C CITY OF AUSTIN, TEXAS i MINUTES OF THE CITY COUNCIL CITY OF AUSTIN, TEXAS Special Meeting January 04, 1971 9:00 Α.Μ. COUNCIL CHAMBER, CITY HALL a The meeting was called to order with Mayor LaRue presiding. Roll Call: Present: Councilmen Johnson, MacCorkle, Price, Mayor LaRue Absent: Councilmen Atkison, Gage, Janes Mayor LaRue announced that this was a Special Meeting called for the purpose of hearing and acting on tax appeals, At 9:00 A.M. the Council heard the following Tax Appeal: Dalton Hielscher, Sr. 6201 Belfast Dr. Full Value by the Tax Dept. 1969 Full Value by the Tax Dept. 1970 Assessed Value by Tax Dept. Value Rendered by Owner Assessed Value Fixed by Board Lot 4, Block D, Meadowbrook Land Section 1 Improvements $ 2,045 8,802 $ 3,719 10,186 $ 2,790 7,640 Not Signed $ 2,790 7.640 Parcel No. 2-2517-0802 Total $10,847 $13,905 $10,430 $10,430 Mr. Dalton Hielscher, Sr. believed that greater tax equality would be achieved by computerization at reduced cost to the City. There was discussion concerning ways to reform the system. Mr. Jack Klitgaard, Tax Assessor-Collector, described the basis for the assessment on this property. Councilman Price favored tax assessments made on all property every year, rather than every four years. Councilman MacCorkle moved that the Council sustain the value set by the Board of Equalization as follows: Dalton Hielscher, Sr. 6201 Belfast Dr. Assessed Value Fixed Lot 4, Block D, by Board Council Action Meadowbrook Section 1 Parcel No. 2-2517-0802 Land $ 2,790 Improvements 7,640 Total $10,430 $ 2,790 7,640 $10,430 CITY OF AUSTIN, TEXAS January 4, 1971 The motion, seconded by Councilman Johnson, carried by the following vote: Ayes: Noes: Absent: Councilmen Johnson, MacCorkle, Price, Mayor LaRue None Councilmen Atkison, Gage, Janes APPEALS POSTPONED Mayor LaRue noted that the following Tax Appeal hearings would be postponed, in accord with the request of Mr. James Sloan, for a full Council: A. L. HILL AND B. O. BOZEMAN, by James Sloan R. E. AUSTIN CORPORATION, by James Sloan VIRGIL F. AND FRANK BOMAR, by James Sloan Mayor LaRue also noted that the following Tax Appeal hearing would be postponed: C. B. SMITH, JR., by Rogan Giles APPEAL WITHDRAWN Mayor LaRue noted that the following Tax Appeal had been withdrawn: HAROLD L. HEMINGSON RECESSED MEETING APPEALS HEARD 11:00 Α.Μ. Mrs. Gladys F. Cavett 1309 West 34th St. Full Value by the Tax Dept. 1969 Full Value by the Tax Dept. 1970 At 11:00 A.M. the Council heard the following Tax Appeal: Value Rendered by Owner Assessed Value Fixed by Board Assessed Value by Tax Dept. Lot 5, George A. Freund Land $ 4,281 Parcel No. Improvements 7,735 $35,679 8,612 $26,760 6,460 $3,210 5,800 $26,760 6.460 2-1901-0102 Total $12,016 $44,291 $33,220 $9,010 $33,220 Mrs. Peggy Cavett Walden objected to the valuation of this property at $2.00 per square foot, as it was currently residential in character and zoning. She believed that the appraisal was premature at this time, although it might be appropriate should the property be sold and developed commercially. Mr. Klitgaard noted the sales of 26 parcels of property in this area to one buyer and the sale prices. 3 CITY OF AUSTIN, TEXAS January 4, 1971 Mr. Wayne DeBehnke suggested that it would be to the City's advantage not to increase the assessment on the property at this time so that commercial development would not be deterred. Ms. Nell Mapes, Mrs. Cavett's niece, spoke in favor of lowering the assessment. Councilman MacCorkle moved that the Council sustain the value set by the Board of Equalization and set the assessed value at $33,220. The motion, seconded by Councilman Johnson, failed to carry by the following vote: Ayes: Noes: Absent: Councilmen Johnson, MacCorkle, Mayor LaRue Councilman Price Councilmen Atkison, Gage, Janes Councilman Price moved that the full value of the land in this parcel be adjusted to $1.35 per square foot. The motion, died for lack of a second. Mayor LaRue announced that the hearing would be recessed until more Council members could be present, RECESSED MEETING 1:10 Ρ.