Decision and Order
IN THE MATTER OF AN APPEAL PURSUANT TO S. 50 OF THE ASSESSMENT ACT
CONCERNING:
AND
Assessor Of Area #04 - Central Vancouver Island
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Appeal No.: |
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Refer to as: |
Dana Cabinets Ltd. v. Area 04 (2010 PAABBC 20101135) |
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Date of Decision: |
July 29, 2010 |
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Property: |
2310 McCullough Road, City of Nanaimo |
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Heard: |
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Submissions: |
From the Appellant none received |
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From the Respondent received July 09, 2010 |
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Board Panel: |
Cheryl Vickers, Panel Chair |
INTRODUCTION AND ISSUE
[1] The property that is the subject of this appeal is a 4,646 square foot light industrial warehouse on 12,510 square foot lot on the corner of McCullough and Kidson Roads in the Northfield Industrial Park in Nanaimo. The building was constructed in the early 1960’s, has had minimal changes since, and is in a poor state of repair. The building has a limited loading bay area and inadequately laid out showroom.
[2] The issue is to determine whether the assessed value of $295,300 reflects the market value of the property as of July 1, 2009.
EVIDENCE AND ANALYSIS
[3] The only evidence before me is that provided in a written submission from BC Assessment authored by Tracey Roy. Ms. Roy concludes that the highest and best use of the property is its continued use as a warehouse given its location in a well established industrial neighbourhood, its industrial zoning, the continued demand for warehouse space, and that a valuation of the property using the income approach produces a higher value than the value of the land as if vacant.
[4] Ms. Roy provides evidence of three sales of industrial warehouse properties in the Northfield Industrial Park in 2009 indicating a price per square foot of $107.93 to $169.67. The subject is assessed at $63.56/sq ft.
[5] Ms. Roy also provides an income approach analysis to support the assessed value of the property. She provides evidence of lease rates in the Northfield Industrial Park ranging from $8.00/sq. ft. to $9.91/sq ft and sales of industrial warehouses indicating capitalization rates of 6.40% to 7.79%. The subject was assessed for the 2010 roll using the income approach by applying an economic rent of $5.65/sq ft and capitalization rate of 7.75%. Ms. Roy suggests that the use of a lower than economic rent recognizes the building’s deficiencies, and that the capitalization rate of 7.75% at the high end of the indicated range is appropriate. Ms. Roy submits that the determination of value for the subject using the income approach and resulting in an assessed value of $295,300 or $63.56/sq ft is supported by market evidence and recognizes the property’s deficiencies.
[6] I accept Ms. Roy’s evidence, in the absence of any evidence to the contrary, and conclude that the assessed value of the property reflects its market value as of July 1, 2009. There is certainly no evidence before me to support a reduction to the assessed value.
ORDER
[7] The Board confirms the decision of the 2010 Property Assessment Review Panel as follows:
Roll No. 04-68-250-05996.000:
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Land: |
$ |
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Improvements: |
$ |
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Total Assessed Value: |
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$ |