Preparing VD for MTT 10.12.11.ppt

Great Lakes Chapter Appraisal Institute

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Preparing Valuation Disclosures Involving theEntire Tribunal Division of the Michigan Tax Tribunal

Instructors:Ron Prat, Sharon L. Frischman, Kris Sieloff and Micheal R. Lohmeier

Great Lakes ChapterAppraisal Institute

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INTRODUCTION.

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OBJECTIVES

• Overview of Entire Tribunal Division of the Michigan Tax Tribunal (“MTT” or “tribunal”).

• Provide foundation of what a valuation disclosure is, true cash value means, and examples of what information and analyses could be included.

• Demonstrate areas valuation specialists are used in the assessment/appeal processes.

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FOCUS TODAY

Commercial and industrial real estate cases in entire tribunal division.

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VALUATION DISCLOSURES IN SMALL CLAIMS VERSUS ENTIRE TRIBUNAL

• Residential property and small claims division cases that go to hearing:

• Petitioner – most do NOT involve appraisers or appraisal reports unless the residential property value difference is significant.

• Respondent – often assessor prepares a valuation disclosure.*

• Entire tribunal cases that go to hearing:• Petitioner – most DO involve appraisers and appraisal reports.

• Respondent – if significant value difference and/or may have influence on other properties/cases, will have appraisers and appraisal reports; otherwise assessor routinely provides report.*

*Exception is special assessment cases.5

APPRAISERS AND APPRAISAL REPORTS ARE NOT REQUIRED

• Tribunal does not require the use of appraisers or appraisal reports

• Valuation disclosures are required to support parties’ contentions

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THERE IS NO ONE-SIZE-FITS-ALL ANSWERS,KEEP IN MIND

• Each appeal is different.

• Valuation disclosures are prepared on a case-by-case basis.

• No one is perfect.

• Everyone makes mistakes.

• Try to learn from our own and others’ successes and shortcomings.

• Don’t be afraid to disagree with your peers, instructors, or even the tribunal. Let the quality of your work and your logic be the true test.

• Don’t be afraid to break the mold and work outside of what you are use to.

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INTENDED USE IS UNIQUE

Providing valuation services for pending property tax appeals is different than • Collateral valuation

• Financial reporting

• Insurance

• Divorce

• M&A

• And other uses

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PRIOR TO ACCEPTING AN ASSIGNMENT

Prior to taking on an assignment for pending tax appeal use, at a minimum:1. Read the information available on the MTT website including its Rules

and Procedures.

2. Sit in on a hearing.

3. Read, study and question the validity of the most commonly referenced statutes and tribunal opinions.

4. Review USPAP

*Attending related organizational meetings would help, such as OCAAO, MAO, SECMAA, WCAAO, and MAA

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SUGGESTED LIBRARY REFERENCE MATERIALS1. Michigan Tax Tribunal Rules and Procedures

2. The Michigan Tax Tribunal Notices (i.e., get on Listserv)

3. Article: Is Michigan’s Ad Valorem Property Tax Becoming Obsolete, University of Detroit Mercy, Law Review, by Samuel J. McKim, III, Summer 2000

4. The Michigan Tax Tribunal Reporter (CD, updated Aug. 2011)

5. Michigan Assessor Training Manual

6. Property Assessment Valuation (2010 ed., IAAO)

7. The Michigan Assessor Magazine (monthly by MAA)

8. Fair and Equitable Magazine (monthly by IAAO)

9. Fundamentals of Industrial Valuation (2007 ed., IAAO), if you do industrial real and/or personal property)

*We assume you stay current with USPAP, The Appraisal of Real Estate, and The Dictionary of Real Estate Appraisal

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PHILOSOPHY OF LITIGATION

Rule #1: When preparing a valuation disclosure or preparing for a hearing, try to remain

EARLY!!!

Remember the following saying:When you’re early you’re on time.

When you’re on time you’re late.

When you’re late you lose.

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RECENT ECONOMY HAS ENCOURAGED SCRUTINIZATION OF EXPENSES INCLUDING PROPERTY TAX

Recent economic events have caused appeal filings to increase:• Estimated 3,000 cases filed in 2007

• Estimated 4,500 cases filed in 2008




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OVERVIEW OF THE MICHIGAN TAX TRIBUNAL

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BACKGROUND

Created under Act No. 186 of the Public Acts of 1973.

Executive Order 2011-6 provides the Tribunal is part of the Michigan Administrative Hearing System within the Department of Licensing and Regulatory Affairs.

Main office is in Lansing (i.e., Ottawa Building).

Single tax court for tax appeals with subject matter jurisdiction involving property and non-property tax.

Exclusive jurisdiction of all property tax matters except Drain Code Special Assessments.

Concurrent jurisdiction with Court of Claims over other taxes (i.e., income, sales, SBT, MBT, etc.)

Tribunal Member decisions are final and appealed to Court of Appeals.

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BACKGROUND CONT.

• It is an administrative tax court.

• Uses a formal hearing process.

• Formal record (court reporter).

• Conducts hearings and renders written decisions based on the evidence submitted by all parties.

• Typically range in length from 2 to 4 days.

• Attorneys typically represent parties.

• Hearings held in Lansing office.

• Presiding is tribunal member or administrative law judge (ALJ).

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MICHIGAN TAX TRIBUNAL JURISDICTION

Tribunal has exclusive and original jurisdiction (205.731): A proceeding for direct review of a final decision, finding, ruling,

determination, or order of an agency relating to assessment, valuation, rates, special assessments, allocation, or equalization, under the property tax laws of this state.

A proceeding for a refund or redetermination of a tax levied under the property tax laws of this state.

Mediation of a proceeding and certification of a mediator in a tax dispute.

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ENTIRE TRIBUNAL DIVISION JURISDICTION

All cases may be filed in the entire tribunal division, except principal residence exemptions and qualified agricultural exemption. The following cases must be filed in the entire tribunal division: Classified real and personal property, other than residential and agricultural,

when the state equalized value in dispute is greater than $100,000.

Special assessment cases when the amount in dispute is greater than $20,000.

Non-property tax cases (e.g., income tax, sales tax, MBT) when the amount of tax in dispute is greater than $20,000.

