CITY OF AUSTIN, TEXAS MINUTES OF THE CITY COUNCIL CITY OF AUSTIN, TEXAS Special Meeting January 28, 1977 4:00 Ρ.Μ. Council Chambers 301 West Second Street 18 The meeting was called to order with Mayor Pro Tem Snell presiding. Roll Call: Present: Mayor Pro Tem Snell, Councilmembers Hofmann, Lebermann, Linn, Trevino Absent: Mayor Friedman, Councilmember Himmelblau Mayor Pro Tem Snell stated that this was a called Special Meeting of the City Council for the purpose of hearing tax appeals. The Council then publicly heard the following tax appeals: Value 75% 1976 Value by Board of Equalization 75% 1975 Appraised Value 1976 Appraised Value Property 100% 100% 1976 Rendered Value 75% 1976 Assessed Land Imps. $ 3,209 21,328 $ 4,011 $ 2,410 $ 3,010 27.962 16,000 20,970 Total $24,537 $31,973 $18,410 $23,980 $23,980 $ 3,010 20,970 Ownership and Description DON EPPERSON Parcel No. 2-2122-0313 Lot 14, Cherrylawn Section 2 Address of Property: 3007 Cedarlawn Circle Mr. Epperson appeared before the Council and stated that he paid $22,000 for his home in northeast Austin. The assessed value of his property had increased 31% for 1976. He cited a study by the Intercultural Development Research Association which indicated that homes in the northeast area of the CITY OF AUSTIN, TEXAS January 28, 1977 130 City were being valued at about 85% of market value versus about 66% for older homes in West Austin and the University of Texas area. Houses were not selling in his area. He felt that the assessment on his property was too high. Mr. Klitgaard stated that every effort was made to follow the most current information in the marketplace to determine what property in the area was selling for. Since 1964, property in the area had increased in value by nearly 100%. Mr. Klitgaard stated that the Tax Department was not ready to accept the study which Mr. Epperson had referred to due to the limited amount of data in the study. He felt that at least 3,000 sales should be considered and not less than 500 in any given area of the City before a reasonable measure of the average level of assessment could be made. He agreed that houses were not moving in the area, but stated that of the ones which had sold, he had not seen any of them sell for less than the value placed on the Epperson property. Council Action Councilmember Linn moved that the Council uphold the recommendation of the Board of Equalization as follows: 1976 Ownership Value by and Board of Equalization Council Description Property 75% Action DON EPPERSON Land $ 3,010 $ 3,010 Imps. 20,970 20,970 Total $23,980 $23,980 Parcel No. 2-2122-0313 Lot 14, Cherrylawn Section 2 Address of Property: 3007 Cedarlawn Circle The motion, seconded by Councilmember Lebermann, carried by the following vote: Ayes: Mayor Pro Tem Snell, Councilmembers Hofmann, Lebermann, Linn Noes: None Abstain: Councilmember Trevino Absent: Mayor Friedman, Councilmember Himmelblau The Council then heard the following tax appeal: 076 131 _ CITY OF AUSTIN, TEXAS 1975 Appraised Value Property 100% 1976 Appraised Value 100% 1976 Rendered Value 75% 1976 Assessed Value 75% January 28, 1977 1976 Value by Board of Equalization 75% Land Imps. $ 4,689 36,105 $ 5,211 $ 3,520 $ 3,910 $ 3,130 49.118 27,080 36.840 36,840 Total $40,794 $54,329 $30,600 $40,750 $39,970 Ownership and Description AUBREY RONALD CARTLIDGE Parcel No. 3-0506-0105 Lot 2, Block B Colorado Hills Estates Section 2 Address of Property: 1802 Woodland Avenue Mr. Cartlidge showed a series of slides and photographs to the Council to describe his property and the surrounding area. An earth slip to the rear of his property had caused damage to his fence and adjoining property. A consulting engineering firm's investigation of