HomeMy WebLinkAboutbocc.res.165.2010AP.PROVED BY /f�" �""��' � ,¢ o .��� ��
RESOLUTION FOR ASSESSORS AND COUNTY COMMISSIONERS USE ONLY
� // c I �1 O/ O (Section III or Seclion IV must be completatl)
G
�o � � Fw ' abalemen� or refunO filed pursuant to section 3&10-114 shall be aded upon Wrsuanl to ihe pmvisions of ihis section by ihe
boaN of counly commissioners or ihe assessw. as appropnate, within siz monihs of Me date of filing such peliuoq § 39-i-113(1.7), C.R.S.
seaion m: Written Mutual Agreement of Assessor and Petitioner
(Onty for abetements up to $1.000)
The commissioners of Counry authorize the assessor by Resolution No.
to review petltions for abatement or refund and to settle by written mutual agreement any such petition for
abatement or refund in an amounl of one thousand dollars or less per trec[, parcel, or lot of land or per schedule
of personal property, in accordance with § 391-113(1.5), C.R.S.
The assessor and petitioner mutually agree to the values and tarz abatementlrefund of:
Tax Veer
Aclusl � T�2
Originel
CORBGIBfI
AbetelRefund
Note: The to(al taz artrount daes not indude accrued Interest. PenalNes, end fees asmdateL wBh late endla AelinQUenl taz peyma�4s. tl
epPlicable. Pleese cmtact Me wunry treasurer for full payment informetion.
Petnioner's Signature
Auessor's or Depuly Acsesso/s SignMUre
ge�;o� iy; Decision of the County Commissioners
(Must be com0/I��t,ed N Sgction III does not appy)
WHEREAS, The Counry Commissi ners of !�� �� County, State of Colorado, at a duly and lawFully
plled regular meeting held on �/�/L_, at which meeting there were present ihe follovring m_�
` . p� Day Year
wilh notice of such meeting and an oAportunity to �prgsent having been given to the er and the Assessor
of said County and
and
and WHEREAS, The said
v "v-
County Commissioners have carefully conside d the within petition, and are fully advised in relation Mereto,
NOW BE IT RESOLVED, That the Board rees oes not agree) with the recommendation of ihe assessor
and the petition be (approved pproved in pa enied) with an abatement/refund as follows:
�g_ \��{ 1�6D � �O�lz.S��
Vear AssessedValue T�esAbate/Refund � �A A L-'. _
YV "l/`� t.
T_ Chehpenon of tha B rd of County Commiscionxc' Sipnature
�� �lN�r/�Y'/�1/ Courrty Clerk and Ezoffido Clerk of Me Board ��County Com '
in a�id for the aforemen oned munry, tlo hereby certify that the above and foregoirg order rtruly co ' f
record of the proceedings of the Board of Counry Commissioners. 4�'C Y�
IN WITNESS HEREOF, I ve hereunto set my hand and affixed ihe seal ot said County ; (�L� A i
►71it1L
this day of � /�% � �
MoMh Vear . _ ' _ " . _ _t
Note: Abetements greater than $1,000 per schedule, per yeer, must be submttted in tluplicate to ihe Properry Taz Administralor far
section v: Action of the Property Tax Administretor
(FOr all ebriements greeter than 51,000)
The aclion of the Board of County Commissioners, relative to the within petition, is hereby
❑ Approved ❑ Approved in part $ ❑ Denied for the following reason(s):
SigneNre PropeM1y Taz AtlminisVaMfs Signelure Date
6 z,
PETITION FOR ABATEMENT OR REFUND OF TAXES
County: P�kin
Section I: Petitioner, please complete Section 1 only.
Date: September 1 2010
Mon�h Dey Vear
Pedtioner s Name: New Limelight, LLC
Petitioner's Mailing Address: 355 S. Monarch Straet
Ciy or Tawn
SCHEDULE OR PARCEL NUMBER(5)
R020218
Date Receivetl
(Use Asseswr's a Commissioners Dete Stnmp)
CO 81611
Sta[e Zip Cotle
PROPERTY ADDRESS OR LEGAL DESCRIP710N OF PROPER7Y
355 S. Monarch Street
Petidoner states that the taxes assessed against the above property for the properly tax year 2008 are
incorred for the following reasons: (Briefly desuibe the cirwmstances surrounding the incorrect value or ta�c.
Attach additional sheets'rf necesury.)
See Attached - 6chibit 1
Petitioner's estimate of value: $ 21 853 368 20( O8 )
Velue Year
Petitioner requests an abatement or reTUnd of the appropriate faxes.
I deGare, under penalty of perjury in the sewnd degree, that this petition, together with any accompanying exhibits
or staiements, has been prepared or examined by me, and to ihe best of my knowledge, information and belief, is
irue, correct, and complete.
SEP 0 7 2�'�
Pitkin C�unRy
i�188'L'CySOf
Daytime Phone Number ( 1
Patl' s n�
gy Daytime Phone Number ��� 1^��i �� � �oS
AgenYsSiBn�Wre` I Spf.G1G�^S�( 1 �'M1C.
