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Home My WebLink About20192929.tiffAugust 2, 2019 Petitioner: GREELEY CAR WASHES LLC 3106 W EISENHOWER BLVD LOVELAND, CO 80537-3177 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 2019-2929 Appeal 2008224848 Hearing 8/2/2019 1:30 PM 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 R6844297 Adjust - Denied in Part $750,000 $430,000 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 .QO l9 -a9 c79 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 Esther E. Gesick Clerk to the Board Weld County Board of Commissioners and Board of Equalization cc: Brenda Dones, Weld County Assessor 1. Subject properties assessed at 300-400% higher than last assessment. Average commercial appreciation was 15% per year according to mr. riddick. 2. The previous assessments were correct because they reflected the actual open market sales of all 4 of these properties....without business value a part of the equation. 3. Assessment by 'per bay' approach makes no sense. If it did, what would a 1 bay tunnel wash be worth? 4. 4 large value comps from successful operators that county is using to justify our higher assessments contain a very high amount of business value. County is assuming all value of sale is real estate, but it is not! 5. Car Washes are businesses. It's a business that requires a special use building, and specialized equipment. Sales of car washes are entirely based on their income potential. But that doesn't mean the sale price is entirely real property. 6. Car Washes sell at a typical cap rate of 13-15% after inputting a proforma expense for owner management and labor. 7. Car Washes are not owner user- nobody buys a car wash for their own personal use. This means they are income properties, but they are not passive rental properties. Income is generated by the operation of the business and use of specialized equipment. 8. There are few if any real leases of car washes because the buildings are special use. If you were to lease out a car wash, and the lessor ruins the reputation of the business, the landlord is left with a worthless building. They would have to rebuild the markets trust and faith all over again to get their investment back. 9. And vice versa, a lessee wouldn't want to lease the business and improve it, as they wouldn't be able to sell it. The business is tied to a physical location. You can't really move the business to another location. 10. Most lease agreements in car wash business are for the intended purpose of reducing tax and reducing liability. Typically common owners/members 11. When a car wash with high business value sells, the sale should be a cumulation of several components: sale price= land value + depreciated building value + depreciated equipment value + business value. 12. Since business value is not typically reported to the county in sale transactions, the county would assume the entire sale amount is for taxable real property, but it isn't. Business value should be derived by using the cost approach 13. The real estate value is proven by lower value sales comparisons which have no business value at the time of sale. These sales reflect the actual land value as proven by the open market when an investor is weighing the highest and best use of the land and structure. 14. Our 4 properties being contested are all examples of real estate value sales. Some improvement into the properties (concrete, asphalt, paint) are increases to the real value of the property. The increase in business generated is a function of the operation of the business, so more business does not mean more real property value. It means more business value. 15. A 15% per year reflection of Greeley/Evans area appreciation would be fair, with additional value to reflect the improvements to the property which amounted to around 40 -50k per location the year after purchase. 16. We have pulled records of all car washes in weld county and feel most car washes are over valued for property value. It appears most car washes had a jump in value based on the assumption of value from the aforementioned high business value sales. 