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Home My WebLink About20241215.tiffRESOLUTION RE: APPROVE, IN -PART, PETITION FOR ABATEMENT OR REFUND OF TAXES FOR ACCOUNT NUMBER R8959229 - R K B, INC. WHEREAS, the Board of County Commissioners of Weld County, Colorado, pursuant to Colorado statute and the Weld County Home Rule Charter, is vested with the authority of administering the affairs of Weld County, Colorado, and WHEREAS, the Board of County Commissioners of Weld County, State of Colorado, were presented with a Petition for Abatement or Refund of Taxes for Account Number R8959229 at a duly and lawfully called regular meeting held on the 15th day of May, 2024, at which meeting there were present the following members: Chair Kevin D. Ross, and Commissioners Perry L. Buck, Scott K. James, and Lori Saine, with Commissioner Mike Freeman not being present, and WHEREAS, notice of such meeting and an opportunity to be present has been given to the taxpayer and the Assessor of said County, with said Assessor, Brenda Dones, being present, and taxpayer, R K B, Inc., being represented by DYCO Diversified, Inc., not being present, and WHEREAS, the Board of County Commissioners has carefully considered the attached petition and is fully advised in relation thereto. NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld County, Colorado, that the Board concurs with the recommendation of the Assessor and the petition be, and hereby is, approved, in -part, and an abatement or refund be allowed as follows: CORRECTION TO ASSESSED VALUATION ABATEMENT OR REFUND TAX YEAR $3,515,400.00 $17,664.44 2023 c,G: art, l A-? L -Rep dtA9,zi i1-} t'4 L DS M 11K I JX) 124 l.r1Z1 2024-1215 AS0117 TAX ABATEMENT PETITION - R K B, INC. PAGE 2 The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 15th day of May, A.D., 2024. BOARD OF COUNTY COMMISSIONERS WELD COUNTY, COADO ATTEST: Weld County Clerk to the Board tit &tin -a Deputy Clerk to the Board APP' •VEI £ S ..+ FORM: ounty ttorney Date of signature: qzO Kevi. oss, Chair Perry L. Buc ro-Tem EXCUSED MikeiFreeman cott K. James Saine 2024-1215 AS0117 Section I: Petitioner, please complete Section I only. Date: February 20, 2024 Month Day Year Petitioner's Name: R K B INC Petitioner's Mailing Address: 120 LAURA WAY Dacono PETITION FOR ABATEMENT OR REFUND OF TAXES County: Weld Date Received /eCa-aeZ,ZD/Z.DZ`1 (Use Assessor's or Commissioners' Date Stamp,', ECEPV APR 722 4024 WELL Coiffi ( MMiittioNEiR% CO 80514-5046 City or Town State Zip Code SCHEDULE OR PARCEL NUMBER(S) PROPERTY ADDRESS OR LEGAL DESCRIPTION OF PROPERTY R8959229 120 LAURA CT, Dacono, CO RECEIVED JUN 20 2024 UNTY ASSESSOR FOREELEY, COLORADO Petitioner requests an abatement or refund of the appropriate taxes and states that the t es assessed against the above property for the property tax year 2023 are incorrect for the foil 'ng r sons: (Briefly describe why the taxes have been levied erroneously or illegally, whether due to erroneoup ralu n, irregularity in levying, clerical error, or overvaluation. Attach additional sheets if necessary.) 0 (/r_ Please see the attached value report Petitioner's estimate of value: $ $9, b00,1) va 0 (2023 ) Year I declare, under penalty of perjury in the second degree, that this petition, together with any accompanying exhibits or statements, has been prepared or examined by me, and to the best of my knowledge, information, and belief, is true, correct, and complete. Petitioner's Sign re Daytime Phone Number (303.81.6805 By Daytime Phone Number Agent's Signature' 'Letter of agency must be attached when petition is submitted by an agent. If the Board of County Commissioners, pursuant to § 39-10-114(1), C.R.S., or the Properly Tax Administrator, pursuant to § 39-2-116, C.R.S., denies the petition for refund or abatement of taxes in whole or in part, the Petitioner may appeal to the Board of Assessment Appeals pursuant to the provisions of § 39-2-125, C.R.S., within thirty days of the entry of any such decision, § 39-10-114.5(1), C.R.S. Section II: Assessor's Recommendation (For Assessor's Use Only) Tax Year 2023 Actual Assessed Adjusted Actual Original $13,028,310 (512,998,310) $3,626,530 Corrected $12,630,000 ($12,600,000) $3,515,400 Tax $576,447.82 $558,783.38 Abate/Refund $398,310 $111,130 1 $17,664.44 x❑ Assessor recommends approval as outlined above. If the request for abatement is based upon the grounds of overvaluation, no abatement or refund of taxes shall be made if an objection or protest to such valuation has been filed and a Notice of Determination has been mailed to the taxpayer, § 39-10-114(1)(a)(I)(D), C.R.S. Tax year: Protest? ❑ No ❑ Yes Ill a protest was filed, please attach a copy of the NOD.) ❑ Assessor recommends denial for the following reason(s): After further review of approaches to value a reduction was indicated. Assessor's or Deputy Assessor's Signature 15-DPT-AR No. 920-66/11 FOR ASSESSORS AND COUNTY COMMISSIONERS USE ONLY (Section III or Section IV must be completed) Every petition for abatement or refund filed pursuant to § 39-10-114, C.R.S. shall be acted upon pursuant to the prov1;17971 sions of this section by the Board of County Commissioners or the Assessor, as appropriate, within six months of the date of fling such petition, § 39-1-113(1.7), C.R.S. Section III: Written Mutual Agreement of Assessor and Petitioner (Only for abatements up to $10,000) The Corlttnissioners of County authorize the Assessor by Resolution No. to review)letitions for abatement or refund and to settle by written mutual agreement any such petition for abatement or refund in an amount of $10,000 or less per tract, parcel, or lot of land or per schedule of personal property, in accordance with § 39-1-113(1.5), C.R.S. The Assessor and Petitioner mutually agree to the values and tax abatement/refund of: Actual Tax Year Assessed Original Corrected Abate/Refund Tax Note: The total tax amount does not include accrued interest, penalties, and fees associated with late and/or delinquent tax payments, if applicable. Please contact the County Treasurer for full payment information. Petitioner's Signature Assessor's or Deputy Assessor's Signature Date Date Section Iv: Decision of the County Commissioners (Must be completed if Section 111 does not apply) WHEREAS, the County Commissioners of County, State of Colorado, at a duly and lawfully called regular meeting held on / / , at which meeting there were present the following members: Month Day Year with notice of such meeting and an opportunity to be present having been given to the Petitioner and the Assessor of said County and Assessor (being present —not present) and Name Petitioner (being present --not present), and WHEREAS, the said Name County Commissioners have carefully considered the within petition, and are fully advised in relation thereto, NOW BE IT RESOLVED that the Board (agrees --does not agree) with the recommendation of the Assessor, and that the petition be (approved --approved in rtenied) with an abatement/refund as follows: ao�3 7 �O Year Assessed Value (aoejcsconesrv'1 Chairperson of the Board of County Commissioners' Signature County Clerk and Ex -Officio Clerk of the Board of County Commissioners in and for the aforementioned county, do hereby certify that the above and foregoing order is truly copied from the record of the proceedings of the Board of County Commissioners. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of said County this day of Month Year County Clerk's or Deputy County Clerk's Signature Note: Abatements greater than 510,000 per schedule, per year, must be submitted in duplicate to the Property Tax Administrator for review. Section V: Action of the Property Tax Administrator (For all abatements greater than $10,000) eThe ction of the Board of County Commis i.oner �ative t• this petition, is hereby Approved ❑ Approved in part $ i _ ❑ De ' for the f.1 ing reason(s): Secretary's '• ign ture Prop y Tax Administrator's Signature 15-DPT-AR No. 920-66/ �-y TAX APPEAL LETTER OF AGENCY Date Name of Property Owner or Entity: Address of Property Owner or Entity: Name of agent authorized to pursue property tax valuations for Owner:_ Address of Agent: Telephone Number of Agent Email Address of Agent: 11/17/23 RKB Inc. 120 Laura Court, Dacono, CO Mark Dyson 795 McIntyre Street, Suite 205, Golden, CO 303-810-6805 mdyson9/dvcodiv.com Property Owner/Entity hereby gives authority to person or entity listed above to pursue property tax appeals and abatements for the property referenced below. If Property Owner is an entity, the person whose signature appears below hereby verifies that he/she has the authority to act on behalf of the entity. This agency is for the specific tax year(s): 2023 This agency is for the specified property : 120 Laura Court, Dacono, CO If Property Owner an Entity: Signatory's Name: (print) Signatory's Position: Address of Signatory: Telephone Number of Signatory:_ Email Address of Signatory: ignature of Prope y Owner John Cook Managing Partner 120 Laura Court, Dacono, CO 80514 888.376.2419 cking@i25ford.com 2024 Interstate Ford 120 Laura Court, Dacono, CO Weld County Account R8959229 2023 PETITION FOR ABATEMENT PREPARED BY MARK DYSON, AGENT DYCO DIVERSIFIED INC. I 795 McIntyre Street, Suite 205, Golden, CO 80401 Diversified, Inc 795 McIntyre Street, Suite 205 Golden, CO 80401 303-810-6805 mdyson@dycodiv.com February 20, 2024 Weld County Board of County Commissioners 1400 North 17th Avenue Greeley, CO 80631 RE: Petition for abatement of 2023 taxes on The auth dealership property at 120 Laura Court, Dacono, CO County Accounts R8959229 Dear County Board of Commissioners: This report is part of the petition for abatement of taxes for the referenced property, a 4 —year old, auto dealership comprised of a 53751 -square foot building (as of the statutory physical condition date) on a 9.596 -acre site. Aerial and Streetview pictures follow in the report. There is no "auto row" area at this location, but the property is visible to Interstate Highway 25. The subject property is currently in USE as the Interstate Ford (auto) dealership. There have been no recent sales of the real estate or going concern. This report contains a Cost