Μ. The Council meeting was reconvened at 1:10 P.M. with Mayor LaRue presiding. Roll Call: Present: Absent: Councilmen Gage, Johnson, MacCorkle, Price, Mayor LaRue Councilmen Atkison, Janes The Council heard the following Tax Appeals: Mrs. May F. Dear 3104 Wabash Ave. Full Value by the Tax Dept, 1969 Full Value by the Tax Dept, 1970 Assessed Value by Tax Dept. 70 x 220 feet George W. Spear Land $ 3,246 $30,800 League Improvements 9,702 10,210 $23,100 7,660 Signed Value Rendered by Owner Not Assessed Value Fixed by Board $20,210 7,660 Parcel No. 2-1901-0123 Total $12,948 $41,010 $30,760 $27,870 Mrs. May Dear objected that the increase in valuation was too high, Ms. Nell Mapes, Mrs. Dear's daughter, supported this claim, Mr. Klitgaard stated that the land only had been valued at $2.00 per square foot, consistent with the market value of other land in the area, It was noted that the Board of Equalization had adjusted this to $1.75 per square foot. Councilmen Johnson and MacCorkle expressed reservations about making adjustments for this particular piece of property without doing the same for other properties in the area. Councilman Gage moved that the full value of the land property in this parcel be adjusted to $1.50 per square foot. The motion, seconded by Councilman Price, failed to carry by the following vote: _ CITY OF AUSTIN, TEXAS January 4, 1971 Ayes: Noes: Absent: Councilmen Gage, Price Councilmen Johnson, MacCorkle, Mayor LaRue Councilmen Atkison, Janes Discussion ensued between the Council and Mr. Klitgaard as to the authority of the Council in making adjustments for specific cases only. Mayor LaRue announced that the hearing would be recessed for a full Council. Mayor LaRue also noted that the Council had no authorization to consider the property of May F. Dear at 1100 W. 31st Avenue, as no appeal of the Board of Equalization's decision on it had been filed with the City Clerk. Freund Subdivision Parcel No. Mrs. Peggy Cavett Walden Full Value Full Value by the Tax 3300 Block Old Bull Dept, 1969 by the Tax Dept, 1970 Assessed Value by Tax Dept. Value Rendered by Owner Assessed Value Fixed by Board Creek Road Lot 2, George A. Land $4,290 $43,000 $32,250 $3,220 $28,220 Improvements 0 0 0 0 Total $4,290 $43,000 $32,250 $3,220 $28,220 2-1901-0127 Mrs. Peggy Cavett Walden objected to an approximate 800% increase in assessed value on this property. She objected to an assessment on commercial values as this property had been and would remain residential in character and zoning. She presented figures on the offers which had been made for the land and the conditions attached to those offers including sale of the adjoining property which was a family estate. She presented a report delineating sale prices on other properties gathered from Tax Department information. There was considerable discussion of the breakdown of these sale prices for land and for improvements. Mrs. Walden stated that land north of 38th Street should be valued higher than land south of 34th Street. She believed that land south of 34th Street had been valued excessively high when the zoning and usage had not changed. She believed that the 50 per square foot valuation of residential land south of 31st Street and north of 38th Street was a just and fair valuation, and that residential property south of 34th Street should also ve valued at 50ç per square foot. Mr. Klitgaard defended the appraisal on the basis of highest and best use, regardless of the property's present use and zoning, as dictated by the market, which had been set at $1.75 per square foot by the Board of Equalization. Offers for buying the land had not been used as a basis for the appraisal. There was discussion as to the boundaries of the area in which the buyer of 26 other properties in the area was interested, Councilman Price expressed concern that the assessments made might be forcing owners of residences to sell to developers. Mrs. Walden believed that the appraisal which might be appropriate for commercial development was premature at this time. There was further discussion of the location of the 26 properties purchased by one buyer. > 5 CITY OF AUSTIN, TEXAS January 4, 1971 Councilman Price moved that the full value of the property in this parcel be adjusted to $1.50 per square foot. The motion, seconded by Councilman Gage, failed to carry by the following vote: Ayes: Noes: Absent: Councilmen Gage, Price Councilmen Johnson, MacCorkle, Mayor LaRue Councilmen Atkison, Janes Councilman MacCorkle moved that the Council sustain the value set by the Board of Equilization and set the assessed value at $28,220. The motion, seconded by Councilman Johnson, failed to earry by the following vote: Ayes: Noes: Absent: Councilmen Johnson, MacCorkle, Mayor LaRue