City of Austin City Council Carole Keeton McClellan Mayor في Council Members Lee Cooke Richard Goodman Betty Himmelblau Ron Mullen John Treviño, Jr. Dan H. Davidson City Manager Grace Monroe City Clerk Ownership and Description C. L. Reeves Burnet Road 6.83 acres Austin City Counci Minutes For SPECIAL CALLED MEETING NOVEMBER 20, 1980 12:30 Ρ.Μ. Council Chambers, 301 West Second Street, Austin, Texas Memorandum To: Mayor McClellan called the meeting to order and noted that Mayor Pro Tem Trevino and Councilman Snell were absent. Mayor McClellan stated that this was a Special Called Meeting for the purpose of hearing tax appeals. The Council then heard the following tax appeals: Property 100% 1979 Appraised Value 1980 Appraised Value 100% Disposition by Board Disposition by City Council $223,136 No Appeal $193,385 -0- Total $136,600 $223,136 $193,385 Land $136,600 Imps. -0- -0- James P. Wallace Survey ID #2-4901-0130 C. L. Reeves Land $ 6,098 $ 10,672 No Appeal U.S. Hwy 183 North Imps. -0- -0- .14 acre James P. Wallace Total $ 6,098 $ 10,672 Survey ID #2-5002-0102 $ 3,964 -0- $ 3,964 Mr. Reeves stated that the two properties really were one piece of land. As of January 1, 1980, the property did not have sewer. A comparable property a few blocks away on Loop 360 had utilities and was valued at $60,860 by the Tax Department. Based on the size of that property, Mr. Reeves said that his property was worth $38,550. He thought that the $233,000 valuation was totally unfair. Council Memo TAX APPEALS (Continued) 2 November 20, 1980 Mr. Klitgaard stated that there was a comparable piece of property closer to Mr. Reeves' property that was valued at 754/square foot. Motion Died For Lack of Second Councilman Cooke moved the Council appraise the property at 50 per square foot for a total valuation of $151,806 on the two pieces of land. The motion died for lack of a second. Motion The Council, on Councilwoman Himmelblau's motion, Councilman Mullen's second, set the valuation on the property at 65¢ per square foot for a total valuation on the two pieces of land of $197,349. (5-0 Vote, Councilman Snell and Mayor Pro Tem Trevino absent) Ownership and Description 1980 1979 Appraised Appraised Property Value 100% Value Disposition by Disposition by 100% Board City Council Professional Land $ 79,953 Contractors, Inc. Imps. 85,000 $127,924 353,238 No Appeal $127,924 353,238 By: C. L. Reeves 1900 E. Oltorf St. Total $164,953 $481,162 $481,162 Lt 2-A Resub of Lts 2-A of the Resub of Lts 1-2 Parker Heights Sec 2-A ID #3-0705-0317 CLR Development, Land $ 6,789 Inc. 3-0705-0810 Imps. -0- $ 27,156 -0- No Appeal $ 10,000 -0- By: C. L. Reeves 1945 E. Oltorf St. Total $ 6,789 $ 27,156 $ 10,000 Lt. 27 Less East 76 Ft Av Parker Heights Sec 4 CLR Development, Land $ 65,820 Inc. Imps. 5,486 $131,639 5,421 No Appeal By: C. L. Reeves Burleson Road Total $ 71,306 $137,060 $131,639 5,421 $137,060 Tract A Resub of Parker Heights Sec 1A ID #3-0804-1301 Council Memo TAX APPEALS (Continued) 3 November 20, 1980 Ownership and Description Property 1979 1980 Appraised Appraised Value Value 100% 100% Disposition by Board Disposition by City Council CLR Development, Land Inc. 3-0804-1501 Imps. $22,198 -0- $54,786 No Appeal $37,500 -0- -0- By: C. L. Reeves 2427 Burleson Ct 1 Total $22,198 $54,786 $37,500 Lt 1 Parker :. Heights Sec 4 CLR Development, Land $ 8,518 $12,777 No Appeal Inc. 3-0804-1518 Imps. -0- -0- $10,000 -0- By: C. L. Reeves 2420 Burleson Ct Total $ 8,518 $12,777 $10,000 Lt 25 Parker Heights Sec 4 Professional Land $ 8,442 $16,847 No Appeal Contractors, Inc. Imps. -0- -0- $ 6,000 -0- S Pleasant Valley Road Total $ 8,442 $16,847 $ 6,000 .672 acre Santiago Del Valle Grant ID #3-1702-0710 Professional Land Contractors, Inc. Imps. $ 4,574 13,375 $10,006 19,579 No Appeal $10,006 19,579 By: C. L. Reeves 4310 Bellvue Ave Total $17,949 $29,585 $29,585 Lt 11 Less SW 15 x 26 Ft B1 6 Alta Vista ID #2-2203-0611 Mr. Reeves first discussed Case No. 3-0705-0317 by stating that he was only appealing the land