Sustainable Investments, LLC v. Marion County Assessor

CourtOregon Tax Court
DecidedFebruary 18, 2014
DocketTC-MD 130313C
StatusUnpublished

This text of Sustainable Investments, LLC v. Marion County Assessor (Sustainable Investments, LLC v. Marion County Assessor) is published on Counsel Stack Legal Research, covering Oregon Tax Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sustainable Investments, LLC v. Marion County Assessor, (Or. Super. Ct. 2014).

Opinion

IN THE OREGON TAX COURT MAGISTRATE DIVISION Property Tax

SUSTAINABLE INVESTMENTS, LLC, ) ) Plaintiff, ) TC-MD 130313C ) v. ) ) MARION COUNTY ASSESSOR, ) ) Defendant. ) FINAL DECISION

The court entered its Decision in the above-entitled matter on November 14, 2013. The

court did not receive a request for an award of costs and disbursements (TCR-MD 19) within 14

days after its Decision was entered. The court’s Final Decision incorporates its Decision without

change.

Plaintiff appeals the real market value of 127 lots identified as tax lots 1 through 146,

exclusive of tax lots 18, 24, 29, 30, 37, 38, 43, 44, 51, 52, 54 to 57, 76, 77, 92, and 137 (subject

property).1 (Ptf’s Compl at 2-4; Ptf’s Am Compl at 2-5.) The lots under appeal are located in

the Pringle Creek Community Subdivision in Salem, Oregon. The tax year at issue is 2012-13.

A trial was held in the Oregon Tax Court Mediation Center in Salem, Oregon, on

November 18, 2013. Gordon R. Hanna, attorney at law, appeared on behalf of Plaintiff. Scott A.

Norris, Assistant County Counsel, appeared on behalf of Defendant. Robb Witters, Senior

Residential Appraiser, testified on behalf of Defendant. Plaintiff did not present any witnesses.

1 The corresponding Assessor Accounts are R340975 through R340977 (tax lots 1-3), R341043 through R341056 (tax lots 4-17), R341058 through R341062 (tax lots 19–23), R340978 and R340979 (tax lots 25 and 26), R341064 and R341065 (tax lots 27 and 28), R340982 (tax lot 31), R341066 through R341070 (tax lots 32–36), R340984 (tax lot 39), R341072 through R341074 (tax lots 40-42), R341077 (tax lot 45), R341079 through R341083 (tax lots 46-50), R341086 (tax lot 53), R340988 through R340999 (tax lots 58-69), R341000 through R341005 (tax lots 70-75), R341008 through R341021 (tax lots 78-91), R341023 through R341035 (tax lots 93-105), R340941 through R340948 (tax lots 106-113), R341036 through R341042 (tax lots 114-120), R340949 through R340964 (tax lots 121-136), and R340966 through R340974 (tax lots 138-146). (Ptf’s Compl at 2-4; Ptf’s Am Compl at 2-6.)

FINAL DECISION TC-MD 130313C 1 Plaintiff’s Exhibits 1 to 11 were received without objection. Defendant’s Exhibit A was received

without objection. Both parties’ exhibits include appraisal reports.

Although some of the lots that comprise the subject property are developed, Plaintiff is

only challenging the real market values of the land, requesting all lots be valued at $10 per

square foot. (Ptf’s Hearing Memo at 1.) Plaintiff is seeking a reduction in total real market

value for the subject property from $9,969,720 to $3,814,770. (Ptf’s Am Compl at 3, 8.)

Defendant has asked the court to sustain the real market values found by the county board of

property tax appeals (board) for all but three tax lots: lots 103, 122, and 128, and that the real

market values of the on-site developments currently on the rolls for lots 39 and 40 be added to

the board’s real market value determinations for those two lots. (Def’s Ans at 2-3; Def’s Ex

A-i.)