Councilmen Gage, Price Councilmen Atkison, Janes Mayor LaRue announced that the hearing would be recessed for a full Council. Mrs. Cavett DeBehnke Full Value Full Value by Wayne DeBehnke by the Tax Dept. 1969 by the Tax Dept. 1970 Assessed Value by Tax Dept. Value Rendered by Owner Assessed Value Fixed by Board West 33rd St. Lot 3, George A. Land $3,444 $29,640 $22,230 $2,580 Freund Improvements 0 0 0 0 $22,230 0 Subdivision Parcel No, Total $3,444 $29,640 $22,230 $2,580 $22,230 2-1901-0114 Mr. Wayne DeBehnke stated that the Tax Department's appraisal of market value presumed willing buyers and sellers and there was no willing seller for the property in question. The buyer of properties in the area, referred to in the previous discussions, had not indicated an interest in this specific property. Councilman Johnson noted that this property had little street frontage and should probably be valued lower accordingly. Mr. Klitgaard did not believe this was an important consideration to the prospective buyer and that appraisal of fair market value did not require the existence of willing buyer and seller. Councilman MacCorkle moved that the full value of the property in this parcel be adjusted to $1.50 per square foot. The motion died for lack of a second, Councilman Gage moved that the full value be adjusted to $1.25 per square foot and that the Council set the assessed value of the property as follows: Mrs. Cavett DeBehnke, by Wayner DeBehnke West 33rd Street Lot 3, George A. Freund Subdivision Parcel No. 2-1901-0114 Assessed Value Fixed by Board Council Action Land $22,230 $13,890 Improvements 0 0 Total $22,230 $13,890 =CITY OF AUSTIN, TEXAS= January 4, 1971 The motion, seconded by Councilman Price, carried by the following vote: Ayes: Noes: Absent: Councilmen Gage, Johnson, MacCorkle, Price Mayor LaRue Councilmen Atkison, Janes Councilman Johnson noted that he was voting "Aye" because he believed that limited access lowered the value of this property. At this time the Council reopened the hearing on the following Tax Appeal recessed from the morning session: Mrs. Gladys F. Cavett Full Value by the Tax 1309 West 34th Street Dept. 1969 Full Value by the Tax Dept. 1970 Assessed Value by Tax Dept. Value Rendered by Owner Lot 5, George A. Freund Parcel No, Land $ 4,281 Improvements 7.735 $35,679 8,612 $26,760 6,460 $3,210 5,800 Assessed Value Fixed by Board $26,760 6.460 2-1901-0102 Total $12,016 $44,291 $33,220 $9,010 $33,220 Mrs. Gladys Cavett objected to a three-fold increase in her assessment and tax. She expressed her concern about being forced to move out of her home and felt that she should not now be taxed for something that did not yet exist. It was noted that the appraisal set averaged $1.98 per square foot. Councilman Johnson moved that the full value of the improvements remain set at the 1969 level and that the Council sustain the value set by the Board of Equalization on the land and set the assessed value on the land at $26,760. The motion, seconded by Councilman MacCorkle, failed to carry by the following vote: Ayes: Noes: Absent: Councilmen Johnson, MacCorkle, Mayor LaRue Councilmen Gage, Price Councilmen Atkison, Janes Councilman Gage moved that the full value of the improvements remain set at the 1969 level and that the full value of the land be adjusted to $1.85 per square foot. The motion, seconded by Councilman Price, failed to carry by the following vote: Ayes: Noes: Absent: Councilmen Gage, Price Councilmen Johnson, MacCorkle, Mayor LaRue Councilmen Atkison, Janes Mayor LaRue announced that the hearing would be recessed for a full Council -CITY OF AUSTIN, TEXAS January 4, 1971 7 Austin Baking Co. by Robert McCreary 5800 Airport Blvd. 12.89 acres James Full Value by the Tax Dept. 1969 Full Value by the Tax Dept. 1970 Assessed Value Value by Rendered Tax Dept. by Owner Assessed Value Fixed by Board Land $222,681 $ 701,860 Improvements 319,193 318,252 Total $541,874 P. Wallace Survey Parcel No. 2-2610-0303 $526,400 $167,010 $503,900 238,690 239,390 238,690 $1,020,112 $765,090 $406,400 $742,590 Mr. Robert McCreary did not challenge the appraisal made on the basis of fair market value, but he objected to the quadrant system of taxation. A change would save much time wasted. He noted that a lawsuit was currently in progress and urged the Council to go into Executive Session to consider tax reform. Mayor LaRue did not believe it had