Approach supplemented by a cursory Sales Comparison Approach, revealing that the property faces not only physical deterioration but also external obsolescence. The concluded value in this report is lower than the Assessor's because it includes all forms of accrued depreciation. I contend this more nuanced valuation reasoning using deductive and inductive reasoning is necessary to accurately reflect the property's worth. Economic obsolescence in auto dealerships results in fewer sales per dealership and is partly caused by higher interest rates, but more importantly the changing competitive landscape. Stock price drops for publicly traded auto dealerships show the market perception of these economic changes and so are lower. In the end, people no longer buy automobile dealership going concerns based on past revenue, but on the future. Uncertainty that historic sales models can continue has created far greater risk to buyers. Economic obsolescence is explained in greater detail within this report. The attached report stipulates to the Assessor's replacement cost new and physical deterioration for the referenced property notice of value (NOV), but amends the Assessor's estimate of value down with the addition of economic obsolescence. With all forms of deterioration and obsolescence deducted from the Assessor's NOV value estimate, my opinion of the subject property value, as of June 30, 2022, is as follows: 2023 Petition for Abatement 120 Laura Court, Dacono, CO February 20, 2024 2'Page As Is Land and Improvements Nine Million Six Hundred Thousand Dollars $9,600,000 As a Colorado license real estate broker I note this report can be construed to a broker opinion of value (BOV) and so it cannot be used for obtaining financing. Qualifications I am a licensed and certified general appraiser, member of the Appraisal Institute, a licensed independent real estate broker -associate and a member of the Commercial Investment Real Estate Institute. I also buy and sell commercial real estate suitable for repurposing, lease -up and sale, including a 100 -year old automobile dealership still owned by me and an example of functional and external obsolescence completely changing highest and best use of a special purpose property. This report is a valuation consulting service outside of my appraisal practice relying on knowledge gained from all of my real estate experience and professional education. Consulting services are defined in Colorado Revised Statute (CRS) § 12-10-602 and page 6-5, Item 5, Chapter 6 of the Colorado Appraiser Regulations. They allow "advocacy in regard to property tax assessments and appeals thereof". In this instance, I am acting as an advocate for the owner of the referenced real estate. The Code of Colorado Regulations published by the Division of Real Estate requires the following statements be found in a consulting service valuation report: 1. A contingent fee is being paid 2. The Licensee is performing a consulting service and not an independent appraisal, and 3. The attainment of a stipulated result is not subject to compliance with USPAP. CONTENTS Qualifications 2 Subject Property 4 Auto Dealership Obsolescence 5 Functional Obsolescence 5 Economic Obsolescence (AKA External Obsolescence) 17 Valuation 26 Cost Approach 27 Sales Comparison Approach 28 Reconciliation 32 Addenda 1. Resume 2023 Petition for Abatement 120 Laura Court. Dacono. CO February 20. 2024 41Page Subject Property The subject property description in the County Assessors records is detailed and I rely on it for building sizes. The property is located in the northeast quadrant of Interstate Highway 25 (I-25) and State Highway 52 and has unobstructed visibility to I-25. The masonry exterior and steel frame structure was completed in approximately 2018. Size of the structure is approximately 53.751 square feet (SF). Condition and function of the improvements are good. Pictures of the property are below. _:.. ►- r -+Q dril i[ raga :ear 2023 Petition for Abatement 120 Laura Court, Dacono, CO February 20, 2024 5lPage Auto Dealership Obsolescence Auto dealerships are special purpose, limited use real estate designed and built for that dealership to generate revenue for returns to the real estate, intangible asset (aka blue sky), and moveable equipment. The Appraisal of Real Estate published by the Appraisal Institute says dealership real estate is mostly "structures with unique designs, special construction materials, or layouts that restrict their functional utility to the use for which they were originally built. These properties usually have limited conversion potential". Bradley R. Carter, MAI, in his second edition book A Guide to Appraising Automobile Dealerships' states "To develop a credible valuation, the appraiser must not only understand the intricacies of this specialized property type, but also have some familiarity with the automotive industry and trends that affect the property at which vehicles are sold". He devotes numerous sections of the book to deterioration directly (functional obsolescence due to reimaging) and indirectly (economic obsolescence due to changing economics of a dealership). Note that throughout this report the word Dealer refers to the individual or entity that owns the franchise granted at no charge by the automobile manufacturer commonly known as the original equipment manufacturer (OEM). The operating entity is usually another related but legally separate entity. A Dealership is the entire going concern or business enterprise/entity encompassing the real estate, personal property, inventory and intangible value. Dealership property is the real estate. As specialized real estate, dealership property should be analyzed for the existence of functional and economic obsolescence. These forms of deterioration are often misunderstood and measured by individuals without auto industry knowledge using Marshall Valuation Service (MVS) deterioration tables or a simple straight line method. These are effectively known as age -life deterioration methods and often apply a useful life of 30 to 40 years. Not only do these methods inadequately account for the difference in short and long lived component physical deterioration, but as will be discussed in the following section, the OEM forced reimaging reduces useful lives of long lived property components well below normal time. Lastly, a traditional age/life method of estimating deterioration can also significantly understate economic obsolescence. Economic obsolescence is driven by market conditions that cannot be alleviated with physical changes to the property, but is believed temporary. Functional Obsolescence Functional obsolescence causing deterioration is the "Difference between the existing improvements and what would have been built to reflect current tastes and standards", says Bradley R. Carter, MAI'. Functional obsolescence for dealership property comes in two forms, curable and incurable. As previously mentioned, OEMs periodically require a change in building finish and building layouts including additions of service bays, and this is curable. Incurable functional deterioration is infeasible to repair (cost exceeds value added or change is physically impossible) and often associated with dealership property that may have once been new car dealerships but now the site location (arguably "incurable external" obsolescence) and/or size, building design, or site configuration are unsuitable to OEM's. Auto dealerships are like any other real estate dependent franchise business, e.g., hotels and restaurants, where Bradley R. Carter, MAI, "A Guide to Appraising Automobile Dealerships," Appraisal Institute, p. 2 2 Ibid, p. 82 2023 Petition for Abatement 120 Laura Court, Dacono, CO February 20, 2024 Wage the associated franchisors, in this case the OEM, is what makes the property top tier and valuable. By reimaging when required by the OEM, the OEM license is retained and both real estate and intangible assets share in a portion of the blue sky value. Arguably, the quality of the associated OEM is what creates value over and above a vacant dealership property. Without the reimaging expenditure to cure functional obsolescence the dealership may lose its OEM license/franchise and become a second tier, used car sales property. When buying the auto dealership going concern the purchaser must comply with the OEM/franchisor product improvement plan (PIP) or not be approved for the franchise. In his 2000 article, "Appraising Auto Dealership Facilities,"3 Charles E.Tholen, ASA, addresses current tastes and standards when presenting a detailed description of typical physical requirements at that time for dealerships based on their anticipated sales volume. When asked in a 2014 interview if these requirements were still appropriate, Tholen responded, "Today, the manufacturers want all their dealerships to have a similar look, just like McDonalds." Consequently, although the dealership real estate is not fully physically depreciated, portions of it have shortened useful life to accommodate reimaqinq of the brand. Re -imaging is primarily a lodging and auto industry term meaning remodeling or renovation. Inspectors sent by manufacturers review property physical conditions and design compliance of the dealership. For example, GM sends their inspectors every five years. Required changes can be as simple as updating/changing the color scheme and signage, but are often more costly, and can include new finishes and real estate design changes that require demolition and additions to the real estate. Reimaging typically impacts the interior and exterior of the sales, reception, and customer waiting area and office area. There are corporate guidelines from everything from site layout, floor plans, site and building signage, and entrance configuration and design. To be redundant, the property owner must meet corporate standards for building enhancements and/or expansions, regardless if the existing building improvements are still contributing value. Consumer and investor behavior normally encourages owners of most types of real estate to keep their properties modern and up-to-date, but renovation done at the direction of an auto OEM is more direct and not always consistent with rational real estate investment. The OEMs have significant leverage to make franchisee's incur the cost to reimage. These include 1) franchise license cancelation, 2) withholding of approval for franchise transfer in a business sale, 3) exercising of right of first refusal for purchase of the real estate; 4) a hold back of the most sought-after vehicle models, and 5) a reduction of incentive monies and rewards for them. Several examples exist throughout the nation of dealer non-compliance having negative impact .Heitz Chevrolet in the article below one such example. The dealer had built his store in a Bass Pro Shops type motif and would not change, only to be forced into selling to someone who would make changes. 