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From YouTube: 7/20/2021 - State Board of Equalization
Description
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A
This
is
the
july
20th
meeting
of
the
state
board
of
equalization.
Today,
we've
got
to
my
right,
glen
trobit
bridge,
to
my
left,
bob
schiffmacher
and
to
his
left,
tyree
gray.
We
are
the
state
board
of
equalization.
Providing
counsel
to
us
today
is
michelle
briggs
deputy
attorney
general
jeff
mitchell.
Deputy
director
department
of
taxation
is
here
as
secretary
to
our
board.
Please
introduce
your
staff.
B
A
Thank
you.
First
we're
going
to
go
over
some
rules
for
the
hearing
today.
Mic
etiquette,
so
rules
here
bear
with
me.
Please
silence
all
devices
to
speak
in
carson
city
or
las
vegas
press
the
mic
button
at
your
seat.
The
button
will
light
up
you're
ready
to
talk
when
speaking
adjust
the
mic.
So
it's
pointed
directly
at
your
mouth
position
yourself
about
six
inches
from
the
mic.
A
Do
not
raise
your
voice
or
act
in
a
hostile
or
aggressive
manner.
Do
not
speak
down
to
demean
or
harass
anyone
in
the
proceedings
or
anyone
in
the
meeting.
If
you
want
to
move
from
behind
the
table,
ask
the
chairman
for
permission
to
do
so.
Handouts
such
as
evidence
must
be
handed
to
the
state
board
coordinator
for
delivery
to
the
state
board.
Members.
A
Do
not
interrupt
anyone
do
not
argue
with
the
chairman
state
board
members
or
the
parties
to
the
hearing.
Do
not
speak,
make
noise
or
gesture
with
your
body
when
someone
else
is
speaking
so
that
being
said
today,
our
order
is
when
cases
are
called
jeff
will
call
the
cases.
Then
the
assessor
will
provide
a
brief
orientation
of
the
property.
A
Then
the
petitioner
will
have
15
minutes
to
present
their
case,
followed
by
15
minutes
from
the
respondent,
which
will
be
the
assessor's
office
to
present
their
case,
then,
a
final
five
minutes
by
the
petitioner
for
rebuttal,
closing,
followed
by
the
state
board,
deliberating
and
rendering
a
decision,
and
throughout
that
back
and
forth
the
state
board.
Members
may
well
ask
some
questions
we'll
allow
for
additional
time
for
our
questions
with
that.
The
next
thing
is
public
comment:
let's
open
up
is
anyone
here,
please
come
forward.
A
A
D
B
Thank
you
miss.
Thank
you,
mr
chairman.
Under
agenda
item
f,
we
have
for
possible
action,
roll
change
request
pursuant
to
nrs
361.769,
subsection
3b
for
the
tax
years,
2021,
1920
and
1819
on
the
secured
roll.
This
is
case
number
21
174.
B
B
C
Tom
brahan
for
the
clark
county
assessor's
office,
the
subject
property
is
located
on
the
east
side
of
decatur
boulevard
at
the
clark
county
215
highway
off-ramp.
It
has
direct
frontage
to
both
decatur
boulevard
and
highway.
215
consists
of
a
226,
274
square
foot,
industrial
building.
It
was
constructed
in
2019
and
is
situated
on
a
13.26,
acre
parcel
and,
as
was
mentioned,
the
petitioner,
I'm
sorry,
the
assessor's
office
and
the
taxpayer
have
reached
an
agreement
on
value
for
all
years
in
question.
A
Thank
you
for
that.
I
want
to
make
sure
from
your
in
petitioner
that
what
we
have
the
stipulation
from
21
174
does
in
fact
reflect
what
you
guys
have
agreed
to.
A
D
C
A
D
Would
you
mind
stating
your
last
name
tom
this.
A
B
First,
we
would
like
to
call
case
number
21,
143,
bpc,
henderson
llc
is
the
petitioner.
It
is
commercial
property
and
the
respondent
is
the
clark
county
assessor.
The
proper
notice
of
hearing
can
be
found
on
page
835
of
your
documentation
for
the
petitioner.
We
have
shelly
becker
sean
ventstrom
here
in
person,
as
well
as
charles
jack,
which
is
available
by
zoom
and
the
clark
county.
Assessor
is
the
respondent
and
they
are
here
in
person
as
well.
A
F
F
Our
value
estimate
for
the
property
is:
ninety
thousand
nine
hundred
forty,
I'm
sorry.
Ninety
million
nine
hundred
forty
seven
thousand
nine
hundred
seventy
eight.
A
H
Hi
good
morning,
as
the
county
has
stated,
we're
here
appealing
the
gallery
at
sunset:
mall,
which
is
located
in
henderson
nevada.
H
We
went
through
through
the
board
of
equalization
through
the
clark
county
and
we
are
appealing
the
decision
from
the
board
and
I
would
like
to
ask
board
members
here
if
we
can
submit
a
small
summary
and
some
year-to-date
information
as
to
the
operations
of
the
mall.
D
It's
not
that
we
would
be
opposed
to
it
necessarily
but
they're
getting
information
for
things
that
have
happened
since
the
january
first
date,
which
would
be
our
date
of
appraisal
for
this
particular
hearing
and
they're,
providing
information
as
up
to
june
of
this
year,
which
no
other
taxpayer
would
be
allowed
to
provide
that
kind
of
information.
So
on
that
basis
I
would
say
that
the
county
would
have
to
object.
E
We
have,
in
the
hearing
yesterday
denied,
chose
not
to
look
at
anything
that
occurred
after
january
after
the
date
of
value,
and
I
think
that
that
should
be
continued
here.
If
there's
a
separate
page
that
has
a
summary
of
information.
That's
in
the
package
that
would
be
acceptable,
but
additional
information
that
would
not
have
been
available
on
the
data
values
can't
we
typically
do
not
accept
it.
H
Yes,
I
understand
completely.
The
reason
for
that
was
that
the
decision
of
the
board
of
equalization
of
clerk
county
was
to
state
that
the
that
it
was
a
temporary
reduction
because
of
cobit
and
that
the
mall
would
start
to
bound
back
a
little
bit.
And
so
we
were
going
to
provide
an
example
of
what
was
happening
year
to
date
from
that
period
in
time
from
2018-2021
as
an
example
that
it's
not
bounding
back.
But
I
completely
understand
so.
A
Yeah
I
mean
I'm
tempted
to
allow
it
in
and
give
the
weight
that
we
feel
it's
due
give
them
that
latitude,
but
that's
my
just
I'm
up
for
what
the
board
and
I'll
agree
with
what
the
board
wants
to
do
here.
G
It
you
mean
the
guy
that
let
the
lawyer
do
it
right,
but
we're
represented
by
learning
council
here.
So
I
don't
have
to
be
that
guy
today,
no,
and
so
I
I
would
actually
tend
to
agree
to
you,
mr
chair,
that
it
is
a
summary
page,
and
so,
if
it's
representing
a
trend
that
is
already
consistent
within
the
836
pages
in
this
document,
then
it
might
be.
It
might
be
useful
to
be
able
to
take
a
look
at
it.
A
Great,
we
only
got
100
page
files.
I
think
we
we
want
the
cliff
note
version.
I'm
kidding,
I'm
kidding,
we've
gotta.
Oh,
we
all
gotta
have
a
full
copy
with
that
before
we
make
the
decision.
Glenn.
Are
you
okay?
D
So
this
is
new
evidence.
It
was
not
provided
to
the
county
board.
So
in
a
hearing
of
an
appeal
of
a
decision
of
the
county
board,
a
party
that
wishes
to
introduce
evidence
that
was
not
submitted
to
the
county
board
in
the
first
instance
must
satisfy
the
state
board.
The
new
evidence
could
not,
by
due
diligence,
have
been
discovered
or
secured
before
the
final
adjournment
of
the
county
board
and
submit
evidence
in
writing
to
the
state
board
and
all
parties
of
record,
not
less
than
seven
business
days
before
the
hearing
on
the
matter.
G
This
not
necessarily
as
evidence
but
more
as
exemplary
to
support
what
is
already
in
the
trended
documents,
and
so
to
that
extent
I
do
feel
comfortable
taking
a
review
if
this
was
something
separate
and
distinct.
That
was,
I
mean
again
by
representations
of
the
petitioner.
G
A
H
Shelly
becker
for
the
record,
so
again,
thank
you.
Thank
you
for
admitting
the
additional
information
I
will
refer
to
it
as
we
go
through
and
essentially
what
what
property
tax
resources
are
firm.
Does
we
represent
property
owners
all
throughout
the
country
regarding
especially
specializing
in
regional
shopping
malls?
This
is
a
class
b
shopping
mall
that
is
going
through
the
same
as
many
throughout
the
country.
H
H
I'm
sure
you
guys
have
all
heard
of
amazon
effect
where
there's
been
a
sharp
decline
in
brick
and
mortar
retail
centers,
specifically
at
regional
shopping
malls,
which
has
been
causing
not
only
a
decline
and
rental
rates,
but
also
an
increase
in
capitalization
rates
and
with
the
decline
with
with
the
tenancy
rental
rates.
H
The
operators
are
unable
to
sustain
the
cost
that
it
takes
to
maintain
a
brick
and
mortar
and
specifically
a
regional
shopping
mall,
and
then,
when
you
come
in
to
march
of
2020,
with
coven
19,
it
basically
slammed
in
already
declining
retail
industry,
specifically
with
the
regional
shopping
malls.
H
This
particular
the
subject.
Property
was
closed
for
two
months,
nearly
two
months
in
2020
and
as
it
reopened.
Not
only
was
it
subject
to
local
ordinances
regarding
occupancy,
but
also
limiting
operating
hours.
She
had
the
gm
indicated
that
there
was
issues
with
attendance,
maintaining
payroll
and
overhead
having
to
ask.
H
In
summary,
the
total
noi
declined
from
2019
to
2020
by
almost
17
percent,
and
if
you
look
at
it
from
2017
to
2020
we're
almost
at
30
percent
decline
in
noise,
so
this
particular
center
has
had
a
history
of
of
suffering
and
decline
and
what
happened
with
covet
19.
It
just
pushed
it
over
the
edge,
in
addition
to
not
just
being
closed
during
the
pandemic,
but
the
other
additional
impact
that
it
has
to
commercial
real
estate,
specifically
in
retail,
is
the
social
distancing
supply
chain
disruptions.
H
Employment
loss,
consumer
confidence
they're
still,
as
as
things
were,
starting
up
in
2021
or
I'm
sorry.
In
2020,
people
were
not
interested
in
being
out
in
public
and
being
around
a
lot
of
people.
So
essentially
what
happened
is
at
the
one
of
the
largest
retail,
some
of
the
largest
retail
brands
that
were
already
facing
a
situation
that
was
looking
dire,
are
after
cobia.
H
19
are
now
on
this
large,
a
long,
arduous
road
to
recovery
over
the
next
few
years,
so
they're
seeing
this
increase
in
e-commerce,
and
we
all
know
the
amazon
effect
that
has
caused
people
now
and
after
quarantine.
Everyone
is
now
very
comfortable
shopping
online.
It's
now
become
a
very
normal
thing
or
before
it
was
just
a
convenience
or
a
luxury,
and
so
we're
seeing
this
increase
in
e-commerce
increase
and
the
decrease
in
foot
traffic
continue
to
decrease
in
the
regional
shopping
mall,
and
I
understand
we
have
a
limited
amount
of
time.
H
H
As
you
see
on
the
graph
on
my
page
three,
I'm
not
certain
what
it
is
on
the
evidence,
but
in
terms
of
the
increase
of
of
retail
and
markets,
I'm
sorry,
retail
tenants
that
are
filing
for
bankruptcy,
such
as
j
crew,
jc
penney's,
it's
something
that's
been
occurring
for
the
past
several
years.
I
have
another
example
from
co-star
emphasizing
some
of
these
and
then
on
my
page
five.
H
We
have
a
timeline
starting
from
2016
to
every
year,
going
forward
of
number
of
retail
tenants
that
are
going
bankrupt.
Most
of
them
are
in
regional
shopping
malls,
many
of
which
are
in
the
subject:
property
payless,
the
children's
place
forever,
21.
H
new
york
and
company
jc
penney's,
a
number
of
of
tenants
that
are
at
a
risk
of
bankruptcy
going
forward
threat
based
on
their
national
presence.
Since
2017,
nearly
14
000
retail
stores
have
closed
the
majority
of
the
tenants.
Closing
are
mall
oriented
so
again
on
a
list
we
have
here
for
a
number
of
closures.
We
have
about
eight
here
at
the
property,
one
of
which
had
already
left
by
the
lean
date
of
january
1st
1
121..
H
Now
we
can
sit
here
and
talk
about
coven
19
and
how
much
it's
impacted.
But
how
do
we
tangibly
define
what
that
is
in
terms
of
a
decline
in
in
value?
So
we
do
have
an
example
of
a
portfolio
purchase
between
todd
minmal,
I'm
sorry
by
simon
properties
of
the
tommen
mall
portfolio.
That
was
in
basically
in
the
february
of
2020
right
before
the
pandemic.
They
were
about
to
close
on
this
portfolio.
H
It
was
an
80
stake
in
the
portfolio
for
3.6
billion
and
that's
52.50
a
share
so
as
it
was
prior.
Just
before
closing
the
pandemic
hits
litigation
ensues
and
they
ultimately
settle
on
a
transaction
price
down
to
forty
three
dollars.
A
share.
That's
about
an
eighteen
point,
one
percent
discount
from
a
pre-pandemic
to
a
post-pandemic
mall
acquisition.
H
I
do
want
to
emphasize
that
this
is
a
but
the
sales
per
square
foot
at
these.
Most
of
these
centers
averaged
about
972
dollars
a
square
foot.
These
are
class
a
high-end
portfolio,
but
we
believe
this
is
a
strong
indicator
of
a
market
decline
and
believe
that
the
it's
reasonable
to
conclude
that
there's
a
higher
risk
of
the
lower
grade
properties
that
we're
looking
at
here
with
the
class
b.
So
this
would
be
a
minimum
of
a
discount
amount
of
what
market
value
would
be
before
and
after
covered.
H
One
of
the
indicators,
as
well
as
the
the
sales
per
square
foot
occurring
at
the
property
prior
to
we
look
at
it
and
we're
looking
at
sales
per
square
foot.
Are
the
inline
tenants
under
10
000
square
feet
prior
to
covid19
occurring
the
sales
were
just
over
dollars,
a
square
foot
at
post
post
covered
19.
