CITY OF AUSTIN, TEXAS MINUTES OF THE CITY COUNCIL CITY OF AUSTIN, TEXAS Special Meeting December 22, 1976 4:00 Ρ.Μ. Council Chambers 301 West Second Street 145 Roll Call: The meeting was called to order with Mayor Friedman presiding. Present: Mayor Friedman, Councilmembers Himmelblau, Hofmann, Lebermann, Linn Absent: Mayor Pro Tem Snell, Councilmember Trevino Mayor Freedman stated that this was a called Special Meeting of the City Council for the purpose of hearing tax appeals. Action Deferred on Tax Appeal Mayor Friedman stated that action on the following tax appeal would be postponed until January 13, 1977. The hearing had been held and closed on December 21, 1976. The appellant did not appear to be heard. (Action later) 1975 1976 1976 Appraised Value Appraised Rendered 1976 Assessed 1976 Value by Value Value Value Property 100% 100% 75% 75% Board of Equalization 75% Land $ 9,910 $10,570 Did Not $ 7,930 $ 7,930 Imps. 32,003 42,895 Render 25,170 25,170 Total $41,913 $53,465 *$33,100 $33,100 Ownership and Description: HOLLAND PAGE (1st of 2 properties) (continued) *Assessed value less $7,000 Homestead Exemption. (continued) Parcel No. 1-4204-1005 Lot 11, Block F, Northwest Hills Mesa Oaks Phase 4A Address of Property: 7602 Rockpoint Drive 2504 CITY OF AUSTIN, TEXAS December 22, 1976 1975 Appraised Value 1976 Appraised Value Property 100% 100% 1976 Rendered Value] 75% 1976 Assessed Value 75% 1976 Value by Board of Equalization 75% Land $59,193 $ 70,237 Did Not Imps. 26.559 31,784) Render $52,680 23,840 $52,680 23,840 Total $85,752 $102,021 $76,520 $76,520 Ownership and Description: HOLLAND PAGE (2nd Property) Parcel No. 2-3714-0804 3.52 Acres James P. Wallace Survey Address of Property: 8305 Lamar Tax Appeals Heard The Council then publicly heard the following tax appeals: 1975 Appraised 1976 Appraised Value Value 1976 Rendered Value Property 100% 100% 75% 1976 Assessed Value 75% 1976 Value by Land $ 411,938 $ 631,638 Imps. 1.243.059 1,888,137 Did Not Render Total Board of Equalization 75% $ 473,730 $ 473,730 1,416,100 1,416,100 $1,889,830 $1,889,830 $1,654,997 $2,519,775 Ownership and Description: GAGE WESTERN INVESTMENTS, INC. By Leslie Gage (1st of 4 properties) (continued) (continued) Parcel No. 2-3707-0242 Lot B, Resub. of Tract 2 North Village Address of Property: 2103 Anderson Lane 2505 CITY OF AUSTIN, TEXAS= December 22, 1976 Value by Board of Equalization 75% 1975 Appraised Value 1976 Appraised Value ! Property 100% 100% 1976 Rendered Value 75% 1976 Assessed Value 75% 1976 Land $19,600 $24,500 Imps. 0 Did Not Render $18,380 None 0 Total $19,600 $24,500 $18,380 7 Ownership and Description: GAGE WESTERN INVESTMENTS, INC. By Leslie Gage (2nd Property) Parcel No. 2-3707-0244 Lot A, Resubdivision of Tract 2, North Village Address of Property: Anderson Lane 1975 Appraised Value Property 100% 1976 Appraised Value 100% 1976 Randered Value 75% 1976 Assessed Value 75% 1976 Land $1,000 $1,500 Did Not $1,130 Imps. 0 0 0 Value by Board of Equalization 75% None Total $1,500 $1,130 $1,000 Ownership and Description: GAGE WESTERN INVESTMENTS, INC. By Leslie Gage (3rd property) (continued) (continued) Parcel No. 2-3707-0231 S. 144 feet of Lot 3, Harmony Missionary Baptist Church Subdivision Address of Property: Off Anderson Lane 2506 CITY OF AUSTIN, TEXAS December 22, 1976 1975 Appraised Value Property 100% 1976 Appraised Value 100% Land $11,305 Imps. 6.777 $13,189 9,090 Did Not Render $ 9,890 6,820 1976 Rendered Value 75% 1976 Assessed Value 75% 1976 Value by Board of Equalization 75% None Total $18,082 $22,279 $16,710 Ownership and Description: GAGE WESTERN INVESTMENT, INC. By Leslie Gage (4th property) Parcel No. 2-3707-0229 North 143 feet of Lot 3, Harmony Missionary Baptist Church Subdivision Address of Property: Anderson Lane Mr. Leslie Gage, representing Gage Western Investments, Inc., distributed and then read a statement to the Council. He objected to the land value placed on the North Village Center, which had been increased from 75c to $1.15 per square foot. He enumerated the tax increases on several buildings in the North Village