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From YouTube: Board of Equalization Meeting | June 20, 2023
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A
A
B
Okay,
great
thank
you,
am
I
able
to
share
screens.
A
B
Oh,
it
looks
like
okay,
whoops
I,
don't
have
the
current
driver
for
the
sharing
of
the
screen.
So
assuming
you
guys
have
our
our
submission
in
front
of
you,
okay,
great
well,
the
subject:
property
is
a
class
A
office
building
and
the
assessment
increased
nine
percent
from
76.4
million
to
the
81.1
million,
while
at
the
same
time
the
properties
vacancy
increased
from
about
39
000
to
79
000..
B
In
addition
to
that,
there
was
a
tenant
that
left,
which
was
all
the
vote
and
that
tenant
was
playing,
was
paying
about
52
dollars
a
square
foot
on
their
lease.
They
were
able
to
get
out
of
the
lease,
but
a
new
tenant
that
took
over
is
paying
thirty
dollars
a
square
foot.
So
they'll
there
will
be
some
decline
in
future
incomes
as
it
relates
to
that
specific
lease.
But
basically
what
we
did
was
we
took.
This
is
a
building
220
2
000
square
feet
of
net
rentable
area
built
in
1998..
B
So
when
we
got
the
Assessor's
original
worksheet,
it
was
showing
38
000
square
feet
of
vacancy,
and
we
updated
that
and
the
only
and
that's
the
only
thing
we
really
did
to
the
worksheet.
If
you
scroll
to
What's
called
the
m
a
assessor
worksheet,
so
we
simply
put
the
79
000
bacon
square
feet
into
the
Assessor's
worksheet
and
then
use
the
Assessor's
cap
rate
arrived
at
a
value
of
79
million
and
then
deducted
the
lease
up
cost
to
get
to
20
vacancy.
B
The
actual
was
36
percent
to
get
to
twenty
percent
vacies.
They
can
see.
We
deducted
six
million
dollars
for
rent
loss.
Ti's
commissions,
as
outlined
in
is
the
Assessor's
lease
up
deduction,
so
our
overall
value
comes
down
to
73
million
505
119.
B
also,
you
know
currently
there's
a
hundred
and
six
thousand
square
feet
available.
There's
a.
However.
Some
of
that
is
sublet
space
now
we're
not
including
that
because
of
that
sublet
space,
but
it
does
Point
to
an
issue
that
the
market
is
softening
and
you
know
tenants
are
downsizing
in
their
space
and
and
it's
certainly
consistent
with
consistent
with
what
we've
seen
even
from
the
counties
on
the
communications
director
that
one
second
here
Ryan
Hudson.
B
That
basically
stated
you
know
the
23
values
that
any
commercial
property
values
increased
by
2.6
from
the
previous
year.
Existing
office
property
values
showed
a
very
modest
decrease,
but
we're
offset
by
new
construction.
B
So
overall
Assessments
in
the
county
went
up
2.6
for
commercial
properties,
but
that
was
really
related
to
the
new
construction,
existing
office,
property
declined
and
so
that
pretty
much
summarizes
our
position,
there's
more
vacancy
in
the
building
based
on
the
sub
life
space,
which
I
think
reflects
more
risk
in
the
building
and
simply
using
the
Assessor's
worksheet
and
applying
the
correct
vacancy.
That's
how
we
arrived
at
our
value.
That
summarizes
our
position.
A
C
Yes,
ma'am
good
morning
board
members
good
morning,
Mr
McIntosh,
so
we
are,
of
course,
speaking
about
601
Glebe
Road,
primarily
we're
going
to
be
relying
upon
the
summary
sheets,
I
believe
that's
page,
three
of
128.,
as
well
as
the
rent
rule
provided
by
the
ownership
that
will
be
found
on
page
114
of
128.
C
One
of
the
things
we
wanted
to
point
out
in
looking
at
our
value
projection
for
2023
was
that,
upon
the
test
located
in
column
F,
we
did
erroneously
project
forward
a
one-time,
half
million
dollar
lease
termination
payment.
That
would
be
seen
in
line
five
of
other
that
was
received.
You
know,
fairness.
Absolutely.
These
are
fairly
commonplace
in
longer
term
lease
options,
especially
in
office
properties,
as
was
mentioned
by
the
agent
for
the
owner,
the
the
tenants
left
early.
They
did
pay
this
lease
termination
fee.
