Mid-States Terminal, Inc. v. Lucas Cty. Bd. of Revision, MID-STATES

• Decision Date: 24 July 1996
• Docket Number: MID-STATES,No. 95-1951,95-1951
• Citation: 76 Ohio St.3d 79,666 N.E.2d 1077
• Parties: , 110 Ed. Law Rep. 799 TERMINAL, INC., Appellant and Cross-Appellee, v. LUCAS COUNTY BOARD OF REVISION et al., Appellees and Cross-Appellants.
• Court: Ohio Supreme Court

Page 79

76 Ohio St.3d 79

666 N.E.2d 1077, 110 Ed. Law Rep. 799

MID-STATES TERMINAL, INC., Appellant and Cross-Appellee, v. LUCAS COUNTY BOARD OF REVISION et al., Appellees and Cross-Appellants.

No. 95-1951.

Supreme Court of Ohio.

Submitted April 4, 1996.

Decided July 24, 1996.

Mid-States Terminal, Inc., n.k.a. Countrymark Cooperative, Inc. ("Mid-States"), owns a grain elevator and associated facilities located along the Maumee River in Toledo, Ohio. The real property consists of twenty-one parcels covering a total area of 19.123 acres, of which parcel No. 18-77207 covers 4.03 acres.

Mid-States filed a complaint with the Lucas County Board of Revision ("BOR"), along with an attachment listing the parcel numbers and descriptions of twenty-one parcels. The only parcel for which Mid-States requested a decrease in value was parcel No. 18-77207. The Toledo Board of Education filed a countercomplaint in which it asked that the auditor's valuation be retained. The BOR found that no reduction in value should be made. Mid-States filed an appeal with the Board of Tax Appeals ("BTA").

After hearing and considering the opinions of value put forth by the appraisers representing Mid-States and Toledo Board of Education, the BTA accepted the $6,700,000 valuation presented by Mid-States' appraiser, Dennis E. Vogan. Although Mid-States' notice of appeal to the BTA listed twenty-one parcels of property, the BTA's decision attributed Vogan's $6,700,000 valuation entirely to parcel No. 18-77207, stating in a footnote:

"As previously indicated, the subject property is identified as being comprised of twenty-one parcels in appellant's complaint, notice of appeal and the January 26, 1995 agreement. Vogan's appraisal report, however, indicates that the subject property consists of only twenty parcels. * * * He testified at hearing that he believed the remaining parcel is owned by the Toledo Port Authority and leased to Countrymark. * * * It still remains unclear whether the value opined by Vogan and accepted by this Board should be considered to be the total value of all twenty-one parcels, twenty parcels or the single parcel which is contested. Given that appellant has the burden of demonstrating the value of the property at issue and as the $6,700,000 is closer to that value claimed by appellant in its notice of appeal and the January 26, 1995 agreement, we have attributed the entire value to parcel number 18-77207."

Mid-States filed a notice of appeal with this court, as did cross-appellants, Toledo Board of Education and the BOR.

This cause is now before the court upon appeals as of right.

Stephen Swaim, Columbus, for appellant and cross-appellee.

Anthony G. Pizza, Lucas County Prosecuting Attorney, and Ralph C. Zychowicz, Assistant Prosecuting Attorney, for appellee and cross-appellant, Lucas County Board of Revision.

Spengler Nathanson and Michael W. Bragg, Toledo, for appellee and cross-appellant Toledo Board of Education.

PER CURIAM.

The decision of the BTA accepted the $6,700,000 valuation put forth by Mid-States' appraiser Dennis E. Vogan. The BTA applied that valuation to parcel No. 18-77207, thereby leaving the valuation of the other twenty parcels unchanged. However, the BTA itself raised the question of whether the $6,700,000 value it accepted was applicable to just parcel No. 18-77207 or whether it was applicable to all twenty-one parcels.

Mid-States contends that Vogan's opinion of value is applicable to all twenty-one parcels, not just parcel No. 18-77207. Mid-States contends that the values for the twenty parcels (excepting parcel No. 18-77207), plus the land portion of parcel No. 18-77207, are to remain unchanged at $1,503,970, and that the building valuation for parcel No. 18-77207 should be reduced from $10,553,400 to $5,196,030. When added together, the value for the twenty parcels, plus the value of the land and buildings for parcel No. 18-77207, totals $6,700,000.

We have reviewed the entire record, especially Vogan's testimony and appraisal reports, and we agree with Mid-States' contention that Vogan's valuation of $6,700,000 includes all twenty-one parcels of real property. Appellant's Exhibit A is an appraisal report prepared by Vogan as of the assessment date of January 1, 1992. Appellant's Exhibit B is a written appraisal prepared for Countrymark Cooperative, Inc. as of May 31, 1993. In his testimony before the BTA, Vogan explained that he was originally contacted by Mid-States in the summer of 1993 to prepare an appraisal of its Toledo facility for internal purposes. At a later time Mid-States requested Vogan to prepare another written appraisal for its Toledo facilities as of January 1, 1992. In his transmittal letter attached for the January 1, 1992 appraisal, Vogan stated that his May 31, 1993 appraisal was incorporated by reference.

A review of Vogan's appraisal reports clearly shows that Vogan's appraisal covers all twenty-one parcels, not just parcel No. 18-77207. In the transmittal letters for both the January 1, 1992 and May 31, 1993 appraisals, Vogan states that his appraisal includes "the property rights of fee simple estate on all owned land and leasehold estate on any leased land." In both appraisals, the site being appraised is described as "19.123 acres more or less, of owned land, includes IRB site, and a small leased tract from port authority." His description of "Property Rights Appraised" in both appraisals states that it "includes the underlying real estate * * * involved in this business." In the cost approach set forth in his May 31, 1993 appraisal, Vogan devotes a page to "Site Valuation." Under the Site Valuation heading, Vogan divides the total acreage of 19.123 acres into three different categories and ascribes a different value per acre to each category. The three categories of real estate values contained in the May 31, 1993 appraisal...