H
H
According
to
some
market
data,
specifically
corporate
realty
advisors,
it
could
be
considered
a
c
mall,
but
in
terms
of
how
it
was
handled
in
the
appraisal
and
in
terms
of
the
valuation
it's
b,
although
we
do
foresee
some
of
these
classifications
changing
in
the
near
future,
since
the
direction
of
the
malls
are
rapidly
changing,
and
we
also
took
a
look
at
as
well
as
the
occupancy
cost
of
the
tenants
in
place.
Occupancy
cost
is
the
total
cost
of
the
tenant
to
do
business.
H
Rent
utilities
insurance
divided
by
their
total
sales,
there's
a
significant
amount
of
tenants
that
are
according
if
we're
using
the
class
b
that
occupancy
cost
should
be
in
that
11
to
13
and
a
half
percent
range
anything
over
the
13.
It's
considered
a
high
risk
tenants
likely
to
not
renew
or
to
leave
prior
to
their
expiration
date
in
the
case
with
the
the
property
as
of
the
ling
did,
or
in
the
year
and
2020.,
there
were
71
tenants
with
over
11
percent
and
57
tenants
with
a
13.5
percent.
H
H
Some
of
the
other
classification
parameters
that
we
utilized
was
through
newport
night
and
frank,
like
I
said,
between
the
class
b
and
b
plus
you're,
looking
at
about
350
to
5.99
a
square
foot
I
and
and
coming
down
it
does
have
the
capitalization
range
from
11
to
16
in
this
classification
parameters.
H
I
do
have
some
photos
involved
in
the
subject:
property
as
well
as
we
did
a
site
visit
with
the
appraiser.
Many
of
the
spaces
are
are
dark
in
the
dix
corridor.
There's
a
former
hollister
space
that
has
shadowed
the
the
area
which
has
been
very
difficult
to
release
because
no
one
wants
to
be
in
an
area
that
there's
no
no
traffic.
No
one
wants
to.
H
No
customers
want
to
send
down
that
corridor
and
other
new
tenants
do
not
want
to
be
leased
there
and
if
they
do,
they
are
not
paying
much
rent
at
all
according
to
especially
compared
to
market.
The
county
did
mention
the
new
development
that
occurred
in
2014
and
15
new
restaurant
space.
There
is
a
space
the
picture
on
top
of
my
page
17.
H
That
is
still
it's
over
8
000
square
feet.
It's
a
front
line,
inline
space
that
has
not
been
developed
or
it
still
has
dirt
on
the
ground
since
2014.
there's
no
there.
It's,
you
know
that's
from
the
lean
date,
that's
almost
six
or
seven
years
where
there's
been
no
no
tenancy
there
in
many
of
the
restaurants
that
have
been
that
were
built
out,
are
vacant
and
still
vacant.
So,
as
I
mentioned
before,
we
have
the
owner
commissioned
an
independent
appraisal
from
integra
realty
resources.
H
I
will
go
over
briefly
what
he
has
in
this
appraisal,
but
in
terms
of
any
specific
valuation
questions,
I
would
ask
that
you
can
specific,
or
you
can
specifically
ask
him
in
terms
of
looking
at
the
recently
signed
leases.
Most
of
the
subject,
leases
that
were
signed
within
a
year
of
the
lean
date
were
temporary
tenants.
H
Many
of
these
is
it's
pretty
common
in
retail
markets
right
now,
temporary
tenants
that
make
up
the
majority
of
new
tenants
due
to
the
fact
that
they
have
a
lot
of
space
that
they
just
need
to
fill,
whether
that's
a
mom-and-pop
shop
or
a
holiday
shop
or
a
new
business.
That's
starting
out
that
needs
a
space.
H
More
regional
shopping
malls
are
looking
to
fill
space
because
they
need
to
look
like
it's
occupied
so
that
people
want
to
come
there
and
shop.
H
The
the,
as
I
mentioned
earlier,
the
historical
income
and
expense
has
been
has
been
declining
as
of
the
19
and
20.
It's
down
about
17
percent
or
just
shy
of
17,
as
you'll,
see
reflected
in
a
lot
of
the
leases
that
were
signed.
Many
of
them
that
they
that
he
found
were.
H
In
line
some
food
court
and
some
inline
specialty
tenants
that
he
established
as
rental
as
market
rent,
this
would
be
found
on
page
134
of
his
appraisal.
So
what
they're
finding
is
that
like?
As
I
mentioned
this,
the
temporary
attendance
are
common
and
then
there's
some
food
court
common
you're,
not
seeing
a
lot
of
large
regular
tenancy
being
being
signed.
H
As
of
the
lean
date,
the
vacancy
was
17
in
addition
to
that
45
648
square
feet
or
ten
percent
of
the
total
square
footage
was
temporary
tenants
so
how
the
appraisal
handle
handled
that
is.
He
took
the
average
rental
rate
of
the
specialty
net
tenants,
which
is
about
10.97
square
foot,
which
is
a
discount
of
about
just
shy
of
67
of
the
overall
average
market
rent
that
was
being
signed
on
a
regular
attendance
basis
and
of
that
66.8
of
that
10.42
is
six
point.
H
Eight
percent
of
considering
additional
vacancy
on
top
of
the
17
so
he's
concluding
at
a
23.61
vacancy,
because
the
idea
of
that
is
that
temporary
are
not
going
to
be
a
regular
tenant
they're,
going
to
continue
to
maintain
this
temporary
cycle
or
or
continue
to
be
vacant
as
well,
utilizing
historical
operating
expenses,
ratio
of
about
35.1
percent
and
then,
as
we'll
go
over
the
noi
in
place.
The
cap
rate
that
he
utilized
was
a
modified
cap
rate
loading
method.
H
Essentially,
the
center
is
not
recovering
all
their
expenses,
so
it
took
a
a
review
of
historically
the
percentage
of
which
he
is.
The
center
is
for
recovering
of
of
the
real
estate
taxes.
On
average,
it
was
about
41
percent
that
was
not
being
recovered
in
that
calculation
he's
taking
that
concluding
at
40
percent
of
the
tax
rate
in
place
at
the
time
and
rounding
it
adding
that
4
41
to
the
capitalization
rate.
H
I
think
included
capitalization
rate
and
going
forward
again.
We
he
utilized
newport
night
frank
some
sales
to
support
well,
regional
shopping
malls
are
very
complex
in
terms
of
the
anchors
that
are
involved
in
that
sale.
Whether
or
not
you
know
what's
happening
in
that
specific
market,
he
was
able
to
find
some
that
were
similar.
H
That
one
was
in
morrow.
Georgia
was
about
13.27
percent
cap
rate.
In
addition,
there
was
the
green
street
advisors,
which
is
the
research
firm
that
gathers
data
and
information
for
reits
and
regional
shopping
malls
throughout
the
country.
Their
specific
indicated
cap
rate
for
the
property
was
12.9
percent,
subject
to
the
2020
noi
that
they
had
in
their
that
they
had
as
part
of
their
research
and
as
such,
he's
concluded
a
12.29
capitalization
rate
and
then
added
the
0.41
modification
rate
for
a
concluded
rate
at
13.31
percent
in
the
noi.
H
That
was
in
that
he
reviewed
historically,
he
essentially
establish
an
as-is
and
an
in-place.
H
H
We,
the
sales
comparison
approach,
was
not
used,
although
it
was
used
to
defer
the
capitalization
rates
of
sales
in
the
market
because
of
the
the
nuances
of
regional
shopping
malls,
the
amount
of
adjustments
that
will
be
needed.
It
was
not
included
in
this
analysis,
therefore,
he's
concluding
at
that
76
million
amount-
and
I
just
I
wanted
to
kind
of-
and
I'm
running
out
of
time
or
maybe
marry
out
of
time.
H
But
I
wanted
to
go
over
the
what
occurred
at
the
clark
county
board
of
equalization
in
terms
of
the
concluded
determination
of
the
board
using
the
actual
2019
noi
and
using
a
13
cap
rate
and
their
their
reasoning,
for
that
is
to
say,
as
I
mentioned
earlier,
that
they,
this
is
a
temporary
decline
and
that
the
property
will
stabilize
and
come
back
to
2019
and
that's
more
of
an
indicator
of
what's
going
to
happen
in
in
in
the
future.
H
So
we
were
able
to
obtain,
which
is
new
information
in
terms
of
what's
happening
at
the
center
now
as
an
indicator
to
compare
to
what's
been
happening
in
the
past.
So
in
the
exhibit
that
I
provided.
H
The
revenue
has
declined
over
the
years
historically
and
from
overall
19
to
20.
If
you're,
comparing
the
actual
2019
revenue
and
trends
happening
to
2021,
revenue
is
down.
16
percent
you'll
also
notice
that
in
the
well
the
noi
is
down
four
percent.
The
more
mean
reason
for
that
is
the
expenses
have
been
drastically
cut.
So
if
you
compare
2019
to
2021
expenses
from
january
to
june,
it's
a
forty
percent
decline,
it's
from
2020
to
21,
it's
a
26
decline
and
in
that
time
frame
in
2020,
the
property
had
been
closed
for
a
few
months.
A
We
probably
will
have
questions
after
the
five
minute
rebuttal,
but
at
this
point
let's
go
to
the
assessor's
office
and
when
you're
ready,
please
proceed
with
your
case
and
I
think
we
gave
a
little
bit
more
than
15
minutes
to
petitioners.
So
please
feel
free
to
take
a
similar
amount
of
time.
If
you
so
desire.
F
F
Similarly,
the
mall
has
had
an
occupancy
between
92
and
96
percent
over
the
past
several
years,
also
documented
in
the
apprai,
primarily
in
the
appraisal
agenda.
Looking
at
sbe
610
is
of
february
2020.
The
occupancy
was
92
percent
678
page
678
date
not
provided
on
the
document.
Occupancy
was
94
percent
on
sbe
516
for
year
end
2018,
occupancy
96
and
is
documented
in
an
article
with
an
interview
from
the
property
manager.
At
year
end
2017
occupancy
was
93
percent.
F
F
F
For
vacancy
we're,
estimating
10
that
is
based
on
data
provided
by
colliers
for
the
year
end
in
applied
analysis,
we're
adding
other
income
of
360
thousand
dollars,
which
is
primarily
kiosk
rental
expenses
were
estimating
at
15,
which
is
above
the
average
documented
by
international
council
of
shopping
center
data,
developing
a
net
operating
income
of
8
million.
Ninety
nine
thousand
five
hundred
and
twenty
five
dollars
the
capitalization
rate
applied
is
nine
percent.
F
F
Appreciating
that
the
subject
is
about
17
vacant
and
we're
estimating
stabilized
vacancy
at
at
90
percent,
we're
gonna
lease
up:
seven
percent
of
the
space
over
a
span
of
five
years,
we're
estimating
a
market
rate
of
two
dollars
per
square
foot,
we're
estimating
an
allowance
attendant
improvement
allowance
of
fifteen
dollars
per
square
foot
and
discounting
the
five-year
cash
flow
at
a
safe
rate
of
six
percent
to
come
up
with
an
adjustment
of
two
million
nineteen
thousand
six
hundred
and
ninety
nine
dollars,
which
we
subtract
from
our
our
value
estimate
for,
as
we
concluded,
originally
a
real,
a
property
value
of
ninety
two
million
four
hundred
and
twenty
thousand
twenty
dollars.
F
And
we
agree
with
the
county's
analysis
for
the
case
as
presented
in
february
and
we're
estimating
a
concluded
value
for
the
property.
Ninety
million
nine
hundred
forty
seven
thousand
nine
hundred
seventy
eight
dollars,
which
equates
to
about
a
hundred
and
ninety
dollars
per
square
foot
that
is
supported
by
our
local,
comparable
sales.
F
I'd
like
to
present
the
board
with
a
blow
up
of
sbe,
page
513.,
which
is
in
the
appraisal,
but
it's
way
too
small
to
read
so.
We've
blown
it
up
and
made
it
a
little
more
legible
for
purposes
of
discussion.
F
F
It
includes
the
anchor
store,
the
dick's
sporting
goods
anchor
store,
which
is
81
000
square
feet,
so
that
I'm
excluding
that
from
this
discussion,
looking
looking
at
the
far
right
column,
it
shows
rent
achieved
contract
rent
achieved
from
all
these
tenants,
as
reported
by
the
appraisal
of
these
97
tenants,
72
have
a
higher
contract
rate
than
the
24
as
estimated
by
the
petitioner's
appraisal
and,
in
most
cases,
substantially
higher
than
24
just
looking
at
well,
especially
the
jewelry
stores.
F
Look
these
stores,
for
example,
danielle's
jewelers,
is
paying
101
per
square
foot
fast
fix,
jewelry
is
paying
85
dollars
a
square
foot
k,
jewelry
is
paying
164
dollars
a
square
foot
and
sales
is
paying
234
dollars
a
square
foot
so
by
understating
so
dramatically
the
income
potential
of
this
property,
the
petitioner's
indicated
value,
is
far
below
what
market
value
might
be
out
of
these
7
97,
tenants
that
are
examined
as
far
as
what
contract
rent
they're,
paying
each
contract
rent.
That's
above
24
is
highlighted
in
yellow
and
the
right
hand,
column
and
and.
F
That's
74
of
all
of
these
tenants
are
paying
beyond
the
estimated
market
rental
rate
of
twenty
four
dollars
at
this
property,
and
I
think
it
documents
how
valuable
the
gallery
and
mall
space
is.
These
are
high
rents
paid
higher
than
our
market
averages
for
the
rest
of
the
metro
area
and
at
the
very
least,
they're
contracted
for
a
number
of
years,
and
I
have
no
evidence
that
they
vacated
the
space.
F
A
D
Chairman
johnson
marianne
weidner,
with
the
clark
county
assessor's
office,
the
appellant
has
put
forth
some
projections
of
what's
happening
over
the
last
six
months,
and
so
all
we're
really
trying
to
establish
is
that
there
are
also
good
things
that
are
happening
as
well.
So
the
whole
property
is
not
vacating,
they
are
actually
leasing,
they're,
doing
construction
they're
bringing
in
new
tenants.
So
the
picture
that's
been
painted
is
if
there's
no
one
ever
going
to
move
into
this
property
and
it's
going
to
continue
to
decline
and
decline
until
there's.
A
Okay,
I'm
I'm
good
with
it.
I
just
want
to
be
careful,
and
the
purpose
for
us
would
be
to
just
establish
trends
that
existed,
and
I
think
this
space
probably
was
listed
for
lease
as
of
january
1st,
maybe
they're
talking
to
tenants,
but
this
board's
probably
not
going
to
rely
on
a
lot
from
either
side
that
happened
after
january
1st.