3 Charles E. Tholen, ASA, "Appraising Auto Dealership Facilities," Valuation2000 Papers and Proceedings, p. 81. 2023 Petition for abatement 120 Laura Court. Dacono, CO February 20, 2024 7Ir'age AUTO FINANCE .1. Marc Heitz Won't Conform, Sells Dealership December 27, 2012 • by Staff • in Before - Heitz Chevrolet After - Stanley Chevrolet aut: Atilt dEgOB•07 NORMAN, Okla. — Marc Heitz Chevrolet is now David Stanley Chevrolet, ending a 12 -year run for the operation, a four-year run at the dealership's current location. The reason: "It had to do with incentive monies and being eligible for rewards within the company," Heitz told The Norman Transcript. TQhe company Heitz referred to was General Motors, which required that the dealer change the facade and interior of his store to comply with its facilities standards. Not conforming meant the dealer could not collect quarterly funds related to the company's Essential Brand Elements program, an initiative kicked GM kicked off in 2010 to get dealers to remodel their dealerships in three years. 2023 Petition for Abatement 120 Laura Court. Dacono. CO February 20, 2024 81 Page Whether voluntary or leveraged by the OEM, compliance is a significant financial burden. Dealers should create a reserve for replacement. reducing their annual cash flow, but more often simply borrow when construction is required. In the sale-leasek ack world, dealers set their contractual rental rate with consideration of the future rent multiple relative to EBITDAR knowing they will borrow money for image compliance construction reducing available EBITDAR to pay rent and so real estate value. Similar to flagged hotels and national franchise restaurant transactions the buyer of a going concern will want to know when the last frarchisor/OEM required renovation was done, estimate the date and cost of the next reimage and adjust their pricing accordingly. The OEM is contacted for franchise transfer approval and provides insight into timing of the next reimage. Construction of the new image typically costs dealerships millions of dollars every 10 to 15 years. High costs are attributable to modern, unique design of high grade finish to create a perception of quality product and services and hopefully brand Icyalty. The following pages pictures contain examples of reimaging projects and cost summaries for several of them. Len Lyall Chevrolet 14500 E Colfax Ave, Aurora, CO Reimaging Examples & Costs Most Recent Image(s) Prior Image(s) Flatirons Subaru 5995 Arapahoe Ave, Boulder, CO DI/Dal"l1177 a t of fain — E r !n addition to exterior renovation_ OEM :au' required .addition nge. &.' chathese areas ~' Reimaging Examples & Costs Most Recent Image(s) Prior Image(s) Mike Maroone Chevrolet North 1570 Auto Mall Loop, Colorado Springs, CO Reimaging Examples & Costs Rustom 1212 NE 122" Nissan Ave, Portland, OR t• 9 , - .1 r; •IrOci 71I _ !Iit', •- �r® Sin 1 .� in_ I,.v._ "YE• CI 4 ..ja _ , -Ai* 4)10 rill, M - - - '- - - - _ . -- - _Pilt" Rustom Nissan -After Renovation Rustom Nissan - Before Renovation Cost Summary Project Timeline Cost (Hard only provided by Dealer) Planet 15601 Golden, W Hyundai Colfax CO Ave, Built OEM OEM OEM new required required required in 1986 reimage rebrand reimage as a to done Honda 2001 Hyundai (15 2024 dealership yrs). 2014 (+another (+another 10 13 yrs). yrs) Original 2001 2014 2023 reimage rebrand reimage cost unknown cost & budget reimage $1,165,469 $6.5 cost million $1,195,275 ($1,989,646 (2022-2023 ($1,524,486 - 2022 dollars) dollars — 2.5% — 2022 dollars inflation — 3% rate). inflation). Len 14500 Aurora. Lyall E CO Chevrolet Colfax Ave,Latest Built new OEM in 1977 required as Chevrolet reimage done dealership 2009 Original 2009 Reimage reimage cost expected and cost older was reimage $2,000,000 again in next campaigns ($2,937,067 2 or 3 unknown years. - 2022 dollars — 3% inflation rate) Flatirons 5995 Boulder, Arapahoe Subaru CO Ave, Built OEM Latest new required OEM in 1988 required reimage as a Subaru 2000 reimage and (+12 done Acura dealership yrs) 2023(+13 yrs) 2000 cost and 2022-2023 reimage of enclosed $2.000,000 reimage was service 9 required ($3,443,143 drive cost $6.5 on by the Acura - million(2022-2023 2022 north but dollars upgrades end of the — 2.5% dollars). were building. inflation made ) to the rate). It entire included building at a new a Fisher 6025 Boulder, Arapahoe Honda CO -Acura Ave. Built OEM OEM new Honda Acura in 1986 required required as q co reimage rebrand/reimage -brand g2016/2017 dealership 2016/20170 2019/2020 with Honda Original 2019/2020 cost reimage reimage/rebrand and older cost reimage was cost $1.4 campaigns million $2.25 ($1,771,447- million unknown ($2.6 million, 2022-2023 2022-2023 dollars dollars - 4 /o inflation) -5% infl.) 2023 Petition for Abatement 120 Laura Court, Dacono, CO February 16, 2024 15IPage The prior summary of reimaging events shows this OEM required event occurring every 10 to 15 years. OEM's often have minor reimage campaign every 5 years, but Colorado's franchise laws restrict any required reimaging to no more than once every 10 years. OEMs can apply pressure to make them happen earlier, but ultimately Dealers decide if they will make interim changes. The 10 to 15 year reimage costs are anywhere from $1.5 to $2 million while the significant reimage after 34 and 40 years, respectively, were $6.5 million each. Before incentives and rewards programs to dealers, this shows average cost to cure functional deterioration of less significant building features at approximately $140,000 every year ($1.75 million / 12.5 years) for a total of $1.75 million. OEMs often recognize reimaging is not always rational from a real estate investment perspective and so provide other business incentives to offset some of the costs, but not all. The following survey specifically addresses market treatment of reimaging costs. Richard "Rik" Lipscomb, owner of Lipscomb Autoworld (6 dealerships across Texas and Oklahoma and Joey Huang, owner of Great Lakes Automotive Group (11 dealerships across Ohio tell me the manufacturer incentives reduce actual reimage costs by 25 to 30%, to a cost that would have been spent without all the OEM required "bells and whistles". Lee Payne owner of three Colorado dealerships indicates 30 to 40% recovery is resonable, unless the OEM is Toyota or Honda then it is zero. Bradley R. Carter, MAI, in his second edition book A Guide to Appraising Automobile Dealerships indicates these incentives are attributable to the dealership's intangible or blue sky value and not the real estate. Hence, this approximately 30% recovery of cost is not considered in analysis of real estate only. Survey of Automotive Contact Industry Brokers, Buyers Experience and Sellers Comments Kevin Hill Managing Director, Haig Partners, Automotive business sales — Seller Representation Haig Partners is a national firm specializing in automotive going concern sales. They have been involved in the purchase or sale of more than 545+ dealerships nationwide with transaction value of $9.70B. "Reimade compliance is one of the top three questions buyers ask and so is one of Haigs when taking a listing to sell a dealership business and real estate." "We counsel sellers to ask the OEM for an estimate of what reimage changes must occur in the near future and get a cost estimate". "Total return on the business matters, including the cost of real estate." "Although OEMs make image changes every 5 to 6 years, most state franchise laws restrict changes to no more than one every 10 years." 2023 Petition for Abatement 120 Laura Court, Dacono, CO February 20, 2024 16IPage Contact Experience Comments Ned Hennessey Vice NNN Pro, Vice President,utomotive Group Nreal estate sales - Seller Representation One of five top producing, automotive, net lease (via sale- leaseback) broker in the nation Previously VP with Ascension where he was part of the Automotive Investments group "Status of image compliance matters to buyers unless the dealership/tenant is exceptional, which is rare". Image compliance matters because of potential to negatively impact future rent multiplier. "Five to 6 -year reimages are less concerning as those campaigns are minor". "Ten-year campaigns are more expensive." "Luxury brands find lack of compliance detrimental to P&L (inventory from OEM less desirable and incentives drop". "Non -compliant dealership cannot reach $100 million in gross sales" Richard "Rik" Lipscomb Lipscomb Autoworld Owner, dealerships across Texas and (6Oklahoma including Chrysler, Dodge, Jeep, Ram, Chevrolet, Buick and FordGM Has been a new car dealer for 16 years. Purchased three dealerships in 2023, all in Oklahoma. When purchasing the dealerships image compliance was a concern. "The OEM may not grant transfer of the dealer license if reimaging is necessary. That was not the case in this instance as one was relatively new construction and the other two in Elk City, OK had had complete showroom renovations." However, "if the Zone Manager had wanted the buildings changed, the price would have gone down", said Rik. Joey Huang Owner, Great Lakes Automotive Group (11 dealerships including Kia, Toyota, Honda, Infiniti and Hyundai) Past Chairman, Ohio Automotive Dealers Association Past three years has purchased several dealerships including two existing Hyundai locations and one vacant dealership for a temporary Genesis dealership location. This 1970s built dealership property will become a body shop rather than try to reimage. Constructed a new Hyundai dealership in 2005 and recently had to reimage Going forward Mr. Huang will only buy dealerships with no need for a near term reimaginq. Reimaging is not only expensive but frustrating as the OEM is very exacting on design and final construction. Mr Huang states "higher interest rates have put pressure on financed auto purchases and driven up costs of doing business, making dealership sellers more willing to negotiate price based on pending reimage expense". Bought 2900 Morse Rd and 2441 Billingsley Rd, Columbus, OH from same seller. Both in midst of reimage construction. Price was reduced by costs remaining. 