C
It
was
received
again
that
is
in
the
income
stream
and
it
is
appropriate,
but
as
far
as
projecting
It
Forward
wouldn't
make
much
sense
as
it
is
a
one-time
in
income,
you
know
we
did
make
account
for
that.
C
One
thing
we'll
note
too,
is,
as
we
go
down
sort
of
top
to
bottom
in
column,
D,
the
original
assessment
you
know,
Mr
Peralta
did
in
fact
note
the
office
space
as
well
as
vacant
space
and,
in
fact,
did
note
that
it's
a
good
bit
in
line
with
the
asking
rent
for
vacant
space
that
the
the
appellant
also
used.
C
We
will
also
note
that,
as
far
as
the
vacancy
that
was
in
line
at
the
time
of
course,
Mr
pralter
wasn't
aware
of
the
increase
to
vacancy,
but
did
note
that
he
started
at
25
vacancy,
which
was
a
bit
higher
than
what
was
actually
being
achieved
at
the
property.
The
board
is
aware
by
now
that
Miss
peralton
and
the
department
uses
fairly
large
swaths
of
vacancy,
usually
five
percentage
points
in
Windows.
If
you
will
to
capture
what's
going
on
at
the
property
as
of
January
1.,
moving
down
to
Total
expenses.
C
I
think
this
is
one
of
the
cruxes
of
the
case.
Mr
protza
projected
operating
expenses
that
are
higher
than
has
ever
been
achieved
at
this
property
even
higher
than
what
was
achieved
in
2019.
Almost
you
know:
450
000
higher
than
what
was
achieved
in
21
and
even
with
the
upswing
in
2022
he's
still
some
300,
and
you
know
50
000
370
000,
higher
than
what
was
achieved.
You
can
see
that
they
essentially
stabilized
their
occupancy
as
their
excuse
and
stabilize
their
operating
expenses
as
the
occupancy
stabilized
as
well.
C
We
do
have
a
little
bit
difference
of
opinion,
I
guess
as
far
as
what
was
vacant
as
of
the
data
valuation,
because
Mr
Pro
Peralta's
worksheet
suggests
that
on
January
20
excuse
me,
2021,
the
vacant
square
footage
was
77
317..
C
So
the
idea
that
it
jumped
from
seventy
seven
thousand
three
Seventeen
to
seventy
nine
thousand
one.
Thirty
four.
You
know
was
essentially
a
fairly
small
change
year
over
year,
in
fact,
as
suggested
in
2020,
the
squared
footage
vacant
was
73
000.,
so
it's
been
a
fairly
gradual
if
not
stable,
occupancy
turn
seventy
three
thousand.
Seventy
seven
thousand.
C
Seventy
nine
thousand
again
when
we
look
at
the
operating
expenses
that
Mr
Peralta
projected
as
we
noted
for
higher
than
any
of
the
last
four
years,
and
in
fact
you
could
note
that
the
operating
expenses
were
actually
dropping
19
to
20
20
to
21..
So
if
we're
accounting
for
the
fact
that
the
the
we're
projecting
the
property
is
stabilized
occupancy,
I
would
note
that
again
we
are
using
25
percent
vacancy
per
guideline,
but
also
using
a
high,
much
higher
operating
expense
per
square
foot
rate.
C
I
want
to
look
at
the
rent
roll
on
page
114.
Briefly,
one
of
the
things
that
the
advantage
of
an
office
space,
even
in
this
fairly
blunt
forecast,
is
the
idea
of
expectant
expected
increase
in
income,
that's
kind
of
the
principle
of
commercial.
It's
the
it's
that
principle
of
anticipation.
Present
values
future
benefit.
So
when
we
look
at
this
rent
role,
we
can
see
two
major
things
that
have
occurred.
One
was
already
acknowledged
by
the
agent
for
the
owner.
C
That
is
the
idea
that
he
there
was
a
tenant
that
left
and
someone
took
their
space.
It
was
for
a
good
bit
less
per
square
foot
rate,
but
I
would
also
note
and
ask
the
board
members
to
note
that
that's
a
temporary
stop
Gap
if
you
will
they're
paying
approximately
thirty
dollars
for
the
first
two
years
and
that
jumps
to
near
forty
nine
dollars
in
its
second
two
years.
So
you
do
net
effective
rents
on
that.
C
You
can
see
that
it's
fairly
in
line
with
what
else
is
being
achieved
at
the
property
as
board
members
also
prone
to
know.