We.
D
F
A
tenant
by
the
name
of
cycle
gear
is
moving
into
the
front
space,
the
most
predominant
space
in
the
mall.
I
think
at
the
south
side,
formerly
occupied
by
bravo's
restaurant
cycle
gear.
This
is
their
second
location
in
the
metro
area.
When
I
was
at
the
property
a
few
weeks
ago,
I
saw
their
tenant
extensive
tenant
improvements
under
construction
and
their
signs
in
place,
stating
opening
coming
soon
further
documenting
that
the
mall
is
viable
on
a
desirable
location.
F
Our
our
selected
cap
rate
of
nine
percent,
I
think,
is
conservative
and
very
realistic.
Given
market
information,
capping
a
property
at
13
percent
into
perturbity
into
perpetuity
is
well
pessimistic,
to
say
the
least.
F
Tenants
that
are
there
that
chose
to
be
there
are
up
and
operating
and
capitalizing
the
subject
property
at
9
76
occupancy
into
perpetuity.
Again,
I
think
understates,
the
potential
for
this
mall
some
malls
throughout
the
country
have
failed
and
have
lost
anchors.
That's
not
our
subject.
Our
subject
is
in
a
strong
demographic
area.
F
As
I
mentioned,
the
highest
household
income
at
the
year
end
2020
out
of
all
of
our
sub
markets,
and
the
fact
that
it
is,
it
is
leasing
up.
Space
I
think,
indicates
there
is
a
good
future
for
this
mall.
It's
also
encouraging
some
some
facilities,
an
outdoor
mall
area
that
they
built
a
few
years
ago
that
allows
the
property
to
do
some
attraction.
F
D
Yeah,
chairman
johnson,
yes,
yes,
so
mary
ann
weidner
with
the
clark
county
assessor's
office,
I
think
to
just
kind
of
summarize,
where
we're
at
on
this
property
that
maybe
we've
talked
about
a
lot
of
things.
D
I
don't
think
the
petitioners-
and
I
are
that
that
and
the
county
offices
are
that
far
apart
with
regards
to
what
the
noi
is
they've,
even
on
their
paper,
that
they've
turned
into
you
indicated
that
they're
in
agreement
with
our
concluded
noi,
the
appraisal
is
very
close
to
where
we're
at.
I
think
the
crux
of
the
whole
argument
comes
down
to
the
cap
rate.
The
first
thing
I
want
to
note
in
the
cap
rate
is
that
they've
loaded,
the
cap
rate,
similar
to
a
case
you
had
heard
just
yesterday.
D
We
are
not
using
a
load
of
cap
rate.
We
are
expensing
the
real
estate
taxes
within
our
expense
ratio,
and
if
we
just
look
at
that
on
its
face
value
2020
in
spite
of
how
horrible
it
was,
the
property
only
declined
by
17
percent.
You
have
seen
in
the
properties
that
we
presented,
even
as
of
yesterday,
that
we
saw
much
greater
decline
than
that.
So
we
are
recognizing
yes,
that
retail,
it
has
been
impacted
by
the
market
and
the
amazon
parallel
that
was
brought
forth
is
very
real.
D
We
are
very
aware
of
it
because
of
it,
our
office
has
actually
made
adjustments
on
practically
every
big
box,
retail
that
we
have
on
record,
including
this
one.
We
had
actually
made
adjustments
to
this
one,
so
we
are
recognizing
that
I
just
want
to
make
sure
we're
distinguishing
the
difference
between
the
two
and
we're
not
putting
them
together,
but
in
spite
of
covet
and
everything
else,
if
you
even
look
at
their
2020
numbers,
the
decline
was
still
only
17
in
reality.
So
this
is
not
a
failing
mall,
it
is
still
viable.
D
The
county
board
felt
that
it
actually
was
a
little
bit
too
high,
but
in
the
end,
instead
of
applying
a
higher
cap
rate
to
our
lower
noi
that
we
had
done
on
our
analysis,
they
chose
to
apply
the
higher
cap
rate
to
the
stabilized
numbers,
which
are
very
indication
of
the
past
2018
and
2019
year.
You
can
see
that
those
numbers
were
very
stable
for
those
two
years
prior
to
covid,
and
so
I'm
I'm
not
saying
that
there
wasn't
any
other
impact
from
retail,
but
we
also
know
there
has
been
a
lot
of
pent
up.
D
Frustration
and
people
have
been
out
there
out
there
spending
their
shopping
and
they
want
to
get
out.
So
what
that
trend
will
be
over
time
next
year,
maybe
a
whole
different
story.
We
don't
know
so
just
in
summarizing.
I
think
the
difference
in
our
evaluation
really
comes
down
to
the
cap
rate
and
whether
the
board
agrees
that
we
should
be
applying
something
like
a
nine
percent
or
whether
we
should
be
applying
something
as
high
as
a
13
percent.
D
A
I
appreciate
that
and
let's
talk
about
cap
rates
and
just
give
us
some
more
context
to
why
you
decided
on
a
nine
cap
rate
and
what
you
relied
upon.
I
know
you
touched
on
it
some
during
your
presentation,
but
I
do
agree
that
this
is
about
cap
rate
and
what's
important,
I
think
that's
what
this
case
is
going
to
turn
on.
So
I
would
welcome
further
insight
as
to
what
you
guys
relied
upon
how
you
determined
an
appropriate
capitalization
rate.
F
Illustrated
on
espy's
page
823,
which
documents
national
regional
mall
market
cap
rates,
the
range
indicated
is
4.5
to
15
with
an
average
of
6.93.
F
F
The
cap
rate
indicated
was
6.73,
mean
and
median
of
7.
7.10.
These
are
all
local
market
sales
occurring
in
the
year
2020,
although
true
they're,
not
regional
malls,
but
they
reflect
market
conditions.
F
What
was
going
on
here
in
las
vegas
during
2020,
so
our
utilized
cap
rate
of
nine
percent
is
on
the
high
end
and
we
think
realistic
to
represent.
What's
going
on
with
the
galleria
mall,
and
we
do
appreciate,
there
is
uncertainty
in
the
market,
although,
as
marianne
did
say,
we've
all
been
experiencing
and
witnessing
a
lot
of
recovery
and
maybe
even
participating
in
that
ourselves,
going
out
shopping
and
not
wearing
masks.
A
It
does
and
from
your
broad
experience,
not
just
you
guys,
present
retail
shopping
center
sales
on
here,
but
are
you
aware
of
anything
in
clark,
county
selling,
for
greater
than
a
10
cap
rate
based
on
existing
and
place
income
over
the
last
year?
Two
years,
what
I'm
seeing
on
your
chart-
and
I
think,
there's
reasons
why
it
should
be
higher
this
one's.
This
is
sbe,
790
and
791..
A
I
think
this
is
a
unique
animal,
but
outside
the
box
riskier
assets,
are
you
guys,
aware
of
anything?
Is
there
any
basis
to
go
that
high
to
a
13
cap
rate
based
on
local
data
and
that's
a
broad
question
we're
just
asking
and
kind
of
grasping
of
straws.
D
Yes,
mr
chair,
I
would
say
that
we
haven't
had
even
on,
I
would
say,
on
some
hotel,
motels
and
hotel
casinos
we're
seeing
things,
but
even
the
latest
sales
on
those
type
of
properties.
The
cap
rates
are
considerably
lower
than
what
they
have
been
of
course,
apartment
sales.
It's
a
different
market
office,
I
would
say,
would
probably
be
the
one
that
would
be
struggling
the
most.
D
We
would
probably
use
the
higher
cap
rate
on
there,
but
I
don't
think
we've
gone
as
high
as
10
unless
it
was
a
really
distressed
property
and
very
old
needing
major
renovations.
Something
like
that
and
we
analyzed
almost
all
the
offices
this
year,
industrial
the
rates
are
very
low,
so
I
would
say
across
the
board,
we
haven't
seen
things
you
know
above
the
ten
digi
ten
percent
or
higher,
with
the
exception
of
properties
like
hotels
and
we,
but
we
do
analyze
those
on
a
going
concern
value
versus
this
property,
so
that
helps.
A
A
A
I
Sean
ventstrom
I
flew
out
here
so
I
feel
I
need
to
speak,
I'm
just
a
fan
of
the
city,
so
we
appreciate
the
county
and
we've
got
the
we're
very
fortunate.
We're
a
boutique,
firm.
I've
been
doing
this
a
long
time
I
represent.
Our
firm
represents
about
25
of
the
shopping
malls,
almost
250
shopping
malls
throughout
the
u.s.
It's
a
national
market.
It's
not
a
local
market.
I
fly
across
the
u.s
generally,
we
hope
to
meet
with
the
assessors
at
the
at
the
mall
and
come
to
some
type
of
agreement
and
oftentimes.
I
It
is
cap
rate
and
the
offer
still
stands
for
next
year.
We'd
love
to
work
proactively
on
this.
You
know,
but
it's
been
a
cordial
experience
and
what
we
try
to
do
and-
and
I
think
charles
jack
did
the
same
in
his
appraisal-
and
this
is
a
unique
situation-
usually
we're
doing
our
own
valuations.
I
We
don't
have
to
commission
our
appraisal,
but
with
charles
we
got
an
appraisal
and
you
know
here
we
are,
and
certainly
it's
capitalization
right.
I
I
really
hope,
for
the
sake
of
our
clients,
that
this
does
come
back.
I
really
do
thankfully
they're
well
capitalized
right,
it's
brookfield,
brookfield
is
now
the
manager
and
not
managing
owner,
but
manager
and
owner
of
the
asset.
Unfortunately
qic
you
guys
probably
read
the
story.
Australian
pension
fund
came
into
the
u.s,
starting
in
2013,
buying
49
of
assets
of
regional
malls.
I
They
got
up
to
about
11
of
them
and
there's
more
recent
articles
that
it's
probably
in
one
of
these
sp
pages
that
indicate
sure
back
in
2015,
2016,
2017
kind
of
capital
flowing
into
this.
You
know
the
risk
spreads.
They
felt
were
there
by
january,
1st
2021
we're
in
the
midst
of
a
global
pandemic
in
a
regional
shopping
mall.
You
know
to
counter
some
of
their
points.
Yeah,
it's
it's
a
major
retail
corridor.
I
absolutely
agree.
Unfortunately,
all
those
tenants
are
there
right.
What
happens
when
jcpenney
goes?
I
I
mean
brookfield
was
a
participant
in
buying
jc
penney
right,
so
they
don't
go
well,
they
did
go
bk,
but
they
don't
leave
every
one
of
their
specific
properties.
It's
an
interesting!
It's
an
interesting
game
right
now,
right
so
there's
there's
so
much
retail
there,
and
I
agree
it's
a
great
retail
corridor.
We're
talking
regional
shopping
mall.
This
is
a
national
market.
This
is
not
a
local
market.
The
the
players
in
this
space
they've
always
been
right
for
a
city
developed.
I
It
qac
came
in
as
a
jb
and
now
brookfield,
the
second
largest
mall
owner
in
the
u.s
and
on
another,
pretty
prominent
asset
here
in
in
clark
county
as
well
that
we're
clearly
not
appealing
and
not
having
a
discussion.
It's
the
bifurcation
as
well.
It's
the
a
plus
on
the
strip
versus
the
suburban
b,
and
this
is
where
there's
significant
challenges.
I
If
you're
a
tenant,
that's
actually
opening
a
space
in
in
nevada
right
now,
very
few
right,
there's
some
sure
who
are
you:
gonna
choose
you're
gonna
choose
the
a
plus
player
you're,
probably
not
going
to
the
b
market,
with
a
ton
of
competition
right
around
you
when
jc
penney
goes
out
of
there.
I
think
it's
a
matter
of
when
right.
It's
just
like
sears
sears
is
down
with
30
stores.
Now
jcp
will
no
longer
be
with
us
in
the
next
decade.
I
So
we
know
what
we
need
to
do
is
as
of
january,
1st
2021-
and
these
are
some
of
our
first
covet
cases
which
are
really
interesting
environment
right
we're
in
the
midst
of
a
global
pandemic.
We've
we've
seen
2017,
I
mean
they're,
pointed
at
18
and
19
in
a
while
relatively
flat,
2017
noise
at
14
million
dollars,
pre-covet
2018
11.9.
So
a
lot
of
these
leases,
the
least
fee
there's
so
much
risk
associated
with
them
right.
The
occupancy
cost
is
very
high.
I
I
It's
a
very,
very
challenging
market
ball
is
a
you
know,
is
a
40
award
in
the
investment
community
right
now,
and
it
truly
is,
and
we
sit
with
these
clients
day
in
and
day
out,
and
we
we
understand
the
challenges
and
they've
got
great
leasing,
folks
they're
well,
capitalized,
they're,
they're,
trying
their
best
and
yet
again
on
on
the
recent
handout
we-
and
we
just
got
it
last
week,
the
updated
noi,
as
anticipated
as
of
january
1st
by
our
fee,
simple
appraisal.
I
Noi
continuing
to
decline,
even
though
everything's
opened
up,
I
mean
the
strip,
looks
great.
People
are
coming
back
and
we're
all
tired
of
this,
but
they're
not
coming
back
to
regional
malls.
They
weren't
pre-coded
post-covered.
I
It's
just
too
easy
right
that
apparel
everything
it's
just
too
easy
to
buy
online
and
there's
just
too
much
gla
a
lot
of
these
are
going
through
redevelopment.
I
think,
eventually,
you
know
something
will
happen
here,
nothing
you
know
currently,
but
I
don't
think
it's
going
to
stand
as
a
b
mall.
So
a
couple
more
of
the
points
that
really
maybe
we
can
focus
on
cap
rate,
because
that's
the
big
and
why
I
think
we're
about
the
same,
which
is
you
know
interesting,
so
the
the
board.
I
You
know
last
time
I
agreed
with
the
13
cap,
but
then
looked
at
2019
noi,
which
is
just
interesting
methodology.
We
believe
in
the
appraisal
has
the
correct
methodology:
noise,
if
you're
underwriting
this
you're
investing
in
this
you're
making
a
loan
on
this.
As
of
january
1st
2021
middle
of
global
pandemic
noise
been
going
like
this,
you
don't
know,
what's
happening
in
2021,
that's
the
value!
That's
the
data
value
right,
a
lot
of
risk
associated
that
with
that,
I
ask,
would
any
one
of
you
anticipate
noi
to
go
up
like
this?
I
I
don't
believe
so,
but
the
fact
is,
it
has
not.
With
respect
to
cap
rates.
It's
it's
not.
You
know,
7.4
in
the
local
market,
sure
this
isn't
a
local
market.
