February 11, 2016

Mr. Couch

made a motion to nominate Mrs. Kaminski; seconded by Mr. Carbone; 5 yeas.

Mrs. Stringer

advised she had forms providing previous property information which she could submit if the Board wanted them.

Mr. Carbone

made a motion to approve the agenda and accept additional back-up: seconded by Mrs. Kamsinki; 5 yeas. — — = —— . _ February 11, 2016 - ANNOUNCEMENT. There were none.

Mr. Carbone

disclosed he knew two of the petitioners due to his position as County Commissioner but did not believe it would sway him either way.

Mrs. Kaminski

made a motion to accept the exhibits as read; seconded by Mr. Gren; 5 yeas. John Erbe stated the home had severe construction defects with substantial cracking. From the standpoint of value, Mr. Erbe advised they could not sell the home so essentially the value was zero. The cost to repair the damage was in the tens of thousands of dollars and they were in litigation with a local contractor. They had been instructed by their attorney that they could not make any repairs at this time, resulting in more cracking. Mr. Erbe said they were asking for an assessment decrease to $60,000 as based on the information they had provided their assessment could certainly not be higher than tast year's. Tammy Williams, Property Appraiser |, said the subject property was located in the Richland Estates Subdivision and was a 1,921 square foot residence with a 508 square foot attached garage. The property owners presented a structural damage report dated September 28, 2011, with a “cost to cure” of $20,670 for the tax year 2012-2013. The property owners presented a second/updated structural damage report dated January 25, 2013, along with a “cost to cure” for painting and stucco repair on the interior and exterior for an updated total “cost to cure” of $32,060. A further reduction to the quality of the home was applied in January, 2015, bringing the average quality home to a low quality home. At the owners’ request in December, 2015, the Assessor's Office met with them to go over the values. The Assessor's Office again recommended the presentation of a current “cost to cure" report. The owners supplied the Assessor's Office with a copy of their class action lawsuit, which was for mediation purposes only, not a current “cost to cure.” Without a current “cost to cure” report from a structural engineer the values could not be reduced any further by the Assessors Office.

Ms. Williams

stated the 2015/2016 taxable value total of $64,423 increased to $73,314 for the 2016-2017 fiscal year partially because of the improvement factor developed by the State. As per NRS 361.261, the State of Nevada provided the improvement factor every year and it was applied to all properties that were not in a reappraisal cycle. The Assessor's Office then analyzed the market every year and compared sales values to the RCNLD values. As long as the market was lower than the RCNLD valuation method the Assessor’s Office would use the market to reduce the values. Also, the 30% obsolescence reduction for the 2016-2017 fiscal year was less than the previous year of 40%.

Ms. Williams

advised the Assessor's Office did not offer a recommendation to the Board of Equalization as they had done everything in their power under the law to reduce the values on the property based on all the data provided.

Mrs. Erbe

stated they could not keep getting updated estimates for the same damages.

Mr. Gardner

asked if they were living in the residence. SS re oe © C) February 11, 2016 8B. John and Kathryn Erbe, APN 029-962-43-Cont'd.

Mr. Erbe

said yes. Mrs. Erbe added they did not allow anyone to be in the front room as it could fall at any given time and was unsafe.

Mr. Carbone

asked if there was a period of time when the taxes were going down on this property.

Ms. Dudenski

explained in the normal course of things the Erbes had gone to the Board of Equalization for many years since the house started crumbling. Since the Erbes went to the Board of Equalization that decision offset everything the Assessor had done.

Mr. Gardner

asked if Mr. Erbe had brought in another estimate of repairs if that would have lowered his value. Ms. Williams said they asked them to bring in a new cost to cure so they could further reduce what was new.

Ms. Dudenski

explained the problem was the Assessor's values did not stay locked and frozen because of a structural or other issue. If there was some sort of program from the State to allow them to freeze properties like this to keep them stagnant until they were repaired that would eliminate the problems the Assessor's Office was having with these types of properties. She said requesting the Erbes to bring paperwork in every year was a financial responsibility on them as it could be seen as preferential treatment to get their values lowered.

Mr. Carbone

asked if there was anything the Board could do to help them.

Ms. Dudenski

stated the only peopte in Richland Estates who had come forward were Mr. and Mrs. Erbe and their neighbor across the street. The neighbor withdrew her petition when the adjustments were made. The problem with Mr. and Mrs. Erbe was they feil into last year’s values that were established, as well as the improvement code factor applied and depreciation, which raised the value. Also, the obsolescence was 40% last year and this year it was 30%, so the property was falling into all the protocols even with the reduced value.

Mr. Sutton

advised if the petitioner submitted evidence it could be taken into consideration and the Board had the ability to make adjustments that were deemed equitable.

Mr. Carbone

made a motion to keep it at the $60,000 level.

Mr. Sutton

asked if the motion was for the overall taxable value reducing it from $73,000 to $60,000 total or for just the improvements. Mr. Carbone said it was total.

Mr. Couch

seconded the motion to keep it at the $60,000 level; 5 yeas. O © February 11, 2016 8C. Hafen Ranch Land Company, APN 045-131-48 The Petitioner was present and previously sworn. The Assessor's Office identified the property. The Clerk read the following exhibits into the record: Assessor's Exhibit 1: Subject Property Information; improved Sales; 5 Acre Land Analysis; NRS/NAC.