� �6f'r ...� Vo�b�r—�r S�c/�:��rLi�v� /^f' �
•Letter� aganry mwt �chetl when petitlon b aubmithtl by an agant.
If the board of eouMy eommissioners, pursuant to seetion 39-10-714(1), or the property tax adminisVator,
pursuaM to section 39-2-116, denies !he petition fw refund or abaGmeM of taxes in whole or in part, the
petitioner may appeal to the board of assessment appeals pursuant to the provisions of section 39-2-725
within thirty days of the entry of any such decision, § 39-10.114.5(1), C.R.S.
Section II:
Original
coR.�eea
Assessor's Recommendation
(FOr Aacesaors Use Only)
Tm�Vaar Z�
Actual AsuuW
��z i T 6�
65 � � S b
Taz
� Z�S,b4o.Zo
�,�4 �l.�o
Abate/Refund �1v_��Q.Q_ '�' ,$ =�.1/-�-�=>D
� Assessor recommends approval as outlined above.
No protest was filed for the year: (rc e poroae was rned, v�ee.e anaen a eopy or ene Hoo.)
❑ Assessor recommends denial for the following reason(s):
a��� ; � P�� �0.s�� �-
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Sch# 20218, New Limelight LLC, Limelight PUD, North Parcel. for tax years 2008
and 2009.
These are two abatements for the Limelight Lodge, filed on behalf of the former owners,
New Limelight LLC (the Paas Family). The Limelight was completed and opened for
business at the end of 2008. So as of the 2009 tax year (January 1, 2009) the property
was being valued as a completed hotel. In 2009, the Paas family decided not to appeal
the value which had been set at $50,690,500. In 2010, the downturn in the economy
forced the Paas family to sell the lodge which was purchased by the Aspen Skiing Co.
for $33,833,000 (after personal property was deducted from the total purchase price of
$37,925,000). The Ski Co. appealed the 2010 valuation once they became the owners
and in 2010 were successful in having the value reduced to $39,000,000 through the
County Board of Equalization. This valuation has since been appealed to the State
Board of Assessment Appeals and is currently pending but has not been scheduled.
Since the 2010 valuation appeal is still pending, the assessor's office requests that the
abatement for 2009 (the first year of the two year cycle) be denied pending the outcome
of the 2010 BAA appeal. Once the 2010 valuation has been established by the BAA,
we will make that value retroactive to 2009.
For the 2008 tax year abatement request, the value reflects the condition of the property
as of January 1, 2008. At that date, the hotel was still under construction and was
estimated to be approximately 35% complete. The assessor's value for that year was
$27,112,700. This was derived from a land value which was based on the owner's
purchase of the underlying land (then the SnowFlake lodge) plus 35% of the $30 million
cost of construction as shown on the building permit for the new lodge. For new
construction this methodology is typical in Pitkin County. The owner is requesting that
the 2008 value be determined by taking the finished value from 2009 (still to be
determined), subtract the land value to determine the finished building value and then
apply 35% to that number.
Again, since the 2009/2010 value is still yet to be finalized pending the outcome of the
2010 BAA appeal, the assessor's office is requesting that the 2008 abatement be
denied at this level with the ultimate value to be determined following the outcome of the
2010 BAA appeal.
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PROPERTY TAX SPECIALISTS, INC
September 1, 2010
Mr. Tom Isaac
Pitkin County Assessor
530 East Main Street, 3�d Floor
Aspen, Colorado 81611
Attn: Larry Fite
950 S. Cherry Strect, Suite 320
Denver. CO 80246
Office: 303-757-a865
Fax: 303-757-769 I
wwwsrerlingpropenytaxspecialists.com
RE: Limelight Lodge (Schedule No. R020218) (the "Property")
Gentlemen:
" PETITIONER'S
� EXHIBIT
e
� 1
�
The undersigned, Sterling Property Tax Specialists, Inc., represent the owner of the
Property for the purpose of filing an abatement for calendar year 2008. A copy of
the Letter of Authorization is attached hereto and made an integral part hereof.
The Property is a 126-room hotel located in downtown Aspen consisting of 36,917
sq. ft. It was constructed over a two-year period, with construction completing in
late 2008.
Petitioner has engaged Duff and Phelps, LLC to determine the fair market value of
the subject Property as of June 30, 2006: Attached hereto as E�ibit A is the analysis
prepared by Duff and Phelps, LLC, which analyzes the fair market value for valuation
purposes as of June 30, 2006.
Based upon the details outlined in Exhibit A, Petitioner hereby requests the Board
adjust the value for the Property for calendar year 2008 to $21,853,368.
All information contained herein should be considered confidential and not
available to any third parties.
Respectfully submitted,
STERLING PROPERTY TAX SPECIALISTS, INC.
.�� �.���-
Bv�
Barry J. Goldstein, President
63
� EXHIBIT
E A
a
ouFa x r��ai.e�s, i.t.a ��?sn �7r, s rxern, sui rr. znna� • uc nv�k,-cc� xmn, •,v�:3n, >nn vom .�: �;x �n� � �..�ii� i �
DUFFf�PHELPS E'
i;
,
',
.
