2023-09-27 BCA Tax Assessment Appeal Hearings

Town of Manchester, Vermont

Board of Civil Authority Minutes - Tax Assessment Appeal Hearings

Wednesday, September 27, 2023 6:00 P.M.

Manchester Town Hall

Board Attendees: Wayne E. Bell, Ruth Hoffman, Martha Heilemann, Cynthia Kilburn, Richard Long, Charles “Chic” Murphy, Rebecca “Becky” Nawrath, Barbara Powers, Anita L. Sheldon, Laurie Kunz

Absent: Alison Hill, Frank Kropa, Kelsey Towslee, Ivan Beattie, Heidi Chamberlain, Greg Cutler, Janet “Jan” Nolan

Town Staff Attendees: Assessor Gordon Black

Public Attendees: Perry Green, Sheila Green, Attorney Elizabeth Glynn on behalf of Equinox II LLP, Attorney Kevin O’Toole on behalf of GRV Manchester LLC

Chair Cynthia Kilburn called the meeting to order at 6:00 P.M.

AGENDA REVISIONS

Kilburn noted Simon Perkins & Elizabeth Van Woert withdrew their tax assessment appeal hearing and Modern Motel Group LLC would be by letter only.  Kilburn revised the agenda to hear Equinox II LLP when Attorney Elizabeth Glynn arrived at 7:00pm.

APPROVAL OF MINUTES OF August 30, 2023

M. Heilemann moved to approve the minutes as presented, seconded by R. Long. The minutes were approved unanimously.

OATH FOR BCA MEMBERS

A. Sheldon administered the BCA tax appeal oath to all BCA members present for the tax assessment appeal hearings.

TAX ASSESSMENT APPEAL HEARINGS

Green, Perry & Sheila – 1849 Main Street (2023-001)

Assessor Gordon Black introduced the property at 1849 Main Street, parcel 3002 owned by Perry & Sheila Green and assessed at $811,100.

Perry Green provided a letter previously sent to the Assessor and readdressed to the Board of Civil Authority, noting the fair market price for the true custom designed property should be around $600,000. Green believed the property, if sold reasonably quickly would sell for approximately $600,000. He further noted the house was specifically designed for wheelchair accessibility and provided comparables in the same neighborhood. Parcel 1718, currently owned by “Cutler” was a 2.1 acre parcel. Parcel 1857, currently owned by “Severance” was a 16-acre parcel. Parcel 1037 owned by “Hopkins” was an 11-acre parcel. Parcel 2319 currently owned by “Silverstein” was a 2-acre parcel. Green also noted the Inn at Ormsby Hill, a commercial property across from Green’s residence, generated traffic due to the business in addition to another neighbor generating noise while assisting others with firewood.

Green believed fair market value would be the only proper way to assess the home. Green submitted a letter from Laura Beckwith, a local realtor, suggesting a current market price range of $675,000 to $700,000. Beckwith’s letter included six comparables to Green’s property: 268 Meadow Ridge Road recently sold for $602,000; 207 Hillcrest Road recently sold for $622,500; 329 Canterbury Road recently sold for $635,000; 521 Barnumville Road recently sold for $725,000; 630 Winter Street recently sold for $733,000; 114 Village Glen Road recently sold for $775,000.

Assessor Gordon Black stated the appraisal company assessed the property over $1,104,400. Assessor Black lowered the value to $811,100 as it is a unique home and it may be difficult to sell.  Black offered ten comparables to Green’s property:98 Village at Ormsby Hill sold in 2020 for $875,000; 32 Village at Ormsby Hill sold in 2021 for $875,00; 318 McCooey Drive sold in 2021 for $800,000; 100 Cook Hollow sold in 2021 for $1,350,000; 20 Edward Isham Drive sold in 2020 for $750,000; Green’s immediate neighbor, Greg Cutler’s home was recently assessed for $839,300; 27 Edward Isham Drive was recently assessed for $825,000; 430 Rocking Stone Farm was recently assessed at $1,418,900; 161 Edward Isham Drive was recently assessed at $890,100. Black recognized that Green’s house would require a particular buyer as the style is not in keeping with the style most pope associate with Manchester and Vermont. Black noted it would be difficult to find a well-constructed, solid home in a lovely setting and was very well maintained with as much space as the Green’s home for less than $800,000. Black noted a home in Hillcrest with less than half the square footage of Green’s home was listed at $770,00 and went under contract almost immediately at $800,000. While Black noted a listing does not equate to a sale, but it shows properties are still being sold for over the assessed value. Black maintained that $811,100 was a fair assessment of the subject property.

