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Home My WebLink About20162264.tiffAugust 5, 2016 Petitioner: FAIRWAY ACRES INC 1050 E COUNTY ROAD 76 WELLINGTON, CO 80549-2011 CLERK TO THE BOARD PHONE (970) 400-4226 FAX (970) 336-7233 WEBSITE: www.co.weld.co.us 1150 O STREET P.O. BOX 758 GREELEY CO 80632 Agent (if applicable): DRM REAL ESTATE ADVISORS, LLC 700 AUTOMATION DR UNIT G-200 WINDSOR, CO 80550-3117 RE: THE BOARD OF EQUALIZATION 2016, WELD COUNTY, COLORADO NOTICE OF DECISION Docket #: 2016-2264 Appeal #: 2008211177 Hearing Date: 8/4/2016 10:00 AM 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. Section 39-8-101 et seq., considered petition for appeal of the Weld County Assessor's valuation of your property described above, for the year 2016. The Assessment and valuation is set as follows: Actual Value as Actual Value as Account # Decision Determined by Assessor Set by Board R4504806 Stipulated -Approved Stipulated Value $1,520,324 $1,150,000 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. Section 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, 2016, MUST comply with the following provisions of C.R.S. Section 39-8-107(5): (5)(a)(I) On and after August 10, 2011, 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 section 39-8-108(1) or a denial of an abatement of taxes pursuant to section 39-10-114 shall provide to the county board of equalization or to the board of county commissioners of the county in the 02.0/6- & 45ob 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. Section 39-8-108(1), the rules of Colorado appellate review and C.R.S. Section 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. Section 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, Esther E. Gesick, Clerk to the Board Weld County Board of County Commissioners and Board of Equalization Cc: Christopher Woodruff, Weld County Assessor COUNTY BOARD OF EQUALIZATION WELD COUNTY Single County Schedule Number R4504806 STIPULATION (As To Tax Year_2016_ Actual Value) RE PETITION OF : Windsong Estate Event Center NAME: Fairway Acres Inc ADDRESS: 1050 E. County Road 76 Wellington, CO Petitioner (s) and the Weld County Assessor hereby enter into this Stipulation regarding the tax year 2016 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: SEV SP TRACT 1 SADDLER PUD 2. The subject property is classified as Commercial property. 3. The County Assessor originally assigned the following actual value to the subject property for the tax year 2016: Total $1,520,324.00 4. After further review and negotiation, Petitioner (s) and Weld County Assessor agree to the following tax year 2016 actual value for the subject property: Total $1,150,000.00 5. The valuation, as established above, shall be binding only with respect to tax year 2016. 6. Brief narrative as to why the reduction was made: Analysis of actual income in base period as well as sales of other event centers. 7. Both parties agree that: NThc hearing scheduled before the Board of Equalization on 08/04/2016 at 10:00 a.m. be vacated, ■ R4504806 A hearing has not yet been scheduled before the Board of Equalization. 1 07047- 02.74,q q D 'FlEDrthl " /`1 : y of July, 2016. r Ag orAttorney Address: ORM R'A.t , vtsoe Lie %x qi r►n_ S0550 Telephone: 970-e.7'/ - /313 Docket Number Stip-1.Frm R4504806 (Assistant) County Attorney for Respondent, Weld County Board of Commissioners Address: 1150 ""O" Street P.O. Box 758 Greeley, CO 60632 Telephone:(970) 336-7235 County As tssor Address: 1400 N.17th Avenue Greeley, CO 80631 Telephone: (970) 353-3845 ext. 3697 2 Esther Gesick From: Sent: To: Subject: Attachments: Noel Lawrence Monday, July 25, 2016 11:08 AM Courtney Anaya; Esther Gesick FW: Windsong Event Center Stiplulation R4504806 - 2901 Saddler Blvd Severance Jul-2016.pdf See attached stipulation for R4504806. Thanks. From: Chris Ruff[mailto:cdruff@drmrealestate.com] Sent: Monday, July 25, 2016 11:07 AM To: Noel Lawrence <naaweence@co.weld.co.us> Subject: RE: Windsong Event Center Thank you Noel. I believe that is a reasonable valuation satisfied. I have talked to the owner this morning and he is I will submit shortly for an abatement for 2015 taxes at the same valuation, once he has paid his full 2015 taxes. Christopher D Ruff DRM Real Estate Advisors LLC 700 Automation Drive, Unit G-200 PO Box 99, Windsor CO 80550 cdruff@drmrealestate.com 970-674-1313 Office 970-236-9840 Fax 970-227-7868 Cell From: Noel Lawrence{mailto:nlawrence@co.welcl.co.us] Sent: Monday, July 25, 2016 9:07 AM 1 To: Chris Ruff <cdruff@drmrealcstate.com> Subject: RE: Windsong Event Center Chris has agreed to $1,150,000. I've attached the stipulation here. Please sign and return to me and I'll forward to the Clerk to the