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HomeMy WebLinkAboutMinutes 11/08/99 PUBLIC HEARING NOVEMBER 8, 1999 Present: Johnnette Phillips Tom Stone James Johnson, Jr. James R. Fritze Jack Ingstad Sara J. Fisher Chairman Commissioner Commissioner County Attorney County Administrator Clerk to the Board This being a scheduled Public Hearing the following items were presented to the Board of County Commissioners for their consideration: Consent Agenda Chairman Phillips stated the first item before the Board is the consent agenda as follows: A) Approval of bill paying for week of November 8, 1999, subject to review by County Administrator B) Approval of the minutes of the Board of County Commissioners meeting of October 25, 1999 C) Bleacher lease between Gypsum and Eagle County D) Resolution 99-185 and Power of Attorney conferring authority on the Attorney's Office to draw on Letter of Credit No. 111 for B & H General Contractors in the amount of $2,000.00, to expire November 10, 1999, issued by Alpine Bank Basalt for Road Cut Permit No. 2607 E) Resolution 99-186 and Power of Attorney conferring authority on the Attorney's Office to draw on Letter of Credit No. WSL890816 for Brett Ranch Holding LLC (Cordillera Valley Club) in the amount of $42,240.14, to expire November 13, 1999, issued by Key Bank Denver F) Resolution 99-187 and Power of Attorney conferring authority on the Attorney's Office to draw on Letter of Credit No. WSL890817 for Brett Ranch Holding LLC (Cordillera Valley Club) in the amount of$16,945.55, to expire November 13, 1999, issued by Key Bank Denver G) Approve and sign the attached agreement with Holy Cross Energy to grant a utility easement for the Eagle County Joint Maintenance Center H) Building Lease between Eagle County and the Hertz Corporation I) Consent to Eagle Riverview Affordable Housing Corporation, First Supplemental Trust Indenture amending sections 1.01 and 4.08(b) ofthe Trust Indenture. Commissioner Johnson questioned item C, but stated he didn't believe anyone from Facilities Management was present to discuss that. Chairman Phillips asked about items D, E and F. Bob Loeffler, Deputy County Attorney, stated they are all in effect and need to remain on the agenda. Chairman Phillips stated she had corrections to the minutes. On page two, the last paragraph, third line down, it says 1 then has a comma and nothing else. Page five should read "Commissioner Stone stated this is not contract zoning," rather than asked ifthis was contract zoning. On page 6, third paragraph from the bottom, it says Ric Pylman's and his name should be spelled Rick. Commissioner Johnson spoke to item C, the bleachers. He asked about what the estimated life of on the bleachers. Rich Cunningham, Director of Facilities Management, stated he was not aware this was on the 1 11-08-1999 agenda today. He stated the estimated life may be 50 years. Chairman Phillips asked about the old bleachers. Mr. Cunningham explained they took some to Town of Basalt and gave three sets to Town of Gypsum. The lease price is $1.00 per year for a total of $5.00. Commissioner Johnson suggested they may want to consider selling them rather than having a five year lease. Chairman Phillips questioned if the County wants to continue to lease out the bleachers or maybe sell them so the County does not get them back. Commissioner Johnson moved to approve the consent agenda as presented including the changes to the minutes. Commissioner Stone seconded the motion. The vote was declared unanimous. Plat & Resolution Signing Jean Garren, Planner, asked Bob Loeffler if they want to handle the PUD agreement first. Mr. Loeffler asked if they had already agreed on this. Ms. Garren stated they did and she has a signed PUD agreement from the applicant. Jean Garren presented the following plats and resolutions for the Board's consideration: Resolution 99-188. ZC-00033. Millers Creek on the Ea~le River. Filing 2. PUD. She stated this Resolution approves a request to re-zone approximately 2 acres from Resource [R] to Planned Unit Development [PUD]. The Board considered this application on October 25, 1999. Commissioner Stone moved to approve Resolution 99-188, file number ZC-00033, Millers Creek on the Eagle River, Filing 2, PUD. Commissioner Johnson seconded the motion. The vote was declared unanimous. Resolution 99-189. PDA-00022. Millers Creek on the Ea~le River. Filing 2. PUD. She stated this was a Resolution approving the incorporation of the above stated 2 acres into the Miller's Creek on the Eagle River Planned Unit Development. Included in this application were several other "housekeeping" items related to the PUD Guide. The Board considered this application on October 25, 1999. Commissioner Johnson moved to approve Resolution 99-189, PDA-00022, Millers Creek on the Eagle River, Filing 2, PUD. Commissioner Stone seconded the motion. The vote was declared unanimous. Resolution 99-190. PDSP-000I0. Millers Creek on the Eagle River. Filing 2. PUD. She stated this was a Resolution approving a consolidated Sketch and Preliminary Plan application for the same above stated 2 acres. The Board considered this application on October 25, 1999. Commissioner Stone moved to approve Resolution 99-190, file number PDSP-00010, Millers Creek on the Eagle River, Filing 2, PUD. Commissioner Johnson seconded the motion. The vote was declared unanimous. Ms. Garren stated she would leave the executed copy of the PUD Agreement for Millers Creek Filing 2 which has been signed by the applicant Commissioner Johnson moved to approve the PUD Agreement for Millers Creek Filing 2 authorizing the Chairman to sign. Commissioner Stone seconded the motion. The vote was declared unanimous. 