It's
a
national
market,
the
pwc
the
9.33
on.
I
think
it
was
page
8
23.,
that's
a
b
plus
they
don't
even
report
on
b
anymore.
You
know,
mr
corpez
does
green
street
advisors
who
they're
read
advisors,
I'm
sure
the
appraisers
in
the
room
are
familiar
with
them.
They've
got
it
pegged
at
a
13..
I
If
you're
going
to
use
2019
noi,
it's
pegged
like
a
15.3
capitalization
rate,
and
I
know
it's
tough
and
I
get
it.
I
we
we
walk
into
these
meetings
all
the
time
and
we're
at
cap
rates
in
the
teens,
which
is
it's
still
hard,
even
for
us
like
to
comprehend.
But
this
is
what
they're
the
limited
sales
that
are
happening.
This
is
what
they're
trading
for
some
of
them.
I
mean
you're
pushing
you,
know:
high
teens
low
20s
in
some
of
the
tertiary
markets.
I
This
is
not
that,
but
still
there's
so
much
risk
associated
with
this
nobody's
lending
out.
You
got
to
come
in
with
cash
right.
How
any
any
lender
they're
not
looking
at
this,
you
can't
you
can't
get
a
loan
on
this
starwood
tried.
They
went
to
the
israeli
bond
market,
I'm
sure
you
guys
have
read
about
that.
The
israelis
are
now
suing
starwood.
Starwood
bought
30
of
these
b
malls
in
2012.
I
They're
down
to
six
everything
else
is
in
special
servicing
or
been
foreclosed
upon,
or
the
israelis
are
controlling
that
subsection
of
the
asset
class.
So
it's
a
very,
very
challenged
environment,
and
I
believe
you
know
mr
jack's
appraisal
was
very
well
supported.
The
capitalization
rate
is
very
well
supported
and
the
noi
is
is
really
in
line
is
slightly
higher
than
the
assessors
concluded
in
a
line
so
yeah.
I
I
agree
it
is
capitalization
rate,
but
I
just
would
like
you
to
think
of
of
the
tremendous
amount
of
risk
associated
with
that,
and
that
is
our
lead.
It's
january,
1st
2021.
We
really
hope
it
comes
back.
It
hasn't
shown
signs
since,
but
we
do
hope
it
comes
back
and
we
do
ask
that
you
conclude
at
the
appraised
value
of
76
million.
A
What
would
be
helpful
for
this
board
is
indications
from
the
property
of
that
perceived
risk.
So
are
you
getting
non-renewal?
Notices
from
tenants
are
tenants
not
paying
what's
going
on
there
to
indicate
risk.
I
think
we
had
testimony
from
the
assessor's
office
that
the
sales
on
sbe
47
that
are
being
relied
upon
and
they're
higher
they're
in
the
teens
for
the
cap
rates,
but
all
of
them
had
anchors
that
had
already
gone
out.
So
that's
a
clear
line.
A
I
Yeah,
that's
a
great
question.
I
mean
we've
seen
it
in
li
and
then
what
we'll
see
it
on
on
the
rent
rolls
it's
probably
here
in
our
package.
But
as
shelly
mentioned
it's
it's
all
going
to
most
of
it's
going
to
specialty
leasing,
it's
the
temporary
tenants,
paying
percentage,
rent
and
low,
and
that's
what
you're
not
seeing
these
are
the
older
permanent
deals,
the
the
new
deals
or
a
lot
of
the
renegotiated.
I
You
know,
abatements
and
and
covert
considerations
are
going
to
percentage,
rin
and
liu.
So
whatever
your
sales
are
we're
going
to
take,
you
know
10
to
12,
so
that's
kind
of
the
healthy
occupancy
cost.
You
can
see.
You
know
the
and
I
don't
know
specifically,
maybe
can
I
add
something
yeah?
Maybe
charles
you
can
address
the
the
vacancy
question
within
your
appraisal.
I
don't
know
exactly
where
it's
at,
but
I
think
you
did
a
renewals
analysis
or
a
vacancy
analysis.
If
I'm
not
mistaken,.
J
Yeah
I'll
chime
in
here
real
quick,
just
want
to
let
you
guys
know
I'm
under
the
weather
right
now
and
I
haven't
had
as
much
chance
to
really
absorb
this
as
I
should
have,
but
I've
just
been
tucked
in
bed
trying
to
recuperate
so
you'll
have
to
forgive
me
there.
Probably
the
biggest
thing
I
remember
with
the
occupancy
analysis
is:
there's
a
good
chunk
of
tenant
percentage,
that's
in
the
temporary
or
pop-up
category.
So
these
are
not.
J
Actually
I'd
say
publicly
traded
franchise.
You
know
nationally
recognized
name
tenants.
These
are.
These
are
some
local
area,
operators
that
have
a
specialized
use
and
they're
they're
gonna.
You
know
a
lot
of
that
space
is
in
it
low,
rents
and
and
or
short
term
lease
obligations.
So
some
of
that
some
of
that
in
there
I
believe
you
know
I'm
trying
to
remember
off
the
top
of
my
head.
I
believe
that
was
about
ten
percent
of
the
space.
J
If,
if
sean
or
shelley
have
a
better
estimate,
you
could
chime
in,
but
that's
that's
an
element.
I
I
noticed
that
kind
of
indicated
to
me.
It
was
a
a
weakened
tenant
base.
You
know
some
of
the
people
that
they're
back
backfilling
over
there
are
not
nationally
recognized
franchised,
known
tenants
that
are
in
line
tenants
at
typical
regional
laws.
I
J
You
said
432,
okay,
and
that
was
the
that's
the
that's
the
moody's
analytics
restata
just
realize.
Most
of
that
is,
is
the
larger
las
vegas
retail
market
space.
That's
going
to
encapsulate
all
of
the
various
retail
property
types
in
in
the
las
vegas
market
area.
That's
not
focused
or
are
detailed
towards
strictly
regional
malls.
J
In
fact,
some
of
the
studies
don't
even
track
regional
malls
because
they're
such
a
specialized
animal
and
the
the
you
know,
rents
and
vacancies
are
much
much
different
in
those
properties
and
depend
on
that
particular
property's
profile
at
the
time.
J
H
So
I
did
have
a
conversation
with
the
gm
before
just
talking
about
how
things
were
going.
Obviously,
that's
when
I
had
requested
this
information,
the
one
thing
that
she's
noticed
what
a
the
new
leases
regarding
cycle
gear,
which
I
did
not
know
at
the
time
of
our
original
appeal,
but
she
didn't
indicate
all
the
leases
that
are
going
in
now
were
all
negotiated
prior
to
march
2020.,
so
they
all
got
pushed
a
year
or
more
than
a
year
and
are
just
now
getting
in
to
get
started
and
and
so
they've.
H
The
opening
dates
were
pushed
dramatically
from
those
they
have
had.
No
new
leases
signed
since
covet
occurred
or
been
negotiated.
Any
conversations
they're
having
with
renewals.
So
they
have
you
know
part
of
a
normal
regional
shopping.
Mall
is
to
up
upgrade
the
the
frontage
and
the
the
improvements
in
the
property.
H
Tenants
are
now
asking
for
tenant
improvement
allowances
in
order
and
they'll
extend
their
lease,
maybe
a
few
years
in
order
to
do
that,
because
they
don't
have
the
capital
and
because
the
mall
doesn't
want
to
lose
them
they're,
paying
them
to
essentially
stay
there.
So
that
is
the
biggest
difference
that
we're
seeing
in
terms
of
the
environment,
so
sure
the
tenants
are
still
in
place,
but
essentially
they're
being
paid
to
stay.
There.
E
I
It's
a
capital,
expense
yeah,
and
it's
significant
and
the
valuation
industry
and
the
mall
industries
trying
to
figure
out
how
to
do
that
brook
brookfield.
Actually,
as
an
operator,
has
a
an
noa
schedule
that
we
often
are
provided
with.
That
shows
an
amortization
component
within
the
noi
because
they
are
so
capital
intensive
now,
but
currently
it's
it's
below
the
line
in
these
inner
life
in
these
nli
figures.
So
there's.
E
So
as
I'm
looking,
I'm
I'm
looking
at
page
five
542
and
it's
the
the
income
summary
and
projection
and
of
the
76
million
dollar
valuation.
E
A
portion
of
that
a
portion
of
the
lost
value
is
associated
with
the
ongoing.
You
know
the
kind
of
systemic
trends,
but
a
portion
of
this
appears
to
be
related
to
covet.
Is
there
a
way
to
tease
out
how
much
the
the
covet
impact
was
versus
what
you
perceive
to
be
the
the
ongoing
trend?
We've
capitalized
an
income
projection
here
of
what
10
million
174,
which
is
a
substantial
decline
and
and
more
than
the
trend
the
the
trend
would
suggest
sans
covet.
E
I
J
I'll
give
you
my
opinion,
agree
or
disagree,
but
I
think
the
important
thing
here
from
a
valuation
perspective
is:
is
this
a
permanent
decline
in
income,
or
is
this
a
temporary
fall
and
it's
going
to
resume
back
to
2019?
J
I
think
my
analysis
from
you
know
talking
the
people
that
were
selling
these
and
doing
the
research
in
the
report
and
also
you
know
I
get
some
some
of
these
cmbs
filings
and
the
the
comments
I'm
getting
is
the
regional
mall
space
is
rated
the
worst
of
the
worst.
I
mean
it's
even
considered
worse
than
what's
happening
in
the
hotel
industry
because
they
believe
the
hotel
industry
is
going
to
resume
and
and
recover
the
the
regional
mall
space
with
the
cmbs
raiders
like
fitch
and
moody's
are
saying
hey.
J
We
believe
this
is
a
permanent
structural
decline
in
the
income
and
we're
seeing
valuation
write
downs
in
these
cmbs
assets
of
you
know,
30
to
40
percent
for
regional
malls.
So
there
have
they
have
these
things
appraised
frequently
and
they
they
update
their
analysis
used
to
be
you
know.
Cmbs
was
one
of
the
only
ways
to
get
them
all,
financed
if
you're
a
b
property
and
going
downhill
from
there
you're
not
going
to
get
cmbs
financing
right
now,
but
those
those
assets
are
stuck
in
these
portfolios.
J
Nonetheless,
and
that's
what
folks
like
fitch
and
moody's
that
are,
you
know
the
guys
that
rate
the
financing
that's
used
for
these
properties
are
saying
about
the
regional
malls.
So
you
know
my
perspective
is
hey
these
guys
know
a
heck
of
a
lot
more
about
the
mall
space
than
I
am,
and
they're
they're,
considering
everything
in
in
the
mix
they're
looking
at
the
online
they're.
J
Also
looking
at
competition
from
big
box
discount
retailers,
I
mean
I
was
doing
a
home
depot
a
few
months
back
and
you
know
those
guys
are
up
25
in
their
sales
year
over
year.
Well,
you
know
you're
you're,
looking
at
department
stores
at
the
subject,
property
that
were
down
20
or
30
percent
in
their
sales,
and
you
know,
I
think
I've
you
know
has
pointed
out
that
all
the
anchor
tenants
are
still
there.
J
Well,
you
know
pennies
just
got
out
of
bankruptcy
and
they
were
bought
by
brookfield
and
simon
to
you
know,
still
maintain
occupancy
at
their
regional
malls.
The
if
you
read
on,
I
have
my
other
report
up
here.
It's
a
page
109
of
my
report.
I
know
if
you
can
give
the
sbe
number,
but
you
know
I
discussed
some
probabilities
of
bankruptcy
in
the
next
two
years.
You
know,
macy's
is
projected
at
a
38
probability
of
bankruptcy.
J
Jcpenney,
just
even
after
they
emerged,
is
projected
at
a
48
probability
of
bankruptcy.
So
I
mean,
I
guess,
that's
a
chapter
22
I
I
don't
know,
but
the
the
the
risk
is
being
reflected
in
the
market
space
and
it's
it's.
It's
impacting
the
capitalized
income
stream
and
the
outlook
that
that
the
market's
seen
I
mean
if
y'all
go
back
to
your.
I
know
you
got
a
few
appraisers
on
the
board
and
remember
the
first
course
we
took
it
was
the
anticipation
of
future
benefits
is
what
you
know
dictates
where
the
property
is
going.
J
E
So
as
I'm
looking
at
the
the
income
projection
summary
on
page
542,
what
you're
suggesting
is
that
this
trend
that
started
out
at
with
a
net
income
in
2017
of
14
million
three
dropping
to
12
through
12,
4,
12
3
and
then
10
2.
E
The
this.
This
10-2
number
is
really
setting
the
new
baseline
and
that
the
trend
trend
will
continue
a
pace
from
there,
with
with
no
recovery
back
to
the
kind
of
the
historic
trend
line
that
this
is
this.
This
decline
of
17
is
a
naturally
occurring
systemic
problem
that
we're
going
to
assume
that,
as
the
declines
continue,
this
is
our
new
baseline
that
we
are
not.
You
know
from
from
looking
at
this
we're
not
going
to
go
back
and
assume
that
there's
going
to
be
any
recovery
from
covet.
E
J
I
think
I
think
you
know
an
important
thing
that
carolyn
pointed
out,
and
it's
you
know
applicable
here.
Is
you
have
a
a
lot
of
power,
centers
and
retail
centers
in
that
immediate
area
she
mentioned,
you
know
walmart
costco,
home
depot.
You
know
all
those
and
you
have
to
wonder.
Okay,
they've
they've
experienced
a
little
increase
in
vacancy
too
at
some
of
those
centers,
but
you
know
if
you're,
if
you're
an
expiring
tenant
at
sunset
galleria
do
you
think?
J
Maybe
you
want
to
go
to
where
the
anchor
is
experiencing
a
you
know,
an
upward
tick
or
a
strong
upward
tick
like
a
home
depot
or
lowe's
in
sales
revenue.
Or
do
you
want
to
stick
around
in
a
regional
mall
where
you've
got
20
30
40
percent
declines
in
revenues
year
over
year?
In
that
same
environment,
I
think
once
those
leases
expire
excuse
me
once
those
leases
expire
they're
going
to
have
a
hard
time,
maintaining
pricing
power
in
comparison
to
the
community,
centers
and
power
centers
that
populate
that
entire
immediate
area
around
sunset
galleria.
J
E
I'm
not
sure
charlie,
do
you
have
a
copy
of
the
the
entire
sbe
file
that
includes
the.
E
E
To
page
823-
and
I
know
this
is
merely
one
piece
of
information,
but
we've
got
three
or
four
pages
from
the
price
waterhouse
survey
for
whatever
value.
