THOMAS J. CARLSON 1 ATTORNEY AT LAW 205 W. WALNUT, SUITE 200 SPRINGFIELD, MISSOURI 65806-2115 (417)447-4621 FAX (417)447-6145 June 22, 2019 Christian County Board ofEqualization C/o Christian County Clerk's Office 100 W. Church St. Ozark, MO 65721-6901 Re: Appeal ofAssessment ofThe Villas at Forest Park Parcel # 10-6-23-3-2-65 To the Board ofEqualization and Danny Gray, Assessor: My assistant explained to me how you arrived at your estimate ofthe value ofthe Villas at Forest Park. I respect your analysis, but I am hoping that you will take into consideration the following facts. First, as you know, the final value is to be determined by calculating what a willing buyer would pay a willing seller for the property. In this instance, that number is $360,000, because that is in fact what I paid for it this year. I bought the property from Mark Gardner who has been a low-income housing developer for the last 20 years. I would guess that he has built 40 or more projects in several states, 20 or so were here in Missouri. My point is Gardner is quite capable of determining what this property was worth and would have soId it for more to someone else if he could. As for me, I also have been in this business for 20 years or so, having done projects in Missouri, Kansas, and Oklahoma. I have managed approximately 2500 units during that time. Both Gardner and I know what these properties really are worth. Another point is that you felt that the expenses were too high as a percentage ofthe gross revenues. I agree with that as well. However, what you may not know is that because this is a senior property, the MHDC determines what the rents should be and for many years they refused to permit Gardner to raise rents at all and even now they won't permit the rents to be raised above the annual cost of living increase for people on Social Security. So, even though expenses might go up 5% per year, they will cap rent increases at a number closer to two percent. This property has been a Iow-income project for the last 20 years and will remain in the program for the next 10. It has lost on average $15,000 - $20,000 per year and when I bought it, I expected it to continue to lose money for the next 10 years. You felt that some items are too expensive, as I said. But the housing agency (MHDC) forces the owner to continue supplying items, such as cable and internet for example, because when the agency awarded the project, that was a requirement. MHDC won't now permit a change. Believe me I have tried. Finally, as you know, under the state statute that covers these low-income projects, the property must be appraised using the income approach. Because even with cost reductions ifthat were possible, its value based upon an income approach would still be very small. What is the cap rate on a property that has no income? I am a lawyer (although I am my only client) and have challenged the appraisal on probably 10 or more ofthese projects in recent years and appealed the ones that were not settled to the State Tax Commission, and in every case, I have won. Finally, if we are not able to work this out, and I do win at the State Tax Commission, I would be concerned that other low income housing developers may want to challenge their current assessment so that in the long run not settling on this one project could cost the county much more in lost tax revenue if other developers request a reassessment. I would suggest one of two approaches: Agree that the property is appraised at $360,000 for this year. Next year after a year's operations, you are free to reappraise it and if operations have improved, then I would agree to a higher value. Alternatively, I would agree to a smaller number than you have suggested now and live with it. One last point, the values that you are suggesting are higher on a per unit basis than anywhere else that I am paying in Missouri. And those are on projects that actually make money. I will be candid. I would be surprised ifthe BOE makes any changes. They rarely do until this is appealed but at that point, the attorney fees start kicking in and that is usually what it takes to get a reality check. SUMMARY 1. The best determination of value is what a willing seller pays a willing buyer. That number is $360,000 based upon this year's sale. 2. A cap rate of 7.5% is high for this area. You might get that on a Class A property in an urban area like Chicago, but not in Nixa. 3. It's not that expenses are too high as much as rents are two low; and MHDC refuses to allow a significant increase in rent. The Assessor reviewed other tax credit properties in Christian County but many if not most are not senior so that the rents could be raised on those properties. 