Almost
all
of
these
leases
that
are
in
place
have
escalations
of
two
and
a
half
to
three
percent
per
year.
So,
even
as
we
talk
about
these
projections
made
by
Mr
Peralta,
all
of
these
have
gone
up
by
at
least
two
and
a
half
or
three
percent.
C
Furthermore,
that
free
rate
that
abatement
period
of
free
rent,
Burns
off
as
well
so
the
gross
protected
by
the
appendix
on
page
114
in
the
lower
left
hand,
column
shows
a
negative
Rend
abatement
of
just
over
three
quarters
of
a
million
dollars.
That's
burns
off
and
that
will
be
rent
received
in
this
year
of
2023..
So
we
do
believe
based
on
these
facts,
looking
at
again
a
well-placed
property,
the
Boston
Metro
Boston
Mall.
C
We
have
the
boston
exchange,
which
has
actually
been
doing
quite
well
with
lease
up
and
we
look
at
this
property.
We
do
acknowledge
again
that
we
saw
a
continuation
of
a
slight
uptick
in
vacancy
again.
I
would
acknowledge
that
this
noted
that
25
percent,
as
of
January
1st,
he
also
again
made
a
quite
a
bit
of
a
jump
on
projections
for
operating
expense,
but
I
would
argue
that
that
works
in
the
County's
favor,
as
we've
seen
before
with
other
property
types.
C
If
you're
to
make
an
adjustment
to
one
column,
we
would
ask
you
to
obviously
look
at
make
an
adjustment
to
the
others.
In
this
case,
Mr
Peralta's
income
adjustment,
even
based
on
the
projection
for
gross
potential
loan,
not
including
the
gross
potential
for
the
vacant
space,
is
already
some
600
thousand
dollars
lower
than
what
the
owner
himself
suggests.
They
will
receive
again
as
that
free
rep,
Burns
off
looking
at
the
stabilized
property.
Even
again,
if
you
were
to
take
off
that
half
million
dollars
of
lease
termination
look
at
the
averages
of
this
property.
C
Look
at
the
averages
of
the
effective
gross.
That's
been
received.
Look
at
the
averages
of
the
operating
expenses
that
have
been
incurred,
and
you
will
see
that
Mr
Peralta
was
actually
even
a
bit
low
with
his
original
January
1
assessment.
We
believe
that
the
county
should
be
confirmed
that
81
million
115
913.
Thank
you.
D
I
just
I'm
curious
about
the
the
E-Trade
lease
like
what
the
situation,
because
you
guys
are
talking
about
occupancy
and
I.
Don't
know
maybe
I'm
reading
it
wrong
but
like
when
I
look
in,
you
can
see
from
the
outside
in
the
windows
of
that
building
and
it
looks
like
it's
empty
space
time.
D
So
can
you
look
for
the
talent?
Can
you
kind
of
elaborate
is?
Is
this
building
kind
of
like
paying
the
rent,
but
they're
not
showing
up?
Is
that
the
situation?
The.
B
Largest
tenant
is
E-Trade
and
they've
been
downsizing
over
the
years
and
so
and
they
have
the
space
out
for
sublet
and
so
they're
just
they're
not
getting
the
space
leased
up.
They're,
not
you
know
they
they'd
like
to
be
out
of
out
of
the
building
and
downsized.
But
that's
that's
really
what's
happening.
It's
the
baptizing
40.
B
F
D
B
C
I
will
it's
not
to
speak
on
the
office
sector
as
a
whole,
but
you
know
to
kind
of
continue
on
what
most
often
was
speaking
about.
One
could
look
at
this
as
a
a
good
situation
for
the
owner,
whereby
he
has
income
coming
in
and
less
operating
expenses.
If
we're
going
to
look
at
that
and
again
make
an
adjustment,
please
note
that
Mr
pralter
already
has
an
event.
Some,
his
operating
expense
projection
is
higher
than
again
what
was
achieved
in
2019
near
370
000
higher
than
what
was
achieved.
C
Last
year,
the
County's
made
adjustments
to
large
swaths
of
vacancy.
Again,
we've
done
that
as
far
as
low
line
adjustments
when
needed.
We
do
believe
that,
based
on
the
gross
overly
gross
projections
of
uprighting
expenses,
any
adjustment
made
would
still
be
in
line
with,
what's
been
achieved.
Historically,
as
far
as
the
noi.
