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HomeMy WebLinkAbout04/02/2007 VALUE ADJUSTMENT BOARD AGENDA CONTINUATION OF 2006 FINAL MEETING 10:00 A.M., MONDAY, APRIL 2, 2007 COMMISSION CHAMBERS VALUE ADJUSTMENT BOARD MEMBERS: Chairman Gary C. Wheeler Attorney William G. Collins, II Vice Chairman Wesley S. Davis, Property Appraiser David Nolte Board Member Peter D. O'Bryan Clerk of Circuit Court Jeffrey K. Barton Board Member Karen Disney- Clerk of VAB Maria I. Suesz Brombach Board Member Debbie MacKay 1. CALL TO ORDER — 10:00 a.m. 2. INVOCATION — Board Member Wesley S. Davis 3. PLEDGE OF ALLEGIANCE — Board Member Karen Disney- Brombach 4. APPROVAL OF VAB MINUTES a. March 2, 2007 b. March 6, 2007 5. REVIEW AND APPROVAL OF SPECIAL MAGISTRATE'S RECOMMENDATION FOR PETITION 2006-0504 — DENNIS AND CHARLENE ZARZYCKI 6. APPRAISER SPECIAL MAGISTRATE'S INVOICE a. John Robinson, MAI - $19,037.26 7. PUBLIC INPUT 8. ADJOURNMENT Ley Value Adjustment Board 04-02-2007 1 2006 VALUE ADJUSTMENT BOARD (VAB) MINUTES OF MARCH 6, 2007 CONTINUATION OF MEETING OF MARCH 2, 2007 The Value Adjustment Board of Indian River County, Florida, met in regular session Tuesday, March 6, 2007 at 8:30 a.m. in Conference Room "B", County Administration Building, 1840 25th Street, Vero Beach, Fl. 32960. Present were Value Adjustment Board Chairman Gary C. Wheeler, Vice Chairman Wesley S. Davis, Board Members Peter D. O'Bryan, and Debbie MacKay(Karen Disney-Brombach was absent). Also present were Value Adjustment Board Attorney William "Bill"DeBraal, Property Appraiser David Nolte, and Value Adjustment Board Clerk Maria I. Suesz. 1. Petitioner 2006-0504—Dennis & Charlene Zarzycki—requesting to address the Board. (Clerk's Note: Dennis and Charlene Zarzycki verbally requested that the Board review the property appraiser's evidence used to determine the assessed value on their property, because they believe there is an error. This item was heard following Item 4. See Item 5 for discussion.) 2. Call to Order Chairman Wheeler called the meeting to order at 8:30 a.m. 3. Invocation —Board Member O'Bryan 4. Pledge of Allegiance—Board Member Debbie MacKay 5. Approval of Special Magistrates' Recommendations of 2006 Value Adjustment Board Hearings Charlene Zarzycki handed out evidence that was presented by the Property Appraiser at her VAB hearing on December 14, 2007 with the Special Magistrate. She was appealing the assessed value on her property for 2006 taxes, and the Special Magistrate recommendation was the Board deny relief for failure to "overcome the presumption of correctness"of the property appraiser (see worksheet attached). She wanted the Board to review the property appraiser's evidence,because she believed there was an error made. Property Appraiser David Nolte explained that Mrs. Zarzycki wanted a rehearing, and he thought if the Board rehears her petition, then they need to notify all petitioners that they have the right to a second hearing. Discussion ensued regarding the VAB rules and procedures, and the Board asked for legal advice. Attorney DeBraal advised the Board that they have the right to hear what Mrs. 2006 Continuation of Final VAB Meeting March 6, 2007 - 1 - Zarzycki had to say and also what Mr. Nolte had to say, and they have the right to make a decision, one way or the other. He advised Mr. Nolte that he could make the same request as Mrs. Zarzycki, or appeal in circuit court. He also explained the rules of evidence under the VAB process. Chairman Wheeler asked Mrs Zarzycki to continue. Mrs. Zarzycki argued that her property was erroneously assessed. She gave her analysis of the four properties presented in the Property Appraiser's evidence at her hearing, and after breaking it down to what the County charges per house and per acre, she said that she was being unjustly charged. Discussion ensued and the Board asked questions of the Property Appraiser to obtain a better understanding of the appraisal process. Chairman Wheeler wanted to make certain that the evidence they were looking at had been presented to the Special Magistrate. Mrs. Zryzycki responded that it was presented at the hearing,but it was the first time that she saw it, and she explained that she did not have enough time to absorb it in its entirety during the hearing. She continued her argument that she could not understand how the values are inconsistent. Mr. Nolte wanted it noted for the record that when he asked Mrs. Zarzycki what she estimated the value of her property to be, she said she did not know. Discussion ensued among the Commissioners regarding this situation. Chairman Wheeler felt he did not have enough information to make a decision and he gave the Board two choices: they could uphold this recommendation and Mrs. Zarzycki could take it to Circuit Court, or they could call another meeting on another day. ON MOTION by Board Member O'Bryan, SECONDED by Board Member Davis, by a 4-0 vote (Board Member Karen Disney-Brombach absent), the Board accepted the recommendations of the Special Magistrate for the 2006 Value Adjustment Board hearings, with the exception of the Zarzycki parcel which would come back to the Board for further review. 