HomeMy WebLinkAbout20192644.tiffAugust 6, 2019
Petitioner:
SUN MOUNTAIN REALTY LLC
140 COMMERCE DR
BERTHOUD, CO 80513-9148
CLERK TO THE BOARD
PHONE (970) 400-4226
FAX (970) 336-7233
WEBSITE: www.weldgov.com
1150 O STREET
P.O. BOX 758
GREELEY CO 80632
Agent (if applicable):
RE: THE BOARD OF EQUALIZATION 2019, WELD COUNTY, COLORADO
NOTICE OF DECISION
Docket 2019-2644 Appeal 2008224355 Hearing 8/5/2019
Dear Petitioner:
On the day indicated above, the Board of County Commissioners of Weld County Colorado convened and
acting as the Board of Equalization, pursuant to C.R.S. §39-8-101 et seq., considered petition for appeal of
the Weld County Assessor's valuation of your property described above, for the year 2019.
Account # Decision
The Assessment and valuation is set as follows:
Actual Value as Actual Value as Set by
Determined by Assessor Board
R7533799 Stipulated - Approved
Stipulated Value
$7,570,725 $6,813,653
A denial of a petition, in whole or in part, by the Board of Equalization must be appealed within thirty (30)
days of the date the denial is mailed to you. You must select only one of the following three (3)
options for appeal:
1. Appeal to Board of Assessment Appeals: You have the right to appeal the County Board of
Equalization's decision to the Colorado Board of Assessment Appeals. A hearing before that Board
will be the last time you may present testimony or exhibits or other evidence, or call witnesses in
support of your valuation. If the decision of the Board of Assessment Appeals is further appealed to
the Court of Appeals pursuant to C.R.S. §39-8-108(2), only the record of proceedings from your
hearing before the Board of Assessment Appeals and your legal brief are filed with the appellate
court.
All appeals to the Board of Assessment Appeals filed after August 10, 2019, MUST comply with the
following provisions of C.R.S. §39-8-107(5):
(5)(a)(I) On and after August 10, 2019, in addition to any other requirements under law, any petitioner
appealing either a valuation of rent -producing commercial real property to the Board of Assessment Appeals
pursuant to C.R.S. §39-8-108(1) or a denial of an abatement of taxes pursuant to C.R.S. §39-10-114 shall
provide to the County Board of Equalization or to the Board of County Commissioners of the County in the
case of an abatement, and not to the Board of Assessment Appeals, the following information, if applicable:
(A) Actual annual rental income for two full years including the base year for the relevant property tax year;
(B) Tenant reimbursements for two full years including the base year for the relevant property tax year;
(C) Itemized expenses for two full years including the base year for the relevant property tax year; and
(D) Rent roll data, including the name of any tenants, the address, unit, or suite number of the subject
property, lease start and end dates, option terms, base rent, square footage leased, and vacant space for
two full years including the base year for the relevant property tax year.
(II) The petitioner shall provide the information required by subparagraph (I) of this paragraph (a) within
ninety days after the appeal has been filed with the Board of Assessment Appeals.
(b)(I) The Assessor, the County Board of Equalization, or the Board of County Commissioners of the
County, as applicable, shall, upon request made by the petitioner, provide to a petitioner who has filed an
appeal with the Board of Assessment Appeals not more than ninety days after receipt of the petitioner's
request, the following information:
(A) All of the underlying data used by the county in calculating the value of the subject property that is being
appealed, including the capitalization rate for such property; and
(B) The names of any commercially available and copyrighted publications used in calculating the value of
the subject property.
(II) The party providing the information to the petitioner pursuant to subparagraph (I) of this paragraph (b)
shall redact all confidential information contained therein.
(c) If a petitioner fails to provide the information required by subparagraph (I) of paragraph (a) of this
subsection (5) by the deadline specified in subparagraph (II) of said paragraph (a), the County may move
the Board of Assessment Appeals to compel disclosure and to issue appropriate sanctions for
noncompliance with such order. The motion may be made directly by the County Attorney and shall be
accompanied by a certification that the County Assessor or the County Board of Equalization has in good
faith conferred or attempted to confer with such petitioner in an effort to obtain the information without action
by the Board of Assessment Appeals. If an order compelling disclosure is issued under this paragraph (c)
and the petitioner fails to comply with such order, the Board of Assessment Appeals may make such orders
in regard to the noncompliance as are just and reasonable under the circumstances, including an order
dismissing the action or the entry of a judgment by default against the petitioner. Interest due the taxpayer
shall cease to accrue as of the date the order compelling disclosure is issued, and the accrual of interest
shall resume as of the date the contested information has been provided by the taxpayer.
Appeals to the Board of Assessment Appeals must be made on forms furnished by that Board, and must be
mailed or delivered within thirty (30) days of the date the denial by the Board of Equalization is mailed to
you.