Center, and stated that there had been an overall increase of 29.53% on buildings in the Center. He compared the tax valuation of Gulf Mart at $8.82 per square foot with his buildings extending from Kiddie City to Foodland. He was particularly concerned over the tax increase of 96% on a 14,950 square foot 2nd floor warehouse which had no heat, air conditioning, flooring, ceiling or paint. The valuation had increased from $3.61 to $7.09 per square foot. He then compared the first floor of the same buildings with the following shopping centers: Cameron Village, rated M3 Reagan Square, rated M4 Allandale, rated M3+ Northwest Center, rated M3 Twin Oaks, rated M3 CITY OF AUSTIN, TEXAS 2507 December 22, 1976 He then discussed other valuations in the Center and stated that those values were generally higher than comparables in the market. He stated that the valuation of his paving (asphalt) had increased by 66%. He could not pass the increases along to most of his tenants because he had negotiated flat rate leases with no tax increase escalation clause. Mr. Mayor Friedman asked Mr. Klitgaard to clarify the meaning of the various classifications placed on the buildings Mr. Gage had referred to. Klitgaard explainted that the gradings placed on store and warehouse buildings in the District ranged from 1 to 4+ with the following symbols denoting the type of construction: W-wood, M - masonry, S structural steel, C concrete. The grading placed on Mr. Gage's property was an $44,, which was two grades below the maximum classification placed on a store. Various modifiers effected the value of buildings. Regarding Mr. Klitgaard stated that he did not agree that Mr. Gage's comparison of his property with Gulf Mart was realistic. Gulf Mart was an economically distressed property which had been vacant for a considerable period of time, and was less expensive structure than North Village. Some of the other comparisons were older centers which were constructed of masonry-bearing walls. Mr. Gage's questioning of the valuation placed on the 2nd floor warehouse space, Mr. Klitgaard stated that the warehouse could be considered separately or the grade on the store could be lowered. Either way it produced essentially the same value on the property. Concerning Mr. Gage's question on the value of paving, Mr. Klitgaard stated that all cost units which applied uniformly to all property had been increased this year, including asphalt areas. There were no provisions in the appraisal process which permitted depreciation or reduction of components or sections of a building. The entire property was assigned a life expectancy and depreciated as a whole.' Regarding the land, Mr. Klitgaard stated that it was somewhat cut up, but there was frontage on Anderson Lane as well as some limited frontage on Burnet Road. Property on Anderson Lane typically was valued at $1.25 per square foot. The Board of Equalization felt that the $1.15 valuation was well within the range of comparable property in the area. Mr. Gage disagreed with the $3 classification placed on the 2nd floor warehouse. He felt that the classification was too high due to the lack of improvements to the area. Mr. Klitgaard stated that in comparing North Village (S4-) with Reagan Square (M4), the higher quality grade assigned to Reagan Square was offset by better construction of North Village. There was further discussion regarding the valuation placed on Gulf Mart and North Village. Councilmembers Himmelblau and Lebermann felt that the valuation on the 2nd floor warehouse area in North Village was too high. Mr. Klitgaard stated that the warehouse area had the highest classification (S3) in the system for that type of property. The store portion did not have the highest classification possible. Mr. Klitgaard stated that one of the largest increases in the unit cost schedule which was updated in 1976 was in warehouse property. 