Board of Tax Appeals

Board of Tax Appeals Hearing - Tuesday, November 7, 2023, 1:00 PM, Bushor Conference Room 1st Floor, City Hall, In-Person Only 1:00 pm, Bushor Conference Room, 1st Floor City Hall, In-Person Only 1. Agenda Subject 1.1. Motion to adopt agenda Meeting November 7, 2023 - Board of Tax Appeals Hearing - Tuesday, November 7, 2023, 1:00 PM, Bushor Conference Room 1st Floor, City Hall, In-Person Only Category 1. Agenda Department Clerk/Treasurer's Office Type Action Procedural Recommended Action Motion to adopt agenda Subject 1.2. September 21, 2023 Draft Minutes Meeting November 7, 2023 - Board of Tax Appeals Hearing - Tuesday, November 7, 2023, 1:00 PM, Bushor Conference Room 1st Floor, City Hall, In-Person Only Category 1. Agenda Department Clerk/Treasurer's Office Type Action Minutes Recommended Action approve the draft minutes 2. Hearing Subject 2.1. North Hill Capitol Partners, LLC, 61 Elmwood Avenue Meeting November 7, 2023 - Board of Tax Appeals Hearing - Tuesday, November 7, 2023, 1:00 PM, Bushor Conference Room 1st Floor, City Hall, In-Person Only Category 2. Hearing Department Clerk/Treasurer's Office Page 1 of 90  Type Action Procedural Recommended Action open the hearing close the hearing 3. Adjournment Subject 3.1. Motion to adjourn Meeting November 7, 2023 - Board of Tax Appeals Hearing - Tuesday, November 7, 2023, 1:00 PM, Bushor Conference Room 1st Floor, City Hall, In-Person Only Category 3. Adjournment Department Clerk/Treasurer's Office Type Action Procedural Recommended Action Motion to adjourn Page 2 of 90  BURLINGTON BOARD OF TAX APPEALS CITY HALL – CONTOIS AUDITORIUM, 149 CURCH STREET, 2ND FLOOR IN-PERSON ONLY ORGANIZATIONAL MEETING BURLINGTON, VERMONT MINUTES OF MEETING September 21, 2023 DRAFT MEMBERS PRESENT: Meg McGovern Nathan Virag Andrew Champagne Alan Bjerke OTHERS PRESENT: Jacob Dorman Jared Pellerin Lori Olberg 1.0 AGENDA Alan Bjerke called the meeting to order at 1:00 PM. MOTION by Andrew Champagne, SECOND by Meg McGovern to adopt the agenda. VOTING: unanimous; motion carries. 2.0 ELECTIONS 2.1 Chair, Vice Chair, and Clerk MOTION by Meg McGovern, SECOND by Andrew Champagne, to nominate Alan Bjerke as Chair of the Board of Tax Appeals. VOTING: unanimous; motion carries. MOTION by Alan Bjerke, SECOND by Andrew Champagne, to nominate David Maher as the Vice Chair of the Board of Tax Appeals. Page 3 of 90 VOTING: unanimous; motion carries. MOTION by Andrew Champagne, SECOND by Meg McGovern, to nominate Lori Olberg as the Clerk of the Board of Tax Appeals. VOTING: unanimous; motion carries. 3.0 RULES 3.1 Hearing Procedures Chair Bjerke proposed following State statute and City charter to establish hearing procedures. He also noted that it was suggested at the ad hoc committee on reappraisal that when site visits are conducted, the Assessor can be asked by the property-owner not to attend. Ms. McGovern also noted that it was suggested having a taping of a mock appeal session to show property-owners how the process of tax appeals works, to familiarize them more with the process. Acting City Assessor Dorman also noted that his office prepared a set of informational slides for property-owners to use as a resource to prepare for the tax appeals process and site visits. MOTION by Alan Bjerke, SECOND by Meg McGovern, to adopt the rules and procedures as historically conducted and implemented. VOTING: unanimous; motion carries. 4.0 APPROVAL OF FORMS 4.1 Educational Brochure, Notice of Hearing, Authority of Representation, Waiver of Site Visit and Official Notice of Decision MOTION by Alan Bjerke, SECOND by Meg McGovern, to approve forms. VOTING: unanimous; motion carries. 