HomeMy WebLinkAbout97-2769 CivilEAST PENNSBORO AREA SCHOOL
DISTRICT, -
Appellant
Mo
CUMBERLAND COUNTY BOARD
OF ASSESSMENT and PROSPERITY
DEVELOPMENT COMPANY,
Appellees
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY-; PENNSYLVANIA
CIVIL ACTION -- LAW
No. 97-2769 CIVIL TERM
AND NOW, this 21st day of September, 1998, upon consideration of the tax
assessment appeal filed herein, following a hearing and in accordance with the
accompanying Opinion, it is ordered as follows:
THE MARKET VALUE as of August 1, 1996 (and for succeeding years until
revised), for the 10.37 acre parcel owned by Appellee Prosperity Development Company,
situated in East Pennsboro Township, Cumberland County, Pennsylvania, and bearing tax
parcel number 09-20-1854-004, is fixed at $8,500,000.00.
THE PERTINENT COMMON LEVEL RATIO for Cumberland County has been
stipulated to be seven percent. The predetermined ratio was 25 percent.
THERE BEING A DIFFERENCE of more than 15 percent between the common level
ratio and predetermined ratio, as a result of which assessments are to be determined by
application of the common level ratio to market value, the assessment with respect to the
aforesaid parcel is fixed at $595,000.00 as of the aforesaid date.
BY THE COURT,
Richard C. Snelbaker, Esq.
SNELBAKER, BRENNEMAN & SP~P.C.
44 West Main Street
MechaniCsburg, PA 17055
Attorney for Appellant
Stephen D. Tiley, Esq.
5 South Hanover Street
Carlisle, PA 17013
Attorney for Appellee Cumberland
County Board of Assessment
Michael J. Pykosh, Esq.
Suite 205, Wagner Building
355 North 21st Street
Camp Hill, PA 17011
Attorney for Prosperity
Development Company
EAST PENNSBORO AREA SCHOOL
DISTRICT, '~ -
Appellant
Vo
CUMBERLAND COUNTY BOARD
OF ASSESSMENT and PROSPERITY
DEVELOPMENT COMPANY,
Appellants
IN THE COURT OF coMMON PLEAS OF
CUMBERLAND COUNT¥~ PENNSYLVANIA
CIVIL ACTION -- LAW
No. 97-2769 CIVIL TERM
IN RE: TAX ASSESSMENT APPEAL
BEFORE OLER, J.
OPINION and ORDER OF COURT
OLER, J., September 21, 1998.
This case is a tax assessment appeal filed on behalf of East Pennsboro Area School
District with respect to certain real estate owned by Prosperity Development Company. A
hearing on the matter was held on June 3, 1998.
The county board of assessment initially determined the market value of the property
to be $6,590,000.00) On the present appeal, the owner's expert has placed its value at
$7,830,000.00.z The school district's expert has placed its value at $9,000,000.00.3
Based upon the evidence presented at the hearing, the following Statement of Facts,
Discussion and Order of Court are made and entered.
~ This valuation followed an appeal to the board by the owner of an assessment of
$662,100.00, which indicated a market value of $9,458,571.00. See Appellant's Petition and
Notice of Appeal, paragraphs 6-8; Reply of Appellee Prosperity Development Company,
paragraphs 6-8.
z Appellee's Exhibit 1 (Appraisal of Equity Appraisal Co., Inc.), at 67.