What
you
want
to
attribute
to
that,
I'm
wondering
if
you
might
want
to
provide
some
context
for
your
13
percent
cap
rate
versus
the
information
that
that
corpz
is
presenting
for
the
various
retail
components.
One
of
the
things.
One
of
the
pages
that
I
used
to
refer
to
in
the
corpus
or
pricewaterhouse
was
the
matrix
of
of
asset
quality.
E
That's
not
presented
here,
but
they're
they're
reporting
cap
rates
on
average
in
the
six
to
seven
percent
range
for
these
asset
classes,
but
possibly
not
qualities,
and
I'm
wondering
if
you
might
be
up
to
kind
of
addressing
those
differences.
J
Sorry,
I
must
maybe
I
accidentally
muted
myself.
Okay,
if
you
look
at
that
page
and
I
think
sean
also
brought
this
up
up
at
the
upper
right
corner,
you'll
see
that
the
you
know
they
rate
the
a
plus
the
a
and
the
b
plus
properties.
You
know
the
b
plus
properties
might
have
had
a
little
little
condition,
or
maybe
maybe
a
vacancy
or
something,
but
these
are
in
strong
markets
with
the
highest
incomes
and
the
highest
profile.
J
J
So
if
you're,
b
plus
I
I
have
it
in
my
report,
but
you're
going
to
be
well
north
of
where
the
subject
that
is
currently
performing
at
on
sales
per
square
foot-
and
I
I
always
in
fact
I
just
got
a
review
last
week
from
a
bank
reviewer
who
had
a
you
know,
had
some
good
points.
We
had
kind
of
a
mid-range
asset.
It's
you
know,
it's
questionable
whether
it
was
institutional
profile
or
not
and
and
he's
like
you
know.
J
J
But
if
you
know
the
history
of
the
pwc
report,
it's
really
more
geared
towards
institutional
asset
qualities,
and
you
know,
I
think,
once
you
start
getting
to
the
b
and
you're
going
downhill.
The
c
you're
really
not
capable
of
getting
cmds
financing
and
you're,
probably
not
going
to
be
considered
in
that
institutional
quality
asset
profile.
If
I
could,
let
me
let
me
direct
you
to
where
I
have
it
in
my
report.
If
you
give
me
just
a
second
here,
I'm
trying
to
do
this
quickly
on
the
fly
I'll,
give
you
the
sbe
number.
J
505,
for
example,
that's
the
new
mark,
knight,
frank
analysis
that
I
was
able
to
acquire
a
copy
of
that
indicates.
You
know,
what's
happening
in
a
very
limited
spectrum
for
b
or
lower
grade
mall
transactions.
Right
now
I
mean
essentially
it's
almost
impossible
to
finance
these
so
now,
you're
going
to
have
to
have
an
equity
investor
or
some
other
specialty
asset
purchaser
buy
something
that's
not
in
the
highest
grade
categories;
you're,
just
not
going
to
see
loans
made
on
that
sort
of
product.
J
Asset
classes
fall
based
on
the
prices
per
or
the
sales
per
square
foot.
If
you
see
the
inline
tenant
sales
on
page,
sp,
507
or
115
of
my
report,
I
agree
with
that
table.
I
think
it's
pretty
accurate.
The
subject
right
now
is
actually
performing
in
the
class
c,
but
granted
it's
you
know
it's
due
to
covid,
but
the
question
becomes:
is
the
market
anticipating
that's
a
permanent
structural
condition,
or
is
that
a
temporary
condition
that's
going
to
research?
J
If
you
read
the
latest
pwc
emerging
trends,
I
mean-
and
I've
never
seen
this
before
I
used
to
work
with
coopers
and
vibrant
before
they
merged
with
pwc
and
I've
never
seen
them
be
this
pessimistic
ever
they
ranked
regional
malls,
abysmal
on
the
development
prospects
and
closer
to
abyss,
mold
of
fare
on
the
investment
prospect.
So
I
mean
it's
really
it's
the
worst
of
the
worst.
J
If,
if
you
read
that
objective
source
too,
so
all
I'm
saying
is,
I
think
these
these
players,
you
know,
know
a
few
things
about
the
market.
If
you
page
down
a
little
bit
further
on
pages
sp,
509,
5010
510,
that's
the
analysis
we
obtained
from
green
street
on
their
their
database
and
ranking
of
the
subject,
property
and
that's
you
know
they
had
a
12.9
percent
cap
rate
conclusion
for
the
subject
gallery
at
sunset.
A
Do
you
know
any
more
about
what
green
street's
opinion
or
scope
is
based
on?
Is
it
something
they
provide
to
every
mall
and
their
opinion,
or
do
they
actually
dig
into
this
property
and
understand
the
rent,
rolls
the
tenancy
location
and
offer
an
opinion
of
cap
rate
based
on
a
more
detailed
scope
of
services.
J
I
you
know,
obviously
I'm
not
an
employee
of
green
street.
I
did
call
over
there
to
you
know
get
their
take
on
that.
One
of
the
guys
I
talked
to
says
they
generally
put
these
out
on
a
regular
basis.
It
may
be
you
know,
as
as
they
can
get
to
it,
but
typically
at
least
once
a
year.
J
I
don't
believe
that
they
do
it
every
single
quarter,
but
you
know
again,
I'm
speaking
from
just
a
cursory
conversation
with
the
green
street
folks.
I
do
know
that
they're
pretty
well
respected
in
the
industry
and
a
lot
of
mall
operators
use
and
subscribe
to
their
figures
and
use
it
for
their
own
in-house.
J
Operations,
decisions.
A
At
this
point,
let's
close
the
hearing
and
let's
deliberate
amongst
ourselves
where
I'm
at
overall
is
very
challenging.
I
think,
to
operate
a
regional
mall
today,
no
question
about
that.
We
get
into
this
question
as
I'm
really
seeing
here
two
different
things:
I'm
looking
at
one
net
income's
falling
every
year.
So
it's
what
income?
A
Do
you
choose
to
capitalize
at
what
rate
there's
an
inverse
relationship
between
higher
cap
rate
higher
risk,
but
the
price
if
you're
capitalizing
a
higher
income
higher
lower
cap
rate
type
of
thing,
lower,
lower
income
higher
cap
rate?
A
The
second
is:
are
we
seeing
enough
signs
here
relative
to
the
comparables
that
were
presented,
that
this
is
right
for
further
reduction?
And
I
don't
know
if
I'm
seeing
them
yet
with
anchors,
leaving
with
income
substantially
down
the
2020
income
of
9.8
million,
still
significantly
above
the
assessor's
projection
of
income
of
8.5
million,
roughly
in
one
of
the
toughest
environments
still
performing,
I
mean
relatively
well
with
all
things
considered.
So
is
this
something
where
more
evidence
needs
to
be
presented
relative
to
reduction
in
income
tenant
anchors,
leaving
before
a
higher
cap
rate,
is
appropriate.
E
So
when
I
look
at
it,
I
look
at
the
you
know.
I
do
think
that
2020
was-
and
I
I
just
have
this
feeling-
that
it
was
anomalous
with
with
the
the
pandemic,
and
I
I
I
would
be
tempted
to
attack
this
if
I
was
appraising
it
in
the
same
manner
that
some
of
the
ones
we
viewed
yesterday
were
attacked,
where
we
can't
we
developed
a
stabilized
income
based
upon.
E
Maybe
the
the
income
projection
or
the
income
history
for
17,
18
and
19
is
set
forth
on
page
542
and
then
do
a
a
a
separate
deduction
for
the
impact
of
of
covid
on
the
the
instant
2020s
income
and
how
that
would
you
know,
be
resolved
over
time
to
capitalize
the
2020
income
into
perpetuity.
I,
the
17
decline
in
my
in
my
mind,
I
don't
think
is
actually
does
the
reset
it
may,
but
I
I
just
have
this
feeling
that
that,
as
the
the
world
recovers
a
little
bit
that
we
may
I
would.
E
A
I
agree:
I'm
gonna
float
something
to
get
your
ideas,
and
this
is
high
level.
How
I
looked
at
it.
I
adopted
the
appraiser's
net
income
of
a
little
over
10
million
his
projection.
I
don't
think
it's
unreasonable.
I
think
that
there's
arguments
but
where
I
struggle
is
cap
rate
and
I
look
at
that
verse.
A
There
is
significant
risk,
but
11
cap
rates
still
high
and
if
they
start
losing
anchor
tenants
start
having
further
tenancy
not
coming
through
the
door
or
increased
vacancy,
then
maybe
we
start
going
higher,
but
I
just
don't
see
that
risk
yet
today
and
based
on
the
data,
that's
in
there
is
11
unreasonable
in
my
mind,
no.
E
How
do
you
reconcile
that
to
the
sales
that
the
appraiser
presented
on
page
505,
which
are
all
similar?
You
know
similar
magnitude?
You
know
I
would
lean
into
those
where
the
the
total
square
footage
is.
You
know,
probably
I'm
looking
at
I'm
not
going
to
do
the
average,
but
the
average
looks
to
be
someplace
in
the
half
million
square
foot
range.
E
A
And
what
I
heard
testimony
to
is
all
of
those
have
lost
anchor
tenants
where
our
subject
hasn't
and
that's
where
I
drew
a
clear
distinction,
because
you're
operating
one
of
these
properties,
you're
buying
it
and
some
of
your
anchors
are
gone,
that's
incredibly
difficult
to
attract
new
tenants,
and
that
puts
you
in
a
different
risk
class
than
the
subject
who
still
has
all
their
anchors.
There
may
well
lose
some
in
the
future,
but
they
haven't
to
date,
and
I
think
that
makes
those
sales
dissimilar.
That's
how
I
looked
at
it.
E
A
E
A
At
10
cap-
but
we
just
don't
know
enough
about
some
of
those
comparables,
but
when
I
it
was
the
assessor
that
offered
the
information
they
dug
into
it,
and
it
wasn't
rebutted
anyway
that
all
of
those
had
lost
their
anchors.
That
was
what
the
discussion
turned
on.
In
my
mind,.
E
A
So
carol
offered
that-
and
I
have
some
questions
relative
to
it,
because
I,
but
it
is
it's
very
challenging.
No
doubt
this
is
a
very
challenging
environment,
but
as
income
continues
to
go
down,
a
higher
cap
rate
isn't
always
appropriate
because
you're
recognizing
that
risk
as
income
falls
and
that
leads
to
a
lower
appropriate
cap
rate.
In
my
opinion,
well.
E
E
I
think
it
was
the
ellwood
formula
where
there's
a
a
component
of
return,
that
is
future
appreciation
or
depreciation,
and
when
you've
got
future
depreciation,
then
it
has
to
be
reflected
in
a
in
a
higher
cap
rate.
And
if
we're
looking
at
at
an
income
trend,
that's
downward,
then
in
order
to
get
the
the
ultimate.
You
know
over
a
protracted
holding
period
to
get
the
returns
that
you
demand.
You
have
to
even
on
a
property.
E
That
is
I
I
don't
want
to
stay
stabilized,
because
that
gives
the
wrong
connotation
but
is
living
in
the
environment
is,
is
performing
in
in
the
appropriately
given
its
context,
albeit
in
a
declining
trend
to
get
the
returns
that
you
demand.
A
And
it
goes,
does
it
ripe
to
me
because
tenants
are
staying?
Some
of
it
might
be
a
contract
issue
where
they
just
can't
get
out
of
the
lease,
but
a
lot
of
those
leases,
the
ones
I've
seen
for
mall
tenants,
there's
out
clauses
for
them
and
people
are
choosing
to
stay
because
they
believe
in
a
brighter
day,
and
if
this
changed
the
property
we
started
to
see,
my
litmus
test
would
be
increased
vacancy
and
that
becomes
an
insane
trend.
A
This
becomes
a
lot
riskier,
but
today
the
income
generated
in
2020,
I
think,
speaks
volumes
and
the
fact
they're
able
to
go
to
percentage
only
secondary
tenants
and
stealth
people
want
to
come
in
and
lease
space
and
they're
able
to
generate
income.
All
things
considered,
I
don't
think
they
did
bad
in
2020
relative
to
the
broader
market.
A
Yeah,
my
understanding
is,
you
have
a
lot
of
cases
anchors,
not
paying
there's
a
lot
of
renegotiation
that
went
on.
There
were
a
lot
of
tenants
and
a
lot
of
malls
that
just
chose
to
walk
away.
They
have
the
ability,
through
a
gross
sales
clause,
something
else
to
close
up
shop
and
walk
away.
These
are
very
sophisticated,
smart
tenants
and
they
have
the
capacity
to
decide
what's
in
the
best
interest
and
they're
choosing
to
date
to
stay
in
the
small
by
and
large,
and
that
spoke
to
me
a
lot.
E
G
Nah
happy
to
do
so,
and
so
my
initial
inclinations
are
that,
as
you
look
at
the
trend,
you
mean
again
as
we've
all
discussed.
G
Retail
outlets
for
a
number
of
years,
in
fact,
have
been
on
a
decline.
I
do
believe
that
2020
does
have
a
bit
of
an
anomaly
in
that
you
have
a
three
to
four
month
period
where
you
had
zero
to
you
mean
no
business
frankly,
but
with
that
I
mean
I
do
agree
that
there
are
certain
types
of
stores
that
are
unique
and
even
the
accessor
spoke
to
that.
Like
jury
stores
are
very
unique
as
a
person
who's
bought
jury.
G
Before
you
know
it's
one
of
those
things
that
you
actually
usually
want
to
see,
and
so
you
mean,
I
think,
you'll
see
that
you'll
have
retail
the
space
that'll
continue
there.
I'm
also
I'm
influenced
by
just
kind
of
the
general
business
practices
of
you
know
and
again,
not
to
pick
a
retail
brand.
G
But
you
tend
to
see
guests
and
h
m
and
things
they
want
to
be
close
to
each
other,
because
people
will
go
into
this
store
and
then
go
into
that
store
versus
maybe
per
se,
move
next
to
a
home
depot,
as
we
kind
of
heard
represented,
and
so
my
inclination
is,
I
am
leaning
toward
reduction,
but
I
am
leaning
toward
a
very
slight
reduction
in
recognizing
that
the
this
is
a
very
difficult
asset.
G
If
I
mean
from
an
investment
perspective,
if
somebody
walked
up
to
me
personally,
asked
me
if
I
wanted
to
get
into
a
mall,
I
might
say
no
so
so
I'm
influenced
influenced
by
that.
But
I
do
believe
it
really
does
kind
of
come
down
to
as
your
discussion
is
to
cap
rate
and
how
we
can
adjust
that
in
order
to
make
it
equitable
and.