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RULES ENCOMPASSING TRIBUNAL

1. Tax Tribunal Act, MCL 205.701 et seq.

2. Tax Tribunal Administrative Rules

3. Michigan Court Rules

4. Administrative Procedures Act

5. Rules of Evidence

6. Open Meetings Act

7. Freedom of Information Act

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TRIBUNAL MEMBERS

Multi-disciplinary authority requiring each member to have at least five (5) years experience in state and local tax matters.* Membership is full-time and includes:• One appraiser

• One certified public accountant

• One assessor

• Two attorneys

• Two at-large

*Governor appoints members to a 4-year term; senate confirmation required. Governor selects the Chair.

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ENTIRE TRIBUNAL APPEALS PROCESS

• Appeal is initiated by Petitioner.

• Petition is answered by Respondent.

• Counsel conference and summary.

• Discovery is generally permitted up to prehearing conference.

• Motions filed with tribunal if seeking it to take action.

• Prehearing conference.

• Hearing.

• Opinion and judgment.

• Appeal to COA, if applicable.

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RECENT REMARKS BY TRIBUNAL

Tribunal attempting to shorten timeline:

• Within 1 year of filing a petition, the case should be placed on prehearing general call.

• Within 1 year of a case being placed on a prehearing general call, the valuation disclosures and prehearing statements should be filed.

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IMPORTANT DATES

December 31 – Tax day (i.e., effective date of value)

AND

May 31 and July 31 (see Bulletin 19 of 2010 regarding 2011 property tax appeal procedures) filing deadlines

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EVIDENCE

In a proceeding before the tribunal all parties may submit evidence. • Oral testimony needs to be grounded in the valuation disclosure. Be mindful of

testimony that deviates from that which was submitted in writing.

• Tribunal may admit and give probative effect to evidence of a type commonly relied upon by reasonably prudent men in the conduct of their affairs. Irrelevant, immaterial, or unduly repetitious evidence may be excluded. Effect shall be given to the rules of privilege recognized by law. An objection to an offer of evidence may be made.

• Witnesses in a proceeding shall swear or affirm to give full and truthful testimony. Without leave of the tribunal, a witness may not testify as to the value of property without submission of a valuation disclosure containing that person's value conclusions and the basis for the conclusions. This does not, however, preclude an expert witness from rebutting another party's valuation evidence or testifying as to the value of the property in issue if the expert witness's value conclusions were adopted by the party and included in the party's valuation disclosure.

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MRE 702

Provides that expert testimony must be based on three key factors: • testimony must be based on sufficient facts or data;

• testimony must be the product of reliable principles and methods; and

• witness must have applied the principles and methods reliably to the facts of the case.

This is left to judge’s discretion as to whether it assists the trier of fact. It requires trial judges to act as gatekeepers who must exclude unreliable testimony.

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PROPOSED EXPERT TEST

Proposed expert under MRE is tested based on SKEET approach:

Skills

Knowledge

Education

Experience

Training

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DAUBERT FACTORS

In determining reliability of expert’s principles, methods and applications consider examining its scope of work tests of acceptability (USPAP SCOPE OF WORK RULE) pertaining to:

Has the theory or technique been tested?

Has the theory or technique been subjected to peer review and publication?

Is there a known potential rate of error?

Are there existing standards or controls?

Is the theory or technique generally accepted within the relevant professional community?

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UNIFORM STANDARDS OF PROFESSIONAL APPRAISAL PRACTICE (USPAP)

Tribunal does not require valuation disclosures to meet USPAP, but have used USPAP as a guide.

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ADMISSIBILITY VS CREDIBILITY

When admissibility argument fails,

credibility argument still prevails!

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TRUE CASH VALUE MCL 211.27

See handout.

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TRUE CASH VALUE MCL 211.27 cont.

Defines TCV1. … usual selling price … price that could be obtained … at private sale …

2. … not consider the increase in TCV … result of … normal repairs …

3. … before utilizing real estate sales data on real property purchases …

4. … present economic income … usual economic return realized from the lease or rental of property negotiated under current, contemporary conditions between parties equally knowledgeable and familiar with real estate values …

5. … purchase price paid in a transfer of property is not the presumptive true cash value of the property …

6. … purchase price paid in a transfer of eligible nonprofit housing property …

7. … net book value of a standard tool for federal income tax purposes is not the presumptive true cash value of that standard tool …

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FAIR MARKET VALUE

Michigan courts have held True Cash Value is synonymous with fair market value. CAV Investment v State Tax Comm, 392 Mich 442, 450; 221 NW 2d 588 (1974)• What are some of the measurements identified in the market value definition

that you’re familiar with?

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BASIC ASSESSMENT TERMS

Assessed Value: 50 % of the True Cash Value.

SEV: State Equalized Value. Final determination by STC on the fourth Monday in May (MCL 209.4).

Taxable Value: the lower of the Capped Value or the SEV, upon which taxes are levied. The Taxable Value is capped by the provisions of proposition A.

Capped Value: Prior Year Taxable Value minus Losses multiplied by (the lesser of 1.05 or 1 + Inflation Rate Multiplier) plus Additions.

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EFFECTIVE TAX RATE (ETR)

Defined by Property Assessment Valuation (IAAO), p. 340:

the rate expressing the ratio between the current tax bill and the property value; the official tax rate of the taxing jurisdiction multiplied by the assessment ratio.

Examples:

$12,000 (tax bill) / $500,000 (property value) = 0.024 (ETR)

Or

ETR = assessment level x tax rate

Using a millage rate of 50: = (50/1000)x50% = 0.025

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EAT is applied similarly as IRV

Remember your simple I/R=V formula. Tax rates can be similarly calculated if you remember E/A = T

E

A T

E = effective tax rate

A = assessment ratio

T = tax rate

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LOADED CAPITALIZATION RATE

Do not expense property taxes, instead load the capitalization rate with the respective ETR.*

*Relative to the owner’s responsibility.

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INSIGHTS TO SETTLEMENTS AND NEGOTIATIONS

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VALUATION PROFESSIONAL INVOLVEMENT

Valuation professional more involved than in prior years:• Meet with prospective client to ascertain what type of valuation and

valuation related services might be needed (i.e., appraisal versus consulting).

• Meet on a monthly basis to review dockets of pending cases (and non-appeal issues).

• Double-check docketing systems and time-management of cases.

• Review pending cases and review subject and relevant market information.

• Assist in preparing for settlement conferences.

• Determine when valuation disclosures are necessary.

• Provides a opportunity to strategize relevant discovery and timing issues.

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PROPERTY TAX APPEAL CASE MANAGEMENT

Property tax appeal case management involves:1. Database of relevant tribunal rules and procedures.