3 Appellant's Exhibit 1 (Appraisal of Hirsh Valuation Group), at 83.
STATEMENT OF FACTS ' -
Appellant is the East Pennsbor~-::Area School DiStrict, a pubii.c _school districtin
Cumberland County, Pennsylvania, ._~having offices at ~890 Valley Street, Enola,
Pennsylvania? Appellee Cumberland County Board of Assessment is the board which hears
and determines appeals from assessments made by the chief county assessor? Appellee
Prosperity Development Company, is a business entity having offices at 2525 North 7th
Street, Harrisburg, Dauphin County, Pennsylvania, and is the record owner of a 10.37 acre
tract of land situated generally at the intersection of North 21st Street and Routes 11/15
(Camp Hill Bypass) in East Pennsboro Township, Cumberland County, Pennsylvania.6 It
bears Tax Parcel Number 09-20-1854-004.7
This property is located in the south-central part of the Commonwealth, about three
miles west of Harrisburg, the state capital (and county seat of Dauphin County), and about
15 miles east of the Borough of Carlisle, the county seat of Cumberland County.8 The area
is generally prosperous.9 The property is within five miles of an interchange of the
4 Appellant's Petition and Notice of Appeal, paragraph 1; Reply of Appellee
Prosperity Development Company, paragraph 1.
s Appellant's Petition and Notice of Appeal, paragraph 23; Reply of Appellee
Prosperity Development Company, paragraph 23; Act of May 21, 1943, P.L. 571,
§302(b)(1), as amended, 72 P.S. §5453.302(b)(1).
6 Appellee's Exhibit 1 (Appraisal of Equity Appraisal Co., Inc.), at 10; Appellant's
Exhibit 1 (Appraisal of Hirsh Valuation Group), at 9, 21. Access to the property is available
only from North 21st Street. Id., at 21.
7 Appellant's Petition and Notice of Appeal, paragraph 4; Reply of Appellant
Prosperity Development Company, paragraph 4.
8 Appellant's Exhibit 1 (Appraisal of Hirsh Valuation Group), at 9.
9 In 1996, the Harrisburg Area population was estimated to be 613,062, with a
population growth rate of 4.3 percent. Icl., at 10. As of August 1996, the unemployment rate
2
Pennsylvania Turnpike.l°
The land is zoned Commercial General by the mUniciPality, aCCording to one ~xis~/~;tt
and Professional Office District, according to another.~2 The improvements on the tract, in
addition to a pump station,13 have been summarized as follows:
The site currently is improved with a 1-story detached
service station building, a 1-story detached fast-food restaurant
building, a 5-story detached office building, a 3-story detached
office building, and a retail strip center with a 1-story semi-
detached drugstore, and a 1 and part 2-story semi-detached
restaurant building with a mezzanine?
More specifically, these improvements are occupied by an Exxon gasoline service
station, a Wendy's fast-food establishment, an office building known as Plaza 21, an office
building known as the American Office Center, and a strip shopping center consisting of a
Weis food market, a Thrift drug store, and a J.C. Dunphy's Pub? Paved drive and parking
areas surround the buildings?
The areas and property rights associated with the buildings have been outlined as
follows:
in Cumberland County was the lowest in the state (2.7%), and the unemployment rate in
Dauphin County was the second lowest in the state (3.0%). Id., at 13.
~0 Appellee's Exhibit 1 (Appraisal of Equity Appraisal Co., Inc.), at 3.
~ Appellant's Exhibit's 1 (Appraisal of Hirsh Valuation Group) at 26.
~2 Appellee's Exhibit 1 (Appraisal of Equity Appraisal Co., Inc.), at 10.
~3 Appellant's Exhibit 1 (Appraisal of Hirsh Valuation Group), at 21.
~4 Id.
~S ld., at6.
16 Id., at 22.
The subject site i~ ~wned by Prosperity DeveloPment
[Company] ~ -The subj~rovements are owned as follows:-..