the problem stated that further damage would result. Mr. Cartlidge stated that his 1976 tax valuation had increased about $15,000 or 30%. After appealing to the Board of Equalization, the Board had decreased the valuation on the land by $780 but did not decrease the value on the improvements, even though it had been shown to the Beard that there wassdamage to the fence. Since the Board of Equalization meeting, Mr. Cartlidge stated that he had spent almost $1,000 to determine the damage to the property. It would cost almost $1,000 to repair the fence and bring in top soil, which would be only a cosmetic job. Based on an engineering report prepared by Snowden and Meyer, it would cost $14,000 to repair the damage properly. Mr. Cartlidge also had hired the American Real Estate Corporation to appraise his property. That appraisal was within $200 of the Tax Department appraisal before the earth slip. The appraisers indicated that the earth slip had caused $6,000 worth of damage. Mr. Cartlidge felt that the damage was somewhere between the $6,000 real estate appraisal and the $14,000 cost to reconstruct the wall with a proper retaining wall. DHe asked that the Council consider a damage decrease of $7,000 to his property ($3,130 land, and $32,420 improvements). Mr. Klitgaard stated the Board of Equalization had asked the Tax Department to reinspect the property after Mr. Cartlidge had appealed. The Tax Department had recommended an adjustment to the land value of $1,050, with no adjustments on the improvements since the damage to the fence had been considered in the land value adjustment. Regarding the $14,000 cost to build a retaining wall, Mr. Klitgaard was under the impression that most of the wall was not on Mr. Cartlidge's property. He had not seen the new information which Mr. Cartlidge had submitted. CITY OF AUSTIN, TEXAS January 28, 1977 132 Motion Councilmember Lebermann moved that the Council defer action on the Cartlidge appeal until the Council and Mr. Klitgaard could review the new information submitted by Mr. Cartlidge. The motion, seconded by Councilmember Linn, carried by the following vote: Ayes: Mayor Pro Tem Snell, Councilmembers Hofmann, Lebermann, Linn, Trevino Noes: None Absent: Councilmember Himmelblau, Mayor Friedman The Council then heard the following tax appeal: 1975 Appraised Value 1976 Appraised Value 1976 1976 1976 Rendered Assessed Value by Value Value Property 100% 100% 75% 75% Board of Equalization 75% Land $98,125 $117,750 $73,590 $88,310 $88,310 Imps. 0 0 0 0 0 Total $98,125 $117,750 $73,590 $88,310 $88,310 Ownership and Description: WILLIAM R. BRIGHT Parcel No. 4-2300-0101 39.25 Acres Santiago Del Valle Grant Address of Property: Nuchols Crossing Road Mr. Bright stated that his acreage fell under the jurisdiction of the moratorium placed on certain areas by the City. Since he couldnnot sell or subdivide his land, he ddd not feel that the tax increase was justified. Mr. Klitgaard stated that sales in the area in previous years exceeded the $3,000 per acre valuation placed on the subject property. The property was virtually surrounded by subdivisions. A percentage increase was not considered in valuing the property. Mr. Bright stated that there had not been any sales in the area recently because of the moratorium. In response to Councilmember Lebermann's question, Mr. Klitgaard stated that sales as old as five years were used to value property, but that no more than three years was preferred. Council Action Councilmember Linn moved that the Council uphold the recommendation of the Board of Equalization as follows: CITY OF AUSTIN, TEXAS January 28, 1977 133 1976 Ownership Value by and Description Property Board of Equalization 75% Council