5.0 APPROVAL OF SUBPOENA 5.1 Approval of Subpoena Deputy City Attorney Pellerin reviewed the subpoena, noting that the property is on 61 Elmwood Avenue. He said that in the subpoena, the City requested the current rent role and the IRS schedule E form 8825 for the years 2021-2022 along with any professionally conducted property appraisals in the last three years, as well as filling out an income and expense form (attached within the subpoena). He noted that they are appealing due to the neighboring pod encampment, which has caused some tenants to vacate. Hs said that some tenants have a decreased sense of security and that it is a less desirable location to live, given the proximity to the pod encampment. He said that the appellant has contracted with a licensed appraiser to assess the value of the property, but that the appraisal has not to date been submitted. He said that their appeal was denied by the Board of Assessors, and it has now escalated to this level. He said that the Board of Assessors is waiting for an independent appraisal to quantify any decrease in property value. MOTION by Andrew Champagne, SECOND by Meg McGovern, to approve subpoena. VOTING: unanimous; motion carries. Page 4 of 90 6.0 ESTABLISHMENT OF PANEL AND SCHEDULE 6.1 Establish Panel and Schedule Chair Bjerke said that they have established a panel and discussed scheduling a hearing on Wednesday, October 25, 2023, at 1:00 PM and a backup date of Tuesday, November 7, at 1:00 PM. MOTION by Andrew Champagne, SECOND by Meg McGovern, to approve the panel and schedule of hearings. VOTING: unanimous; motion carries. 7.0 CONFLICTS 7.1 North Hill Capitol Partners, LLC, 61 Elmwood Avenue None. 8.0 OTHER BUSINESS 8.1 Verbal Comments None. 9.0 ADJOURNMENT 9.1 Motion to adjourn MOTION by Meg McGovern, SECOND by Andrew Champagne, to adjourn the meeting. VOTING: unanimous; motion carries. The meeting adjourned without objection at 1:17 PM. Page 5 of 90  61 Elmwood Avenue Property Tax Grievance DECLARATION OF JOHN BORCH IN PLACE OF NOTARIZED STATEMENT 1. I am more than 1 8 years-old and state the following on my personal knowledge. 2. I am the property manager for North Hill Capital Partners (“NHCP”), owner of the 61 Elmwood Avenue property. 3. 61 Elmwood Avenue’s value has been negatively impacted by the neighboring pod encampment. 4. Since the pods opened, tenants have experienced increased noise and a decrease in their sense of security. 5. Flower beds that have been maintained for years can no longer be worked because they are littered with hypodermic needles. 6. There have been apparent overdose victims in the property’s parking lot. 7. Tenants have experienced increased theft, especially from parked cars. I The problem is exacerbated by the pod residents’ associates who congregate in the area to party. 9. NHCP owns several rental properties in Burlington. 10. Over the last year, due to multiple inflationary pressures, including higher property taxes, utility costs, management expenses, repair expenses and other increased expenses, NHCP has raised its rents at its other Burlington properties by approximately 20%. 11. Even with those higher rents, NHCP has experienced virtually no vacancies at any property other than its 6 1 Elmwood property . 12. Over the past year, for the first time in years, the 6 1 Elmwood property has experienced vacancies, some as long as three months. Page 6 of 90 13. This has caused my client to leave its 6 1 Elmwood rents flat, unlike the rents at their other properties. 14. NHCP has actually reduced rents on some of its 61 Elmwood units by 15% to 20%. 15. The market rent for a single bedroom unit, like the 61 Elmwood units, has risen to $1,450. 16. The 61 Elmwood units are rented at an average rent of $1,200, $250 to $300 below market. 17. Historically, the 61 Elmwood units have been rented for market rates. 