1. Semi-deta ~c~d retail building, 35,897 SF,
owned by Prosperty~' Development [Company] and
leased to Weis Markets
2. Semi-detached retail building, 14,000 SF,
owned by Prosperity Development [Company] and
leased to Thrift Drug
3. Semi-detached restaurant building, 5,597 SF,
owned by Prosperity Development [Company] and
leased to J.C. Dunphy's
4. Detached fast-food restaurant building, 2,685
SF, owned by Wendy's of New York (land-lease)
5. Detached gas-station building, 1,854 SF,
owned by Thomas E. Zimmerman (land-lease)
6. Detached 4-story [sic] office building, 63,010
SF, owned by Plaza 21 Realty Associates (land-lease)
7. Detached 1-story pump house, 500 SF
8. Detached 3-story office building, 46,638 SF,
owned by Penn 21 Associates (land lease)27
These enterprises are compatible with other uses in the vicinity? One negative aspect
of the site is that ingress and egress can be hampered by traffic congestion? Parking on the
premises, in the form of 604 spaces, is also somewhat below the optimal amount?°
Leases, including renewal options, applicable to the Weis market occupancy provide
for gradual increases in rent for the building from $2.23 per square foot in 1987 to $6.10 in
~ 7 Id., at6.
~8 Id., at 23.
~9 Appellee's Exhibit 1 (Appraisal of Equity Appraisal Co., Inc.), at 3.
~o Id., at 8-9.
2007, and gradual increases in rent for a parking area from $14,175.00 Per year in 1987 to
$17,550.00 in 20107 The lea~se' including renewal optionS~ apPlicable' to. the Thrift drug
store occupancy, provides for rent of $3.57 per square foot, plus 2.5% of net annual retail
sales in excess of about $2,000,000.00.22 The lease, including renewal options, applicable
to the J.C. Dunphy's occupancy, provides for gradual increases in rent from $11.29 per
square foot in 1995 to $23.73 per square foot in 2014.
The ground lease, with renewal options, applicable to Wendy's occupancy provides
for an annual base rent of $40,000.00, plus 5% of gross sales in excess of $800,000.00, until
2009.23
The ground lease, with a renewal option, applicable to the Exxon Station occupancy,
provides for an annual base rent of $30,000.00 in 1993, increasing by 4% each year thereafter
until 2023.
Lessees in the Plaza 21 Office Building include, or have included, a medical group,
a renal treatment center, an accounting firm, and Pennsylvania Blue Shield? Lessees in the
American Office Center include several medical practitioners or groups?5
An appeal to the county board of assessment by the property owner (from an
assessment implying a market value of $9,458,571.00) was filed on August 1, 1996. The
board reduced the assessment so as to indicate a market value of $6,590,000.00.2a The
township appealed to this court from this determination by the board on May 23, 1997.
Ic~, at 19.
Id., at 16.
Id., at 21.
Id., at 29-31.
Id., at 24-28.
See note ! supra and accompanying text.
5
Traditionally, sales at this location have not reached this figure.
Gross sales appear generally to exceed this amount. Id.
At the hearing on the townshiP"~ appeal from the board's determination, i-t was
stipulated'by counsel that the applicable common level ratio was. seven percent.' The --
county's predetermined ratio was 25 p~rcent.27
Appellant (the township) presented the testimony of Laurence A. Hirsh, CRE, MAI,
president of the Hirsh Valuation Group, on the subject of the property's market value.
Appellee Prosperity Development Company presented the testimony of William T. Bott,
MAI, CCIM, a principal of Equity Appraisal Co., Inc., on the subject.
Both experts felt that, as improved, the property was being subjected to its highest and
best use? Both believed that an income approach was a useful method for valuation of the
property,z9 that a sales comparison approach was also useful,3° or at least helpful for certain
purposes,3~ and that a cost approach was not helpful. 32 Both experts viewed the Weis market
and Thrift drug leases as below market.33
The township's expert, with respect to the income approach, valued the property by
27 See In re: Appeal of Penn Harris Company, 43 Cumberland L.J. 51 (1993).
zs See Appellant's Exhibit 1 (Appraisal of Hirsh Valuation Group), at 44; Appellee's
Exhibit ! (Appraisal of Equity Appraisal Co., Inc.), at 11.
29 See Appellant's Exhibit 1 (Appraisal of Hirsh Valuation Group), at 80; Appellee's
Exhibit 1 (Appraisal of Equity Appraisal Co., Inc.), at 12, 34.