Board. Thanks, Noel From: Chris Ruff [mailto:cdruff@drmrealestate.com] Sent: Thursday, July 21, 2016 I : 1 6 PM To: Noel Lawrence <nlawrcnce@co.weld.co.us> Subject: RE: Windsong Event Center Hi Noel, Ilere is my rebuttal -squared J If you did not make a location adjustment and it was reviewed by the bankMAI's, you would have an extremely tough row to hoe to justify it. Just saying. But lets say you didn't adjust for location. Lets adjust upward 15% or 20% or 25% for superior quality and condition. Where does that put us on any of the three comps? None would be over $130/S F. Yes, I agree with you that equalization is not an appraisal technique. But is a basic tenet of Colorado property tax valuations, and when you tell your hard working taxpayer that he has to pay $60k in property taxes because his property was valued at $183/SF and the people he's competing against (with similar quality, similar condition facilities) are paying taxes based on a valuation at only $75/SF that's a pretty tough sell. Lastly, I'm a little surprised you would bring up that listing because its current, outside the base period and a listing that has not sold. You would immediately slap me down if I tried to use one to justify a low value. L That said, lets look at it. According to listing agent Erik Broman, that property is likely to go under contract shortly at about $500,000. Versus its current $695k list price, and its original $795k list price and it original costs of over $1M. That's my whole point —cost does not equal value. In any case, the $500k Price = 2 $112/SF. The broker and the pictures in the brochure do not indicate it's a POS, but lets say its 15% to 20% inferior. The subject is then $129/SF (15%) to $135/SF (20%). Please call him (cell phone is 420-1445) if you wish to confirm. All this in a superior market today compared to the base period (June 2014). Noel, I still believe our $135/SF value is very fair and reasonable. I could compromise at $140/SF = say $1,150,000. Thanks Chris Christopher D Ruff DRM Real Estate Advisors LLC 700 Automation Drive, Unit G-200 PO Box 99, Windsor CO 80550 cdruff@,drrnrealestate.com 970-674-1313 Office 970-236-9840 Fax 970-227-7868 Cell From: Noel Lawrence[railto:nlawrence@co.weld.co.us] Sent: Thursday, July 21, 2016 10:17 AM To: Chris Ruff <cdruff@drinrealestate.com> Subject: RE: Windsong Event Center Hi Chris...thanks for your response. Here's my rebuttal J 3 I would not make a downward adjustment for the subjects location because of the view and advantages the site offers for this specific property type. I did not address the compatibility with other Weld County property values, because equalization is not an appraisal methodology nor an argument that can be brought before the board. I will say that age, condition and amenities were certainly factors in other "event center" valuations. An older, inferior Event Center in a rural setting is 14016 County Road 32 outside of Platteville. It is also located next to a dairy....think of the ramifications of that. It is currently listed for sale at $155 psi. Though it can not be used as a direct comparable, it is an indication of value. I would be willing to lower the subject from $183 psf to $160 psior $1,304,320. This is a compromise of the approaches to value indicators and of our 2 values. Noel From: Chris Ruff [mailto:cdruff@drmrealestate.comj Sent: Thursday, July 21, 2016 10:00 AM To: Noel Lawrence <nlawrence@co.weld.co.us> Cc: Kenji Matsuda <kenji@windsongestate.com>; Steve Stansfield <steve@realtec.com> Subject: RE: Windsong Event Center Good Morning Noel, I appreciate your thoughts. I am not contending that the subject is not a nice facility (it is, I've been there a couple times) or that it is in a poor location (it is not). I'm simply saying its not worth the value the county assigned it. For those who know my history, I don't tile protests willy-nilly like some of the agents. Here is why we protested: First --My location point was simply this: if the subject property was located in Old Town Fort Collins or near it (site of two of my comps) or West Greeley (site of my other comp), as an appraiser you would make a downward adjustment versus the subject's location. You'll note that our requested value of $135/SF is way 4 higher than the three comps at $42/SF to $102/S F. Event Centers arc tough —if the business works, its OK but if it doesn't, there's no alternative uses for this property in that location. Second: I gave you their actual I&E so you saw what they were doing. We arc not doing stabilized occupancy real estate -wise —its a single -user building that is either 100% occupied or 100% vacant. I hung my hat on an estimated Market Rent of $12/SF NNN for the real estate