2023 Petition for Abatement 120 Laura Court, Dacono, CO February 20, 2024 17IPage Contact Experience Comments Dan Hartmann Retired after 32 years as SVP, Regional Manager rsstate), Comerica, National Dealer Services group — Auto dealer lender Also worked for 3 years at Capital Automotive (CARS) in acquisitions Comerica is one of largest, franchise auto dealer business and real estate lenders. Finance inventory, real estate acquisitions, new construction and reimage construction "Image compliance impacts business and real estate value", says Dan. And, "compliance sale", that iggers aof dealership mes sale", is, "Lots ec ouse th dealership sell because the cost to reimage is so great" says Dan. He also states about OEMs that "it is their 'bat and ball' and you gotta play by their rules". Greg Feduke Retire auto dealership owner Owned dealership for approximately 30 years. Had to reimage every 10 to 15 years at an average cost of $1.5 million. Thinks sale price of Feduke Ford in Vestal, NY, would have been higher had a recent reimage been done. Conclusion — Functional Obsolescence Due to Reimaging As of January 1, 2023, the subject property is 4 years old and in image compliance. Buyers would have no leverage for deducting the future reimaging cost, regardless of the declining auto dealership market (see Economic Obsolescence). Economic Obsolescence (AKA External Obsolescence) Like the changing demand for office space due to societal acceptance of the hybrid work environment, or the diminished viability and closure of regional malls due to on-line shopping, the auto retailing industry is undergoing business changes driven by technology that impacts real estate. Retail business models for auto dealerships are evolving to be in line with mobility trends and customer behaviors. The New York Times article "At Car Lots, the Best Deal May Be the Real Estate" indicates "Stereotypical visions of endless rows of cars festooned with colorful plastic flags and inflatable skydancers nodding in the breeze will give way to a smaller footprint for sales and more room for maintenance and electric vehicle charging infrastructure, said Inga Maurer, a senior partner and auto expert at McKinsey & Company". Now customers expect information at their fingertips and effortless shopping around the clock, instant or swift delivery, and tailored products and services. The difference may not be as pronounced as the following four pictures show, but automotive brands must now manage more direct -to -consumer communications, online buying and omni-channel experiences. Examples of these changes include Tesla, Rivan and the Volvo (aka Polestar) electric vehicles (EV) circumventing state franchise laws prohibiting direct manufacturer -to -consumer sales by having "galleries" or "showrooms" and no dealer networks. Purchasing is now direct from the OEM. Moreover, in March, 2021, Volvo announced that its entire fleet would be electric by 2030, just six years from now, and sales of its EVs would be online only. This will mean production can better meet consumer demand and Volvo dealership real estate requirements will change, shrinking the need for large lots to hold inventory. Existing dealership sites will be super -adequate and vehicle numbers sold by the dealers will drop. They will still provide maintenance. Another change to dealership profits is increased used car competition. Many certified used car companies have entered the market and includes names such as Carvana, Shift, Echo Park, and Vroom allowing digital vehicle 2023 Petition for Aoatement 120 Laura Court, C acono, CO February 20, 2024 18I Page purchases and delivery. Other changes to the auto sales industry directly reducing used vehicle profits are the growing third -party digital channels for research, e.g., Autotrader, CarGurus, Cars.com, and TrueCar, making pricing more transparent. Many on- line data sources lad already squeezed profit out of new auto sales. . Evolution of the auto dealership business model and its subsequent real estate design has been on -going for the entire time vehicles have been widely available to the public. The following pictures show some of the changes. The first pictures are a building at 1156 Broadway and the second 1000 Broadway. NEW HOME o Alin:AMBat SALES CORPURAlIon ...,Thist.O.1511, rrro-•••••••0- I ititR:/n:*Jt*:- - - SS1aVairacjacr Denver's "automobile row" of south Broadway included numerous multi -story buildings built in the 1920s like the Studebaker building built in 1921 and the Cullen -Thompson Chrysler dealership in 1926. Auto sales were at grade, with various quick services on the 2nd floors and more significant overhall pits on the 3rd floors. 1156 is now repurposed into Howard Lorton Galleries and 1000 Broadway is best known as the Gart Bros. Sports Castle. 1000 Broadway ill IIJ' let eansar •. 2023 Petition for Abatement 120 Laura Court, Dacono, CO February 20, 2024 19' Page 7$ A rendering of a General Motors dealership, depicted in GM's 1948 guide, Planning Automobile Dealership Properties. A car vending machine in Houston. 2023 Petition for Abatement 120 Laura Court, Dacono, CO February 20, 2024 201 Page Maruti Suzuki mobile showroom. Photo courtesy of Maruti Suzuki A mobile showroom These current and future changes in OEM direct sales, as well as the addition of used car sellers in an already highly fragmented market influenced by thousands of small and mid -sized private companies results in decreasing dealer profits. Evicence of this is the following chart of new and used dealer's common stock underperforming the market average. The Kerrigan Index is "Comprised of seven publically traded auto retail companies with operations focused on the US market, including CarMax; AutoNation, Penske Automotive Group, Lithia Motors, Group 1 Automotive; Asbury Automotive Group and Sonic Automotive. The Kerrigan Index TM is weighted by the market capitalization of each company and benchmarked at 100 on 1/3/2000. The following table shows that in 2022 most dealers' company values declined. Kerrigan cites the sources of problems include "used car prices; interest rates, inventory levels and macroeconomic concerns coming together to depress expectations for future profitability as evidenced by the significant declines in public auto retailers' stock prices". Long term data shows a peak in pricing/index in December 2021 followed by a drop to a low in September 2022 and partial recovery in 2023. Ticker Company 12/30/2022 12/30/2022 2022 Stock Market Change Price Cap. KMX CarMax $60.89 $9.6_6 -54 42 PAG Penske Automotive Group S114.93 58.196 -2.38% LAD Lithia & Driveway $204.74 $5.60B -37.75% AN AutoNation $107.30 55.32B -30.54% ABG Asbury Automotive Group $179.25 33.9; 6 -0 72 GPI Group 1 Automotive 5180.37 52.63B -25.57% SAH Sonic Automotive $49.27 $1.80B -11.66% 1/3/2000 12/29/2023 A Monday, October 10, 2022 The Kerrigan Index` 717.56 S&P 500 (rebased) 247.81 2010 2015 2020 igan Index'' S&P 500 (rebased) 2023 Petition for Abatement 120 Laura Court, Dacono. CO February 20, 2024 21 Wage "Last year's new vehicle sales in the U.S. were the worst in more than a decade" and "Automakers are hoping 2022 will mark a bottom for the market' said NBC about 2021 vehicle sales. This drop in sales is seen in the following graph as well as the longer term trend since 2016. Statista's sale report includes even more current data and shows "The U.S. auto industry sold nearly 2.86 million cars in 2022. That year, total car and light truck sales were approximately 13.75 million in the United States. U.S. vehicle sales peaked in 2016 at roughly 17.5 million units." So despite optimism in at year-end 2021 things got worse. Not only was the introduction of many new competitors with different methods of selling new cars increasingly problematic to dealership profit. but the market was also shrinking due to societal shifts in response to rampant inflation in urban housing cost. Fewer two -car households now exist as urban households are finding alternative transportation including more reliance on Uber. Lyft and car sharing and private auto owners offering daily or hourly leasing services. Annual sales volumes for U.S. autos 18M un -s 16M 14M 12M 10M i i 2023 14.8M units Projected 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 Note: Data for 2022 is an estimate, and data for 2023 is a projection. Shaded areas indicate recessions. Chart: Gabriel Cortes / CNBC Source: Edmunds Change in nationa sales trends are also reflected in Colorado Front Range dealerships shown on the following pages. Most show a long term downward trend in sales with many having dramatic drops in vehicles sold from 2020 to 2022 and movement to stabilization in 2023. Dealers tell me the recent vehicle sales amounts are the new norm until the Federal Reserve reduces interest rates. The two Mike Ward dealerships' sales (compiled in the following chart) at Lucent Boulevard sales volume showing a 21% decline in three years to year-end 2022, and 34% in four years to year-end 2023. 2023 Petition for Abatement 120 Laura Court, Dacono. CO February 20, 2024 22I -"age Mike Ward's Two Dealerships' Vehicles Sales Combined .411110 Mike Ward Dealerships' Vehicle Sales 2 500 2 300 2197 • . .. 