1984-05-07 Regular MeetingKODIAK ISLAND BOROUGH
BOARD OF EQUALIZATION - May 7, 1984 - 7:00 PM
I CALL TO ORDER
The meeting was called to order by Chairman Jack Mann at 7:15 p.m.
in the Borough Assembly Chambers.
II ROLL CALL
Present Absent
Mr. Sid Cozart Mr. Lou Iani
Mr. Jack Mann
Mr. Reed Oswalt
Mr. Wayne Stevens
Mr. Kyle Taylor (Alternate)
A quorum was established.
III ELECTION OF CHAIRMAN - 1984
Mr. Taylor moved that Jack Mann remain Chairman of the Board,
seconded by Mr. Cozart. No other nominations were received and
it was determined by unanimous consent that Mr. Mann remain
Chairman.
IV MINUTES OF PREVIOUS MEETING
Mr. Cozart moved to adopt the minutes of the May 9, 1983 as
submitted, seconded by Mr. Oswalt. Motion carried by unanimous
voice vote.
V a. APPEAL NO. 1 - Mr. Andrew A. Cessna - Lot 4 Block 7
Miller Point
Assessor Wayne Haerer read the appeal into the record. Mr. Cessna
presented his testimony stating that he believed the land is over -
appraised. The Assessor presented the Borough's stand on the
issue. Discussion followed with members of the Board asking
further questions. Mr. Oswalt moved to deny the value put on by
the Assessor and return it to its original value of $20,925 which
would be apportionate to the neighbor 5 lot. Seconded by Mr.
Cozart. Motion carried by unanimous roll call vote.
b. APPEAL NO. 2 - All Alaskan Seafoods, Inc. - Lot 6 Block 18
New Kodiak Subdivision
The Assessor read the appeal into the record. Mr. Blott, represen-
ting All Alaskan Seafoods, Inc., presented testimony. Mr. Blott
stated that the whole processing segment of this industry is over
assessed based on fair market value. The Assessor presented the
Boroughs stand on the issue. Discussion followed between the
Board and Mr. Haerer. Mr. Blott rebutted that it was not his in-
tention of addressing either the land or the improvements, it was
just the sum total. Mr. Oswalt moved to set the appraisal back to
$1,133,260 total assessed valuation. Seconded by Mr. Stevens.
Motion carried 4 -1 with Mr. Mann casting the NO vote.
Mr. Taylor moved to amend the agenda by taking Appeal No. 4 before
Appeal No. 3. Seconded by Mr. Cozart. Motion carried with no
objection.
c. APPEAL NO. 4 - Ashford, Cherrier, Bulen d /b /a Kodiak Buskin
River Inn - Lot 1 & 2 Block 1400 A/P Lease
The Assessor read the appeal into the record. Mr. Ashford
stated they are using approximately 1 /5th of the land because of
undue harsh restrictions placed upon them by not only the Coast
Guard but the Corp. of Engineers and numerous other people. With
the restrictions, Mr. Ashford feels his rate should be lowered to
$1.25. The Board asked further questions of Mr. Ashford. The
Assessor presented the Borough's stand on the issue. Mr. Ashford
rebutted by stating that they are not situated in the "hub" of the
airport. After further discussion of the Board, Mr. Taylor moved
that the Buskin River Inn be assessed the same evaluation of $1.75
as the adjoining property of the warehouses in that area. Seconded
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KIB B.O.E. - May 7, 1984 Page 2
ATTEST:
by Mr. Stevens. Motion failed 2 -3 with Mr. Oswalt and Mr. Taylor
casting the YES votes.
Mr. Stevens moved to reduce the assessed fee from $3.25 per square
foot to $2.50 per square foot on the Buskin River Inn's Lots 1 & 2.
Seconded by Mr. Cozart. Motion carried 3 -2 with Mr. Oswalt and Mr.
Taylor casting the NO votes.
d. APPEAL NO. 3 - Hal t Air Service, Inc. - Lot 5 Block 1600 A/P
Lease USS 2539 and Tiedown #5 A/P Lease USS 2539
The Assessor read the appeal into the record. Mr. Hal Dierich
presented his testimony stating his objection to the assessment of
the undeveloped property. Discussion followed with the Board.
Mr. Haerer presented the Borough t testimony. Mr. Oswalt moved
that the value of the property lease on Tiedown #5 A/P Lease have
total assessed value of $1.21. Seconded by Mr. Stevens. Motion
failed 2 -3 with Mr. Oswalt and Mr. Taylor casting the YES votes.
Mr. Stevens moved to take a short recess to discuss Mr. Bolger t
interpretation regarding possessory interest in leaseholds and
the setting of values thereof. Seconded by Mr. Cozart. Motion
carried 4 -1 with Mr. Taylor casting the NO vote.
Mr. Cozart moved to accept the assessor's value of $2,050.
Seconded by Mr. Stevens. Motion carried 4 -1 with Mr. Oswalt
casting the NO vote.
Mr. Cozart moved to reduce the assessment of $3.25 to $2.50 a
square foot on Lot 5 Block 1600 A/P Lease USS 2539. Seconded by
Mr. Stevens. Motion carried by unanimous roll call vote.
e. APPEAL NO. 5 - Brechan Enterprises, Inc. - Lot B -4A, Tract B
Bells Flats AK Subdivision
The Assessor read the appeal into the record. Mr. Steve Tolton is
representing Brechan. Mr. Tolton stated that they felt the alleged
possessory interest should not be subject to property tax. He also
stated that unlike other people that lease property, Brechan does
not lease property but instead has the right to extract gravel.
The Assessor presented the Borough's stand on the issue.
Discussion followed with members of the Board asking further
questions.
Mr. Oswalt moved that the Material Sales Contract for Lot B -3 and
B -4A Tract B Bell's Flats Subd. are not subject to real property
tax and that the Borough Assessor shall not attempt to assess real
property taxes on these material sales contracts in the future
unless the contracts have been modified by the parties to provide
that the contracts are subject to the assessment as an interest in
real property. Seconded by Mr. Stevens. Motion failed 1 -4 with
Mr. Oswalt casting the YES vote.
Mr. Taylor moved that the Board go along with the zero assessment
evaluation and on their appeal docket that we continue to go along
with their $3,000 building assessment. Seconded by Mr. Stevens.
Motion carried by unanimous roll call vote.
Mr. Oswalt moved that the Board recommend to the Borough that the
Borough Assessor not attempt to assess real property on material sales
contracts in the future unless the contracts have been modified by the
parties to provide that the contracts are subject to assessment as an
interest in real property. Seconded by Mr. Taylor.
Mr. Taylor moved to amend by recommending to the Borough that all future
lease arrangements on material sales contracts specifically outline in
the lease of the material sales contracts the responsibilities for all
taxes and the payment thereof. Seconded by Mr. Stevens.
The motion as amended carried by unanimous roll call vote.
Mr. Oswalt moved to adjourn. Seconded by Mr. Taylor. Motion carried
with no objection. The meeting adjourned at 10:55 PM.
4 .
Acting Borough Clerk
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