and used 5% vacancy because it is occupied. Backing into the county's real estate valuation from an Income Approach perspective, your rent would have to be $16.53/SF = $134,765 * 5% Vac * 5% Expenses /8% Cap Rate = $1.523M. There is NO WAY that you could rent that property at $16.53/SF NNN in the base period. Third: I understand your Cost Approach. The problem I (and most lenders) have with it is that we saw lots of things built for $X that could not be sold for $X. Cost does not equal Value —still true today but especially true in the base period. A Special Purpose property in particular suffers from those issues. That's why the three sales comps are critical. I'd especially note the St Michaels property —very nice, but extensive marketing could only sell it for a fraction of its replacement costs. In Weld County. In the base period. Fourth: Noted that you did not address my equalization issue with Water Valley, which is the closest similar facility. I'm guessing I could make the same argument with Greeley Country Club and some others. I'm not criticizing you there just pointing out that the county has not assigned values of $187/SF to other similar function, similar quality properties in Weld County with which this property owner must compete. Noel --I think we've given you extensive, reasonable valuation info on which you can base your decision to adjust to $1.1M and feel that it's well supported. Our value estimate at $1,100,000 = $135/SF is far higher than the available sales comps, more -than supported by a similar function properties in Weld County that I have cited (Water Valley) and the sales comp at St Michaels in the base period, which the county must have validated substantially because the assigned AV is right near its 2013 sales price. I'd appreciate your re -consideration of the valuation. Sincerely, Christopher D Ruff DRM Real Estate Advisors TLC 700 Automation Drive, Unit G-200 5 PO Box 99, Windsor CO 80550 cdruff@drmrealestate.com 970-674-1313 Office 970-236-9840 Fax 970-227-7868 Cell From: Noel Lawrence[mailto:nlawrence@co.weld.co.us] Sent: Wednesday, July 20, 2016 1:56 PM To: Chris Ruff <cdruff@drrnrealcstate.com> Subject: Windsong Event Center Hi Chris. Thanks for supplying the analysis on the Windsong Event Center in Severance. I denied the appeal at the Assessor level because 1 had not yet received anything from you. After reviewing the information you provided, here are my comments. I would contend that for an Event Center (for weddings, parties, private events, etc.) the remote location is not inferior. Just because it is a "commercial" property, does not mean it is impacted by rooftops, traffic count, etc. the way an office, retail, or even industrial property would be. The owner even touts the location as "the highest point in Weld County, with majestic views of the Rocky Mountains and the Front Range". And they obviously intentionally chose this site for those reasons for this type of property. Secondly, using the subject's actual income even for 2015 (their first full year) does not reflect what their stabilized income will be one they are truly established. Third, as you know we have to also factor in the Cost Approach, which carries significant weight on a new property. Let me know your thoughts and if you still believe I'm way off base here! 6 Christopher M. Woodruff Weld County Assessor 1400 N 171h Ave Greeley, CO 80631 NOTICE OF DETERMINATION RECEIVED .JUL 15 2016 WELD COUNTY COMMISSIONERS Date of Notice: 6/3012016 Telephone: (970) 353-3845 Fax: (970) 304-6433 Office Hours: 8:00AM - 5:00PM ACCOUNT NO. TAX YEAR 4- TAX AREA LEGAL DESCRIPTION/ PHYSICAL LOCATION R4504806 2018 3953 SEV SP TRACT 1 SADDLER PUD 2901 SADDLER BLVD SEVERANCE . CO IFAIRWAY tor ACRES INC 1050 E COUNTY ROAD 76 WELLINGTON, CO 80549.2011 PROPERTY CLASSIFICATION ASSESSOR'S VALUATION ACTUAL VALUE PRIOR TO REVIEW ACTUAL VALUE AFTER REVIEW COMMERCIAL 1,520,324 1,520,324 TOTAL $1,820,324 $1,520,324 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: CMOI - The Colorado Constitution requites commercial property to be valued using replacement cost, market and income approaches and assessed at 29%. 