August 11, 2010 � �
,
ti
Mr. Larry Fite i
Pitkin County Assessor's "
Office
SOb East Main Street j'
Suite 202 '
1
Aspen, Colorado 81611 '
i
5ubject: The Limelight Lodge 2008 Real Estate Assessment' �
't
,
Dear Larry:
The purpase of this document is to sununarize and prouide support for our valuation contention
regazding t� yeaz 2008 Actual and Assessed Values of the Limelight Lodge (the "LimelighP').
The Limelight is located at 355 South Monarch Streeti, Aspen, Colorado. The foilowing table �;
indicates the property's real estate assessment account numberand its associated Actual and ;
Assessed Values for tas year 2008 as calculated by the Pitkin County Assessor's Offiee. j
r
,
�'A�P'Y�A�t.�0U8 j
Account Property ActuslI,end' ActualLnprovement ActualTotal ` Assessed �
Nnmber Description `Value ' Value Valne Vslue c
R02021$ LimelightLodge $16,612,706 $1Q500,000 $27,112,700 $7,862,680 €
�
T'he ptaposed values aze as follows: �
�
: �- _ < � ', ; �:, �i148 WFS3,.� � „ � � ° .; ,: �x . ° " �;
Ac¢oant �� Praperty Aetaal Land� Actual Imp*uvament Actual Total � Asaesaed
Number ' Description Value : Valae Valne , Valae
R020218 Limelight Lodge $16,612,700 $5,240,668 $21,853,368 $6,337,477
Sincerely, '
�C�� �- P����� t t G.%
Duff & Phelps, LLC
Page 1
�4
The following narrative describes tbe Limelight property and the taxpayer's reasoning in seeking
requested reductions in its Actual and Assessed V alues for tax year 2008.
HISTORY OF THE PROPERTY
Aspen Skiing Company putchased the Limelight Lodge from New Limelight LLC in April 2010.
Currently, Ihe property is owned by New Limelight LLC, a partnership that includes Dale Paas and Susan
Woolery (under Next Genera6on Invesunents, LLP and Limelite, Inc.) and Steven Szymanski (under
Szymanski Development Parmers, Inc J.
Title to the majority of the property transferred from Limelite Inc. to Limelite Redevelopment LLC on
January 13, 2005. The propert}� inctuded in this transfer was 41,973 square feet of land along the north
and south sides of Cooper Avenue. This land was previously improved with the Limelite, Deep Powder
and Ski-Vu L,odges, all of which were subsequenHy demolished to allow for the development o( the new
Limelight Lodge and Monarch on the Park condominiums.
Limelite Redevelopment LI.0 acquired the remainder of the subject si[e from Chicago Snowtlake
Corporation on January 17, 2005. This transaclion induded 18,561 square feet of land orignally
improved wi[h the Snowilake Inn.
The conshuction of the new Limelight Lodge occurred over a two year period from November 2006 to
November 2008. The property was built in conjunction with the Monarch on the Pazk condominiums.
Without approval to build the Monarch on the Pazk condominiums, the hotel component would not be
feasible. It is our understanding the profits from the sale of the condos were [o be used to pay off [he deb[
of the hotel.
Page 2
6S
STTE ANALYSIS
Page 3
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The Lunelight is a four-story, limited-service hotel that opened for business in November 2008. ;
The property contains <126 hotel rooms, a 1;800 squtu�e foot meeting room, an outdoor heated ; f,
swimming pool and two Jacuzzis, and underground pazking for fifty uehicles. The properry does '
not contain any employee housing units. T'he eacterioT facade is mainly brick, with some conczete ,
masonry enhancement, s[uoco, and metal siding. �
;
The main entrance is on Monarch 5treet. Inside is a lazge lobby azea with a lounge, receprion i
and kitchen/dining area. A conference room is behind the kitchen azea. Double doors in the i:
back of the'lobby lead to an outdoor patio with a paol and Jacuzzis. �
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Based on discussions with the Pitkin County Assessor's Office, fhe property was 35% complete #;
as of January 1, 2008: I'
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Page 6 i;
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Page 7
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VALUATION ANALYSIS
Hotel Income Analysis
The following information was reviewed:
. The Developer's Forecast Upon Stabilization for the L'unelight
. The Rocky Mountain Lodging Report
• The 2007 Smith Trauel Research Host Study for Limited Service Resort Hotels
. The Colorado Division of Property Taacation course material for APR 215 titted
Hotel/Motel Workshop (2006) valuation in order to document the methodology
prescribed to Colorado assessors to estimate the real estate component of a going-concern
hotel.
The following valuation analysis was performed:
. The property reopened for business in November 2008 after a complete teardown. 'I'hus,
a full operating history was not obtained untii after yeaz-end 2009. Therefore, we have
reconslruoted the 2009 operating statement with expenses related to the hotel business.