G
That
we
are
here
for
today,
and
we
recognize
that
tomorrow
being
next
year
may
be
a
very
different
story.
But
I
mean
we
have
to
be
confined
by.
I
mean
the
facts
that
we
have
in
front
of
us
today
and
not
necessarily
trying
to
read
the
tea
leaves.
E
So
ty,
how
would
you
mechanically?
How
would
you
get
to
a
number
if,
with
the
information
that
we
have
in
front
of
us,
you
know
one
of
the
criticisms
the
board
has
had
in
the
past?
Is
that
we
kind
of
pull
these
notes?
E
You
know
there
have
been
occasions
where
we've
pulled
numbers
out
of
out
of
you
know
tried
to
make
this
out
of
whole
cloth,
and
so
you
know,
one
of
the
things
that
we've
we've
tried
to
do
is
is
put
together
a
a
reasonable
reason
to
explanation
for
the
number
that
we
select
and
so
do
you
have
a
thought
process
that
we
can.
We
can
go
through
mechanically
to
get
to
a
number
that
you
felt
comfortable
with.
G
I
would
say
that
I'm
still
kind
of
working
that
out,
but
I
think
similar
to
what
your
suggestion
was
yesterday
and
kind
of.
I
think
almost
what
I
heard
you'd
say
today
is
being
able
to
look
at
17,
18
and
19
and
appreciate
that
there's
been
some
level
of
decline
in
treating
2020
as
an
anomaly
and
so
whether
that
is
meeting
the
2020
and
2019
number
kind
of
halfway,
or
something
like
that.
G
I
do
believe
that
there's
some
value
in
taking
a
look
and
again
not
inventing
a
number
but
trying
to
use
logic
and
reasonable
conclusion
to
get
someone.
A
A
A
They
used
a
nine,
an
appropriate
capitalization
right.
I
just
want
to
get
the
figures
out.
Is
you
start
to
think
through
tyree
what
your
emotion
may
be,
but
I
want
to
get
glenn's
thoughts
as
well.
Where
are
you
at
glenn.
C
I'm
lost
in
the
woods,
but
other
than
that.
I
think
what
we're
trying
to
be
asked
to
do
is
to
project
the
recovery
from
the
amazon
impact
and
I
think,
we're
all
trying
to
be
as
objective
as
possible,
but
there's
a
reasonable
level,
so
maybe
someplace
in
between
the
two
is
the
appropriate
place
to
be.
I
don't
have
a
crystal
ball,
I
don't
know
so.
H
C
A
I
might
entertain
and
I
want
to
get
you
guys.
Thoughts
is
if
we
use
the
assessors
net
income,
they
use
a
nine
percent
capitalization
rate.
Maybe
a
10
would
be
more
appropriate.
I
think
there's
data
in
there.
That's
the
low
end
of
the
chart,
I
believe
on.
Was
it
541
that
sales
chart.
A
B
E
A
But
I
would
feel
comfortable,
I
think,
there's
adequate
data
to
support
10
capitalization
rate
of
the
assessor's
projected
net
income.
E
E
Given
its
history,
I
don't
think
recaptures
allows
an
investor
to
recapture
kind
of
the
systemic
decline
over
time
where
that
extra
one
percent
it
may
in
the
cap
rate,
you
know,
diminishes
the
value
by
roughly
10,
but
still
it.
It
seems
as
though
it's
within
the
range
of
of
information
that's
available
to
us.
A
Yeah-
and
I
do
is-
I
think
this
as
I
think
this
through
it
is
trying
to
catch
a
falling
knife,
and
we
don't
know
what
the
future
is
going
to
hold,
and
I
agree
with
tyree's
point:
it
could
be
completely
different
next
year.
If
they
lose
a
couple
anchors,
they
have
tenants,
start
non-renewing
risk
profile
and
the
at
that
point
maybe
a
13
14
50
cap
rate
is
appropriate.
Based
on
what
we
know
today,
I
think
it's
a
reasonable
path
forward
to
use
the
assessor's
income
and
then
capitalize
it
at
a
10
rate.
A
E
That
was
okay,
so,
mr
chairman,
in
case
number
21
143.
E
I
would
move
that
based
upon
a
review
of
the
file
and
after
considering
the
testimony
herein,
that
that
we've
heard
that
we
reduce
the
value
of
the
property
to
84
million
or
85
million
dollars,
is
that
right,
yeah
85
million
dollars,
which
is
the
net
operating
income
projected
by
the
clark
county,
assessor's
office
of
8
million
499
575
dollars
and
apply
a
10
capitalization
rate,
which
is
100
basis
points
higher
than
the
base
the
capitalization
rate
used
by
the
assessor,
but
is
intended
to
reflect
the
returns
required
for
a
declining
of
an
asset
class
that
is
in
in
decline.
E
Doing
that
math.
We
end
up
with
a
value
of
84
million,
nine
hundred
and
ninety
five
thousand
seven
hundred
and
fifty
dollars,
which
I
would
round
to
85
million
dollars.
A
B
Thank
you,
mr
chairman,
under
agenda
item
g
for
possible
action
appeals
from
the
action
of
the
county
board
of
equalization
pursuant
to
nrs
361-400
for
the
21-22
secured
role,
2021,
unsecured
role.
We
are
going
to
call
case
number
21129,
the
shower
family
trush,
our
stephen
and
julie.
It
is
residential
property.
C
Jesse
cruz
clark,
county
assessor's
office
case
21,
129,
first
off
I'd,
like
to
request
pages
118-126,
be
admitted
from
the
record
as
they
are
not
part
of
this
case.
Additionally,
I
would
like
it
appears,
there's
new
evidence
on
pages
4
through
10,
which
were
available
at
the
time
of
hearing.
However,
they
were
not
provided
so
I'd
like
to
object
to
that
as
well.
A
B
B
A
So
it
sounds
to
me
like
we
met
one
of
the
two
which
was
submitted
in
writing
at
some
point.
This
came
in
I'm
going
to
guess
it
was
with
your
appeal
to
the
state,
but
the
second
one
is:
it
could
have
been
reasonably
available
as
of
the
date
of
the
county
board
hearing
and
it
looked
like
it
was
dated
in
2020,
which
would
have
been
available
at
the
time
of
the
county
board
so
before
we
make
a
decision
as
a
board
relative
to
if
we
should
or
shouldn't
accept
it.
K
A
E
Yeah
on
page
130,
which
is
the
minutes
of
the
the
county
board
hearing
that
there
is
a
discussion
about
the
the
total
cost,
and
so
I
don't
know
that,
including
this
additional
information
or
excluding
it
really
changes
anything.
It's
further.
Documentation
of
a
number
that
is
is
presented
at
the
county
board.
E
I'm
just
saying
that
it's
it,
it's
really
just
backing
backup
information
for
something
that
was
already
discussed,
and
so
I
don't
think
I
think
that
including
it
in
the
in
our
consideration
having
presented
and
including
it
really
probably
doesn't
change
anything,
and
so
it
would
be
my
inclination
to
include
it
to
allow
it
is.
E
I
move
that
we
include
the
information
that
is
presented
in
those
earlier
pages
page
four
through
seven
or
so.
G
G
Comment
yeah,
just
in
the
way
of
comment,
I
would
like
to
concur
with
the
analysis
of
the
motion.
I
believe
that
this
is,
as
we
can
see
on
the
record.
It
was
discussed,
and
so
this
would
only
be
merely
just
be
able
to
substantiate
what
was
discussed
at
the
record
and
not
actually
anything
new
that
was
not
contemplated
at
the
initial
at
the
initial
hearing.
So
great.
E
Let's
address
the
other
exclusion,
which
is
at
the
end
of
the
file,
I
think
it
is
starting
on
page
sbe
126.,
it's
addressing
a
completely
different
property
yeah.
B
A
C
A
Clarifying
question
there:
21
supplemental
would
have
a
data
value
of.
A
Correct,
okay
and
then
the
subsequent
year,
21
22,
would
be
january.
1St
2021.,
correct,
okay.
I
just
want
to
make
sure
the
record's
clear
and
with
that
petitioner
first
question
for
you:
were
you
sworn
in
this
morning?
Yes,
okay,
great,
please
proceed
and
you've
got
15
minutes
to
present
yourself.
K
Thank
you,
I'm
just
asking
that
my
taxable
value
be
per
the
definition
for
what
I
saw
in
the
nrs
law
and
the
clark
county
that
gov
website.
It
just
says
the
land
plus
the
current
replacement
cost,
which
I
provided.
So
it
would
be
literally
the
1.253
plus
my
cost
of
the
land
which
the
total
is
1.878890,
and
I
provided
the
information
on
that.
You
quite
honestly
impossible
to
go
off
the
appraisal
value
because
it
was
done
in
appraisal
values.
A
Anything
further
are
you
available
for
questions?
Absolutely?
Okay,
as
I
look
through
the
costs
here,
was
there
a
general
contractor's
fee?
Yes,.
A
K
A
K
K
E
C
So
we
don't
typically
take
builders
cost
right,
the
on
page,
86,
sales,
analysis
of
20
21
tax
year,
the
sales
analysis
utilizes
five
recent
comparable
sales.
C
All
from
the
subject
subdivision
comparable
five
is
an
all
from
an
older
part
of
the
same
separate
subdivision
and
assessor
recommendation
for
the
21
21
year
is
holding
value
at
two
million
one
hundred
and
thirty
one
thousand
six
hundred.
Eighty
eight.
C
Jamie
jacobs
for
clark,
county,
jamie
j,
a
y
m
e
jacobs,
j,
ac
obs-
I
just
wanted
to
kind
of
further
emphasize
the
the
statutory
requirement
to
use
marginal
swift
costing
service,
as
it
is
stated
in
the
law
and
that's
a
couple
different
reasons.
Obviously,
costs
continue
to
go
up
typically
year
over
year,
so
even
though
the
petitioner
specified
this
cost
for
2019.
Obviously
our
first
valuation
date
is
january,
1st
2020
and
then
the
subsequent
year
is
january.
1St
of
2021.
C
So
utilizing
this
marginal
swift
costing
service.
The
costs
are
adjusted
year
over
year
as
well
as
for
equity.
You
know
because
some
people
might
do
certain
things
with
their
house
is
different
and
might
cost
slightly
different
than
others
for
one
administrative
nightmare
to
just
utilize
what
people
pay
and
costs
for
the
properties,
and
so
by
utilizing
a
standardized,
martial
and
swift
costing
service.
It
also
provides
equity
throughout
the
county,
so
the
the
big
factor
with
residential
costs,
the
handbook
that
we
use
for
marshall
and
swift
is
the
quality.
C
So
in
their
standard
residential
handbook,
it
goes
from
low
quality,
all
the
way
up
to
excellent
quality,
and
then
beyond
that,
then
they
have
a
high
value
home
manual,
which
would
be
above
and
beyond
that
and
a
lot
of
the
homes
in
mcdonald,
highlands
and
mcdonald.
Ranch
are
out
of
the
exceptional
home
or
high
value
home
manual,
but
we
actually
are
the
quality
that
we
apply
to.
The
subject
is
still
within
that
first
manual
of
the
excellent
plus
quality.
E
Since
we're
combining
these
two
case
or
the
two
tax
years,
there's
a
substantial
increase
in
the
land
value
between
2000,
20,
21
and
21
22..
Can
you
walk
us
through
the
for.
C
Okay
for
the
21
22
value,
we
would
like
to
stay
with
the
the
county
board
and
the
county
board
did
reduce
the
land
to
625.
okay,
so
the
total
on
the
2122
is
2
million
128
829.
C
36
was
the
sales
analysis,
okay,.
C
So
to
answer
that
question,
so
the
board
kind
of
addressed
the
land
issue
and
obviously
the
petitioner
is
based
on
the
appeal
form
for
the
state.
He
didn't
even
mention
the
land.
So
as
far
as
we're
concerned,
the
land
portion
has
kind
of
been
settled
by
the
county
board
because
they
did
adjust
the
land
value
and,
of
course,
the
previous
year
for
the
supplemental
year,
the
the
land
wasn't
appealable
because
it
had
already
been
noticed
as
a
secured
role
value
and
they
couldn't
appeal
that.
K
A
E
A
C
E
A
That
is,
and
I
think
the
minutes
are
reflected
at
that
2.1
million.
This
is
a
2.25
million
dollar.
E
But
we've
got
two
two:
two
dates
of
value
or
two.
E
C
C
So
what
we've
seen
over
the
past
few
years
since
the
recession
is
an
increase
in
cost
year-over-year
and
that
varies
obviously
again
on
the
quality
but
typically
have
to
look
at
the
numbers.
I
think
one
year
was
like
five
percent
and
then
this
last
year,
eight
percent,
so
it
does
increase.
I
don't
certainly
see
the
cost
going
down
and
I
don't
know
if
you
shopped
recently
at
home
depot,
but
you
know,
prices
shot
up
30,
you
know
300
percent,
so
it's
so
yeah
they're
continuing
to
go
up
and
that's
why
we
utilize
this
cost.
C
The
marginal
swift
cost
method
is
because
it
does
account
for
the
increase
in
cost
year-over-year,
rather
than
locking
into
some
costs
that
a
particular
owner
paid,
and
it
just
stays
that
way.
No,
we
use
the
costing
method
as
for
equity
purposes
as
well.
E
K
When
I
appealed
it,
I
mentioned
that
again
my
car,
I
kind
of
feel
had
I
bought
the
house
from
directly
from
the
builder
and
paid
1.89
million
dollars
for
1.9
million.
I
would
be
assessed
at
1.9
million
dollars
and
I
I
would
mention
that
it's
on
the
video
that
one
of
the
board
members
said
well,
you
should
have.
Did
that
then
shouldn't
you.
K
It
is
on
the
video
by
the
way
you
know
I
said.
Obviously,
if
I
had
known
that,
because
I
feel
that
realistically
I
bought
it,
I
should
pay
for
what
I
bought
it
for,
and
I
built
it
exactly
for
this
amount
I
paid
590
for
the
land.
I
should
be
taxed
at
590
for
the
land.
I
built
it
for
1.253
million
dollars
and
I
should
be
taxed
at
that
assessment.
There
are
other
houses
in
there.
There
is
one
right
down
the
road
that
was
assessed
exactly
at
that
as
well.
K
So
I
I
feel
that
it
we're
not.
I
get
we're
not
talking
gigantic,
but
this
is
setting
my
base
on
this
as
well.
This
is
my
house.
I
occupy
it
don't
plan
this
on.
I
didn't
build
it.
It
was
also
mentioned.
