July 13, 2011

Antelope County Board of Equalization

Neligh, Nebraska

 

The Antelope County Board of Supervisor’s convened as a County Board of Equalization on Wednesday July 13, 2011 at 9:00 AM in the County Supervisor’s room, Antelope County Courthouse annex, Neligh, Nebraska.  Meeting called to order by Chairman Schwager with the following board members responding to roll call: Bolling, Brandt, Kerkman, Baker, Williby, Henery and Schwager.  Antelope County Assessor Heather McWhorter and Deputy County Assessor Kelly Mueller were also present.  Chairman Schwager stated that the open meeting laws are posted on the east wall of the Supervisor’s room with more copies available at the County Clerk’s office.  

 

Notice of the meeting was given in advance thereof by publication in the four county newspapers, legal newspapers printed and in general circulation in Antelope County, Nebraska as shown by proof of publication filed in the County Clerk’s office.  Agenda for said meeting was sent to all members of the County Board of Supervisor’s.

 

Antelope County Assessor Heather McWhorter entered into the record on the part of the county the 2011 Report and Opinions from Property Assessment Division; Antelope County’s “what if” program; Antelope County’s GIS information, Antelope County’s TerraScan information and Antelope County’s sales file.

 

The following are the names of the persons who filed a property valuation protest, the parcel number and the action of the County Board of Equalization. 

 

Dana Sheridan                                       Dana Sheridan was present for protest.

Parcel number                                       000045200

Protest                                                  Reason/Reasons for protest Neb. Rev. Stat. 77-1502(2) is exorbitant increase which requires further explanation to answers requested this date.  Also proven record of decrease in home values nationwide.  This is a formal request for freedom of information data concerning all aspects and itemization of our property.  My request is for a written and mailed answer to the following questions I have in this matter of my concern: 1.  Who is the current Assessor?  2.  Who are members of the (names) Antelope County Board of Supervisors.  3.  Who is responsible for the recommendation to increase valuation on our property.  Specifically who “looked at said property and made the “suggestion” or order to increase it?”  Please note that a general “the board” is not specific enough.  I need to know the name of the person who did this, as I need to address that person in this regard.  4.  Please itemize all aspects of this evaluation.  5.  May I have a copy of “the minutes” of my 2010 appeal hearing before the Antelope County Board of Supervisors or Board of Equalization specifically and also a (writing unclear) by board and office personnel concerning that appeal and recommendations made as a result.  Also by whom were recommendations made, by name (?).  6. If there is a difference between the Antelope Board of Supervisors and Antelope Board of Equalization then I also request to know the names of both as my appeal was heard by “Equalization”.  Please mail me answers to all the above questions within 10 business days.  Also note that this serves as my written protest of your 2011 assessment.

County Assessor’s recommendation        Mrs. Sheridan came in the office and talked to Gene about increase in value.  At that time, she filed her protest and requested information as well as a phone call from the Assessor.  I returned the call to Mrs. Sheridan.  She requested a 2010 property record card for comparison.  I attempted to explain to her that her increase was discussed during her 2010 protest, and in addition we received a building permit for a shed as well.  She denied filling out a permit.  I explained to her that according to the market area sales her value should actually be higher.  She requested that I raise the value then; I told her that the values were set for 2011 and no changes would be made.  She ended the phone call by stating that I would “regret this!”  Kelly mailed Mrs. Sheridan a printout of all Supervisors/Board of Equalization members, as well as a property record card, and historical files per her request.  Recommend no change in value due to property is valued uniformly and proportionately with like properties.

County Board action                              Protest reviewed with county assessor and protestor.  No evidence submitted by protestor to support why parcel should be lowered.  Motion by Kerkman, seconded by Baker to accept the county assessor’s recommendation of no change due to property is valued uniformly and proportionately with like properties.  Those voting aye: Bolling, Brandt, Henery, Kerkman, Baker, Williby and Schwager.  Nays none.  Motion carried.

 

John Fuchtman                                      John Fuchtman was not present for protest.

Parcel number                                       000398700

Protest                                                  Land – 30 acres too wet to farm – waste.

County Assessor’s recommendation        Added 30 acres of waste, reduced irrigation by 30 acres - John agreed – will not attend protest.  Lowered land value to 241,790.

County Board action                              Protest reviewed with county assessor.  Motion by Henery, seconded by Brandt to accept the county assessor’s recommendation to add 30 acres of waste and reduce the land value to 241,790.  Those voting aye: Brandt, Henery, Kerkman, Baker, Williby, Bolling and Schwager.  Nays none.  Motion carried.

 

Brett M. Morrison                                 Brett Morrison was not present for protest.