. Income and expenses were normalized for the hotel to calculate its going-concern income
stream. As previously mentioned, our analysis reflects the 2009 openting statement for
the L'unelight Lodge. However, the normalized column is adjusted to reflect the ,
stabilized pmperty operations as of June 30, 2006.
• Deductions to remove income attributable to the tangible personal property were made.
The personal property deduction was based on the actual cost of the FF&E. We have not
been able to validate the eacact amount of the assessment for this property, wluch could
have a minor impact on our conclusion of value.
• Sales of other resort hotels were obtained in order to determine the appropriate
capitalization rate to be applied to the Limelight� We reviewad Securiries and Exchange
Commission filings and offering memorandums to obtain sale price and income and
expense data for the comparable hotel sales.
. After reviaw of this data and review of historical capitalizarion rates for limited service,
full service and luacury hotels from the Korpacz report, a capitalization rate was selected
and applied to the subject's stabilized income stream.
• The result of our analysis is s»mma,;zed on the following pages.
The Developer's Forecast upon 5tabilization
When a new hotel opens, it typically takes two to three yeazs for the property to stabilize. The
Developer's expectations for a stabilized property are outlined balow. The L'unelight was
expected to stabilize in 20ll with a 65% occupancy and $211 average daily rate. Department
expenses and mazketing expanses appeaz low when compazed to other properties in Aspen and
compared to Smith Travel Research. In addition, a reserve for replacernent is not included in the
net operating income and is generally considered an above the net opetating income line item
expense for hotel properties.
Page 8
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Develaper� Farecast Uport St�bitizetia�
(unautlitedj
kimelight Lodge
Caiendar Ysar. 2fl11
AveraOe Wum�er of Guesqourt�s: : t2fi
t?ccuPieC Fda�[rd�hts: 29.�A
��cY i 65i6 �
+kverape Routn Raie. 5211.AD i
' Ravi'AR St37.15 ;
Fot91 Pet�ent of
R�IYilW�' � �,�, � i '
� ' ` B 3f1T:52$ "{i%ttF�6 ` �9'3.�P# �q�
'€�"7TJd..:�ajt1E 6,J07.� t�U1Ml4 it`#.E}� �il,dtkBti
l7�PAR7�11FNTkt EXPEWSES*
Roocns 1,17d,0UQ f8.6l6 33.27 931T '
� TfITAL EX1'ENSES > 1.974;Q�U 19.&46 393T 9,31 F
DEPNtTN�NTAL 1PICOA� 5.133,529 Bt.44§ 171.73 40�7d2
W3DfS7RfBtIFE'D t?PER4'77NC3 �yCf'EN9ES �
A�ve �xf Denerat 723;f7QD 1 L596 24_19 5,?3B
' ��` !�1'1.6704 �:14l6 .:�- 3.tk1 714 � . ` ` �.
�' i35;0IX1 2.4l6 418 992 I
PaoperqriideYrmer�ce 200>il0{1 32�6 6_89 1,587 ;
h�ieMFeBS 7&f� `1.2'b 267 S1A
TQFALUNDISlRfBUTED i.216:� 19_39� �A.x58 9.&51
GROSS RROFR 3�,Q97;529 52.t°.m 131.05 St,091 �
FlXEACHAROES I
PEOp�tYTazes 3AL9:d0U 4.8l6 iB.lk4 2,361 4
� tSQA� 2.4l6 5.U2 i119a �
iQfiAL FlXEA ClfAR�i£S 450.00U 7.196 15.�5 3,571 �
NE? INCOME BEFORE RESERYE 3.487;52g 55.Q�% 716.t1� 27 52� �;
�,
Reae�ve kx^ Rap�einerM � QR4b C.EIO 0
IVCTIN E`�F°�i+� FA�7, .096 i, ; �
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Aspen Lodgiug Market
The following tables summarize the Aspen Lodging MazkeYs Occupancy and Average Daily
Rate (ADR) for the base yeaz in questions.
Based upon the charts above, ADR increased 3.45% from 2005 to 2006 and occupancy increased
5.9% for a RevPAR growth of 13.88%. The weighted average ADR for both yeazs is skewed
upwatd because of the Luxury hotels included in the competitive set, namely the Litt1e Nell
Hotel and the St. Regis.
Page 10
1�
By removing the Little Nell Hotel and the 3t. Regis from the competitive set, an ADR of $260 is
indicated for all other hotel types. We believe the Limelight is indica6ve of other, mid scale
properties in the Aspen Market An ADR of $260 and occupancy of 65% was selected for the
2008 analysis.
The following tables show our income analysis for ta7c year 2008.
Page 11
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�4
Page 12
15
_ __
_ _
_.._ __
Summary of Key Assumptions used in Stabilizing the Income and Ezpenses
for the Limelight
RevPAR
As previously discussed, we relied upon the Rocky Mountain Lodging Report to conclude to
RevPAR for the 2008 analysis. Concluded RevPAR for 2008 is $169.