Action WILLIAM R. BRIGHT Land $88,310 $88,310 Imps. 0 0 Total $88,310 $88,310 Parcel No. 4-2300-0101 39.25 Acres Santiago Del Valle Grant Address of Property: Nuchols Crossing Road The motion, seconded by Councilmember Hofmann, carried by the following vote: Ayes: Councilmembers Hofmann, Lebermann, Linn, Trevino, Mayor Pro Tem Snell Noes: None Absent: Councilmember Himmelblau, Mayor Friedman The Council then heard the following tax appeal: 1975 1976 1976 1976 1976 Appraised Value Appraised Value Rendered Value Assessed Value] Value by Property 100% 100% 75% 75% Board of Equalization 75% Land Imps. $ 3,513 12,394 $ 3,903 $ 2,630 $ 2,930 $ 2,930 16,577 4,300 5,430 5,430 Total $15,907 $20,480 $ 6,930 $ 8,360 *$ 8,360 Ownership and Description: *Assessed value less $7,000 homestead exemption. J. D. COPELAND Parcel No. 1-1802-0912 N 5 ft. of Lot 11, all of Lot 12 plus E 33 x 63 ft. av. of Lot 5 and 6, Block 4, Brykerwoods F Address of Property: 3006 Beverly Road CITY OF AUSTIN, TEXAS January 28, 1977 134 Mr. Copeland stated that his home was built in 1941 and was in need of many repairs. He stated that his valuation had increased 58% in 1976 over 1975. He asked the Council for some relief on his taxes. Mr. Klitgaard stated that there was not a 58% increase on Mr. Copeland's property. The actual percentage increase was 28.7%, which was well within the range of increase throughout the community. He cited sales in the area which were comparable to the subject property. Council Action Councilmember Hofmann moved that the Council uphold the recommendation of the Board of Equalization as follows: 1976 Ownership Value by and Board of Equalization Council Description Property 75% Action J. D. COPELAND Land Imps $2,930 $2,930 5.430 5,430 Total 8$8,360 *$8,360 Parcel No. 1-1802-0912 N 5 ft. of Lot ll, all of Lot 12 plus E 33 x 63 ft. av. of Lot 5 and 6, Block 4, Brykerwoods F Address of property: 3006 Beverly Road *Assessed value less $7,000 homestead exemption The motion, seconded by Councilmember Trevino, carried by the following vote: Ayes: Councilmembers Hofmann, Lebermann, Linn, Trevino, Mayor Pro Tem Snell Noes: None Absent: Councilmember Himmelblau, Mayor Friedman The Council then heard the following tax appeals: 135 January 28, 1977 CITY OF AUSTIN, TEXAS 1975 Appraised Value 1976 Property 100% Appraised Value 100% 1976 Rendered Value 1976 Assessed Value 75% 75% Land $294,298 $379,947 Did Not $284,960 Imps. 428.736 491,410 Render Total $723,034 $871,357 368,560 1976 Value by Board of Equalization 75% $284,960 368,560 $653,520 $653,520 Ownership and Description: HOLIDAY INN OF AMERICA- Austin North By Bill Gilbreth (1st of 2 properties) Parcel No. 2-2915-0135 7.86 Acres James P. Wallace Survey Address of Property: 6901 Interregional --------- 1975 Appraised Value 1976 Appraised Value 1976 Rendered Value 1976 Assessed Value Property 100% 100% 75% 75% Land Imps. $ 81,918 1.429.875 $ 81,918 Did Not 1.444.459 Render Total 1976 Value by Board of Equalization 75% $ 61,440 $ 61,440 1,083,340 1,083,340 $1,144,780 $1,144,780 $1,511,793 $1,526,377 Ownership and Description: MAURICE D. HALL By Bill Gilbreth (2nd Property) Parcel No. 2-0104-0420 54612 Square Feet of Block F, Outlots 54-55, and 71, Div. O, Lambies Resubdivision of Voss Address of Property: 20 IH 35 North Mr. Bill Gilbreth, Property Tax Manager, Holiday Inn, first discussed Holiday Inn North. He stated that the value of the land as appraised by the Tax Department was reasonable and fairly well in line with sales in the area. Replacement cost new also was in line with the Assessor's values. However, he CITY OF AUSTIN, TEXAS January 28, 1977 136 did not agree with the 60-year life placed on the property by the Tax Department. The