4. The income approach is required to be used for rent-restricted properties in Missouri. There is nothing in the statute that permits the Assessor to value something based upon what he thinks it should earn. Actual income and expenses should be used. 6 t 5. I am willing to agree to a reappraisal after a year of operations. I have every incentive to cut expenses but until that occurs, the value ofthe property should be based upon its present condition. Let me know ifyou are interested in discussing this before the BOE hearing. 84_-8£2.- Thomas J. Carlson Y TJC:maw Enc. t PROPERUASSESSMENTAPPEAL FORM CHRISTIAN COUNTY BOARD OF EQUALIZATION TAXPAYER INFORMATION: Taxpayer's Name: The Villas at Forest Park. LP Taxpayer's Mailing Address: 205 W Walnut St.. Suite 200. Springfield, MO 65806 Taxpayer's Phone Number: 4I7-447-6303 X117 Email: mwood@midamproperties.com PROPERTY INFORMATION: Parcel # ofthe Property: 10-6-23-3-2-65 Address of Property (ifd)Yerentfrom moi/ing address): 936 Arrow Wood Lane, Nixa, MO 65714 What is the current classification of the property? Agricultural XX Residential Commercial Mixed Use What is the market value set by the Assessor? $879,200 What is the taxpayer's proposed market value? * 86 0,000 (Please include documentation to support yourvalue, such as comps, appraisal, insurance policies, etc.) Have you had an informal hearing with the Assessor? Yes REASON FOR APPEAL: Valuation (The value placed on the property by the Assessor is incorrect) Discrim\nation (The property is assessed at a ratio greaterthan the average for the County) Mis-graded Agricultural Land (The property is not in the correct agricultural productivity grade) Misclassification -The proper classification of this property should be: Residential Commercial Agricultural Charitable Purposes Exemption - The property should be exempt because it is being used for: Religious Purposes Educational Purposes Charitable Purposes XX Otherbasisforappeal (explain): See a#achid lejAu- 04- €% 0ano*ion PLEASE ATTACH ANY DOCUMENTATION YOU DESIRE THE BOARD TO CONSIDER Taxpayer's Signature al*0*07 }(all , Date: 06/18/2019 Thomas J Carlson 1 t CHRISTIAN COUNTY BOARD OF EQUALIZATION AGENT AUTHORIZATION FORM Authorization is hereby given for Thomas J Carlson & Marie A. Wood to act on the owner(s) behalf as agent in the appeal of the assessment of the properly or properties listed below, located in Christian County and owned by the undersigned. The agent is given full authority to handle all malters relative to the appeal ofthe assessment for tile tax year and to represent the undersigned, with the assistance o f legal counsel, if necessary, be fore the Board o f Equalization. Owner's Name: Villas at Forest Park LP Thomas J Carlosn, Partner Owner's Mailing Address: 205 W Walnut St., Suite 200 Springfield, MO 65806 Owner's Telephone Number: 417-447-6303 x117 Property Parcel Number(s) OR Property Address Personal Property Account Number(s) (Street Address, City) 10-6-23-3-2-65 936 Arrow Wood Lane (Additional Properties may be listed on the back) Owner's Signature: '16444. Print Owner's Signature: Thomas J Carllon Date: 06/18/2019 - 2019 Real Estate Value Change Notice for more info. Reason for Value Change: See back Christian County Assessor 2019 Reassessment 100 W. Church Street Rm 301 Ozark, Missouri 65721-6901 Deadline for Appeal Informal Hearing ............ ...May 31, 2019 VALUE CHANGE NOTICE -NOT A TAX BILL Formal Hearing (BOE): . . . June 28 2019 IMPORTANT DEADLINES INSIDE PROPERTY LOCATION & VALUE The Villas at Forest Park Carlson-Gardner Prop Parcel Number: 10-6-23-3-2-65 205 W. Walnut St Suite 200 JUN 1 4 2019 U Property Location: 936 Arrow Wood Ln Springfield, Mo. 65806 BY: ....................... Current Appraised Value: 879,200 Current Assessed Value: 167,050 Taxing Districts: School: 2 Junior College: 2 Fire: 2 Dear Property Owner, Road: 0 Ambulance: 1 City: 2 The real estate you own in Christian County Missouri, listed above, has increased in value, This letter is to notify you that changes in real estate values can affect property taxes which are due Dec. 31st. If you agree with the value above, then you do not need to respond to this notice. If you disagree with the value, or if you have other questions regarding this notice, please follow the instructions in the last paragraph below. Why did your property value increase? Real estate values (market values) change over time, even if no improvements are made to the property. If no specific reason is listed above, see common reasons provided on back. IMPORTANT: A property value Increase does not necessarily mean that your taxes will go up. Tax rates are set in September of each year by the local taxing entities: School districts, Fire Departments, Road & Bridge districts, Ambulance districts, etc. These taxing entities set their own budgets which determine how much tax money needs to be collected. NOTE·. The Assessor determines the VALUE only; the taxing entities determine the TAX RATES. If you feel that your taxes are too high, then you should involve yourself in the budget process of the taxing entities listed above, and make your voice heard at their budget meetings. RESPONDING TO THIS NOTICE: If you believe that the appraised value shown is not correct, and you have recent documentation to back up your claim, then you may challenge the value by contacting the Assessor's office for an informal hearing. Most questions or concerns can be resolved during the informal hearing process, but if yours cannot, formal appeal options are available. (See back for detai/s). Real Estate Department: (417) 582-4310 Office Hours 8:30 a.m.-4:00 p.m., Monday-Friday. assessor@christiancountymo.gov PROPERTY . LOT 82 FOREST PARK PH 3 DESCRIPTION May be abbreviated '"'1RESIDENTIAL ' AGRICULTURAL ' ' COMMERCIAL _ -TOTAL -- 3 PREVIOUS APPRAISED VALUE 872,600 0 0 872,600 RESIDENTIAL AGRICULTURAL ·; COMMERCIAL - I - TOTAL APPRAISED VALUE 2019 879,200 0 0 879,200 *ASSESSED VALUE 2019 167,050 0 0 167,050 *See back for explanation of assessed value. CHR!2-114 (3/18) CHRISTIAN COUNTY COLLECTOR 155• TED NICHOLS COLLECTOR 100 WEST CHURCH ST ROOM 101 TAX STATEMENT OZARK, MO 65721 .0 (417)582-4330 2018 REAL PROPERTY r,€g PAY TAXES/PRINT RECEIPTS ONLINE at: www.christiancountycotlector. com 28651 THE VILLAS AT FOREST PARK LP CARLSON-GARDNER PROP 1730 E REPUBLIC RD SUITE F Tax District Levy per $100 Total Tax SPRINGFIELD MO 65804 STATE 0.0300 49.74 COUNTY REVENUE 0.0620 102.79 LIBRARY 0.2009 333.07 HEALTH 0.0444 73.61 PARCEL ID#: 10-0.6-23-003.002·065.000 SEN. BILL 40 BOARD 0.0799 132.47 SEC, TWN, RNG: 23-27-22 SEN.CITZ.SERV. 0.0500 82.90 ACRES: 5.14 NIXA SCHOOL 4.2896 7,111.73 DEUNQ YEARS: NIXA CITY 0.3286 544.79 MIXA FIRE DIST. 0.7338 1,216.57 SITUS ADDRESS: 936 ARROWWOODIN AMBULANCE DIST. 0.1324 219.61 JUNIOR COLLEGE 0.2023 335.39 LOT82 FOREST PARK PH 3 SUBTOTALS Residential 165,790 Agricultural 0 Commerdal ,----2 TOTAL VALUATION ( 165,790 Methods of Payment \<) . Online • In Office ' By Phone 1-800-652-0405 follow prompts • Mail Use County Number 12 when prompted • Drop Box PIN for telephone payment: 21814121 Debit & Credit card5, cash, check & money order are accepted forms of payment. A fes is reflected in the card usage, il is not retained by the Colleclor or County. All Taxes are due cn or before December 318t. Taxes are daunquent after December 31st. r Failure to receive a tax statement does not exempt you from paying taxes when due. .-0 It is the taxpayer's obligation to see that their property is correct on statement. Total Due: < 10,202.57 Non·clearance of payment voids receipt. We cannot accept incorrect or partial payments. Return bottom portion with payment 2018 CHRISTIAN COUNTY REAL ESTATE STATEMENT MAKE CHECKS PAYABLE TO Ted Nichols, COLLECTOR THE VILLAS AT FOREST PARK LP Pay this total prior to January 1, 2019 : 10,202.57 CARLSON-GARDNER PROP 1730 E REPUBLIC RD SUITE F 2019 PAYMENT SCHEDULE SPRINGFIELD MO 65804 After December 31st, Pay With Penalty and Interest as follows: JAN 11,343.22 JUL 12,688.89 FEB 11,565.63 AUG 12,911.30 MAR 11,799.23 SEP 13,133.72 APR 12,021.63 OCT 13,133.72 MAY 12,244.05 NOV 13,133.72 ... 10-0.6-23-003-002-065.000"- JUN 12,466.46 DEC 13,133.72