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October 16, 2008 Board of Review Minutes
Town of Mercer Board of Review – October 16 2008 - Minutes
In the absence of Chairman Kichak, Supervisor Jim Lambert called the Board of Review to order at 9:00 am October 16th 2008.
Roll call: Jim Lambert, Jeff Stenberg, Bonnie Banaszak, Toni Sendra and Clerk Opal Roberts. Absent: Jim Kichak (arrived at 9:48 am).
Assessor Paul Carlson gave the board an overview of the procedures for the Board of Review. His handout for the board included the Annual Statistical Change, Major Class Comparison, Annual Levy changes, and a listing of property sales for the last several years.
Only one objector was scheduled but Mr Ethan Welch was present and asked the board to hear his objection even though it was not filed with the assessor for an appointment. The board agreed to hear Mr Welch’s objection.
Objector: Ethan Welch. Computer number ME 3331. 2008 Assessment $123,500. Property owners opinion of value $90,000.
Mr Welch and Mr Carlson were sworn in at 9:25 am by the Clerk. Mr Lambert asked Mr Welch to present his evidence and explain how he arrived at his evaluation.
Welch claimed that the condition of the access road reduces the value of the property. His dwelling is 20’ x 24’ and the original portion of the structure is 82 years old. Lambert asked what the assessment was for 2007 and the answer was $91,000 with the Fair Market Value at $118,600.
Lambert asked Carlson if he had anything to add. Carlson said “no”.
Objector: Rick Duley. Computer ME 3849 at 5844N Rice Lake Road. The 2008 Assessment is $719,500 with an estimated Fair Market Value at $698,500. Property owner’s opinion of value is $445,000.
Mr Duley and Mr Carlson were sworn in at 9:40 am by the Clerk. Mr Lambert asked Mr Duley to present his evidence and explain how he arrived at his evaluation.
Mr Duley stated that his evaluation was based on the actual market value sale, which he feels has higher precedence than any comparable sale or estimated value. Any property that may be in the area that has sold did not sell in as timely a manner as this property. If they sold for more or less money they are still only “like” property, they do not have the unique aspects of this property. Therefore, the most accurate market value is the price for which it was sold. This wasn’t a closed sale, it wasn’t a private sale, it was an auctioned sale. This auction was advertised in a much larger area than real estate sales are usually advertised. The highest price that could be paid for this property was paid on September 16th 2008 at $445,000. This property had been on the market for approximately four years. Roberts asked if this was an auction sale and Mr Duley said ‘yes”.
Carlson gave the board a listing of property sales in Mercer Township for the past three years. This property has 421 feet of lake frontage so his land value computation is $232,900 or about $553 per foot. Mr Alexander was not a willing seller of the property because circumstances forced him to dispose of the property through this auction. This was not an arms length transaction because Mr Alexander was compelled to sell.
Banaszak asked how many of the comparable property sales had multiple buildings. Carlson explained that only one had two dwellings. Roberts asked the square footage of the residence. Mr Duley said 4,600 square feet. Carlson stated that structures include the home, the swimming pool building, a pole barn, a generator shed and storage for the travel bus.
Mr Duley asked why Carson used this list of properties for comparison to develop market value and didn’t Carlson have properties that were closer to the value of this property. Carlson stated he could have used properties from other municipalities but in his opinion these were comparable. Mr Duley said that with a value range of $75,000 to $115,000, which does not approach the value of this property, should not be used as comparables. Carlson explained that there have been no 400’ sales. He had to use the best information available. Lambert asked what the sale price was per foot of lake frontage for the lots that were sold on Rice Lake. Carlson said one lot had 125’ and sold for $920 per foot. The other lot had 106’ and sold for $1,037 per foot.
Carlson stated the board had two things to consider in their deliberations. Number one is the question of whether or not this was an arms length transaction. Number two is the value of the property versus the price for which it was sold.
Mr Duley said the assessor couldn’t find any comps as convincing as the actual amount of the sale. The assessor’s assumption of this not being an arms length sale is rebutted by the signature of Mr Alexander on the real estate listing and the auction so this was a willing sale. The property was over valued to begin with and that was why it did not sell for four years. They continued to drop the price and finally decided to sell the property for the highest dollar amount they could get. No one would have bought this property for the price at which it was listed. Market value is set by the sale of the property, which is $445,000. If the property is valued at $800,000 then that amount has to be substantiated with other sales of like property that have sold within the last six months, otherwise they do not constitute a comparable sale. The assessor will agree that he couldn’t find any such sales and that was why it was necessary to develop these other properties. Lambert observed that this property is unique.
Lambert thanked the property owners and stated that a determination on their appeals would be made before the close of the board’s hearing. The determination along with alternative avenues of appeal will be mailed today.
Re: Ethan Welch
Motion made by Roberts, seconded by Banaszak, that exercising its judgment and discretion, pursuant to WI Stats. Sec 70.47 (9)(a) the Board of Review, by majority and roll call vote hereby determines that the Assessor’s valuation is reasonable in light of all the relevant evidence.
Roll Call: Lambert – yes; Stenberg – yes; Banaszak – yes; Sendra – yes; Roberts – yes. Kichak abstained due to not being present for Mr Welch’s presentation.
Re: Rick Duley
Motion made by Sendra, seconded by Roberts, that exercising its judgment and discretion, pursuant to WI Stats. Sec 70.47 (9)(a) the Board of Review, by majority and roll call vote hereby determines that the Assessor’s valuation is correct.
Roll call: Lambert – yes; Stenberg – yes; Banaszak – yes; Sendra – yes; Roberts – yes. Kichak abstained due to not being present for the beginning of Mr Duley’s presentation.
Motion made by Banaszak, seconded by Sendra, to adjourn the Board of Review at 10:20 am. Carried.
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