17. The county requested fmancials to make determination, but we decimed because we were told they would use a cap rate reflective of other commercial properties But that doesn't work You wouldn't value a strip mall on how many pizzas the pizzeria tenant sold that year . Or how much interest the bank tenant made next door to the pizzeria The same holds true for a car wash business. The more vehicles processed at the location is due to the business operations The income is irrelevant to the real property value Valuation Report of Commercial Property for County Board of Equalization GREELEY CAR WASHES LLC Petitioner vs. Weld County Assessor's Office Respondent Docket Number: 2019-2929 Parcel Number: 0959-14-4-03-008 Schedule Number: R6844297 Appeal Number: 2008224848 Date: 8/2/2019 Time: 1:30 PM Board: 1 Prepared By Wade Melies Assessor's Office Staff Appraiser Assessor's Indicated Value COMMERCIAL ► 5 ,000 TOTAL: $575,000 r $115,000 per Bay Salient Facts and Conclusions Purpose of Appraisal To determine Market Value as of 1/1/19 based on an appraisal date of 6/30/18. Property Rights Appraised Unencumbered fee simple interest. Location 2460 35TH AVENUE CT GREELEY Land Area 18,362 Property Type Commercial Imp ## Bay Quality Occupancy 1 5 Average Car Wash Built As Car Wash - Self Service Value Indications: Cost Approach Market Approach Income Approach Class Year Built Bays Stories Masonry N/A 575,000 $570,000 1996 5 1 $115,000 per Bay $114,000 per Bay Final Value $575,000 Or $115,000 per Bay Improvement # Quality Total SF Blt As Description Car Wash - Self Service 1 Average 2,760 Class Masonry Car Wash - Automatic Masonry • II Occupancy Description Car Wash Year Year Built Remodeled 1996 N/A N/A 1996 1E. I)' CAR WASH First Floor 27Eall 0 SQ. ft. SAT 1396 WL HEIGH T ;CLA5S- C HEATED FLOORS ALL CONCRETE PAVING 15O' SELF MRC- MAD DAYS ISO' 12.0' EQUIP RODS 6.E Occupancy % 100% # of Stories Bays mpati 3e Or NJTOTIt• IMIISH S*'r' 910' 4 1 The subject property is a 5 -bay self-service car wash with 4 manual bays and 1 auto bay. It was built in 1996, is in average condition and has been maintained. The property was purchased along with two other properties on 1/30/2014 for $1,300,000 or $68,421 per bay. It was reported at the time of sale that all three properties were closed and required repairs due to freezing. Map of Subject Aerial View Neighborhood Mapl .14 �t � v L M cif q ti y, •,1 I .f Iv 4sigrie1 STlN. ,r1. Cost Approach Summary The Assessor is currently using Marshall and Swift cost tables for the cost approach of commercial properties in Weld, which has been approved by the Division of Property Taxation to be utilized by Colorado Assessors. The Cost Approach was considered but was deemed not applicable for the subject due to the difficulty in accurately determining physical depreciation for commercial buildings over ten years old. Therefore, a cost analysis was not included in this report Market Approach Summary Real Property for the tax year 2019 must be valued utilizing data for the period one and one-half years immediately prior to June 30, 2018. If comparable valuation data is not available from such one and one- half year period to adequately determine the level of value for a class of property, the period of five years immediately prior to June 30, 2018 shall be utilized to determine the level of value. The Assessor has appropriately considered the Market Approach to value for the property on appeal. The Sales Comparison Approach was considered in developing a market value for the Subject. Sales used to establish a market value for the tax year 2019 are from January 1, 2017 through June 30, 2018. Pursuant to 39-1-104 (10.2)(c) C. R. S., the Assessor may utilize sales five years prior to June 30, 2018 to establish the proper value. All sales have been confirmed and verified through transfer declarations as well as interviews with buyers, sellers or their representatives to the sale. All sales used are arm's length transactions, and considered to be the most comparable properties sold in relationship to the Subject property. Market Comparables Parcel Number Situs Acct # Occupancy Sale Date Sale Price Adj SP ## of Bldgs Bays Yr Built Per Bay Comparable 1 9716-10-0-018 505 Taft Hill Rd, Fort Collins R0088501 Car Wash 1 Comparable 2 0959-11-1-24-020 1005 39th Ave., Greeley R8750400 Car Wash 1 Comparable 3 8720-21-8-005 2102 Midpoint Dr, Fort Collins R1604943 Car Wash 