KAY BROWN 5(, Eommission t'*tfil --OF CHRISTIAN COUNTY 100 W. CHURCH ROOM 304 · OZARK, MO 65721 Phone: 417-582-4340 • Fax: 417-581-8331 kaybrown@christiancountymo.gov July 1, 2019 The Villas At Forest Park LP c/o Carlson-Gardner Prop 205 West Walnut Street, Suite 200 Springfield, Missouri 65806 RE: Taxpayer's Name: The Villas At Forest Park LP c/o Carlson-Gardner Property Situs Address: The Villas At Forest Park; 936 Arrow Wood Lane, Nixa, Missouri 65714 Parcel Number: 10-6-23-3-2-65 Classification: Multi-Family Residential Assessofs Appraised and Assessed Values: $ 870,800/$165,450 Board's Appraised and Assessed Values: $ 747,919/$161,105 The Board of Equalization, after consideration of the information presented at the hearing in your appeal, voted to lower the assessment on Monday, July 1, 2019. You have the right to file an appeal with the State Tax Commission (STC). If you choose to appeal, you may download the appeal form (Complaint for Review of Assessment) from the STC web site: Http:Uwww.stc.mo.gov. Instructions on completing the form and on handling your appeal are also available on the website. The completed form must be postmarked no later than September 30, 2018, or 30 days after the date of this letter, whichever is later. Sincerely, 4 (3- Kay Brown County Clerk, Secretary of the Board of Equalization CHRISTIAN COUNTY BOARD OF EQUAI.IZATION AGENT AUTHORIZATION FORM Authorization is hereby given thr Thomas J Carlson & Marie A. Wood -- to act on the owner(s) beha[Fas agent in the appeal of the assessment of the property or properties listed btelow, located iii Christian County and owned by th© undersigned. Thc agent is given ful! atill:ority to handle all malters relative to the appeal ofthe assessment for the tax year and to reprcsent the undersigned, with the assistance of legal counsel, if necessary, before the Bom·d of Equali·zation. Owner's Name: Villas at Forest.Pa® LE. Itpmas f Carlpsti, Partner Owner's Mailing Address: _205 W Walnut St., Suite 200 . Springfield, MO 65806 Owner's Telephone Number: 41?-44226303.x!1?. Properly Parcel Number(s) OR Properly Address Ikrsogn.1 -Fru-PEm Accqimt Number(sl- _(Street Address, City) 20*33:3-2-65 936-Arrow 0960iI#Be_. (Addwiona! Properties may be listed on the hack) Ouner's Signature: - ¢tfff€03 Print Owner's Signature: Thomas J Cqr.Won Date: 06/18/2019 . 1 17\Yl - t rr'. det' 1 1 PROPERTYASSESSMENTAPPEALFORM CHRISTIAN COUNTY BOARD OF EQUALIZATION TAXPAYER INFORMATION: Taxpayer's Name: The Villas at Forest Park. T.P Taxpayer's Mailing Address: 205 W Walnut St., Suite 200. Springfield, MO 65806 Taxpayer's Phone Number: 417- 447-6303 X 1 17 Email: mwood@midamproperties.coin PROPERTY INFORMATION: Parcel # or the Property: 10-6-23-3-2-65 Address of Property (if differentfrom mailing 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'sproposed market value? $ 36 0,000 (Please include documentation to support your value, such as comps, appraisal, insurance policies, etc.) Have you had an informal hearingwith the Assessor? Yes REASON FOR APPEAL: Valumion (The value placed on the property by the Assessor is incorrect) Discrimination (The property is assessed at a ratio greater than the overage for the County) Mis-graded Agricultural \.and {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 propertyshould be exempt because it is being used for: Religious Purposes Educationat Purposes Charitable Purposes XX Other basis for appeal (explain): S€6 02602Aad i el\tr 04' € * plonoM ovi PLEASE ATTACH ANY DOCUMENTATION YOU DESIRE THE BOARD TO CONSIDER Taxpayer's Signature 31*194«27 K-Glfi-01 / Date: 06/18/2019 Thomas J Carlson '1 -- 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 of the property should be based upon its present condition. Let me know ifyou are interested in discussing this before the BOE hearing. 24,---«2 Thomas J. Carlson Y TJC:maw Enc. THOMAS J. CARLSON AlTORNEY AT LAW 205 W. WALNUT, SUITE 200 SPRINc}FlE!.D, MissoURI 65806-2115 (417)447-4621 FAX (417)447-6145 June 22,2019 Christian County Board of Equalization C/o Christian County Clerk's Office 100 W. Church St. Ozark, MO 65721-6901 Re: Appeal of Assessment of The Villas at Forest Park Parcel # 10-6-23-3-2-65 To the Board of Equalization and Danny Gray, Assessor: My assistant explained to me how you arrived at your estimate of the value of the 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 fi·om Mark Gardner who has been a low-income housing developer for the last 20 years. 1 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 sold it for more to someone else ifhe 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 1 know what these properties really are worth. Another point is that you felt that the expenses were too high as a percentage of the gr·oss revenues. 1 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 Seturity. 