Departmental Income
With the majority of the population owning mobile phones, minimal revenue is generated from
telecom anymore. As such, we did not include telecom revenue. Other income includes travel
insurance fees, vending and parking income. The Actuals for 2009 show Other Income was
approxcimately 2.8% of#otal revenue. The same was used for the 2008 analysis.
Departmental Elmenses
The Limelight is a limited service hotel. However, included in the nighfly rate is an allowance
for a continental breakfast. The food expense associated with the breakfast is inciuded as a room
expense and is similar to how Smith Travel Research accounts for continental bzeakfasts if the
reporting hotels include a breat�ast. 30% of room revenue was concluded for the room
department expense. The Actuals for 2009 seems to be indicative of an unstabilized hotel.
Smith Travel Research is most appmpriate with an upward adjushnent for the breakfast included
in the room expense. 30% is also supported by other Aspen hotels who's data is contained in our
files. We did not include a telecom expenses. Typically, the eacpense associated with telecom is
greater than the revenue received. At any rate, we did not include any telecom revenue or
expense.
Undistributed Exoenses
The undistributed expanses were based primarily on Smith Travel Reseazch with some weight on
the 2009 Actual Operating Statement Repairs and Maintenance was estunated below Smith
Travel Reseazch because it is a new property and will likely have fewer maintenance issues
comparecl to an older property.
Gross Operatine Profit
As compared with other Resort Limited Service Hotels reported by Smith Travel Research, the
Gross Operating Profit is nearly identical proving support for our previous assumptions.
Fixed E�penses
Insurance is expected to be similaz to the 2009 Actual Operating Statement. Thus, 1.6% of total
revenue was used to calculate insurance. Managemem fees were stabilized at 4% based upon
Smith Travel Reseazch. A reserve for furniture and fixture replacement was calculated at 4.8%
of total revenue, based upon Smith Travel Reseazch. -
Page 13
_
i6
Canitalization Rate SelecHon for Taac Yeaz2008
The lwcury, full-service and limited-service hotel market saw decreases in capitalization rates up
to ls� Quarter 2008.'Since that time, capi4alizarion rates have been on the rise.
,
CapMalastionrRateSurvay: National��HoielMarket-:Luxury �.��
.'.DAR 1 . :TemYb1N
��Perbtl � � +�..
�tar. HqM1. �.AVY. Law : ��Hph a✓9 �.�� 1500% . ._ �� �.: . . . ��.
3�iBW 7A0%� 11A0% BRO% 800°6 12:00% 9W% ���4A0% �
i01B98 eD0% 1150% 809yn B00% 1200% B.BB% �.�300% � �������� .
Q31898 800%� t200X 919% 700% 11�.5�% BSB% ' ^ �,
1�iBBB 600%: 12R5% 925% 700% 11S09L 9.88% 1200% � �
03t989 B00%. 1235% 92B% 900% it:50% 8.72% :i100% ��^�.�M!��
'IQ2000 6.00%� 121$% 887% 7.00% 11:50% 883% : � 1000% , � � ��'� � 4 „ . �., Y�.
���32000 8.00%� 11.009i 8:47'b 7S0% 10:90% 963% �. 806% fv ` �T T d= � �� �'":
14 2001 8 00% �. 1 i 00% B 60% 7.6096 11 q0% 9 85% yC �, ��� �''`,.,tC � T a �� i � �a �'w �: y, �' �
032001 BOU%� 1150% 968'k 750% 1150% 9BU% � B.0076 k �' r.: �� . �" �
Q'12002 B00%�. 10.A0% 7068% 8 W% 14.00% 1056% � ��� ��t " y�s. ��- � �" � kf +�
oazoox eoo+c�: tamvs eeoss eoms �2oow io.isw �� a.00w, '-- � � + �„ � ;� i+� - , `
oi-zoos �.oaw�� +a.soss a.tox e.00w iz:sow �ozovc ��. eoox "� ."�" � $ " . . ,, ,.4 a.
oazoaa �oow�: ��.sosa e.esw a.00w yz:sow w.ts% . *
:n1 Poa A00%�. iis0% 6.38X e.W% it:SO% to.t7% �� aao% °. '� ^w, � " ^'' � � �4 g ,� � ' � a � i �:.
� � 3.40% �� .
' .e ., ; w . �,. �� a. rz. ,'� ' t. < .w
��:Q94D03 T:00%� Y1.50%:`9,89% B.W%.Y2S0% 7073'b .� g �`�..
q�2ooa z.00�c ��5ow. 9.3B^A e.ww t�sow to��% g������go°°pR°°o��'�''�'���g;�°dSS
.CSROOO JAOYL. iiS�'iS B23Yo %.WYL 11SO9S i003Y� N N R N N R N N N N
oo8°b"OO�ao200085000o8'o&bo'oS
-072005 bA0%- U60%.:8.70% 8.50K 71t60% .9.83%.. '° "
�.�432005 5.00%� 10b0% e!32% 8.6W: N:00% 827% ��
�Q1.2006 5.00%-7050% �8.32% 6A0%�-71100% 9A7% � �PVerepe'.C.pghCeP��.��. � �'�OBhCepRge ��. � HghCak�hCepRete `.
