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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: December 2, 2002 <br />Action Agenda e <br />Item No. ~ _ I <br />SUBJECT• Appraisal Contractual Agreement <br />DEPARTMENT: Assessor's Office PUBLIC HEARING: (Y/N) No <br />ATTACHMENT(S): INFORMATION CONTACT: <br />John Smith, ext. 2101 <br />Appraisal Contract TELEPHONE NUMBERS: <br />Hillsborough 732-8181 <br />Chapel Hill 968-4501 <br />Durham 688-7331 <br />Mebane 336-227-2031 <br />PURPOSE: To consider entering into a contractual agreement with Johnson and Knight <br />Appraisal Services where Orange County Assessor's office will pay $9,500 upon completion of <br />an appraisal of the General Electric plant located in Mebane. <br />BACKGROUND: In 2002 representatives for the General Electric Industrial complex situated in <br />the Mebane area of Orange County appealed their tax value. The Orange County Board of <br />Equalization and Review found no basis to lower the current appraised value of $11,479,400. <br />General Electric and their representatives have further appealed to the North Carolina Property <br />Tax Commission. <br />The Assessor's Office has found, from experience, that the N.C. Property Tax Commission has <br />great appreciation for appraisal evidence presented by a third party. The Assessor's office has <br />also found that this is the fairest approach and typically goes a long way toward resolution of <br />the appeal. <br />In this particular case, the appellants (GE) are claiming that the industrial site should be valued <br />as if it were only a warehouse with a value of only $4,000,000. (The difference would produce a <br />reduction in revenues of $64,200 annually.) However, the property is being operated as a <br />functioning industrial site and should be appraised at this higher use. A third party, unbiased <br />appraiser's opinion is the best approach. <br />FINANCIAL IMPACT: The cost for this outside appraisal agreement would be $9,500. These <br />funds would come from the 2002-2003 revaluation fund operating budget. <br />RECOMMENDATION: The County Manager recommends Board approval and authorization of <br />the Chair to sign the agreement. <br />