valuation of $127,924. He presented what he felt were comparables in the area. He thought that the land was worth no more than $63,000. Mr. Klitgaard showed other comparables in the area which were more than the $2.00 per square foot valuation on Mr. Reeves' property. Motion The Council, on Councilman Cooke's motion, Councilwoman Himmelblau's second, upheld the Tax Department's valuation of $2.00 per square foot for the land for a valuation of $127,924. (4-0 Vote, Councilmen Snell and Mayor Pro Tem Trevino absent, Councilman Goodman out of the room at Roll Call) Council Memo 4 November 20, 1980 TAX APPEALS (Continued) Mr. Reeves next discussed Case No. 3-0705-0810 located at 1945 East Oltorf Street. The property was one half of a subdivided lot and as of January 1, 1980 did not have sewer. A building permit could not be obtained because the property had not been subdivided. Mr. Reeves thought that the property was worth $7,500. Mr. Reeves next discussed Case No. 3-0804-1301 located on Burleson Road. The property was the site of an old lumber yard, was subdivided and had been for sale but with no offers. Improvements were temporary and moveable. He thought that the property was worth no more than $42,780. The next case discussed by Mr. Reeves was Case No. 3-0804-1501 located across the street from the preceding case. The same situation existed on that case and Mr. Reeves felt that the property was worth no more than $15,000. The fourth case in that general area discussed by Mr. Reeves was Case No. 3-0804-1518 located at 2420 Burleson Court, with the same situation as the two preceding cases. Mr. Reeves thought that the property was worth no more than $8,500. Mr. Klitgaard presented comparables for each of the preceding cases and felt that the valuations were justified. After further discussion among the Council, Mr. Reeves and Mr. Klitgaard, the following motions were made. Motion The Council, on Councilman Mullen's motion, Councilwoman Himmelblau's second, reduced the valuation on Case No. 3-0705-0810 to $10,000. (4-0 Vote, Councilman Snell and Mayor Pro Tem Trevino absent, Councilman Goodman out of the room at roll call. Motion The Council, on Councilman Cooke's motion, Councilwoman Himmelblau's second, upheld the Tax Department's valuation on Case No. 3-0804-1301 at $137,060. (4-0 Vote, Councilman Snell and Mayor Pro Tem Trevino absent, Councilman Goodman out of the room at roll call) Motion The Council, on Councilman Cooke's motion, Councilwoman Himmelblau's second, set the valuation on Case No. 3-0804-1501 at $37,500. (4-0 Vote, Councilman Snell and Mayor Pro Tem Trevino absent, Councilman Goodman out of the room at roll call) Motion The Council, on Councilman Cooke's motion, Councilman Mullen's second, set the valuation on Case No. 3-0804-1518 at $10,000. (4-0 Vote, Councilman Snell and Mayor Pro Tem Trevino absent, Councilman Goodman out of the room at roll call) Council Memo TAX APPEALS - (Continued) 5 November 20, 1980 Mr. Reeves next discussed Case No. 3-1702-0710 located on Pleasant Valley Road. He had bought the property in 1979 for $3,000 for speculation. A zoning change request for "0" Office was denied by the Planning Commission, which had recommended Interim "A" Residence zoning. The property was a long, narrow tract which was not useable in its present condition. Mr. Reeves felt that the property was worth no more than $3,000. Mr. Klitgaard stated that the property was not worth anywhere near $16,000, but did not particularly agree with Mr. Reeves' $3,000 figure. He thought that the property was worth about $5,000 to $6,000. Motion The Council, on Councilman Mullen's motion, Councilman Cooke's second, set the valuation on Case No. 3-1702-0710 at $6,000. (4-0 Vote, Councilman Snell and Mayor Pro Tem Trevino absent, Councilman Goodman out of the room at roll call) Mr. Reeves next discussed Case No. 2-2203-0611 located at 4310 Bellvue Ave. The property was in an older neighborhood with a house that was over 50 years old which had been converted to a