decision had been made to close Holiday Inn North as of today due to various physical problems. He stated that the 60-year life was unrealistic and proposed that 75% to 80% depreciation be placed on the building. Mr. Gilbreth next discussed Holiday Inn South. He again agreed with the land valuation which was leased and replacement cost new. He did not agree with the 80-year life placed on the building. The building was 10 years old and was very functional and useful; however, the condition of the building when it was 20 years old was unknown. For a functional life on the hotel, he proposed using replacement cost new as proposed by the Assessor with a realistic depreciation to include physical, functional and economic obsolescence. Mr. Gilbreth stated that it was his understanding when he appeared before the Board of Equalization that the Assessor was to look at the 60-year and 80year functional lives of the two properties and have it reconsidered by the Board of Equalization. Due to the promptness with which he received a letter from the Board of Equalization sustaining the Tax Department's valuations, Mr. Gilbreth felt that Mr. Klitgaard had not had time to look at the problem or to go back to the Board of Equalization. Mr. Klitgaard stated Mr. Gilbreth had been left with the wrong impression before the Board of Equalization. He had never been prohibited from re-examining any property and could present to the Board whatever testimony he chose. Mr. Klitgaard had some questions regarding existing depreciation schedules. However, it did not mean that values were wrong, but there were problems with using depreciation tables developed for the economy of the 1960's and applying them to today's economy. A comprehensive study would be undertaken to determine the new schedules but they would not be ready until the 1978 tax roll was prepared. Mr. Klitgaard stated that regarding Holiday Inn North, the installation still had value and could suit the needs of the motel industry as a whole. Unit cost of that motel was $ll per square foot versus $18 per square foot for Holiday Inn South. He felt that Holiday Inn North had more than salvage value. Regarding the 80-year life expectancy of Holiday Inn South, Mr. Klitgaard stated that he did not know if the life expectancy was too long for that type of property. However with a life expectancy of less than 80 years, most of downtown Austin would have been eroded from the tax rolls. Council Action Councilmember Linn moved that the Council uphold the recommendation of the Board of Equalization as follows: Ownership and CITY OF AUSTIN, TEXAS January 28, 1977/37 1976 Value by Board of Equalization 75% $284,960 368.560 Description Property HOLIDAY INN OF Land AMERICA - Austin North By Bill Gilbreth (1st of 2 properties) Imps. Total $653,520 Parcel No. 2-2915-0135 7.86 Acres James P. Wallace Survey Address of Property: 6901 Interregional Council Action $284,960 368,560 $653,520 The motion, seconded by Councilmember Hofmann, carried by the following vote: Ayes: Councilmembers Lebermann, Linn, Trevino, Mayor Pro Noes: Tem Snell, Councilmember Hofmann None Absent: Mayor Friedman, Councilmember Himmelblau Councilmember Linn moved that the Council uphold the recommendation of the Board of Equalization as follows: 1966 Ownership Value by and Beard of Equalization Council Description Property 75% Action MAURICE D. HALL Land $ 61,440 $ 61,440 By Bill Gilbreth Imps. 1,083,340 1,083,340 (2nd Property) Total $1,144,780 $1,144,780 Parcel No. 2-0104-0420 54612 Square Feet of Block F, Outlots 54-55, and 71, Div. O, Lambies Resubdivision of Voss Address of Property: 20 IH 35 North The motion, seconded by Councilmember Trevino, carried by the following