County Court Land Transaction Records for Lot 26, Canren Addition. August 31, 2001 Louise Gerbitz deeded to Ellsworth County Economic Development Lots 23 and 26 in Canren addition. ************** Uniform Residential Appraisal Report. October 29, 2001, Frank Princ 101 Cedar Crest, Ellsworth, Kansas Total Estimated Cost New, $71,822. Indicated Value by Cost Approach, $63,112. (Lot 26 Canren Addition) Sale Price, $37,000; Price/Gross Liv. Area $30.28; Location, Average; Fee Simple; Site 7,650 sq.ft; View Typical; Design and Appeal, Ranch/Average; Quality of Construction, Average/Frame; Age, 12 Eff 10; Condition, Average to Good; Gross Living Area, 1222 sq.ft.; Room Count, 5 total, 2 bdms, 2 baths; Basement; Slab; Functional Utility; Average; H/C, Central; Energy Eff., Average; 1 car Attached; Stoop. The square foot adjustment was $7.50 per sq.ft. The comparable sales chosen were considered to be the best ones available at the present time, other could have been used but would have required more extensive adjustments. Indicated Value by Sales Comparison Approach was $45,000. Comparable No. 1, 501 Webb; Comparable No.2, 216 E. 6th; Comparable #3, 313 Kingsley. The function of the appraisal is to establish the current market value for internal decision making and mortgage lending purposes. The Income Approach wasn’t considered due to insufficient data. The Cost Approach lends support, but is considered to be the lease (sic) accurate due to difficulty in measuring depreciation in the Market. The Sales Comparison Approach was considered to be the most accurate as it shows the buyer/seller relationship in the market. No copy of the real estate sales contract was furnished to our firm. We estimate the market value, as defined, of the real property that is the subject of this report, as of October 20, 2001 Signed by Appraiser Shelly D. Whitmer; Supervisory Appraiser, Frank L. Princ November 5, 2001. ************************************************************************ On October 30, 2001, Ellsworth County Economic Development conveyed and warranted to Jerry L. Aday Lot 26 in Canren Addition of Ellsworth at 101 Cedar Crest Drive, for $1.00 and other good and valuable considerations. Jerry Aday requested an initial hearing with County Appraiser, Don Zvolanek, to lower the appraisal on the house and that meeting was held 19 December 2001. At that time the house was appraised at $62,500, and had received that appraisal for at least a year. A comparable house located behind the Aday house at 100 Honeysuckle Drive was appraised at $85,000. After removing $30,520 worth of market adjustments, not actual costs, to this neighboring house, the comparable price came to $54,480. Based on all the above information, Don Zvolanek reduced the appraisal value of the Aday house to $58,000. Jerry Aday submitted a letter on February 5, 2002 to the State Board of Tax Appeals, 915 SW Harrison, Topeka KS 66612-1505 which follows in its entirety. TO WHOM IT MAY CONCERN: I am submitting this letter to your office as appeal to the enclosed ruling pertaining to my residence located in Ellsworth County at 101 Cedar Crest, Ellsworth, Kansas. I strongly believe the house tax appraisal is valued far in excess of its market value. This believe (sic) is not that it is slightly over market value but that it is at least 45% over market value. First off, I will say without question had I known the appraised value of the property by county records I would NOT of purchased the property. There are other properties of which I would of paid more for, but the total payment would have been less than with this property due to the over taxation. The other houses would have been larger and in better locations. Having never appealed before I am not sure as to what to say. I do believe a little history might be in line to clarify some situations. I am the Executive Director of Ellsworth County Economic Development and one of our projects is in the development of housing. Either the President of the Board or the Board in full makes most of the decisions made in this area. As the Executive Director, I made no decision on sales price, the purchase of any property, or any contract dealing with real estate. The President of the Board without my knowledge or approval took the rental property at 101 Cedar Crest as trade-in on a newly constructed condo Ellsworth County Economic Development, Inc. was building. I was neither a part of setting the sells (sic) price of either property nor negotiating the sales contract. I discover after the fact that the President had taken a rental property as trade-in on the condo. The trade-in alliance (sic) was $40,000 based on the owner’s market knowledge of real estate. She had had the property listed at $42,000 for some time and received no offers. Once Ellsworth