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~ (~~ Cv V Lt Properties, Inc., to appeal the decision of the Tax Supervisor to tax certain properties titled in their name. The Honorable David Rooks will represent Qrange County at this hearing. The Tax Supervisory, Bill Laws, stated that he and representatives of Medical Research Properties, Inc. had met and no decision had been reached. Mr. David Rooks, of the County Attorney's office, stated that Medical Re- search Properties, Inc. holds title to three pieces of property in Chapel Hill that are used by the University. The Tax Office has discovered the property for taxes due dating back to 1972. Jack t4alker, Attorney for Medical Research, stated that the State and not the Corporation is the actual owner of the property and that it is tax exempted. Medical Research Properties is a non-profit corporation without shareholders or members. Its officers volunteered to serve and it "exists solely at the convenience-of the University o~ North Carolina and the State of North Carolina." The Corporation holds title to the pro- perty and received financing for the buildings. The University pays rent to the corporation in the exact amount of the mortgage payment. When the mortgage is paid, the title will be returned to the State, according to Mr. t9alker. Mr. Rooks argued that the "title is in Medical Research Properties, Inc. They are clearly the legal title holder and not excluded" from tax paying responsibility. He added that the Tax Supervisor must base his discoveries on the legal title holder of property. To search out the "equitable owner would be an intolerable burden". The Tax Supervisory pointed out that an application for tax exemption has not been filed by Medical Research Properties, Inc. or the University. Discussion ensued among members of the Board. Commissioner t7alker stated that he felt the matter needed to be given more thought:. Commissioner Pinney moved that the decision of the Tax Supervisory be upheld and that the appeal be denied. This motion was seconded by Commissioner Gustaveson. Further discussion ensued. Commissioner Willhoit moved that this item be tabled to get further indication of the complications. Commissioner t~7alker seconded the motion. The Chairman called for the vote on Mr. taillhoit's motion. Voting aye were Commissioners Willhoit, Whitted, and t9alker. Voting nay Were Commissioner Pinney and Gustaveson. The motion was declared passdd. Mr. Rooks asked the Board what cruestions could he answer to clarify the tax appeal. He added that there were some facts regarding the appeal which should appropriately be discussed in executive session. Commissioner Willhoit then. moved that the Board go into executive session. Discussion ensued. P'[r. Rooks stated that the basis for pursuing a discovery is to learn who owns the property. The Chairman declared -'Ir. Willhoit's motion died for lack of a Second. Commissioner tillhoit stated that he would like to know more about this matter as he questioned whether or not it would be worth the effort to pursue the matter further. Commissioner Gustaveson stated he felt the Board should follow the advise of the County Attorney and the recommendation of the Tax Supervisor. Mr. Willhoit then moved that the original motion of Commissioner Pinney be reconsidered. Commissioner T.~Thitted seconded the motion. Voting aye were Commissioners Gustaveson, Pinney, ~ahitted and t^Iillhoit. Commissioner Walker voted nay. The motion was declared passed, The Chairman repeated the motion of Commissioner Pinney that the Tax Supervisor's recommendation be upheld and the appeal be denied for Medical Research Properties, rnc.