18. A Based on the forgoing facts, NHCP believes the value of its property has been reduced by 35%. I declare that the above statement is true and accurate to the best of my knowledge and belief. I understand that if the above statement is false, I will be subject to the penalty of perjury or other sanctions of the court. Printed Name: John Borch > \ . Mailing Address: > v\ . \T O'<= | Email Address: johnborch@rpmsterling.com \ N. Date: May 23, 2023 gnature Page 7 of 90 Via Hand Delivery and Email June 27, 2023 City of Burlington Lori Olberg, Administrative Assistant City Hall, Clerk’s Office 149 Church Street Burlington, VT 05401 lolberg@burlingtonvt.gov Re: Grievance Notice – North Hill Capital Partners, LLC, 61 Elmwood Ave, Parcel ID 044-4-049-001 Dear Lori: I represent North Hill Capital Partners, owner of the 61 Elmwood Avenue property. My client believes its property’s value has been negatively impacted by the neighboring pod encampment. Since the pods opened, my client’s tenants have experienced increased noise and a decrease in their sense of security. Flower beds that have been maintained for years can no longer be worked because they are littered with hypodermic needles. There have been apparent overdose victims in the property’s parking lot. Tenants have experienced increased theft, especially from parked cars. The problem is exacerbated by the pod residents’ associates who congregate in the area to party. This deterioration in my client’s tenants’ quality of life has made 61 Elmwood a significantly less desirable place to live. Evidence of this change has manifested itself in the form of tenant complaints, lowered rents, and increased vacancies. My client owns several rental properties in Burlington. Over the last year, due to multiple inflationary pressures, including higher property taxes, utility costs, management expenses, repair expenses and other increased expenses, my client has raised its rents at its other Burlington properties by approximately 20%. The market rent for a single bedroom unit, like the 61 Elmwood units, has risen to $1,450. Even with those higher rents, my client has experienced virtually no vacancies at any property other than its 61 Elmwood property. For the first time in years, the 61 Elmwood property has experienced vacancies, some as long as three months. This has caused my client to leave its 61 Elmwood rents flat, unlike the rents at their other properties. My client has actually reduced rents on some of its 61 Elmwood units by 15-20%. The 61 Elmwood units are rented at an average rent of $1,200, $250-300 below market. Historically, these units have always rented for market rates. While rents elsewhere are going up 25% to 30%, rents at 61 Elmwood have remained stagnant or, as noted above, are being reduced in order to retain and attract tenants. Clearly, the creation of the pod encampment has had a negative and measurable impact on my client’s property. My client did not oppose the encampment and understands the need for such a facility. On the other hand, it must be recognized that by placing the encampment so close to my client’s property, there has been a negative impact on its value. My client believes the value of its property has been reduced by 35%. My client believes the City’s financial form (enclosed) will underestimate the pod encampment’s impact, as those impacts have only made themselves known relatively recently. All of the facts recited in this letter are supported by the attached Declaration. I appreciate your attention to this matter. Sincerely, 275 COLLEGE STREET, PO BOX 4485 | BURLINGTON, VT 05406-4485 | PHONE 802 861-7000 | FAX 861-7007 | MSKVT.COM Page 8 of 90  -2- /s/Hans G. Huessy Hans G. Huessy, Esq. hhuessy@mskvt.com 275 College Street, PO Box 4485 | Burlington, VT 05406-4485 | phone 802 861-7000 | Fax 861-7007 | mskvt.com Page 9 of 90 Via Hand Delivery and Email October 9, 2023 Alan Bjerke, Chair Burlington