5/22/1995 BOARD OF ASSESSORS Minutes

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Board of Assessors Meeting Page Sales File Information continued Kenneth Porter questioned if David Bailey intends to put a lot of weight on sales from October to the presenit because they are on the upswing. Both Nice Chairman Greig and Chairman DeLory stated that they did not know; they will have to wait until the new sales printout is finished. Mr. Porter requested that Chairman DeLory ask for three printouts . . . one for each Board Member, Mr, DeLory informed that the current printout is simply a peliminary.# David Bailey does not yet have the Neighborhoods; he has only the Map Numbers • . . very basic data . Lengthy discussion followed concerning dates of sales. Upon question from Kenneth Porter , Vice Chairman Greig again pointed out that sales from six months prior- to January 1 , 1994 , as well as six months following January 1 , 1994 , must be used for validity. Chairman DeLory expressed agreement. More discussion followed. Mr. Greig gage the following example: If there are a few sales from May 1 , 1995 , that ar6 on the high side and that are the only sales in the Neighborhood, using this data will throw off the sales figures . . . these current sales should be used during the next revaluation. Commercial Property Vice Chairman Greig expressed opinion that one of the difficult valuation problems is the leased property of Stop and Shop W Nowned by Mr. Chase. stop and shop does own the building. He made coxffnent that it is up to Mr. Steve Fererria of MMC to solve this problem. Kenneth Porter questioned if this situation is similar to a condominium M . one owns the building but not the land. Chairman DeLory pointed out that theme is a difference with commercial. property, such as Stop and shop, who leases the land; the property is income producing. Lengthy discussion followed. Vice Chairman Greig expressed opinion that Mr. Fererri.a may have to use the "rate of return" method. Be explained that a triangular formulas is used: what must be determined is "ghat will this building and land rent for on the open market" in order to arrive at a certain rate of return; thea it is capitalized to arrl.ve at the final figure. Mr. Greig further explained that Mashpeets Assessing Department could not carry out this i calculation it must be done through 14MC ' s broad data base. More discussion followed, Vice Chairman Greig pointed out that a copy of the teras of the lease would establish who will be taxed.