The address and telephone number of the Board of Assessment Appeals are:
Board of Assessment Appeals
1313 Sherman Street, Room 315
Denver, Colorado 80203
Telephone Number: (303) 864-7710
Email: baa@state.co.us
Fees for Appeal to the Board of Assessment Appeals: A taxpayer representing himself is not charged for the
first two (2) appeals to the Board of Assessment Appeals. A taxpayer represented by an attorney or agent
must pay a fee of $101.25 per appeal.
OR
2. Appeal to District Court: You have the right to appeal the decision of the Board of Equalization to the
District Court of the county wherein your property is located: in this case that is Weld County District
Court. A hearing before The District Court will be the last time you may present testimony or exhibits
or other evidence, or call witnesses in support of your valuation. If the decision of the District Court is
further appealed to the Court of Appeals pursuant to C.R.S. §39-8-108(1), the rules of Colorado
appellate review and C.R.S. §24-4-106(9), govern the process.
OR
3. Binding Arbitration: You have the right to submit your case to binding arbitration. If you choose this
option, the arbitrator's decision is final and you have no further right to appeal your current
valuation. C.R.S. §39-8-108.5 governs this process. The arbitration process involves the following:
a. Select an Arbitrator: You must notify the Board of Equalization that you will pursue
arbitration. You and the Board of Equalization will 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 (i.e. Weld) will select the arbitrator.
b. Arbitration Hearing Procedure: Arbitration hearings are held within sixty (60) days from the
date the arbitrator is selected, and are set by the arbitrator. Both you and the Board of
Equalization are entitled to participate in the hearing. The hearing is informal. The arbitrator
has the authority to issue subpoenas for witnesses, books, records documents and other
evidence pertaining to the value of the property. The arbitrator also has the authority to
administer oaths, and determine all questions of law and fact presented to him. The
arbitration hearing may be confidential and closed to the public if you and the Board of
Equalization agree. The arbitrator's decision must be delivered personally or by registered
mail within ten (10) days of the arbitration hearing.
c. Fees and Expenses: The arbitrator's fees and expenses are agreed upon by you and the
Board of Equalization. In the case of residential real property, the fess may not exceed
$150.00 per case. For cases other than residential real property, the arbitrator's total fees
and expenses are agreed to by you and Board of Equalization, but are paid by the parties as
ordered by the arbitrator.
If you have questions concerning the above information, please call me at (970) 400-4226.
Very truly yours,
BOARD OF EQUALIZATION
az36, CL�IG'C
Esther E. Gesick
Clerk to the Board
Weld County Board of Commissioners
and Board of Equalization
cc: Brenda Dones, Weld County Assessor
COUNTY BOARD OF EQUALIZATION
WELD COUNTY
Single County Schedule Number R7533799
STIPULATION (As To Tax Year 2019 Actual Value)
RE PETITION OF :
NAME:
ADDRESS:
SUN MOUNTAIN REALTY LLC
140 COMMERCE DR
BERTHOUD, U D, CO 80513-9148
Petitioner (s) and the Weld County Assessor hereby enter into this Stipulation
regarding the tax year 2019 valuation of the subject property, and jointly move the
Board of Equalization to enter its order based on this Stipulation.
Petitioner (s) and Assessor agree and stipulate as follows:
1. The property subject to this Stipulation is described as:
JOH 2I25GCRA L1 BLK1 1-25 GATEWAY CENTER #2 REP A
140 COMMERCE DR, JOHNSTOWN
2. The subject property is classified as INDUSTRIAL
property.
3. The County Assessor originally assigned the following actual value to the
subject property for the tax year 2019
Total $7,570,725
4. After further review and negotiation, Petitioner (s) and Weld County Assessor
agree to the following tax year 2019 actual value for the subject property:
Total $6,813,653
5. The valuation, as established above, shall be binding only with respect to tax
year2019
6. Brief narrative as to why the reduction was made:
Further review of all approaches to value indicated an adjustment.
7. Both parties agree that:
EIThe hearing scheduled before the Board of Equalization on 8/1/2019
at 9:00 am be vacated.
❑A hearing has not yet been scheduled before the Board of Equalization.
