 UNITS. 11 COMPARABLE SALE 7 PHOTO PIN: PARCEL #: PRIMARY OCCUPANCY: MINI STORAGE OFFICE SPACE % : 2nd OCCUPANCY: ADDRESS: PROJECT: SALE DATE: SALE PRICE: ADJ SALE PRICE: GRANTOR: GRANTEE: YEAR ALT: EFFECTIVE AGE: BLDG SIZE: CLASS: CONSTRUCTION-QUAL: WALL HEIGHT: STORIES: BSMT SIZE: LAND SIZE: LAND VALUE: REMARKS: 5929 S. COLLEGE AVENUE FORT COLLINS KANGAROO SELF -STORE -IT 03/20/95 $2,075,000 BOOK #: RECEPTION #: KANGAROO, LTD. STORAGE TRUST PROPERTIES, L. P. 1980 LAND/BLDG RATIO: 2.34 IMPS PRICE/PSF 59,000 SALE PRICE/PSF: $35.17 C CASH DOWN: $2,075,000 AVG LOAN: INTEREST RATE: 1 LOAN TERM (YRS): POINTS PAID: 138,283 MINI -STORAGE, 58,000 SF; OFFICE/APARTMENT, 1,000 S.F. 571 UNITS. 12 GATEWAY SELF STORAGE Potential Gross Income UNIT SIZE 5x5 NUMBER O T9 49 RENT PER NO! $25 —7::nrcOtagr $14,700 5x6 6 28 2,016 5x10 80 39 37,440 10x10 117 59 82,836 10x10 Heated - 8 75 7,200 10x15 31 69 25,668 10x20 103 79 97,644 10x20 Heated - 8 110 10,560 10x25 2 105 2,520 12x25 8 130 12,480 12x30 Heated - 7 185 15,540 15x30 Heated - 12 225 32,400 Total Units 431 Gross Income $341,004 13 INCOME CAPITALIZATION AND SUMMARY Potential Gross Less 20% Vac. & Coll. Loss (5% Typical) Effective Gross Less Estimated Expenses 25% (W/O Taxes) Net. Operating Income Capitalization Rate 11% Plus Tax Rate 2.8% Income Value Plus Excess Land (146,763 S.F.) Income Approach Value Rounded To 341,004 - 68,201 272,803 - 68,201 204,602 13.8% 1,482,623 146,763 1,629,386 1,629,000 SUBJECT VALUE ESTIMATED BY THE INCOME APPROACH: $1,629,000 14 VALUE INDICATIONS SALE COMPARISON APPROACH: INCOME APPROACH: ASSESSOR'S 1997 VALUE: 15 $1,847,000 $1,629,000 $1,300,000 CERTIFIED PUBLIC July 30, 1997 PARTNERS John C. Dollarhide Michael J. Frick Susan A. Gapter Nicholas G. Kosmicki Marcia L. Siebring To the Board of Commissioners Weld County Colorado Dear Ladies and Gentlemen: We have been asked by Dale Majors to comment on the appraisal of Gateway Self Storage by the assessors office. Generally there are three methods to use when appraising a property. They are the income method, the cost method and the comparable value method. The income method discounts the cash flow generated by the property. The cost method uses actual cost, if recently built, or replacement cost, if the property is older. The comparable value method uses recent sales of similar properties to estimate the value. It has been our experience that for property tax valuation purposes, the county assessor used the lowest of the three if all three produce a reasonable value. Since this facility is new, there are no comparable units because any other units sold would have been at or near full occupancy. To use this method would be unreasonable since a facility at or near capacity would not be comparable to a start-up business at 30% to 50% capacity. The cash flow method would produce an extremely low valuation since the units are only 30% to 50% occupied. Here we have a situation that is the other extreme, a valuation that would not represent the current value. The only reasonable basis to value the property would be cost. In this case, the cost is $1,160,000 which includes $527,000 for land and land improvements and $633,000 for the storage units. Any valuation above the $1,160,000 would be inconsistent with other business valuations and counter productive to assist new businesses to get started in Weld County. If you have any questions, we are available to answer them. Sincerely, John C. Dollarhide, C.P.A. 1901 56th Avenue / Greeley, CO 80634-2946 / 970-330-8860 / Denver 303-825-1752 / Fax 970-330-6680 REASONS FOR REQUESTING REVIEW FOR 2600 36TH AVENUE JULY 31, 1997 1. For 1996 the assessor chose to use the income method to assess this property even though the construction was not totally finished on January 1, 1996. At that time we had $71,797 in the residence and $621,712 in the storage buildings. The assessors method showed a gross income in 1996 of $341,004, a net operating income of $207,330 with an income approach value of $1,474,000. The actual gross income for 1996 was $109,718 with a net operating loss of $6,412. This of course does not include any interest or depreciation which the assessor does not count as an expense. 2. For 1997 the assessor again uses the income potential as the method of evaluation. This time he shows a potential gross income of $341,004 with a net operating income of $217,390 and with an income approach value of $1,575,000. As of June 30, 1997 our gross income is $88,986. We estimate a 1997 gross of $184,986 and a net operating income of $41,298. Again this does not include interest or depreciation but it does include $34,237 for 1996 property taxes. As you can see our property tax was almost as much as our so called net operating income. 