Special Bd. of Aldermen — 02/27/2017 Page 5
Attorney Bolton
These are the ranges that DRA requires you to meet when you do the process we’re discussing.
Alderwoman Kelly
So | guess my question is why not just go to 90 instead of 100? 90 is the lowest right?
Mayor Donchess
| think if you said you were doing that, you’d have DRA problems.
Attorney Bolton
You probably could do it but you’d have the same problem you have if you go to 100 percent. Everything
would be raised to 90. The residential would have to go up higher to get to 90 percent or have to go up by a
greater amount on average than the commercials. In fact, the commercials might have to go down to get to
that number.
Mayor Donchess
Yeah that’s right. If we’re at 93 to take it to 90, you take the commercial values down not up.
President McCarthy
The end result of that will be just the tax rate is higher and the tax bills are identical to what they would have
been at 100 percent.
Alderwoman Melizzi-Golja
At least twice during your presentation Mayor Donchess you referenced a sale that was disqualified. Can you
identify what that sale was just so we have a sense of what it was that is not figured in here? Was it a public
sale and it was publicly disqualified? | would assume that’s public information.
Mayor Donchess
Some of these sales — well the one | was specifically referring to are the Kessler Farm apartments. It’s
technically like five different parcels but it sold all at one and it sold for $65 million against a $36 million
assessment. Now that was disqualified because it was a multi-parcel sale. If you ask KRT about a sale such
as — and there have been no other sales recently like that in Nashua so what does that mean? If you ask KRT
which | have, the market for a property such as that, very few of those in Nashua. Only one is sold might be all
of New England or all of northern New England so that sales that take place in Maine of similar size and
configured properties might reflect market value here. The people who trade in projects such as that, they’re
investing in apartments in kind of this area of the country. They’re not saying oh well you have to buy in this
town. They’re looking to invest money in real estate — you know multi-family, large complexes regionally.
Some of the sale downtown, there’s some sales downtown that suggest that residential buildings are also
selling for considerable more than appraisal. Now we're still within the residential realm although these are
residential buildings classified within the commercial and industrial segment because they’re not obviously
single family homes or condos.
