2008-05-12 Regular MeetingKODIAK ISLAND BOROUGH
Citizens Board of Equalization Meeting
May 12, 2008
A regular meeting of the Kodiak Island Borough Board of Equalization was held May 12, 2008 in the
Assembly Chambers of the Kodiak Island Borough Building, 710 Mill Bay Road. The meeting was
called to order at 7:30 p.m.
Present were Board members Cheryl Boehland, Karenia Hackett, Tim Hurley, Cassandra Juenger,
and Jim Nagan. Absent was Board member Cheryl McNeil. Staff members present were Borough
Assessor Tom Anderson, Clerk Nova Javier, Deputy Clerk Marylynn McFarland, and Assistant Clerk
Jessica Kilborn.
The Board members and Borough Assessor Tom Anderson were sworn in by Borough Clerk Nova
Javier.
ROLL CALL OF BOARD MEMBERS
HURLEY moved to excuse Board member McNeil.
VOICE VOTE ON MOTION TO EXCUSE CARRIED UNANIMOUSLY.
NOMINATION FOR CHAIRMAN OF THE BOARD
HURLEY moved to nominate Board member Juenger as chair.
VOICE VOTE ON MOTION CARRIED UNANIMOUSLY.
APPROVAL OF AGENDA
HURLEY moved to approve the agenda.
VOICE VOTE ON MOTION TO APPROVE THE AGENDA CARRIED UNANIMOUSLY.
APPROVAL OF MINUTES
A. BOE Meeting of May 23, 2007
HURLEY moved to approve the minutes as submitted.
VOICE VOTE ON MOTION TO APPROVE MINUTES CARRIED UNANIMOUSLY.
ITEMS OF BUSINESS - Hearings
Docket #1, Appeal No. 2008-01, Appellant: Aviation Acquisition Group LLC
Mr. Wes Osowski was sworn in by Clerk Javier.
Mr. Osowski reported that he had purchased the subject property which included lot improvements and
leasehold interest for $420,000 last year. Mr. Osowski contends that if the lot is worth $183,100 as
Assessor Anderson has reported, he would concede that the improvements are worth $$236,900, not
the additional $241,000.
Kodiak Island Borough BOE Minutes
May 12, 2008 Page 1
In response to Assessor Anderson, Mr. Osowski noted that the $6,000 annual lease payment rate was
established by the Department of Transportation. Assessor Anderson then went into detail as to how
the Assessing Department assesses possessory interests.
Assessor Anderson contended that the purchase price did not include the value of the leasehold
interest in the land, but was for the improvements only. Leasehold value is paid for in lease payments
to the State of Alaska.
HURLEY moved to lower the assessed value of the improvements to $237,000 and the assessed
value of the land to $183,000 for a total value of $420,000. Mr. Hurley's reasoning for the adjustment
was that the Assessor's valuation was excessive.
ROLL CALL VOTE ON MOTION CARRIED THREE TO TWO: Hackett, Hurley and Nagan (Ayes);
Juenger and Boehland (Nos).
Chair Juenger stated "According to Appellate Rule 602, the Appellant or the Assessor has the right of
appeal to the Superior Court of the State of Alaska from our decision. Should you wish to exercise
your right of appeal, you must do so by notifying the Borough attorney and initiating the process within
30 days from today. Failure to do so will forever bar you from any appeal of this case."
Docket #2, Appeal No. 2008-02, Appellant: Wes Osowski
Mr. Wes Osowski was sworn in by Clerk Javier.
Mr. Osowski stated he was appealing the assessment of the Cessna N94260 aircraft because it had
been sold to Landon Aviation on October 10, 2007. He asked that the aircraft be removed from the tax
rolls.
Assessor Anderson recited KIBC3.24.015 regarding tax situs of personal property. He also stated that
Mr. Osowski's removal from the assessment roll, given the facts presented, would be addressed for
tax year 2009. Board members asked questions of Mr. Osowski and Assessor Anderson clarifying the
status of the plane in 2007 and 2008.
HURLEY moved to adjust the assessed value of the aircraft from $35,000 to $10. The amount was
excessive. The motion died due to a lack of a second.
The Assessor's assessment was upheld
Chair Juenger stated "According to Appellate Rule 602, the Appellant or the Assessor has the right of
appeal to the Superior Court of the State of Alaska from our decision. Should you wish to exercise
your right of appeal, you must do so by notifying the Borough attorney and initiating the process within
30 days from today. Failure to do so will forever bar you from any appeal of this case."
Docket #3, Appeal No. 2008-08, Appellant: Jim Ashford
Mr. Jim Ashford was sworn in by Clerk Javier
Mr. Ashford stated that his property was being unfairly valued in comparison with the other parcels in
the immediate vicinity. He estimated the market value of his property was $664,000 for the buildings
and $140,000 for the land. The increase in value of his land of $119,700 was not consistent with the
land values in his neighborhood. Mr. Ashford also noted purchase prices for adjacent properties and
asked that he be assessed at an average of the other properties, $5 per square foot.
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May 12, 2008 Page 2
Assessor Anderson reported that base land rate applied to the neighborhood was $5.00 per square
foot adjusted for size and street frontage (exposure). He explained standard appraisal methodology
rtechnique that was used. He reiterated that values are based on vacant land using its highest and best
I use.
HURLEY moved to adjust the land valuation from $254,400 to $223,900. The assessed value of the
land was excessive.
ROLL CALL VOTE ON MOTION FAILED THREE TO TWO: Hackett, Juenger, and Boehland (Nos);
Hurley and Nagan (Ayes).
Chair Juenger stated the following: "According to Appellate Rule 602, the Appellant or the Assessor
has the right of appeal to the Superior Court of the State of Alaska from our decision. Should you wish
to exercise your right of appeal, you must do so by notifying the Borough attorney and initiating the
process within 30 days from today. Failure to do so will forever bar you from any appeal of this case."
GENERAL COMMENTS AND QUESTIONS
Board member Hurley thanked the appellants for their participation.
Per Kodiak Island Borough Code 3.20.050(E) (9) Certification: The Board shall certify its actions to the
assessor within seven days following its adjournment.
The Board members agreed to meet on Tuesday, May 20, 2008 at 5:15 p.m. in the Borough Assembly
Chambers to certify the BOE results and approve the Board minutes.
ADJOURNMENT
HURLEY moved to adjourn the meeting.
VOICE VOTE ON MOTION CARRIED UNANIMOUSLY:
With no further business to come before the Board, the meeting was adjourned at 9 p.m.
ATTEST: l
Cassandra Juenger, ¢hair
Nova M. Javier, CM orough Clerk Approved: May 20, 2008
Kodiak Island Borough BOE Minutes
May 12, 2008 Page 3