Finance Committee - 3/21/2018 Page 18
Mayor Donchess
Looking at the slide, if we can add a little bit through expert analysis and completely thorough approach
towards the assessment of all properties. If we can add to the commercial tax base by more accurately
determining fair market value, we will lessen any shift. There are properties out there, 23 Temple, the property
we examined in some detail, because we have the sub-standard housing committee is assessed at $1.4 million
dollars or $1.5 million dollars. That property has 120 units, seems like it has no vacancies or very few and
people pay $500.00 a month so it’s bringing in $60,000.00 a month. It has got some expenses but when we
hold committee hearings on the property, it was managed by a guy who is not even paid salary according to
the testimony. He gets a free apartment. So it seemed like based upon the testimony we took that the
operating expenses were not all that great. So based on the income approach, is a property that is bringing in
$60,000.00 a month, with some expenses yes, but still, if that’s the case, is that really worth $1.4 million
dollars? It’s worth more than $1.4 million dollars right? So just one example. Using the income approach we
may be able to capture, based upon | think information that is public or that has been discussed in the
business community, the owners of that property have turned down — and | don’t want to pick on this, I’m just
giving you an example of what can exist and why the income approach might help. The owners have been
offered more, about three times $1.4 million dollars and have turned it down. Maybe the income approach can
help us realize on that property, and that’s just an example, we are not picking on that one, and many others a
more accurate reflection of what fair market value really is.
Alright, if there are no other questions, | don’t mean to shut off discussion. If there are no other questions, we
will go to the final, the only remaining item on the agenda which is the last communication.
From: Dan Kooken, Purchasing Manager
Re: KRT Appraisal Professional Property Revaluation (Value: $500,000)
MOTION BY ALDERWOMAN KELLYTO ACCEPT, PLACE ON FILE AND AWARD THE CONTRACT TO
KRT APPRAISAL IN THE AMOUNT OF $500,000. FUNDS ARE AVAILABLE IN FINANCIAL SERVICES,
CERF
ON THE QUESTION
Alderman Klee
| just have one comment, I’m not an expert in any of these things but | did look at this and it is quite substantial,
| mean every little item seems to be in here, | agree with you. It seems to be very thorough and | think it will
help the City try to try and find some appropriate evaluations.
Mayor Donchess
And as you’ve pointed out, it’s a 22 page contract.
John Griffin
Just a few other notes, the Department of Revenue Administration, they approved this contract, we got a letter
stating as such so that’s good, we can start. If you look on page 21 an extremely aggressive schedule, but one
that we can do anywhere from the kick off meeting with the DRA staff monitor who will be looking after us to
the completion where we need the values by October 1* to help set the tax rate going into next year. There is
room for informal hearings, but a lot of communications, | think we talked about that at the informal meeting.
There should not be any surprises to the best of our ability. And then the informal hearings are where the tax
payers can come in and discuss their particular case, even when | just to note, even when we lost $1 billion
dollars in Fiscal 2008/2009 and another half a billion in Fiscal 2013, there were people calling. Everybody is
going to be looking at their neighbors and so forth and we had a few calls. And if you look at the abatements
which is kind of last effort for folks to reduce their values, those have gone down significantly over the last