1
0019-aC��
"SO (03
DATED this 30th day of July , 2019
Ed wriahf
Ed Wright aid 2019)
Petitioner(s) or Agent or Attorney
Address:
140 COMMERCE RD
BERTHOUD
Telephone: 9705322105
Docket Number R7533799
Stip-1 .Frm
(Assistant) County Attorney for
Respondent, Weld County Board of
Commissioners
Address:
1150 "O" Street
P.O. Box 758
Greeley, CO 80632
Telephone:(970) 336-7235
County Assessor
Address:
1400 N.17th Avenue
Greeley, CO 80631
Telephone: (970) 400-3650
2
R7533799/SUN MOUNTAIN REALTY LLC
Final Audit Report
2019-07-30
Created: 2019-07-30
By: Courtney Maya (canaya@co.weld.co.us)
Status: Signed
Transaction ID: CBJCHBCAABAAhDRxp4UvuDzXkCrkQ9SC8_RAfJrIi5UT
"R7533799/SUN MOUNTAIN REALTY LLC" History
1Document created by Courtney Anaya (canaya@co.weld.co.us)
2019-07-30 - 3:49:47 PM GMT- IP address: 204.133.39.9
C-14 Document emailed to Courtney Anaya (canaya@co.weld.co.us) for approval
2019-07-30 - 3:49:49 PM GMT
6Q Document approved by Courtney Anaya (canaya@co.weld.co.us)
Approval Date: 2019-07-30 - 3:49:58 PM GMT - Time Source: server- IP address: 204.133.39.9
LT+ Document emailed to Millie Channell (mchannell@weldgov.com) for approval
2019-07-30 - 3:50:00 PM GMT
t Email viewed by Millie Channell (mchannell@weldgov.com)
2019-07-30 - 4:05:26 PM GMT- IP address: 204.133.39.9
(54 Document approved by Millie Channell (mchannell@weldgov.com)
Approval Date: 2019-07-30 - 4:08:00 PM GMT - Time Source: server- IP address: 204.133.39.9
E. Document emailed to Brenda Dones (bdones@co.weld.co.us) for signature
2019-07-30 - 4:08:02 PM GMT
i5 Email viewed by Brenda Dones (bdones@co.weld.co.us)
2019-07-30 - 5:02:49 PM GMT- IP address: 204.133.39.9
64 Document e -signed by Brenda Dones (bdones@co.weld.co.us)
Signature Date: 2019-07-30 - 5:03:04 PM GMT - Time Source: server- IP address: 204.133.39.9
C'l. Document emailed to Ed Wright (ewright@sunmountaindoor.com) for signature
2019-07-30 - 5:03:06 PM GMT
'5 Email viewed by Ed Wright (ewright@sunmountaindoor.com)
2019-07-30 - 5:07:55 PM GMT- IP address: 72.19.143.166
Adobe Sign
4, Document e -signed by Ed Wright (ewright@sunmountaindoor.com)
Signature Date: 2019-07-30 - 5:23:52 PM GMT - Time Source: server- IP address: 72.19.143.166
EI-D, Document emailed to Karin McDougal (weld-cboe@weldgov.com) for signature
2019-07-30 - 5:23:53 PM GMT
t Email viewed by Karin McDougal (weld-cboe@weldgov.com)
2019-07-30 - 5:26:51 PM GMT- IP address: 204.133.39.9
4, Document e -signed by Karin McDougal (weld-cboe@weldgov.com)
Signature Date: 2019-07-30 - 5:39:20 PM GMT - Time Source: server- IP address: 204.133.39.9
O Signed document emailed to Brenda Dones (bdones@co.weld.co.us), Ed Wright
(ewright@sunmountaindoor.com), Courtney Anaya (canaya@co.weld.co.us), canaya@weldgov.com, and 2
more
2019-07-30 - 5:39:20 PM GMT
Adobe Sign
Thank you for submitting an appeal to the Weld County Board of Equalization. We will review the
information submitted and you will receive a date to appear before the board.
Contact Information:
Contact Name: Ed Wright
Contact Email: ewright@sunmountaindoor.com
Contact Phone: 970-532-2105
Appeal Submitted: 04:56 PM July 08, 2019
Appeal submitted for:
R7533799 - SUN MOUNTAIN REALTY LLC
140 COMMERCE DR, JOHNSTOWN
Legal: JOH 2I25GCRA L1 BLK1 I-25 GATEWAY CENTER #2 REP A
Reason: Value Too High - I protested the $85.00/SF Notice of Valuation (NOV) received from the
county appraiser. I proposed a valuation of $65.00/SF which I believe is a fair and equitable
valuation, and I provided substantial evidence for this (see attached original protest document). The
appraiser returned a $75.00/SF Notice of Determination (NOD). I am thus appealing this to the
BOE. Very few comparable sales occurred during the assessment period January 1, 2017 to June 30,
2018. One such sale however is R6926398 which sold for $9,220,000 on April 17, 2017. No split of
the actual sale price between the building and land is available, but calculating the land value at
$3.50/SF, equal to the County's 2017 assessment in the year of the sale (and also equal to the
County's 2017 land valuations of adjoining neighbor properties R6779768 and R0258195; and flat
land valuation at $3.50/SF for the 2019-2020 assessment). This calculates the building sale price
alone at $61.91/SF. This is $4.46/SF below the $66.37/SF NOD valuation of our building alone.