5. Public Input None. L 2006 Continuation of Final VAB Meeting March 6, 2007 - 2 - 6. Adjournment There being no further business, on Motion duly made, seconded and carried, the Board adjourned at 8:56 a.m. ATTEST: J. K. Barton, Clerk By: Ma /4 a)/zd- Maria I. Suesz, Deput Jerk Gary . Wheeler, Chairman Approved: //` ' (Jto L Caw 2006 Continuation of Final VAB Meeting March 6, 2007 - 3 - �'■- b. School Board Resolution 2007-05 — Appointments to VAB for 2007 No Board Action taken or required. 10. Public Input There were no speakers. 11. Adjournment Chairman Wheeler announced that he would reconvene the meeting at 8:30 a.m., Tuesday, March 6, 2007, Conference Room "B", to continue review of Item 6. There being no further business, on Motion duly made, seconded and carried, the Board adjourned at 3:10 p.m. ATTEST: J. K. Barton, Clerk L By: 71(0.44A,14411---- Maria 0.4c ,}f Maria I. Suesz, Deputy Orlerk Gary( Wheeler, Chairman Approved: 4/-'x,2 -a 7 2006 Final VAB Meeting-March 2,2007 -4— Com. 2006 VALUE ADJUSTMENT BOARD (VAB) MINUTES OF APRIL 2, 2007 ZARZYCKI PETITION No. 2006-0504 SECOND HEARING The Value Adjustment Board of Indian River County, Florida, met in Special Session to conduct a second hearing for petitioners Dennis and Charlene Zarzycki, Tuesday, April 2, 2007, at 10:05 a.m. in the Commission Chambers, County Administration Building, 1840 25th Street, Vero Beach, Fl. 32960. Present were Value Adjustment Board Chairman Gary C. Wheeler, Vice Chairman Wesley S. Davis, Board Members Peter D. O'Bryan, Debbie MacKay, and Karen Disney-Brombach. Also present were Value Adjustment Board Attorney William G. Collins II, and Value Adjustment Board Clerk Maria I. Suesz. Present from the Property Appraiser's Office were: Property Appraiser David Nolte, Deputy Chiefs Darlene Silverstein and Mickey Umphrey, Supervisor Bruce Goodwyn, Appraisers Vance Olvey, and Robbie Fox, along with Land Appraiser Sharon Hammond. 1. CALL TO ORDER Chairman Gary C. Wheeler called the meeting to order at 10:05 a.m. 2. INVOCATION Board Member Wesley S. Davis delivered the Invocation. 3. PLEDGE OF ALLEGIANCE Board Member Karen Disney-Brombach led the Pledge of Allegiance to the Flag. L Value Adjustment Board 04-02-2007 - 1 - 4. APPROVAL OF VAB MINUTES `.. A. MARCH 2, 2007 ON MOTION by Board Member O'Bryan, SECONDED by Vice Chair Davis, the Board unanimously approved the minutes of March 2, 2007, as written and distributed. B. MARCH 6, 2007 ON MOTION by Board Member O'Bryan, SECONDED by Vice Chair Davis, the Board unanimously approved the minutes of March 6, 2007, as written and distributed. 5. REVIEW AND APPROVAL OF SPECIAL MAGISTRATE'S RECOMMENDATION FOR PETITION 2006-0504 — DENNIS AND CHARLENE ZARZYCKI (parcel number 32391900001014000002.0) (kir The Clerk swore in all participants. Mr. Dennis Zarzycki handed out the Property Appraiser's information of comparables as presented to the Board on March 6, 2007. On that date, Mrs. Charlene Zarzycki requested the Board rehear her argument, and this meeting was set for that purpose. Mrs. Zarzycki reviewed the figures that the Property Appraiser's office used to assess her property, stating that she did not believe she was taxed fairly. One concern she had was that the number of rooms on the Property Appraiser's records indicated her home had 15 rooms, and she stated that was not correct. She pointed out that she lives in the "country", and presented property values in the County that are assessed less than her property. She said she was appraised $100 per square unit more than the other houses completed on her block in 2006, and she just wanted to be fairly appraised. Chairman Wheeler asked for a rebuttal from the Property Appraiser's office. Value Adjustment Board 04-02-2007 - 2 - Appraiser Vance Olvey explained that he did not have new evidence since the previous hearing. He stated that he did have trouble finding property similar to the Zarzycki's style of home, and he reviewed for the Board the acreage per each comparable used. Robbie Fox added that they reviewed the letter that the petitioner supplied, dated November 16, 2006 in their analysis. He pointed out they tried to summarize the letter and answer their questions, and he proceeded to do the same for the Board explaining why the property was assessed higher than the comparables. He advised that: 1. All comparables are on 5-acre tracks, and the Zarzyckis' property is 20 acres. 