1 Comparable 4 1353 WATER VALLEY PKWY WINDSOR R3914405 Car Wash 1 02/17/2017 $390,000 $390,000 4 1960 $97,500 09/25/2017 $900,000 $900,000 7 1994 $128,571 08/22/2016 $659,800 $659,800 6 2004 $109,967 09/25/2013 $500,000 $50 0,0 00 4 2006 $83,333 Comp 1 was adjusted for its age and number of bays as compared to the subject. Comp 2 was adjusted for the number of bays and is the most similar. Comp 3 was adjusted for the number of bays than the subject Comp 4 was adjusted for being an older sale and more bays. It was also adjusted for location. It has good visibility, however, one has to drive around almost 3 blocks for access. Based upon investigation and analysis, it is the opinion of the appraiser that the value of $575,000 or $115,000 per bay accurately reflects the market value of the subject property. Value As Indicated By Market Approach $575,000 or $115,000 per bay Comparative Sales Grid PROPERTY Comments Account # Address w City Grantor Grantee Price w Sale' Sale Price per Bay IVALUE ADJUTMENTS Sale Date Location Land Size Number of Bays Location Age Condition NET ADJUSTMENTS Adjusted Price PSF Subject Car Wa.sh R6844297 ,x:45 0 35th Ave CI Greeley DESCRIPTION Average 18,362 5 Greeley 1996 Average Comp el Car Wash 8008850/ 505 STaft Hill Rd Ft Collins Osprey Investments LLC Hivue Resources LLC $390,000 $97,500.00 DESCRIPTION 211712017 Average Adjustment 15,553 4 -5 • similar 1960 Average 10% • 5% $102,000.00 Comparables PrizeI SF Range Comparables Price! SF Median Comparables Price! SF Average $410,2,000 1100,500 $113,500 $115tOOO1 per bay selected $141,000 S575t0O0 Comp 2 Car Wash R8750400 1005 39th Ave Greeley Rrovidence n ce Land LLC Shining Bright LLC $900,000 $128,571 O0 DESCRIPTION Adjustment 9/.25/.201.7. Average 27,878 7 10% similar 1994 Average 10% $141,000.00 Comp 2 Car Wash Corrnp 3 RI604943 2102 Midpoint Dr Ft Collins United Fidelity Bk Car Wash R3914405 1353 Water Valley Timberline Car Wash LLC $659,800 1109,966.5: Windsor ater Works Investments Li aleVs Auto Detailing LL $500,000 vat DESCRIPTION Adjustment 8/.2.21.2015 Average 38,768 5 5% similar 2004 Average $115,000.00 5©' $83,333.33 DESCRIPTION Adjusterna! 9/25/.2013 Average • 3.2,844. 6 5% inferior 5% 2006 Average 15% $96,000.00 Sale Comparable Map gu Et. _ Comp 1 S Comp 3 Ind a us Swat Papa ins Love et 4 foss.' die I Pia rumPete fir w 9 'IlilAPId imam 1 roar nor; 04 is, e Comp 2 14 'wsIfaarif 8140 8 (AWe 'B, Warn 1=� CII Subject ' ty :Pima" irk eiti a C 5L Income Approach To Value The basic steps in the Income Approach to value for commercial properties in mass appraisal are based on a landlord -tenant situation and not on the income of the actual business. In using this approach, it eliminates the possibility of valuing management as opposed to the potential income of the structure. This is the proper method Assessor's must utilize through the Directives of the Division of Property Taxation. Income Approach Steps 1. Estimate potential gross income to the landlord. 2. Deduct typical vacancy and collection loss. 3. Add additional miscellaneous income. 4. Determine typical landlord operating expenses. 5. Deduct operating expenses to determine the landlord's operating income. 6. Determine a proper capitalization rate. 7. Capitalize the net income into an estimated property value. Research has been done by the Assessor to determine the typical rent by location, type of structure and the property use. The Weld County Assessor's office has also researched the typical landlord expenses, additional income based on the type of business, and vacancy and collection loss. An Income Approach has been completed for the subject. The Weld County Assessor has appropriately considered the Income Approach to value for the Subject property on appeal. The Assessor has gathered income information from local commercial properties for the time frame of January 1, 2017 through June 30, 2018. This information, combined with statewide and industry -wide data, is used to determine typical income and expenses for various property types. In conclusion of the Income Approach, the Assessor has considered both groups of data and has put more emphasis on the local factors and data than the state and national data. This information was then applied to the subject property to arrive