And, this property is not "apples to apples" with our property but is, 1) located in a more
metropolitan area of the County with much higher property values than our rural location, 2) over
29,000 SF larger than our building, 3) includes over 24,000 SF of finished office space (versus the
2,640 SF office space of our building), and most importantly 4) is masonry construction (versus our
metal building). How can our metal building, 29,000 SF smaller with a fraction of the finished
office space, and in a rural area, be valued higher than this actual sale? And, ample evidence exists
that little appreciation of building and land values has occurred since this sale. For example, the
county assessed no valuation increase for R0029690, since its sale January 6, 2016. Additional
comparables and evidence will be presented before the board.
Estimate of Value: $6,561,585.00
Document(s) Submitted:
Account: All Accounts - Weld County, 2019 Owner Authorization for Protest, Signed (5-24-19).pdf
Account: All Accounts - Weld County, R7533799 2019 NOV Protest (5-29-19).pdf
You have selected the following Date Preferences:
Thursday, August 1, 2019, from 9:00 a.m. to 12:00 p.m.
Thursday, August 1, 2019, from 1:30 p.m. to 3:30 p.m.
Friday, August 2, 2019, from 9:00 a.m. to 12:00 p.m.
Friday, August 2, 2019, from 1:30 p.m. to 4:30 p.m.
Monday, August 5, 2019, from 10:30 a.m. to 12:00 p.m.
2019-2644
ASoWB
The Appeal process can take several weeks for us to complete. You will receive a written decision
on your appeal within five (5) working days of your hearing.
We thank you for your submittal.
Weld County Board of Equalization
From: Ed Wright wright@sunmount,ndoor com
Subject: SMR Owner's Authorization for RE Tax Protest
Date: May 24, 2019 at 4.24 PM
To: John Walton (jjbwaltonjr@icioud corn) ilbwaltonjr�a@icloud corn
John,
I am protesting the 2019 Weld County valuation of the building and land owned by Sun Mountain
To represent the company in thisprotest, I needyour Realty, LLC.
authorization. Please print and sign the attached
document, then scan and return to me via e-mail.
Thank you,
ED WRIGHT
Genera► Manager
140 Commerce Drivel Berthoud. CO 80513
0 970 532 2105 x30 f 970 532 2208 m 970 213 3268
Sun Mountain
CUSTOM DOORS
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May 24. 2019
To Whom It May Concern
1. John A. Walton. am the owner of Sun Mountain Realty, LLC. the owner of the property located at 14C
Commerce Road. Berthoud. CO 80513 (also known as JON 2125GCRA L1 BLK1 1-25 GATEWAY
CENTER I2 REP A or Weld County Account Number R7533799) I hereby authorize Ed Wright to
represent Sun Mountain Really LLC in a protest of the 2019 Real Property Notice of Valuation received
from Weld County
se contact me any questions.
hn A . Walton
1) 376-4166
altonlr@}cloud com
May 29, 2019
Millie Channell
Property Appraiser, Commercial Division
Weld County Assessor
1400 North 17th Avenue
Greely, CO 80631
Dear Millie,
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CUSTOM DOORS
Thank you for the meeting with you and Tim Reddick at the County Assessor's office on Thursday May 23, 2019.
When I received your 2019 Notice of Valuation (NOV) via mail, I was shocked to see that the property valuation
for the building and land owned by Sun Mountain Realty, LLC (Account Number R7533799) had increased from
$5,551,865 for 2017-2018 to $8,580,155—a whopping $3,028,290 or 54.5% increase. This would result in an
increase in our annual property taxes of more than $75,000 (from just over $137,000, to more than $212,000 at
the 2019 Mill Levy rates). I desired to meet with you to understand the basis for your valuation increase.
Another way to look at this (as you confirmed in your comments) is that our total valuation increased from
$55.00/square foot (SF) when applied to our building square footage, to $85.00/SF—a whopping $30.00/SF
increase, or again 54.5%. I realize that our 10.00 acres of land is also included in this valuation, but I am just
stating the total valuation in terms the building square footage, as you did. Breaking out the building and the land
valuations separately, illustrates this detail to your 2019 valuation and the change from the prior assessment:
Valuation Dollars:
SF 2017-2018 r
Building 100,943 $4,898,474
Land 435,594 $653,391
Total $5,551,865
Total on Building 100,943 $5,551,865
2019
$7,708,967
$871,188
$81580,155
$8,580,155
Increase
$2,810,493
$217,797
$3,028,290
$3,028,290
Valuation/SF:
2017-2018 V 2019 Increase % Increase
$48.53 $76.37 $27.84 57.4%
$1.50 $2.00 $0.50 33.3%
$55.00
$85.00
$30.00
54.5%
3rd Party Appraisals, Metropolitan Areas Outside of County
As I asked about the basis for the valuation increase, you presented a report of valuations from a 3rd party
appraisal for several properties which, "were used to value a real estate transaction in Weld County during the
2017 to June 2018 assessment period." This report illustrated SF valuations in the $80.00/SF to $100.00/SF
range. You clearly stated that you, "used these valuations to justify the valuation of our property at $85.00 per
square foot." As I reviewed this report, I noted and expressed concern that none of these properties were located
in Weld County, but rather were located in Aurora, Thornton, and Denver which are metropolitan areas compared
to our rural location in Berthoud. In addition, I expressed concern that these 3rd party appraisals were for buildings
of comparable size, but illustrated no comparison of construction, land size, and land value between these
properties and our property. I have great concern that using 3rd party appraisals of properties outside of Weld
County, in metropolitan areas, and with no comparison of construction materials, land size, and land value versus
our property is not a fair basis to increase the valuation our property 54.5% to $85.00/SF.
