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1998-05-13 Regular MeetingKODIAK ISLAND BOROUGH BOARD OF EQUALIZATION MEETING �lMay 13,1998 @ 7:30 p.m. L Borough Assembly Chambers A meeting of the Kodiak Island Borough Board of Equalization was held May 13, 1998, in the Borough Assembly Chambers of the Kodiak Island Borough Building, 710 Mill Bay Road. The meeting was called to order at 7:30 p.m. ROLL CALL There were present: Absent: Craig Fanning Jim Carmichael Karenia Hackett Tim Hurley Steve Jensen Cheryl McNeil (alternate) comprising a quorum of the Board; and Pat Carlson, Borough Assessor Judi Nielsen, Deputy Borough Clerk Lila Koplin, Appraiser/Technician BOARD ORGANIZATION HURLEY, moved to nominate Craig Fanning as chair. seconded by HACKETT There were no further nominations forthcoming. VOTE ON MOTION MOTION CARRIED ITEMS OF BUSINESS A. Approval of Agenda HURLEY, seconded by HACKETT Unanimous voice vote moved to approve the agenda. HURLEY, moved to amend the agenda by removing Appeal #98-02 seconded by HACKETT and Appeal #98-03 as they were withdrawn by the appellants. VOTE ON MOTION TO AMEND Board of Equalization Meeting May 13, 1998 Page 1 of 4 MOTION CARRIED Unanimous voice vote VOTE ON MOTION TO APPROVE AS AMENDED MOTION CARRIED Unanimous voice vote B. Minutes of the May 13, 1997 Board of Equalization. HURLEY, moved to approve the minutes of the seconded by HACKETT May 13, 1997 Board of Equalization. VOTE ON MOTION TO APPROVE MOTION CARRIED C. Hearing Unanimous voice vote Assessor Carlson was sworn in by Deputy Borough Clerk Nielsen. Assessor Carlson introduced the case. Docket No. 1: Anneal No. 98-01 Leisnoi/Trillium Joint Venture, Cliff Point Estates Subdivision vs Citizens of the Kodiak Island Borough. [ : Bill Laudner, Leisnoi controller, was sworn in by Deputy Borough Clerk Nielsen. Mr. Laudner said this was a joint venture establishing a subdivision to be marketed as residential home sites. He noted that the cost of an independent appraisal was cost -prohibitive; however, he felt the Borough Assessor had over -valued the property at Cliff Point. When asked why Leisnoi had not appealed previously, Mr. Laudner said an appeal was also cost -prohibitive. He said one lot was sold but that should not be the basis of the overall value of the lots. Mr. Laudner compared the 688 acre Cliff Point property with the 537 acre Salonie Creek Rifle Range property. He said the properties had many comparables; however, they were not comparably appraised. Mr. Laudner added that A -K Construction quoted the buyer's added cost of developing at $29,000 per lot. He clarified the costs would be $20,000 for septic and $9,000 for a foundation. He said there would also be added costs for back hoe work. He estimated the cost of the road to be $150,000 per mile with a minimum of two miles to serve 40 lots. In response to general questions, Mr. Laudner said the lots were not for sale at this time because of lawsuits. He understood that Leisnoi had to guarantee the title. He added that vacating the plats was not possible due to time and money problems and, as a joint venture, Trillium was the managing partner. Mr. Laudner requested the Board reduce the assessed value by 35 percent. Board of Equalization Meeting May 13, 1998 Page 2 of 4 Assessor Carlson said the Salonie Creek tract was appraised at $565,000; however, the Salonie Creek property was not a good comparison as all but 200 acres were on top of two ridges and were not accessible by roads. He clarified that many properties were unable to be sold but the taxes still had to be paid. He referred to Uyak Bay properties where the property values had decreased. He said Lot 1 was assessed at $37,900 due to the poor condition of the lot and the cost to upgrade the road. He added that the best lot was assessed at $135,000; however, it was not a normal residential piece of property. Assessor Carlson clarified that the median percentage of value was easier to assess in the Aleutian homes area where all the properties were similar. He contended that the property was assessed on the conservative side and equity could dictate that the assessed value be increased by 10 percent. He said the target was to assess values at what reasonable buyers would pay for the lots. Mr. Hurley felt it was difficult for the Board to review 40 separate parcels, and felt it would be more equitable if there were 40 separate appeals. Mr. Laudner understood the model used and that the assessed value should be adjusted on a percentage of that model; however, he felt the assessed value of the model was too high. He reiterated his desire that the assessed values be reduced by 35 percent. He contended that there was little demand for high-value lots. FINDINGS -OF -FACT: No motion was forthcoming; the assessment was upheld. The chair ended the appeal hearing by stating the following: "According to Appellate Rule 602, you, the appellant, or the Assessor have the right of appeal to the Superior Court of the State of Alaska C, 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." I Docket No. 2: Appeal No. 98-02 Cherrier, King, & Cherrier vs Citizens of the Kodiak Island Borough. Appeal No. 98-02 was withdrawn by the appellant. Docket No. 3: Anneal No. 98-03 Alaska Airlines vs Citizens of the Kodiak Island Borough. Appeal No. 98-03 was withdrawn by the appellant. 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. Board of Equalization Meeting May 13, 1998 Page 3 of 4 GENERAL. COMMENTS AND QUESTIONS A. Pending Legislation, House Bill 94 Confidentiality of Certain Municipal Tax Records. Assessor Carlson said this pending legislation was a problem in that the Board of Equalization could be liable for breach of confidentiality that would require executive sessions for discussion on most appeals. The Board appreciated receiving the packets prior to the meeting to review. Packets would continue to be distributed one working day prior to the meeting with information arriving after that time provided at the meeting. ADJOURNMENT HURLEY, seconded by HACKETT moved to adjourn. VOTE ON MOTION TO ADJOURN MOTION CARRIED Unanimous voice vote With no further business to come before the Board, the meeting was adjourned at 8:37 p.m. Z1174? //w f'lLble- Craig Fanning Chair ATTEST: L dith A. Nielsen eputy Borough Clerk Board of Equalization Meeting May 13, 1998 Page 4 of 4 MEMORANDUM TO Pat Carlson Borough Assessor FROM Craig Fanning, Chair Board of Equalization DATE May 15, 1998 SUBJECT Certification of Board of Equalization Actions Pursuant to KIB Code 3.20.050(F)(9), I hereby certify that the following accurately reflects the actions of the Board of Equalization at its May 13, 1998 meeting. 1998 BOARD OF EQUALIZATION ACTIONS DOCKET: Docket No. 1, Case No. 98-01 NAME: Leisnoi/Trillium Joint Venture DESCRIPTION: Cliff Point Estates subdivision ADJUSTMENTS. REVISIONS. OR CHANGES: None Chair ATTEST: _—.- y(udi Iffelkeen Deputy Borough Clerk