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T&P Warehouse Redevelopment

Downtown Historic Buildings Lancaster Corridor Historic Preservation

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#601 roverone

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Posted 12 October 2023 - 11:44 AM

I want to say that, although I realize it is not this way in practice, the Tarrant Appraisal District's mission is to "...provide accurate appraisal of all property in Tarrant County at one hundred percent market value, equally and uniformly."

 

And they point off to the State Comptroller's site for the methods:

 

https://comptroller....ng-property.php

 

I don't like to feel like we are harassing the property owner, but at some point they are letting the city / county down by not either moving forward or selling to someone who will.

 

It seems like the appraisal process could be pushed upon one way or the other: above is discussion of condemnation with a low appraised value, but could the opposite approach be taken where it is appraised at a very high number, making it more expensive to just sit there, with the implied follow-on that if it actually gets developed, a special tax arrangement will be made to reduce those higher taxes?



#602 JBB

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Posted 12 October 2023 - 02:57 PM

I know that TAD does appraise market value and, on the residential side, you get that and an appraiseed value that conforms to the maximum allowable increase by law (10%, I think).  In recent years, that's resulted in the appraised rate on which taxes are based being significantly lower than the market value (at least it is on my house, around 25% lower, I'm also not certain that the market value is true, there's comparable nearby house that just recently sold for about $30 more per square foot than TAD's market value).

 

I'll admit I know almost nothing about how that works on the commercial side.  Cleopatra owns the warehouse property and vacant lot behind.  The market values match the appraised value on both properties.  The warehouse had around a 400% increase in value from 22 to 23 and the vacant lot had an increase of around 600%.  Both properties combined come in at just under $6 million.  Where it gets muddy is with the warehouse: the value of the improvements or the buliding is only $1000 with the rest of the value in the land.  I think we all know that, even in its current condition, the building is worth well over $1000.  There's probably a logical reason for that value arrangement and that is beyond my knowledge.  Long story short, taking the building legally is not going to be as simple as, "Well, TAD says it's worth (blank), that's all you get."



#603 Shanedallas76

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Posted 16 October 2023 - 09:36 AM

I know that TAD does appraise market value and, on the residential side, you get that and an appraiseed value that conforms to the maximum allowable increase by law (10%, I think).  In recent years, that's resulted in the appraised rate on which taxes are based being significantly lower than the market value (at least it is on my house, around 25% lower, I'm also not certain that the market value is true, there's comparable nearby house that just recently sold for about $30 more per square foot than TAD's market value).

 

I'll admit I know almost nothing about how that works on the commercial side.  Cleopatra owns the warehouse property and vacant lot behind.  The market values match the appraised value on both properties.  The warehouse had around a 400% increase in value from 22 to 23 and the vacant lot had an increase of around 600%.  Both properties combined come in at just under $6 million.  Where it gets muddy is with the warehouse: the value of the improvements or the buliding is only $1000 with the rest of the value in the land.  I think we all know that, even in its current condition, the building is worth well over $1000.  There's probably a logical reason for that value arrangement and that is beyond my knowledge.  Long story short, taking the building legally is not going to be as simple as, "Well, TAD says it's worth (blank), that's all you get."

 

Interesting....TAD is using nice round numbers here. The building lost 99% of its value, relative to 22. Well... ≈ 0.99640824



#604 johnfwd

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Posted 16 October 2023 - 02:24 PM

I have no doubt the city would have initiated condemnation proceedings against the warehouse years ago had it not been for the fact the building is of national historical value.  



#605 JBB

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Posted 16 October 2023 - 03:41 PM

Condemnation and demolition are not the same thing.



#606 John T Roberts

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Posted 16 October 2023 - 06:16 PM

JBB, you are correct on that.  Also, a condemned building can be rehabilitated, so I doubt that the historic status had anything to do with that decision.



#607 Doohickie

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Posted 17 October 2023 - 06:12 AM

I think there's a difference in taxable value, even under protest, and market value.  Both houses I've purchased were probably only taxed at around 75% of the price I've paid.  I don't know why a protested taxable value would even matter when talking about what you would pay for a commercial property.

Because taxable value is supposed to represent the market value of the property.


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#608 johnfwd

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Posted 17 October 2023 - 12:46 PM

As a real estate attorney, I know the difference between condemnation and demolition.  What I was trying to say, and this is strictly my opinion, is that one reason why the city has been overly tolerant with the warehouse owner over many years is that this is a structure with a special historic status.



#609 JBB

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Posted 17 October 2023 - 07:46 PM

I believe they have been lenient because no one has cared.  As I've said before, going after the owner of a property this large and worth this much is going to consume an enourmous amount of resources.



#610 JBB

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Posted 17 October 2023 - 07:49 PM

 

I think there's a difference in taxable value, even under protest, and market value.  Both houses I've purchased were probably only taxed at around 75% of the price I've paid.  I don't know why a protested taxable value would even matter when talking about what you would pay for a commercial property.

Because taxable value is supposed to represent the market value of the property.

 

 

Does anyone honestly believe that the market value of a 500k square foot building is $1000?







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