HomeMy WebLinkAbout04/04/2011 Item 023 MOHAVE COUNTY REQUEST FOR BOARD ACTION FORM
From: Matthew J. Smith, County Attorney FORMAL ACTION E3 By: Dolores Milkie, Civil Deputy County Attorne L L_ CONSENT 0
x 4444
RESOLUTION ❑
OTHER ❑
Date: March 24, 2011
BOS Meeting Date: April 4, 2011
SUMMARIZE THE ISSUE & DESIRED ACTION CLEARLY /ATTACH BACKUP MATERIAL:
Approve the proposed settlement of Happy State Bank dba Goldstar Trust Company v. Mohave
County, TX -2010 -1240 property tax valuation appeal. This settlement involves two (2) parcels
located in Golden Valley and provides for a reduction in the total full cash value of parcels #306-31 -
012H & #306- 31 -012S from $2,087,416.00 to $400,000.00, resulting in an estimated tax reduction of
$27,783.78 (from $34,369.89 to $6,586.11) for the 2010 tax year.
Recommended Motion: I move to approve the proposed settlement of Happy State Bank dba
Goldstar Trust Company v. Mohave County, TX -2010 -1240 property tax valuation appeal. This
settlement provides for a reduction in the total full cash value of parcels #306- 31 -012H & #306-31 -
012S located in Golden Valley from $2,087,416.00 to $400,000.00, resulting in an estimated tax
reduction of $27,783.78 (from $34,369.89 to $6,586.11) for the 2010 tax year.
Reviewed and Approved By:
County Attor�;b( Personnel ❑ Finance ❑ County Manager
Board Action Taken:
Approved as Requested No Action Taken ❑ Disapproved ❑
Continued to /// ❑ Approved with the following changes:
Acknowledged receipt and referred to
Filing Information and Retrieval
Filed Bid Filed Agreement
BOS Resolution Filed Yearly Correspondence
Filed Petition Filed Dedication
Filed Land Sold Filed Land Acquired
Filed Franchise I.D. Resolutio
Filed Improvement District Filed Other
Date Routed: 05) 1 1 Additional Information:
XC:
You are remin ed that items for the agenda, along with complete backup, must be in the County
Manager's Office 10 days prior to Board Meeting.
Item No.�
Mohave County Attorney's Office
Main Office: MATTHEW J. SMITH Victim/Witness
P.O. Box 7000 County Attorney P. O. Box 7000
315 N. 4'" Street 325 Pine Street
Kingman, AZ 86402 -7000 JAMES J. ZACK Kingman, AZ 86402 -7000
Telephone (928) 753 -0719 Chief Deputy Telephone (928) 718 -4967
Fax (928) 753 -2669 Fax (928) 718 -4966
Branch Offices: 9 Civil Division:
Bullhead City (928) 758 -0727 P. O. Box 7000
Lake Havasu City (928) 854 -3501 700 West Beale Street
Kingman, AZ 86402 -7000
Telephone (928) 753 -0770
Fax (928) 753 -4290
CIVIL
DIVISION
MEMO
To: Board of Supervisors
Gary Watson, Supervisor District 1 (Via Hand Delivery to Board Clerk)
Tom Sockwell, Supervisor District 2 (Via Hand Delivery to Board Clerk)
Buster Johnson, Supervisor District 3 (Via Hand Delivery to Board Clerk)
Ron Walker, County Manager (Via Hand Delivery to Board Clerk)
Barbara Bracken, Board Clerk (Via Hand Delivery to Board Clerk)
From: Dolores Milkie, Civil Deputy County Attorne
Subject: Proposed Settlement of Happy State Bank dba Goldstar Trust Company v. Mohave
County, TX -2010 -1240 Property Tax Valuation Appeal
Date: March 24, 2011
The Assessor's Office and County Attorney's Office are requesting that the Board of
Supervisors approve a settlement of the above - referenced property tax valuation appeal. The
proposed settlement is for the 2010 tax year and it is estimated that it would reduce the 2010 taxes
from $34,369.89 to $6,586.11, an estimated tax impact of $27,783.78. Mohave County's portion of
the estimated tax reduction is $3,402.00.
This case involves two (2) parcels located in Golden Valley. One parcel is a 5.05 acre vacant
land parcel and the other parcel is a 10.07 acre parcel with a 15,723 square foot school building (gym
and two classrooms). The property was part of a charter school, but the charter was lost in 2009.
Originally, the school had the 15,723 square foot building, along with several modular classrooms,
which have subsequently been removed from the property. This property (both parcels together) is
currently listed for sale at $525,000.00. The Assessor's Office believes the proposed settlement of
$400,000.00 is more reflective of the fair market value at this time and is the basis for requesting the
reduction in Full Cash Value (FCV) from $2,087,416.00 to $400,000.00.
Board of Supervisors, et al.