2. Database of prior tribunal orders and opinions.

3. Program for tracking pending cases with deadlines.

4. Program for evaluating potential case settlement affects.

5. Database for collecting and storing market information.

6. Resource list of potential assistants/experts (i.e., city planners, building inspectors, clerks, brokers, assessors, other appraisers, etc.)

7. Standardized communication tools for different property types, issues, etc. (i.e., like a cookbook of recipes).

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CREATE A TRACKING SYSTEM FOR CASES

A case tracking system should be used to enable efficient and useful management. It may include:• Petitioner name

• Docket number

• Attorneys (both parties)

• Parcel number(s) involved

• Year filed

• Petitioner’s initial estimate of taxable value

• Assessed and taxable values on roll

• Deadlines for pre-valuation disclosure discovery, valuation expert ID, and valuation disclosure due date

• Taxable value at risk and taxes at risk

• Other information that affects assessment, case deadlines, and budgets.

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TRACKING SYSTEM EXAMPLE

Sample, see handout labeled Case Tracking Example

What other information would be useful to include here that would be referenced throughout a case’s life?

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DEVELOPING RISK MATRIXAnalyzing the financial risk of an appeal can be helpful in evaluating any settlement discussions. It should include:

• Property type

• Taxable values contested

• Taxes at issue

• Potential tax refund at probability points

• Trial costs including, but not limited to:

Appraisal, or other outside service, fees

Travel

Lodging

Meals

Attorneys

Court Costs

• Settlement assessment per square foot

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DEVELOPING RISK MATRIXSample, see handout labeled Risk Matrix

What other information would be useful here in evaluating a prospective settlement amount?

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EXAMINING SETTLEMENT OFFERS CONT.

After both parties have exchanged valuation disclosures, or even preliminary analyses, compare each at a minimum for similarities and comparisons of:• Subject property

• Highest and best use

• Sales approach

• Cost approach

• Income approach

• How techniques were reconciled into a final value

• What sources/resources are referenced for market information

• Compare valuations with offers (see following slide)

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EXAMINING SETTLEMENT OFFERS CONT.Consider maintaining a record of the valuations following a case, such

as in the following example:

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Petitioner's

initial offer

Petitioner's

appraisal

report

Petitioner's

offer after

exchange

Offer Diff

from Pet

Report

Offer Diff

from Res

Report

Respondent's

appraisal

report

Diff in

Appraisals Assessed TCV

2008 $3,500,000 $5,000,000 $5,200,000 $200,000 ‐$2,300,000 $7,500,000 ‐$2,500,000 $8,250,000

2009 $3,250,000 $4,500,000 $4,650,000 $150,000 ‐$2,700,000 $7,350,000 ‐$2,850,000 $8,000,000

2010 $2,850,000 $3,800,000 $3,950,000 $150,000 ‐$2,900,000 $6,850,000 ‐$3,050,000 $7,850,000


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RELEVANT STATUTES, CASE OPINIONS, AND STC

BULLETINS.

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CAVEAT – CREATE A REFERENCE FOLDER

A personal caveat is to create a file folder and maintain at minimum the statutes and cases routinely referenced by the tribunal. Read through each at least once.

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RELEVANT STATUTES AND MTT CASES

A proceeding before the Michigan Tax Tribunal is original, independent, and de novo, MCL 205.735(1).

The Tribunal’s factual findings are to be supported by competent, material, and substantial evidence. Antisdale v City of Galesburg, 420 Mich 265, 277; 362 NW2d 632 (1984).

Substantial evidence must be more than a scintilla of evidence, although it may be substantially less than a preponderance of the evidence … the Tax Tribunal is required to make an independent determination of the true cash value of property, utilizing an approach that provides the most accurate valuation under the circumstances. Jones & Laughlin Steel Corp v City of Warren, 193 Mich App 348, 352-353; 483 NW2d 416 (1992).

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RELEVANT STATUTES AND MTT CASES CONT.

Under MCL 205.737(1), the Tribunal must find a property’s true cash value in determining a lawful property assessment. Alhi Development Co v Orion Twp, 110 Mich App 764, 767; 314 NW2d 479 (1981).

Petitioner has the burden of establishing the true cash value of the property. MCL 205.737(3).

It is a well-settled maxim that a taxpayer has the burden of proof in establishing the true cash value of his property when challenging an assessment before the Michigan Tax Tribunal. Country Meadows v Macomb Township, MTT Docket No. 187044 (1994).

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Petitioner’s burden of proof includes two separate concepts or meanings which are paramount to Petitioner[’s] case; (1) the burden of persuasion, which never shifts to the opposing side, and (2) the burden of going forward with the evidence, which may shift to the opposing side. Kar v Hogan, 399 Mich 529, 540; 251 NW2d 77 (1976).

There are three traditional methods of determining true cash value. The three methods are the cost-less-depreciation approach, the sales comparison approach, and the capitalization of income approach. Meadowlanes Limited Dividend Housing Association v City of Holland, 437 Mich 473, 484-485; 473 NW2d 636 (1991).

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The [T]ribunal may not simply accept…[R]espondent’s assessment, but must make its own findings of fact and arrive at a legally supportable true cash value. Pine Lake Housing Cooperative v Ann Arbor, 159 Mich App 208, 220; 406 NW2d 832 (1987).

The Tribunal is not bound to accept either parties’ theories of valuation. Teledyne Continental Motors v Muskegon Twp, 145 Mich App 749, 754; 377 NW2d 908 (1985).

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The Tribunal is not required to accept the valuation figure advanced by the taxpayer, the valuation figure advanced by the assessing unit, or some figure in between these two. Tatham v City of Birmingham, 119 Mich App583, 597; 326 NW2d 568 (1982). It may reject both the taxpayer’s and assessing unit’s approaches. Id. at 597.

The most reliable indicator of value … is a sale of a replica property that occurred very close in time to the relevant tax day … the assessor is not limited to the two year sales study period … but should consider relevant sales that occurred closest in time to the tax day in question. TCF National Bank v Tyrone Township. MTT Docket 318948.

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Consideration of the credits, the restricted rents, and the entire IRC sec. 42 program must be considered. Huron Ridge LP v Township of Ypsilanti. MTT Docket 292811.

The standard for the appraisal process is to develop a well-supported estimate of value based on the study and analysis of all relevant general and specific data using the three recognized approaches to value. However, any approach when applied to a specific set of facts may or may not be relevant. Kimberly Clark Corp v City of Munising. MTT Docket 293558.

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Tribunal held “the practice of determining market value of personal property using eBay 'buy now' price is an updated method used by personal property appraisers and is a reliable method.” Ferndale Laboratories, Inc. v City of Ferndale, MTT Docket 315338 & 329408 (2009).