at an appropriate Income Approach Value. Total Value by Income Approach $570,000 or $114,000 per bay 7 bay Car wash in Greeley rents for $11,714 annually per bay 5 bay car wash in Evans rents for $14,100 annually per bay Both properties the owner pays the property tax tenant is responsible for eveything else PGI $130000 Vac 2% EGI Expense Mngt' Rsvr Total 5% 2% MDl Assmnt Mill Levy Cap Rate 29% 0.083237 8% Eff. Cap $260 $12, 740 $637 $2548IJ $892 $11,848 0.104 indicated Value $114,000 per bay rounded Conclusion Real property for tax year 2019 must be valued utilizing the level of value for the period of one and one- half years immediately prior to July 1, 2018. Except that, if comparable valuation data is not available from such one -and one -half -year period to adequately determine the level of value of a class of property. The period of five years immediately prior to June 30, 2018 shall be utilized to determine the level of value. Said level of value shall be adjusted to the final day of the data gathering period. Changes occurring between base years are not to be accounted for until the following level of value is implemented, other than additions, change in use, detrimental acts of nature, damage due to fire, etc., or creation of a condominium, or any new regulations restricting or increasing the use of the land, or a combination thereof. {39-1-104(11)(b)(1) C. R .S.} The subject property has been classified as Commercial Property for assessment purposes. Commercial property value shall be determined by appropriate consideration of the Cost Approach, Market Approach, and Income Approach to value. {39-1-103(5)(a) C. R. S.} The Assessor has considered all three approaches to value for the subject parcel on appeal. Final Reconciliation After consideration of the cost, market and income approaches, it is the Weld County Assessor's opinion that the value of $750,000, most accurately reflects the value of the subject property in Weld County for the 2019 tax year. Cost Approach Market Approach Income Approach N/A $575,000 $570,000 $115,000 per bay $114,000 per bay Assessor's Indicated Value COMMERCIAL $575,000 TOTAL: $575,000 Or $115,000 per bay 505 S Taft Lemay Car Wash Fort Collins, CO Car Wash Building Research Complete Hill Rd 80521 of 1,936 SF Sold on 2/17/2017 for $390,000 - i` .- - .- _ buyer 3� - Hivue Resources LLC g i) % I- ,: . t-- `- H - . r cAR'NASH I 4 ". .4-14 • -- 4 `3" re_____ ittI L .` T- Y , 4 y1 y Ja t 1' • .t;4 seller,,,. a - - _ - Joel M Painter II & Lori Skrdlant 412 Briarwood Rd Fort Collins, CO 80521 - - . �: . . (970) 493-4008 - vital data Escrow/Contract: 75 days Sale Price: $390,000 Sale Date: 2/17/2017 Status: Confirmed Days on Market: 129 days Building SF: 1,936 SF Exchange: N.o Price/SF: $201.45 Conditions: - Pro Forma Cap Rate: - Land Area SF: 16,553 Actual Cap Rate: - Acres: 0.38 Down Pmnt: $390,000 $/SF Land Gross: $23.56 Pct Down: 100.0% Year Built, Age: 1960 Age: 57 Doc No: 20170011751 Parking Spaces: 19 Trans Tax: $39 Parking Ratio: 1/1000 SF Corner: No FAR 0.12 Zoning: LMN Lot Dimensions: - No Tenants: 1 Frontage: - Percent Improved: - Tenancy: Single Submarket: Fort Collins/Loveland Comp ID: 3840512 Map Page: - Parcel No: 97161-00-018 Property Type: Specialty income expense data Listing Broker Expenses - Taxes $8,953 SVN I Denver Commercial - Operating Expenses 2032 Lowe St Fort Collins, CO 80525 Total Expenses $8,953 (970) 207-0700 Jerry Chilson Buyer Broker SVN I Denver Commercial 2032 Lowe St Fort Collins, CO 80525 (970) 207-0700 Jerry Chilson financing prior sale Date/Doc No: 3/30/2007 Sale Price: $600,000 ComplD: 1282294 Copyrighted report licensed to Weld County Assessor's Office - 611800. 7/30/2019 Page 1 1005 39th Ave The Wash at Market Greeley, CO 80634 Car Wash Building - Research Complete Square of 3,917 SF Sold on 9/25/2017 for $1,640,000 buyer Bee Clean Auto Wash 1901 59th Ave Greeley, CO 80634 (970) 381-6507 '� 71 .1 ' L ! s �- ---_ I. Eii i es 1IIN a .i 4 j= LI • lit A. seller .b_ ' !