I. STATEMENT OF FACTS

The subject property is part of an approximately 32 acre property, more than one third of

which is dedicated to common areas and green spaces. (Def’s Ex A-1; cf. Ptf’s Ex 3 at 7.) All

the lots at issue are single-family residential lots.2

///

2 The court determined that only single-family residential lots were at issue through analysis of the pleadings and evidence. The development is a mixture of residential and commercially zoned lots, and neither the Complaint nor Amended Complaint identify the zoning of the lots at issue. Plaintiff’s Exhibit 3 is an appraisal report prepared by Katherine Powell Banz (Banz) dated April 24, 2012. That appraisal presents a valuation estimate for 128 residential lots, five single-family residences, and three commercial lots. (Ptf’s Ex 3 at 1.) Plaintiff's Exhibit 4 is a valuation update prepared by Banz dated March 17, 2013, for Plaintiff’s appeal to the board. It indicates that “the original appraisal included 128 completed residential lots,” but that the new value estimate letter was an “amendment [that] focuses on the 127 single-family residential lots only.” (Ptf’s Ex 4 at 1.)

The report identifies the three commercial lots as lot numbers 29, 56, and 76. (Id. at 79.) While Banz’s appraisal report does not specifically provide a lot or account number for the multi-family residential lot, it does indicate that the size of the lot is 56,628 square feet. (Id. at 76.) Plaintiff's original Complaint lists all 146 lots in the subdivision and the only lot listed as similar in size is lot 137, with an indicated size of 56,396 square feet. (Ptf’s Compl at 4.) Plaintiff's original Complaint does not include value estimates for any of those four tax lots and the Amended Complaint does not list those accounts.

FINAL DECISION TC-MD 130313C 2 The subject property is part of a larger property previously owned by the state “which

spent the majority of the last century in State of Oregon ownership as a home for the

developmentally disabled under state care.” (Ptf’s Ex 3 at 6.) The site is described in Plaintiff’s

materials as the “Fairview” property, and was formerly operated as the Fairview Training Center.

(Id.; Def’s Ex A-47.)

“In April 2002 the entire Fairview site was purchased with an option agreement by Sustainable Fairview Associates LLC, a consortium of investors intent on developing the property with sustainable building standards. The reported purchase price was $12,450,000, which included 277.17 acres of land with a private water system with City backup capacity and 57 buildings constructed between 1908 and 1970 [that are] in various states of repair. * * *.

“* * * * *

“* * * [T]he north 32.13 acres * * * were purchased by Sustainable Investments, LLC on November 22, 2004 for a recorded consideration of $2,500,000 * * *.”

(Ptf’s Ex 3 at 7.) This appeal concerns those 32.13 acres.

The parties agree that the subject property is unique, described by Plaintiff in its Hearing

Memo to have been planned as “a model community with special sustainability features [that]

include narrow, winding streets to encourage walking and biking, special building restrictions

that promote sustainability, small lots and open spaces.” (Ptf’s Hearing Memo at 2.) “The site is

zoned FMU (Fairview Mixed-Use) by the City of Salem. The purpose of the FMU zone is to

implement the Salem Area Comprehensive Plan ‘Mixed-Use’ land use designation and to

encourage innovative planning that results in more mixed-use development with protection of

open spaces and natural features, energy conservation, architectural preservation, innovative

integration of park and school uses, affordable housing options, and mixed-income

neighborhoods.” (Ptf’s Ex 3 at 33.)

FINAL DECISION TC-MD 130313C 3 The subject property is known as the “Pringle Creek Community.” (See id. at 29.)

Consistent with the FMU zoning,

“Pringle Creek Community is a mixed-use project based on sustainable living principles. The project was created with a vision of creating a ‘village center’ using some of the existing Fairview buildings for small community- oriented businesses and workshops; community gardens; and a wide variety of single and a multi-family living opportunities.

“The * * * project includes a large amount of common area with trails and green space. It is the intent of the developer that the smaller lot sizes will be offset by the availability of ample common area green space and other community amenities.”

(Id.)

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Sustainable Investments, LLC v. Marion County Assessor, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sustainable-investments-llc-v-marion-county-assessor-ortc-2014.