2019 NOV for U.S. Engineering (R7537399) in Gateway Center
You asked for any evidence that I had regarding what our valuation should be. I presented your own 2019 NOV
for U.S. Engineering Account R7537399, our neighbor in the Gateway Center industrial park. This is a metal
building (similar in construction to our building), approximately 9,000 SF larger than our building, and sitting on a
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parcel of land 13.37 acres or 3.37 acres larger than ours. I expressed that your 2019 NOV valued this property
at approximately $78/SF. Here is a summary of your own 2019 NOV of this larger property in the Gateway
Center:
R7537399 (U.S. Engineering, Gateway Center Industrial Park)
Valuation Dollars:
SF 2017-2018 r 2019
109,494 $5,696,130 $7,343,293
582,340 $873,510 $1,164,680
Building
Land
Total
Increase
$1,647,163
$291,170
$6, 569.640
Total on Building 109,494 $6,569,640
58.507,973
$8,507,973
$1,938333
$1,938,333
Valuation/SF:
2017-2018 r 2019 Increase % Increase
$52.02 $67.07 $15.05 28.9%
$1.50 $2.00 $0.50 33.3%
$60.00 $77.70
$17.70 29.5%
Please note that despite the larger size in both building and land, this property is valued at less in total dollars
than our property. As I presented this, you expressed surprise and stated, "I'll have to look at this property and
review what I did with the valuation." I feel it is unfair for you to value our property at $85.00/SF, when this
neighbor with larger building size and construction, and with 3.37 additional acres, is valued at $7.30/SF less
overall (and $9.30/SF less for the building alone). You expressed that I was not looking at this "apples to apples"
and that I was not including an additional parcel of land which should be included with this property (see Account
R8944045). I expressed that I had reviewed the comparable "apples to apples" property (Account R5737399),
and that adding the additional 12 -acre parcel of land (on R8944045) would make the comparison even worse. At
this, you stated that you were willing to, "work with us," and offered to reduce our valuation to $78/SF (equal to
R7537399) and bring my protest to closure. I expressed that I was not ready to do this and needed to complete
additional research. Though the 2019 NOV is less than our property, I was not sure that your increase in building
valuation for R7537399 from $52.02/SF to $67.07/SF (a 28.9% increase), or the overall valuation increase to
$77.70/SF (a 29.5% increase) is even justified and right.
You then expressed that you felt you had, "undervalued [our] property in 2017-2018," and indicated that you were,
"seeking to correct this" with the 2019 valuation. In my opinion, it is not appropriate for you to penalize my
company in 2019 because you feel you undervalued our property in prior years. I will seek my own legal counsel
on this matter, but I do not believe it is lawful for you "catch-up" an assumed prior undervaluation in a future year
and to be punitive in this way.
Comparison Sales, Prior to 2017 -June 2018 Assessment Period
I then asked for actual sale comparisons that you used to determine our $85.00/SF valuation. You stated that
there were very few sales of properties our size during the assessment period of 2017 to June 2018, and thus you
looked at comparison sales up to five years earlier.
U.S. Engineering (R7537399 and R8944045), December 15, 2015 Sale:
One of these earlier sales was that of our neighbor property mentioned above in the Gateway Center industrial
park—U.S. Engineering (Account R7537399). This property sold along with the additional 12 -acre parcel of land
(Account R8944045) for a total price of $7,700,000 on December 15, 2015. I do not have a breakdown of the sale
price for the building and land components, but using Weld County's valuations of the land parcels for 2015-2016
illustrates this:
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Sale Price of R7537399 + R8944045, 12/15/2015 (U.S. Engineering, Gateway Center Industrial Park)
SF Sale Dollars Sale/SF
Building (R7537399) 109,494 $6,415,075 $58.59
Land (R7537399) 582,340 $727,925 $1.25 Based on 2015-2016 NOV
Land (R8944045) 522,720 $557,000 $1.07 Based on 2016 NOV
Total $7,700,000
Total on Building
109,494 $7,700,000 $70.32
As shown, this conservatively illustrates a price of $58.59/SF for the building alone. This also illustrates a
$70.32/SF total price for the building and land, when applied solely to the building square footage.