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): CORM REAL ESTATE ADVISORS, LLC 700 AUTOMATION DR UNIT G-200 WINDSOR, CO 80550-3117 16-DPT-AR PR 207-08/13 R4504800 1001 0076 2016-2264 APPEAL PROCEDURES County Board of Equalization Hearings will be held from August 1st through August 5th at 1150 O 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 O Street, P.O. Box 758 Greeley, CO 80631 Telephone: (970) 35£-4000 ext, 4225 Online: http://www.co.weld.co.us/apps/cboel To preserve your appeal rights, your Petition to the County Board of Equalization must be postmarked or delivered on or before July 15 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 District Court 1313 Sherman Street, Room 315 Contact the District Court in the County Denver, CO 80203 where the property is located. See your (303) 866-5880 local telephone book for the address and www.dota.colorado.QQvlbaa telephone number. Binding Arbitration ) or a list 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 shall be deemed to have been timely filed if filed on the next business day, § 39-1-120(3), C.R.S. PETITION TO COUNTY BOARD OF EQUALIZATION What is your estimate of the property's value as of June 30, 2014? (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.) $ trattr What Is the basis for your estimate of value or your mason for requesting a review? (Please attach additional sheets as necessary and any supporting documentation, i.e., comparable sales, rent roll, original installed cost, appraise , etre) ATTESTATION I, the undersigned owner or agent' of the property identified above, affirm that the statements contained herein and on ri)r`pync im {%)hereto are true and complete. 970--4.4 -1313 745/1e Signature 1.1DIZZOFFe.% Telephone Number Date REAL Es.779Th COM Email Address ' Attach letter of authorization signed by property owner. 16-bPT •AR PR 207-08/13 R4504806 10610076 Esther Gesick From: Sent: To: Cc: Subject: Attachments: Esther, Chris Ruff <cdruff@drmrealestate.com> Friday, July 15, 2016 2:53 PM Esther Gesick Kenji Matsuda; Steve Stanfield Appeal R4504806 Tax Appeal 070509301075 2901 Saddler Blvd Sev CBOE Jul-2016.pdf Here is our formal appeal of the NOD for the property at 2901 Saddler Blvd in Severance. I would appreciate your acknowledgement of receipt. Thanks and have a good weekend. Christopher D Ruff DRM Real Estate Advisors LLC 700 Automation Drive, Unit G-200 PO Box 99, Windsor CO 80550 cdruff@drmrealestate.com 970-674-1313 Office 970-236-9840 Fax 970-227-7868 Cell 1 July 15, 2016 Mr. Christopher Woodruff Weld County Assessor (400 N. 17th Avenue Greeley, Colorado 80631 Re: Real Property Valuation Protest ED Number: Property Address: Ownership: Owner Address: PIN 0705-09-3-014)75 2901 Saddler Blvd, Severance, Weld County, Colorado Fairway Acres Inc 1050 E CR 76, Wellington, Colorado 80549 Dear Mr. Woodruff, 1 represent Fairway Acres Inc, as referenced in the attached Limited Power of Attorney, in the appeal of their property valuation for 2016. The subject is an Event Center in a rural location (future subdivision on Hwy 14) that contains 8,152 SF on 2 -acres and was built in 2013. Assessor's current valuation is $ 1,520,324 -r- $187/SF. The estimated Market Value as of June 30, 2014, was $1,100,000 = $135/SF. Our estimated Market Value is based on several factors: 1. Three comparable sales prior to June 30, 2014 (attached) of Event Center properties in Weld (St Michaels) and Larimer (Fort Collins) revealed range of $42/SF to $102/SF. Subject is superior in quality and age to the two Ft Collins sales, but significantly inferior in location on Hwy l4 in rural highway location. The Sunset Event Center is in the middle of Old Town Fort Collins and was converted to a new bar/restaurant. The St Michaels sale was an REO but exposed to the market for a long time —the seller got as much as they could for it and did not "dump" it. I appraised the transaction so I am intimately familiar with the property and the adjacent office/retail/event center 2nd floor that went with it. The total sales price equates to $70/SF based on both buildings (26;380 SF). The allocated sales price for the clubhouse/event center property was $250k —Weld County Assessor currently has it at $333,850 or $57/SF. Relatively similar quality, lesser kitchen, superior location, limited land area and moderately older age (built 2005). There is no way that the subject property is worth 3"187/SF in relation to those sales. 2. Actual Income and Expenses (attached) for 2014 (Loss of $24,724) and 2015 (Net $89,094) arc attached. Capping Actual 2015 Income at 8% Cap = $1,1 (4,000, @ 8.5% = $1,048,000. 3. Income Approach: $12/SF NNN on 8,152 SF with 5% Vacancy, 5% Expenses, 8% Cap $1,104,000. From a pure real estate standpoint, I don't know if you could lease this property at $ I2/SF NNN it would be very difficult. 4. Equalization: The Water Valley / Pelican Lakes complex contains 17,255 SF in the restaurant/bar and banquet rooms on 5.77 -acres. That does not count the lower -level parking basement for golf carts, the pool offices or the pumps house nor any contributory value from the swimming pool I am very familiar with this complex and it is superior to the subject property. The current Weld County Assessor Value = $1,287,792 = $75/SF. Again, there is simply no way that the subject property is worth more than this complex this valuation indicates the subject should be worth $825,000. Based on the data and analyses, request the valuation be reduced to $1,100,000. Respectfully submitted DRM REAL ESTATE ADVISORS, LLC ‘,14•X 7,1 .; Christopher D. Ruff Principal Certified General Appraiser Coto. - CGO 13 I6795; 12/31/2016 Atch 1. Power of Attorney 2. 