2 11-08-1999 Final Settlement, Harry's Heavy Haulers Bob Loeffler presented final settlement for Harry's Heavy Haulers. This matter was published and no claims have been received. Staff recommended approval. Commissioner Johnson moved to approve final settlement for Harry's Heavy Haulers, as recommended by staff. Commissioner Stone seconded the motion. The vote was declared unanimous. Final Settlement, Evans Mendell Allison Bob Loeffler presented final settlement for Evans Mendell Allison, for the Fairgrounds grandstands. He stated this matter was published and no claims have been received. Staff recommended approval. Michele Evans, from Evans Mendell Allison, asked about payment of the two requisitions that they have submitted. Jack Ingstad, County Administrator, responded they should be paid by next Tuesday. Commissioner Stone moved to approve final settlement for Evans Mendell Allison, as recommended by staff. Commissioner Johnson seconded the motion. The vote was declared unanimous. Retired & Senior Volunteer Program, Acceptance of Grant Kathleen Forinash, Director of Health & Human Services, presented the Retired and Senior V olunteer Program and acceptance of the grant award. She explained the program to the Board stating that Terry Lowell, Finance Director, has reviewed the proposal and taken a look at the figures. She submitted that to the Board. She asked them to look at the two columns with stars. She explained the current fiscal year amounts and the amount for the year 2000. Chairman Phillips questioned if the cost will be the same to the County. Ms. Forinash explained there are indirect expenses whenever there is a grant or a program that comes from administration, staff time it takes for the administration of those funds. That is not separately identified for each grant or contract. Chairman Phillips asked if that is in-kind or cash. Ms. Forinash explained the grant to the Board. She stated the grant is cash to the County to help pay for administration expenses and the time spent is donated as in-kind. Chairman Phillips asked if it is in the budget at this time. Ms. Forinash stated it is proposed in the budget. She stated they have not spent any money for this grant. Chairman Phillips asked if there will be duplication in this program with the other programs currently in place. Ms. Forinash stated this program takes it out into the community, benefitting the schools, library and other not for profit entities. Chairman Phillips asked how this will help at the schools. Mr. Forinash explained the reading programs in the Elementary Schools and the America Learn and Serve Project at the Middle Schools. These programs help raise the level of reading within our schools. She stated the School Districts have requested volunteers. Chairman Phillips asked about Summit County. Ms. Forinash explained Summit County will mount their program and will use their staff to help supervise the program. They will then provide Eagle County with the needed information for the reports. 3 11-08-1999 Chairman Phillips asked what happens if the grant goes away. Ms. Forinash stated ifthe grant goes away, the program provides for two individuals. If the funds cease the program and the individuals would go away. Chairman Phillips asked if this position is now being recruited for. Ms. Forinash stated it has not yet been point factored. Commissioner Stone asked if this is for one year. Ms. Forinash stated it is usually in five year cycles. Chairman Phillips suggested they would have to reapply on an annual basis. Commissioner Johnson moved to accept the grant award for the retired and senior grant program. Commissioner Stone seconded the motion for discussion. In discussion, Commissioner Stone stated he will not be voting for this grant as it is a waste of tax payer dollars whether locally or federally. He does not believe it is a wise use of the money. Chairman Phillips stated since it is only in-kind dollars and the application has been made and accepted, she feels she must vote to accept the grant. Commissioner Johnson stated he will vote in favor of this because it is a worthy effort and gives the seniors an opportunity to participate. Commissioner Stone stated he did not vote for this originally to help out the seniors self esteem. In his opinion the seniors have numerous opportunities to provide other services in the community. He does not want it to be attached to a building. Chairman Phillips stated she would like to know how many seniors take part in this. Ms. Forinash stated she projected there would be approximately 120 volunteers in Summit County and 230 volunteers in Eagle County. She will follow up with reports accordingly. Chairman Phillips called for the question on the motion. Commissioners Phillips and Johnson voting aye and Commissioner Stone voting no. Resolution 99-191, Recognition of Robert Ford Jack Ingstad, County Administrator, stated the next item on the agenda was Resolution 99-191, thanking Robert E. Ford for his public service to Vail and Eagle County. Commissioner Stone stated he thinks that Mayor Ford did a lot of good for the community and thanked him for his efforts. Commissioner Stone moved to approve Resolution 99-191, recognition of Robert E. Ford. Commissioner Johnson echoed the sentiments and thanked Mr. Ford for the work he did for Vail and Eagle County. Commissioner Johnson seconded the motion. The vote was declared unanimous. Commissioner Stone moved to adjourn as the Board of County Commissioners and reconvene as the Local Liquor Licensing Authority. Commissioner Johnson seconded the motion. The vote was declared unanimous. Grouse Mountain Grill Earlene Roach, Liquor Inspector, presented a renewal of a hotel and restaurant license for Ski Resort Concepts, LLC, dba/Grouse Mountain Grill. She stated this application is in order. The Sheriffs Office reports no complaints or disturbances during the past year. Staff recommended approval. Dave Dowell, owner, was present for the hearing. Commissioner Johnson asked how long they have had their license. Mr. Dowell stated they are just starting their seventh year. Commissioner Johnson commended Mr. Dowell on not having any issues in those seven years. 