3o See Appellant's Exhibit 1 (Appraisal of Hirsh Valuation Group), at 56.
3~ See Appellee's Exhibit 1 (Appraisal of Equity Appraisal Co., Inc.), at 42.
32 See Appellant's Exhibit 1 (Appraisal of Hirsh Valuation Group), at 46; Appellee's
Exhibit 1 (Appraisal of Equity Appraisal Co., Inc.), at 12.
33 See Appellant's Exhibit 1 (Appraisal of Hirsh Valuation Group), at 66; Appellee's
Exhibit 1 (Appraisal of Equity Appraisal Co., Inc.), at 14.
the direct capitalization, band of-investment, method?
follows:
This method was described as
In order to convert net operating income into an indication of
value which is reflective of market conditions, a capitalization
rate must be used ... which also is reflective of the market. This
capitalization rate blends the rate necessary to service a typical
mortgage ... with the rate required to attract equity investment
at similar levels of risk. This blending methOd, known as the
band of investment, combines these two components as a
weighted average to form the overall rate of capitalization by
which net operating income will be capitalized.35
Utilizing market (as opposed to actual) income and estimated expenses and vacancy
rates to arrive at net operating income, and applying a uniform capitalization rate of 11.5
percent (10.2% plus a 1.3% tax load36), the township's expert valued the components of the
$3,237,065
$2,100,343
$217,630
$315,176
$3,147,45537
property as follows:
Plaza 21 Office Building
American Office Center
Exxon Service Station
Fast-Food [Wendy's] Restaurant
Strip Center
The total estimated value for the property on the basis of this application of the
income approach was rounded off to $9,000,000.00.38 The same figure was reached by this
34 See Appellant's Exhibit 1 (Appraisal of Hirsh Valuation Group), at 78.
35 See Appellant's Exhibit 1 (Appraisal of Hirsh Valuation Group), at 69.
3a "Real estate tax [has been] loaded into the overall capitalization rate." Appellant's
Exhibit 1 (Appraisal of Hirsh Valuation Group), at 68.
37 Appellant's Exhibit 1 (Appraisal of Hirsh Valuation Group), at 78.
ss Appellant's Exhibit 1 (Appraisal of Hirsh Valuation Group), at 83.
7
expert utilizing the comparable sales approach.39
The property owner's expert relie_,c[cprimarily upon an ihc0me apPr°ach.t° vhl/ie the
components of the property, with the exfteption of the service s~[ion,-which wasvalued by
the comparable sales approach.4° As to those components valued according to the income
approach, the expert employed one of the following two methods:
(1) Estimate and divide first-year stabliized net income before
debt service by an appropriate overall capitalization rate. This
procedure is known as direct capitalization.
(2) Extimate over a normal projection period future annual net
incomes and reversionary value, and discount all net cash flows
by a rate sufficient to attract investment capital. Commonly
known as yield capitalization, this method can employ
discounted cash flow analysis, or an overall capitalization rate
which weight the effect of debt cost, loan amortization, equity
yield, and changes in income and property value over a normal
projection period.4~
The first technique was used for the two office buildings, the building occupied by
Wendy's and that.occupied by J.P. Dunphy's Pub;42 a capitalization rate of 12.3 percent (with
a 1.31% tax load factor included) was utilized for the office bUildings, and a capitalization
39/d.
~0 This exception was explained by the expert as follows:
Existing gas stations generally lease based on a percentage of
gas sales. In order to avoid the inclusion of business value for
this portion of the subject, the value of the service/gas station on
support land will be determined only through the Sales
Comparison Approach.
Appellee's Exhibit 1 (Appraisal of Equity Appraisal Co., Inc.), at 32.