vote: Ayes: Councilmembers Linn, Trevino, Mayor Pro Tem Snell, Noes: Councilmembers Hofmann, Lebermann None Absent: Mayor Friedman, Councilmember Himmelblau CITY OF AUSTIN, TEXAS January 28, 1977 138 The following tax appeals were heard by the Council on January 13, 1977, and were on today's agenda for Council action: 1976 Value by Board of Equalization 75% 1975 Appraised Value Property 100% 1976 Appraised Value 100% 1976 Rendered Value 75% 1976 Assessed Value 75% Land $125,983 $161,978 Imps. 0 0 Did Not Render $121,480 None 0 Total $125,983 $161,978 $121,480 Ownership and Description: AUSTIN LAND INVESTMENT, LTD. By William Montandon (1st of 5 properties) Parcel No. 8-2-1831-0601 71.99 Acres James Burleson Survey 19' Address of Property: Vacant --------- Land $289,765 $372,555 Did Not] $279,420 None Imps. 0 0 Rënder 0 Total $289,765 $372,555 $279,420 Ownership and Description: AUSTIN LAND INVESTMENT, LTD. By William Montandon (2nd Property) Parcel No. 8-2-1831-0602 165.58 Acres James Burleson Survey 19 Address of Property: Vacant CITY OF AUSTIN, TEXAS January 28, 1977 139 1976 Value by Board of Equalization 75% 1975 Appraised Value Property 100% 1976 Appraised Value 100% 1976 Rendered Value 75% 1976 Assessed Value 75% Land $80,507 $80,507 Did Not $57,380 None Imps. 0 0 Render 0 Total $80,507 $80,570 *$57,380 Ownership and Description: WILLIAM MONTANDON, ET AL By William Montandon (3rd Property) Parcel No. 2-1831-0201 40 Acres James Burleson Survey 19 Address of Property: Vacant *Assessed value less $3,000 Veteran's Exemption. ---- Land $40,800 $48,960 Did Not Imps. 8,166 11.135 Render $36,720 8,350 None Total $48,966 $60,095 $45,070 Ownership and Description: WILLIAM MONTANDON, ET AL By William Montandon (4th Property) Parcel No. 2-1831-0202 16.32 Acres James Burleson Survey 19 Address of Property: Route 1, Box 128 Land $36,225 $43,470 Imps. 0 0 Did Not Render Total $36,225 $43,470 (continued) - $32,600 None 0 $32,600 (contined) Ownership and Description: WILLIAM MONTANDON, ET AL By William Montandon (5th Property) Parcel No. 2-1831-0203 14.49 Acres James Burleson Survey 19 CITY OF AUSTIN, TEXAS January 28, 1977 140 Address of Property: Vacant In response to Councilmember-Hofmann's question, Mr. Michael Mulcahey, Assistant City Attorney, Tax Department, stated that it was unnecessary for an individual to appeal first to the Board of Equalization before appealing to the City Council. Council Action Councilmember Linn moved that the Council uphold the recommendations of the Tax Department on the following properties: 1976 Ownership Assessed and Value Description Property 75% AUSTIN LAND Land $121,480 INVESTMENT LTDS Imps. 0 By William Montandon (1st of 5 properties) Total $121,480 Council Action $107,990 0 $107,990 Parcel No. 8-2-1831-0601 71.99 Acres No appeal was made to the Board of Equalization on this property. James Burleson Survey 19 Address of Property: Vacant AUSTIN LAND INVESTMENT LTD. By William Montandon (2nd Property) Parcel No. 8-2-1831-0602 165.58 Acres James Burleson Survey 19 Address of Property: Vacant Land Imps. Total ----- -- $279,420 0 $279,400 $248,370 0 $248,370 No appeal was made to the Board of Equalization on this property. --------- =CITY OF AUSTIN. TEXAS January 28, 1977 141 Ownership and Description WILLIAM MONTANDON, ET AL By William Montandon (3rd Property) Parcel No. 2-1831-0201 40 Acres James Burleson Survey 19 Address of Property: Vacant 1976 Assessed Value Property 75% Land $57,380 Imps. 0 Total *$57,380 Council Action $57,380 0 *$57,380 *Assessed Value less $3,000 Veteran's Exemption No appeal was made to the Board of Equalization on this property. WILLIAM MONTANDON, ET AL Land Imps. By William Montandon (4th Property) Total Parcel