4 11-08-1999 He stated those that end up not following the procedures are those that get in trouble. Mr. Dowell stated he has been in the business for 25 years. Commissioner Stone moved to approve the renewal of a hotel and restaurant license for Ski Resort Concepts, LLC, dba/Grouse Mountain Grill. Commissioner Johnson seconded the motion. The vote was declared unanimous. Pacific Ranch Earlene Roach presented a renewal of a hotel and restaurant license for Flo's Restaurant Company, LLC, dba/Pacific Ranch. She stated this application is in order. The Sheriffs Office reports no complaints or disturbances during the past year. Staff recommended approval. Brian Nolan, owner, was present for the hearing. Commissioner Johnson moved to approve the renewal of a hotel and restaurant license for Flo's Restaurant Company, LLC, dba/Pacific Ranch. Commissioner Stone seconded the motion. The vote was declared unanimous. Sushi Ya Go Go Earlene Roach presented a transfer of ownership of a hotel & restaurant license for Kotobuki, Inc., dba/Sushi Ya Go Go. She stated this application is in order and all fees have been paid. The Sheriffs Office reports Mr. Tsuzuki to be of good moral character. This will be in the location which was known as Dolce Vita, El Jebel. Staff recommended approval. Hidehisa Tsuzuki, owner, was present for the hearing. Commissioner Johnson asked Mr. Tsuzuki if this is his first liquor license in Colorado. Mr. Tsuzuki stated it is. Commissioner Johnson asked ifhe has been involved in food and beverage previously. Mr. Tsuzuki responded he is familiar with food service but not necessarily with beverage. He shared where he has worked previously. Commissioner Johnson asked about TIPS training. Mr. Tsuzuki asked what that is. Ms. Roach explained. Mr. Tsuzuki stated he will send his employees for training. Commissioner Johnson asked about the liquor code book. Mr. Tsuzuki stated he has one and will read it diligently. Commissioner Johnson moved to approve a transfer of ownership of a hotel and restaurant license for Kotobuki, Inc., dba/Sushi Ya Go Go. Commissioner Stone seconded the motion. The vote was declared unanimous. Jambalayas Cajun Grill Earlene Roach presented a change in corporate structure for CNSC, LLC, dba/Jambalayas Cajun Grill. She stated the applicant is adding Farley William Bolwell as an officer/director. Mr. Bolwell is reported to be of good moral character. Nicole Heiden, owner, was present for the hearing. Commissioner Johnson moved to approve the change in corporate structure for CNSC, LLC, dba/Jambalayas Cajun Grill, adding Farley William Bolwell as an officer/director. Commissioner Stone seconded the motion. The vote was declared unanimous. 5 11-08-1999 Fiesta's New Mexican Restaurant Earlene Roach presented a renewal of a hotel and restaurant license for Marquez Restaurants, Inc., dba/Fiesta's New Mexican Restaurant & Deli. She stated this application is in order. The Sheriff's Office reports no complaints or disturbances during the past year. Staff recommended approval. Deb Marquez, owner, was present for the hearing. Ms. Marquez stated this is their tenth anniversary this year, they opened in December 1989. Commissioner Johnson asked about business. Ms. Marquez stated it has been the best year yet. They were recognized this year as being one of the top ten minority businesses in Colorado. They discussed the anniversary celebration. Commissioner Stone moved to approve the renewal of a hotel & restaurant license for Marquez Restaurants, Inc., dbalFiesta's New Mexican Restaurant & Deli. Commissioner Johnson seconded the motion. The vote was declared unanimous. Village Market Earlene Roach presented a renewal of a 3.2% beer license for Buxman Enterprises, Inc., dbalVillage Market. She stated this application is in order. The Sheriff s Office reports no complaints or disturbances during the past year. Staff recommended approval. Earl Townsend, manager, was present for the hearing. Commissioner Johnson asked how long he has been with BUXillan Enterprises. Mr. Townsend stated about two and a half months. He came from Albertsons in Denver. Commissioner Johnson moved to approve the renewal of a 3.2% beer license for BUXillan Enterprises, Inc., dbalVillage Market. Commissioner Stone seconded the motion. The vote was declared unanimous. Gashouse Restaurant Commissioner Stone asked why a representative from the Gashouse was not present. Ms. Roach stated she sent them a letter of notification of the hearing date & time and had not heard from them. She stated this matter should be tabled until she can contact the applicant. Commissioner Stone moved to table the renewal of a hotel and restaurant license for Gashouse, Inc., dba/Gashouse Restaurant to November 22, 1999 at 11 :30 a.m. Commissioner Johnson seconded the motion. The vote was declared unanimous. Commissioner Johnson moved to adjourn as the Local Liquor Licensing Authority and reconvene as the Board of County Commissioners. Commissioner Stone seconded the motion. The vote was declared unanimous. Abatements Mark Chapin, Assessor's Office, presented a petition for abatement for Twin Spruce Development, schedule number R040414. He stated this is a common area in the Homeowner's Association name. In error it was placed on the tax roll from 1994 to 1998. Due to the time period for filing and pursuant to Statute they must deny 1994, 1995 and 1996. They are recommending a full abatement for 1997 and 1998. Commissioner Stone asked about the amount of the abatement. Mr. Chapin stated it is $490.26 for 1997 $458.72 for 1998. 