duplex on a substandard lot. Professional Contractors, Inc. had bought the house for $20,000 in 1979. It was his opinion that as of January 1, 1980, the land was worth $7,000 and the house $13,000. Mr. Klitgaard indicated to the Council the Tax Department's appraisal of the property and also said that vendor's lien notes on old houses in the area showed values of over $30,000. Lot sales in the area showed valuations of over $10,000. Motion The Council, on Councilman Mullen's motion, Councilwoman Himmelblau's second, upheld the valuation on Case No. 2-2203-0611 set by the Tax Department at $29,585. (4-0 Vote, Councilman Snell and Mayor Pro Tem Trevino absent, Councilman Goodman out of the room at roll call) TAX APPEAL WITHDRAWN Mayor McClellan announced that the following tax appeal had been withdrawn: Ownership and 1979 Appraised Value Description Property 100% 1980 Appraised Value 100% Disposition by Disposition by Board City Council Robert J. Swanson, et al Land $ 56,354 $ 78,895 No Appeal By: Daniel W. Nelson 1407 W North Loop Blvd ID #2-2604-0358 Imps. 390,289 Total $446,643 541,882 $620,777 Council Memo TAX APPEALS (Continued) 6 November 20, 1980 1979 Ownership and Description C. L. Reeves By: Thomas Hedrick S Rayburn Drive 8205 ID #2-3515-0803 C. L. Reeves By: Thomas Hedrick 1980 Appraised Appraised Value 100% Value Disposition by 100% Board Disposition by City Council Land $ 3,682 Imps. 42,798 $ 5,020 61,003 No Appeal + Total $46,480 $66,023 Land $ 3,682 $ 5,020 No Appeal Imps. 42,798 61,003 S Rayburn Drive 8207 ID #2-3515-0804 Total $46,480 $66,023 C. L. Reeves Land $ 3,682 $ 5,020 No Appeal By: Thomas Hedrick Imps. 42,798 61,003 S Rayburn Drive 8209 ID #2-3515-0805 Total $46,480 $66,023 C. L. Reeves Land By: Thomas Hedrick Imps. $ 3,960 40,496 $ 5,400 54,660 No Appeal S Rayburn Drive 8210 ID #2-3515-0713 Total $44,456 $60,060 C. L. Reeves Land $ 3,862 $ 5,020 No Appeal By: Thomas Hedrick Imps. 41,868 60,318 S Rayburn Drive 8211 ID #2-3515-0806 Total $45,550 $65,338 C. L. Reeves Land $ 4,290 $ 5,850 No Appeal By: Thomas Hedrick Imps. 41,013 55,166 S. Rayburn Drive 8212 ID #2-3515-0712 Total $45,303 $61,016 C. L. Reeves Land $ 3,682 $ 5,020 No Appeal By: Thomas Hedrick Imps. 41,868 60,318 S Rayburn Drive 8213 ID #2-3515-0807 Total $45,550 $65,338 C. L. Reeves Land $ 3,682 $ 5,020 No Appeal By: Thomas Hedrick Imps. 41,868 60,318 S Rayburn Drive 8215 ID #2-3515-0808 Total $45,550 $65,338 Council Memo TAX APPEALS (Continued) Ownership and Description 7 November 20, 1980 1979 1980 Appraised Appraised Value 100% Value 100% Disposition by Board Disposition by City Council C. L. Reeves Land By: Thomas Hedrick Imps. $ 3,682. 41,868 $ 5,020 No Appeal 60,318 S Rayburn Drive 8217 ID #2-3515-0809 Total $45,550 $65,338 C. L. Reeves Land $ 3,682 $ 5,020 No Appeal By: Thomas Hedrick Imps. 41,868 60,318 S Rayburn Drive 8219 ID #2-3515-0810 Total $45,550 $65,338 C. L. Reeves Land $ 3,682 $ 5,020 No Appeal By: Thomas Hedrick Imps. 41,868 60,318 S Rayburn Drive 8221 ID #2-3515-0811 Total $45,550 $65,338 C. L. Reeves Land By: Thomas Hedrick Imps. $ 9,105 153,927 $ 12,416 No Appeal 217,618 S Rayburn Drive 8223 ID #2-3515-0814 Total $163,032 $230,034 Ms. Susan Mathis, representing Mr. Thomas Hedrick, cited several problems with the subject property, including foundation problems. She asked the Council to reduce the valuation on the 12 lots by 10%. Mr. Klitgaard stated that the Tax Department had recommended a 10% allowance on the apartment complex to the Board of Equalization because of extensive damage. He thought that some maintenance may have been deferred on the properties. After further discussion of the condition of the properties, Mr. Klitgaard requested that the appeal be postponed until December 4th so that the Tax Department could look at the properties again. The Council rescheduled the appeal for 3:00 p.m., December 4, 1980. Ownership and Value 1979 Appraised Appraised Value 1980 Disposition Description Property 100% 100% by Board Dinerstein Company By: James B. Archer Land $657,936 $ 877,248 $ 877,248 Imps. 125,000 2819 Foster Lane Total $782,936 4,311,717 $5,188,965 4,311,717 $5,188,965 ID #2-3904-0101 Disposition by City Council $ 877,648 4,311,717 $5,188,965 Council Memo TAX APPEALS 8 November 20, 1980 - (Continued) 1979 1980 Ownership and Appraised Appraised Value Value Disposition by Disposition by Description 100% 100% Board City Council Dinerstein Company Land $130,680 $163,350 $163,350 $163,350 By: James B. Archer Imps. 22,703. 