��.�32006 4.06%:�� 10.0094 7:88% IAD%.-7025% B.BB% �� rrAVeiageTemtulC2pPe'e... .+-� �ow:TerrtFribpRde .. ��i(pnTermnelppibte:. �.
^��41:80�7 �4[00%� 10.50%:Z:50% 4A0%�..91,00% 689%��.
�!�320W 4.00%: idSO% �753% BAO% 11-.00% 8.77%���: .
-.Ot.2008 4l00%.- tO.W%.'7:50% 5.00Y ':71�,60% 8.72% :�: .
.032008 4.00%-7050% P:B7% 500% 71A0% 8.71%-.�. � �
....�i.2008 4:00%: 12,00%�.�.BI00% �6'.00%�:70:50% BA1%� �
: A3�2008 Z00%�>.'1200% '825% 7.00'b '7125% 825% . . �
:...Sourw:PrlewwtwlrouaCeepKp(arWaRplEmt�:InvrrorSUru�y,�ComptIM0Y�6PIWpyL[C ��
���:NateDdfeWCbHdndYdMe9te�'dMi9yprte� ..
��:CapNallzallon':Ra4eSuney: NationalHotelMarket-FullService�� �!��
.. �PSNOtl DAR I ie/mlMl
.�: Lav': N/pri /IrF` Low <HW6 AvY -.1500% . .. _..._ ��.��.
3Q4B8] 8.00%' 143q96 7020% B00% 14:00% 7080% �4m� � 7..�
7Q78B8 8.00%��12.00Yo 8:8816 8.00% 12A0'b 1090% ._�.
�31898 8.00%.12.00% Bb8l6 e.00K 12IIOX 10.6(% ��7300% ��T f.
7�Y889 B.W%��. 13A0% 10A2% BAO% 72A074 70.54% .. ' „`.: � '� •��:
. �4200% . ._.. _ ., _,..___,... . i
a3�:iB9B 8.009: 1300% 70,t516 800% 12.00% Y6.58% '� � ��
1Q2000 8,00%�Y3W% 7022% 8.0096 12.00% 70.60% -��� � �:,� ^ �'�' r� �a
IX120D0 HOOf6 �1900Y 70A1K 850% 7200% t0.6ex 900�% x ;,m s�`� � li =%� �, � ! ,.
10�2Wi 8.00%: 13.00N. tO.N% 8.50% 12.00% /0.58% ' 3s ;� �' y" � rt`�. . '
� 900% . X L. .� R iK P fi � ..' *� '.
095001 8.0016 �19.0096 16b1A6 BSOf6 12.00% 1062% �,�.. 3 . t,. 3, 4 t¢ i.
1��ZOUP 6.50%�.:13.0076 10.77% 9A0% 11.00% i�.Bt',6 � B� @ 5 y" 3' � �
Q32002 7.00%�..13A0% 10.81% 9D0% 13m% /087% :�. i0�°b �� �' �£� p ��- s f,` � + j�` `?
01:ZOU3 B.OU96: iS00% t0.B4% 90D% 19L0% 10.87% .. e�% =' % ;� k ,;rv N�'° Wr -
�320�3 8.00%��� i3.OD% 10A0% 9.00% t9A0% 1079% �= j..' ��:Y �. ,� �. Y"
�'I'2001 T.W%'.: iy,pq: .7028% BAO%:-:73:00% 70.53% ���. 5.00%
O330W 7.5�l6'12�96 8.88% 8.00% 11:5074 1025% �. g $ yar g�5 :
�1Z005 B.W'b.12.00% B.{79fi 7b0% 7150% 8)8% $ �:� � �� ^ � : "' � ^' � g .� N � •
oazoos e.00w ��.00vc s.usi 8.60% n.00x ewx r°, 8 8 8 d 8 8 S fi & 8' 6 ^o !
� '�Qt1008 8:60%`� 10.5096 8:88% 6S0% :�AY.00% 826% ��
Q3.2006 BAO%��:�1�5076 B�:B7% B.DOA itAO% 9.t3% �AVereqe(#gh�pPme .� LvnGOFphbpfmle � � HyiQdnphCepi�te �
at�.2007 8AD%���'70b0% 87I% 800% 11.p0% 808% rqvarapBTant�almp:Rete� �+++= tar�TemiWdpible Term� '�
�M1 CePPoRe
�032007 800%�. 1050% 8.30% 800% 11D0% BB8% � E:'
�-07R008 BAO%°10.50% 8:39% B.tlO%`.11D076 90B%
�032008 6A0%'-� 10.50% 8:5U% 7.50% 11D076 824% �
.��qt2009 8A0%�a110076 �B:87% 7.50%'-72�.00% 858% �
���32008 830%:��.7400% 9:8J% 7.56% 72A0'b 7022K �
� Soum:PriewqfuheurCeopwMfery�cslMI6bMMwtorSurvey;COmpIIMEy0uII6�YhNp;LLC
� �.� 'Vale.'.Deb uWMetlatlYmcee�vYIXMi4uarte.' � ��:
�
�l
�'
Page 14 i;
f��
17 i
� t�
�:CepihBzatlon Ratc Survey: NaBonal:Hotel AAarket-:Limited 8ervfce
P'�rmd -0AR7GOintlht�.:.�� i�rmbu/ � .. . ... �:�..