Thank
you.
B
Sure,
if
you
look
at
the
nli
from
calendar
year,
19
20
21.,
it's
just
a
decline:
6.6
and
20
and
2019
6.1
in
2020,
5.5
and
21,
and
if
you
take
out
the
prepayment
I
mean
the
lease
termination
fee
it
would.
The
noi
in
22
would
have
been
around
5.3
million.
So
it's
just
a
continual
decline.
Lots
of
vacant
space
I
think
you
know
is
not
I,
don't
believe,
is
a
benefit
to
the
owner.
That's
all.
A
Ing
right,
I
guess
you
know,
while
you're
doing
that
I'll
just
kind
of
make
a
couple
comments.
I
guess
my
concern
is,
you
know
I.
Think
Mr
cheek
has
you
know
made
a
good
point
when
you
look
at
the
the
reduction
of
the
the
appellant
is
using
for
income,
you
know
projection
and
then
taking
the
higher
vacancy
on
top
of
it.
A
You
know
and
then,
when
you
look
at
the
actual
operating
for
2022,
you
know
it's
a
5.8
I
mean
we've
more
than
taken
out
the
termination
that
half
a
million
of
the
termination
fee.
So
you
know
I,
don't
know
I'm
not
feeling
inclined
to
to
reduce
but
go
ahead.
Mr
panoranda.
F
A
F
E
A
D
C
D
Taking
time
bomb
right
in
in,
if
it
wasn't
for
the
four
and
a
half
million
coming
from
E-Trade
every
year,
it
would
be
worth
less
than
a
hundred
dollars
a
square,
but
to
that
so
you've
got
you've,
got
five
more
years
of
positive
noi
and
and
this
tenant
it
sounds
like
there
there's
no
intention
to
renew
whatsoever
they're,
even
if
they
did
their
above
market
right
now,
because
they've
been
escalated,
come
on
Tech
Bubble
at
least
sign.
D
So
yeah
I
mean
to
me
if
it
wasn't
for
retrained
it
things
on
the
market
or
their
animation
Keys
or
the
lenders
coming
looking
for
a
bunch
of
money.
So
E-Trade
in
there
is,
you
know,
80
to
90
dollars
a
square
foot
present
value
in
their
lease
payments.
D
D
Yes,
the
shorthand
version
of
taking
the
forward
cash
flow
screens
and
discounting
that
present.
That's
what
we're
doing
here.
I
mean
I
I,
don't
think
I
have
the
support
for
it.
So
that's
I'm
just
going
to
speak
my
case,
yeah,
yeah
and-
and
we
can
move
on
from
that.
A
D
A
E
Argue
that
and
I
agree
that
etrades.com
hi
that's
also
down
the
road
I.
Just
at
this
there's
there's
Revenue
value
in
the
building
now
at
these
numbers
to
get
a
hold
continually
yeah,
but
that's
yeah
giving
and
if
we,
if
we
lower
it,
based
on
that
kind
of
thinking,
now
what's
going
to
happen
next
year
and
the
year
after
year,
after
until
it
actually
does
catch
up,
because
it's
I
think
I
agree
with
you,
but
it's
not
I,
don't
think
that's
determined
the
value
yeah.
D
E
F
A
A
Mr
panaranda
is
the
second
all
in
favor,
I
opposed
okay,
it
is
three
to
one
without
Mr
Hoffman
the
county
is
confirmed
at
81
million
115
900.
A
B
Sure
it's
Class
A
office,
building
with
long-term
leases
in
the
property.
You
know
which
gets
a
little
tricky
when
you're,
using
a
direct
path
against
the
property
that
has
long-term
leases.
You
sort
of
have
to
go
to
discounted
cash
flow
analysis
because
you
know
to
to
go
to
market
and
the
market
rate
of
leases.
You
know
you
have
to
assume
moving
those
existing
tenants
out,
so
the
property
has
an
appraisal
on
it.
B
That
was
done
not
for
these
purposes,
but
for
their
own
internal
purposes,
with
a
data
value
of
731,
2022
or
151
million
250
000.,
and
so
what
we
did
was
to
look
at
in
our
income.
Analysis
was
and
and
number
two.
If
you
look
at
the
assessment
per
square
foot,
it
is
761
dollars
there.
There
hasn't
been
a
sale
in
the
city
in
the
county
that
even
approaches
that
number.