Well,
how
do
we
know
you
didn't
build
it
for
profit?
I
didn't
build
it
for
profit
and
I
I
didn't
know
nobody
knows
that
lumber
and
values
are
going
up.
Nobody
builds
again.
I
didn't
build
it
to
go.
Oh
my
gosh,
I'm
going
to
get
x
amount
of
equity
into
it.
It's
also
mentioned.
K
E
The
the
model
for
nevada
taxation
is
the
current
market
value
as
of
the
date
of
of
value,
the
the
lean
date
which,
in
this
case,
let's
assume
the
2122,
which
is
january
21
january
of
2021
the
market
value
of
the
land
at
that
time,
irrespective
of
what
you
paid
for
it,
the
market
value
at
the
time
for
land
to
be
put
to
the
use
that
you
put
it
to
so
it's
a
residential
lie.
That
was
it's
it's
being
used
as
a
residential
lot.
E
E
No
but
the
process
the
process
is
important
because
that's
what's
set
set
out
in
statute,
so
it's
the
market
value
of
the
land
at
the
data
value,
plus
the
depreciated
replacement,
cost
new
of
the
improvements
based
upon
the
calculations
for
for
mass
appraisal,
using
marshall
valuation
service.
There
are
people
who,
for
whatever
reason,
end
up
paying
more
than
marshall
valuation
service.
There's
people
who
pay
less
than
marshall
valuation
service,
but
it
because
the
the
the
goal
is
to
tax
people
equitably
across
this,
the
entire
range
of
properties.
E
They
use
the
standardized
cost
estimating
system
that
benefits
some
play,
some
people
in
and
operates
to
the
detriment
of
others
and
with
new
construction.
There
are
going
to
be
differences.
The
cost,
estimating
publication
is
sort
of
an
average
sort
of
a
trend,
but
it's
it's.
E
E
For
estimating
that
the
replacement
costs
knew
of
the
improvements.
A
The
difference
and
that's
an
unfortunate
difference
in
this
case,
some
of
the
time
it
benefits.
Sometimes
it's
a
burden,
it's
what
a
typical
person
could
expect
to
achieve
and
that's
why
they
use
an
index
to
set
essentially
to
prevent
this
exact
problem
of
some
of
the
time.
It's
not
it's
going
to
cost
a
little
bit
less
than
the
average
cost.
Sometimes
it's
going
to
cost
a
little
bit
more
to
build
a
house.
A
They
use
one
service
to
set
that
figure
for
replacement
cost,
and
that
is
marshall
valuation
service
and,
if
someone's
able
to
build
a
house
for
less
for
whatever
reason
that
may
be,
there
just
isn't
anything
in
statute
that
allows
for
that
benefit,
to
also
translate
to
a
tax
perspective,
because
they're
using
the
average
cost
based
on
a
national
index,
they.
A
A
Further
will
specify
them
to
use
marshall
and
swift
as
a
method
to
establish
replacement
cost
that
is
in
their
statute,
as
what
they
have
to
use
is
my
understanding.
B
A
K
A
Yes,
that's
the
price
of
the
house.
The
builder
would
have
gone
through
the
same
process
where
they
built
that
identical
house
clark
county
isn't
going
to
take
what
the
builder
said
it
cost
to
build.
If
they're
significantly
different
did.
K
A
A
Land
value
and
then
they'd
go
use
marshall
and
swift.
So
if
a
builder
had
built
your
house
and
sold
it
for
1.8
million
all
in
they,
the
assessor
would
have
come
and
they
would
come
in
at
the
same
amount.
Maybe
there
would
be
an
argument,
then,
that
it's
over
assessed
based
on
a
sale
price,
but
we
haven't
crossed
that
bridge
here
and
I
don't
somewhere
in
there
and
you
got
the
benefit
during
rising
construction
cost
time
period
where
you
agreed
to
this.
Prior
to
the
lean
day,
ballot
construction
costs
have
gone
up
substantially.
K
I
don't
think
construction
costs
going
up
matters
on
this
scenario.
Honestly
I
mean
that
that's
that's
beside
the
case.
I
built
it
when
I
built
it,
not
because
I
knew
the
construction
costs
were
going
up
so
yeah,
I'm
asking
for
it
to
be
lowered.
I
mean
it
should
be
quite
honestly
it
it's
not
fair.
In
all
fairness,
it's
not.
K
A
E
E
E
So
the
1177's
got
just
the
reference
to
each
of
those
documents.
But
then
can
you
refer
to
me
to
the
section
that
talks
specifically
about
the
valuation
of
of
real
property,
the
cost
estimates?
And
then
you
know
I'll
accept
the
reference.
But
I
I'm
looking
for
that
specific
calculation
or
reference.
E
So
I'm
looking
I'm
just
going
to
read
this
into
the
record:
real
quick,
nac,
361
128,
subparagraph
2b
for
other
improvements,
the
use,
the
standards
and
the
cost
manuals,
including
modifiers
of
local
costs
published
through
or
furnished
by
marshall,
marshall
and
swift
publication
company
as
they
exist.
On
october
1st
of
the
year
preceding
the
closure
of
the
role
for
the
appropriate
assessment
year.
E
K
A
K
E
Is
is
that
I'm
looking
at
a
table
of
sales
that
appear
to
have
been
provided
or
taxable
values
that
appear
to
be
provided
by
you?
I
think
that
appears
on
sbe,
28,
correct.
K
K
A
Unfortunately,
that's
an
argument:
that's
going
to
be
made,
that's
how
it
has
to
be
made,
because
the
information
has
to
be
in
front
of
us.
We
have
to
make
our
decision
based
on
something
we
have
to
be
looking
at
a
similarly
situated
house
and
say
that
is
in
fact,
similarly
situated.
We've
got
to
give
the
assessor's
office
the
right
to
tell
us
why
that
house
is.
There
is
not
something.
A
Yeah
so,
but
I
mean
that
is
an
argument
that
we
do
here,
we
do
assign
merit
if
there's
merit,
we
make
the
appropriate
decision
there,
but
the
hearing
today
was
over
construction
costs
and
I
it's
the
challenge
is
that
regulation
didn't
give
us
the
ability
to
save
the
less
of
replacement
costs,
new
or
but
you're,
using
costs
or
marshall
and
swift.
K
A
That
happens
if
for
a
lot
of
properties
throughout
the
state,
their
improvement
values
actually
go
up
every
year,
because
they're
going
back
to
marshall
and
swift
and
construction
costs
have
risen.
So
it's
happening
across
the
board.
A
K
K
A
England
to
your
comment:
the
taxpayer
gets
a
benefit
of
the
lower
of
replacement
costs,
new,
less
depreciation,
plus
land
versus
what
the
comparable
sales
indicate.
So
in
this
case,
the
comparable
sales
clearly
indicate
a
higher
value,
but
the
property
owner's
getting
the
benefit
of
the
lower
approach,
which
is
replacement,
costs,
new,
less
depreciation,
which
that's
the
way
it
should
be,
and
that's
our
primary
method
to
establish
value
and
then
any
further
benefit.
A
If
statute
and
regulation
allow
I
want
to
give,
but
I'm
just
not
sure
where
our
hands
are
tied
here
with
statute
and
regulation,
for
how
to
determine
replacement
costs.
Now.
A
K
A
That
no,
what
you're
being
taxed
on
most
likely
the
purchase
price,
is
not
directly
relevant
in
nevada
to
how
you
establish
taxable
value.
What
the
county
is
going
to
use.
Their
primary
approach
is:
what's
the
current
opinion
of
the
land
values
that
changes
every
year,
based
on
sales,
plus
the
replacement
costs
new,
as
determined
by
marshall
and
swift
for
that
year,
less
statutory
depreciation
at
a
percent
and
a
half.
A
So
that's
going
to
determine
the
value
of
your
house
and
what
you
paid
for
and
what
it's
worth
can
be
significantly
different
and
that's
a
burden
for
our
tax
scheme
that
we
have
here
in
nevada.
But
that's
the
one
we
use
and
it
should
be
fairly
applied
throughout
the
state
which
clark
county
is
clearly
fairly
applying
this
methodology
and
what
I'm
seeing.
E
It's
my
thought
that
the
assessor
has
has
conformed
with
statute
in
establishing
the
taxable
value
of
the
property.
I
do
not
believe
that
the
taxable
value
exceeds
the
property's
current
market
value
based
upon
the
information
that's
available,
and
that
holds
for
both
tax
years,
both
the
supplement,
2000,
2021
and
2122,
and
so
I
I
don't
see
an
avenue
or
reasoning
for
a
reduction
based
upon
the
board's
interpretation
of
of
statute.
A
E
A
Mean
I
very
much
understand
here
where
it's
difficult
to
stomach,
having
paid
a
lower
price
than
you're
being
taxed
on,
but
one
of
the
key
variables
is
time
and
that's
been
similarly
applied
throughout
the
county
and
construction
costs
were
going
up
and
for
the
relevant
tax
years
they
have
to
use
what
the
current
cost
data
is
and
and
following
the
statute,
I
don't
see
any
way
to
deviate
from
it.
I
think
it's
pretty
clear.
G
With
the
analysis,
and
again
I
didn't
have
any
questions,
so
these
are
more
comments
for
the
board.
As
we
consider
I
mean
I
think
it's.
It
is
if
known
fact,
that
land
becomes
more
valuable
as
a
services
get
to
their
a
you
mean.
G
As
the
petitioner
said,
you
know
you
have
to
wait
for
the
road
to
get
there
as
sewer
and
all
those
lines,
and
then
the
other
side
of
that
is
scarcity
based
upon
where
those
are
those
are
particular
lots
and
the
land
will
continue
to
appreciate,
as
those
lots
becomes
become
more
scarce.
G
In
addition,
you
mean
the
concept
is
that
we
should
always
have
a
uniform
method
of
how
to
replace
or
how
to
value
things
again.
We
can't
be
dependent
on.
You
means
an
individual's
ability
to
negotiate
whether
a
good
negotiation
are
bad.
You
mean
generally
government
will
not
interfere
with
with
contracts
and
your
ability
to
negotiate
within
that
problem.
G
K
G
But
this
is
where
we
as
a
state
as
a
state,
we
assign
value
on
a
particular
date,
not
on
the
date
in
which
was
built
not
on
the
day
in
which
was
paid
for
we
pick
a
date
and
time-
and
we
say
this
is
a
value
of
the
land
based
upon
our
best
estimates.
This
is
the
value
of
the
replacement
costs
on
our
best
estimates,
and
then
we
have
a
depreciation
cost,
which
is
statutory.
G
I
don't
receive
the
benefit
of
me
actually
doing
that
labor,
because
that
is
the
way
in
which
the
statutes
and
the
regulations
interact
with
one
another,
and
so
having
that
uniform
method
is
really
is
really
important
and
again
sometimes
it
will
sometimes
it
will.
The
pendulum
will
swing
to
the
left.
Other
times
will
spring
to
the
right,
but
the
idea
is
that
you
mean
we'll
always
have
I
mean
a
center
point.
E
I
it
was
built
in
the
early
1970s
and
the
lot
I
think,
was
roughly
five
thousand
dollars
to
purchase
and
I
think
the
house
was
built
for
about
sixty
four
thousand
dollars
and
the
the
in
this
case
the
the
the
problem
is
that
the
the
the
date
that
the
land
was
acquired
and
the
date
that
the
home
was
constructed
is
so
close
to
the
you
know
it's
within
a
couple
of
years
of
the
data
value,
but
if
you
extend
that
out,
then
the
the
inconsistency
of
that
argument,
you
know
the
the
argument
could
be
made
well,
my
house,
my
lot
when
it
was
purchased
was
only
five
thousand
dollars
and
the
cost
of
my
house
was
only
sixty
four
thousand
dollars,
but
it's
not
reflective
of
current
conditions.
E
You
know
for
that
home
to
be
replaced,
the
the
lot
would
be.
You
know,
a
hundred
thousand
dollars
and
the
cost
of
construction
would
be
four
or
five
hundred
thousand
dollars
under
current
circumstances,
and
that's
the
the
way
that
the
tax
regiment
is
set
up
in
california.
It's
different
in
other
states.
It's
different,
but
we've
got
this
very
unique,
absolutely
unique
taxation
scheme
that
that
is
intended
to
provide
and
and
the
the
petitioner
brought
up
a
property
that
we
don't
know
what
property
it
is
there.
G
In
in
terms
of
comment,
I
think
that
I
mean
this
is
a
unique
situation,
and
this
is
a
time
where
you
mean
where
we're
allowed
to
speak
a
little
bit
again.
I
think
that
the
county
did
a
wonderful
job
in
regards
to
making
sure
that
they
follow
the
the
statutes
and
the
regulations
that
were
laid
out
before
them.
G
G
Unless
you
mean
again,
there
was
an
opportunity
to
have
discussion
around
another
property
that
was
similarly
situated,
and
you
mean
again
my
council,
I
shouldn't
say
council
I
mean
the
taxpayer,
has
the
opportunity
to
do
that.
Has
the
opportunity
to
engage
in
those
conversations
with
the
county,
and
you
mean,
I
think
that
if
that
merits,
then
that
should
happen.
But
today
I
believe
that
a
lot
of
discussion
was
was
had
on
this
item.
A
With
that
said,
I
really
appreciate
those
comments.
I
concur
with
them
all
in
favor,
say:
aye
aye,
any
opposed,
say,
nay,
motion
carries
unanimously
jeff.
Please
call
the
next
case.
B
Thank
you,
mr
chairman.
The
next
case
under
agenda
item
g
is
case.
Number
21128
suite
success.
Llc
it
is
multifamily
property
located
within
clark
county.
The
petitioner
is
aaron
ben
schamachen,
who
is
available
on
zune,
and
the
respondent
is
the
clark
county.
Assessor
proper
notice
of
hearing
can
be
found
on
page
65
of
your
packet.
L
The
subject
is
the
manor
suites,
it's
an
extended
state
property
located
at
7230,
south
las
vegas
boulevard,
just
north
of
warm
springs
road
at
the
south
end
of
the
las
vegas
strip.
The
property
contains
259
units
is
situated
on
4.61
net
acres
and
the
improvements
were
constructed
in
2001
and
they're
in
good
condition
for
their
age.
The
amenities
include
a
swimming
pool
and
kitchens
in
every
unit
based
on
the
data.
The
assessor
recommends
no
change
to
the
closed
roll
value
of
thirteen
million
seven
hundred
and
twenty
six
thousand
one
hundred
and
seventy
three
dollars.
A
Thank
you,
petitioner,
on
the
line,
were
you
sworn
in
this
morning.
C
Okay,
thank
you.