_ Bruce J Vandesteeg 5169 Arrowhead Dr Greeley, CO 80634 (970) 397-4902 vital data Escrow/Contract: Sale Days on Market: Exchange: Conditions: Land Area $/SF Land Year Built, Parking Spaces: Parking Lot Dimensions: Frontage: Tenancy: Comp Date: Acres: Gross: Ratio: Age: FAR - 9/25/2017 343 N.o Business SF: 27,887 0.64 $58.81 1994 10 2.55/1000 0.14 - - Single ID: 4028905 days Building Value Included Pro Forma Actual Down Age: 23 SF No Percent Property Sale Price/SF: Cap Cap Pct Doc Trans Tenants: Improved: Submarket: Map Parcel Price: Status: Rate: Rate: Pmnt: Down: Tax: Corner: Zoning: Page: Type: $900,000 Confirmed SF: 3,917 $229.76 - - $440,000 26.8% No: 4337942 $164 No - 1 - Weld - No: 095911124020 Specialty after business value adjustment SF County income expense data Listing Broker Expenses - Operating - Expenses Taxes $18,561 Bruce J Vandesteeg 5169 Arrowhead Dr Greeley, CO 80634 Total Expenses $18,561 (970) 397-4902 Bruce Vande Steeg Buyer Broker No Buyer Broker on Deal financing prior sale 1st Bank of Colorado Bal/Pmt: $1,200,000 Date/Doc No: 12/26/2012 Sale Price: $1,100,000 ComplD: 2653655 Copyrighted report licensed to Weld County Assessor's Office - 1075219. 8/1 /2019 2102 Midpoint Fort Collins, Car Wash Building Research Complete CO Dr 80525 of 3,887 SF Sold on 8/22/2016 for $675,000 - F y_ — e ... Cfda - buyer. Wash Me! Car Wash• 3106 W Eisenhower Blvd Loveland CO 80537 (970) 663-3100 � �. � ra •.1 - 1 ,�F if { G �il�d n II I �'�1-j, - A`-�, � t p —j I - f ! '��y. 713r; _ -ss. p. ti.4 Q : +. __ r a � � .9" ': rJ Jrl at J itw11J' 111 n u .�Y VJ y� �Z r •r S' � { . II 4 u=r �� Pale seller R e Y h to United Fidelity Bank (Fsb) 2480 W Alameda Ave Denver, CO 80223 (303) 623-8888 vital data Escrow/Contract: Sale Days on Market: Exchange: Conditions: Land Area $/SF Land Year Built, Parking Spaces: Parking Lot Dimensions: Frontage: Tenancy: Comp Date: Acres: Gross: Ratio: Age: FAR - 8/22/2016 - Building No Bulk/Portfolio Sale, Business ... Pro Forma SF: 38,882 Actual 0.89 Down $17.36 2004 Age: 12 10 2.57/1000 SF 0.10 - Percent - Single ID: 3695649 Property Sale Price/SF: Cap Cap Pct Trans Improved: Submarket: Map Parcel Price: Status: Rate: Rate: Pmnt: Down: Doc Tax: Corner: Zoning: Page: Type: $675,000 Confirmed SF: 3,887 $173.66 - - $100,000 14.8% No: 20160055506 - No E 59.7% Fort - No: 87202-18-005 Specialty SF Collins/Loveland income expense data Listing Broker No Listing Broker on Deal Buyer Broker No Buyer Broker on Deal financing 1st Guaranty Bank Bal/Pmt: $575,000 Copyrighted report licensed to Weld County Assessor's Office - 611800. 7/30/2019 Page 2 1353 Water Hosier Car Windsor, CO Car Wash 9125/2013 for Valley Pky Wash - Water Valley Village 80550 (Neighborhood Center) Building $500,000 - Research Complete of 6,486 SF Sold on _ - - buyer Rowleys Auto 753 Champion Windsor, CO80550 Detailing LIc Dr - _ ' �,? �posIth .I:`. wi--Fes-"'"' - -� seller Water Valley Land Company 1625 Pelican Lakes Pt Windsor, CO 80550 (970) 686-5828 v Jt• 6 _ vital data Escrow/Contract: Sale Days on Market: Exchange: Conditions: Land Area $/SF Land Year Built, Parking Spaces: Parking Lot Dimensions: Frontage: Tenancy: Comp Date: Acres: Gross: Ratio: Age: FAR - 9/25/2013 - No - SF: 33,977 0.78 $14.72 2006 - - 0.19 - - Multi ID: 2862238 Building Pro Forma Actual Down Age: 7 No Percent Property Sale Price/SF: Cap Cap Pct Doc Trans Tenants: Improved: Submarket: Map Parcel Price: Status: Rate: Rate: Pmnt: Down: Tax: Corner: Zoning: Page: Type: $500,000 Full SF: 6,486 $77.09 - - - - No: 3966782 - No Commercial 1 71.6% Weld - No: 080728152003 Specialty Value SF County income expense data Listing Broker Buyer Broker financing prior sale 1st Advantage Bank Bal/Pmt: $501,379 Date/Doc No: 12/31/2012 Sale Price: $400,000 ComplD: 2653633 Copyrighted report licensed to Weld County Assessor's Office - 611800. 7/30/2019 Page 3 NOTICEOF D111�INATION Brenda Danes Weld County Assessor 1400 N 17th Ave Greeley, CO 80631 JUL 1 5 2019 WELD COUNTY COMMISSIONERS Date of Notice: 6/25/2019 Telephone: (970) 400-3650 Fax: (970) 304-6433 Office Hours: 8:00AM — 5:00PM LEGAL DESCRIPTION/ PHYSICAL LOCATION ACCOUNT NO. TAX YEAR TAX AREA R6844297 2019 0600 OR GV2R-1 L1 AT 2460 35TH AVENUE GATEWAY CT VILLAGE GREELEY 2ND REPL - - - GREELEY 3106 LOVELAND, W EISENHOWER CAR CO WASHES 80537-3177 BLVD LLC PROPERTY CLASSIFICATION ASSESSOR'S VALUATION ACTUAL VALUE PRIOR TO ACTUAL VALUE AFTER REVIEW REVIEW COMMERCIAL 750,000 750,000 TOTAL 750,000 MONO The Assessor has carefully studied all available information, giving particular attention to the specifics