2. Only one comparable is a two story, as the Zarzycki home. 3. They do not classify homes differently based on location. 4. The cost to build does not equal value, as a rule. Referring to the November 16, 2006 letter, the petitioner stated $580,000 to build, and insured double what it cost to build. He also addressed the room counts that were taken off the blueprints, explaining that only bathrooms make a difference in value, and it is an informational item. The Board reached a CONSENSUS to look at the land value first, then the value of the building. Mrs. Zarzycki explained how she analyzed the land value by using the land value of the closest house directly across the street from her. Appraiser Sharon Hammond said there was a mistake in the appraisal of that house (across the street), and a correction had been made. She pointed out the land values on the Zarzycki's street were $42,000 per acre. Discussion continued regarding the appraisal process and value per acre. In regards to the process of appraising land and buildings from a sale, Property Appraiser David Nolte said he did not believe it was legal for the Board to change values based on assessments, and Attorney Collins agreed that the Board should be looking at sales prior Value Adjustment Board 04-02-2007 - 3 - assessments, and Attorney Collins agreed that the Board should be looking at sales prior Caw to January 2006. Mr. Nolte reminded the Board that an MAI Appraiser had reviewed the petition and agreed with the Property Appraiser's conclusion. Commissioner Davis wanted proof by Mr. & Mrs. Zarzycki that they had been assessed differently from everyone else. Discussion ensued and the Board reviewed the Property Appraiser's comparison sheet with Sharon Hammond. Mrs. Zarzycki responded to Commissioner Davis' question, as to what they think the value of their land is, replying $42,500 per acre. The Board proceeded to evaluate the appraisal of the building. Mr. Goodwyn explained what factors were looked at by the Appraisers. Appraiser Robbie Fox explained in detail the shape factors, asking the Board to look at the sketch that shows no square rooms, which is how they arrived at the market value of their home. "This is a unique situation," he added, "in the fact that they have not had a$2 Million dollar home sale within the county." There was a lengthy question and answer period between Commissioner Davis and staff regarding appraisals by location. Commissioner Davis saw the problem to be that the Zarzyckis' built the home and it did not cost them that much, and therefore they felt that it could not be worth that much. Mrs. Zarzycki continued to argue her position. Commissioner Davis asked if they could look at the other comparables, and after discussion, it was derived that there was a comparable sale, with less the land value, that was appraised at $100 per sq. foot. Value Adjustment Board 04-02-2007 - 4 - Chief Deputy Umphrey commented on comparable #1 that sold in June 2005. It was a 20-acre sale, and less the land value was $277.00 per sq. foot. Attorney Collins reminded the Board to consider the criteria set forth in the Statutes, and remarked that the Property Appraiser has to take into consideration location, size, sales, cost, condition, and income. In order to overturn the Property Appraiser's assessment, the Board has advised they have to find that the property appraiser did not consider one of the factors, or that the appraisals were arbitrary. Board Member Debbie MacKay stated that it may be arbitrary, because the Property Appraiser said it was hard to find comparables that had the exact same amount of acreage with the same exact amount of uniqueness. Chief Deputy Umphrey disagreed with her comments stating that they just reviewed three comparable sales. He pointed out that the petitioner had not shown sale comparisons, and added that the petitioner compared various homes on various size lands, and the property appraiser was not doing that; they were using factual information. He added that the petitioner did not provide an appraisal or sales, showing their house was not worth $2 million dollars. Chairman Wheeler felt they were just repeating the same information and asked for a motion. MOTION WAS MADE by Commissioner O'Bryan, SECONDED by Karen-Disney Brombach for discussion, to accept the petitioner's value at $1,387,748.00. Chairman Wheeler asked for legal advice because he felt the Board was getting into the business of appraising the property. L Value Adjustment Board 04-02-2007 - 5 - Board Member Karen Disney-Brombach asked the petitioner if they had their house appraised, and Mr. Zarzycki said they could not afford it. Mrs. Zarzycki said she has a lot of collectibles in her house and that was why her homeowner' s insurance was so high. Mrs. Brombach told Mrs. Zarzycki if they are asking the Board to cut their tax bill in half, the cost of an appraiser would be a small investment. The reasons that they could overturn this would have to be that the petitioner could prove to the Board that the property appraiser did not do his job correctly. Mrs. Zarzycki continued to argue her position. Attorney Collins tried to translate the figures presented stating that the Property Appraiser has it valued at $2,065,000.00, and the petitioner says it is worth $1,387,388.00. If you fix the land value at $42,500.00, that is $845,750.00. If you subtract the land value of each house you get a home value under the Property Appraiser $1,209,000.00, and the petitioner's value $542,000; divide the square footage of the house into the home value, the Property Appraiser's method comes to $200 a square foot, and the petitioner's method comes out to $90 a square foot. Chairman Wheeler said they would have to determine that the Appraiser was acting arbitrarily and he did not see that. Commissioner O'Bryan said he would argue that there is some presumption of arbitrariness on this assessment. Based on other assessments on that street it is 100% higher than any other assessment on that street. A lengthy discussion continued between the Commissioners and the Property Appraisers regarding comparable sales. Commissioner Davis described his method of deductive reasoning or logic to determine an assessment. He said Attorney Collins' comments had more bearing on his decision than what he heard, and he could not support the Motion. Value Adjustment Board 04-02-2007 - 6 - (likw Board Member Debbie MacKay supported the motion. Chairman Wheeler CALLED THE QUESTION and the Motion FAILED, by a 2-3 vote, (Chairman Wheeler, Board Members Davis, and Brombach opposed) to accept the petitioner's value at $1,387,748.00. Attorney Collins advised the Chairman to have a Motion to uphold the Special Magistrates recommendation. MOTION WAS MADE by Board Member Davis, SECONDED by Chairman Wheeler, to uphold the Special Magistrate's recommendation. Discussion ensued regarding the manner in which the arguments were presented. The Chairman CALLED THE QUESTION and the Motion carried 3-2 (Board Member O'Bryan and .. MacKay opposed). The Board approved to uphold the Special Magistrate's recommendation to deny relief. 6. APPRAISER SPECIAL MAGISTRATE'S INVOICE A. John Robinson, MAI - $19,037.26 Clerk of Value Adjustment Board Maria Suesz stated that she reviewed the invoice and found the charges to be appropriate. Assistant County Attorney Bill DeBraal had told Attorney Collins that there definitely was a problem with the Value Magistrate because he took 90 days instead of 20 days to complete the reports and submit them to the Clerk. Board Member Brombach commented that the reports not being filed timely was an issue at their last meeting. L Value Adjustment Board 04-02-2007 - 7 - Attorney Collins suggested changing the hearing schedule to mornings, and scheduling the afternoon for completing reports. He said it would be advisable also to contract more than one magistrate, to be able to schedule a different Magistrate, if they became unhappy with anyone. Board Member Karen-Disney Brombach was concerned with paying the Magistrate for being inefficient and tardy, and then proceeding to hire him again. Chairman Wheeler felt Attorney Collins' consideration was valid and should be considered. Vice Chair Davis agreed the reports should be completed the same day. On Motion by Vice Chair Davis, Seconded by Chairman Wheeler, by a 4-1 vote (Karen Brombach opposed) the Board approved payment to John Robinson, MAI, in the amount of $19,037.26; approved to change the scheduling of hearings to mornings, and schedule the afternoons for completing reports; and approved the hiring of more than one Appraiser Magistrate. 7. PUBLIC INPUT None 8. ADJOURNMENT There being no further business, on Motion duly made, seconded and carried, the Board adjourned at 12:05 p.m. L Value Adjustment Board 04-02-2007 - 8 - ATTEST: • J. K. Barton, Clerk By: P(G e%t V 2. Maria I. Suesz,Deputy Clerk Gary 'Wheeler, Chairman Approved: JUL 1 0 2007 • Value Adjustment Board 04-02-2007 - 9 -