LoW:� H� Avfi Cow . �AkM AvC �� 1800% � .. .. ... �..:.,....... . ,.,+ ..__ ,.u.< . .x'. _.. '� ,`�
"901BB7 �-0D.00% 13A0% 1Y70% 10A0%:14:00% 1200%�..�� 1500%
101898 BAO'h 1400% 111!% 8U0% 73-OD% 108296 `� ' T� ;
�37888 10t1016 1200% i131% tODO% 12�-.50% 1tb8% � 1600% ��R �
1�i8B9 10.00% /2A0% 1134% tOSO% 1260% 1/.72% � 1300% �.
�37998 10.00% 190096 t1.38% tOSO% 73.60% N89% i2pp% � �� '- ����
'i- . � i' f� K I tM. � *d„ �:
�pz000 to.00w u.00qc �i.sew iosow �a�.00% i�.sess ..�. >>nox �, ;: `` � �' a� . � '� � �.
aazoao ,o:oow ,a.oas 11.50% nosox �s.oaw �zss% " "`' n
.� io.00w ;.'
�10 2D01 10.00% 73.00% 71-.80% 70.W% 15,00% 12.28% � �� :�,; � d, �- „C,� M1 „
��32001 10.001fi tY00% 11:75'b 7050% 75.00% t228°,b � 90096 .� � 1,M y � �.: �
.�72002 10.00% 74.00% 72:OOYo 1➢SO% 15:00% 7228Yo � 8.0016 �; �'° q, �` .'^ � �� � ``,+ � `
�032W2 700D% 74.00% 72.0016 f0.5076 15:00% 12.0855 �. qppy5 .� p� ���a h k��� q w `� °' �. C��.
��➢14003 1000% 11.00% 12D8% iD.5Mb 75:00% 7213°b BAO% � ' ' k T � . � � � � �
�
A$2003 17.00X 14.0096 1225% 11.00% iS.W% 1228% � (�' a = �, k� �, py, ""' � w. � ' � "' � �..
'-0130M H:00% 1400% 12.13% 11.00% iS:W% 12A2'% �. 5.00% µ.. Q Q �g.n ypyu Q .s �pp� g �+ p5�
:0320D4 10:00% 110U% 12�.OIYa 1000% 15�.00% 12259L m�$ �� $�..ry � g�, 7,'i���F � R Fi xi ��i cl � Ki g�..� �Ti � Fi . (�..
:412005 9.50% UI.00% ti.87% 70A0% �15100% 11.98% ���
oszoos ososi ��.00x �r:nw no.aow is:ooss ii.essc l �'-° �° o°`8 � B o 8 0 8 o S or$ 0 8 0 8'0 8'0 8
��:'p12008 � �.�.BSO% 1{.00% :t0.tet6 700% :.15:00% 10bB%�� �
�..:�32008 BSO% 14.00% 8.83% 7D0% �.14:00% 1021'b�:�.: �AVxaO�GOYNhC�Ftle�� -�� �I:aw�.GdnpY�CaP�e .�� � i'khOOeIBn�V�e��.�.
Dpi2007 -'.18:50% 1LOp%=9.8716 7.00%.:74100% 1919!65 sxAVVpaTemYmiCapReie =� LoxTemmelGp(ble ��.. � FigFTem�al(ApP9b�.
���'-032007 850% 74.00% 9.58% 700% ��14.a0% t0.D1'b�'� �
`�.tl12000 ���BSO% 1{DO%:�:BSB% 700% .14:00% tO101'b -�
����32008 8�.50% 14.00% 8b3% 700%�:14100% 1028%��� �'���
�.:a12009 9.00% 1400%�90.75'b 900%'46'.00°6 1735%.�. . .�:.
��92008 8:00% 1/0076 t0:85% 9.00% �4:00% 1125% - �� +
�SOUm:PHnwlWhwutlCeqwMlnAH�'sRrlbfeKMwtorSun+Y.�omP/1M6YOUfldPMIPiLLC .��. i.�:
.NOk'OeleuptlNeCaN dke �Uliei wrter '�.
C.
In summary, over the data collection period of January 1, 2005 to 7une`30, 2006,;going-in hotel �
capitalization rates decreased as noted in the following chart:
�
Hotel Type Beginniug of Coilection Period-1° End of CoRection Period, 1"
uarter 2005 Ca italization Rates; uarter 2006 Ca italization Rates
LuxuY $.70% 832% i
Full- ' 9.47% ' ' 8.%8% j
Service a
i
Limited- ' `11.67% 10.46%' ';`'
Service �:
i
The Limelight Lodge is a limited-service>hotel in a resort location. ConsequenUy, we examined �
sales, RevPAR growth rates and oapitalization rates from other resort desrination hotels.'' The
`sales are summarized below:
�
c�a-A �-�. co��-� �:
YoCh��e. G�pifaYhav Cryi4tirafioe` ���y:�:
-�Sde Ys�r ':No.of fiomAior. RMeHeBm:'. RtleAEer��. .�.�..