26,470 20,309 17,112 IH 35 N3 acres Total $153,383 $189,820 $183,659 $180,462 J. P. Wallace Survey ID #2-3516-0407 Mr. Archer first discussed the Northcross Apartments. The land was bought in July, 1978 for $659,260 and the improvements were completed on June 30, 1979 at a cost of $3,654,250. He felt that the valuation should be no higher than those figures. The Tax Department had increased the valuation by 33%. Mr. Klitgaard cited comparables in the area, each of which was higher than the $2.00 per square foot valuation on the property. He felt that the 33% increase was justified in that area. He stated that if exposed to the market, the property would readily command the price placed on it by the Tax Department. Mr. Archer agreed that the property had increased in value, but felt that the Tax Department increase was too high. Motion The Council, on Councilman Cooke's motion, Mayor Pro Tem Trevino's second, upheld the valuation set by the Tax Department. (4-0 Vote, Councilman Snell absent, Councilwoman Himmelblau and Councilman Goodman out of the room at roll call) Mr. Archer next discussed the three acres of land on North I H 35 by stating that he was appealing the improvements. The building on the property had been used as a construction shack during the building of some adjacent apartments. He stated that the building was not being used now and asked that the valuation be lowered. Mr. Klitgaard stated that the Tax Department had agreed with a 20% salvage value for the building, but had checked the property and found that the building was being used as a field office. The Board of Equalization had earlier granted a reduction in valuation, but reversed itself after the new information was called to their attention by the Tax Department. 1 Motion The Council, on Councilman Mullen's motion, Councilman Cooke's second, set the valuation on the improvements at $17,112. (4-0 Vote, Councilman Snell absent, Councilwoman Himmelblau and Councilman Goodman absent) Council Memo TAX APPEALS Ownership and 9 November 20, 1980 (Continued) 1979 Appraised Value 1980 Appraised Value Description Property 1.00% 100% Evergreen Land $142,980 $200,172 Management Imps. 450,853 763,970 Company By: James B. Archer 7300 Duval Street Total $593,833 $964,142 $964,142 Disposition by Board $200,172 763,970 Disposition by City Council $200,172 763,970 $964,142 ID #2-3114-0948 Evergreen Management Land $105,034 $126,041 $126,041 $126,041 Company Imps. 379,741 661,052 661,052 661,052 By: James B. Archer Total $484,775 $787,093 $787,093 $787,093 5506 Grover Avenue ID #2-2705-0411 Evergreen Management Land $103,635 $138,180 $138,180 $138,180 Company Imps. 472,733 781,259 781,259 781,259 By: James B. Archer Total $576,368 $919,439 $919,439 $919,439 7200 Duval Street ID #2-3114-0947 Mr. Archer said that the three properties were the Brittany, French Colony and Posada Del Norte Apartments. The first two properties were purchased for $1.5 million in July, 1978. Under the income approach and using a net operating income and a capitalization rate of 11% a value of $997,781 would be obtained. Using an 8% rate would indicate a value of $1,371,949. He asked that the taxes be reduced from a 30-40% increase to a 19% increase. Mr. Klitgaard stated that the present valuation on the properties was well within the range of increases for real estate in that period of time. Income approach was a viable approach to value, but his information was supposed to come from the market place. The apartment industry in Austin had just about recovered