The Tribunal is less interested in the initials after an individual’s name than the quality of the work product produced and testimony presented. Calder Plaza Investors, New BVD, LLC and Partners V, LLC v City of Grand Rapids. MTT Docket 308994, 309000, and 318169.*

*This case was an assessor versus a senior designated appraiser; assessor provided information and analyses while appraiser provided appraisal report. Tribunal placed greatest weight on assessor stating “… to be more logical and in conformity to accepted appraisal standards and principles than those presented by Petitioners expert…”

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• The use of an expert witness, if qualified to testify as an expert at hearing, does not require the licensure of that expert as a prerequisite. Lack of licensure is one of reliability and credibility of the evidence presented, not an issue of admissibility. The Tribunal will weigh properly-submitted evidence accordingly. Bass Pro Outdoor World v City of Auburn Hills. MTT Docket 275731. Branford Towne Houses Cooperative v City of Taylor and County of Wayne. MTT Docket 90502.

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The Tribunal is compelled to address the issue of XXXX’ credentials. It isclear to the Tribunal that XXXX is a highly qualified business valuation expert. However, he is not a real estate valuation expert. XXXX stated that his appraisal report is an appraisal report as defined by USPAP Standard 10 and that he complied with USPAP Standard 9. These standards apply to the valuation of businesses and intangible assets, not real estate. USPAP Standards 1 and 2 apply to real estate valuation. Nonetheless, XXXX concluded to a final estimate of the subject property’s true cash value. For this reason, the Tribunal finds that XXXX practiced outside of his area of expertise. In this situation, OOOO should have reviewed XXXX’ analysis and determined what, if any, impact it had on the value of the subject property. The conclusions as to true cash value should have been OOOO’s. Branford Towne Houses Cooperative v City of Taylor and County of Wayne. MTT Docket 90502.

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Property is a fixture if (1) it is annexed to the realty, whether the annexation is actual or constructive; (2) its adaptation or application to the realty being used is appropriate; and (3) there is an intention to make the property a permanent accession to the realty. Morris v Alexander, 208 Mich 387; 175 NW 264 (1919).

Power purchase agreement was excluded from consideration in determining value of cogeneration plant. Midland Cogeneration Venture v City of Midland . MTT Docket 242614.

Addressing Intangible Asset/Business Value for hotels, determined no merit to deducting from the going concern anything other than personal property and the liquor license. Amway Grand Plaza Hotel v City of Grand Rapids, MTT Docket 237807

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Economic downturn was evidenced by increased unemployment, reduction of building permits, and a reduction of annual retail sales per square foot, both at the subject property and other similar stores in the area. Von Maur Michigan Partnership v City of Ann Arbor. MTT Docket 334494.

Pertaining to special assessments. Dixon Road Group v City of Novi, 426 Mich 390 (1986)

Pertaining to addition and occupancies. WPW Acquisition Co v City of Troy, 466 Mich 117 (2002)

Pertaining to public service improvements. Toll Northville Limited and Baltimore Wineman, L.L.C. v Northville Township, 460 Mich 6 (2008)

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RELEVANT STATUTE RE: ECONOMIC INCOME

Present economic income is used. MCL 211.27(4).

Present economic income is the ordinary, general, and usual economic return realized from the lease or rental of property that was negotiated under current, contemporary conditions between parties equally knowledgeable and familiar with real estate values.

The actual income generated by the lease or rental of property is not the controlling indicator of its true cash value.

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RELEVANT STATUTE RE: ECONOMIC INCOME CONT.

There are some instances in which present economic income is not considered, including:

Property is subject to a lease entered into prior to January 1, 1984 and the terms of the lease governing the rental rate or tax liability have not been renegotiated after December 31, 1983.

Under certain circumstances, nonprofit, housing cooperative is subject to regulatory agreements between the state or federal government entered into before January 1, 1984.

Restricted rents in MSHDA properties may be lower than market rents.

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RELEVANT STATE TAX COMMISSION (STC) PUBLICATIONS

STC Bulletin No. 6, August 15, 2007 Foreclosure Guidelines are to be used when reviewing sales for sales-ratio studies. • The purpose of the guideline is to provide direction when compiling a “desk-

reviewed” sales study. • Desk-review means determining whether a particular sale will be used in a

study based on transfer documents and other information in the office without additional investigation or field inspection.

• Deviation from the guidelines should be based on investigation of the transaction beyond the normal steps of a desk review process.

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RELEVANT STATE TAX COMMISSION (STC) PUBLICATIONS CONT.

• Bulletin No. 14 of 2010, October 26, 2010, Tax & Collections Calendar.

• Bulletin No. 16 of 2010, October 26, 2010, Inflation Rate • Bulletin No. 19 of 2010, December 7, 2010, 2011 Property Tax

Appeal Procedures. See Handout.• Bulletin 20 of 2010, December 7, 2010, Board of Review.

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WEBSITES

• Michigan Tax Tribunal – http://www.michigan.gov/taxtrib/

• Michigan State Tax Commission -http://www.michigan.gov/treasury/0,1607,7-121-1751_2228---,00.html

• Michigan Assessors Association - http://www.maa-usa.org/

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VALUATION DISCLOSURES.

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VALUATION DISCLOSURE

TTR 205.1252(1) A party's valuation disclosure in a property tax appeal shall be filed with the tribunal and exchanged with the opposing party as provided by order of the tribunal. However, a party may, if it has reason to believe that the opposing party may not exchange its valuation disclosure as provided by order of the tribunal, submit its valuation disclosure to the tribunal together with a motion and appropriate filing fee requesting the tribunal's leave to withhold and place a protective order on the valuation disclosure until the opposing party actually exchanges its valuation disclosure with the party.

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VALUATION DISCLOSURE CONT.

Defined as (205.1101(m)): Documentary or other tangible evidence in a property tax appeal which a party relies upon in support of the party’s contention as to the value conclusions and data, valuation methodology, analysis, or reasoning in support of the contention.

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A valuation disclosure is what you provide in documentary form. So any oral arguments intended to be provided need to be in support of the documents offered. This could include the inappropriateness for use foreclosure or bank sales,

or submitting an appraisal report prepared for a different intended use.

Although treatise should direct the tribunal in reaching its decision, you can make it easier by providing your arguments ahead of time (also helps in prospective settlement discussions).