2508 = CITY OF AUSTIN, TEXAS December 22, 1976 Council Action Councilmember Linn moved the Council uphold the recommendations of the Board of Equalization and the Tax Department on the Gage property. seconded by Mayor Friedman, failed to carry by the following vote: Ayes: Councilmember Linn, Mayor Friedman, Councilmember Hofmann Noes: Councilmembers Lebermann, Himmelblau Absent: Councilmember Trevino, Mayor Pro Tem Snell : motion The Mayor announced that the motion had FAILED to carry. The motion, Since the motion failed to carry, the recommendations of the Board of Equalization and the Tax Department were upheld as follows: 1976 Ownership Value by and Description Property Board of Equalization 75% Council Action GAGE WESTERN Land $ 473,730 $ 473,730 INVESTMENTS, INC. Imps. 1.416,100 1,416,100 By Leslie Gage (1st of 4 properties) Total $1,889,830 $1,889,830 Parcel No. 2-3707-0242 Lot B, Resub. of Tract 2, North Village Address of Property: 2103 Anderson Lane Ownership and Description GAGE WESTERN INVESTMENTS, INC. By Leslie Gage (2nd property) Parcel No. 2-3707-0244 Lot A, Resubdivision of Tract 2, North Village Address of Property: Anderson Lane 1976 kasessed Value of Equalization Council Property 75% Action $18,380 $18,380 0 0 Total $18,380 $18,380 Land Imps. No appeal was made to the Board of Equalization on this property. ---- -- 2509 CITY OF AUSTIN, TEXAS December 22, 1976 Ownership and Description GAGE WESTERN INVESTMENTS, INC. By Leslie Gage (3rd property) 1976 Assessed Value Property 75% $1,130 0 Land Imps. Total Parcel No. 2-3707-0231 South 144 feet of Lot 3, Harmony Missionary Baptist Church Subdivision Address of Property: Off Anderson Lane $1,130 Council Action $1,130 0 $1,130 No appeal was made to the Board of Equalization on this property. Ownership and Description GAGE WESTERN INVESTMENTS, INC. By Leslie Gage (4th property) Parcel No. 2-3707-0229 --- 1976 Assessed Value 75% Property Land Imps. $ 9,890 6,820 Total $16,820 North 143 feet of Lot 3, Harmony Missionary Baptist Church Subdivision Address of Property: Anderson Lane No appeal was made to the Board of Equalization on this property. Council Action $ 9,890 6,820 $16,820 The Council theinheard Mr. Klitgaard's testimony on the following tax appeals since the appellant did not appear: 2510 1975 Appraised Value Property 100% 1976 Appraised Value 100% 1976 Rendered Value 75% 1976 Assessed Value 75% CITY OF AUSTIN. TEXAS December 22, 1976 1976 Value by Board of Equalization 75% Land $84,664 Imps. 0 $105,830 0 $63,500 $79,370 $79,370 이 0 0 Total $84,664 $105,830 $63,500 $79,370 $79,370 Ownership and Description: JOHN F. LANIER, JR. & ROBERT J. HUDSPETH By Fleur Christensen (1st of 5 properties) Parcel No. 9-2-6001-0904 42.332 Acres William Bell Survey Address of Property: Vacant 1975 Appraised Value Property 100% 1976 Appraised Value 100% 1976 Rendered Value 75% 1976 1976 Assessed Value 75% Value by Board of Equalization 75% Land $111,958 $127,952 $83,970 $ 95,960 $ 95,960 Imps. 6.667 8.901 5,000 6,670 6,670 Total $118,625 $136,853 $88,970 $102,630 $102,630 Ownership and Description: JOHN F. LANIER, JR., TRUS TEE By Fleur Christensen (2nd property) Parcel No. 9-2-0423-0328 31.988 Acres James Burleson Survey Address of Property: Vacant CITY OF AUSTIN, TEXAS December 22, 1976 2511 1975 Appraised Value Property 100% 1976 Appraised Value 100% 1976 Rendered Value 75% 1976 Assessed Value 75% 1976 Value by Board of Equalization 75% Land $68,950 $68,950 Imps. 1,185 1.546 $51,710 890 $51,710 1,160 $51,710 1,160 Total $70,135 $70,496 $52,600 $52,870 $52,870 Ownership and Description: JOHN F. LANIER, JR., TRUSTEE By Fleur Christensen (3rd Property) Parcel No. 9-2-0423-0314 19.7 Acres James Burleson Survey Address of Property: Canyonwood Drive 1975 Appraised Value Property 100% 1976 Appraised Value 100% Land $59,670 $69,615 Imps. 200 200 Total $59,870 $69,815 $44,900 Ownership and Description: JOHN F. LANIER, JR., TRUSTEE By Fleur Christensen (4th property) Parcel No. 9-2-0423-0318' 19.89 Acres James Burleson Survey Address of Property: Canyonwood Road - 1976 Rendered Value 75% $44,750 150 1976 Assessed Value 75% $52,210 150 $52,360 1976 Value by Board of Equalization 75% $52,210 150 $52,360 2512 December 22, 1976 = CITY OF AUSTIN, TEXAS 1975 Appraised Value Property 100% 1976 