2016 Real Property NOD 3. Sales Comps 4. Actual Income and Expenses 5. Equalization Pelican Lakes NOV LIMITED POWER OF ATTORNEY I/We, Fairway Acres Inc and Windsong Estate, whose address is CO , (the "Principal") do hereby designate DRM Real Estate Advisors, LLC, whose address is 700 Automation Drive Unit G-200, Windsor, CO 80550, (the "Agent") as my/our attorney -in - fact and agent for the limited purpose set forth herein: TO ACT ON PRINCIPAL'S BEHALF AND IN PRINCIPAL'S NAME IN THE FILING AND PURSUIT OF PROTESTS AND/OR APPEALS OF THE COUNTY ASSESSOR'S VALUATION(S) FOR THE PROPERTY/PR.OPERTIES LISTED BELOW, TO ADVOCATE FOR AND AGREE TO A REVISED VALUATION FOR SAID PROPERTY/PROPERTIES AND, IF APPROPRIATE, TO PURSUE ABATEMENT OF TAXES PAID BY PRINCIPAL IN PREVIOUS YEARS FOR SAID PROPERTY/PROPERTIES. This Power of Attorney applies to assessments for the following parcel number(s): 2901 Saddler Boulevard, Severance CO PIN 070509301075 Principal hereby grants Agent full power and authority to do everything necessary in exercising the powers herein granted as fully as Principal might or could do personally, with full power of substitution or revocation hereby ratifying and confirming all that Agent shall lawfully do or cause to be done by virtue of this power of attorney and the powers herein granted. This Limited Power of Attorney shall not be affected by Principal's disability or by the dissolution of Principal as an entity. This Limited Power of Attorney shall expire December 31, 2016. IN WITNESS WHEREOF, Principal has executed this Limited Power of Attorney this `2' day of 7J ,2016. Principal ' STATE OF COLORADO ) LIVIAlfiAP.Ar )ss. COUNTY OF .) The forgoing Limited Power of Attorney was acknowledged before me this day of , 1 , by i< e ij I fo u, , Witness my hand and official Seal: My Commission Expires: Apil \ tID, 24I41 • JENNIFER CZAPLEWSKI NOTARY puet iC STATE OF COLORADO NOTARY ID 20074O15356 MY COMMISSION EXPIRES APR 10, 2019 4 12. Forbearance by Consultant Not a Waiver. Any forbearance by Consultant in exercising any right or remedy hereunder, or otherwise afforded by law, shall not be a waiver or preclude the exercise of any such right or remedy. 13. Remedies Cumulative. Each remedy provided in this Contract is distinct from and cumulative to all other rights or remedies under this Contract or afforded by law or equity, and may be exercised concurrently, independently or successively. 14. Captions. The captions and headings of the paragraphs in this Contract are for convenience only and are not to be used to interpret or define the provisions hereof 15. Governing Law; Severability. This Contract shall be governed by the laws of the State of Colorado, In the event that any provision or clause of this Contract conflicts with the law, such conflict shall not affect other provisions of this Contract which can be given effect without the conflicting provision, and to this end the provisions of the Contract are declared to be severable. 16, Counterparts, This Agreement may be executed in any number of counterparts, including facsimiles, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same Agreement. 17. Modifications. This Agreement and any of the provisions contained herein may not be modified, amended, waived, discharged or terminated other than by means of a written instrument signed by all Parties. 18. Entire Agreement. This Contract represents the entire agreement between the Parties as to all matters specified herein, without limitation. No changes to this Contract shall be effective unless agreed to in a written instrument signed by both Parties. This Agreement shall be effective as of the date last signed below by the Parties. CONSULTANT; DRM REAL ESTATE ADVISORS LLC Date: April 28, 2016 By: CLIENT: A3 `awe, Printed Name Date: r1/41/6 d6 ,2©1b Horsetooth Heights J4 MA RIANA .rte los brig !4 Address 3010 67th Ave 242 Linden St 400 S Link Ln Sii nt)And Fort colhna W a LAKE SHERWOOD CORPORATFON Redmond rr4eh!l:Ii�1t.11 F l.t NRot r� .t Loveland f 7.11 fl • 1).1 ifTimnath i �vRc� H.AMttVON K "1 ± i S U City Greeley Fort Collins Windsor Kelim ?sop I l Severance Property Info 5,894 SF Specialty/Lodge/Meeting Hall 14$32 SF General Retail/Restaurant Fort Collins 7,041 SF General Retail/Bar Bracewell 0 Ault Eaton bite Mc Greek . Garden Evans 43 mallet; J I� •2:'616+: f_3rft C3 crt ar g Z] ^r Sale Info Sold: $250,000 ($42.42/SF) Sold: $1.530,000. ($102.46/SF) Sold: $720,000 ($102.26/SF) Copyrighted report licensed to ORM Real Estate Advisors - 194570 7/15/2016 Page 1 Quick Stats Report Comps Statistics General Retail Sale Price Center Size Price per SF Actual Cap Rate Days on Market Sale Price to Asking Price Ratio Low $720,000 7,041 SF $102.26 Average $1,125,000 10,986 SF $102.40 Median $1,125,000 10,986 SF $102.36 High $1,530,000 14,932 SF $102.46 a. Count 2 2 2 Specialty Sale Price Building Size Price per SF Actual Cap Rate Days on Market Sale Price to Asking Price Ratio $250,000 5,894 SF $42,42 Sold Transactions 1,022 8091% Totals $250,000 5,894 SF $42.42 1,022 8091% $250,000 5,894 SF $42.42 1,022 8091% $250,000 5,894 SF $42.42 1,022 80 91% 1 1 1 Total Sales Volume $2,500,000 Survey Criteria Total Sales Transactions 3 basic criteria: Secondary Type - Lodge/Meeting Hall, Bar; Sale Date - 1/1/2012 - 6/30/2014; Sale Status - Under Contract/Pending, Sold; Return and Search on Portfolio Sales as Individual Properties - No geography criteria: Market - Denver additional criteria; - * This result set has been amended with criteria to add and/or remove records. Copyrighted report lieensed to ORM Real Estate Advisors - 194570 7/15/2016 Page 2 3010 67th Ave - St. Michaels Town Square Greeley, CO 80634 Sale on 9/11/2013 for $250,000 ($42.42/SF) - Research Complete 5,894 SF Lodge/Meeting Hall (Neighborhood Center) Building Built in 2007 SOLD Recorded Buyer: True Buyer: Buyer Type: Buyer Broker: Ag Resource Holdings Lie Thomas M Haren Thomas Haren 14339 Highway 256 Platteville, CO 80651 Individual NAI Shames Makovsky Brian Bair (303) 565-3019 115t 5t bV 301I' S► I.J it= cT. C .) 'eV i≥nd St Rd Buyer & Seller Contact Info Recorded Seller: True Seller: Seller Type: Listing Broker: Transaction Details Sale Date: 09/11/2013 (1,022 days on market) Escrow Length: - Sale Price: Asking Price: Price/SF: Price/SF Land Grass: Percent Leased: Tenancy: Sale Conditions: Financing: Parcel No: Document No: $250,000 -Confirmed $309,000 $42.42 $27.24 100.0% Single REO Sale $1,689,000.00 from Wells Fargo Bk Na 095921272009, 095921272008 3967371 Sale Type. Bldg Type: Year Built/Age: GLA: Land Area: Percent Improved: Total Value Assessed: Improved Value Assessed Land Value Assessed: Land Assessed/SF: lb Ashcroft Rd thiruund'j St !RIO /dc, S 4J'5 1.1.:rc.sc.1' .C:r c.rdl .r 2tY&HER= Mile High Bks Mile High Bk Na Nina Sandavol 1726 Hover St Longmont, CO 80501 (303) 772-2227 Bank/Finance RPM Management LLC James Smith (970) 339-9280 ID: 2860546 Owner/User Lodge/Meeting Hall (Neighborhood Center) Built in 2007 Age: 6 5,894 SF 0.21 AC (9,178 SF) 53.4% $571,740 in 2012 $305,430 $266,310 $29.00 Copyrighted report licensed to DRM Real Eslate Advisors - 194570 7/15/2016 Page 3 3010 67th Ave - St. Michaels Town Square 5,894 SF Lodge/Meeting Hall (Neighbotood Center Building Built in 2007 (can't) SOLD Transaction Notes This sale transaction was for the building at 3010 67th Avenue in Greeley. This property sold for $250,000 or about $55.00 per square foot. This was a bank -owned property The new owner, Ag Resource Holdings LLC, develops and designs diary plants Escrow was 60 days. Income Expense Data Bldg Type: Class: Total Avail: Bldg Vacant: Tenancy: Owner Type: Owner Occupied Zoning: Land Area: Expenses: Parking: Expenses - Taxes - Operating Expenses Total Expenses $8,506 Current Building Information Lodge/Meeting Hall (Neighborhood Center) 0 SF 0 SF Individual 9,178 SF $8,506 ID. 7842898 Bldg Status Built in 2007 RBA: 5,894 SF % Leased: Rent/S F/Y r: Elevators: 0 Core Factor: - Stories: 1 Typical Floor Size: 5,894 SF Building FAR: 0 64 Const Type: Wood Frame 2015 Tax @ $1 22/sf 50 free Surface Spaces are available; Ratio of 8 48/1,000 SF Location Information Park Name: Metro Market: Submarket: County: CBSA: CSA: DMA: St Michaels Town Square Denver Weld County Weld County Weld Greeley, CO Denver -Aurora, CO Denver, CO -WY -NE Copyrighted report licensed to DRM Real Estate Advisors - 194570 7/15/2016 Page 4 242 Linden St - Sunset Event Center & Catering Fort Collins, CO 80524 Sale on 116/2014 for $1,530,000 ($102.46/SF) - Research Complete 14,932 SF Retail Restaurant Building Built in 1901 SOLD Recorded Buyer: True Buyer: Buyer Type: Buyer Broker: 242 Linden LLC Blue Ocean Enterprises Inc 416WOak St Fort Collins, CO 80521 (970) 494-5413 Corporate/User SVN I Denver Commercial Steve Kawulok (970) 488-3156 Sale Date: Escrow Length: Sale Price: Asking Price: Price/SF: Price/SF Land Gross: Percent Leased: Tenancy: No of Tenants: Tenants at time of sale: Financing: Parcel No: Document No: 01/06/2014 $1, 530,000 -Confirmed $102.46 $147.70 100.0% Single 4.) Miff' Buyer & Seller Contact Info aJ a Li z 257 4j L C t�1 Recorded Seller: True Seller: Seller Type: Listing Broker: Transaction Details 1 Sunset Event Center & Catering Down payment of $1,530,000.00 (100.0%) 97123-06-024 20140000957 :VW.,) i Cl WA/ .,': iiL Bucki ngham 4 Oak SI 500 id; 2`..,'6 !A cen 7itt Z5 rpc•rr :.