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An appraisal report may be provided as a document to be offered as valuation disclosure but it is not in-and-by-itself the only type of documents that can, or should, be filed. There is no requirement for what a valuation disclosure has to be, your decision of what to include should be persuasive and:• documented, even if in a valuation disclosure spreadsheet, email, etc… and

• based on your budget and time, which should be decided after considering: risk and impact.

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Examples of what some assessors and taxpayers have done.

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VALUATION DISCLOSURE CONT.Discussion: what do these photographs represent to you?

Could you represent the same perspective to someone else (i.e., the Tribunal)?

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Before preparing a valuation disclosure consider the type of persuasive argument you intend to make and outline what top 5 to 6 issues you are going to focus on, such as:1. Financing availability

2. Market condition changes (sale/rental prices increasing/decreasing)

3. Property related obsolescence

4. Amenities or problems inherent with location

5. Characteristics that add or detract from marketability and value

6. Others?

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Preliminary suggestions about reporting:• Size of print and grids and graphs can sometimes be too small for reading.

Consider using larger paper (tabloid) and larger print than customary.

• It has been expressed by one senior member of the Tribunal that 12 character font is too small and he has had parties reprint reports in larger fonts (they were both 12 character fonts).

• Break tables up into parts that can be enlarged and consider including full tables in the addenda rather than trying to squeeze them into a 8½ x 11 paper having 1” margins.

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VALUATION DISCLOSURE CONT.When preparing valuation disclosures, consider creating Standardized Communication Protocols (SCP) for greater efficiency in preparing them.

Information that could be prepared ahead of time and consistently used in most, if not all, valuation disclosures.

SCPs may include:

- letter of transmittal that case background and valuation conclusions

- introduction to valuation process and approaches to value considered (including definitions)

- standard terminology used

- explanation and measurement of any recognized depreciation, and depreciation that is not of influence

- basis and reasoning for any adjustments in sales and income approaches

- maps of subject and location of comparables (considering using more aerial photographs)

- photographs of subject and comparables used

- certification of ethics and competence

- authoring expert’s SKEET

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A valuation disclosure may include any, and all, of the following: appraisal, appraisal review, appraisal consulting reports;

assessment records - valuation record and property record cards, plat map, respective sales studies including land valuation/tables, sales studies, ECF studies, depreciation studies, flood maps, zoning ordinance and maps, subject property photographs, building sketches, etc.

comparable property assessment records (see bullet above that could pertain to the substance of each);

market analysis reports, broker reports, published surveys, articles and the like (i.e., Korpacz, Realtyrates.com, CoStar, CB Richard Ellis market reports, etc);

listing advertisements;

financial information, balance sheets, and income sheets; and any other relevant social, economic, environmental, and governmental reports.

Information that you considered and a different expert will testify to.

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Prior to writing a valuation disclosure, outline what it will include. Read up on case opinions when the issues were similar to yours, or talk to other appraisers/assessors about their experiences. Consider the following essential elements:• Foundation – Lay out the background for the case and what the case

really boils down to (i.e. jurisdictional, legal, theoretical, etc).

• Facts – What are the facts that the tribunal can believe to be true that your valuation disclosure will be based.

• Analyses - What scope of work is necessary to reach a credible, persuasive, and convincing conclusion (i.e., build the castle, dig a moat, put in barbwire fencing, encase it with soldiers, etc.)

• Conclusion – How will you reconcile your conclusion(s) (perform SWOT test.)

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COMMUNICATION SKILLS

What makes up strong communication skills:• Passion for the subject matter. This creates a personal connection with

Tribunal Member.

• Organize information into for optimal appreciation and retention. Even if you have 15-20 main points in a case, they can be typically grouped into 3-4 main areas.

• Ability to tell a story well (i.e., an appreciation for narration).

• Provides information that is understandable and not confusing.

• Be able to highlight the property, environment, valuation issues and any strengths and weaknesses in analyses.

• Ability to break down complex subject matter and issues/concepts into simple and understandable language.

• Vocal variety.

• Good use of visual exhibits.

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DON’T CONTRADICT YOUR REPORT

Important note: don’t communicate (orally or in writing) that one of the analysis is not applicable in estimating true cash value, and then turn around and use it as a basis for an adjustment, or part of another analysis. Instead write something like:

Although income analysis was concluded to not reflect the motivations of buyers and sellers for the subject property as a whole, I did find [through surveys, discussions with brokers, interviews with buyers and sellers, other appraisers, etc] that buyers and sellers consider it a meaningful extrapolation exercise when focusing on a component part. This was further supported by [any publications supporting claim such as appraiser, broker, builder magazines, newsletters, sales brochures, etc].

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STUDY TRIBUNAL DECISIONS

When reviewing your tribunal opinions try to ascertain:• What facts did you present that the Tribunal believed were true?

• What facts were presented by the opposing expert that the Tribunal believed were true?

• What arguments did you make that were given weight by the Tribunal?

• What analytical methods did the Tribunal place greatest weight on? Least weight?

• Had you reviewed your valuation disclosure before going to the hearing?

• Did you make your valuation disclosure easy to follow (i.e. table of contents, tabs, pictures, etc)?

• Did you emphasize your skills, knowledge, education, experience, and training, or even provide it in written form?

• Did you review the opposition’s valuation disclosure and its author’s background?

• Were you convincing (positive attitude) when you testified?

• Did you walk the tribunal through your valuation disclosure or OR presume the tribunal can read it on its own?

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DISCOVERY REQUESTSDiscovery is a critical time to request for information relevant to your valuation of a property. • Ask only for those items that are relevant for your valuation needs.

• If you do not receive the information, it is also critical to demonstrate the limitations (i.e., extraordinary assumptions) the petitioner influenced your abilities to prepare your valuation disclosure.

• If you do not receive the information, but petitioner provides it to its expert, then be sure to demonstrate the prejudice that you have suffered by not having the same access to information that its expert has had. In effect the petitioner may use your request as a basis for providing relevant information to its expert.

• The extent of discovery often includes similar information. • May be modified depending on the specific issues alleged (e.g., additions and

losses) and property types (e.g., theaters v. light manufacturing).

• Helps gather information about subject property.

• Serves to gather information about general market.