For some reason, the County did not assess this actual sale price as valuation of the property for the 2017-2018
assessment period. But for the 2019 NOV as shown above, the County is valuing the property at much higher
than this $7,700,000 actual sale price —$8,507,893 (with the building valuation alone increasing to $67.07/SF,
and the total property valuation increasing to $77.70/SF when applied to the building SF). The question then is —
has there been significant appreciation of commercial property prices in the County since this sale of U.S.
Engineering which occurred about a year before the 2017 -June 2018 review period?
Mountain States Rosen (R0029690), January 6, 2016 Sale:
In early January 2016, Mountain States Rosen purchased a large meat processing and packaging facility in
Greeley (R0029690). This sale occurred just three weeks after the U.S. Engineering sale mentioned above. Here
are the details of this sale:
Sale Price of R0029690, 1/6/2016 (Mountain States Rosen, Greeley, CO)
SF Sale Dollars Sale/SF
Building (R6926398) 100,198 $8,008,469 $79.93 Five Buildings
Land (R6926398) 756,202 $491,531 $0.65 Based on 2017 Land NOV for R0029690
Total $8,500,000
Total on Building
100,198 $8,500,000 $84.83
While the split of the sale price between building and land is not known, I've applied the County's 2017 land
valuation ($0.65/SF) to estimate the building valuation. Based on this assumption, the building sale price was
$79.93/SF alone, and the total sale price for building plus land was $84.83/SF when applied solely to the building
square footage. This actual sale price from early 2016 was basically applied as the County's valuation for property
taxes for 2017-2018. Then, for the 2019 NOV, the County increased the valuation by only 0.2% as shown below:
R0029690 (Mountain States Rosen, Greeley, CO)
Valuation Dollars: Valuation/SF:
SF 2017-2018 ' 2019 Increase 2017-2018 r 2019 Increase % Increase
Building 100,198 $8,008,460 $8,025,299 $16,839 $79.93 $80.09 $0.16 0.2% Five Buildings
Land 756,202 $491,531 $491,531 $0 $0.65 $0.65 $0.00 0.0%
Total $8,499,991 $8,516,830 $16,839
Total on Building 100,198 $8,499,991 $8,516,830 $16.839 $84.83 $85.00 $0.17 0.2%
Interestingly, the Mountain States Rosen total property is valued at $85.00/SF when applied to the building square
footage alone —the exact same valuation you have applied to our property for 2019. Perhaps you have
considered this prior sale comparison as justification to value our property at $85.00/SF? After further review this
property is not "apples to apples" with our property. For example, this property includes five buildings and sits on
a land parcel which is more than 7 acres larger than ours. More importantly, this is a full-fledged meat processing
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and packaging facility, with obvious infrastructure associated with this production. Prior to the sale, the property
was in operation by Swift doing the same work, and was sold as -is to Mountain States Rosen which purchased
the existing building and infrastructure and continued the same exact production. This wasn't just an empty
building sale in early 2016.
Review of this property shows very little appreciation in the County's valuation of the Mountain States Rosen
property over the three years since the actual sale in January 2016. So, this begs the question —why is the U.S.
Engineering property valuation increasing over its actual sale price, which sale occurred at about the same time
as the Mountain States Rosen sale? And, why is our property's 2019 NOV increasing by a whopping 54.5% from
the prior assessment, and valued at more than the neighboring U.S. Engineering 2019 valuation?
Comparison Sales in Weld County Within the 2017 -June 2018 Assessment Period
United Power (R6926398), Sale April 27, 2017:
During our meeting, I asked you for the specific property of similar size to our building, which sold in Weld County
during the 2017 -June 2018 assessment period (i.e., the property sale for which you referenced the 3rd party
appraisals mentioned above). You refused to provide me with this property and Account information stating, "this
is confidential information," but indicated that the property was located near Interstate 25 within Weld County. I
expressed that this is not confidential, but that such an actual sale would be "public record." I asked why you were
unwilling to provide this comparison, as such a sale within the County and within the assessment period should
be used in determining our 2019 valuation. You then indicated that that you were "aware that this property sold for
less than the valuation of our property" and that you, "are not required to disclose this" to me.
So in summary, you used 3rd party appraisals for properties located in metropolitan areas outside of Weld County,
with no comparison of construction, land size, or land value to my property (which you say were used to price an
actual sale within Weld County within the appraisal period) as justification for increasing my property valuation.