Green also noted area discrepancies after measuring the areas himself. Green declared the area discrepancies:

Level of Home Green’s Dimensions Green’s “Official Record” Dimensions Assessor Black’s Dimensions

1st floor 2524 SF 2792 SF 2486 SF

2nd floor (3/4) 1440 SF 2812 SF 2233 SF

Cellar 2524 SF 2492 SF 2486 SF

Garage 768 SF 816 SF 768 SF

Bell noted a discrepancy as the Green letter did not reflect the same figures on the Town’s assessing card. Green measured his own home and figured the square footage himself. Green stated the property should be around $620,000. Powers asked if the board should be measuring the home. Assessor Black explained how the appraisal company measured and inspected the home.

W. Bell, M. Heilemann, R. Long and R. Hoffman agreed to visit Perry & Sheila Green’s home located at 1849 Main Street (2023-001) on Tuesday, October 3, 2023 at 10:00am.

Modern Motel Group LLC – 2066 Depot Street (2023-004)

L. Kunz recused herself from the Modern Motel Group LLC hearing as a voting member.

Assessor Gordon Black introduced the property at 2066 Depot Street owned by Manchester Motel Group LLC and assessed at $895,300.

Kilburn shared the property owners were by letter only. Kilburn read the letter provided, noting the owner believed the entire methodology was flawed and further noting there was no rational basis to increase the assessment. Due to the Federal Reserve raising interest rates, the cost of money was going up and was disproportionately effecting housing and hospitality. The letter referenced the Aspen Motel as an example to demonstrate the failure to inflate value, recently selling for $1.6 million. In 2018, the price was $1.5 million, and was mostly debt. The letter included numerous articles from recent Wall Street Journals to support Modern Motel Group LLC’s opinion of fair market value at $714,500.

Assessor Black shared Modern Motel Group LLC has done a great job revitalizing the Rest Motel. The reappraisal team initially assessed the property at $1,106,200. Following a grievance hearing, Assessor Black reduced the value to $895,300, and he believed that was a fair and equitable assessment of the property. The 19-unit motel has been completely renovated, updated and modernized with 2.80 acres of land located on Depot Street. Although there was a clerical error by the appraisal team reflecting acreage of 2.08 acres, Assessor Black felt as if the change was nominal and would not significantly impact the assessed value of the property. Black provided The Toll Road Motor Inn, a 17-unit motel located at 2220 Depot Street as a comparable that sold for $1,150,000 in February 2022. Black also provided the Aspen Motel, a 32-unit motel located at 5871 Main Street as another comparable that sold for $1,638,000 in July 2023. Black noted motels were often advertised for sale on a “per room value” basis. Black provided additional comparables on a “per room value”, noting The Rest, a Modern Motel was currently assessed at $47,120 per room, lower than any other motels currently on the market. Specifically, the Marble Ledge Cabins in East Dorset were advertised for $99,000 per room, the Inn at Mount Snow advertised at $107,143 per room and The Happy Bear Motel in Killington, VT advertised at $85,294. While Black indicated asking and selling prices are not the same, using a similar approach with actual Manchester sales, the Toll Road sold for $67,959 per room and the Aspen sold for $51,187 per room. Applying the same approach, the Modern Motel Group LLC’s current assessment equates to $47,120 per room. Black further noted assessments of local motels including The Chalet Motel at $51,838 per room, the Palmer House assessed at $80,000 per room, and the Econolodge Motel’s new assessment of $41,239 per room due to the long-term housing of homeless persons during Covid-19 and the subsequent significant deterioration of the property.

Kilburn asked, and Black confirmed the motel had 19 rooms on 2.8 acres, noting the discrepancy in acreage. W. Bell asked if the motel were part of the residential section and Black confirmed there were a few residential apartments onsite as well.