2158 • -0 2100 O v 1900 .0 > 1700 1500 1300 2018 2019 2206 2020 2021 2022 Year 1979 1735 —i-- Total Vehicle saes Linear (Total Vehicle Sales) 1449 2023 Both Mike Ward dealerships sell luxury vehicles and so this market evidence could be construed as what occurs with a product of great demand elasticity, i.e., luxury items after a pandemic incited recession. However, the following Planet Honda, Flatirons Subaru. Interstate Ford and Christopher Dodge sales charts shows the decline impacts them too. Planet Honda Vehicles Sales The graph below shows an approximately 30% decline between 2018 and 2022. Vehicle Sales 1400 1300 1200 1100 1000 900 800 700 Planet Honda Vehicle Sales 1285 2018 2019 2020 2021 2022 Year • —•— New Vehicle Sales Linear (New Vehicle Sales) 2023 Petition for Abatement 120 Laura Court, Dacono, Co February 20, 2024 231°age Flatirons Subaru Vehicles Sales The graph below shows an approximately 8% decline between 2018 and 2022; 15% from 2020 to 2022, and a long term trend since 2013 of 50% down. Flatirons Subaru Vehicle Sales 4000 3500 33.05 VI 3000 c Ln a' 2500 i y > 2000 1500 1000 3609 3154 3139 '• 2925 2661 2124 970 2008•.,, 2031 1811 1828 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Year se-- New Vehicle Sales Linear (New Vehicle Sales) Elway Chevrolet Vehicles Sales The graph below shows an approximately 30% decline from 2018 and 2022; stability from 2020 to 2022, and a long term trend since 2016 of 45% down. -o O U_ CU 3100 2900 2700 2500 2300 2100 1900 1700 1500 Elway Chevrolet Vehicle Sales 3099 2905 2475 2393 715 -'••..,1714 1715 2016 2017 2018 2019 2020 2021 2022 Year 2023 Petition for Abatement 120 Laura Court, Dacono, CO February 20, 2024 241 age Christopher Dodge Vehicles Sales The graph below shows an approximately 56% decline between 2018 and 2022; and a 52% from 2020 to 2022 indicating about 25% per year. Things appear to have stabilized in 2023. Christopher Dodge Vehicle Sales 2381 2400 2200 2000 v 1800 v 1600 v 1400 1200 1000 800 600 2018 2019 2020 2021 2022 2023 Year --4—Total Vehicles Sold Linear (Total Vehicles Sold) Interstate Ford Vehicles Sales The graph below shows an approximately 24% decline over the two years between 2020 and 2022; and 27% from 2020 to 2023. The dealership had it first full year of sales at the new location in 2020, so any prior sales figures are for a different dea ership property. Interstate Ford Vehicle Sales 2,5OO 2,405 2,300 0 v) 2,100 a u .E 1,900 a) 1,700 1,500 2020 2021 Year 2022 —4-- Total Vehicle Sales Linear (Total Vehicle Sales) 2023 2023 Petition for Abatement 120 Laura Court, Dacono, CO February 20, 2024 25IPage Economic obsolescence causing external deterioration has usually been temporary existing until the automotive market recovers It is generally not a permanent discount to the real estate like a location outside of an auto -row or a single family residence built next to a rail crossing or airport runway Economic Obsolescence Measured Vehicle Sales - The prior charts shows vehicle sales have stabilized after dropping at the rate of approximately 7 5 (Planet Hyundai) to 7 7% (Mike Ward) per year for the three to four years through 2022 Flatirons Subaru shows anywhere from 2°/,. to 7 5% per year depending upon the time frame, with the most recent two years relating to the statutory valuation period being 7 5% per year Interstate Ford is at approximately 12% per year and Christopher Dodge the highest at 25% per annum for the past few years Elway Chevrolet shows a 30% decline in that time period, although the past two years appear to have possibly stabilized In this regard, Elway is an outlier for short term trend, but not the long term Generally, the majority of dealership sales have dropped about 25% in the past two to three years New competition and rising automobile loan interest rates are to blame Assuming vehicle sales numbers are nearly stable, the interest rates drop and demand for vehicles returns three years from June 2022 to near 2018-2020 amounts, short term economic obsolescence is 22 5 to 231% (3 years x 7 5% and 7 7%/yr), say 23% Rates of Return - Another method for measuring economic obsolescence is the change in investor require returns Described by some as a lease fee concern, the change in capitalization rates for sale/leaseback transactions by automotive REITs does directly impact the fee ownership of auto dealership real property Sale -leasebacks by dealers to REITs is how they maintain control of desirable franchise locations while pulling out cash to buy or build their next dealership If dealers cannot free up cash, the demand and values of fee simple auto dealerships and their real estate goes down A chart of change's in automotive REIT capitalization rates is not available I interviewed Dan Garces, COO and former SVP and Director of Acquisitions for the Capital Automotive REIT This is the largest Automotive REIT with $4 5 billion in dealership real estate owned across 37 states encompassing 255 dealerships He states that "capitalization rates for automotive sale leasebacks have risen 100 to 150 basis points in the past 24 months" (January 2022 to January 2024) due to the increase in borrowing costs and economic uncertainty Using 125 basis points, this is tantamount to a 20% drop in the real estate valuations or a 10% drop per year Ned Hennessey, VP in one of the top dealership sales groups (sells sale -leasebacks to REITS and institutional investors) and one of five brokers specializing in them across the nation, says capitalization rates have "gone up 100 BPs (basis points) in the past 24 months" The result is a 14% reduction in real estate value or 7% drop per As a further test, (interviewed Cole Surrett of Northmarq, who represented Realty Income Corporation in the purchase of a net leased Mercedes dealership at 18122 Rockside Road in Bedford, Ohio He solely works the net lease markets and believes actions by the Federal Reserve increased capitalization rates at least 50 basis points by mid -year 2022 (Fed Rate at 0 08% in January 2022, increasing to 1 21% in June 2022) from the beginning of 2022 Given the Mercedes dealership sold at a 7% capitalization rate, a 50 basis point increase in that capitalization rate Would reduce value/price 7% Changes in required rates of return show annual drops in value from 7 to 10% per year Using 8 5% and 3 years to restoration of prior interest rates (see following Colliers International chart) This indicates total economic obsolescence of 25 5% (3 years x 8 5%/yr), rounded to 26% Conclusion 2023 Petition for Abatement 120 Laura Court, Dacono, CO February 20, 2024 26page The drop in vehicle sales shows a 7.5 to 7.7% annual reduction while change in required rates of return for automotive dealership real estate shows 8.5°/0/year. Giving most weight to the drop in vehicle sales I correlate to external deteriorat on due to economic obsolescence at 8% per year for a total of 24% (3 years x 8%/yr). Fed Target Rate Prediction 5.75% 5.00% 4.75% 3.75% 3.50% Presented by Jeremy Thornton, EVP. Debt & Equity. Colliers International Overall, a changir g method of marketing, more competitors,. and arguably a shrinking market, are resulting in fewer sales per dealer. The traditional dealer network and their business models are and will be experiencing significant changes impacting their real estate. The reduction in profitability is the primary source of external obsolescence of their real estate and is also supported by changes in net lease capitalization rates and borrowing rates (auto purchase loans and cost to do business) that are rising as the Federal Reserve pushes rates higher and economic uncertainty grows. Economic fluctuations and industry marketing changes due to technology significantly impact automotive sales. creating volatility in dealership values as well as their associated real estate on the date of statutory value. Valuation Appraisal of any spacial purpose property is challenging and auto dealerships are among the most difficult. In his survey of auto dealership appraisal users. Bradley R. Carter, MAI, who wrote A Guide to Appraising Automobile Dealerships4 asked "Do you believe that most appraisers who accept automobile dealership property appraisal assignments are qualified to handle this specialized property type"? "The most common response to this question was `maybe', and tr e next most popular answer was `no'. Pricing or valuation of auto dealership property is theoretically possible by Cost; Sales Comparison and Income Approaches. In this instance, the Sales Comparison and Income approaches are weakened by absence of reliable data. Sales Comparison is useful to show an investment market exits and at what price points, but no more. Income Approach is completely excluded as confidential operating data from dealerships is not readily available. 4 I bid, p. 1 2023 Petition for Abatement 120 Laura Court, Dacono, CO February 20, 2024 271 Page This report uses the Cost Approach as the primary valuation method with the Sales Comparison Approach only as support for a market. Cost Approach The County's reproduction cost new and physical deterioration estimate used for the NOV is reasonable and stipulate to part of it. However. the value disregards the total accrued deterioration. Economic obsolescence is neither estimated nor deducted.. yet market data shows it exists. This case was discussed with Harold McCloud, senior instructor of the Appraisal Institute; Beta Tester for Marshall Valuation Service and past instructor of the Cost Approach to the Colorado Association of Tax Assessors (CATA). Regarding economic obsolescence, McCloud stated "Additionally. the age/life method does not consider periodic changing market conditions (economic obsolescence) that may require contract negotiations in the form of a short- term rent adjustment due to the symbiotic relationship of a tenant occupied property. As an example: retail tenants are often given rent relief by property owners for various reasons such as down markets or operational factors in order to retain building occupancy rather than absorb rent loss due to vacant over an extended period of time and operational expense, (carrying costs). plus lease up costs including brokerage fees and tenant finish. It should be noted that economic obsolescence is never assumed in perpetuity." Auto dealerships are also like retail tenants. When their sales go down they make less money