Board of Tax Appeals City of Burlington, Clerk’s Office 149 Church Street, Room 20 Burlington, VT 05401 abjerke@burlingtonvt.gov lolberg@burlingtonvt.gov Re: City of Burlington Notice of Board of Tax Appeals Hearing Dear Members: I represent North Hill Capital Partners, LLC, owner of Parcel ID: 044-4-049-001, located at 61 Elmwood Avenue. We hereby file this Motion to Continue the Hearing scheduled for October 25, 2023 at 1:00 pm. Counsel will be in trial for the entire day of October 25th. Thank you for your attention to this matter and please be in touch with any questions. Sincerely, /s/Hans G. Huessy Hans G. Huessy, Esq. hhuessy@mskvt.com {00538307.1}275 COLLEGE STREET, PO BOX 4485 | BURLINGTON, VT 05406-4485 | PHONE 802 861-7000 | FAX 861-7007 | MSKVT.COM Page 10 of 90 Via Email October 19, 2023 Alan Bjerke, Chair Burlington Board of Tax Appeals City of Burlington, Clerk’s Office 149 Church Street, Room 20 Burlington, VT 05401 abjerke@burlingtonvt.gov lolberg@burlingtonvt.gov Re: City of Burlington Notice of Board of Tax Appeals Hearing Dear Members: I represent North Hill Capital Partners, LLC, owner of Parcel ID: 044-4-049-001, located at 61 Elmwood Avenue. We hereby file this Motion to Further Continue the Hearing scheduled for November 7, 2023 at 1:00 pm. Counsel will be out of the country from November 3, 2023 till November 14, 2023. Counsel apologies, but this was not known at the time the initial request to continue was filed. Counsel also advises the Board that the trial previously set for October 25th has been continued, so holding the hearing on the 25th as originally planned would now be possible. Thank you for your attention to this matter and please be in touch with any questions. Sincerely, /s/Hans G. Huessy Hans G. Huessy, Esq. hhuessy@mskvt.com {00539768.1}275 COLLEGE STREET, PO BOX 4485 | BURLINGTON, VT 05406-4485 | PHONE 802 861-7000 | FAX 861-7007 | MSKVT.COM Page 11 of 90 Page 12 of 90 VERMONT SUPERIOR COURT ENVIRONMENTAL DIVISON Environmental Division Case No. 22-ENV-00026 32 Cherry St, 2nd Floor, Suite 303, Burlington, VT 05401 802-951-1740 October 19, 2023 www.vermontjudicary.org NOTICE OF HEARING CANCELLATION Daylight Lot Major Subdivision Amendment Appeal The Merits Hearing scheduled for October 25-27, 2023, has been cancelled. If another hearing in this case needs to be scheduled, you will receive a Notice of Hearing. Environmental Division Clerk Any individual with a disability requiring assistance accessing the services, programs, and/or activities at the Courthouse should contact the Clerk's office at the above address for further assistance. 300-00213 (06/2022) Page 1 of 1 Page 13 of 90 300-00213 (06/2022) Page 1 of 1 Page 14 of 90 Page 15 of 90 Via Hand Delivery and Email October 13, 2023 City of Burlington Alan Bjerke, Chair Lori Olberg, Administrative Assistant City Hall, Clerk’s Office 149 Church Street Burlington, VT 05401 lolberg@burlingtonvt.gov Re: Grievance Notice – North Hill Capital Partners, LLC, 61 Elmwood Ave, Parcel ID 044-4-049-001 Dear Members: I represent North Hill Capital Partners, owner of the 61 Elmwood Avenue property. My client believes its property’s value has been negatively impacted by the neighboring pod encampment. Since the pods opened, my client’s tenants have experienced increased noise and a decrease in their sense of security. Flower beds that have been maintained for years can no longer be worked because they are littered with hypodermic needles. There have been apparent overdose victims in the property’s parking lot. Tenants have experienced increased theft, especially from parked cars. The problem is exacerbated by the pod residents’ associates who congregate in the area to party. This deterioration in my client’s tenants’ quality of life has made 61 Elmwood a significantly less desirable