March 24, 2011
Page 2
If the Board approves the settlement as requested, the taxpayer and I will sign the standard
forms (Stipulation to Entry of Judgment and a Stipulated Judgment) agreeing to this settlement and
file them with the Court.
have attached copies of a document titled "Tax Court Settlement Recommendation" to the
Request for Board Action form for your review. In addition, I have attached to this memorandum an
information packet provided by the Assessor's Office regarding the valuation and Appraiser's
justification and reconciliation for this recommendation, along with a memorandum from Kenneth C.
Fielder to me explaining the reasoning for this determination. This information packet prepared by
the Assessor's Office normally is not prepared in cases which are settled, but rather is only prepared
for cases taken to trial. However, the Assessor's Office has prepared this complete package to
enable you to better understand its recommendation.
If you have any questions, please feel free to give either Kenneth C. Fielder (4007) or me
(4444) a call.
We request that the Board approve this settlement.
Enclosures (as stated)
cc: Ron Nicholson, Assessor (w /enc. -- Request for Board Action form only)(via interoffice mail)
Kenneth C. Fielder, Chief Appraiser (w /enc. -- Request for Board Action form only)(via interoffice mail)
Melissa Havatone, Treasurer (w /enc.)(via interoffice mail)
John Timko, Finance Director (w /enc.)(via interoffice mail)
ASSESSOR OF MOHAVE COUNTY �v o ` "T�
700 W BEALE STREET, PO BOX 7000, KINGMAN AZ 86401, PHONE (928) 753 -0703, FAX (928) 753 -0749
"fi3, 1 N
RON NICHOLSON BEVERLY PAYNE
Assessor Chief Deputy 1864
ron.nicholson a bev.payne n
co.mohave.az.us co.mohave.az.us
MEMORANDUM. RE CEINED
DATE: March 23, 2011 MAR 2 4 2011
TO: Dolores Milkie MohawCountyAttomey5gfflgq
FROM: Ken Fielder
SUBJECT: Tax Court Settlements — Tax Difference > $1,000
TX2010- 001240 — Happy State Bank.d /b /a Goldstar Trust Company
I have enclosed a copy of DOR's notification for intent to settle this case along with 8 packets for
presentation to the Board of Supervisors. This settlement will result in an estimated 2010 tax reduction
from $34,370 to $6,586 ($27,784 estimated tax reduction). Mohave County's portion of the estimated
tax reduction is $3,402. This case is for the 2010 tax year.
This case involves two parcels located in Golden Valley. One parcel is a 5.05 vacant land parcel and the
other is a 10.07 acre parcel improved with a 15,723 square foot school building (gym and two
classrooms). The property was part of a charter school. The charter was lost in 2009. Originally, the
school had the building noted above along with several modular classrooms (which have subsequently
been removed from the property). The subject two parcels are listed for sale at $525,000. We believe
the proposed settlement at $400,000 is more reflective of the fair market value at this time.
This case needs to be presented to the Board of Supervisors because the tax difference will be greater
than $1,000..
Thank you for your continued support.
cc: Ron Nicholson
Frank Capotosto
Mary Green
23 -Mar -11
1:24 PM
TAX COURT SETTLEMENT RECOMMENDATION
County: Mohave n
�I✓
Prepared by: Ken Fielder Approved by: Ron Nicholson /Bev Payne fJ
Address: Mohave County Assessor
P O BOX 7000
Kingman, Arizona 86402 -7000
Subject
Parcel # 306- 31 -012H & S Case # TX2010- 001240 Tax Year: 2010
(2 parcels)
Name on
Tax Roll: Happy State Bank d /b /a Goldstar Trust Company
2010 Values: Land Improvement Full Cash Limited Prop. Ratio
Value Value Value Value
Current
Value $123,136 $1,964,280 $2,087,416 $2,087,416 16.00%
Recommended
Value $84,511 $315,489 $400,000 $400,000 16.00%
Personal
Property Value $0 $0 $0 $0
Reason for This case involves two parcels. One is a 5.05 acre vacant land parcel and the other is a
Recommendation: 10.07 acre parcel with a 15,723 square foot school building (gym and two class rooms).
The property was part of a charter school. The charter was lost in 2009. Originally the
school had the 15,723 square foot building noted above along with several modular
classrooms (which have subsequently been removed from the property). The property is
currently listed for sale @ $525,000. We believe the $400,000 proposed settlement is
more reflective of market value at this time.