resulting in lower going concern value and less return and value for all of its components including real estate. McCloud believes the Breakdown Method is the best method to use for property experiencing all forms of depreciation/obsolescence in material amounts and an abbreviated form follows. It is abbreviated because this valuation stipulates to the County's reproduction cost new and physical deterioration used for the NOV. As previously discussed, there is no functional deterioration attributable to reimaging expense. However. there is economic obsolescence tied to the pandemic accelerated changes in vehicle retailing as well as the drop in volume of nationwide vehicle sales as well as sales per dealer. The following is a summary of each depreciation amount with numeic estimates of each previously discussed. Economic obsolescence attributable to lower vehicle sales numbers will also be built into the purchase price of the auto dealership. Calculations are below. Depreciation Rate/Yr Years Total Functional NA NA NA NA External 8% 3 $13,028,310 x 26% $3,387,360 Total Obsolescence $3;387,360 2023 Petition for Abatement 120 Laura Court, Dacono, CO February 20, 2024 28page Deducting these additional forms of obsolescence from the NOV value, the amended value is summarized below. Depreciation Rate/Yr Years Total Age/Life Method Depreciated Value (Land and Improvements) Per Assessor $13,028,310 Functional Obsolescence $0 External Obsolescence (Impacts land & improvements) $3,387,360 Total Estimated Depreciation $3,387,360 Cost Approach Amended Value $9,640,950 Rounded (Prop. sales show to nearest hundred thousand) $9,600,000 My opinion of the subject property value using the Cost Approach, as of June 30, 2022, is as follows: As Is Land and Improvements Nine Million Six Hundred Thousand Dollars $9,600,000 Sales Comparison Approach Economic trends mentioned earlier and the subsequent industry uncertainty are reflected in the number of dealership sale nationwide. Costar sales data for auto dealerships greater than 20,000 SF of building area and occurring since January 2020 is shown in the following graphs. The overall trend is down except for a fourth quarter exception in 2023 when a regionally large automotive group with multiple dealerships was sold. 2023 Petition for Abatement 120 Laura Court, Dacono, CO February 20, 2024 29 'Page Sales Volume $400M $350M $300M $250M $200M $150M $100M S50M SO 2022 O2 S194,384,309 20 21 22 23 a Like valuation of full, extended stay and limited service hotels. another special purpose property group that sells as a going concern, the best comparable sales have the same franchise or "flag", and similar real estate characteristics (will be relatively homogeneous architectural design if built in the same decade). Unfortunately there are few new car automobile dealership sales and even fewer of the same OEM with similar real estate characteristics. Automotive News shows there are 18,257 new -vehicle dealerships in the nation as of January 1, 2023 as compared to over 56.000 hotels according Hotel Chantelle a travel Industry Company. This difference alone indicates there would be far fewer transactions of auto dealerships. In addition.. the National Automobile Dealers Association (NADA) indicates dealerships continue to remain largely independent and are passed to subsequent generations in the dealer's family. further diminishing the number of transactions. Haig Partners, a brokerage specializing in dealership sales, indicates there are only 350 to 400 dealerships sold in any year. Available comparable sales are all different OEMs; real estate of different ages and designs, and fee simple and leased fee transactions. Subsequently, a more thorough than normal analysis of each transaction must be completed. Deeper analysis uncovers that most fee simple, dealership real estate is part of an asset sale, i.e.. going concern that is structured with two agreements typically used to transfer all the assets to the buyer(s). They are, 1. Purchase and sale agreement (PSA) 2. Operations transfer agreement (OTA) The PSA will articulate the tangible and intangible assets being sold (or leased). OTA issues may be addressed in the PSA or the lease and arise from the changeover of business functions. Rarely do these documents ever become available to appraisers except if conducting an appraisal for the actual transaction and sometimes not even then. 2023 Petition for Abatement 120 Laura Court, Dacono, CO February 20, 2024' 30 'Page Most often the best an appraiser can do is obtain public recordings of price allocation to real estate and maybe get a price confirmation from an involved broker, but no other discussion of facts surround the transaction, diminishing credibility of this methodology Useful information that is almost impossible to obtain includes how the allocation price was set, and business terms that impact the price paid such as non -competition clauses relating to time, solicitation of key staff and geography, and purchase option information such as how and under what assumptions the going concern price was set Ned Hennessey, automotive real estate broker at NNN Pro brokerage says "Costar is a terrible source for auto dealership sales" A prime example of Ned Hennessey's statement is that Costar often relies on public information for building size and sale price Many examples of additions not recognized by the assessor's department result in atypically high sales prices per square foot of land area Another example of problems using publically reported prices is shown by the relatively recent Stevinson Automotive Group portfolio sale and the subsequent allocation to the Chevrolet and Lexus dealerships at 15000 West Colfax Avenue and 801 Denver West Colorado Mills Boulevard, Lakewood, CO, respectively Those two sales show allocated sale prices without any rounding and specific to the individual dollar, as well as wildly different real estate prices per square foot of building area, yet they are across the street from one another and all the other portfolios' transactions are allocated to the hundred thousand Something is not as it appears Accurately separating business/intangible value from real estate value is challenging and normally one cannot exist without the other Businesses such as an auto dealership, winter ski resort, athletic club, full -service hotel, and seniors care facility are more like a business with a real estate component, than a parcel of real estate with a business element To an investor, an auto dealership, ski area or senior care facility are investments in the auto sales, service and financing business, uphill transportation and health care business, respectively, whose largest capital asset is real estate, but whose important operating asset is a collection of business resources and relationships that are classified as intangible assets In truth, all of the realty and non -realty elements of many businesses are inexorably intertwined and must work together seamlessly for an effective operation Attempting to allocate the value amongst realty and non -realty pieces is questionable and often merely an accounting exercise for the owners An officer at InBank involved in documentation of asset allocation in their 2022 purchase of Legacy Bank with 10 branches stated "intangible value is capitalized over a shorter time frame than real estate, but because it must be valued every year v./a do not want the risk of it increasing or the headache of annual documentation" InBank used all legally allowable tools to move more intangible value into real estate Sometimes when real estate is a large component of the going concern value, it can be beneficial for a buyer to rely on an appraisal without property recognition and estimation of total accrued depreciation in the Cost Approach An auto dealership broker requesting confidentially, represented a buyer who intentionally capitalized real estate value based on an appraisal without proper recognition of total depreciation, yet the going concern price was the same Access to all transaction agreements would have proven this point, but I cannot obtain them Moreover, the broker did not want to jeopardize his reputation or relationships within the auto dealership community by disclosing the dealership I have no reason to doubt the veracity of his claim Leased fee sales save limited usefulness because creditworthiness of the tenant combined with all terms of the lease make credible quantitative adjustment or comparative analysis nearly impossible As an example, when multiple dealerships are sold in a master sale/leaseback arrangement as is sometimes seen in auto dealership REIT 2023 Petition for Abatement 120 Laura Court, Dacono, CO February 20, 2024 311 Page transactions, there are many value related complexities that cannot be unearthed including cross -default structure, if any, rent allocation between the master -leased properties and impact on rent of the master lease. Ned Hennessey, automotive broker on the seller side, says the market is imperfect as shown by the spread on offers, i.e., 100 basis points. The reasons for this imperfection relative to other net leased property is 1) far fewer transactions, 2) net lease buyers are uneducated about the auto industry, and 3) most transactions are done direct to buyers (REITS and other institutional buyers) and so no brokers or marketing material to source deal points. The impact of these and other business details result in incomplete data and misuse of transactions making Sale Comparison Approach of limited use. The true benefit is merely to show an investment market exists for dealerships and their associated real estate in the subject property region, and the dealership sizes and vintage, at a total purchase point price range. Below are some Colorado sales to show property sizes and total prices. Dealership Location Bldg Size Site Size (Cty. & (Cty. & YOC Costar) Costar) Sale Price Date of Sale 1 Echo Park 2 Stevinson Toyota West 3 Stevinson Toyota East 4 Stevinson Lexus of Frederick 5 Stevinson Chevrolet 6 Stevinson Lexus 13412 West Coal Mine Ave, Littleton, CO 780 Denver West Colorado Mills Blvd fka Indianna St, Lakewood, CO 