yet been demonstrated that any other system would improve the taxpayers' situation, particularly with regard to the operating costs of the Tax Department. Councilman Price believed the quadrant system should and would be replaced. Councilman Johnson believed it would be questionable to change the present system until the lawsuit pending was settled, but he felt that there was a better system, Councilman Johnson moved that the Council sustain the value set by the Board of Equalization as follows: Austin Baking Co., by Robert McCreary 5800 Airport Blvd. 12.89 acres James P. Wallace Survey Parcel No. 2-2610-0303 Assessed Value Fixed by Board Council Action Land $503,900 Improvements 238,690 $503,900 238,690 Total $742,590 $742,590 The motion, seconded by Councilman MacCorkle, carried by the following vote:. Ayes: Councilmen Johnson, MacCorkle, Price, Mayor LaRue Noes: None Present But Not Voting: Councilman Gage Absent: Councilmen Atkison, Janes APPEAL WITHDRAWN City Manager Andrews noted that the following Tax Appeal had been withdrawn: MOBIL OIL CORPORATION, by Glenn Dunn CITY OF AUSTIN, TEXAS January 4, 1971 APPEALS HEARD 8 Ordell Dube Full Value 5114 Waterbrook Dr. by the Tax Dept. 1969 Full Value by the Tax Dept. 1970 Assessed Value by Tax Dept. Value Rendered by Owner Assessed Value Fixed by Board Lot 2, Block G, Windsor Park3, Land $1,746 Section 1 Improvements 7,098 $ 2,777 7,788 $2,080 Not 5,840 Signed $2,080 5,840 Parcel No. 2-1819-0624 Total $8,844 $10,565 $7,920 $7,920 Mr. Ordell Dube stated that there was a creek whose flow was caving off a portion of his property, and he believed that this affected the fair market value of the property. He had been trying to get the City to remedy this condition. Mayor LaRue asked the City Manager to examine this situation. Mr. Klitgaard noted the amounts of recent sales on this street. He stated that the loss of a few feet of land would have a negligible impact on the amount of tax levied. Councilman Gage noted that the Mayor would instruct the City Manager to attend to the matter of the creek undermining the property and asked Mr. Dube to report back to the Council if the situation was not corrected, Councilman Gage moved that the Council sustain the value set by the Board of Equalization as follows: Ordell Dube Assessed Value Fixed 5114 Waterbrook Dr. by Board Council Action Lot 2, Block G, Windsor Park 3, Section 1 Land $2,080 Parcel No. 2-1819-0624 Improvements 5,840 $2,080 5,840 Total $7,920 $7,920 The motion, seconded by Councilman Price, carried by the following vote: Councilmen Gage, Johnson, MacCorkle, Price, Mayor LaRue Ayes: Noes: None Absent: Councilmen Atkison, Janes Chevy Chase Center by James C. Motley Full Value by the Tax Dept, 1969 Full Value Assessed Value by the Tax Dept. 1970 Value by Rendered Tax Dept. by Owner Assessment Value Fixed by Board Hwy, 183, Lots B, D, F and H Land $666,720 $500,040 Signed $500,040 Chevy Improvements 0 0 0 Chase Center of Austin Total $666,720 $500,040 $500,040 Parcel No. 2-3215-0105 Land $21,480 Vacant Improvements 0 $ 53,700 0 $ 40,280 0 Not Signed No Appeal 5.37 acres James P. Wallace Survey Total $21,480 $ 53,700 $ 40,280 Parcel No, 2-3215-0106 9 _ CITY OF AUSTIN, TEXAS January 4, 1971 Mr. James C. Motley stated that the 70% increase in taxes would impede the development of a proposed $20 million park. He wanted to know if they could count on no further increase in valuation for the next four years. Councilman Johnson felt that the lawsuit to which Mr. Motley was a party undermined the ability to predict that the quadrant system would remain unchanged. Councilman Price moved that the Council sustain the value set by the Board of Equalization as follows: Chevy Chase Center, by James C. Motley Hwy. 183 Lots B, D, F and H Chevy Chase Center of Austin Parcel No. 2-3215-0105 Assessed Value Fixed by Board Council Action Land $500,040 $500,040 Improvements 0 0 Total $500,040 $500,040 The motion, seconded by Councilman Johnson, carried by the following vote: Ayes: Councilmen Johnson, MacCorkle, Price, Mayor LaRue Noes: None Present But Not Voting: Councilman Gage Absent: Councilman Atkison, Janes MEETING SET After Discussion, Mayor LaRue announced that a Special Meeting would be held on January 12, at 9:00 A.M. to hear Tax Appeals, if acceptable to the other members of the Council. ADJOURNMENT The Council then adjourned. ATTEST: City Clerk APPROVED: Mayor