6 11-08-1999 Carlos Gonzales stated he is a homeowner in Twin Spruce and they were surprised to find this on the tax notice. He stated the Assessor recognizes the error but also denies it. He stated it was not sent to the proper parties. Commissioner Johnson asked who the tax notices were sent to. Mr. Chapin stated originally they were sent to Twin Spruce Development which is typical. Commissioner Johnson asked when it came back on the tax roles. Mr. Chapin stated in 1994. They found out about the need to transfer the property having missed a deed recorded in the Clerk's office. Mr. Chapin stated it is State law not the Assessor's Office that does not allow them to apply for an abatement for 1994, 1995 and 1996. Mr. Gonzales stated this project was finished in 1993. The tax bill was sent to the Eagle Town Manager. Ric Bulduc, representing the petitioner, stated the Association has been in effect for eleven years. This is in essence double taxation as the homeowner's have paid for that as well. Renee Black, Asst. County Attorney, stated the Statute does state they are only able to go back three years. Mr. Chapin stated the State will deny the petition. They would grant the abatement but they can't bylaw. Mr. Gonzales asked if the Statute addresses the negligence of the office. Ms. Black stated it does and explained the requirements. Mr. Gonzales questioned if he didn't pay his taxes. Ms. Black questioned the amounts for 1997 and 1998 and if those have been abated. Mr. Bulduc stated they have received checks for that. Commissioner Johnson moved to grant the abatement for 1994 in the amount of$610.30 in 1995 for $602.75 and 1996 $601.88 for schedule number R040414, Twin Spruce Development for a total of $1815.03. Commissioner Stone seconded the motion. Commissioner Stone asked if the petitioner understands what is going on. Mr. Bulduc stated he understands that the monies will come out ofthe general fund. Mr. Chapin stated that in fact this is a gift as statute precludes them from refunding this. Chairman Phillips stated she does not believe she can vote for this abatement. Chairman Phillips called for the vote on the motion. Commissioners Johnson voting aye and Commissioners Phillips and Stone voting no. Commissioner Stone stated he understands the error made but recognizes the law and that no rebate can legally be made. Chairman Phillips concurred. Mark Chapin presented a petition for abatement for Avon Commercial Center, schedule number R045345. He stated the subject property is part of unit 107 in the Avon Commercial Center. He stated the property is leased to Eagle County and as a result the petitioner would like an abatement. Stewart Borne, representing the petitioner, showed an exhibit which surveys the space in question. The space is unit 107 which is shared by four agencies. Eagle County, Driver's license, a travel agency and Geno' s pizza are in those spaces. They are asking for an abatement for the exempt properties being Eagle County and the Driver's License area. He stated the denial has been made based on erroneous information. He labeled two categories with one being the Assessor's facts and the Real facts. He stated the Assessor believes there was 1800 square feet while there are only 1700. The non exempt users are Geno' s and the retail space. Mr. Borne further explained their position. The percentage on non-exempt use is 14%. He stated the Assessor based the rents on market rent but the rents are in fact lower. 7 11-08-1999 Mr. Chapin stated none of this information has been brought to his attention before today. He stated it would have been nice to have had the information prior to the hearing. He has addressed the issue based on the facts as he understands them. He stated he is embarrassed. Commissioner Johnson asked if they would like to take this information and review it. Mr. Borne stated he has dealt on this file extensively with Renee Black and has forwarded the map to her. She has been very helpful in the process. He stated he also sent a copy of this to Allen Black's office. Commissioner Stone stated he appreciates the frustration but would like an opportunity to finish his motion. Commissioner Johnson stated Mr. Borne having forwarded this to Mr. Black has been nearly a year ago and he suggests a tabling would be most appropriate. Mr. Chapin stated once he has the information it will not be difficult to do. Commissioner Stone moved to table schedule number R045345, Avon Commercial Center, until November 15, 1999. Commissioner Johnson seconded the motion. The vote was declared unanimous. Mark Chapin presented a petition for abatement for Eagle Transportation Services, schedule number R046867. He stated the issues on the next two items are the same. He stated this property is leased from the Airport. He stated they are recommending denial as the lease agreement indicates the value should be $295,000. He stated the other issue is the posessory interest issue. He stated the second one is much the same. It is schedule R046963. He reviewed the values and stated the lease arrangement and the net income capitalized are the basis for the valuation of the property. He stated as a result that is the best indicator of value. Brad Ghent stated the argument is based on the counters and the size of