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 - R"a f t .,._ y �� q� � ..,fir rJ'1��.. - �- 1.._.� -- . �� � ,. � �7.ts'`_ „rt-- � = .x.` -r y �: ��. M �� "'s1!�� �, �.',•} -0 . 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