41 Appellee's Exhibit 1 (Appraisal of Equity Appraisal Co., Inc.), at 14.
4z Id., at 14.
rate of 10.5 percent'~vas utilized for the Wendy's and J.P. Dunphy's Components,43 The
second technique was used for the Weis market component and the Thrift d~ .C_~pon~nt.'"
These applications by the property owner's expert-yielded the following valuations:
Plaza 21 Office Building
American Office Center
Exxon Service Station
Wendy's and Dunphy's
Thrift Drug
Weis Market
$2,940,000.00
$2,350,000.00
$200,000.00
$810,000.00
$291,000.00
$1,236,000.00
The total estimated value for the property on the basis of this analysis was rounded
off to $7,830,000.00.45 An overall evaluation based primarily on the comparable sales
method was not provided by the property owner's expert.
As will be discussed hereinafter in this opinion, the court, after weighing the opinions
of the experts, has concluded that the market value of the property should be set at
$8,500,000.00.
STATEMENT OF LAW
In tax assessment cases, the taxing authority's assessment is given a rebuttable
presumption of validity. Deitch Co. v. Board of Property Assessment Appeals and Review
of Allegheny County, 417 Pa. 213, 221,209 A.2d 397, 402 (1965). The taxpayer, then, must
come forward with credible, relevant evidence to overcome this presumption. Id. Once the
43 Id., 36-38.
44 "We have chosen to value the subject property using both direct and yield
capitalization .... The current leases with the exception of Weis Market and Thrift Drug, are
generally at market. Because of the long term, below market leases associated with the Weis
Market and Thrift Drug space, these portions of the subject have been value[d] using a
discounted cash flow analysis." Id., at 14.
45 Id., at 67.
9
taxpayer l/as done so, the taxing authorit?,s presumption of validity endg, Id at 221-22, 209
"In a tax assessment appeal theitn..'al court hears the case de novo and must determine
the fair market value of the property based on the competent, credible and relevant evidence.
If, as is typically true, the expert testimony conflicts, the trial court must determine the
weight and credibility it will afford to each expert." Pittsburgh-Des Moines Steel Co., Inc.
v. McLaughlin, 77 Pa. Commw. 565,568, 466 A.2d 1092, 1094 (1983); see Act of May 21,
1943, P.L. 571, § 704, as amended, 72 P.S. § 5453.704 (1993 Supp.). The market value is
to be determined "as of the date such appeal was filed before the board of assessment
appeals." Id., § 704(b)(1), as amended, 72 P.S. § 5453.704(b)(1).
"Pennsylvania case law has consistently held that actual market value is that price
which a purchaser, willing but not obliged to buy, would pay an owner, willing but not
obliged to sell, taking into consideration all uses [to] which the property is adapted and might
in reason be applied" County of Monroe v. Pinecrest Development Corp., 98Pa. Commw.
200, 203, 510 A.2d 1274, 1276 (1986); see In re Johnstown Associates, 494 Pa. 433, 431
A.2d 932 (1981); Serluco v. Cumberland County Board of Assessment and Revision of Taxes,
41 Cumberland L.J. 286 (1991).
"The function of the [court] in a tax assessment case is not to independently value the
property ... but to weigh the conflicting testimony and values expressed by the competing
experts and arrive at a valuation based on the credibility of their opinions." County of
Monroe v. Bolus, 149 Pa. Commw. 458, 463,613 A.2d 178, 181 (1992). Moreover, the court
"is not bound to accept the expert's testimony merely because it is the testimony of someone
having special skill or knowledge. All the components that the expert considered are matters
which the [court] considers in determining the persuasive quality of the testimony." In re
Appeal of Avco Corp., 100 Pa. Commw. 616, 621,515 A.2d 335, 338 (1986).