Parcel number                                       000610101

Protest                                                  While I think it’s important to point out that we don’t necessarily subscribe to the conspiracy theory that says that the State, dominated by Lincoln and Omaha politicians and programs, is unfairly trying to suck more money out of the rural areas by imposing the state wide use of a property valuation computer program issued by them, what I do want to say about the program is that, while it may be very accurate for computing valuations in high population areas, or even on farm ground in rural areas for which there have been several recent sales of similar farm ground, it doesn’t appear to be at all accurate in adjusting valuations on buildings in very rural areas.  Even residential buildings appear to be over-valued in our smaller towns and rural areas, but the commercial buildings look to be the most poorly adjusted for location.  Sales opportunities for our small town and rural houses and commercial buildings are few and far between.  The growth in our rural areas, unfortunately, is negative in nearly all respects, with the exception of the recent upturn in ag returns due to high grain prices, and the rally in production farm ground prices that resulted but otherwise, our rural communities have suffered great devaluations for decades now, and that is reflected in the selling prices of homes and even more greatly in our commercial buildings.  While the State’s computer program claims to adjust for location, it is obvious that it isn’t adjusting appropriately.  And that’s exactly why our county needs our local Board of Equalization.  While the exact designation used to determine this new valuation on these specific buildings above may also be brought into question, the main problem is that the “per square foot value” assigned by the computer program used is far too high no matter what designation is entered for our very rural area of Nebraska, and our State’s very rural location compared to national population centers.  Morrison family members grow popcorn and dry edible beans and bring them to our own family farmstead base to store these crops.  We also, then, clean this grain and bag it.  The vast majority of the beans are simply bagged into bulk (not retail) bags and then shipped away to other companies that either (1) package into smaller retail size packages or (2) cook and “can” the beans for retail distribution.  A very small percentage of what we do entails packaging product for retail, in either popcorn or dry edible beans.  In the buildings specifically in question here, no small pack for retail distribution is done at all.  I make this argument in reference to the “use” designation for the purposes of your computer program, however, again, no matter what designation is used, it appears as though the resulting valuation will be far higher than is accurate.  If these buildings were sold today, I believe there could be two potential buyers: (1) Neighboring farmers that wished to use the buildings for equipment storage, or (2) Another competing dry edible bean business or similar specialty grain company.  The buildings and processing facilities are far too small and inefficient for being utilized as a commercial corn or soybean elevator and they aren’t located on rail.  A farmer, if buying one or both of these buildings for farm equipment storage, would have to remove some of the inconvenient features of these buildings and their contents in order to use them as equipment storage.  That could cost thousands.  I believe that if I were forced to sell, one of the buildings might bring $100,000 and the other might never get a bid for use as farm storage because there is too much in the way.  As for a dry bean business competitor buying us out, I’m well connected nationally, and the few businesses that have sold, have sold for nearly nothing.  Worse still is that the number of acres of dry beans grown in our immediate area that deliver to our facilities is very small, and are almost exclusively represented by those sewn by the Morrison Farms family members, so I can’t even think of a competitor that would even consider buying our facilities for any price.  While I do bring in beans from grower’s several states away, we do it mainly to have enough volume to justify our facilities and payroll and in order to be large enough to play the game on the marketing end.  But, again, we’re not located on rail, and it’s a very difficult and costly undertaking to say the least.  If a valuation is based on the amount a property could be expected bring if sold, in all honesty, I think my requested $450,000 figure is probably even a couple hundred thousand dollars high.  I would love to be surprised, but I do believe that if I quit tomorrow and threw the keys at my banker, these buildings would possibly never sell.  If they did, it would be for a very modest amount.  And that is what we need our local Board of Equalization to determine and set the State straight.  Build ConAgra a headquarters in downtown Omaha and give them free taxes for years and by contrast, over tax the original residents of this State and the families that homesteaded here right?  Or not?  No, I’m not asking you to make a political statement, although I wouldn’t mind if you did.  I’m really only asking that you take a hard look at what you really think someone…anyone… might offer me for these buildings that aren’t even as close to a work force or services such as schools and restaurants as the old trailer factory building that was located right on a highway, right in the town of Neligh.  And how long did it take to find a buyer for that?  And what price did it eventually bring after sitting empty and deteriorating for years?  Thank you for considering my request.

County Assessor’s recommendation        Current assessed value plus additional amount for omitted bins; total of $1,073,330 ($1,053,330 imp)

County Board action                              Protest reviewed with the county assessor.  No evidence submitted by protestor to prove why valuation should be lowered.  Motion by Bolling, seconded by Kerkman to accept the county assessor’s recommendation to add the omitted bins and increase the improvement/building value to 1,053,330.  Those voting aye: Henery, Kerkman, Baker, Williby, Bolling, Brandt and Schwager.  Nays none.  Motion carried.

 

Frank C. Morrison                                 Frank C. Morrison was not present for protest.