'. �-No. SYeDee Prope�ryN�me Cfry,Sbte'. Bmlt �� �Reo�m ADR rOccu � AevPAR YmRevPAR Re�ervn-: Reesrvee :�
:
��� 1 NJ2005VeiMemm�MamianReearl&.S �� Va CO .� IF832W2 .316 521376: 6540% t166.64 I7:20l6 ��:9�.60Y B:I09G �`.�
�. 2 �..1l1/LW63m7¢�IWer'.G� � L•S -: TetmV �.WY ]995lA002-��iBB E376.04'..5910%��E1852 .;I2i -:309094 � �..8.60°/a �:j':�.
i
The properties had strong RevPAR growth yet indicate a capitaliza6on rate in the range of 8'1 % ?'
Yo 8.6% after reserves. Based upon its year of consttucfion and location, a capitalization rate of ;y_
$.25% was'selected for the Limelight for taac yeaz 2008. This rate is approximately 160 basis :
points below that indicated by the Korpacz survey for limitedservice hotels. The following'
pages summarize the sales used in selecting the capitalization;rate. �'
i
ir
�
Page 15 1
,
u
1$ l
;
Page 16
�
_ . __ _ . _ _ __ _ _ ._ _ _
Price
�
c��."�
II]COITC 3{tCi ICSe[VES (% oiTOY3�
;IIIIE�:
Income Per Room befnre reservas:
rtalization Rate before reserns:
rtaGmtion Rate affer reserns:
CPI-I.CP
,1,,�!
�
1999
acres
$2,670,000
SEC 10-K, Cl�nt file
This a a 88-room htt�sy hotel wrth an average room sra
of 310 square �et In additbn, theie are 45-on srte
condommuan �As and 7-off-srte condo�iian imBs.
Ttere is 4;205 square feet ofineeting space. There is a
17,000 sqwre foot spa wifh 10 treatrneirt rooms. In
2002, a$11 nrimon rernvation occwred: Tt� propetty
had devebpmecrt rigMs to wnchvct 5 addBiorn�l guesi
rooms. The de�t,lopment rights had a vah� of$1.5
m�lan wliich we have de�ted from die sale price. 'Ihe
co�locmnuans had an average sia of appromnately
1.000 sa�are feet each
Page 17
�60
CONCLUSIOiV
On January 1, 200$, the property was 35% complete. Therefore, the land is assessed at 100%
and the improvements are assessed at 35%. The calculation to account for the consiruction in
progress at the properiy is as follows:
Our 2008 value opinion for t� purposes is as follows:
Aceoant
Number
ual I.and I Actuai lmpro
Value Value
_ _ ____ _
Valne
Value
Page 18
`6�
_ _
� �►'�(/�' _ _.__ .....,_ ____..
i�s
NOTICE OF DETERMINATlON
ON PETITIt7►N FOR ABATEMENT OR REFUND OF TAXES
BDARD OF CCIUNTY COMMISSIONERS
PITKIN COUNTY, COLORADO
Date: December 13, 2010
Petitioner: New Limeiight, LLC Schedule No. R02Q21$
355 South Manarch Street
Aspen, Colarado 81611
Dear Petitianer{s).
Pursuant to CRS 39-10-114, you have requested that the Board of County Commiss+oners (BOCC)
consider your petifion for abatement or refund of taxes
• At a meeting held on December 8, 2010, it was the decision of the BOCC to :
� Approve abatement as requested
� Approve a partiai abatement (as recommended by the Assessory
RE: 2009: Approve valuation af $39,000,00O.00/Taxes abateirefund of $85,613.98
RE: 20Q8: Approve an Adjusted Value af $26,650,d00.00lTaxes abatelrefand of �4,072.50}
� Deny the petition for abatement (beyond tfie Assessor's recomme�dation) for both 2008 a�d
20Q9
Furthe� appeal procedure: tf the Board of County Commissioners (CRS 39-10-114(1 }) or the
state property tax administrator (CRS 39-2-116) denies the petition for refund or abatement of taxes in
whole or in parf, the petitioner may appeal to the Board of Assessment Appeals (1313 Sherman St, Room
315, Denver, CO 84203, 303-86fi-5880) pursuant to the provisions of CRS 39-2-'125 (b) and {c) within 30
days from date of the BOCC decision. For further information regarding the Board of Assessment
Appeals you can visit their website @http://www.dala.colorado.gav/baa.
• Refund, if applicabie: If an abatement petiEian was approved in full or in part, the assessar will adjust
his records accordingly and the treasurer witl process a refund if the taxes were previously paid.
glbocclboelabatementd en i alnotice2Q 10.doc