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1972-05-08 Regular MeetingII. ROLL CALL 1 0 1! 1 1 6 5 1972 ORIGINAL BOARD OF EQUALIZATION MAY 8, 1972 I. CALL TO ORDER The meeting was called to order at 7:40 P.M. by the Presiding Officer, Norm Sutliff, in the Courtroom of the State Building, Kodiak, Alaska. Mr. Sutliff noted that Mr. Fred Brechan and Mr. Don Arndt were absent (Mr. Arndt arrived late) and that Mr. Bill Bardot had been appointed to sit on the Board of Equalization. Mr. Dick Sims made the motion to accept Mr. Bardot, seconded by Mr. Harry Clowes. There being no objections, Mr. Bardot was seated on the Board. Present Absent Norm Sutliff, Presiding Officer Dick Sims Harry Clowes Bill Bardot Don Arndt (late arrival) Fred Brechan Also present: John R. Lucas, Borough Assessor; Russell M. Walker, Clerk; Kathleen May, Assessing Clerk and in the audience, Mr. Wilton T. White, Borough Chairman; along with approximately five persons. III. CASES FOR CONSIDERATION BY THE BOARD It was noted that there were five (5) cases to be heard by the Board. CASE 72 -1 M. E. FLERCHINGER Lot 19, Sub Lot 4, U.S.S. 3099 The Clerk read the appellant's petition wherein Mr. Flerchinger stated that he considered the value of his 24' x 48' Brookwood trailer, lean -to, and land to be worth a total of $12,235. He stated he had purchased the property in 1971 for a total of $12,000. He further stated that he had paid $9,000 for the trailer plus $3,000 freight and did not feel that he should have to pay taxes on freight and even at that it still would not come to the $17,500 assessment on improvements. The lean-to, Hr. Flerchinger said, he had put up for $200 and it was assessed at $2,500. The Assessor's comments were then read by Mr. Walker. In his statement, Mr. Lucas said he felt the assessed value of the subject property to be a total of $19,735, $17,500 on the trailer and lean -to and $2,235 on the land. He further stated that shipping charges or freight are not separated from the assessed valuation and must be reflected when determining market value as they would not be ignored if and when the property was placed on the market. At the COaelusion of the reading, Mr. Sutliff invited Mr. Flerchinger to come forward to the Board for further discussion. It was noted that there was a $7,000 difference and that this difference was in the improvements total. It was agreed that the land value remain at $2,235 and lengthy discussion then began on the cost and value of the trailer and lean -to. (Mr. Arndt arrived at 8:07 P.M.) The Presiding Officer declared a recess to enable the Board to brief Mr. Arndt on the can in progress. The meeting reconvened at 8:25 P.M. After additional discussion, Mr. Sims made the motion to establish the assessment of the improvements at $15,000 with the land value remaining the same at $2,235 fora total valuation of $17,235. There being no second to the motion, the motion failed. Mr. Arndt then made the motion to value the improvements at $14,000 with the land remaining at $2,235 for a total of $16,235, seconded by Mr. Clowes. The motion carried as follows: • 0 7 1 ! '? 5 5 ^ 1972 ORIGINAL BOARD OF EQUALIZATION MAY 8, 1972 FOR AGAINST Don Arndt Dick Sims Bill Bardot Norm Sutliff Harry Clowes CASE 72 -2 Martin Urie's petition was read by Mr. Walker. The appellant stated he felt the value of the property should be $24,570 on the land and $150,000 on the building for a total of $174,570. He also stated that the purchase price of $306,000 made in 1971 was not truly indicative of fair market value as this is a Small Business Administration Mortgage with interest at 3% which equalizes the monthly mortgage payments to that of a mortgage approximately one -half the amount of this one. It was further noted that at the time of purchase this was the only local night club that had daily hours of 8:00 A.M. to 5:00 A.M. and that since that time the whole City of Kodiak has gone to those hours and it has reduced business at the Beachcomber's to a point where it is now unprofitable to operate. It was also cited that Sally's Bar in the City has had to pay the Beachcomber's operating expenses for the last few months. In conclusion, Mr. Urie's petition stated that he felt the fair market value would have to reflect the earning ability of the business not the outstanding indebtedness. Mr. Lucas' comments were then read by the Clerk. The Assessor stated he had reviewed the property on May 3, 1972 and felt the fair market value to be $24,570 on land and $242,120 on improvements and that he had based his values on a cost appraisal using a like utilities approach. He further stated that he had attempted an income approach appraisal; however, it was not possible to determine from the ledgers an accurate account of expenses and revenues. Mr. Lucas also felt that the sale price of the property could not totally be ignored. Martin and Sid Urie were in the audience and at this time were asked by Mr. Norm Sutliff to be seated with the Board. Lengthy discussion followed and it was repeatedley brought up by the appellants that this property had lost considerable business due to the City's new night club hours and they felt that some consideration should be given to this economic factor. Mr. Clowes made the motion to lower the assessment on the Beachcomber's proper to $175,000 with the land to remain at $24,570. Motion was seconded by Mr. Bardot. Questions were called and Mr. Arndt suggested that a decision on this case be delayed until a later date. Mr. White said this could be done if the meeting was recessed and reconvened at a later date. The motion on the floor was defeated as follows: Mr. Sims then presented the motion to recess and reconvene this case until May 15th, 1972, seconded by Mr. Bardot. Motion carried as follows: FOR Don Arndt Bill Bardot Harry Cloves Dick Sims Norm Sutliff MARTIN URIE FOR