- Willinda Properties LLC Willinda Properties LLC Willard Owens 3525 Diane Pi Greeley, CO 80631 (970) 353-2266 Developer/Owner-RGNL SVN I Denver Commercial Steve Kawulok (970) 488-3156 Sale Type: Bldg Type: Year Built/Age: GLA: Land Area: Percent Improved: Total Value Assessed: Improved Value Assessed Land Value Assessed: Land Assessed/SF: Investment Retail - Restaurant Built in 1901 Age: 113 14,932 SF 0.24 AC (10,359 SF) 47.1% $284,080 in 2012 $133,860 $150,220 $14.00 ID: 2932527 Copyrighted report licensed to URM Real Estate Advisors - 194570 7/15/2016 Page 5 242 Linden St - Sunset Event Center at Catering SOLD 14,932 SF Retail Restaurant Building Built In 19O1 (on't) Transaction Notes The 14,932 SF retail/specialty building located at 242 Linden Street in Fort Collins, CO sold 1/6/2014 for $1,530,000. No conditions of sale were reported and this was considered a market value transaction Information contained in this comparable has been confirmed with the brokers involved in the transaction. They confirmed the location, size, date, parties involved, and price. Information was also based on recorded documents and county assessor information_ Income Expense Data Expenses -Taxes $28,158 - Operating Expenses Total Expenses $28,158 Current Retail information lD 8039118 Property Type: Retail - Restaurant GLA: 14,932 SF Center: Sunset Event Center & Catering Total Avail: 0 SF Bldg Status: Built in 1901 % Leased: 100.0% Owner Type; Corporate/User Bldg Vacant: 0 SF Zoning: D Land Area: 10,359 SF Owner Occupied: No Lot Dimensions: - Building FAR: 1 44 Rent/SF/Yr: - No. of Stores: - CAM: - Street Frontage 73 feet on Linden St (with 0 curb cut) Expenses 2015 Tax @ $4 19/sf Location Information Metro Market: Denver Submarket: Northern Colorado Ret/Northern Colorado Ret County: Larimer CBSA: Fort Collins, CO DMA: Denver, CO -WY -NE Copyrighted report licensed to DRM Real Estate Advisors - 194570 7/15/2016 Page 6 400SLink Ln Fort Collins, CO 80524 Sale on 12/16/2013 for $720,000 ($102,26/SF) - Research Complete 7,041 SF Retail Bar Building Built in 1963 SOLD 1 - Recorded Buyer: True Buyer: Buyer Type: Sale Date: Escrow Length: Sale Price: Asking Price: Price/SF: Price/SF Land Gross: Percent Leased: Tenancy: No. of Tenants: Tenants at time of sale: Parcel No: Document No: Timberline Holdings Co Lie Timberline Church Jon Cook 2908 S Timberline Rd Fort Collins, CO 80525 (970) 482-4387 Religious 12/16/2013 tie $720,000 -Full Value $102.26 $7.20 100.0% Single 1 A Hunt Club 87073-14-006 20130091056 a, Q r0 cu 4., E irjallr;r•-1.., Sr 1. r^J ulberry St Cache 1a Poidre b hrr :Cj Buyer & Seller Contact Info Recorded Seller: True Seller: Seller Type: Transaction Details Sale Type: Bldg Type: Year Built/Age: GLA: Land Area: Percent Improved: Total Value Assessed: Improved Value Assessed Land Value Assessed: Land Assessed/SF: Transaction Notes 'O/ 41 Alke F Mu;herry St t 14 500 jrd; J g 2)'6 MKroscft Carporatior b 20t6 HERE 12137 Corp A Hunt Club Aaron Bekkela 400 S Link Ln Fort Collins, CO 80524 (970) 490-1885 Individual Owner/User Retail - Bar Built in 1963 Age: 50 7,041 SF 2.30 AC (100,001 SF) 69.0% $210,250 in 2012 $145,000 $65,250 $0.00 ID: 2918967 The buyer purchased 400 S. Link Lane, Fort Collins, CO 80524 from the seller for $720,000 on Dec. 16, 2013. The retail building is 7,041 square feet. No other information was available at this time. Copyrighted report licensed to DRM Real Estate Advisors - 194570 7/15/2016 Page 7 4003 Link Ln 73041 SF Retail Bar Building Built in 1963 (can't) SOLO income Expense Data Expenses - Taxes - Operating Expenses Total Expenses $19,231 Current Retail Information $19,231 Property Type: Center: Bldg Status: Owner Type: Zoning: Owner Occupied: Retail - Bar Built in 1963 Religious C No Rent1S F/Yr: - CAM: - Street Frontage: Expenses: Parking: Features: 150 feet on Link Ln (with 2 curb cuts) 2014 Tax @ $2 r73/sf 35 free Surface Spaces are available Pylon Sign, Signage Metro Market: Submarket: County: CBSA: DMA: GLA: Total Avail: % Leased: Bldg Vacant: Land Area: Lot Dimensions: Building FAR: No of Stores: Location Information 7,041 SF 0 SF 100.0% 0 SF 100,001 SF 0.07 ID: 8107405 Denver Northern Colorado Ret/Northern Colorado Ret Larimer Fort Collins, CO Denver, CO -WY -NE Copyrighted report licensed lo ORM Real Estate Advisors - 194570 7/15/2016 Page 8 Fairway Acres, Inc. Income