Parcel number                                       000610000

Protest                                                  The most alarming thing about this property valuation, is that without added improvements, we’re currently looking at a valuation that is not 25% higher, not 30% higher, not that has “doubled”, but that has more than tripled in one year.  The second most alarming thing is the actual valuation which we firmly believe far exceeds any reasonable or logical re-sale for the buildings.  These buildings, while they are relatively large, clear span, steel buildings, are not insulated, are not located anywhere near any population center.  They are not located on or near rail, or even any paved roads, for that matter.  In the winter time and after a rain, they are nearly inaccessible except by farm tractor.  These buildings were originally built, and then added onto, mainly for ear corn storage for popcorn, otherwise known as specialized grain storage.  As the ear corn harvesting became more and more unaffordable and less necessary due to better hybrids and better combines, etc, the buildings have been relatively unused except for the storage of tractors, implements, and other such farm equipment.  We have, a few years ago, used one to pile shelled popcorn on the floor as over-run to our bin storage, and one stores some wagons and totes of another specialty crop with which we’re experimenting, so they are still occasionally used for harvested crops.  And we receive totes of treated edible bean seed into one prior to planting occasionally, but most accurately, they are “farm storage” buildings mostly for farm equipment.  Most importantly, due to the extremely rural location, without sewer, water, gas, phone, or other such services, and without anything but dirt trail roads near them, the likelihood that anyone would ever be interested in these buildings for any commercial purpose is highly unlikely.  The fact that the walls are not built to withstand the pressures of grain being piled against them, makes them undesirable as shelled grain storage buildings.  These shelters don’t even seal up since the multiple 30 or 40 foot openings don’t even have doors on them.  We firmly believe that the most likely use (and probably only realistic use) for these buildings, would be for non-insulated farm equipment storage by neighboring farmers, which is all we are really using them for today.  These buildings cost less, even today, than currently valuated under the new, protested valuation, and it would be hard to imagine anyone offering more than $100,000 for either of these side by side buildings as a used, though not terribly old, building in a far less than ideal location.  Thank you for considering our request.  

County Assessor’s recommendation        Upon reviewing your protest request, I have determined that the two buildings should be classified as steel utility buildings, rather than grain storage.  Due to the cost update in farm buildings for 2011, the value will still increase to $395,520.  However, this is a $388,140 decrease from your previous 2011 assessment.  If you are satisfied with this assessment, please contact the County Clerk’s office and they will no longer schedule a protest hearing with the Board of Equalization.  If I can be of additional assistance, please let me know.  Changed use to steel utility building.  Recommend $395,520 for improvements.

County Board action                              Protest reviewed with the county assessor.  Motion by Williby, seconded by Henery to accept the county assessor’s recommendation to change use to steel utility building and lower improvement value to 395,520.  Those voting aye: Kerkman, Baker, Williby, Bolling, Brandt, Henery and Schwager.  Nays none.  Motion carried.

 

Wade Pitzer                                          Wade Pitzer was present for protest.

Parcel number                                       000432801

Protest                                                  Comparing the included comps the cost per sq ft ranges from 69.68 to 77.87 ours is currently 101.33 we are asking for an adjustment to 70.00 per sq ft to be consistent with others.

County Assessor’s recommendation        Mr. Pitzer’s reason for requested valuation change refers to the price per square foot cost of his residence.  As I explained to Mr. Pitzer in the Assessor’s office June 30, the price/sq ft is valued according to Marshall & Swift’s appraisal program.  This is utilized by Assessor’s and appraisers across the country as the standard.  The base square footage is determined by the total square feet and the quality of the house.  Additional adjustments are made on an individual basis for roof type, heating & cooling, number of plumbing fixtures over base (standard # for quality of home), and basement finish (minimal finish, partially finished, completely finished).  This provides you with an adjusted structure cost.  In addition the value for any improvements, such as garage, porches, decks, etc. are added then the entire amount is divided by the total square feet for the final price/sq ft cost.  This formula for valuing the replacement cost of the home is used equally on all residences.  There is no ability to adjust the value/sq ft based on our opinion.  They are all valued equally.  The only variables are the improvements and physical characteristics that are individual to the home.  I verified that we had all information correct with Mr. Pitzer.  He agreed that the home was above average quality, has central heat/air, has the correct square footage finished in the basement; there is an attached garage, outside basement entrance, 2 wood decks, and 3 slab porches.  With all of the information entered correctly, there is nothing that can be done to correct the total square foot cost.  It simply is what it is supposed to be.  I have included residential cost sheets for similar residences to verify that all are valued equally.  I have also included sales of similar properties to verify the value of the home.  I explained to Mr. Pitzer the increase in his value for 2011 was due to omitted information.  Previously, his basement has not been valued as totally finished, which it is.  My recommendation is no change to the current assessed value.

County Board action                              Protest reviewed with county assessor and protestor.  Mr. Pitzer did hand out several properties that he felt his home should be compared with but did not submit them to the County Clerk as evidence.  Motion by Kerkman, seconded by Henery to accept the county assessor’s recommendation of no change in assessment due to property is valued uniformly and proportionately with like properties.  Those voting aye: Baker, Bolling, Henery, Kerkman and Schwager.  Nays: Williby and Brandt.  Motion carried.

 

Motion by Williby, seconded by Brandt to adjourn.  Those voting aye: Bolling, Brandt, Henery, Kerkman, Baker, Williby

and Schwager.  Nays none.  Motion carried.

 

Meeting adjourned at 10:15 AM.                        

 

ANTELOPE COUNTY BOARD OF EQUALIZATION