Approaches to valuation are the "cost .... comparable sales and income approaches .... "
10
Act of May 211 1943, P.L. 571,§ 602(a), as amended, 72 P.S. § 5453.602(a). "The
Assessment Law requires that all three approaches 'must be consid~'red ifflconjuncti_0n
with one another.'" Serluco v. Cumberland County Board of Assessment ancl Revision of
Taxes, 41 Cumberland L. J. 286, 290 n.13 (1991).46
"The cost approach values the property by considering the reproduction or
replacement cost of the property, less depreciation and obsolescence." In re Appeal of
Property of Cynwyd Investments, 679 A.2d 304, 308 n.2 (Pa. Commw. 1996) (citations
omitted).47 Under the income approach, the value of a property [generally] is calculated by
capitalizing the property's annual net income (gross income minus expenses). In re Appeal
of V.V.P. Partnership, 167 Pa. Commw. 282, 285 n. 1, 647 A.2d 990, 991 n.1 (1994).
Finally, under the comparable sales approach the value of a property is determined by
comparing the property to several similar properties, taking into consideration differences
in size, age, physical condition, location and other relevant factors. In re Appeal of Property
of Cynwydlnvestments, 679 A.2d 304, 308 n.3 (Pa. Commw. 1996) (citations omitted).
With respect to the income approach, in determining the net rental income for a
property an appraiser will employ either contract rent or market rent for the property. In re
Appeal of Property of Cynwydlnvestments, 679 A.2d 304 (Pa. Commw. 1996). "Contract
rent is '[t]he actual rental income specified in a lease.'" American Institute of Real Estate
Appraisers, Dictionary of Real Estate Appraisal 71 (1984), quoted in In re Appeal of
46 Act of May 21, 1943, P.L. 571, § 602(a), as amended, 72 P.S. § 5453.602(b); see
Reichard-Coulston v. Revenue Appeals Bd., 102 Pa. Commw. 227, 517 A.2d 1372 (1986),
allocaturdenied, 517 Pa. 611,536 A.2d 1335 (1987).
47 "Specifically, this method entails (1) estimating the value of the land assumed
vacant and available for its highest and best use; (2) estimating the reproduction cost or cost
new of the facility; (3) subtracting from the latter amount the facility's depreciation; and (4)
adding to this depreciated balance the value of the land estimated in (1) above." In re
Appeal of Property of Cynwyd Investments, 679 A.2d 304, 308 n.2 (Pa. Commw. 1996)
(citations omitted).
11
Property of'Cynwydlnvestments, 679 A.2d 304, 308 n.5 (Pa~ Commw. I996). "Market rent
is '[t]he ~'ental income that-a property ~o_uld mOst probfil3iy Eo~'ahdin- itie":~pefilmarket;
indicated by current rents paid and asked, for comparable space as of, the date:of appraisal.
Normally, contract rent should be utilized in determining the net rental income for
purposes of the income capitalization approach only if two conditions are met:
First, the remaining term of the lease must be of adequate length
so that if the property were placed on the market, a potential
purchaser would recognize the lease and be willing to pay more
or less for the property because of its existence than if the
property were unemcumbered by the lease. Secondly, the
contract rent must be either higher or lower than existing market
rent. Again, the difference between the contract rent and the
market rent must be large enough to affect what an able and
willing buyer would pay for the property.48
Where a long-term lease is below market value, it is appropriate to utilize contract rent
for purposes of determining net operating income. See In re Appeal ofMarple SpringfieM
Center, Inc., 530 Pa. 122, 607 A.2d 708 (1992).
To arrive at an assessed value of property, "[t]he court, after determining the market
value of the property .... shall then apply the established predetermined ratio to such value
unless the corresponding common level ratio ... varies by more than fifteen percentum (15%)
from the established predetermined ratio, in which case the court shall apply the respective
common level ratio to the corresponding market value of the property."49 The "established
predetermined ratio" is "the ratio of assessed value to market value established by the board
48In re Appeal of Property of Cynwyd lnvestments, 679 A.2d 304, 308 ( Pa. Commw.
1996).