Appraised Value 100% 1976 Rendered Value 75% 1976 Assessed Value 75% 1976 Value by Board of Equalization 75% Land $12,990 $15,155 $9,740 $11,370 $11,370 Imps. 0 0 0 0 0 Total $12,990 $15,155 $9,740 $11,370 $11,370 Ownership and Description: JOHN F. LANIER, JR., TRUSTEE By Fleur Christensen (5th property) Parcel No. 9-2-0423-0313 4.33 Acres James Burleson Survey Address of Property: Vacant Mr. Klitgaard stated that the appeals dealt basically with the land values. The appellant's main points of contention were that the property was low; some of it was in the flood plain; there were no utilities and little hope of getting them in the near future and the school bussing problem. Mr. Klitgaard stated that property lying in the flood plain carried a lower valuation. He felt that that particular value influence had been recognized in valuing the subject property. Motion Councilmember Lebermann moved that the Council uphold the recommendations of the Board of Equalization. The motion was seconded by Councilmember Linn. At that point, Mayor Friedman suggested that the appeal be postponed until January 13, 1977, if the appellant called the City Clerk's Office requesting to be heard. Otherwise, Council action would be taken at that time. Councilmember Lebermann withdrew his motion. The Council then heard the following tax appeals: 2513 December 22, 1976 CITY OF AUSTIN, TEXAS 1975 Appraised Value Property 100% 1976 Appraised Value 100% 1976 Rendered Value 75% 1976 Assessed Value 75% 1976 Value by Board of Equalization 75% Land Imps. $ 15,000 163.997 $ 17,500 217.831 Did Not Render $ 13,130 $ 10,310 163,370 Total $178,997 $235,331 163,370 $176,500 $173,680 Ownership and Description: L. C. HOBBS By Malcolm Robinson (1st of 2 properties) Parcel No. 2-4512-0213 2.5 Acres George W. Davis Survey Address of Property: 9603 McNeil Road 1975 Appraised Value Property 100% 1976 Appraised Value 100% 1976 Rendered Value 75% 1976 Assessed Value 75% Land $6,000 $8,000 Did Not $6,000 Imps. 0 0 0 1976 Value by Board of Equalization 75% $5,250 0 Total $8,000 $6,000 $5,250 $6,000 Ownership and Description: L. C. HOBBS By Malcolm Robinson (2nd property) Parcel No. 2-4707-0307 1 Acre James P. Wallace Survey Address of Property: Acreage Mr. Hobbs stated that his property was annexed about three years ago, and there were still no City services available. He thought the valuation would be fair if the services were available. The City would not grade or gravel a road in front of his property. In response to Councilmember Lebermann's question, Mr. Klitgaard stated that there was no authority to delay imposition of additional ad valorem taxes pending the extension of facilities to an area which had been annexed for some time. =CITY OF AUSTIN, TEXAS: 2514 December 22, 1976 In response to Councilmember Linn's question, Mr. Klitgaard stated that the lack of facilities did have an impact on the valuation of the property. Based on that value influence, the Board of Equalization had lowered the valuation on the land. Mr. Hobbs' first property abutted on a legally unacceptable right-of-way, so the City could not provide services for his property. The second property had two streets, one of which was a legal street. Mr. Klitgaard asked if he understood Mr. Hobbs correctly, that he wanted his taxes to remain the same as the 1975 values. The Board of Equalization had lowered the valuation on theland, but had increased the valuation on the buildings. The 1975 100% valuation was $15,000. The 1976 100% valuation set by the Board of Equalization was $13,747. Mr. Hobbs stated that the problem was with the increase on the buildings because he could not raise the rent to compensate for the increase. In response to Councilmember Linn's question, Mr. Klitgaard stated that the 100% valuation set by the Board of Equalization on the building was $217,831. The Board of Equalization and the Tax Department did not feel that inability to improve the street in front of the property did not effect the value of the building, but did effect the value of the land. At that point, Mr. Malcolm Robinson, representing