the counters. They pay two factors, one is rent for the counters and then a concession fee. He stated they have applied the concession fee as rents which is based more on the amount of revenue. He stated in effect you average the revenues of the various entities. He stated there should be some justification for rent based on the value of the location not on the revenue as a business person or entrepreneur. Mr. Chapin stated it is a very standard practice to have overages. He stated that is the only way to determine it. He stated he has taken an average, not the high or the low, which is part of the lease agreement. Todd Gardner, Eagle Transportation, questioned if you charge the property tax based on revenue, your ECAD is paying the taxes. Mr. Gardner stated on a per square foot you have to come up with a determination. He believes there has to be a formula that makes it fair for everyone. He questions penalizing those who do a good job of marketing their business. Chairman Phillips asked since they are paying fees, what are they taxing. Mr. Chapin stated they are following the lease agreement which makes it posessory. Commissioner Johnson spoke to the passing of the law allowing possessory interest not to be taxed. He stated in leases they have negotiated there was never any discussion about not paying taxes. Mr. Chapin stated each space is broken down into three types. He explained the basis ofthe value. As a result, the assessed portion of the actual value is 29%. That share of property tax is paid by all other entities. He stated this is how you value commercial property that is a leasehold. Mr. Ghent spoke to the rent and the minimal guarantee. Mr. Ghent stated it is not the tax on the rent but the tax on the revenues over and above that. It can vary tremendously. He asked about American Airlines. Commissioner Stone stated if we are being fair they then will tax all of the lease space in a similar fashion. Mr. Chapin stated each of the properties was looked at separately based on the leases. He stated 8 11-08-1999 the methodology would be the same. Mr. Ghent stated they have taken the revenues from prior years to establish the privilege fees. Mr. Chapin asked when this business was first put in. He stated when the terminal opened. Mr. Ghent questioned knowing the figures to determine the privilege fee. Mr. Chapin stated they have data back to 1986. Mr. Gardner questioned regardless of where the space is in the terminal the revenues are derived from the ability to do business. The space is not worth any more. Commissioner Stone stated they are not here to argue the posessory interest. He stated the tax amount is based on income approach which is capitalized. To discuss an income verses a rent space are two different approaches. He stated the argument is how they get the data. Mr. Chapin stated move Vail ski area to Dotsero. Is the income the property is going to derive based on location and management. He stated within the terminal it is still an income approach. Commissioner Johnson asked if the lease was based on a minimum guarantee. Mr. Ghent stated the minimum guarantee is 10% of the revenues. You could end up not generating enough revenue to justify the minimum guarantee. Chairman Phillips asked about the payments. Mr. Gardner stated the hard part is they are a five month business. Mr. Chapin stated they reappraise posessory interest every year. Mr. Ghent questioned next year if someone is in there that makes less than they, they will pay less in taxes. Mr. Chapin stated the FTR is $730,000 at 10% which is a total of$779,190. Commissioner Johnson moved to deny the appeal for schedule number R046867, Eagle Transportation Services, as recommended by the Assessor. Commissioner Stone seconded the motion. The vote was declared unanimous. Commissioner Stone moved to deny the request for abatement schedule number R046863, Frontier Rental, as recommended by the Assessor. Commissioner Johnson seconded the motion. The vote was declared unanimous. Mr. Ghent asked if the Supreme Court rules that posessory interest is not taxable if they will get that back. Commissioner Stone stated he can not make that determination but would recommend they apply for it. Mark Chapin presented a petition for abatement for Jean Scudder, schedule number R048746. He explained the requirements of the patent. He explained they are recommending an abatement for 1997 in the amount of$6,077.92 and for 1998 in the amount of$6,533.95. John Dunn was present for the hearing. Commissioner Johnson moved to approve schedule number R048746, Jean Scudder, as recommended by the Assessor. Commissioner Stone seconded the motion. The vote was declared unanimous. Mark Chapin presented a petition for abatement for Intermountain Flooring & Supply, schedule number R018285. He stated the property is the former American Eagle Repair. He stated it is a non-conforming property within the Town of Eagle. Any change is for multi-family and not commercial. The owner bought the property in 1996. He stated due to the non-conforming use he recommends they grant an abatement as the market isn't sellable. He stated the original value was in the 9 11-08-1999 neighborhood of $575,000. He stated he has done a discounted cash flow assessment. He stated the current use is allowed by the Town for five years. At the end of the term, the property has to conform to zoning. He is recommending an abatement for 1997 in the amount of$3,056.73 and for 1998 in the amount of$3,223.67. Commissioner Stone asked if the petitioner had requested more. Richard Kass, petitioner, was present for the hearing. He stated he did but after working with the Assessor's Office agrees with the figures