from earlier setbacks, which was one of the reasons for substantial increases in valuations. The Tax Department was simply removing a temporary discount. He felt that the values were appropriate for the three properties. Mr. Archer felt that a 40% increase was unrealistic. Motion The Council, on Councilman Mullen's motion, Councilman Cooke's second, upheld the valuations set by the Tax Department. (5-0 Vote, Councilman Snell absent, Councilwoman Himmelblau out of the room at roll call) 1980 Appraised Value 100% Council Memo 10 TAX APPEALS (Continued) Ownership and Description 1979 Appraised Value 100% Nash Phillips & Clyde Copus, Jr. Land $ 63,140 $ 67,997 Imps. 475,292 $538,432 662,616 $730,613 By: James B. Archer Total 5005 Manor Road ID #2-1718-0520 November 20, 1980 Disposition by Board $ 67,997 662,616 $730,613 Disposition by City Council $ 67,997 613,395 $681,892 Mr. Archer next discussed Chateau Trianon which he said had a high vacancy rate, possibly due to its proximity to the Airport. He asked for a reduction in the valuation. Mr. Klitgaard responded that he did not disagree with the appellant. However, the Tax Department had allowed a 15% adjustment on the property, and he felt that that amount was adequate. Motion The Council, on Councilman Mullen's motion, Councilman Cooke's second, set the valuation on the improvements at $613,895. (4-0 Vote, Councilman Snell absent, Mayor McClellan and Councilwoman Himmelblau out of the room at roll call) ITEM NOT APPEALED The following tax valuation was not appealed. Barcelona Apartments Land $ 108,138 $ 138,176 $ 138,176 $ 138,176 By: James B. Archer Imps. 1,022,042 1,409,789 1,241,957 1,241,957 2201 Elmont Drive Total $1,130,180 $1,547,965 $1,380,133 $1,380,133 ID #3-0407-0504 W. C. Weed Land $ 25,339 $ 35,474 $ 35,474 $ 35,474 Properties Imps. 147,571 204,566 204,566 204,566 By: James B. Archer Total $172,910 $240,040 $240,040 $240,040 7304 Twin Crest Dr. ID #2-3114-0814 Mr. Archer stated that the property was the El Mirada Apartments and that again the appeal was based on the income approach. Councilman Mullen stated that her would vote against any appeal based on the income approach. Motion The Council, on Councilman Mullen's motion, Councilman Cooke's second, upheld the Board of Equalization's decision. (4-0 Vote, Councilman Snell absent, Mayor McClellan and Councilwoman Himmelblau out of the room at roll call) Council Memo TAX APPEALS Ownership and Description 11 November 20, 1980 - (Continued) 1979 Appraised Value Property 100% 1980 Appraised Value 100% Disposition Disposition by Board bv City Council Greenwoods Land $ 406,937 $ 488,325 $ 488,325 $ 488,325 Joint Venture Imps. By: James B. Archer Total 1,799,151 3,284,93 3,284,936 3,284,936 $2,206,088 $3,773,261 $3,773,261 3,098,292 $3,586,617 1666 Rutland Drive ID #2-4412-0438 Mr. Archer stated that the Greenwoods Apartments had only a 65% occupancy rate and were still in the process of recovering from mismanagement. There was a minus net operating income. Mr. Klitgaard responded that he believed that the area was recovering and that he did not feel that a reduction was justified. Motion Failed Councilman Cooke moved the Council uphold the decision of the Board of Equalization. The motion FAILED to carry by a 3-1 vote, Councilman Mullen voting No, Councilman Snell absent and Mayor McClellan and Councilwoman Himmelblau out of the room at roll call) : Motion The Council, on Councilman Mullen's motion, Councilman Goodman's second, granted a 5% discount on the improvements for a valuation of $3,586,617. (4-0 Vote, Councilman Snell absent, Mayor McClellan and Councilwoman Himmelblau out of the room at roll call) Delta Investments Land $ 7,653 $13,776 $13,776 $13,776 By: James B. Archer Imps. 27,355 35,847 35,847 35,847 8600 Research Blvd. Total $35,008 $49,623 $49,623 $49,623 ID #2-4110-0325 Delta Investments Land $12,130 $21,833 $21,833 $21,833 By: James B. Archer 8600 Research Blvd. Imps. 27,355 35,847 35,847 35,847 Total $39,485 $57,680 $57,680 $57,680 ID #2-4110-0326 Delta Investments Land $ 39,608 $ 71,294 By: James B. Archer Imps. 107,659 141,688 141,688 8600 Research Blvd. Total $147,267 $212,982 $ 71,294 $ 71,294 $212,982 $212,982 141,688 ID #2-4110-0327 Council Memo TAX APPEALS 12 November 20, 1980 (Continued) Ownership and. 1979 Appraised Value Description Property 100% 1980 Appraised Value 100% Disposition by Board Disposition by City Council Delta Investments Land $ 55,350 $ 92,250 $ 92,250 $ 92,250 By: James B. Archer Imps. 163,347 227,516 8600 Research Blvd. Total $218,697 $319,766 227,516 $319,766 227,516 $319,766 ID #2-4110-0328 Delta Investments Land $ 86,430 $144,050 No Appeal $144,050 By: James B. Archer Imps. 249,623 332,934 332,934 8600 Research Blvd. Total $336,053 $476,984 $476,984 ID #2-4110-0332 Mr. Archer stated that the preceding five accounts all applied to one apartment project. The fifth item inadvertently was not appealed to the Board of Equalization. The apartments had a bad vacancy rate and low income. Motion The Council, on Councilman Cooke's motion, Councilman Mullen's second, upheld the valuations set by the Tax Department on the five accounts of Delta Investments. (4-0 Vote, by unanimous consent, Councilman Snell absent, Mayor McClellan and Councilwoman Himmelblau out of the room at roll call) Normandy Associates, Land $109,160 $174,656 $174,656 $174,656 Ltd. Imps. 409,857 653,287 653,287 653,287 By: James B. Archer Total $519,017 $827,943 $827,943 $827,943 2500 Steck Avenue ID #2-4106-0819 Mr. Archer stated that the appeal was on the Normandy Apartments. He felt that using the income approach that the increase was too high. Mr. Klitgaard stated that he thought that the increase was about normal for apartments. The property was well-located and he did not feel that further adjustments were justified. Motion The Council, on Councilwoman Himmelblau's motion, Councilman Goodman's second, upheld the valuation placed on the property by the Tax Department. (4-0 Vote, by unanimous consent, Councilman Snell absent, Councilmen Cooke and Mullen out of the room at roll call) Council Memo TAX APPEALS Ownership and Description Oak Creek Associates - By: James B. Archer 1507 Houston Street 13 November 20, 1980 (Continued) Property 1979 Appraised Value 100% 1980 Appraised Value Disposition by Disposition by 100% Board City Council Land $ 97,594 $136,631 $136,631 $135,631 Imps. 466,359 648,759 648,759 648,759 Total $563,953 $785,390 $785,759 $785,390 ID #2-2705-0522 Oak Creek Land $ 75,264 $105,369 $105,369 $105,369 Associates Imps. 404,621 562,755 562,755 562,755 By: James B. Archer Total $479,885 $668,124 $668,124 $668,124 5310 Joe Sayers Ave. ID #2-2705-0523 Mr. Archer stated that the two pieces of property consisted of 90 units of apartments. Using the income approach, Mr. Archer felt that the property should be assessed lower. Mr. Klitgaard stated that there were some problems with the apartments, but that the Tax Department had allowed an extra 5% decrease in its assessment. He reminded the Council that this was the first year that valuations on apartments had been pushed up. Motion The Council, on Councilman Goodman's motion, Councilman Cooke's second, upheld the Board of Equalization. (5-0 Vote, by unanimous consent, Councilman Snell absent, Councilman Mullen out of the room at roll call) Spanish Trace Associates Land $112,567 $ 120,071 $ 120,071 Imps. 696,482 $809,049 $ 120,071 1,230,085 $1,350,156 By: James B. Archer Total ID #2-2817-1510 1212 Westheimer 1,230,085 $1,350,156 1,230,085 $1,350,156 Mr. Archer stated that the Spanish Trace Apartments consisted of 100 units and were purchased in November, 1978 for $1,025,000. Based on the capitalization rate, the property was worth $1,001,270, which was close to the purchase price. The tax increase from 1979 to 1980 was 44%. He felt that a 30% to 35% increase was more realistic... Mr. Klitgaard stated that a 15% depreciation adjustment had been allowed on the property. He felt that the 44% increase was justified. Council Memo TAX APPEALS 