49 Act of May 21, 1943, P.L. 571, § 704(c), as amended, 72 P.S. § 5453.704(c).
12
of county commissioners .... ,,5o The "common level ratio" is "the ratio of assessed value to
current market value used generally in the county as laSt determined ~by-tIfi~e state Tax
Equalization Board ,,si
APPLICATION OF LAW TD~F~.ET~
In the present case, the court was impressed with the analyses of both experts. In this
regard, each expert frankly acknowledged the existence of factors which tended to support
a result less favorable to the party which had engaged him. The school district's expert, for
instance, noted that "the site has limited parking, as well as difficult egress to North 21st
Street due to traffic congestion at the traffic light at its intersection with US 11/15 (Camp Hill
Bypass).''52 The property owner's expert asssumed that one of the operations, which had
been producing declining revenues, would reverse this trend,53 and that an existing 31 percent
vacancy rate in one of the office buildings would not continue;54 this expert also declined to
support the relatively low value placed upon the property by the board.
It is the court's view that a willing buyer and willing seller would find both of the
reports submitted on the subject of the value of the property helpful. The report of the
property owner's expert appears to the court to have been more faithful to the principle that
contract rent, as opposed to market rent, is appropriately considered in the case of long-term,
below market leases. In addition, the report of the property owner's expert endeavored to
treat the components of the property more individually in terms of capitalization rate and
method of appraisal.
S°Id., § 102, as amended, 72 P.S. § 5453.102.
S~ Id.
52 Appellant's Exhibit 1 (Appraisal of Hirsh Valuation Group), at 23.
53 Appellee's Exhibit 1 (Appraisal of Equity Appraisal Co., Inc.), at 35.
54 Id., at 14.
13
The report of the school distriCt'S~pert had the virtue of presenting a fully developed
and compelling compdrable sales anal~s and a i~0r~ coifii~reh-e-ris~¥~i~xpl~a~_/itio-a Of-~the~
expert's position. It also displayed mor' familiarity with local conditions,.
Being cognizant of the court's obligation to weigh the conflicting testimony and
values expressed by the competing experts, and to refrain from independently valuing the
property, the court is of the view that the value of the property in question lies between the
appraisals of the experts, with the position of the school district's expert being accorded
slightly more weight primarily because of a more developed comparable sales analysis. The
result is a valuation of $8,500,000.00.
For the foregoing reasons, the following order will be entered:
ORDER OF COURT
AND NOW, this 21st day of September, 1998, upon consideration of the tax
assessment appeal filed herein, following a hearing and in accordance with the
accompanying Opinion, it is ordered as follows:
THE MARKET VALUE as of August 1, 1996 (and for succceeding years until
revised), for the 10.37 acre parcel owned by Appellee Prosperity Development Company,
situated in East Pennsboro Township, Cumberland County, Pennsylvania, and bearing tax
parcel number 09-20-1854-004, is fixed at $8,500,000.00.
THE PERTINENT COMMON LEVEL RATIO for Cumberland County has been
stipulated to be seven percent. The predetermined ratio was 25 percent.
THERE BEING A DIFFERENCE of more than 15 percent between the common level
ratio and predetermined ratio, as a result of which assessments are to be determined by ap-
14
plication of the common level ratio to market value, the assessment with respect to the
aforesaid parcel is fixed at $595,000.00 as of the aforesaid date.
BY THE COURT,
Richard C. Snelbaker, Esq.
SNELBAKER, BRENNEMAN & SPARE, P.C.
44 West Main Street
Mechanicsburg, PA 17055
Attorney for Appellant
Stephen D. Tiley, Esq.
5 South Hanover Street
Carlisle, PA 17013
Attorney for Appellee Cumberland
County Board of Assessment
Michael J. Pykosh, Esq.
Suite 205, Wagner Building
355 North 21st Street
Camp Hill, PA 1701!
Attorney for Prosperity
Development Company
[sZ~ Wesley Oler+Jr.
J. Wesley Oler, Jr., J.
15