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DISCOVERY REQUESTS CONT.Categorize your requests by subject, and other property owned and/or used by petitioner, in terms of legal, economic, and physical characteristics. Some discovery items may include (for subject and other owned/operated properties):

1. Ownership history and any prices paid to buy/create the subject property.

2. Mortgage and insurance information pertaining to the subject property.

3. Leases, operating expenses, purchase agreements, listing agreements

4. Surveys, engineering studies, environmental studies

5. Appraisals, financial statements, annual reports, budgets and forecasts

6. Fixed asset lists

7. Depreciation schedules, cost segregation reports (anything that might be of reference or filed with SEC)

8. Building drawings, site plans, floor plans, shop work flow plans, IT diagrams, evacuation plans

9. Location diagram of all stored fuel containers and the type stored, volumes, and turnover including latest testing done

10. Power load in facility

11. Floor load (if manufacturing)

12. Information pertaining to occupancy, renovations, changes in the building.

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MAKE VALUATIONS EASY TO UNDERSTAND.

Try using illustrations to communicate your tests, such as

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Highest and Best Use AS-VACANT

TestsPhysically Possible

Legally Permissible

Financially Feasible

Maximally Productive

Industrial Yes No No NoRetail Yes Yes Yes YesOffice Yes Yes No NoResidential Yes No No No


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HIGHEST AND BEST USE QUALITATIVE TABLE.

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Exis ting Use:

Potential Use Test Rating Reasoning

Single-Family Residential Legally Permissible Fair Not a principal use permitted; rezoning and/or special land use approved.

Physically Poss ible Average Physically possible to support.

Financially Feasible Fair Current market doesn't economically support single-family residential development for this area.

Maximally Productive Fair Not conducive to single-family development.

Multi-Family Residential Legally Permissible Fair Not a principal use permitted; rezoning and/or special land use approved.


Financially Feasible Average Current market does support use.

Maximally Productive Fair to Average Not conducive to multi-family development.

Retail Legally Permissible Average Not a principal use permitted; rezoning and/or special land use approved.


Financially Feasible Fair to Average Current does support in special circumstances.

Maximally Productive Fair to Average Marginally supportive in special circumstances.

Technology and Research Legally Permissible Good Zoning permits a variety of technology and research projects.

Physically Poss ible Good Good for trucking and patron traffic.

Financially Feasible Average Market does support at this time

Maximally Productive Average to Good Highest and best use “as vacant” is for technology and research development.

Key from lowest to highest: Fair to Good (Fair - Average - Good).

Highest and Best Use "As Vacant" Table

The subject s ite is 18.96 acres total and zoned T&R; Technology and Research. Although it is irregular in its specific configuration, it is still somewhat a rectangular site. It has immediate exposure, and accessibility) to M-59. The s ite is surrounded by complementary and conforming improved properties.

The subject s ite was s tudied pertaining to its highest and best use involving four tests: (1) the test of legal permissibility, (2) the test of physical possibility (i.e., environmental), (3) the test of financial feasibility (i.e., economic) and ultimately (4) resulting in a conclusion of its maximum, or most optimum, productive use. The following rating grid provides a qualitative synopsis for the tests applied in each case.

RED FLAGS TO LOOK FOR IN MARKET ANALYSIS AND HIGHEST AND BEST USE

1. Highest and best use analysis is missing.

2. Highest and best use conclusions that require a leap of faith – stated without market foundation, market support or market analyses.

3. Highest and best use is inconsistent with valuation approaches.

4. Excess or surplus land is not identified; it is ignored or inadequately analyzed within the highest and best use analysis.

5. Failure to identify the typical buyer and/or tenant for the subject property.

6. Market analysis fails to define the market area boundaries or sphere of influence.

7. Over-reliance on macro economic data / inadequate micro economic data.

8. Economic data is presented with no analysis or attempt to explain its relevance to the appraisal problem.

9. The amount, substance and relevance of data presented and the level of market analysis applied does not appear to be appropriate for the purpose of the appraisal and the complexity of the appraisal problem.

10. Overly positive analysis of the subject or its location.


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SALES ANALYSIS

Use a basic introduction.• Identify and explain proper unit of comparison.

• Identify and explain elements of comparison (transactional and property). Stress that any adjustments applied are market based. Try to verify all transactional data.

• Try to use standardized grids to keep track of adjustments and avoid mistakes.

• Use statistical measurements as a way to reconcile conclusions (minimum, maximum, mean, median, and modes)

• Use graphical analysis when possible (e.g., trend line for price per square foot of size differences.

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SALES ANALYSIS CONT.

The procedural steps involved in applying the sales comparison approach include:• Research transactional data for information on sales transactions, listings,

offers to purchase or sell properties that are similar to the subject property.• Verify transactional data by confirming that the data obtained is factually

accurate; elicit additional information about the market; and ensure the conditions reflect market value.

• Select unit of comparison and develop a comparative analysis.• Analyze and adjust comparable sales (adjust each sale to the subject

property).• Reconcile adjusted sale prices into a single value indication for the subject

property.

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Be prepared to defend property comparables and adjustments. Such as having Pros and Cons of using, or not using, foreclosure sales:

Pro statements1. Foreclosures reflect the competitive environment of properties in the subject

property’s market.2. Foreclosure sales can be adjusted objectively through paired sales analysis and

interviews with market participants.3. Others???

Con statements1. It is impossible to properly extract an adjustment for duress underlying a

foreclosure sale.2. A property in foreclosure is not properly exposed on the open market.3. Buyers and sellers are under increased pressures relating to foreclosure sales.4. Foreclosed properties are sold for quick sales to erase a organizations liabilities

and not to increase its asset accounts.5. Others???

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SALES ANALYSIS CONT.Elements of comparison can be adjusted either quantitatively or qualitatively.• Quantitative analysis – use of % and/or $ adjustments

• Qualitative analysis – arrange unadjusted sale price per square foot of living area in order of smallest to highest and use “inferior” and “superior” notations for dissimilarities provides a sandwiching effect for the subject property’s $/SF “at least” and “at most”.

• Qualitative is often provided as a logical expression of the market, while quantitative analysis provides the tribunal with the basis for reaching its conclusions.

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SALES ANALYSIS CONT.Use sales grids to organize and illustrate your analysis.

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SALES ANALYSIS CONT.Price information used• Current listings (adjust for listing-to-sale price ratio)

• Listings expired and withdrawn (analyze history)

• Sales prices (analyze listing history)

• Pending agreements of sale (analyze and conclude probability of sale)

• Resale activity (changes in sales and reasoning for changes other than time)

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What is relationship between a valuation disclosure and the assessor’s sales study dates?• Does the Tribunal have to consider only sales offered within sales study

dates prescribed?

• Does the petitioner/respondent have to use only those sales closed within the sales study dates prescribed?

• What about using sales after the sales study dates?