B
So
it
begs
the
question
is
this:
you
know
really
about
attempting
to
to
just
take
the
least
fee
income
and
capitalize
that
using
direct
account,
I
think
there's
some
flaw
in
that
analysis.
So
what
we
did
was
we
took.
B
We
took
the
property
leased
it
up
at
Market
rents.
You
know
they're
getting
our.
You
know
on
that.
You
know
in
the
potential
growth
you
get
about:
68
dollars,
a
square
foot
and
basically
on
long-term
leases.
B
So
what
I
did
was
take
the
market
rent
for
the
retail
and
office
space
at
forty
dollars
for
office
48
for
retail
I
added
pass-throughs
I
took
a
five
percent
vacancy
rate,
which
is
again
aggressive
in
this
market
and
and
capitalized
it
at
the
6.5,
assessor
cap
rate
and
I
get
to
118
million
595
114,
which
is
about
562
dollars,
a
foot
which
will
represent
one
of
the
higher
high
sales.
B
Then
what
we
did
was
to
look
at
the
above
Market
leases,
so
I
took
the
current
market
and
I
and
I
added
the
value.
The
present
value
of
the
income
stream
from
the
above
Market
leases,
so
the
differential
between
the
two
and
added
that
to
the
market
approach
of
118
million
and
that
got
me
to
147
million
seven
hundred
thousand
or
just
about
700
a
square
foot,
I
think
I.
Think
that's
really
aggressive.
B
However,
again
you
know,
if
you
look
at
co-star,
you
look
at
even
the
counties,
description
from
the
communication
director
about
assessments
and
market
value.
You
know
where
existing
office
properties
had
modest
decreases
in
value.
That's
consistent
with
the
market
and
consistent
with
the
forecast.
B
You
know:
Market
rents
for
class
A
office
space
at
42
dollars
in
declining,
and
so
so
again
there
are
no
sales.
I
mean
look
at
the
Assessor's
report.
There
are
no
sales
and
list
everything
you
don't
specify
any
specific
sales
to
support.
You
know
the
value.
B
I
think
the
the
appraisal
that
was
done
in
for
their
own
internal
purposes
to
keep
track
of
their
investment
is
well
supported
at
151
million
you
know,
taking
a
market
approach
and
then
adding
the
differential
and
using
the
Assessor's
cap
I.
Think
it's
a
it's
a
valid
approach
to
to
to
determine
a
value
and
that's
147
million
or
700
dollars.
A
square
foot
Bluetooth
pretty
high.
C
Yes,
ma'am
so
again,
primarily
relying
upon
these
summary
sheets
page
four
of
one
438.
C
You
know
we'll
just
be
honest
right
off
the
bat
we
we
blew
this
one,
we're
we're
very
low.
If
you
look
at
last
year's
assessment
to
what
this
one
grew,
this
grew
by
forty
thousand
dollars
point
zero
two
percent
year
over
year.
Now,
when
we
look
at
the
this,
this
property
left
to
right.
This
is
almost
the
opposite
of
the
last
property
in
the
sense
that
it's
increased
its
occupancy.
It's
now
fully
occupied.
C
So
when
we're
looking
left
or
right,
the
gross
potential
Mr
Peralta
is
barely
above
the
gross
potential
that
was
achieved
in
2019.
again
focusing
on
our
column
d.
As
far
as
effective
growths,
because
Mr
Pronto
did
make
a
market
adjustment
and
allowed
for
five
percent
vacancy
that
doesn't
exist
at
the
property.
He
is
actually
lower
than
what
was
achieved
at
the
property
in
2019.,
some
500
000
lower
than
what
was
achieved
in
2020
2022
and
that's
after
accounting
for
1.2
million
dollars
in
free
rent.
C
Conversely,
from
last
case,
we're
a
bit
low
on
the
operating
expense
projection,
but
again,
as
the
board
has
seen
time
and
again,
where
you
make
one
adjustment
we'd
ask
you
to
look
at
the
other
metrics.
You
know
if
you
were
to
even
adjust
that
by
500
000
to
match
what
was
achieved
last
year.
You'd
still
need
to
make
up
some
six
or
seven
hundred
thousand
dollars
of
effective
gross
income
that
was
throughout
the
county,
unfortunately
left
on
the
plate.
C
If
you
will
again,
this
building
is
completely
leased
up
and
and
for
the
next
11
years.
You
know
that's
one
of
the
arguments
we
would
actually
make
against
using
discounted
cash
flow.
