Valuation Issues Team Minutes
Minutes of the April 13, 2005 Meeting
Attendees: Jeff Jordan (facilitator), Dave Hastings, George Michaud, Mario Arevalo, Rosalie Fahey, Sheryl Klewicki, Tara Hoffman, Reesa Guarino (recorder)
Consultants:Mark Twentyman, John Bonanno, Chuck Aviza
New team members were introduced, Tara Hoffman and Sheryl Klewicki. Matt Riordan is also a new member, however, unable to attend this meeting. Past team activity was covered, the agenda was approved and the October 2001 team charter was passed out for updating. Comments on the charter were minor. The charter will be updated by Jeff Jordan. A prior issue on Marshall Swift/ Boeckh was discussed and it was noted that updated cost indices will continue from MS/B and that ORPS will be meeting shortly with MS/B staff. MS/B desires to work with ORPS and other MS/B national clients in somewhat similar situations to develop a "common denominator" for former Boeckh users.
In the interests of sharing information, Jeff Jordan and Chuck Aviza led a discussion and showed the ORPS Power Point presentation, "Ulster County Commercial Market Analysis". As mentioned, in many situations this trending methodology is applicable to a municipality where there are a significant number of non- residential Class B properties and there is an abundance of income data on various industries such as retail, apartment, office, warehouse, hotel, etc. The income approach is a new focus comparing a per unit value of an industry model from one year to the following. The Ulster County project included significant income and economic data contributions by the county director and assessors with ORPS. This collaborative effort was the key to success. Several national and regional copyrighted publications were discussed along with various websites, which assisted in processing elements of the income approach. Discussed were Korpacz, IREM Apartment and Office Income & Expense, Trends in the Hotel Industry, Dollars & Cents of Shopping Centers, Loopnet, Realtyrates.com, CB Richard Ellis, and local sources. The need for a county central library was touched upon. If there is a strong interest for trending of this type, the consensus is that procedures need to be developed to include resources identified, municipal selection criteria (methodology may not work in all areas due to lack of data, or must meet a threshold minimum number or value percentage of Class B properties to the roll), building a market economic database by the local assessment community, developing guidelines, and extensive training. The program may take at least a year to fully implement. The program should concentrate in areas where there is the most "bang for the buck".
Regarding agriculture, Mark Twentyman reported out on a 2600 cow farm he recently appraised and some interesting side notes. There was a need to apply national level comparable sales. Data is limited on agriculture valuation. The income approach is a highly valid technique. There should be caution on using farm comparable sales in a hot market considering current use versus highest use. Cornell University and Farm Credit publish guidebooks on farm valuation.
John Bonanno from ORPS presented a slide show on the GAR/Saratoga County Survey Project, for informational purposes. Best practices that resulted were discussed. John stressed the importance of data sharing among assessors. There is still a need for individual property value review regardless of whether the GAR method or ORPS V4 is used.
A wrap-up followed The team will plan on meeting a minimum of three times a year with the next meeting in late summer.