presented. Commissioner Stone moved to approve schedule number R018285, Intermountain Flooring & Supply, as recommended by the Assessor. Commissioner Johnson seconded the motion. The vote was declared unanimous. Mr. Kass asked how the 1999 assessment works. Mr. Chapin stated they adjusted the 1999 values and everything should be okay. Mark Chapin presented a petition for abatement for Ob Buddy LLC, schedule number R045698. He stated this and item J are similar. Both properties were under construction. He stated this is located in Gypsum. The original value was based on a mix of income and cost. He stated Mr. Lindahl brought in information which rebutted their estimate. In rethinking this as of 1/1/98 the value should have $619,660 resulting in an abatement of$11,121.45. Kevin Lindahl stated his client is satisfied with that adjustment. Commissioner Johnson moved to approve schedule number R045698, Oh Buddy LLC, as recommended by the Assessor for tax year 1998. Commissioner Stone seconded the motion. The vote was declared unanimous. Mark Chapin presented a petition for abatement for Paul & Judy Scbiebe, schedule number R045176 which is the Eagle Lodge located in Eagle. He stated he has worked and reworked these numbers. He stated initially their estimate of the percent complete was 90% as of January 1, 1998. Mr. Lindahl submitted construction costs and as of January 1, 1998 they have completed only 50% ofthe addition. As a result, the value they estimated originally contemplated the addition being 90%. In running the numbers they are looking at values in the $40,000 range. He stated looking at the 50 rooms that existed and the new wing being 50% complete he is recommending an abatement of $619,300 for 1997 and $34,261.54 for 1998. Mr. Lindahl stated the value in 1999 is $3,700,000. For 1998 it is $5 million. Mr. Chapin stated they used the income approach in assessing the property. The cost approach would be the best indicator of value as the property hasn't been able to prove itself. He stated you can project. He must look at the property as it existed on January 1, 1998. He stated in looking at 1999 you can start to look more fairly at the income. He stated that is the basis ofthe value for 1999. He stated there is now a lot of competition. He stated he thinks he is being more than fair for the assessed value of 1998. Mr. Lindahl questioned what approaches were used in 1998. Mr. Chapin responded it was a mix. Mr. Lindahl asked for a breakdown. Mr. Chapin reviewed his figures. Mr. Lindahl stated they put another $1.4 in labor in the building and it increased in value by $660,000. Mr. Chapin stated the same mix would apply to any property that were a certain percent complete. You can only use cost approach on new properties. Commissioner Johnson asked what percentage of the value was income and what percentage was cost. 10 11-08-1999 Mr. Chapin stated on the estimated value applied to $1,731,920 or $34,634 pre rentable unit. They have a sale which occurred for $60,000 per unit which wasn't used. He stated 54.7% of the value is in the existing motel. Mr. Lindahl handed out packets to the Board. He stated his last question points to the problem. The property is in a partial state of completion and has no value as it produces no revenue. He stated if you say 50% was complete and put another $1.4 million in it, you see an increase in value of $600,000. The property is worth not what it costs but what the income is it can produce. Between the time they approved the expansion, 250 units came into Eagle and decimated the value. He stated you have to rely on an income approach and recognize there is no value to the Schiebe's until it is complete. He referred to the appraisal he had given to the Board. It reflects an income approach which gives an appraisal between $2.2 and 2.9 million. Mr. Lindahl stated based on this appraisal and the fact they don't think the cost method is appropriate, they would seek a value of$1,150,000. Mr. Chapin stated he thinks the suggested appraisal is ridiculous. He referred to page 5 and the deduction of interest. He stated they don't take property taxes out. He stated the market and cost approach have not been used in this appraisal. He stated the strength is usually in the income approach. He stated the 1998 value is $3.7 and 1999 is $3.1. He stated the abatement more than fairly addresses how the property existed on January 1, 1998. Mr. Lindahl questioned not using the discounted cash flow. He asked Mr. Chapin about the discussion they had about a $2.2 million value. Mr. Chapin stated in reviewing it further, he stands behind the value stated of $3.7. Mr. Lindahl asked what the actual value is for 1998. Mr. Chapin responded $5.3. He is recommending $3,165,720 for 1998. Mr. Schiebe stated he has been in the hotel business since 1968 and a member ofthis community since 1978. He stated the property is purchased based on the revenue. He recognized the potential. He spent time and effort bringing the property up to the standards. Over that time the property did well as there was no competition. He spoke to the RV park and making the decision to increase the hotel. He stated he could have sold for $4 million, now he couldn't come any where close. The property is producing less net revenue than it did then. He stated you only have what is operational. He stated the sale of the Holiday Inn happened later in 1998. He stated if the taxes continue to escalate, he'll have to sell the property. He plans to market. Just as the people there before, his revenue have gone down and certainly for the 1998 period. He stated neither in 1998 or 1999 did he receive notification. He stated he was not in a