included on your protest. The Assessor's determination of value after review is based on the following: CMO6 - The Assessor staff has requested additional information to prope J'y review your property's value. Because we have not received this 'Information, we have no choice but to deny any adjustments. If you disagree with the Assessor's decision, you have the right to appeal to the County Board of Equalization for further consideration, § 39-8-106(1)(a), C.R.S. The deadline for filing real property appeals is July 15. The Assessor establishes property values. The local taxing authorities (county, school district, city, fire protection, and other special districts) set mill levies. The mill levy requested by each taxing authority is based on a projected budget and the property tax revenue required to adequately fund the services it provides to its taxpayers. The local taxing authorities hold budget hearings in the fall. If you are concerned about mill levies, we recommend that you attend these budget hearings. Please refer to last year's tax bill or ask your Assessor for a listing of the local taxing authorities. Please refer to the reverse side of this notice for additional information. Agent (If Applicable): 2019-2929 15 -OPT -AR PR 201-08/13 R6844297 P5oio3 3 430/ OO APPEAL PROCEDURES County Board of Equalization Hearings will be held from July 25th through August 5th at 1150 0 Street. To appeal the Assessor's decision, complete the Petition to the County Board of Equalization shown below, and mail, file online, or deliver a copy of both sides of this form to: Weld County Board of Equalization 1150 0 Street, P, O. Box 758 Greeley, CO 80631 Telephone: (970) 356-4000 ext, 4225 Online: www.co.weld.co.usla ppslicboej To preserve your appeal rights, your Petition to the County Board of Equalization must be postmarked or delivered on or before July 16 for real property — after such date, your right to appeal is lost. You may be required to prove that you filed a timely appeal; therefore, we recommend that all correspondence be mailed with proof of mailing. You will be notified of the date and time scheduled for your hearing. The County Board of Equalization must mail a written decision to you within five business days following the date of the decision. The County Board of Equalization must conclude hearings and render decisions by August 5, § 39-8-107(2), C.R.S. If you do not receive a decision from the County Board of Equalization and you wish to continue your appeal, you must file an appeal with the Board of Assessment Appeals by September 10, § 39-2-125(1)(e), C.R.S. If you are dissatisfied with the County Board of Equalization's decision and you wish to continue your appeal, you must appeal within 30 days of the date of the County Board's written decision to ONE of the following: Board of Assessment Appeals 1313 Sherman Street, Room 315 Denver, CO 80203 (303) 866-5880 www.dola.colcrado.c'ov!baa Binding Arbitration For a aist of arbitrators, contact the County Commissioners at the address listed for the County Board of Equalization. If the date for filing any report, schedule, claim, tax return, statement, remittance, or other document falls upon a Saturday, Sunday, or legal holiday, it shalt be deemed to have been timely filed if filed on the next business day, § 39-1-120(3), C.R.S. District Court Contact the District Court in the County where the property is located. See your local telephone book for the address and telephone number. PETITION TO COUNTY BOARD OF EQUALIZATION What is your estimate of the property's value as of June 30, 2018? (Your opinion of value in terms of a specific dollar amount is required for real property pursuant to * 39-8-106(1.5), C.R.S.) What is the basis for your estimate of value or your reason for requesting a review? (Please attach additional sheets as necessary and any supporting documentation, i.e., comparable sales, rent roll, original installed cost, appraj. 