County Economic Development had control of the property, I was directed by the Board of Directors to notify the current renters that they could purchase the property from ECED for $40,000 or the organization was going to list the property with a real estate agent. The renter wanted to purchase the property but could not obtain the necessary loan. The renter made me award (sic) of this fact late Wednesday afternoon of ECED’s October Board meeting. At the meeting I made the Board aware of this information. The Board desired to sell the property as soon as possible to handle cash flow situation. I told the Board, I was interested in a large home and might be interested in purchasing the home, but not for $40.000 since we had discovered an additional $3,000 in work that needed to be done. In turn they offered to sell me the property at $37,000. I agreed to this offer and had the work done on the property, which place (sic) my move-in cost at slightly over $40,000. I strongly believe that $40,000 is a fair market value of the property and that if it was on the market I could not sell it for more than $40,000. There are 4 other homes in the development. All four are larger than my home including the single car attached garage. Plus in addition they have full basements and double car-attached garages. I have enclosed a copy of the bank appraisal for my loan that was done by Frank Princ and Shelly Whitmer, certified real estate appraisers. This appraisal was conducted after I had completed over $3,000 of corrective work. The appraisal came in at $45,000 market value. In summary Ellsworth County Economic Development purchased the property at 101 Cedar Crest for $40,000 trade in on a new property. It should be noted that NO reduction of the asking price of the condo was allow (sic). The $40,000 was a reduction of the full asking price. Ellsworth County Economic Development in turn after offering the property to others offered to sell me the property for $37,000. The result is that the property sold twice during the last quarter of 2001 for $40,000 and $37,000, which is far less that (sic) the present tax appraisal. After over $3,000 of structural corrections was completed, a certified appraisal was done on the property and market value was established at no more than $45,000. For all of the above reason (sic), I believe that a more appropriate value of the property would be $40,000 versus the present $58,000. For your information as you establish my hearing date, please take in mind that I am a State Representative and have to be in Topeka during the session and would not be available in Ellsworth. As I am sure you are aware we are in a very difficult session and I do not feel I would be able to miss any sessions. If arrangements could be made to hold the hearing in Topeka it would be greatly appreciate (sic). If this would not be possible may be (sic) a date could be selected when the legislation (sic) is on spring break. Thank you for your time and consideration. I look forward to hearing from you in the near future concerning the tax appraised value of the property. Sincerely, Jerry L. Aday The reply from the Board of Tax Appeal of the State of Kansas, Small Claims Division: In the matter of the protest of Jerry L. Aday for taxes paid for the year 2002 in Ellsworth County, Kansas. Small Claims Docket Number: 2002-933-PR Property Owner(s): Jerry L. Aday Parcel ID#: 027-089-29-0-03-026.00-0 A small claims hearing was held on May 22, 2002 in reference to the above property. Following is the decision of the Hearing Officer assigned: Decision of the Hearing Officer: Upon reviewing both the County and Taxpayer data, it was noted that on or before the appraisal date no home in the exact area had sold. After the appraisal date, one sale occurred indicating a value of $54.000. Also reviewed was the comparison sheet of the appraisal preformed by Frank Price (sic), Certified Appraiser. This appraisal indicated a value of $45,000 on October 20, 2001. With consideration of both the appraisals, the County’s data and more recent comparables, a middle value of $50,000 appears to be the best indication of fair market value. Both the Taxpayer and the County have valid points of interest and due to the lack of sales in the area, the market value is difficult to establish. Additional comparable sales were considered to arrive at the final decision of fair market value. A recent independent appraisal of the subject property was considered in the final decision of value. FINAL VALUE: $50,000 Small Claims Hearing Officer: Barbara Konrade If you are not satisfied with the final decision of the Hearing Officer, you may appeal this decision to the regular division of the Kansas Board of Tax Appeals. Your appeal must be within 30 days of the mail date using the enclosed form.