444 S Havana St. Aurora, CO 8337 Raspberry Way Longmont, CO 15000 West Colfax Ave, Lakewood, CO 801 Denver West Colorado Mills Blvd, Lakewood, CO 2016 9,058 355,014 $5,800,000 8/19/2021 2005 115,362 618,813 $25,500,000 12/7/2021 1979 51,307 289,456 $10,400,000 12/7/2021 2005 71,453 361,005 $15,800,000 12/7/2021 1985 87,642 641,029 $16,864,896 12/7/2021 1989 39504 215,753 $ 8,935,104 12/7/2021 2023 Petition for Abatement 120 Laura Court, Dacono, CO February 20, 2024 32 page Reconciliation While the Sales Comparison Approach is less applicable due to the scarcity of useful comparable sales and the complex nature of auto dealership transactions, the Cost Approach stands as a robust method for estimating the property's value. The Cost Approach adjusted value has tools helping it align with the franchise challenges and economic realities faced by auto dealerships in the market on the statutory date of value. That is, entities buying auto dealerships were anticipating future reimage costs and economic trends and discounting the value of the entire dealership including the real estate. In my opinion, the worth of the subject property, as indicated by the analyses in this report, as of June 30, 2022, is as follows: As Is Land and Improvements Nine Million Six Hundred Thousand Dollars $9,600,000 Sincerely, DYCO Diversified Inc., A. Mark Dyson, CCIM; Colorado Licensed RE Broker 2023 Petition for Abatement 120 Laura Court, Dacono, CO February 20, 2024 33IPage A. Mark Dyson, Broker, CCIM, MAI Mark Dysoir's success in commercial real estate can be attributed to a firm commitment to being actively engaged in the marketplace as someone who provides consulting service to lenders nationwide; acquires, entitles, repositions through reconfiguration and leasing, and buys and sells commercial real estate. Mark uses these skills to help lenders, tenants, developers, and buyers and sellers recognize and take advantage of opportunities by making debt and equity investments. In his first full year as a real estate broker, Mark qualified to be a recipient of the Denver Metropolitan Commercial Association of REALTORS® (DMCAR) Million Dollar Roundtable Award. Mark made the switch to a diversified commercial real estate career in late 2007 after the sale of DYCO Real Estate. Mr. Dyson started DYCO Real Estate in 1991, and grew it to one of Colorado's most well respected and largest commercial real estate consulting and appraisal firms. While running DYCO Real Estate, Mark Dyson was able to gain tremendous insight for all types of real estate. His company provided consultation, analysis and litigation support for many property owners, lenders and businesses that were experiencing success and/or failure. Mark has advised clients that include but are not limited to HealthOne, McDonalds Corp., Wal-Mart Realty, Whole Foods, YMCA, NREL, Goodwill Industries, Colorado & Santa Fe Land Co, O'Meara Ford, Koelbel & Co, John Madden Co., Freedom Harley Davidson, Adams Aircraft, and most Colorado real estate lenders to create successful real estate leasehold interests, and debt and equity investments. Mark's 17 years as founder and president of DYCO Real Estate Inc has led to a broader career in commercial real estate built on trust, knowledge, hard work and a tireless pursuit of the perfect transactions for his clients_ Mark's expertise extends to commercial brokerage sales and acquisition, and tax appeals for special purpose real estate. Mark also founded DYCO Holdings, a real estate investment company. Projects have included land assemblage and rezoning, conversion of single tenant industrial to multitenant commerial use; and acquisition, rehabilitation and repurposing of a multi -tenant office building; a 100 -year old single tenant building in Brighton, CO, and a 92 -year old auto-dealership/office property in Rifle, CO. He understands the challenges and sees the opportunity for repurposing property, including obtaining tax credits for historic structures, thereby increasing value. Mark is one of a few commercial real estate brokers who can price and maximize sales proceeds of a historic property best suited for renovation to alternative use. Mark's personal achievements include greater than 20% annualized returns to equity on all DYCO Holdings reel estate investments; past President of Beeler Place Townhouses, a homeowners association at Copper Mountain, Colorado; and his family; wife Vanda Lewis and sons Ian and Drew. Investment transactions of note include: Sale of the Chase Bank property in the Broomfield Corners shopping center Sale of the NextCare urgent care property in the Broomfield Corners shopping center Sale of the Chick-fil-A property in the Eagles Nest Village shopping center in Centennial, CO Sale of the 7Eleven in the Vista Ridge master planned community in Erie, CO Sale of the former 7Eleven at 1990 Youngfield, Lakewood, CO Sale of the former Village Inn restaurant proximate to the Montbello Plaza shopping center in Denver Sale of a failed, 4.5 -acre restaurant park proximate to the Montbello Plaza shopping center for redevelopment with two hotels 4/18/2024 Attn: Brenda Dones RE: 2023 Abatement received 02/20/2024 R8959229 R K B INC 120 LAURA WAY DACONO, CO 80514-5046 2023 Assessors Value $13,028,310 ($242.38/sf) SUBJECT: The subject property is the Interstate Ford dealership located at 120 Laura Ct in Dacono. This is in the Dacono Gateway Centre at the southeast corner of 1-25 and Hwy 52. The subject is a 53,751 square feet complete auto dealership located on 9.6 -acres and built in 2018. Cost Approach: The summary value based on the cost approach is $13,028,310 or $242.38/sf for 2023. Land comps in the area were between $3.77 - $5.89/sf for similar sized parcels. It was determined $5.00/sf was appropriate for the subject. Total RCN $11,276,553 Depr 3% $ 338,297 RCNLD: $10,938,256 Land $ 2,090,054 Total RCNLD $13,028,310 Market Approach: Market value is $12,630,000 ($234.97/sf). Market sales range from $191.89 - $305.72/sf. Comp 1 753 Champion Dr, Windsor, 39,607 sf complete auto dealership built in 2006, on 9.58 acres; sold 9/25/2020 for $7,600,000 or $191.89/sf. Comp 2 2501 35th Ave, Greeley, 30,055 sf complete auto dealership built in 1993 and 12,467 sf service garage built in 2016 on 14.33 acres; sold 1/26/2020 for $13,000,000 or $305.72fsf. Comp 3 1111 South Gate Dr, Windsor, 19,007 sf complete auto dealership built in 2009 and 20,409 sf automotive center built in 2014 on 10.91 acres; sold 8/31/2021 for 9,875,00D or $250.53/sf. Comp 4 8337 Raspberry Way Frederick, 71,453 sf complete auto dealership built in 2005 on 8.288 acres; sold 12/4/2021 for $15,800,000 or $221.12/sf. Reconciliation and Summary: The cost approach supports $13,028,310 (242.38/sf) and the sales approach supports $12,630,000 ($234.97/sf). At the agent's request, additional consideration was given for the depreciation of short-lived items in the cost approach. This brings the cost approach value in line with the sales approach value. Therefore, I recommend we adjust the original value to $12,630,000 ($234.97/sf). Photos & Sketch Improvement 1 Front view 4/22/24, 1:18 PM Property Report 't -1;111e0 Weld County PROPERTY PORTAL Property Information (970) 400-3650 Technical Support (970) 400-4357 Account: R8959229 April 22, 2024 Account Information Account I Parcel R8959229 146702206001 Legal l � 3 Account Tax l Actual Assessed Type Year I Buildings Commercial 2024 1 13,028,310 3,634,900 Value I Value LOT 1 DACONO GATEWAY CENTRE MINOR RPLT L1 RPLT L3-5 RPLT L3 Subdivision DACONO GATEWAY CENTRE MINOR RPLT L1 RPLT L3-5 RPLT L3 Property Address 120 LAURA CT Property Zip Section Township Range City Block Lot Land Economic Area DACONO GATEWAY CENTER DACONO 02 j 01 168 Owner(s) { Account Owner Name Address R8959229 I R KB INC i 120 LAURA WAY DACONO, CO 805145046 Document History https://oropertvreoort.weld.00v/?account=R8959229&defaultsection=owner 1/6 4/22/24, 1:18 PM Property Report Reception Rec Date Type Grantor Grantee Doc Fee 4463959 02-01-2019 I PLT DACONO GATEWAY CENTRE MINOR RPLT L1 RPLT L3-5 RPLT L3 DACONO GATEWAY CENTRE MINOR RPLT L1 RPLT L3-5 RPLT L3 Sale Date Sale Price 1 0.00 I 11-21-2018 *If the hyperlink for the reception number does not work, try a manual search in the Clerk and Recorder records. Use the Grantor or Grantee in your search. AccountNo I R8959229 ID Type Building Information Building 1 Building ID Occupancy Complete Auto Dealership NBHD I Occupancy j 7° i f Complete I Complete ICommercial 3903 I Auto Dealership II ID Exterior Roof Interior Cover ID Total Square JJ Condo I Basement Ft j SF SF 1 I 53,751 0 j 0 Bedrooms I Baths Rooms 0 Basement d i Garage Carport Balcony Porch SF SF J SF SF SF 0 0 ' 0 httos://orooertvreoort.weld.aov/?account=R8959229&defaultsection=owner 2/6 4/22/24, 1:18 PM Property Report Built As Details for Building 1 ID I Built As Square 1.00 Complete Auto 53,751 Dealership Built Stories Length 2018 1 0 Width I Additional Details for Building 1 ID Detail Type Add On Description Asphalt Average Units 265,000 I Add On Concrete Slab Average ! 