Then indicated that the Weld County property, "sold for less than the valuation" applied to my property, yet
refused to provide the details on the actual sale. This appears to be clear evidence of punitive valuation against
our company. At this, I stated that I would find this comparison sale myself. I did so, and here is the actual sale
information:
Sale Price of R6926398, 4/27/2017 (United Power)
SF Sale Dollars Sale/SF
Building (R6926398) 130,060 $8,052,155 $61.91
Land (R6926398) 333,670 $1,167,845 $3.50 Based on 2017 Land NOV for R6779768 and R0258195
Total $9,220,000
Total on Building
130,060 $9,220,000 $70.89
This property sold for $9,220,000 on April 27, 2017. No split of the actual sale price between the building and land
is available, but I have calculated the land value at $3.50/SF, equal to the County's 2017 assessment in the year
of the sale (and also equal to the County's 2017 land valuations of adjoining neighbor properties R6779768 and
R0258195). As shown, this calculates the building sale price alone at $61.91/SF. This is $14.46/SF below the
$76.37/SF valuation of our building alone.
After further review, this property is not "apples to apples" with our property but is, 1) located in a more
metropolitan area of the County with much higher land values than our rural location, 2) over 29,000 SF larger
than our building, 3) includes over 24,000 SF of finished office space, and 4) is masonry construction (versus our
metal building) as shown below:
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L!4 .suN ,viounlr,N
CUSTOM DOORS
United Power (R6926398)
Sun Mountain Realty (R7533799)
For this building alone to sell for an estimated $61.91/SF, and the total building and land to sell for $70.89/SF
when applied to the building square footage (with a land valuation much more expensive than ours) —no wonder
you did not want to provide the details on this comparison sale! After review of this sale comparison, it seems
unfair for us to receive a valuation of $85.00/SF, and our building valuation alone of $76.37/SF $14.46/SF more
than this superior building.
When this superior building sale alone at $61.91/SF is compared with the actual sale price of U.S. Engineering
(R7537399) in December 2015 for an estimated building value alone of $58.59/SF, it appears there has been little
or no appreciation of commercial property in the County over the past three plus years. In addition, as mentioned
above, the County's flat valuation of the Mountain States Rosen property (R0029690) since its sale in January
2016, appears to confirm this.
CR 33 (R8947590, R8947591, and R8947589), Sale January 27, 2017:
Another sale in the County within the 2017 -June 2018 assessment period was a 3 -parcel property (R8947590,
R8947591, and R8947589) in Ault, Colorado, purchased by CR 33, LLC on January 27, 2017. The three parcels
of land total over 28 acres, and the properties appear to include four buildings at the time of the sale —one
building at 47,800 SF, and three smaller buildings at 16,000 SF, 5 960 SF, and 13,500 SF. The largest building is
metal frame construction, similar to ours. No breakdown between the building and land is given, but applying the
2019 NOV for the land illustrates this sale value:
Sale Price of R8947590. R8947591, and R8947589, 1/27/2017 (CR 33, Ault, CO)
SF Sale Dollars Sale/SF
Buildings 83,260 $4,542.473 $54.56 Four Buildings Total; Two Buildings on R8947591 for 2019 NOV Did Not Exist at Time of Sale
$1,927,527 $1.50 Based on 2019 Land NOV for R8947590. R8947591; and R8947589
Land 1,285 018
Total $6,470,000
Total on Building
83,260 $6.470,000 $77.71
Note that total of three land parcels and four buildings sold for $6,470,000. The building sale price alone is
calculated at $54.56/SF. Again, this is significantly lower than our $76.37/SF valuation for 2019, for our larger
building, with similar construction (metal frame), in a rural area with similar land valuation.
It appears that two new metal buildings 22,500 SF/each were constructed on Account R8947591 since the sale in
January 2017. With this, the County increased the 2019 NOV for all three parcels to a total of $7,192,193. This
does not reflect property appreciation since the time of the sale, but rather expansion and increased valuation
associated with the new buildings.