1, etc.) r reQuS cynic r. ,, Quo C ON I, the undersigned owner or 0 of the property identifie ' above, a : i that the statements contained herein and on anyat,pacren o are true ani.1 complete. .igf1eture; Email Address YraSrECY Q72_)k1A3ioo elep'crSe Number I Attach letter of authorization signed by property owner. Date 15-DPT-AR PR 207-08/13 R6844297 Ginther a l Y lo: Subject: Jeromy Ginther <washrnasters@gwestoffice.net> Friday, June 28, 2019 1:02 PM 'assessor@weldgm.com' FW: Weld County Valuation Protest Wash Me! Car Washes/ Greeley Car Washes LLC Dear Brenda Dones — Weld County Assessor: Wdeterminations and we were surprised to see explanation Cali OG- That you had e received our new Notice of elow which was sent to Mr. requested addi tional information and that we did not supply it. Please see the thread h all four properties 80189195, R1049396,R6844297 and R0269395 in which we Melies and Mr. Reddick in reference to p P n earlier and they did not respond to furnished the requested information that they asked for from our meeting in perso the email. Respectfully,, Rita Ginther Greeley Car Washes LLC. From: Jeromy Ginther[mailto:washrnasters@gwestoffice.net] Sent: Wednesday, May 22, 2019 10:26 AM To: 'wmelies@weldgov.com' <wrnelles@weldgo.corn> Cc: ltreddick@weldgov.com1<treddick@weldgov.cam> Subject: Weld County Valuation Protest WashMe! Car Washes Dear Mr. Melies and Mt Reddick, response to our conversation and to protest valuation of 4 In � prior R0269395), I would • Weld County 049396, 8018915, .6 4 2 7,1��at�o�xs �n like to provide rovide insight on how ,a Car Wash business (as it is a unique type of business) is valued and how it should be valued for county assessment tl the four properties listed are valued at 200% to 300% purposes. Currently, properties over prior year assessments! The logic for this was based on comparable sales that have happened in. Weld County. The sales that are being used to generate the value assessments for the above properties are not �a fair basis of value for several reasons which 1 will to lay out below: p 1. Car mashes are a special case. They are a special use building which is not adaptable table to any other use without a tremendous refit cost as they are � complying off, -.'structures not housing internal space or compl g with energy code. The entire structure is special purpose resulting in a risk of the owner in the case that the car wash use isn't the highest and best « e of the land that it sits on, So, the Car Wash value is a function of its business value. It is a balance of 1. land location, 2. special ,e traction which is at - risk to the owner, and 3. the equipment items necessary � run the car wash business. When a sale happens in the car wash � r to world, its value is a combination of the three items listed above. &rtainly, it is not all real estate value or there wouldn't be such a huge difference in actual sales price (as the county has record of). If it was, there wouldn't be any way to justify a 200,000.00 sale and a 1, 600, 000.00 sale on properties that are otherwise the same. And, the value of the car wash isn't based on location a which is evidenced by several car wash locations selling for 1 million plus, then later selling for less than a quarter of that. It is a hnetion of the owners effort and ability to run a very difficult business which results in positive customer flow at the location. To look back and assign that sale as a function of real estate is an error. The real estate value of the car wash never changed except in ratio with the surrounding land values within the trade area. After all, if the highest and best use is not a car wash, the developer has to level the building and redevelop! So, it follows that there are 2 types of sales that happen for car washes: 1) business value, and real estate value. The county should be able to differentiate the two and then find reasonable answers for the varying price descrepancies between otherwise similar sales. 