2006-05-23 Regular MeetingKODIAK ISLAND BOROUGH
BOARD OF EQUALIZATION MEETING
May 23, 2006, 7:30 p.m.
City Conference Room, Room 221 in the Borough Building
A meeting of the Board of Equalization was held on May 23, 2006 in the City Conference Room, Room 221 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 Jim Nagan, Tim Hurley, Louise Stutes, and Cassandra Juenger. Absent were Board
members Karenia Hackett and Cheryl McNeil. Staff present were Borough Assessor Tom Anderson, Borough
Clerk Judi Nielsen, and Assistant Clerk Jessica Basuel.
APPROVAL OF AGENDA
NAGAN moved to approve the agenda, seconded by JUENGER
VOICE VOTE ON MOTION TO APPROVE THE AGENDA CARRIED UNANIMOUSLY
The Clerk administered the oath to Assessor Anderson.
ITEMS OF BUSINESS
A. Hearings
DOCKET #7 — Appeal No. 2006-08 - Kodiak Associates vs. Kodiak Island Borough
At 7:28pm Scott Phinney, agent for Kodiak Associates phoned in.
Anderson said that at 4:30 p.m., they received a fax from appellant to be distributed to the Board.
Mr. Phinney said he was the agent for the appellant and not their attorney. Nielsen administered the oath to Mr.
Phinney.
Assessor Anderson said 98 pages were received, but only the new documents were administered to the board.
Phinney said the property was affordable low-income housing operated under the national housing act. The
property with a value of 2.7 million does not attract investors. The value should be based on net operating income
and the market data is not consistent with the market generally.
Anderson said that after a complete review of the Appellants' evidence and applicable laws, the Assessing
Department's conclusion was that the subject property was properly and accurately valued for taxation purposes. As
provided in AS 29.45.110, the assessor shall assess all property at its "full and true value" which must include all
interests in the property. In real estate terms this was commonly referred to as the Fee Simple interest, and was
defined by the 11's edition of the Appraisal of Real Estate. The appellant does not dispute the value of the Fee
Simple interest in this case. Rather, their sole contention was that the subject property should be valued as
encumbered.
Juenger noted that the only provision in Borough Code that allowed the board to make any adjustments was if it
qualified under federal statue title 26 and there were no documents provided to the Board that indicated the
r appellant qualified under that program.
IL Mr. Phinney in response to Juenger said that the property was not a section 42 project.
Kodiak Island Borough BOE Minutes
May 23, 2006 Page 1
In response to questions, Anderson said the condition did affect the value, and the value was assessed by the cost
approach and Marshall system.
Phinney did not agree with Anderson that there was "no public benefit from the program".
Stutes' motioned to have Anderson look at the cost approach failed for lack of a second.
FINDINGS -OF -FACT:
There was no motion forthcoming; therefore, the Board upheld the Assessor's determination.
The Chair ended the appeal hearing by stating 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
NONE
ADJOURNMENT
STUTES moved to adjourn the meeting, seconded by JUENGER
VOICE VOTE ONMOTION CARRIED UNANIMOUSLY
With no further business to come before the Board, the meeting was adjourned at 8:11555 p.m.
�i'iYNO �f' � �-�
Jindpfagan, Chair
Judith A. Nielsen CIvIC I
Borough Clerk l/
Approved:
Kodiak Island Borough BOE Minutes
May 23, 2006 Page 2