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COST ANALYSISAssessment records and valuation records are often provided as evidence of cost analysis.• Use state-mandated cost manual from Marshall Valuation Services for

costs and depreciation.

• Provide land sales to support true cash value of land.

• Provide sales studies to support ECF.

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COST ANALYSIS CONT.

The fundamental steps involved in preparing my cost analysis include:• developing an estimate of true cash value of the subject property’s land;

• estimating replacement cost new of real property improvement items;

• estimating amount of accrued depreciation from all causes;

• deducting the estimate accrued depreciation from the cost to create the improvements; and

• adding the estimated replacement cost new less depreciation to the true cash value of the land.

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COST ANALYSIS CONT.

Use tables to illustrate approach.

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INCOME ANALYSIS

The income approach is useful in the valuation of income producing properties, particularly those that are routinely purchased, or developed, for their cash flow (i.e., lease) potential. • Property’s Income divided by its Capitalization Rate equals its

Indicated Value (i.e., Income / Rate = Value).

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INCOME ANALYSIS CONT.

The above illustration, the income is often noted as “I”, the rate is noted as “R” and the value is noted “V”. Its horizontal line expresses the mathematical divider sign, while the vertical line represents the multiplicative sign. Therefore the formula could be assigned as:• Income divided by capitalization rate equals value (I/R=V);• Income divided by value equals rate (I/V=R); and• Rate multiplied by value equals income (RxV=I).

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The steps involved in applying direct capitalization include:• Develop an opinion of economic rent and apply to leasable area to est. PGI.• Deduct V&CL (as applicable) that would be anticipated to est. EGI.• Deduct operating expenses obligated to an owner of the subject property to

est. NOI.• Estimate reasonable capitalization rate to convert NOI into Vo. Add an

effective tax rate (referred to as “loading”) to the capitalization rate .

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INCOME ANALYSIS CONT.Provide pertinent definitions as necessary, such as: (from Dictionary of Real Estate Appraisal):

•Gross lease – “[a] lease in which the landlord receives stipulated rent and is obligated to pay all or most of the property’s operating expenses and real estate taxes”.•Net lease – “[g]enerally a lease in which the tenant pays for utilities, janitorial services, and either property taxes or insurance, and the landlord pays for maintenance, repairs, and the property taxes or insurance not paid by the tenant. Also called single net lease, modified gross lease, and semi-gross lease; sometimes used synonymously with single net lease but better stated as a partial net lease to eliminate confusion”. •Net net lease – “[g]enerally a lease in which the tenant pays for utilities, janitorial services, property taxes, and insurance in addition to the rent, and the landlord pays for maintenance and repairs. Also called double net lease, NN, modified gross lease, and semi-gross lease; sometimes used synonymously with single net lease but better stated as a partial net lease to eliminate confusion”. •Net net net lease – “[a] net lease under which the lessee assumes all expenses of operating a property, including both fixed and variable expenses and any common area maintenance that might apply, but the landlord is responsible for structural repairs. Also called triple net lease or NNN but better stated as a fully net lease”. (Emphasis added in bold).•Absolute net lease – “[a] lease in which the tenant pays all expenses including structural maintenance and repairs; usually a long-term lease to a credit tenant”.

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INCOME ANALYSIS CONT.When reviewing the rental property comparables, consider:• Date the lease was signed.• The name of the owner/landlord and occupant/tenant.• The terms of the lease, including any agreed on increases in the lease.• Owner/landlord’s responsibility relating to the building maintenance.• Occupant/tenant’s responsibility to maintaining the building.• The length of the lease.• The amount of rent that is required to be paid by the tenant.• Options to renew, if any.• Right to sublease or assign the lease.• Tenant improvements made to the building that are retained in ownership of

the tenant when the tenant moves out.• Security deposits paid by the tenant, and the case when the security deposit

is lost to the owner.• Termination requirements to abandon the lease by the tenant and owner.• Any special provisions that are atypical for a lease that may have an affect

on the owner or tenant.

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When providing a economic rent analysis, use tables to illustrate exercise.

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When extracting capitalization rates, use tables to illustrate extraction.

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Another common method in estimating capitalization rates include:

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Band of Investment Formula

Loan % x Loan Constant Req'd. = Lender %

Equity % x Investment Return Req'd. = Investor %

Rate

Band of Investment Formula

75% x 0.093036 = 6.98%

25% x 0.10 = 2.50%

9.48%


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Note about effective tax rate (ETR):• When the income approach is used to determine the property value for tax

purposes, the practice of treating property taxes as an expense item is based on a preconceived value and discredits the whole approach. Because taxes are often the largest single expense, this practice leaves the final value conclusion subject to considerable error. The problem can be resolved by developing an ETR and by including the rate in the capitalization rate for the property being appraised. Property Assessment Valuation, p. 356.• The effective tax rate is loaded into the capitalization rate to provide a loaded

capitalization rate to apply to the property’s income rather than deducting property taxes as a operating expense.

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FINAL RECONCILIATION

Different reconciliation criteria may be acceptable, as long as the final opinion of value recognizes the reality of the market. • The last phase of any valuation assignment in which two or more value

indications derived from market data are resolved into a final value opinion, which may be either a final range of value or a single point estimate. Dictionary of Real Estate Appraisal, Appraisal Institute.


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FINAL RECONCILIATION CONT.Provide strengths and weaknesses of valuation analyses, stressing the one(s) you have selected and why.• Sales analysis. Most useful when sufficient recent, reliable transactions to

indicate value patterns or trends in the market. For property types bought and sold regularly, it can provide a supportable indication.

• Cost analysis. When lack of market activity limits the sales analysis and when property is not amenable to an application by income analysis. Persuasive when a parcel of land’s true cash value is well supported and improvements are new or suffer only minor depreciation, therefore approximate the ideal improvement that is the highest and best use of the land as though vacant.

• Income analysis. When the property is an income-producing type and reasonable income and expenses can be estimated and a capitalization (or rent multiplier) can be reasonable estimated.

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WHEN USING MICROSOFT EXCEL

• When using Excel spreadsheets, create base adjustment tabs so that the adjustments will consistently apply, especially when multiple years are appealed.

• Be sure to review your documents for spelling, consistencies, PAGE NUMBERING, etc. before filing them with the tribunal.

• YouTube has instructional videos (e.g., Mr. Excel, etc)

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TAKE CARE IN THE FOLLOWING AREAS

In addition to grammar and math be careful of the following:

Cost Approach• Are the land sales truly comparable with respects to size, shape, utilities,

externalities, and highest and best use?

• Do the land sales bracket the per unit value of the subject site?