Estimated (2010) tax: $34,369.89
Revised (2010 est.) tax: $6,586.11
Estimated Total Change: $27,783.78
ARIZONA DEPARTMENT OF REVENUE
DIVISION OF PROPERTY VALUATION AND EQUALIZATION
Copy provided on: 23- Mar -11
Estimated Cty (2010) tax $4,208.23
Revised Cty (2010 est.) t; $806.40
Estimated Cty Total Char $3,401.83
THE VALUATION OF
423 Colorado Rd, Golden Valley Az 86413, Arizona
Owner: Happy State Bank
IN
o �
DITAT DEUS
18 614
ALSO KNOWN AS
MOHAVE COUNTY ASSESSOR PARCEL NUMBER 306- 31 -012S
A COMMERCIAL PROPERTY
AS OF
January 1, 2010
BY THE
MOHAVE COUNTY ASSESSOR'S OFFICE
Prepared for
The State Tax Court
Case Number: ST2010- 001240
TABLE OF CONTENTS
X Page 1 Appraisers Justification and Reconciliation
X Page 2 Summary of Salient Facts and Recommendations
X Page 3 Property Description
X Page 4 Picture of Subject
X Page 5 Parcel Map of Subject
X Page 6 Cost Approach to Value
Page 7 Market Approach to Value, Comparative Sales Analysis
Page 8 Income Approach to Value
Page 9 Assessment Ratio Detail
Page 10 Land Valuation; Sales Comparison
Page 11 Map Locations of Comparables
Page 12 Picture and analysis of Assessor's Comparables
Page 13 Picture and analysis of Petitioner's Comparables
Page 14 Affidavits
Page 15 Limited Property Value calculation
APPRAISER'S JUSTIFICATION AND RECONCILIATION
THE ASSESSOR RECOMMENDS A FULL CASH VALUE OF: $400,000
In arriving at this decision, the appraiser considered the Cost, Market and Income approaches to value.
The Assessor recommends a Limited Property Value of: $400,000
THE ISSUE OF EQUITY IN VALUATION
A diligent search of the records by the Assessor found all similar, comparable properties to be valued in accordance with
DOR guidelines. All were valued equally in equity. Equity in valuation is the goal of the Assessor's office.
JUSTIFICATION AND RECONCILIATION
This property was part of a charter school. Charter was lost in 2009. There were several modular buildings removed in
2010 with a correction done for the 2010 tax roll. Now with the two parcels equaling about 15 acres there is a building which
was the gym and a couple of classrooms . After changeing the built as of the building to a school Gym, (since that is all that
is left), reducing the land to the 2011 level and adding some obsolescence a reduction in value was supported. The property
is listed for sale with the larger parcel listed at $500,000 and the vacant parcel at $25,000. Most properties do not sell for
the listed price but a lessor amount, we recommend the the owners offer of $400,000.
Indicated Value : $400,000
DESCRIPTION OF SUBJECT PROPERTY
This property was a charter school. It had a built gym of 15723 sq ft and some modular classroom buildings totally 18139 sq
ft.. In the middle of 2010 the modulars were removed so that there is only the gym and yard improvemetnts (concrete,
flagpole,lights, etc). The value was adjusted for the change in improvements with a Notice of Proposed Correction.
APPEALED VALUE
Petitioner's appealed value was based upon the Cost approach. The cost approach attempts to capture market value based
upon the subject's new replacement costs, less depreciation.
( See Page 2) Indicated Value : $2,087,416
COST TO REPLACE LESS DEPRECIATION APPROACH TO VALUE
The cost approach to value (Replacement Cost New Less Depreciation) using DOR and Marshall and Swift data supports a
value of:
( See Page 6) Indicated Value : $2,087,415
MARKET APPROACH TO VALUE
( See Page 7 ) Indicated Value : N/A
INCOME APPROACH TO VALUE
( See Page 8) Indicated Value : $1,054,053
LAND
There is no land issue. One parcel is 10.07 acres with a value for 2011 of $45771 and the adjoining vacant parcel is 5.05
acreswith a value of $29605, totaling $75,406.
( See Page 10) Indicated Value : $123,136
Pagel
SUMMARY OF SALIENT FACTS AND ASSESSOR'S RECOMMENDATIONS
Subject parcel Number (lead): 306- 31 -012S
Type of property: school
Property Use Code (PUC): 1040
Associated Parcel Numbers: 306- 31 -012H
Location (situs): 423 Colorado Rd
Golden Valley Az 86413, Arizona
Assessor's Tax year 2010 Valuation
Full Cash Limited
Value Prop Value
Assessor's Post Card Value: $2,087,416 $2,087,416
Assessor's Decision (Aug 15th):
Assessor's Recommendation to B.O.E.:
Owners Opinion of Value: $400,000 $0
Owner's Purchase Price:
Date of Purchase: 3/1/2010
Prior Years Valuation (2009): $2,728,307 $1,975,662
B.O.E. Decision:
Assessor's Recommendation to Tax Court: $400,000 $400,000
Page 2
PROPERTY DESCRIPTION
Key Assessor Parcel No.: 306- 31 -012S
Property Address(Situs): 423 Colorado Rd Golden Valley Az 86413
(Street) (City)
Neighborhood Description:
Primary Property Uses: school
Condition of Properties: Good X Average Fair Poor
Economic Trend Up Down X Stable
Site Description:
Land Value $123,136 Prior Yrs Land Value: $285,573
Size: 658,627 s.f. River Front Feet
Shape: X Rectangular Irregular -
Terrain: X Level Slope Mountainous
Access: X Paved Street
Improvement Description:
Current Use: school
Number Buildings: 2
Other Improvements: Gymnasium and yard improvements
Effective Year Built 2000
Building Area: 33,862 Sq. Ft.
No. Units /Apts.: 0
Number Stories: 1
Construction Quality: Good x Fair & Average Minimum
Condition: Good x Fair & Average Minimum
Page 3
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