position to pay the tax and is in default of his loan. He stated it is a very difficult problem. He does not think it is fair to value to the property on the income approach. Commissioner Johnson questioned the consolidation of hotels and it seems like with larger chains they are trying to drive the small operator out first and then each other. Mr. Schiebe stated the hotel business has been extremely volatile as RITZ is in the hotel business adding hotels all over the place. The RITZ are sold very high and then they drop to the floor. He said he didn't buy the property to sell it. In the middle of 1998 the money available for hotels disappeared. He was given a loan because of his long standing in the community. Wells Fargo doesn't like hotel loans. He is basically being put out of business in this town. He has paid taxes in this county for 27 years and they increase annually. Commissioner Johnson asked if they used 1996 and 1997 income to estimate the 1998 income. Mr. Chapin stated 1995/1996 for 1997 and 1998. For 1999 it will be 1997 and 1998. Mr. Chapin stated between 1998 and 1999 hotel properties did not increase but the subject property is different because of the addition. Commissioner Johnson asked what percentage of the 50 rooms was available for occupancy in 1998. Mr. Schiebe stated from January 1 to July were the original 50 rooms. Commissioner Johnson stated he understood the mix for valuation. 45.3% was the value of the 11 11-08-1999 new construction. Mr. Chapin stated that is correct. Mr. Chapin stated if you don't take into account that portion ofthe new construction that existed January 1, you can't take that into account for any new construction. Mr. Schiebe stated the worst thing that happened was after construction of the new units nobody wanted to stay in the old units. He stated he has spent enormous amounts of money to bring it up to par. He stated with good marketing he can get the occupancy up. If it is based on net earnings, he can justify the taxes. He disagrees with using the combined cost approach. Commissioner Johnson stated from what he understands, if the people who came in before him were adding on to their facility they would have had to do the same thing. You can't take the income approach with something that is not finished. Otherwise the new construction would not be able to be valued at all. Mr. Schiebe stated in 1999 they would then have to have a reduction in taxes. Mr. Chapin stated if you look at pure income approach it doesn't recognize the new units. Commissioner Stone stated an appraisal is an art not a science and they have to blend the various approaches. He understands them taking a blending of the two approaches. He asked if this is for the entire property. Mr. Lindahl stated the difference between 1998 and 1999 is $600,000 which would give the $2.3 million. Commissioner Johnson stated you are talking about Y2 the hotel. He asked what 50/50 would come out to. Mr. Chapin stated $2.8 and change. Mr. Lindahl asked if they are suggesting they take halfthe $1.31 Mr. Schiebe asked about the appraisal and if the income is used from the future. Mr. Chapin stated they are using the income from the previous two years. Mr. Schiebe asked what the income strain was in 1976/1977. He asked if the assessment is made at a ready buyer. Mr. Chapin further explained. Mr. Schiebe stated the income and taxes are part of the sale price. Mr. Chapin stated the $2.8 million seems like a fair value. Commissioner Stone asked what the abatement would be. Mr. Chapin responded $40,129.09. Commissioner Stone moved to approve an abatement for schedule number R045176, Paul & Judy Schiebe in the amount of$40,129.09. Commissioner Johnson seconded the motion. The vote was declared unanimous. Mr. Schiebe thanked the Board though he is not thrilled with the result. He hopes that the Board will look at this differently. Mark Chapin presented a petition for abatement for Stonegate Village at Homestead, schedule number R045966. He stated this property is not in the Association's name. Commissioner Stone asked if they is any way to resolve the situation to make sure all property needing to be in the Associations name could be taken care of. Mr. Chapin stated the developer is told when the plat is submitted to deed this property to the Homeowners Association. Commissioner Stone asked the Assessor to follow up. Jody Caruthers stated at one time she wrote letters to all ofthe Associations and maybe they should do that again. Commissioner Stone moved to deny schedule number R045966, Stonegate Village at 12 11-08-1999 Homestead, as recommended by the Assessor. Commissioner Johnson seconded the motion. Commissioners Stone and Phillips voting aye and Commissioner Johnson voting no. Mark Chapin presented a petition for abatement for Samuel A. W. Sterling, scheduled number R015797. The Assessor recommended denial. He stated this is a primarylsecondary unit. The Assessor is precluded from granting an abatement for 1997 as per State Statutes. He stated the petitioner does mention a couple of sales but those sales do not support the value. Commissioner Johnson moved to deny schedule number R015797, Samuel A. W. Sterling, as recommended by the Assessor. Commissioner Stone seconded the motion. The vote was declared unanimous. Mark Chapin presented a petition for abatement for Cbarles Rosenquist & Ricbard Brown, schedule number R030295. The Assessor recommended denial. He stated this property is located in the basement of the Red Lion Building. He stated he rated the capitalizing income at 10%. He stated basement space is adversely affected by location in Vail. Commissioner Johnson stated that is truer today than 18 years