W. Bell, M. Heilemann, R. Long and R. Hoffman agreed to visit Modern Motel Group LLC located at 2066 Depot Street (2023-004) on Tuesday, October 3, 2023 at 9:00am.

GRV Manchester LLC – 4960 Main Street (2023-002)

Assessor Gordon Black introduced the property at 4960 Main Street owned by GRV Manchester LLC and assessed at $530,400. Black was granted authorization to present his case prior to Attorney O’Toole’s evidence. Black acknowledged the current assessed value of $530,400 appeared to be somewhat high and suggested lowering the assessment of the property to $420,000, a 22% increase from the prior year’s assessed value of $342,400. Black offered 4927 Main Street selling for $460,000 in March 2022, 4686 Main Street selling for $400,000 in March 2022, 4620 Main Street selling for $405,000 in January 2021 and 4919 main Street selling for $360,000 in March 2021. He noted the location as being a prominent place in the historic downtown area with an attractive building. However, there’s no parking and there’s a surplus in retail space in the market currently. Black noted neither a sales approach nor an income approach supported the assessed value of $530,400.

Attorney Kevin O’Toole acknowledged he and Assessor Black had discussed the possibility of an 20% to 25% increase of the previously assessed value of $342,500, which would be acceptable to him and his client. Attorney O’Toole offered 4686 Main Street as a comparable selling for $400,000 in April 2022.

C. Kilburn, R. Nawrath, C. Murphy and F. Kropa agreed to visit GRV Manchester LLC located at 4960 Main Street (2023-002) on Friday, September 29, 2023 at 1:00pm.

Equinox II LLP – 49 Maple Street (2023-003)

Assessor Black introduced the property at 49 Maple Street owned by Equinox II LLP and assessed at $12,242,300. Black was granted authorization to present his case prior to Attorney Glynn’s evidence. Black acknowledged 300+ hearings during the town-wide reappraisal. Due to the complexity of the property, Black denied the appeal at the Assessing level and carefully reviewed the property after-the-fact. In his review of the property, Black determined the value of said property should be $10,000,000 and recommended the board further reduce the assessment to $10,000,000 as he believed the $12,242,300 assessment was simply a mistake. Considering the uniqueness of the facility, Black provided comparables in Vermont and in the Berkshires including  Filmore Pond in Bennington, Vermont with an assessed value of $8,630,600; Sweetwood Senior Living in Williamstown, MA assessed for $7,050,400; Westview Meadows in Montpelier, Vermont assessed for $8,837,000; The Gables at East mountain in Rutland Town, Vermont assessed for $8,540,700; The Senior Center building in Bennington, Vermont, a new project involving renovation of the former Benn High complex, projected to be around $8,000,000 when the project is completed. Black noted 49 Maple Street was a superior property to all of the comparables provided, he did not believe it was 50% more valuable. He also noted Equinox Terrace, a property abutting 49 Maple Street, was assessed at $559,300, specifically noting a significant discrepancy in the first five acres of the Terrace property was assessed for $525,000 while 49 Maple Street’s first five acres were assessed for $875,000, further supporting Black’s recommendation to lower the assessed value.

Attorney Glynn believed the subject property was worth between $8,500,000 and $10,000,000.  Attorney Glynn provided the same comparables for the board to review as Assessor Black in addition to Vista Vermont in Mendon, Vermont assessed at $5,300,000. All subject comparable properties have more units, and in some cases, the acreage is significantly higher. She also referenced Equinox Terrace with a current assessment of $5,594,600 and Bromley Manor with a current assessment of $6,422,000. Bell asked and Attorney Glynn confirmed there were 56 rooms at Equinox Village. Black noted there was a difference between independent living and assisted living, however he still believed the property should be assessed for $10,000,000.

C. Kilburn, R. Nawrath, C. Murphy and F. Kropa agreed to visit Equinox II LLP located at 49 Maple Street (2023-003) on September 29, 2023 at 1:30pm.

With no further testimony, tax assessment appeal hearings closed.

OTHER BUSINESS

With no further business to come before the board, R. Long moved to recess until October 18, 2023 at 6:00pm to hear inspection committee reports, seconded by R. Hoffman. The meeting was recessed at 7:33PM.

Anita L. Sheldon, CMC/CVC

Clerk, Board of Civil Authority