3. I paid $75,000 for this land in 1995. Right now approximately 1/2 of it is vacant and undeveloped. Total cost of the residence completed in 1997 was $79,197 and total cost of the storage buildings including all other improvements was $704,050. THIS PROPERTY SHOULD NOT BE ASSESSED FOR MORE THAN $858,000. I feel that part of the problem here is that the assessor does not understand that storage buildings are not the same as warehouses. They cost much less than warehouse steel buildings because they are normally lower in height, they are not equipped with electricity, no plumbing, normally no heating or insulation so they cost much less to build. They should not be treated as warehouses. Current building are as follows: EZ Self Storage American King Stor Mor Westmoor evaluations for other storage facilities in the Greeley area 14,452 sf $241,382 60,327 sf $1,009,450 35,910 sf $457,409 26,340 sf $373,905 52,268 sf $1,055,918 equates to $16.70 sf equates to $16.73 sf equates to $12.73 sf equates to $14.19 sf equates to $20.20 sf (This building is constructed of more expensive block and stone) Stuff -It Secure Rite Place 16,479 sf $248,503 equates to $15.07 sf 32,300 sf $408,829 equates to $12.65 sf 40,519 sf $508,726 equates to $12.55 sf Average evaluation for buildings are: $15.10 sf WHY SHOULD OUR EVALUATION BE $23.72 PER SQ. FT? AT THE END OF 1996 OUR OCCUPANCY WAS ONLY 42%. WE DON'T EXPECT TO BE ANYWHERE NEAR CAPACITY THIS YEAR. REASONS FOR REQUESTING REVIEW FOR 2600 36TH AVENUE JULY 31, 1997 1. For 1996 the assessor chose to use the income method to assess this property even though the construction was not totally finished on January 1, 1996. At that time we had $71,797 in the residence and $621,712 in the storage buildings. The assessors method showed a gross income in 1996 of $341,004, a net operating income of $207,330 with an income approach value of $1,474,000. The actual gross income for 1996 was $109,718 with a net operating loss of $6,412. This of course does not include any interest or depreciation which the assessor does not count as an expense. 2. For 1997 the assessor again uses the income potential as the method of evaluation. This time he shows a potential gross income of $341,004 with a net operating income of $217,390 and with an income approach value of $1,575,000. As of June 30, 1997 our gross income is $88,986. We estimate a 1997 gross of $184,986 and a net operating income of $41,298. Again this does not include interest or depreciation but it does include $34,237 for 1996 property taxes. As you can see our property tax was almost as much as our so called net operating income. 3. I paid $75,000 for this land in 1995. Right now approximately 1/2 of it is vacant and undeveloped. Total cost of the residence completed in 1997 was $79,197 and total cost of the storage buildings including all other improvements was $704,050. THIS PROPERTY SHOULD NOT BE ASSESSED FOR MORE THAN $858,000. 4. I feel that part of the problem here is that the assessor does not understand that storage buildings are not the same as warehouses. They cost much less than warehouse steel buildings because they are normally lower in height, they are not equipped with electricity, no plumbing, normally no heating or insulation so they cost much less to build. They should not be treated as warehouses. 5. Current building evaluations for other storage facilities in the Greeley area are as follows: EZ Self Storage 14,452 sf $241,382 equates to $16.70 sf American 60,327 sf $1,009,450 equates to $16.73 sf King 35,910 sf $457,409 equates to $12.73 sf Stor Mor 26,340 sf $373,905 equates to $14.19 sf Westmoor 52,268 sf $1,055,918 equates to $20.20 sf (This building is constructed of more expensive block and stone) Stuff -It Secure Rite Place 16,479 sf $248,503 equates to $15.07 sf 32,300 sf $408,829 equates to $12.65 sf 40,519 sf $508,726 equates to $12.55 sf Average evaluation for buildings are: $15.10 sf WHY SHOULD OUR EVALUATION BE $23.72 PER SQ. FT? AT THE END OF 1996 OUR OCCUPANCY WAS ONLY 42%. WE DON'T EXPECT TO BE ANYWHERE NEAR CAPACITY THIS YEAR Su i.TEcT. G/47 -way mut-ICA STCAL dC 2-l58 31 AVE <06/-11,1 (Oaco w to ST 3,, 4ToctAoca. �N1� W to ST 4.. covww,otS (5)tsc 1997 pl?LcE_ ( FT- VAWE FER se. S7/60 l,/S3,-237 010,19 Cac,2-17' ?,19 ,o(3 Z',t9,4-34 7,4, 623 Z30o CO3µ, t7DD 19,403 ca l3 00� x,83 3 ti„ Wilk COLORADO July 16, 1997 MAJORS DALE CORP 2911 GRANDVIEW DR GREELEY, CO 80631 Dear Petitioner(s): CLERK TO THE BOARD PHONE (970) 356-4000 EXT.4225 FAX: (970) 352-0242 915 10TH STREET P.O. BOX 758 GREELEY, COLORADO 80632 Parcel No.: 095914401010 PIN No.: R0289795 The Weld County Board of Equalization has set a date of Thursday, July 31, 1997, at or about the hour of 8:30 a.m., to hold a hearing on your valuation for assessment. This hearing will be held at the Weld County Centennial Center, 915 10th Street, Greeley, Colorado, in the First Floor Hearing Room. A number of hearings have been scheduled at this time; peitioners will be asked to sign in with the Clerk upon arrival, and cases will be heard on a first come / first heard basis. You have a right to attend this hearing and present evidence to the Board in support of your petition. The Weld County Assessor or his representative will be present. The Board will make its decision on the basis of the record made at said 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, 1997, and mailed to you on or before August 10, 1997. Because of the volume of cases before the Board of Equalization, all cases shall be limited to 15 minutes, of which you will be allowed 10 minutes for your presentation. 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. MAJORS DALE CORP - R0289795 Page 2 At least two (2) working days prior to your hearing the Assessor will have available, at your request, the data supporting his valuation of your property. 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 Donald D. Warden, Clerk to the Board BY: Carol A. Harding Deputy Clerk to the Board cc: Warren Lasell, Assessor Hello