Virginia
courts
agree.
It's
just
too
assumptive
filled
to
look
down
the
pipe
and
see
what's
going
to
happen
in
five
years.
If
we
were
to
do
that
with
the
last
building,
we'd
have
one
assumptive.
C
If
we
do
it
on
this,
one
we'd
say
they're
going
to
be
making
even
more
money
year
after
year
after
year
after
year
after
year,
if
that's
the
case,
then
again
we're
low.
C
You
can
see
that
the
projection
made
for
the
noi
is
actually
even
lower
than
what
was
achieved
last
year
alone,
let
alone
looking
at
the
averages
of
the
property
and
the
fact
that
it's
grown,
gruesome,
600
000
in
2022
one
over
a
million
dollars
in
2021
and
again
it
did
seem
to
go
down,
but
we
would
argue
that
that's
again
is
making
a
concession,
a
full
allotment
concession
of
1.2
million
to
free
rent.
C
So
all
this
being
said,
it's
a
well-situated
property
again
Boston
quarter,
Metro
accessible
fully
leased
for
the
next
13
years
by
a
good
tenant.
We
again
would
argue
that
we
have
made
a
market
adjustment
of
5
million
over
half
a
million
dollars
of
gross
potential.
That's
taking
off
what
would
be
expected,
even
though
we
know
it's
fully
fully
leased.
C
D
B
Well,
I
mean
I
I
think
you
know
to
use.
You
know
to
say
that
the
the
discounted
cash
flow
analysis,
which
is
predominantly
used
by
the
investor
Community
is,
is
not
viable.
It's
it's
a
little.
It's
a
little
far-fetched
I
mean
I
I.
Believe
the
as
assessor
mentions
that
the
that
the
Arlington
County's
attorney's
office
stated
that
DCF
is
usually
thrown
out.
B
I
mean
probably
for
buildings
that
are
multi-tenative
with
on
you
know,
changing
leases
and
shorter
term
leases,
and
that
you
know
so
usually
doesn't
you
know
not
final
to
me.
I
think
this
is
a
a
good
candidate
for
looking
at
it
from
a
discounted
cash
flow
perspective.
It's
how
the
investor
Community
looks
at
it
and
that's
all
and
and
and
that
you
know
the
you
know
it's
a
different
animal
than
the
tenant
than
a
building.
That's
got
vacancy
and
and
rolling
leases,
and
it's
longer
term
investments,
so
cap
rates
are
different.
B
F
A
D
Yeah-
and
this
is
also
the
building-
that's
occupied-
it's
not
like
it's
not
like
it's
going
to
be
that
way.
Empty
and
CNA
is
just
threaten
the
checks
because
they're
ready
to
get
out
of
there
I
mean
it's.
It's
pretty
stable
and
I.
Think.
Maybe
Rob
is
a
little
bit
less
aggressive
on
some
of
the
numbers,
because
then
you
start
bumping
up
against
square
foot
prices
that
are.
D
C
D
Seen
900
square
foot
office
comp
in
Arlington
ever
so
it
becomes
very
difficult
to
kind
of
justify
those
numbers.
That's
where
the
appraisers
are
kind
of
looking
at
to
on
the.
C
D
Around
7
17.,
so
yeah
I
mean
to
me
this
one's.
A
A
B
So
it's
pretty
much
the
same
owner
very
similar
circumstances.
Long-Term
leases,
this
value,
this
assessment
went
off.
B
This
assessment
went
up
by
nine
percent,
Capri
stayed
the
same.
The
noi
went
up
by
you,
know
59
000
or
1.27.
So
same
cap
rate
last
year,
6.9
against
income
that
went
up.
Sixty
thousand
dollars
doesn't
get
you
a
nine
percent
increase
I
mean
so
that's
that's.
You
know
the
the
main
issue
we
have.
We
have
an
appraisal
Nai
at
731.22.
You
can
just
have
a
cash
flow
analysis
at
60
million
three
hundred
thousand
dollars
pretty
consistent
with
the
prior
year
assessment
of
59..
B
We
saw
that
in
the
last
case,
the
property,
the
value
pretty
much
stayed
the
same.
You
know
this
property
went
from
59
to
64
million,
while
the
income,
you
know
increased,
very
slightly,
so
you
know
we
did
the
same
approach.
You
know
used
Market
Brands
get
to
a
market
value
using
the
Assessor's
cap.