Mr. Hobbs, entered the Council Chamber. He reitereated Mr. Hobbs' position regarding lack of City services after being annexed. There was some discussion as to whether or not the property was in a legal subdivision. Mr. Robinson felt that the land and buildings should be considered together. De-annexation could not be requested because property further to the north had been annexed. In response to Deputy City Manager Reed's question, Mr. Robinson stated that water and wastewater services were not available for the property. Mayor Friedman stated that he was concerned that the land value could be lowered but not the structures. He felt that if the land value could be lowered significantly, then there should be some consideration for improvements. In response to Councilmember Linn's question, Mr. Klitgaard stated that the value of the building could stand alone even without water and wastewater services. Mr. Robinson stated that the second property's value was raised. It was annexed as "A" residential. To rezone the property, it would have been necessary to give up about 33-1/3% to 50% of the land for right-of-way. Mr. Hobbs did not request the rezoning for that reason. Motion Died for Lack of Second Councilmember Linn moved that the Council uphold the recommendations of the Board of Equalization on both tracts. The motion died for lack of a second. Mayor Friedman stated that since there was no motion, the Board of Equalization was upheld. Councilmember Lebermann stated that he felt some adjustment was appropriate on the improvements. Mayor Friedman agreed. He recommended that only a 20% increase in valuation be made. 2515 December 22, 1976 =CITY OF AUSTIN. TEXAS Motion Mayor Friedman moved that the Council increase the 1975 100% appraisal on the improvements on the first property by 20% ($32,799) and uphold the recommendations of the Board of Equalization on the land for both properties. The motion, seconded by Councilmember Lebermann, carried by the following vote: Ayes: Councilmembers Himmelblau, Hofmann, Lebermann, Noes: Absent: Linn, Mayor Friedman None Councilmember Trevino, Mayor Pro Tem Snell 1975 1976 Council Appraised Value Value by Action Board of Equalization 75% Property 100% 75% Value Land $ 15,000 $ 10,310 Imps. 163.997 163.370 Total $178,997 $173,680 $ 10,310 147,600 $157,910 Ownership and Description: L. C. HOBBS By Malcolm Robinson (1st of 2 properties) Parcel No. 2-4512-0213 2.5 acres George W. Davis Survey Address of Property: 9603 McNeil Road 1976 Value by Board of Equalization 75% Ownership and Description Property L. C. HOBBS By Malcolm Robinson (2nd Property) Land] Imps. $5,250 0 Total $5,250 Parcel No. 2-4707-0307 1 Acre James P. Wallace Survey Address of Property: Acreage Council Action $5,250 0 $5,250 2516 _ CITY OF AUSTIN, TEXAS December 22, 1976 Council Action on Holland Page Appeal The following action was taken on the Holland Page appeal which earlier in the meeting had been postponed until January 13, 1977: Councilmember Linn moved that the Council uphold the recommendations of the Board of Equalization as follows: 1976 Ownership Value by and Board of Equalization Council Description Property 75% Action HOLLAND PAGE Land $ 7,930 $ 7,930 (1st of 2 properties) Imps. 25.170 25,170 Total *$33,100 *$33,100 Parcel No. 1-4204-1005 Lot 11, Block F, Northwest Hills *Assessed value less $7,000 Homestead Exemption Mesa Oaks Phase 4A Address of Property: 7602 Rockpoint Drive ----- 1976 Ownership Value by and Board of Equalization Council Description Property 75% Action HOLLAND PAGE Land $52,680 $52,680 (2nd property) Imps. 23,840 23,840 Total $76,520 $76,520 Parcel No. 2-3714-0804 3.52 Acres James P. Wallace Survey Address of Property: 8305 Lamar The motion, seconded by Councilmember Lebermann, carried by the following vote: Ayes: Councilmembers Hofmann, Lebermann, Linn, Mayor Friedman Noes: None Abstain: Councilmember Himmelblau Absent: Councilmember Trevino, Mayor Pro Tem Snell ATTEST: 2517 CITY OF AUSTIN, TEXAS December 22, 1976 AD JOURNMENT The Council adjourned at 5:30 p.m. Mon City Clerk APPROVED Mayor