Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: TUESDAY, March 19, 1991 TAG: 9103190296
SECTION: VIRGINIA PAGE: B1 EDITION: METRO
SOURCE: JOEL TURNER MUNICIPAL WRITER
DATELINE: LENGTH: Medium
That's the value that Roanoke's Real Estate Valuation Office put on his property at 2720 Shenandoah Ave. N.W. when it sent out new assessment notices in January.
Less than two months later, Battin was told his house and two lots were worth only $23,500.
That's the price offered to him by the city's Redevelopment and Housing Authority, which wants the property to help develop the Shaffers Crossing Industrial Park.
Battin was taken aback by the authority's offer. He had assumed his assessment was close to the fair-market value of his property.
Shortly after the authority's $23,500 offer, the city reduced his assessment to $26,100. That made him suspicious.
"It looks like they are trying to get my property for nothing," Battin said. "I have been paying taxes at a higher price and now they want to buy it and they say it's not worth that much."
But city officials denied they are trying to acquire the property at below fair-market price.
Von Moody III, director of real estate valuation, said the $43,100 assessment was a mistake. The property has been erroneously assessed for several years, he said. It was valued at $38,600 in the past year, but that was too high, he said.
"An error was made. When he found the mistake, we corrected it. I regret it, but that's all we can do," Moody said. "There has been no intent to get anyone's property at less than fair-market value."
Battin can receive a refund for overpayment of taxes for the past three years because of the erroneous assessment, Moody said. Battin is entitled to the difference between the taxes on the revised assessment and the mistaken higher value. State law limits refunds to three years.
Battin has hired an attorney, who is negotiating a sale price with the authority.
Moody said the error occurred partly because the house and lots are zoned for industrial development, although they are being used for residential purposes. Battin has been allowed to keep using the property for a residence in what is classified as a non-conforming status in the zoning regulations.
The property is in a transitional area that is shifting from residential to industrial use, he said. Because of the industrial zoning, the house has no value because it would have to be razed if the property becomes part of the industrial park, he said.
But city appraisers did not catch the zoning change and the fact that the house actually is a liability, rather than an asset, if the property is used for industrial development, Moody said. "Because of the way our computer system works, we had been increasing the value of the house," he said. It was valued at $12,000 when new assessment notices were sent out in January.
"We deal with 44,000 parcels of real estate each year and there will always be mistakes," Moody said. "We have to expect people to come forward if they think their assessment is too high." Battin had never complained about his assessment.
When the authority decided to try to buy Battin's property, it hired a professional real estate appraiser to determine a fair-market value. Federal regulations require the agency to obtain an independent appraisal for all property that is bought with federal money.
Appraisers determine the market value on the basis of what is considered to be the highest and best use of property. In Battin's case, this was determined to be industrial development because of the zoning and location of the property. The appraiser determined that the house had no value if the property is used for industrial development.
"It's a complicated case. You have a non-conforming use in an industrial zone. The house isn't worth anything for industrial development. You've got to tear it down and it could cost $2,500 to $3,000 to do that," said one official who did not want to be identified.
Moody denied there has been any collusion between his office and the authority, a separate agency.
But that hasn't satisfied Battin. Although the house may not be worth anything for industrial development, he said it has been his home for 50 years.
"The house is paid for. They come in and root you out and don't give you enough to buy another house," Battin said. "I don't know what another house will cost, but $23,500 won't hardly cover the cost of a mobile home."
by CNB