14 (Continued) Motion November 20, 1980 The Council, on Councilman Goodman's motion, Mayor Pro Tem Trevino's second, upheld the Board of Equalization. (4-0 Vote, by unanimous consent, Councilman Snell absent, Councilwoman Himmelblau and Councilman Mullen out of the room at roll call) Ownership and Description Spanish Villa Associates of City Council Property 1979 Appraised Value 100% 1980 Appraised Disposition Disposition Value 100% of Board. Land $ 177,636 $ 266,454 $ 266,454 Imps. 923,199 $1,100,835 1,249,035 1,249,035 $1,515,489 $1,515,489 By: James B. Archer Total 901 Reinli Street ID #2-2512-0401 $ 266,454 1,249,035 $1,515,489 Mr. Archer felt that the industry had not fully recovered and stated that based on the income approach, he felt that the assessment on the apartments was too high. Mr. Klitgaard responded that he did not see sales coming through for extremely low prices as they had sold for previously, nor did he see the mass of foreclosures that occurred in the mid '70s for the industry. There would always be an exception, but he did not think that the area in question had a problem. He thought that the values were appropriate for the subject property. Motion The Council, on Councilman Cooke's motion, Mayor Pro Tem Trevino's second, upheld the Board of Equalization. (4-0 Vote, Councilman Snell absent, Councilman Goodman and Councilwoman Himmelblau out of the room at roll call) ---- Joseph G. Rountree, IV 4906 Westfield Drive Land $ 5,534 $10,980 $10,980 $ 6,980 ID #1-2800-0110 Imps. 22,499 33,890 33,890 33,890 Total $28,033 $44,870 $44,870 $40,870 Mr. Rountree stated that he was appealing the parcel in behalf of his son. The valuation had increased $16,837 from last year for a 60% increase. The property abutted MoPac Boulevard and a 345 KV transmission line had been constructed behind the house. He stated that increasing traffic on MoPac would diminish the value of the property. He asked that the valuation be decreased. Council Memo TAX APPEALS - (Continued) 15 November 20, 1980 Mr. Klitgaard stated that the Tax Department was aware of the conditions pointed out by Mr. Rountree. However, value influences were measured in the marketplace. A number of sales had occurred in the area, and a unit value of $125 per front foot had been established to measure land values. He felt that all of the value influences affecting the property had been considered, particularly the prices people were willing to pay for property in the area. After further discussion, the following motions were offered: Motion Councilman Cooke moved the Council reduce the valuation by $2,000 for a total valuation of $42,870. Mayor McClellan seconded the motion. Substitute Motion Mayor Pro Tem Trevino offered a substitute motion that the Council reduce the valuation by $4,000 for a total valuation of $40,870. The motion, seconded by Councilman Goodman, carried by a 5-0 vote, Councilman Snell absent, Councilwoman Himmelblau out of the room at roll call. Ownership and Description 1979 Appraised Value 1980 Appraised Value Disposition by Property 100% 100% Board J. G. Rountree Land $ 5,906 $10,547 $10,547 4905 Westfield Drive Imps. 26,551 37,601 37,601 ID #1-2800-0523 Total $32,457 $48,148 $48,148 Disposition by City Council $10,351 35,389 $45,740 In Mr. Rountree stated that the property was bought 1972 for $27,000. 1979 the property was valued at $32,457. The proposed 1980 valuation was a 48.3% increase over the 1979 valuation. He did not recognize as valid comparison of his home with other more expensive homes of that area. Mr. Klitgaard felt that the marketplace adequately justified the value placed on the property. If exposed to the market, the house would command the valuation placed on it by the Tax Department. Motion The Council, on Councilman Goodman's motion, Councilman Cooke's second, reduced the valuation by 5% for a total valuation of $45,740. (5-0 Vote, by unanimous consent, Councilman Snell absent, Councilwoman Himmelblau out of the room at roll call) Council Memo TAX APPEALS (Continued) 16 November 20, 1980 APPEAL WITHDRAWN Mr. Klitgaard stated that the following appeal had been withdrawn: Ownership and 1979 Appraised Value 1980 Appraised Value Description Property 100% 100% Disposition by Board Disposition by City Council Lemuel Scarbrough, Jr. Land $568,399 $913,498 $811,998 et al Imps. -0- -0- -0- By: Wendal L. Phillips Total $568,399 $913,498 $811,998 Anderson Square Lot 2, Anderson Square ID #2-3710-0312 The Council next heard the following appeal: Paul 0. Simms Land $207,520 $221,734 By: Paul Wendler Imps. -0- -0- 2 Street East Total $207,520 $221,734 $221,734 -0- 221,734 $95,340 -0- $95,340 11.91 acres OLS 14 & 30, Division O ID #2-0012-0801 Mr. Paul Wendler stated that he had no quarrel with the valuation on the 3.263 acre tract lying between Ist and 2nd Streets. However, since the rollback zoning on the 8.6 acre tract from industrial to residential, he felt that the property should have a lower assessment. He asked the Council to assess the property at the same level as a four-block area of residences lying just west of the subject tract, less the cost of putting the tract in condition to subdivide for residences. He estimated that it would cost $75-$100 per front foot, plus legal and survey costs, to develop the lots. There would be additional costs for streets. About 305,000 square feet would be available for lots. He asked that that area be assessed at 37.25 to 37.50 per square foot, less development costs of about $89,250, for an assessed valuation of $24,000 to $25,000. Mr. Klitgaard responded that in spite of the rollback he doubted seriously that the property would ever be developed by dividing it into residential lots. It was a difficult problem, and he did not have a good answer for the Council as to the proper valuation. It was difficult to find a comparable in the marketplace. After further discussion, the following motion was offered: Motion Councilman Mullen moved the Council assess the 8.6-acre tract at 37.5¢ per square foot, less the cost to develop. Councilman Goodman seconded the motion. (5-0 Vote, Councilman Snell absent, Councilwoman Himmelblau out of the room at roll call) Council Memo TAX APPEALS - (Continued) 17 November 20, 1980 Reconsideration of Motion The Council, on Councilman Mullen's motion, Councilman Goodman's second, reconsidered the preceding motion. Motion The Council, on Councilman Mullen's motion, Councilman Goodman's second, set the valuation on the 8.6 acre tract at $30,000, for a total valuation on the 11.91 acres of $95,340. (5-0 Vote, by unanimous consent, Councilman Snell absent, Councilwoman Himmelblau out of the room at roll call) Ownership and 1979 Appraised Value 1980 Appraised Value Description Property Disposition of Board Disposition of City Council Woodstone, Ltd. Land $96,268 $ 288,803 $ 288,803 $ 288,803 By: Stephen Dean Imps. -0- 1,822,640 1,822,640 1,748,998 4021 Steck Avenue Total $96,268 $2,111,443 $2,111,443 $2,037,801 ID #1-4401-0201 Mr. Stephen Dean, Property Manager, Paragon Properties, stated that he was representing Woodstone Apartments. He presented comparable properties in Northwest Hills and stated that Woodstone was identical to Woodcliff, except thwest for the number of units and no tennis courts at Woodstone. However, Woodstone Apts. were valued at $2.01 per square higher than Woodcliff. Councilman Goodman asked Mr. Klitgaard for an explanation of the difference in valuation between the two apartment complexes. Mr. Klitgaard replied that this was a hazardous way of valuing properties. The Tax Department system valued the basic structure only on a classified system. He did not think that Mr. Dean's system was a proper way to value property. Motion The Council, on Councilman Goodman's motion, Mayor Pro Trevino's second, reduced the valuation on the improvements by 4% for a total valuation of $2,037,801. (5-0 Vote, by unanimous consent, Councilman Snell absent, Councilwoman Himmelblau out of the room at roll call) ADJOURNMENT The Council adjourned at 5:20 p.m.