• Does your land sales’ adjusted pricing range support petitioner’s contentions?

• What uses were the land sales put to after they were purchased?

• Is the source of the cost data referenced?

• Did you use replacement or reproduction costs?

• Do you identify and quantify depreciation sufficiently so a layperson can understand it?

• Have you eliminated the presence of other depreciation that you did not measure?

• Did you use a historic cost index? Can you explain the index as used?105

TAKE CARE IN THE FOLLOWING AREAS CONT.Sales Approach• Are the comparables truly comparable in building and site size, quality,

construction type, use, highest and best use?

• How was the unit of comparison identified?

• How were your elements of comparison identified? How did you measure differences?

• Has the subject property been listed for sale during tax years at issue? Has the subject property been sold during the tax years at issue? Were any offers to purchase been made during the tax years at issue? How did you analyze this information?

• How did you verify the sales information for each comparable used?

• How reliable are the sources of the information used for collecting information pertaining to each comparable used?

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TAKE CARE IN THE FOLLOWING AREAS CONT.

Income Approach• Are the comparables truly comparable in building and site size, quality,

construction type, use, highest and best use?

• Did you make it clear whether gross rent was used (or net, triple-net, etc)?

• Did you make it clear what vacancy and collection loss is and how it was estimated?

• Did you analyze the subject property’s operating expenses in estimating its market expenses?

• Is the method you used to estimated capitalization rates reasonable from a prudent purchaser/investor perspective?

• Did you deduct real estate taxes from your subject property’s income? Did you load the capitalization rate with an effective tax rate?

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PREPARATION AND TESTIMONY

.

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TESTIMONY CAVEATS

• All testimony should tell a story about the valuation disclosure submitted

• Educate the judge/hearing referee.

• Foundational responses – who, what, when, where, why and how. Focus on materiality, relevance and competence.

• Stay calm, courteous and exude confidence. Maintain eye contact (but don’t stare)

• Although many people get intimidated, just remember to be yourself.

• Be careful of hypothetical questions or non-subject property questions (e.g., bar in a car)

• Don’t use fancy jargon that is not understood or can be misinterpreted

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WHEN THE TRIBUNAL MEMBER OR ALJ ASKS QUESTIONS

• Make sure you understand the question before responding

• Listen to entire question before responding (don’t interrupt)

• Always answer truthfully

• Don’t guess. “I don’t know” and “I don’t recall” are better than guessing, but “in my expert opinion” should be avoided

• Always pause after a question is asked and think through responses, think about the follow up questions and only answer the question the judge actually asked

• Stay consistent and keep in mind that most questions don’t call for “absolute answers”, such as “always”. It depends is usually the start of any response based on hypothetical presumptions.

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KNOW YOURSELF

• Pay attention to what helps you prepare and communicate most effectively.

• Most people are sharper in the morning, especially if they don’t overdo breakfast.

• Most people are not good test takers in the afternoon, especially an hour to an hour and a half after lunch. This holds true in answer questions on the stand to.

• Create standard “void fillers” of space.

• Create a team environment with your attorney.

• Any other suggestions?

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DOS AND DON’TS• Don’t be late; do map out the route ahead of time; do come early

• Don’t ignore/dismiss evidence of opposing party as being inadequate; do come prepared to discuss evidence submitted by opposing party, no matter its content/form.

• Don’t take your familiarity for granted; do become familiar with what you are submitting; so assist your team in presentation of evidence; do have sales, income and expense, and cost information plus verification; do have sources of information used; do follow appraisal process, and be prepared to go over techniques, applications and check your math.

• Do consider hypothetical presumptions.

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DOS AND DON’TS CONT.

• Do wait to speak

• Do respect that the judge/hearing referee will give you due time

• Don’t take the rules lightly. Do understand basic evidentiary rules so as to prepare motion of exceptions, reconsideration, rehearing. Do understand burdens of proof

• Don’t minimize the importance of testimony. Do speak slowly and clearly. Do provide concise explanations. Don’t use technical terms.

• Do be friendly, positive, consistent, confident and polite. Do be mindful to adjust to pressures.

• Don’t make excuses for being unprepared…(i.e., DON’T whine!) Do prepare, prepare and prepare!

• Do take responsibility for defending the appraisal and the evidence. Do take the attorney up on the offer to prepare---it is not beneath you to do so!

• Don’t cover up mistakes. Do admit errors in the beginning of the trial. Do offer to correct.

• Don’t come unprepared. Do take every case seriously…it IS serious to your client and the opposing side. Do realize that no case is “too small”

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DOS AND DON’TS CONT.• Don’t expect to “wing it” in the hearing.

• Don’t continue to finish a statement under objection, STOP!

• Don’t take the process personally.

• Don’t argue with the judge/hearing referee or the opposing parties.

• Don’t be an advocate except for your own objective opinions.

• Don’t answer a question unless you understand the question.

• Do be familiar with your report so you won’t have to fumble through the pages looking for information.

• Don’t assume that your report will “stand on its own”.

• Do come prepared to explain/defend the work product of others upon whom you relied.

• Do provide concise explanations. Keep thoughts orderly and systematic. Listen to the full question before answering. Practice your oral communication skills. Prepare for the hearing by playing devil’s advocate with someone in your office.

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DOS AND DON’TS CONT.• When possible use “yes” and “no”.

• Admit it if you do not understand a question.

• Face the judge/hearing referee when responding.

• Leave all sarcasms and personal egos at the door.

• Analyze other cases (e.g., judge’s/hearing referee’s opinions, testimony transcripts)

• Look at the hearing room before your turn. Sit in on someone else’s case to get comfortable with your surroundings.

• Become active in public speaking so you develop a “thick skin”.

• Review opposition and similar cases (e.g. other expert’s appraisals, opposing attorney style, skill and tactics, etc.)

• Examine and organize exhibits in a logical manner.

• Assist in preparing direct exam and cross examination questions and responses and help organize the case based on persuasive logic to direct judge/hearing referee to reach the same conclusions you have reached.

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CONCLUDING REMARKS.

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FACILITATORS

Ron Prat Kris Sieloff

Principal, Silverpilen Company Director of Assessing, Independence Twp.

248.568.5100 248.625.8114

[email protected] [email protected]

Sharon L. Frischman Micheal R. Lohmeier

Principal, Frischman Appraisal & Consulting, LLC Assessor, City of Auburn Hills

734.834.6139 248.370.9436

[email protected] [email protected]

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Preparing VD for MTT 10.12.11.ppt

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