Lots 3 & 4, Block 2, U.S.S. 3066 AB SOLLY'S BEACHCOMBERS and Lot 3, Block 4, U.S.S. 3066 AB The Presiding Officer declared a recess. The meeting reconvened at 9:45 P.M. AGAINST Don Arndt Bill Bardot Harry Clowes Dick Sims Norm Sutliff AGAINST Page 2 - • •1 0 `) 1( i^ j 7 f 1972 ORIGINAL BOARD OF EQUALIZATION MAY 8, 1972 CASE 72 -3 Page 3 - ROLAND & BRIGITTE Lot 1 -A, Block 2, Shahafka Acres MC BRIDE Appeal of the McBride's was read by Mr. Walker. They stated that they felt the value of the property should be $2,430 on land and $9,500 on the buildings (consisting of a 60' x 12' Nashua house trailer, a 36' x 16' addition and two small sheds) for a total value of $11,930. They also stated these improvements had been assessed as real property when in fact the trailer is blocked up, with wheels in place, and the lean -to is resting on skids. The McBride's purchased this property in 1971; however, their purchase price of $20,000 included personal effects having a replacement value of between $3,500 and $4,000. The Assessor's comments read by the Clerk stated that Mr. Lucas felt the fair market value of the land to be $2,430 and the improvements to be $17,500 for a total value of $19,930. He stated that the size of the building attached to the mobile home was the determining factor in arriving at fair market value of the improvements. Roland and Brigitte McBride were asked to come forward to the Board. Mr. Clowes questioned what determined real property and Mr. Lucas said he valued this as real property due to the size of the addition and the fact that it would most likely be sold as a unit and not separately. Further discussion followed and Mr. Sims made the motion to value the real property at $13,000 on improvements and $2,430 on land, seconded by Mr. Clowes. The motion carried as follows: FOR AGAINST Bill Bardot Don Arndt Harry Clowes Dick Sims Norm Sutliff CASE 72 -5 VERNA MC FARLAND Lots 1, 2 & 3, Estelle Subdivision and Lots 2 & 3, Block 1, Southeast Addition The appellant's petition was read by the Clerk wherein she stated that she felt her property should be valued at $4,985 on land and $25,850 on buildings for a total valuation of $30,835. Attached to her petition, Mrs. McFarland had listed four properties and their values which she believed to be comparable to her property. She stated that she could list other like values and in light of these felt her petition to be justified. Mr. Lucas' comments read by i'.r. Walker stated that he felt the fair market value of the subject property to be $10,150 on land and $27,900 on improvements for a total valuation of $38,050. He also stated that the value of the improvements was obtained by using the cost approach with the market approach for verification and that the land value was obtained using the market data approach using recent sales of comparable properties. The unit value of the land, is $.64 per square foot. It was also noted that the land values have not changed on this property in the past seven years. The Assessor's comments concluded with his statements regarding the comparables Mrs. McFarland had given. Mrs. McFarland was in the audience and at this time was asked to be seated with the Board. Discussion followed and Mrs. McFarland questioned the surrounding land values. Mr. Lucas explained that they had the same unit square foot price. The appellant said she would like to see the property files and was assured the right to do so as these are public records at the Borough Office. Mr. Clowes made the motion to recess this case and reconvene on flay 15th, 1972, seconded by Mr. Arndt. The motion passed as follows: FOR AGAINST Don Arndt Bill Bardot Harry Clowes Dick Sims Norm Sutliff 1 0 1 1 1 ` 1 5 7 1972 ORIGINAL BOARD OF EQUALIZATION MAY 8, 1972 CASE 72 -4 DONALD J. ARNDT Lot 1, Block 1, Killarney Hills Subd. At this time, Mr. Arndt stepped down from the Board of Equalization and it was noted for the record that any decision on this case would require a 3 to 1 vote as there were now an equal number of members left on the Board. The Clerk read the petition and said the appellant was asking for a decrease in his land value to $9,000. At this point Mr. Arndt stated he had made an error in his request for revision of assessed valuation and it should in fact read $12,000. The Clerk noted same on Mr. Arndt's petition. The appellant's petition stated•he felt he had grounds for appeal as in order to build on the lot he would have to have a sewer lift station with an approximate cost of $9,000. The Assessor's comments were read by Mr. Walker wherein he stated he felt the market value of the property to be $24,000. He said a re- appraisal of the area had been done in October of 1971 and at that time the square foot value was reduced from $.45 to $.23. It was also stated that the problems of a sewer lift station along with costs for clearing had been taken into consideration at the time of the re- appraisal. Discussion followed and during the course of same, the zoning questioned. There seemed to be some doubt as to whether this or R -3 as of January 1st which is the date of assessment. Mr. were in fact R -3 he would agree with the Assessor's figure of were R -2 then he would like some consideration to his request. Fir. Sims moved to recess and reconvene this case until May 15th, 1972, to enable the Clerk to verify the zoning, seconded by Mr. Bardot. The motion carried as follows: FOR Bill Bardot Harry Clowes Dick Sims Norm Sutliff APPROVED: ,J O us ell M. Walker, Clerk AGAINST IV. ADJOURNMENT The Presiding Officer recessed the meeting at 11:30 P.M.and it is to reconvene on May 15, 1972, at 9:00 P.M. John R. Lucas Assessor Page 4 - of this lot was lot was zoned R -2 Arndt said if it $24,000; but if it * ** * ** In review of Mr. Arndt's property, on the 9th of May, 1972, it was noted that the property had been zoned R -3 in October of 1971.