Statement 01/01/15 to 12/31/15 Income Sales -Liquor Miscellaneous Income Rental Income -Total Services Allocated CC Tips Total Income Cost Of Sales Purchases Total Cost of Sales Gross Margin Operating Expenses Labor Cleaning & Event Services Landscape Maintenance Supplies Keg Deposit Advertising Security & Monitoring Repairs Lease & Rentals Taxes Miscellaneous Expense Utilities Insurance Teel. ct fl pr,trre Fees & Licenses Credit Card Expense Legal & Accounting Bad Debt Expense Total Operating Expenses Net income (loss) & Repair $ 72,635.47 10,915.60 255,435.40 37,293.10 6,500.83 3827760.40 17,439.09 17,439.09 365,341.31 73,097,67 961.85 6,182.50 14,140.77 260.00 15,730,74 1,989.58 3,725.68 35,696.53 65,028.04 145.16 36,172.85 13,654.83 9.698.48 2,033.27 6,523.39 810.00 94.00 415, 945.34 19.0 2.9 66.7 9.7 1.7 100.0 4.6 4.6 95.4 19.1 0.3 1,6 3.7 0.1 4,1 0.5 1.0 9.3 17.0 0.0 9.5 3.6 36.5 0.5 1.7 0.2 0.0 108.'1 $ (50,604.03) -13.2 4-/39,X98 Fairway Acres, Inc. Income Statement 01/01/14 to 12/31/14 Is Income Sales -Wedding Sales -Liquor Miscellaneous Income Rental Income -Total Interest Income Services Allocated CC Tips Total Income Cost of Sales Purchases Total Cost of Sales Gross Margin Operating Expenses Labor Cleaning & Event Services Landscape Maintenance & Repair Supplies Keg Deposit Advertising Security & Monitoring Repairs Lease & Rentals Taxes Miscellaneous Expense -eepree-iat-ian- Expense- ---.... Amortization Expense- - Utilities Insurance -Interest -Expense Fees & Licenses Credit Card Expense Legal & Accounting Total Operating Expenses Net income (loss) $ (325.00) 55,082.78 2,805.89 110,020.30 294.00 90822.70 4,787.32 182,487.99 13,178.08 14,178 08 169,309.91 52,858.14 2,686.25 3,671.96 14,336.46 180.00 21,524.90 1,779.00 2,206.59 21, 885.20 9,375.41 470.20 96,278;a&-- -1,1-61%-00 38,521.02 16,239.43 -15-5,161.7-5 2,378.33 5,162.10 760.00 44-61-67777-4 -0.2 30.2 1.5 60.3 0.2 5.4 2.6 100,0 7.2 7.2 92.8 29.0 1.5 2.0 7.9 0.1 11.8 1.0 1.2 12.0 5.1 0.3 52.8 0.6 21.1 8.9 85.0 1.3 2.8 0.4 244.7 $ (277,327.83) -152.0 WELD COUNTY ASSESSOR CHRISTOPHER M. WOODRUFF 1400 N 17TH AVE GREELEY, CO 80631 Date: May 1, 2015 ..H ULE / ACCOUNT NUMBER R1105402 r no ow PN E F RR TAX YEAH 2015 2015 REAL PROPERTY NOTICE OF VALUATION Phone: (970) 353.3845, Fax (970) 304-6433 TAXPAYER COPY O#k a Hours: 8:00 a.m. - 5:00 p.m. M -F appeals©weldgov.com WWW. CO. weld.co.us TAX AREA CODE PROPER FY DESCRIPTION (MAY NO'? BF COMPLEif) 0210604 01 AV 0.378 "AUTO T7 0 0453 80550-623699 PELICAN LAKES LLC 1625 PELICAN LAKES POINT STE 201 WINDSOR CO 80550-6236 COMMERCIAL !VPE OF. PROPERTY 080728309006 WIN 9WV TRACT C WATER VALLEY 9TH FG PRIOR "rfA4 p(.!flPt Ua',ilf 1,267,792 1,267,792 ORRF.MT YEAR ACTUM VALUE 1,287:792 1,287,792 +20,000 Using the above values, the estimated tax based on the prior year value was $49,017. The estimate of tax based on the current value is $49,790. This results in an increase of +$773. This estimate is based on 2014 tax rates. You will receive a tax bill in 2016, The currentyear tax amount is merely an estimate based upon the best information available. You have the right to protest the adjustment in valuation, but not the esti mate of taxes, § 39-5-121(1.5). C.R.S. cn U U) cc w I C) 4 ui a- O ce For specific property characteristic details, please see the Building Information and Valuation Information Tabs on your Property Report. PLEASE REFER TO THE BACK OF THIS FORM FOR GENERAL INFORMATION CONCERNING YOUR PROPERTY VALUATION AND YOUR APPEAL RIGHTS. n7IAPM ndRRmc Wen nr tww July 22, 2016 Petitioner: FAIRWAY ACRES INC 1050 E COUNTY ROAD 76 WELLINGTON, CO 80549-2011 CLERK TO THE BOARD PHONE (970) 400-4226 FAX (970) 336-7233 WEBSITE: www.co.weld.co.us 1150 O STREET P.O. BOX 758 GREELEY CO 80632 Agent (if applicable): DRM REAL ESTATE ADVISORS, LLC 700 AUTOMATION DR UNIT G-200 WINDSOR, CO 80550-3117 RE: THE BOARD OF EQUALIZATION 2016, WELD COUNTY, COLORADO NOTIFICATION OF HEARING SCHEDULED Docket #: 2016-2264, AS0094 Appeal #: 2008211177 Hearing Date: 8/4/2016 10:00 AM Account(s) Appealed: R4504806 Dear Petitioner(s): The Weld County Board of Equalization has set a date of AUGUST 4, 2016, at or about the hour of 10:00 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, 2016, 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 obtain the data supporting the Assessor's valuation of your property, please submit a written request directly to the Assessor's Office by fax (970) 304-6433, or if you have questions, call (970) 353-3845. Upon receipt of your written 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 e;f:Z/Asd .(,<‘gf*A Esther E. Gesick Clerk to the Board Weld County Board of County Commissioners cc: Christopher Woodruff, Assessor Hello