You
know
on
a
direct
hat.
This
is
what
might
be
done
in
an
economic
basis
and
sort
of
mass
appraising
basis.
B
You
know
a
545,
a
square
foot
at
a
six
and
a
half
cap
gets
you
to
51
million
dollars
and
then
we
value
those
above
Market
leases
and
at
7.6
million,
and
that
you
know
that
pretty
much
gets
us
back
to
the
59
million
that
the
assessment
was
last
year.
You
know
as
the
as
your
communications
director
and
David
Bowie's,
you
know
for
existing
Office
Buildings
were
down,
and
you
know
the
income
you
know
went
up
every
so
slightly
based
on
the
actual.
B
B
C
Yes
ma'am,
so
this
one's
not
quite
as
clear-cut,
but
we
do
believe
it
is
fairly
succinct
again
we'll
focus
on
page
four
of
286,
the
summary
sheets
again
as
Mr
McIntosh.
Well
summarize,
this
is
essentially
sister
building
well
monetized
and
again
well
occupied
a
fully
occupied
building.
Mostly
these
leases
are
not
quite
as
robust
and
in
place
for
the
next
11
plus
years,
but
three
to
eight
years
for
the
most
part
so
again,
well
tenanted,
Mr
Proto.
C
The
county
was
a
bit
more
aggressive
disco
around
this
verse,
our
projections,
but
still,
if
we're
looking
at
the
history,
that's
been
achieved,
we're
still
low
we're
lower
than
what
was
achieved
in
2020,
2021
and
2022.
As
far
as
gross
potential
again,
a
market
adjustment
of
over
a
quarter
million
dollars.
A
C
Made
five
percent
of
non-existent
vacancy
was
added
to
the
property
to
essentially
make
Market
adjustment
to
that
effective
growth.
That's
listed
when
you
look
at
that
effective
gross.
Please
note
that
it's
barely
above
what
was
achieved
in
2020
and
lower
than
what
was
achieved
in
2021
and
again,
a
good
bit
600
thousand
dollars
lower
than
what
was
achieved
in
2022.,
Mr
protza
was
actually
fairly
in
line
with
his
operating
expense.
Projection.
C
I
would
point
out
to
the
board
that,
unlike
the
previous
case,
this
these
operating
expenses
are
actually
going
up
year
over
year
every
year,
just
as
we
did
in
the
last
case,
as
we've
talked
about
in
previous
cases,
if
you're
to
look
at
making
an
adjustment,
and
in
fact,
as
you
note
in
column,
F
Mr
gibralta
did
in
fact
make
an
adjustment
to
test
that
increased
operating
expense
percentage
and
still
was
lower
than
the
effect
of
gross
that's
being
achieved
at
the
property
not
only
annually.
C
But
historically,
we
ask
you
again
to
adopt
the
idea
when
assessment
one
year
does
not
assessment,
make
look
at
the
history
of
this
property.
The
increasing
income,
even
as
noted
by
the
append,
even
if
it's
modest,
we
would
note
that
that
modest
income
was
due
to
a
rather
large
increase
in
operating
expense,
which
was
a
one-time
event.
It
was
fairly
smooth
from
years
2019
to
2021,
but
we
saw
you
know:
125
000
increase
to
maintenance
repair.
C
Unfortunately,
Mr
protza
is
not
here
to
speak
if
he
was
engaged
with
the
owner
as
far
as
what
that
would
be
attributable
to.
But
again,
if
you
look
at
the
Historical
operating
for
maintenance,
repair
subtotal,
you
see
those
very
stable,
almost
the
exact
same
amount
from
2019
to
2020
and
then
actually
dropped
in
2021.
So
the
spike
in
2022
would
be
something
I
would
have
asked
about.
It's
not
to
say
it's
not
a
a
allowable
expense.
It's
just
a
matter
of
figuring
out.
C
What's
a
reasonable
projection
for
next
year,
as
Mr
Peraza
did
test
in
column
F
again,
you
can
see
that
he
did
make
an
upward
projection
for
operating
expense
and
that
still
called
for
a
confirmation
of
what
was
put
out.
January
1st,
based
on
rent,
rolls
in
place
the
increasing
income
stream
due
to
that
occupancy.
In
place
the
based
on
the
low
projections
made
by
the
county
and
based
on
the
history
of
the
property,
we
do
ask
that
the
board
confirms
the
original
assessment
of
64
million
623
800..
Thank
you.