No. 2-1831-0202 16.32 Acres James Burleson Survey 19 Address of Property: Route 1, Box 128 ------- $36,720 8.350 $45,070 $36,720 8,350 $45,070 No appeal was made to the Board of Equalization on this property. -- WILLIAM MONTANDON, Land $32,600 ET AL Imps. 0 By William Montandon (5th Property) Total $32,600 Parcel No. 2-1831-0203 $32,600 0 $32,600 14.49 Acres James Burleson Survey 19 Address of Property: Vacant No appeal was made to the Beardoof Equalization on this property. The motion, seconded by Councilmember Hofmann, carried by the following vote: Ayes: Mayor Pro Tem Snell, Councilmembers Hofmann, Lebermann, Noes: Linn None Abstain: Councilmember Trevino Absent: Mayor Friedman, Councilmember Himmelblau January 28, 1977 142 CITY OF AUSTIN, TEXAS Mr. Klitgaard stated that the Council had heard the following tax appeals, but no action had been taken. The appellant did not appear to be heard as scheduled on December 22, 1976. 1975 Appraised Value Property 100% 1976 Appraised Value 100% 1976 Rendered Value 75% 1976 Assessed Value 1976 Value by 75% Board of Equalization 75% Land $84,664 $105,830 $63,500 $79,370 $79,370 Imps 0 0 0 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 Land $111,958 $127,952 Imps. 6,667 8.901 $83,970 5,000 $ 95,960 $ 95,960 6,670 6,670 Total $118,625 $136,853 $88,970 $102,630 $102,630 JOHN F. LANIER, JR. TRUSTEE 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 January 28, 1977 143 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 ---- Land $59,670 $69,615 Imps. 200 200 $44,750 150 $52,210 150 $52,210 150 Total $59,870 $69,815 $44,900 $52,360 $52,360 By Fleur Christensen Ownership and Description: JOHN F. LANIER, JR., TRUSTEE (4th Property) Parcel No. 9-2-0423-0318 19.89 Acres James Burleson Survey Address of Property: Canyonwood Road -- 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 (continued) (continued) 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 CITY OF AUSTIN, TEXAS January 28, 1977 144 Council Action Councilmember Lebermann 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 JOHN F. LANIER, JR. & Land $79,370 $79,370 ROBERT J. HUDSPETH Imps. 0 0 By Fleur Christensen (1st of 5 properties) Total $79,370 $79,370 Parcel No. 9-2-6001-0904 42.332 Acres William Bell Survey Address of Property: Vacant Ownership and Description JOHN F. LANIER, JR., TRUSTEE By Fleur Christensen (2nd Property) Parcel No. 9-2-0423-0328 31.988 Acres James Burleson Survey Address of Property: Vacant ------- 1976 Value by Board of Equalization 75% Property Land $ 95,960 Imps. 6,670 Total $102,630 Council Action $ 95,960 6,670 $102,630 =CITY OF AUSTIN, TEXAS January 28, 1977 145 1976 Ownership Value by and Description Property Board of Equalization 75% Council Action JOHN F. LANIER, JR. Land $51,710 TRUSTEE Imps. 1,160 $51,710 1,160 By Fleur Christensen (3rd Property) Total $52,870 $52,870 Parcel No. 9-2-0423-0314 19.7 Acres James Burleson Survey Address of Property: Canyonwood Drive JOHN F. LANIER, JR., Land $52,210 TRUSTEE Imps. 150 $52,210 150 By Fleur Christensen (4th Property) Tobal $52,360 $42,360 Parcel No. 9-2-0423-0318 19.89 Acres James Burleson Survey Address of Property: Canyonwood Road JOHN F. LANIER, JR., Land $11,370 $11,370 TRUSTEE Imps. 이 By Fleur Christensen (5th Property) Total $11,370 $11,370 Parcel No. 9-2-0423-0313 4.33 Acres James Burleson Survey Address of Property: Vacant The motion, seconded by Councilmember Linn, carried by the following vote: Ayes: Mayor Pro Tem Snell, Councilmembers Hofmann, Lebermann, Linn, Trevino Noes: None Absent: Mayor Friedman, Councilmember Himmelblau ATTEST: CITY OF AUSTIN, TEXAS January 28, 1977 146 ADJOURNMENT The Council adjourned at 5:30p.m. Brace Monise City Clerk Mayor/Pro Tem