My
name
is
aaron
ben
somacon.
I'm
here
on
behalf
of
sweet
success.
Llc
I
work
directly
for
the
owner
of
the
company.
I
do
apologize
if
I
cut
out
at
all
I'll
try.
Hopefully
the
internet
stays
up
during
my
my
speech
here,
I'm
not
submitting
any
new
evidence,
I'm
just
going
to
reiterate
what
I
spoke
to
at
the
local
board
and
hope
that
you'll
reconsider
our
case.
C
C
We
did
not
have
a
lot
of
help
and
we
still
cannot
evict
for
non-payment.
We
are
still
facing
the
cdc
moratorium,
even
though
the
nevada
mordrem
has
ended.
I
did
I
did
show
our
occupancy
and
our
past
due
percentages
in
2019
and
2020
in
the
packet.
I
provided
our
past
due
percentage
is
typically
three
three
percent,
maybe
four
percent
at
the
highest,
and
we
saw
a
15
to
16
percent
delinquency
past
due
percentage
at
the
property
which
is
unheard
of
since
we
were
built
at
all,
so
that
really
decreased
our
revenue
in
2020..
C
I
also
provided
two
two
comparables
on
las
vegas
boulevard.
Our
two
biggest
comparable
properties
are
the
budget
suites
and
the
seagull
select
suites
siegel,
select
being
right
next
door
to
our
property.
We
have
very
similar
clientele
very
similar
units.
Our
market
rents
are
similar.
We
actually
base
our
rent
off
of
off
of
their
comparables
as
well,
and
both
of
their
properties
are
being
assessed
at
fifty
thousand
six,
oh
seven
average,
where
we're
at
fifty
two
thousand
seven.
C
Ninety
two
and
I
did
bring
this
to
the
attention
of
the
board,
as
well
as
the
financials
and
was
just
told
that
that's
not
the
approach
they
were
taking
and
that
there's
sufficient
evidence
with
the
type
of
approach
that
they
were
taking
and
something
they
could
do.
So
I
we
felt
that
our
tactical
value
on
a
terrible
year
that
we
had
should
not
go
up.
It
did
go
up,
290
000.
L
Thank
you.
Let's
address
the
equity
portion.
First,
if
I
may
nrs
361
356
states
that
an
owner
may
appeal
if
the
subject
property
is
assessed
at
a
higher
value
than
another
property
that
has
an
identical
use
with
a
comparable
location.
Inequity
is
kind
of
hard
to
prove
in
commercial
property,
because
square
footages
are
different.
Wall
heights
are
different.
It's
not
like
having
a
residential
house
where
you
both
have
plan
a's
right
next
to
each
other
and
they're
assessed
at
different
values.
L
L
So
the
subject
property
does
have
259
units
her
comp
1
has
316..
Ours
is
the
subject.
Property
is
smaller
and
comp
2,
which
is
a
single,
select
located
right.
Next
door
is
almost
half
the
size
of
hers
and
it's
way
smaller
156
units
and,
as
you
can
see,
on
the
total
gross
building
area,
the
subject-
property
kind
of
falls
right
in
the
middle
of
comp,
1
and
comp
2.
L
the
year
built
we're
built
in
2002,
and
when
I
say
we
I
mean
the
subject:
property
and
the
other
two
are
built
in
2001
and
by
statutory
depreciation,
which
we've
talked
a
lot
of
this
past
couple
of
days
is
1.5
a
year,
so
the
subject
property
does
not
have
as
much
depreciation
by
statute
as
the
other
two.
So
in
other
words,
this
property
is
a
little
younger
same
zoning.
The
land
size
varies
significantly
from
where
4.61
and
comp
1
is
4.87.
L
L
The
price
per
square
foot
based
on
rde,
based
on
cost
for
marshall
and
swift
with
given
various
components
such
as
rank
wall,
height,
roof,
tile,
heating
and
cooling
amenities.
We
come
up
with
for
the
subject
as
74.80
comp.
One
has
a
replacement
cost
new
of
eighty
to
eighty
three
dollars
and
thirty
two
cents
and
comp
two
is
a
replacement
cost
new
of
79.08.
L
The
subject
falls
really
below
that
range.
L
So
when
you
look
at
a
price
per
unit
on
a
replacement
cost
new,
less
depreciation
or
replacement
costs
new,
not
including
the
depreciation,
the
subject
is
assessed
at
thirty
five
thousand
nine,
nine,
seven
comp,
one
thirty,
six
thousand
seven,
twenty
nine
comp
two
is
thirty
334
988
again
we
fall
right
in
the
middle
of
comp
1
and
comp
2..
But
when
you
add
all
those
individual
analysis
together,
we
do
fall
towards
the
upper
end
of
the
range.
L
L
Inequity,
if
you
do,
you
have
any
questions
regarding
the
equity
portion,
because
I'd
like
to
move
to
I'd
like
to
address
aaron's
concerns
about
her
collection
loss.
A
Okay,
question,
and
I
just
want
to
be
clear:
the
land
value
you've
established
is
price
per
unit.
You've
used
17
000
a
unit
for
all
three
of
these.
Yes,
so
land
you
are
identical.
Yes,
it
all
falls
into.
It
is.
A
Okay-
and
it
sounds
like
a
lot
of
the
difference-
relates
to
accrued
depreciation
statutorily
and
the
in
numbers
that
the
petitioner
is
looking
at.
Yes,
okay,.
A
E
Price
per
unit
is
reflected
by
the
is
reflected
in
the
larger
unit
size,
which
I've
not
done
the
the
math
exactly,
but
that
may
relate
to
the
unit
total
unitary
value.
A
And
that
was
my
record,
my
interpretation
as
I
looked
at
it,
but
with
that
any
other
questions
from
the
board
relative
to
the
equity
argument.
No,
please
proceed.
Okay,.
L
So
I
would
like
to
address
aaron's
collection
issues
and
we
absolutely
wholeheartedly
empathize.
They
are
providing
housing
to
a
segment
of
the
area,
residents
which
is
absolutely
needed
and
with
the
state
moratorium
and
the
federal
moratorium
on
evictions,
you
know
landlords
are
struggling.
L
So
we
looked
at
she's,
always
given
me
really
comprehensive
financial
packages
and
if
you
turn
to
page
state
board
page
19,
this
is
manor,
sweets,
actual
profit
and
loss
statements
from
january
to
december.
L
They
have
an
effective
gross
income
of
three
million
eight
hundred
and
seventeen
thousand,
and
I'm
just
gonna
use
round
numbers.
So
three
million
seven
hundred
and
eighteen
thousand
their
expenses
have
always
been
in
line.
It's
a
very
well-run
property
and
my
direct
capitalization
summary
is
on
page
42
of
the
state
board
packet.
L
Let's
play
devil's
advocate
and,
let's
assume
egi
is
the
same
or
potential
gross
is
the
same,
and
let's
do
a
30
vacancy
and
collection
loss.
That's
giving
them
the
benefit
of
the
doubt
of
an
extra
20,
some
percent
for
to
allow
for
collections
using
the
same
ancillary
income,
same
expense,
ratio
and,
let's
cap
it
at
seven
and
then
a
deduction
for
f
e,
I'm
still
north
of
19
million
dollars,
which
still
upholds
the
closed
oral
taxable
value
of
13..
L
Even
if
I
again
go
lower
on
the
occupancy,
giving
it
another
15
20
percent
for
collection
issues,
I'd
have
to
adjust
the
cap
rate
down
to
show
the
upside
potential
in
the
income
stream.
So
again
we
have
that
inverse
right.
We
can't
capitalize
a
unstabilized
property.
We
have
to
reflect
the
growth
in
the
income
with
the
lower
capitalization
rate.
So,
no
matter
how
I
try
to
look
at
it,
you
know
being
fair
and
equitable.
L
I
I
just
can't
get
below
the
13
million
716
and
there
really
was
no
inequity
in
in
in
the
comparables,
because
there's
nothing
truly
comparable
while
they
are
operating
similar.
That's
a
business
decision
so
they're
similar
operations
with
the
extended
stay
model,
they're,
not
identical
properties,.
C
Thank
you
I
I
do
understand.
You
know
what
the
asses
are
saying
and
I
do
appreciate
the
time
she
spent
on
this.
I
do
believe
with
the
budget
suites
property
in
particular.
It
is
a
larger
property.
One
year
older,
I
just
don't.
I
just
can't
see
how
the
per
unit
price
for
you're
saying,
40
square
foot
difference
for
another
60
units
is
such
a
difference.
I
just
to
me
that
doesn't
make
sense.
C
We've
always
looked
at
a
per
unit
comp
with
the
comparable
properties
in
the
area,
and
I
just
feel
like
I'm
showing
you
a
similar
property,
I'm
showing
you
a
similar
comp,
I'm
showing
you
a
decrease
in
the
revenue
and
we
have
an
increase
in
value
so
that
just
to
me
doesn't
make
sense,
and
I
feel
like
I'm
proving
what
we're
supposed
to
prove
here
to
to
ask
for
a
lower
value.
A
Scene
is
none,
let's
close
this
and
deliberate
as
a
board.
I
do
think
that
sbe
51
and
is
important
here
in
looking
at
price
per
square
foot
of
gross
building
area
and
price
per
unit
for
replacement
cost
is
very
helpful
and,
as
we'll
see
we're
at
the
high
end
of
replacement
cost
per
unit,
but
then
we're
at
the
low
end
of
price
per
square
foot,
and
that's
because
the
unit
average
unit
size
is
larger
for
the
subject,
but
welcome
any
further
comments
from
the
board.
C
E
The
the
diminution
in
value
was
is
reflected
in
the
market
value
and
I
believe
the
market
value
of
the
property
still
exceeds
the
taxable
value
and,
as
a
result,
I
don't
think
that
a
diminution
well.
Well,
I
I
do
agree
that
the
value
of
the
property
has
probably
dropped.
It
has
not
dropped
to
below
the
calculated
taxable
value,
and
so
no,
in
my
view,
no
adjustments
warranted.
G
No,
I
can
part
of
me.
I
concur
with
that,
the
the
opinions
of
my
colleagues
here
I
do
agree
that,
with
the
petitioner
understand
that
there
has
been
reduction,
particularly
in
rents,
collected
again,
I
think
yesterday,
when
we
had
a
similar
conversation
around,
that
we
kind
of
a
little
bit
out
of
left
field,
asked
a
little
bit
about
ppe
and
other
rental
assistant
programs
and
different
things
like
that
that
maybe
we're
able
to
make
people
a
little
more
whole.
So
I
agree
with
the
analysis
again
and
my
colleagues.
G
I
think
that
the
this
is
equitable
and
I
mean
hopefully
knock
on
wood.
We
don't
see
what
we
saw
in
2020
continue
to
reflect
through
2021,
so
you
won't
be
back
here
next
year,
but
if
that
is
the
case,
then
I
think
that'll
be
a
suitable
time
to
have.
You
made
a
more
detailed
conversation
around
this
property.
E
Mr
chairman,
in
case
number
21
128,
I
moved
that
we
accept
the
value
established
by
the
county
board
or
the
county
board
of
equalization
of
13
million
726
123,
which
is
no
change
in
taxable
value
from
the
assessor's
calculation.
A
B
B
F
I'm
sorry,
okay,.
L
B
Yes,
I
just
said
that
this
property
was
originally
brought
forward
to
the
county
board
of
equalization,
where
the
value
was
upheld,
but
subsequently
to
that.
So
after
the
county
board,
information
was
provided.
That
indicated
that
there
was
settling
on
the
property
and
the
assessor
agreed
that
there
should
be
a
reduction
in
value
and
that
reduction
is
presented
before
the
state
board
in
a
signed
upon
stipulation.
A
A
C
B
B
Thank
you,
mr
chairman.
That
brings
us
to
the
end
of
the
cases
that
we
had
scheduled
on
this
agenda
and
I
am
available
for
any
comments
to
and
from
the
board.
A
C
A
Any
further
comment,
all
in
favor,
say
aye,
any
opposed,
say,
nay,
motion
carries
unanimously.
Next
is
state
board
of
equalization
comments.
Any
comments
from
the
board
members.
E
G
Yeah
I
would
like
to
echo
my
colleagues
comments,
and
you
know
ben
franklin
said
nothing
is
certain
in
this
world,
except
for
death
and
taxes.
Right
and
taxes
is
the
cost
that
we
all
pay
for
living
in
a
well-ordered
society
and
the
ability
to
make
sure
that
equity
and
that
we
do
so
in
a
way
that
is
fair
and
reasonable
is
important.
G
I
believe
that
we
have
qualified
professionals
who
come
to
work
every
day
wanting
to
carry
out
the
intent
of
the
statutes
and
the
regulations,
and
I
applaud
all
you
for
that
and
being
able
to
apply
equity
where
it
matters
in
order
to
make
sure
that
fairness
is
achieved.
And
so
you
mean
in
my
comments.
G
I
just
want
to
make
sure
that
we
continue
to
work
together
as
both
residents
government
and
as
a
board
in
general
to
make
sure
that
we
carry
forth
the
the
intent
of
this
of
of
our
laws,
which
are
to
make
sure
that
we
have
properly
funded
services.
G
That
then
also
allows
for
our
residents
to
continue
to
thrive
and
live
in
a
in
a
place
where
they
can
rely
on
those
services.
So
again,
I
would
like
to
thank
all
the
accessors
all
the
staff
of
this
committee,
and
also
my
fellow
board
members
for
for
carrying
me
as
deadweight.
So
thank
you.
Bye.
A
We
decided
we're
going
to
keep
you.
Is
that
anything
from
hearing
glenn.
C
Speaking
of
dead
weight,
I
thought
I'd
comment.
You
know
the.
If
anybody
comes
up
with
any
new
acronyms
they
can
throw
into
this
process.
I'd
appreciate
it
so.
A
And
I
agree
with
my
colleagues
my
one
comment
will
be
marianne.
I
really
appreciate
we're
hearing
from
all
the
taxpayers
before
us,
a
majority
of
them
that
are
recognizing
the
professionalism
of
your
office,
your
willingness
to
work
with
them
and
engage
with
them,
and
I
very
much
appreciate
that,
and,
secondly,
very
much
appreciate
how
well
everyone
was
prepared.
I
know
you
must
have
worked
incredibly
hard
to
prepare
for
these
hearings,
prepare
your
staff-
and
that
was
clear
to
me
throughout
this
hearing
the
effort
that
went
in
and
the
fairness
that
resulted
from
that.
A
So
anyone
here
that
wants
to
step
forward
with
public
comment.
Please
do
so
please
open
up
with
raised
hands
online.