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 low-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 continite to lose money for the next 1 0 years. You felt that some items are too expensive, as 1 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 perniit 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 if that were possible, its vallie 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 of these 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 projeqlcoutd cost the county much more in lost tax revenue if other developers request a reassessinent. I would suggest one oftwo approaches: Agree that the property is appraised at $360,000 for this year. Next year after a year's operations, you are free to reapprnise it and if operations have improved, then I would agree to a higher value. Alternatively, I would agree to a smaller number titan 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 if the 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. .--Il: 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 CIass A property in an urban area like Chicago, but not iii 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 tile 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. 1 CHRISTIAN COUNTY COLLECTOR age* TED NICHOLS COLLECTOR fy·..- - >4 100 WEST CHURCH ST ROOM 101 TAX STATEMENT 40*.w - OZARK. r.tO 65721 A. 0140[ 12)1 (·117) 582·43301 2018 REAL PROPERTY ty --/3-.--p-2.1 13% ·iouba*&77 %42143#A" PAY TAXES/PRINT RECEIPTS ONLINE at www.christiancountycollector.com 28651 THE VILLAS AT FOREST PARK LP CARLSON-GARDNER PROP Tax DIstrict Lovy par $100 Total Tax 1730 E REPUBLIC RD SUITE F SPRINGFIELD MO 65804 STATE 0.0300 49.74 COUNTY REVENUE 0.0520 102.79 LIBRARY 0.1000 333.07 I· HEALTH 0.0444 73.61 SEN. BILL 40 BOARD 0.0799 132,47 PARCEL ID#: 10-0.6-23-003-002-065,000 SEN.CITZ.GERV. 0.0500 02.90 SEC, TWN, RNG: 23-27-22 NIXiA SCHOOL 1.2095 7,111.73 ACRES: 5,14 DELINQ YEARS NIa CITY 0.3286 544.79 NI FIRE [MST. 0.7338 1,218.57 SITUS ADDRESS: 935ARROWWOOD LN AMBULANCE DIST. 0.1324 219.61 JUNIOR COLLEGE 0.2023 335.39 LOT 82 FOREST PARK Pli 3 SUBTOTALS Residential 165.790 Agricultural 0 Commercial - TOTAL VALUATION 165,790-f Methods of Payment \- j • Online ' By Phone 1-800-652-0405 follow prompts • In Office Use County Nuniber 12 when prompted • Mail PIN for telephone payment: 21814121 • Drop Box Debit & Credit cards, cash, chock & money order are accepted forms 01 payment. A fea Is rollectod in the card Usage. it Is not retained by tho Collector or Ccunty. All Taxes ara due on or be:om Decomberllst. Taxos are dalinquent alter Decembaralst. Failuro to fecelve a tax statement docs not exempt you from paying taxes when duo. I t is the taxpa yets ob liga tion tc s e e that their properly 15 corro ct on sta tement . Total Due: 10,202.57 Non·clearance of payment volds receipt. We cannot accept incorrect or partial payments. Return bottom portion with payment 2018 CHRISTIAN COUNTY REAL ESTATE STATEMENT MAKE CHECKS PAYABLE TO Ted Nicho!s, COLLECTOR THE VILLAS AT FOREST PARK LP Pay this total prior to Januafy 1,2019 : 10.202.57 CARLSON-GARDNER PROP 2019 PAYMENT SCHEDULE 1730 E REPUBLIC RD SUITE F SPRINGFIELD MO 65804 Alter 0ecember 31 st, Pay With Penalty and Interest as fo!lows: JAN 11,343.22 JUL 12,688.89 FEB 11,565.63 AUG 12,911.30 MAR 11,799.23 SEP 13,133.72 1 .'8'.1 APR 12,021.63 OCT 13,133.72 ' 1 110 1 1 MAY · 12,244.05 NOV 13,133.72 10-0.6-23-003-002-065,000*·' JUN 12,466.46 DEC 13,133.72 2019 Real Estate Value Change Notice '* Reason for Value Change: See back for mere info Christian County Assessor r=fet. 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 Parcel Number: 10-6-23-3-2-65 Carlson-Gardner Prop 205 W. Walnut St Suite 200 JUN 1 4 2019 Ad Property Location: 936 Arrow Wood Ln Springfield, Mo. 65806 Current Appraised Value: 879,200 -131[:. Current Assessed Value: 167,050 Taxing Districts: School: 2 Juntor College: 2 Fire: 2 Dear Properly Owner, Road:. 0 Ambutance: 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 aNect property taxes which are due Dec, 31 st. 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 properly value increase? Real estate values (market values) change over time, even if no improvements are made to the property. It no specific reason Is listed above, seo 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 RAIEE. If you teel that your taxes are too hicth, then you should involve yourself In the budget process of the taxing entities listed above, and make your volce 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 chaltenge the value by contacting the Assessor•s oftice 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. mee back for details). Real Estate Department: (417) 582-4310 Office Hours 8:30 a,m,-4:00 p,m., Mondayffiday. assessor@christiancountymo.gov 1 PROPERTY LOT 82 FOREST PARK PH 3 DESCRIPTION May be abbreviated RESIDENTIAL AGRICULTURAL COMMERCIAL TOTAL PREVIOUS APPRAISED VALUE 872,600 0 0 872,600 RESIDENTIAL AGRICULTURAL COMRAERCIAL TOTAL 879,200 0 0 879,200 APPRAISED VALUE 2019 'ASSESSED VALUE 2019 167,050 0 - 0 167,050 •See back for explanation of assessed value. CHR12-114(3/18)