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III!4 Sum mcounlrlN
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Summary, Proposed 2019 Valuation
After research and review of the properties documented in this letter (and others, including previous sales and/or
the County's valuation of 1101 Fort R5291786, JBS R6779562, Bach Composite R5291786, etc.), it appears that:
• Actual sales of similar and superior properties to ours, within the 2017 -June 2018 assessment period and
prior, have occurred at prices which would increase the valuation of Sun Mountain Realty, LLC from prior
assessments, however
• Little or no appreciation of commercial property values has occurred since the time of these actual sales
■ Comparisons used to value Sun Mountain Realty, LLC are not always fair (and perhaps not even legal)
and are not "apples to apples" with our property
■ Information was intentionally withheld which would weaken the County's valuation of Sun Mountain
Realty, LLC
• The 2019 NOV for Sun Mountain Realty, LLC indicates a punitive assessment, much greater than actual
sales values, assessed valuations, or appreciation of similar commercial properties in the County, and
indicates an effort to "catch-up" for prior assumed under -assessments
With this said, I believe a proper and accurate valuation of Sun Mountain Realty, LLC is approximately equal to
the December 2015 sale of the neighboring U.S. Engineering property (R7537399, without the additional 12 -acre
parcel on R8944045). And, I see no appreciation in our land value in the County from the evidence I have
presented above. As a matter of fact, in my research I reviewed several 2019 land assessments from the County
which declined in valuation from the previous assessment. Thus, I believe our property should be valued at the
following for 2019 (with comparison to the 2017-2018 assessment):
Proposed Valuation
Building
Land
Total
Total on Building
Valuation Dollars:
SF 2017-2018 r 2019
100,943 $4,898,474 $5,908,194
435,594 $653,391 $653,391
$5,551,865 $6,561,585
100,943 $5,551,865 $6,561,585
Increase
$1,009,720
$0
$1,009,720
$1,009 720
Valuation/SF:
2017-2018 r 2019 Increase % Increase
$48.53 $58.53 $10.00 20.6%
$1.50 $1.50 $0.00 0.0%
$55.00
565.00
$10.00
18.2%
This shows a total proposed valuation of our building and land of $6,561,585, or $65.00/SF when applied to the
building square footage alone. This is an 18.2% increase over the prior assessment, and again is approximately
equal to the actual sale of the U.S. Engineering property R7537399 in December 2015. This values our building
alone at $58.53/SF—a 20.6% increase from the previous assessment, and slightly lower than the superior
building sale of United Power (R6926398) during the assessment period. This is also several dollars/SF more
than the actual sale price of the CR 33 buildings in Ault, Colorado (R8947590, R8947591, and R8947589) during
the assessment period, including the 47,800 SF metal building which was part of this sale. I believe this is a fair
and accurate valuation of our property.
I am obtaining my own legal counsel regarding the County's 2019 NOV, and I am also in process of obtaining a
3rd party appraisal of our property to further defend this proposed value. I look forward to your Notice of
Determination regarding this protest. I will have the legal advice and 3rd party appraisal ready if I need to go
before the County Board of Equalization to further defend our company.
Ed Wright
Sun Mountain Realty, LLC
(970) 532-2105, x30
Page 6
July 26, 2019
Petitioner:
SUN MOUNTAIN REALTY LLC
140 COMMERCE DR
BERTHOUD, CO 80513-9148
CLERK TO THE BOARD
PHONE (970) 400-4226
FAX (970) 336-7233
WEBSITE: www.weldgov.com
1150 O STREET
P.O. BOX 758
GREELEY CO 80632
Agent (if applicable):
RE: THE BOARD OF EQUALIZATION 2019, WELD COUNTY, COLORADO
NOTIFICATION OF HEARING SCHEDULED
Docket 2019-2644, AS0103 Appeal 2008224355 Hearing 8/1/2019 9:00 AM
Account(s) Appealed:
R7533799
Dear Petitioner(s):
The Weld County Board of Equalization has set a date of August 1, 2019, at or about the hour of
9:00 AM, to hold a hearing on your valuation for assessment. This hearing will be held at the Weld
County Administration Building, Assembly Room, 1150 O Street, Greeley, Colorado.
You have a right to attend this hearing and present evidence in support of your petition. The Weld
County Assessor or his designee will be present. The Board will make its decision on the basis of
the record made at the aforementioned hearing, as well as your petition, so it would be in your
interest to have a representative present. If you plan to be represented by an agent or an attorney
at your hearing, prior to the hearing you shall provide, in writing to the Clerk to the Board's Office, an
authorization for the agent or attorney to represent you. If you do not choose to attend this hearing,
a decision will still be made by the Board by the close of business on August 5, 2019, and mailed to
you within five (5) business days.
Because of the volume of cases before the Board of Equalization, most cases shall be limited to 10
minutes. Also due to volume, cases cannot be rescheduled. It is imperative that you provide
evidence to support your position. This may include evidence that similar homes in your area are
valued less than yours or you are being assessed on improvements you do not have. Please note:
The fact that your valuation has increased cannot be your sole basis of appeal. Without
documented evidence as indicated above, the Board will have no choice but to deny your appeal.
If you wish to discuss your value with the Assessor's Office, please call them at (970) 400-3650. If
you wish to obtain the data supporting the Assessor's valuation of your property, please submit a
written request to assessor@weldgov.com. Upon receipt ofyourwritten request, the Assessor will
notify you of the estimated cost of providing such information. Payment must be made prior to the
Assessor providing such information, at which time the Assessor will make the data available within
three (3) working days, subject to any confidentiality requirements.
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
Esther E. Gesick
Clerk to the Board
Weld County Board of Commissioners
and Board of Equalization
cc: Brenda Danes, Assessor
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