ago. Commissioner Stone stated there has also been a couple of fires. He stated the petitioner refers to Club Chelsea. Commissioner Johnson stated Club Chelsea is a higher priced club. Mr. Chapin recommended an abatement of$3,226.96 for 1996 and $3515.97 for 1997. Commissioner Stone moved to approve schedule number R030295, Charles Rosenquist & Richard Brown, as recommended by the Assessor in the amount of $3,226.96 for 1996 and $3,515.97 for 1997. Commissioner Johnson seconded the motion. The vote was declared unanimous. Mark Chapin presented a petition for abatement for Jobn Gary Steele, schedule number R092819. The Assessor recommended approval. As a result of a re-inspection they are recommending an abatement in the amount of$1,138.64 for 1997 and $1,184.89 for 1998. Commissioner Johnson moved to approve schedule number R092819, John Gary Steele, as recommended by the Assessor in the amount of$1,138.64 for 1996 and $1,184.89 for 1997. Commissioner Stone seconded the motion. The vote was declared unanimous. Mark Chapin presented petitions for abatement for Stag Gulcb Partners, schedule numbers R045620, R045619, R045624, R045623, R045622,R045621, R04561 8, R045617, R0456l6. R045614, RR045615 and R045613. Jeff Monroe, Tax Services representing the petitioner, reviewed the chronology of the lots. He stated the correct valuations were done by the Assessor. Therefore, he withdrew the twelve petitions. Commissioner Stone stated the Board recognizes the withdrawal. Mark Chapin presented a petition for abatement for Eagle Springs Golf Club, schedule number R014980. The Assessor recommended denial. He stated the value of the entire golf course is $5,978,287.00. He stated as per Statutes they are to time adjust all sales of the subject property. He handed out sales lists of sales that occurred in the Eagle Valley in the time frame. He stated all of those support the per acre value of$12,000.00. Jeff Monroe spoke to the value of golf courses in th<~~~ He stated land was appraised separately. He stated the zoning and the condition of the ,I5roperty in 1996 is critical. He stated the land was zoned open space. Open space has been valued at $8,520.00 per acre in the past. He related there 13 11-08-1999 are deed restrictions on the property. He stated the sale occurred on June 3, 1993. He stated the purchase price breaks down to $8,520.00 per acre, and did not involve any other property. He stated the sale of the property sold one year earlier for $8,520.00 per acre. He stated he would like the sale to be adjusted by a percentage to bring it one year forward. He stated the value paid for the property one year earlier is the appropriate value of the land. He stated the difference is $7,338.96 which the petitioner is asking be abated. Just recently on October 12, 1999, laws were put into effect on how to appraise golf courses. He stated Eagle Springs is a for profit organization. Mr. Monroe stated they are asking the Board grant the land value adjustment. He stated 99% of new golf courses in Colorado have residential units around them. This golf course does not. Commissioner Stone stated the transfer of value is not decreasing the value of golf courses. He stated golf courses improve the value of residential real estate. Mr. Monroe stated one of the sales used by the Assessor's Office has residential attached. He reviewed what the lots would be worth. He stated the sale of Eagle Springs does not have to calculate what the sale does to residential units. There are none there. Mr. Chapin stated the sales list are those used through 1998. He stated there are not that many sales for large acreage. He stated they must time adjust by State Statute. Mr. Monroe stated the 40% time adjustment is over a 3 year period. In today's case that cannot hold true for a one year period. When looking at comparables you must look at ones in the same zone. He stated it lends credibility to the actual sale price that occurred. Commissioner Stone asked if there were improvements to the property. Mr. Chapin stated yes, it became an operating golf course. Mr. Chapin stated the value is 5 million and change and the actual cost to construct the golf course was 7 million and change. He stated you may not use the sale of this property alone but they must look for other sales in the area. Commissioner Johnson stated if the applicant would be willing to sell it for the price they paid, there would be someone out there willing to buy it. Mr. Monroe stated the property went to a severely deed restricted piece of property. Commissioner Johnson stated the County cannot tax the property on what future uses may be. He stated initially there was going to be a ten year gravel operation then it would be turned into a golf course. Mr. Monroe stated this is being compared to properties with higher densities which is not appropriate as this property cannot have residential units. Commissioner Johnson stated sale number 5 was still zoned agriculture at the time. He stated with the subject property sale, we are asked to believe that the property increased in value by 40% in a one year period. Commissioner Stone stated this land did not stay exactly the same. He stated he does not believe it went down in valuation. Mr. Monroe stated by a 300% difference, Eagle County's open space taxes are higher that any other County in this state. Commissioner Johnson moved to deny schedule number R014980, Eagle Springs Golf Club, as recommended by the Assessor. Commissioner Stone seconded the motion. The vote was declared unanimous. There being no further business to be brought before the Board the meeting was adjourned until November 15 1999. Attest: Clerk to the B 14 11-08-1999