2. Using revenues and expenses and deriving "real property" value based on a cap rate is appropriate when there is a landlord/tenant situation, however, all car washes in the area are owner -operated. Since they are owner operated, the expenses associated with managing the business and labor for operating the business aren't included in the income/expense reports. However, car washes do sell as a function of the revenue stream they generate, but it is in no way similar to sales of cotmnercial real estate like strip malls or similar in which rents are the source of revenue for the landlord. For example, if a strip mall had 3 tenants: a shoe store, a pizzaria, and a bank, would the amount of pizzas sold, shoes sold, and interest received have anything to do with the value of the strip mall? So due to to this, typical car wash revenue based sales are typically sold in the range of a 14% - 20% cap rate AFTER a reasonable number is included in the expenses for owner/operator time and labor to run it and maintain it. Then, when sold, the sale should be broken down as proportions for Real estate, personal property (equipment), and business value. The three of those add up to the sum of the sale. It should not be considered real estate only - because it isn't. There are sufficient real estate and personal property combination sales (like the ones we are refuting here, and along with several others in northern Colorado) that reflect the land and depreciated building and equipment value appropriately. The difference is the going concern - or business value - and that is not supposed to be taxes as real property or personal property. It is a separate intangible value that reflects that efforts of the owner in running their business well and generating a reliable income stream that a buyer is then interested in acquiring. That portion has nothing to do with the real estate. 3. The assessors mentioned a 'per bay approach' to valuing a car wash. This approach makes no sense whatsoever based on the merits of the above arguments. The 'locations is the land that the car wash sits on and is strategic in potientially generating a certain volume of dirty cars that need cleaned. But that is all it is. The rest is construction and equipment based on the type of business the owner is trying to capture (self 2 service washing, automatic washing, or express high speed conveyorized shines � a g). The self service type may generate only a couple thousand dollars a month between all the bays, while an express tunnel wash may generate 1,500,000.00 per year with a single bay. The reason isn't the construction or how many bays - it is a function of the business itself and the quality of operation along with the location strategy. Any buyer in the car wash market could care less about the amount of bays - only the income they can generate with it. Here are some examples of comparable "real estate" car wash sales that should be used for comparison. Weld County R4463386 Sale price $85,900.00 in 2017 in Gilerest (Lower land value than Greeley or Evans) Weld County R6127886 Sale price $298,500.00 in 2015 in Fort Lupton (Similar land value to Evans and Lower than Greeley) Weld County R3914405 Sale price $500,00aoo in 2013 in Windsor (higher land value than Greeley or Evans and 1 acre lot ! ) Larimer County R1220373 X73 Sale price $300,000 land value than Greeley or Evans) Larimer County 81609114 Sale price $292,500 land value than Greeley or Evans) Larimer County l: l 201492 Sale price $475,000. land value than Greeley or Evans and located in Larimer County R0088501 Sale price $390,000. higher land value than Greeley or Evans) LarI per County R1641767 Sale price $400,000. higher land value than.Greeley or Evans, There are several much higher value sales that can be used as comparables in both counties, but they reflect the business value, not the real estate value. As a matter of fact, after reviewing all of the other car wash sales, it is pretty clear that the county is valuing every single sale as real estate even though almost all sales are actually business sales! Thank you, Jeromy Ginther Wash Me! Car Washes Owner (970) 663-3100 .00 in 2015 in Berthoud (higher .0O in 2018 in Loveland (higher 00 in 2019 in Loveland (higher retail Strip mall outlot!) ) 00 in 2017 in Fort Collins (way 00 in 2017 in Fort Collins (way July 26, 2019 Petitioner: GREELEY CAR WASHES LLC 3106 W EISENHOWER BLVD LOVELAND, CO 80537-3177 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 2019-2929, AS0103 Appeal 2008224848 Hearing 8/2/2019 1:30 PM Account(s) Appealed: R6844297 Dear Petitioner(s): The Weld County Board of Equalization has set a date of August 2, 2019, at or about the hour of 1:30 PM, 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 LPLIs./o:yf G'i. Esther E. Gesick Clerk to the Board Weld County Board of Commissioners and Board of Equalization cc: Brenda Danes, Assessor Hello