5,000 i I 1,627 Mezzanine Storage Tax Authorities Tax I District Apea ; ID 5602 0900 i CARBON VALLEY REC District Name Current Mill Levy ( 5602 0402 DACONO TOWN DACONO URBAN RENEWAL 5602 I 0965 AUTHORITY 5602 0512 0301 MOUNTAIN VIEW FIRE PROTECTION DISTRICT NORTHERN COLORADO WATER (NCW) 1338 PINNACLE FARMS METRO 57.238 5602 ( 0213 I SCHOOL DIST RE1J-LONGMONT r-- 4.427 25.700 0.000 16.247 1.000 42.000 5602 0620 E ST VRAIN SANITATION 0.317 5602 0100 WELD COUNTY 12.024 158.953 https://oropertvreport.weld.aov/?account=R8959229&defaultsection=owner 3/6 4/22/24, 1:18 PM Property Report Photo Sketch httos://oropertvreport.weld.aov/?accojnt=R8959229&defaultsection=owner 4/6 4/22/24, 1:18 PM Property Report Map https://propertvreport.weld.aov/?account=R8959229&defaultsection=owner 5/6 Iya... 3711 UG` 3771 # 37713111 # ' 3 7 71 '# C 3771 #B "* a377 1 #A This map is a user generated static output Iron! an Internet mapping site and is for reference only. Data layers that appear on this map may or may not be accurate, current, or otherwise reliable. THIS MAP IS NOT TO BE USED FOR NAVIGATION CLERK TO THE BOARD PHONE: (970) 400-4225 FAX: (970) 336-7233 1150 O STREET P.O. BOX 758 GREELEY, COLORADO 80632 www.weld.gov April 26, 2024 R K B, INC. 120 LAURA WAY DACONO, CO 80514-5046 RE: SCHEDULE NUMBER R8959229 Dear Property Owner: This is to advise you that the Weld County Board of Commissioners will hear your petition for abatement or refund of taxes on the property described as: 120 Laura Court, Dacono, Colorado 80514. The meeting is scheduled for Wednesday, May 15, 2024, at 9:00 a.m., in the Chambers of the Board of County Commissioners of Weld County, Colorado, Weld County Administration Building, 1150 O Street, Assembly Room, Greeley, Colorado 80631. The Assessor is recommending that the Board approve, in -part, your petition. You are not required to be present at this hearing' however, this is your opportunity to have your position heard, particularly if your position is opposed to the Assessor's recommendation. If you intend to submit any documentation in support of your position for this hearing, all such documentation must be submitted to the Office of the Clerk to the Board and to the Weld County Assessor's Office at least seven calendar days prior to the meeting date in order for it to be considered at the scheduled hearing. If you have any questions concerning this matter, please do not hesitate to contact me at (970) 400-4217. Sincerely, earce nt .udoctotriic Janet M. Warwick Deputy Clerk to the Board jwarwick©weld.gov Enclosures: Copy of Petition for Abatement of Refund of Taxes cc: Weld County Assessor DYCO Diversified, Inc. WELD COUNTY PETITION FOR ABATEMENT OR REFUND OF TAXES CERTIFICATE OF MAILING FIRST NAME LAST NAME POSTAL ADDRESS 1 CITY STATE COMPANY CODE 120 LAURA WAY DACONO CO 80514-5046 R K B, INC. MARK DYSON DYCO DIVERSIFIED, 795 MCINTYRE GOLDEN CO 80401 STREET, SUITE 205 INC. mdyson@dycodiv.com I hereby certify that I have sent a notification of hearing date letter in accordance with the notification requirements of Weld County in the United States Mail, postage prepaid First Class Mail by letter as addressed on the attached list this 26th day of April, 2024. m N C C rR CYl . w Co- oTz-Jc Janet M. Warwick Deputy Clerk to the Board U.S. Postal Service' CERTIFIED MAIL° RECEIPT Domestic Mail Only For delivery information, visit our website at www.usps.com'. Certified Mail Fee Extra Services & Fees (check box, add fee as appropriate) ❑ Return Receipt (hardcopy) ❑ Return Receipt (electronic) $ ❑ Certified Mail Restricted Delivery :$ • Adult Signature Required $ 9 Adult Signature Restricted Delivery $ Postage Total Postage and Fees Sen Streetd Apt. Alo., or r PO Box Ci PS Form 3800, April 2015 PSN 7530-02-000-9047 41z4 Postmark Here M (d c' T E a) a O V ■ UU, Cth 0 a + O O -O Co c9 0) U -o +y co tj V I- C .n ^(is W E (v O U aal +- C -•-' U) ■ a) o slab? 2 a) ca 0w >- U) • V7 a 3 O -a o I- ® o 0 CC 12 O Ca a) V aa) U rx a) S� O B -O -O O co u)g70a)-s a) 3tt co <<000 M❑❑\❑❑ Article Number (Transfer from service label) MO 1 N r, O Domestic Return Receipt PS Form 3811, July 2020 PSN 7530-02-000-9053 U.S. Postal Service' CERTIFIED MAIL° RECEIPT Domestic Mail Only For delivery information, visit our website at www.usps.com'. ,4 Certified Mail Fee txtra services & Fees (check box, add fee as appropriate) ❑ Return Receipt (hardcopy) $ ❑ Return Receipt (electronic) $ ❑ Certified Mail Restricted Delivery $ ❑ Adult Signature Required $ Adult Signature Restricted Delivery $ Postage Total Postage and es $ Sent To City, �1i n WCYIPeJ Tote, pt. No , or ep.Box N 2L4' Postmark Here re,. ;eZI' - sled .kaa .� a D PS Form 3800, April 2015 PSN 7530-02-000-9047 Zo5 See Reverse for Instructions re alp le si +Q+ C _Q CIZS 0 L 12 a) i) O � to i cc'M 2 .O r tU E cl CA a) E co o C U L o 111 o a a its Co �s U 0 wn IN U. rinted Nam • U cc Z Ek. a' z ®tat O O co a a2 CC E w2 2 oo • OO ( g a) a) . to U) U 5 (II m 2 5) Q).? c c Q. I cC O W to ODD DO a) O 0 .F• a) a)© TES a c2 65 0) 'a a) ate) a) D a) U U) a) CC a) a) U > a —a)) p .9 a) ctr ) U) �' cc > > c 'D O O 22 a) o Ti OOO ❑❑❑ 6 U .a E L 4-- a) O U 0 co Q S 1. Article Addressed to: e� N v, aatga C et\7') L 1_1 a- [Cage 9590 9402 7686 2122 8612 18 0 a) -o O U U) a) r -ca cc e 50 1 rag Er m 2. Article Number (Transfer from service label) N a - a a Cl r1 CJ N Domestic Return Receipt O O 9 0 0 co N- O O N May 22, 2024 Clerk to the Board Phone: (970) 400-4225 Fax: (970) 336-7233 1150 O Street P.O. Box 758 Greeley, Colorado 80632 www.weld.gov R K B, INC. 120 LAURA WAY DACONO, CO 80514-5046 RE: Schedule Number R8959229 Dear Property Owner: On May 15, 2024, the Board of Weld County Commissioners considered your petition for abatement or refund of taxes and approved, in part, same. Pursuant to C.R.S. §39-2-125(f), you have the right to appeal this decision to the State Board of Assessment Appeals within thirty days. You may obtain the appropriate forms and instructions from: Board of Assessment Appeals — Department of Local Affairs 1313 Sherman Street, Room 315 Denver, CO 80203 Phone: (303) 864-7710 Email: dola_baa@state.co.us. In preparation for appealing to the State Board of Assessment Appeals you may also go to the following state link to obtain any further information you may need to proceed, http://wwW.dola.state.co.us/baa/index.htm. Very truly yours, Janet M. Warwick Deputy Clerk to the Board jwarwick@weld.gov Enclosures: Resolution #2024-1215, Copy of Petition for Abatement of Refund of Taxes cc: Weld County Assessor Ile Weld County Petition for Abatement or Refund of Taxes Certificate of Mailing First Name Last Name Company Address 1 City State Postal Code R K B, INC. 120 LAURA WAY DACONO CO 80514-5046 A. MARK DYSON DYCO DIVERSIFIED, 795 MCINTYRE GOLDEN CO 80401 STREET, SUITE 205 INC. mdyson@dycodiv.com I hereby certify that I have sent a Tax Abatement Petition decision letter in accordance with the notification requirements of Weld County in the United States Mail, postage prepaid First Class Mail by letter as addressed on the attached list this 22nd day of May, 2024. Uffictf• M vielA,Lcrat Janet M. Warwick Deputy Clerk to the Board U.S. Postal Service' CERTIFIED MAIL® RECEIPT Domestic Mail Only For delivery information, visit our website at www.usps.com . IT S S S D rI O N 'ci Certified Mail Fee Extra Services & Fees (check box, add fee as appropriate) ❑ Return Receipt (hardcopy) $ o Return Receipt (electronic) o Certified Mail Restricted Delivery • Adult Signature Required O Adult Signature Restricted Delivery $ Postage Total Postage and Fees Postmark Here Pe Box No. ra 05 PS Form 3800, April 2015 PSN 7530-02-000-9047 t -5644, See Reverse for Instructions 75 I 0 0 o >-Z Da c3tad tv v7 cn Q Q i a) i t 0 c'7 Cd ICS (4 13 c r C1) E E c a) L 4-0 Q) � 0. 4 0 a. ■ ■ D U i a) 0 a) 465 0 0 a) otg va a a s . c'- k 2 -0 as a) a) a) CD t11 V 020 .. 0 a2 cc cE E act �2 w UU� 'Ea -0a 2 O 0 L L L -Si to v O co a. 'a= L omor?ccn .C C) a) a) .m.m a) Cl. CC CC 0Cl) 0) cc ❑❑D DO a) a) a) O > m a) .n U a) .C +' +—a U N a'a' a) a) a) am ®_ _ WO -- Torts is Icti aJ o C C22 c c2 0 • '0 -a O O C!) Co a) a) +- -C �D000)oov Q 0000 c cii❑D ❑❑❑C O a 4-. U N a) cc t a 0 a +E. O i 4-0 S.. O Article Addressed to: T cs —Jae -T O C �a CO N- cc) cc) O O co cc CO 0 C) C, Article Number (Transfer from service label) r O S S S S S N r -R lJ N Domestic Return Receipt M 0) 0 0 0 0 co Cf) 0 0 CO CO 0 LL 0 U.S. Postal Service"' CERTIFIED MAIL° RECEIPT Domestic Mail Only For delivery information, visit our website at www.usps.com FFICIAL Certified Mail Fee $ Extra Services & Fees (check box, add fee as appropriate) ❑ Return Receipt (hardcopy) $ ❑ Return Receipt (electronic) $ ❑ Certified Mail Restricted Delivery $ ❑ Adult Signature Required $ D Adult Signature Restricted Delivery $ Postage Total Postage and Fees S Str e City. c1>fteni I Avj ,001>4 op. • • ► o t IP s • Mart 46r1 41tc1�� 5�G Postmark Here a PS Form 3800, April 2015 PSN 7530-02-000-9047 See Reverse for Instructions ••— SIN O U co 0/5 Cu N T 4-0 a) a) a) 43 0 U ■ i Q U 0 E 0 4-0 O � cn ccs 'U 0 C 0 CO }' Q) ca o cti o � U a. w ■ o E U '- (TS Q) 2 O - O (1) Q O 12 "- CO El CD o C a) r al O Q O ■ a Co Z E o • — cv E O (-1) 4- CO Q) C v Co - D CZ 0 t C a) CD O LLJ J-- ••- a J 9 a a a N TT U +U+�=+. U •C .N N d) as alt.-. J C C 4.. C O10 a_ cc cc o cn cn cr DOD 0 a) O I- 0 0 v CI E E C c 00 D a) a• > a) Rii a) O Z 0 � m > •O O c) 6 CD O aa) N U CC N cp U U Q. m mO:Y— ≥ D - 0 U _ C1-5 (tJ O O C C C C °° a)D>CC— — (/) Z7 Z7 a� a� 0 Q OOU cci ❑❑ ❑❑❑ ..o CO CV CD CD O CO CO 0 C, C) Article Number (Transfer from service label) N U N C) CC a Er a a 0 sir Domestic Return Receipt PS Form 3811, July 2020 PSN 7530-02-000-9053 May 22, 2024 Clerk to the Board Phone: (970) 400-4225 Fax: (970) 336.7233 1150 O Street P.O. Box 758 Greeley, Colorado 80632 www.weld.gov State of Colorado Division of Property Taxation 1313 Sherman Street, Room 419 Denver, CO 80203 RE: Petition for Abatement or Refund of Taxes — R K B, Inc. To Whom It May Concern: Please review the attached documents, which include the original petition, a copy of the petition, two (2) copies of the resolution approved by the Weld County Board of Commissioners, and a copy of the back-up documentation supporting the petition. Tax Year(s): 2023 Parcel Number: 146702206001 Account Number: R8959229 If you have any questions concerning this matter, please do not hesitate to contact me at (970) 400-4217. Very truly yours, nt.dc_ Janet M. Warwick Deputy Clerk to the Board jwarwick@weld.gov n O O z 1£10 £50I 5911 H MOM RiWaW -iii' -v �v mm ≤ m = VOI P3 m 0 a� c. O m m P3 m O O O 3 O z as rn m O O 00 CJv O O 583,14/C458/9AE3 After printing this label: CONSIGNEE COPY - PLEASE PLACE IN FRONT OF POUCH 1 Fold the printed page along the horizontal line. 2 Place label in shipping pouch and affix it to your shipment. Use of this system constitutes your agreement to the service conditions in the current FedEx Service Guide, available on fedex.com. FedEx will not be responsible for any claim in excess of $100 per package, whether the result of loss, damage, delay, non -delivery, misdelivery, or misinformation, unless you declare a higher value, pay an additional charge, document your actual loss and file a timely claim. 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