Mrs. Kaminski

made a motion to accept the exhibits as read; seconded by Mr. Gren; 5 yeas. Scott Sibley explained they filed the appeal because the value came out as $309,000 and they purchased this property 90 days ago for $150,000. The property was listed for several years with the last listing at $175,000. The property had been vacant for years and the structure on it was in pretty bad shape. They were asking that the vaiue be held at what they purchased the property for 90 days ago.

Ms. Dudenski

advised the subject property was purchased by the current owner on October 15, 2015, from Bank of America for $150,000 cash. Bank of America's repossession of this property was recorded on August 28, 2013, with a note balance of $374,268. The property had sat vacant since April, 2012, when the previous owner disconnected all electrica! service and left. Mr. Sibley, manager, stated to the Assessor's Office that the property had been damaged and vandalized. The Assessor's Office updated the appraisal record to reflect the 17,164 square foot building had been costed as a storage warehouse instead of a light manufacturing building. The property had also been approved for a medical marijuana cultivation and production facility at the September 15, 2015, Board of County Commissioners meeting. The taxable value stated on the petition of $318,711 had been reduced to the taxable value of $221,266. The Assessor's Office would reassess the property in the future and update the use upon completion of the cultivation facility. There was also a 1,701 square foot mobile home conversion on the property in addition to several conex storage boxes, sheds, a quonset building with an individual water system, septic system and electric pedestals. All improved sales provided easily supported the Assessor's Office value and it was the recommendation of the Assessor's Office to uphold the reduced taxable value of $221,266.

Mr. Gardner

noted NRS 361.227 stated the computed tax value of any property must not exceed its full cash value. It seemed to him if they paid $150,000 that was the full cash value.

Ms. Dudenski

said one sale did not set the trend. They had to use the whole market to reduce all of the properties fairly and property values were developed on replacement cost new less depreciation. © ‘@ February 11, 2016 8C. Hafen Ranch Land Company, APN 045-131-48-Cont'd.

Mrs. Kaminski

made a motion that the taxpayer had not presented sufficient evidence to indicate that the value established by the County Assessor was unjust or inequitable noting the taxable value had been reduced to $221,266 by the Assessor's Office. The petition was denied for Hafen Ranch Land Company based upon the above findings of fact and conclusions of law. The Nye County Assessor was instructed to certify the assessment roll of the County consistent with this decision; seconded by Mr. Gren: 5 yeas. 8A. Fred Alaee, APN G08-291-03 The Petitioner was present and sworn in. The Assessor's Office identified the property. The Clerk read the following exhibits into the record: Assessor's Exhibit 1: Summary; Subject Property Information; Improved Sales Map; Commercial Land Sales and Map; NRS/NAC. Petitioner's Exhibit A: A document entitled “Reasons That Subject Property Are Improperly Valued” with attached photographs.

Mrs. Kaminski

made a motion to accept the exhibits as stated; seconded by Mr. Carbone; 5 yeas.

Mr. Alaee

reviewed his exhibit. He described how the property was uninhabitable, unusable and unsellable due to damage caused by vandals. He stated his objection to his property being compared to property on Main Street in Tonopah and felt the value of the land should be reduced to $41,150 for a total taxable value of $57,230. Brenda Baker, Nye County Property Appraiser II, described the subject property as a 16,080 square foot building once used as a bowling center with a bar/lounge. The building had since been gutted and was currently being valued as a storage warehouse at .5 quality and no interior finish. A 55% reduction had been applied to the land due to the size of the parcel. The sales listed were good commercial sales located in Tonopah as all had similar building usage to the subject but with significantly less acreage. The subject property had been fairly adjusted for the quality of the bullding and the size and location of the parcel. Mr. Alaee was approved for a special use permit by the Nye County Board of County Commissioners on August 4, 2015, for a medical marijuana cultivation and production business. When construction for the new business was completed the building would be reassessed. It was the recommendation of the Assessor's Office to uphold the taxable value established of $187,529. February 11, 2016 8A. Fred Alaee, APN 008-291-03-Cont'd.

Mr. Gardner

stated one problem he had was he knew where this building was and it was safe to say that there was not another building like it in Tonopah. He wondered about the criteria used to determine salvage.

Ms. Baker

advised they had worked out that 55% was good and 45% was salvage.

Mr. Carbone

disclosed he had dealt with this gentleman before with the Board of County Commissioners. He again questioned the high level of taxes when the building was in such bad shape. He also wondered if the building would be knocked down and another built or if it would be used for the grow operations.

Mr. Alaee

advised this building would be used if he got the license, but he would have to improve it first. He was also not worried about the price of the building. He was just talking about the land value as there was no land sold in his area for that price.

Mrs. Kaminski

noted Mr. Alaee has had this property listed with a couple of realtors for $1.5 million.

Mrs. Kaminski

made a motion that the taxpayer had not presented sufficient evidence to indicate the value established by the Assessor was unjust or inequitable. The subject property was appraised at the proper value according with NRS 261.227 and the petition of Mr. Fred Alaee was denied based upon the above findings of fact and conclusions of law; seconded by Mr. Gren; 5 yeas.

Mr. Gren

made a motion to adjourn; seconded by Mr. Carbone; 5 yeas. APPROVED this__Q 3" day ATTESTED: of Wael 2016. Chair / Board of ant a Nye Coufty Clerk / Deputy