place to live. Evidence of this change has manifested itself in the form of tenant complaints, lowered rents, and increased vacancies. My client owns several rental properties in Burlington. Over the last year, due to multiple inflationary pressures, including higher property taxes, utility costs, management expenses, repair expenses and other increased expenses, my client has raised its rents at its other Burlington properties by approximately 20%. The market rent for a single bedroom unit, like the 61 Elmwood units, has risen to $1,450. Even with those higher rents, my client has experienced virtually no vacancies at any property other than its 61 Elmwood property. For the first time in years, the 61 Elmwood property has experienced vacancies, some as long as three months. This has caused my client to leave its 61 Elmwood rents flat, unlike the rents at their other properties. My client has actually reduced rents on some of its 61 Elmwood units by 15-20%. The 61 Elmwood units are rented at an average rent of $1,200, $250-300 below market. Historically, these units have always rented for market rates. While rents elsewhere are going up 25% to 30%, rents at 61 Elmwood have remained stagnant or, as noted above, are being reduced in order to retain and attract tenants. Clearly, the creation of the pod encampment has had a negative and measurable impact on my client’s property. My client did not oppose the encampment and understands the need for such a facility. On the other hand, it must be recognized that by placing the encampment so close to my client’s property, there has been a negative impact on its value. My client believes the value of its property has been reduced by 35%. My client believes the City’s financial form (enclosed) will underestimate the pod encampment’s impact, as those impacts have only made themselves known relatively recently. All of the facts recited in this letter are supported by the attached Declaration. I appreciate your attention to this matter. 275 COLLEGE STREET, PO BOX 4485 | BURLINGTON, VT 05406-4485 | PHONE 802 861-7000 | FAX 861-7007 | MSKVT.COM Page 16 of 90  -2- You will note that the appraisal my client produced concludes that the property has a higher value. However, please note that the appraiser expressly excludes all impacts from the pod encampment in determining the property’s value. Please also note that the appraisal identifies an annual loss associated with the current vacancies in excess of $94,000 on page 29 of the appraisal. This loss, as it is tied to the pod encampment, is also not factored into the appraiser’s valuation. Sincerely, /s/Hans G. Huessy Hans G. Huessy, Esq. hhuessy@mskvt.com 275 College Street, PO Box 4485 | Burlington, VT 05406-4485 | phone 802 861-7000 | Fax 861-7007 | mskvt.com Page 17 of 90 Page 18 of 90 Page 19 of 90 Page 20 of 90 Page 21 of 90 Page 22 of 90 Page 23 of 90 Page 24 of 90 Page 25 of 90 Page 26 of 90 Page 27 of 90 Page 28 of 90 Page 29 of 90 Page 30 of 90 Page 31 of 90 Page 32 of 90 Page 33 of 90 Page 34 of 90 Page 35 of 90 Page 36 of 90 Page 37 of 90 Page 38 of 90 Page 39 of 90 Page 40 of 90 Page 41 of 90 Page 42 of 90 Page 43 of 90 Page 44 of 90 Page 45 of 90 Page 46 of 90 Page 47 of 90 Page 48 of 90 Page 49 of 90 Page 50 of 90 Page 51 of 90 Page 52 of 90 Page 53 of 90 Page 54 of 90 Page 55 of 90 Page 56 of 90 Page 57 of 90 Page 58 of 90 Page 59 of 90 Page 60 of 90 Page 61 of 90 Page 62 of 90 Page 63 of 90 Page 64 of 90 Page 65 of 90 Page 66 of 90 Page 67 of 90 Page 68 of 90 Page 69 of 90 Page 70 of 90 Page 71 of 90 Page 72 of 90 Page 73 of 90 Page 74 of 90 Page 75 of 90 Page 76 of 90 Page 77 of 90 Page 78 of 90 Page 79 of 90 Page 80 of 90 Page 81 of 90 Page 82 of 90 Page 83 of 90 Page 84 of 90 Page 85 of 90 Page 86 of 90 Page 87 of 90 Page 88 of 90 Page 89 of 90 Page 90 of 90