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This page contains a single entry from the blog posted on September 26, 2009 1:58 AM. The previous post in this blog was Have a great weekend. The next post in this blog is Ime's back. Many more can be found on the main index page or by looking through the archives.

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Saturday, September 26, 2009

Beaverton playing hardball for Paulson

It looks as though the City of Beaverton is trying to get the land for the proposed new Paulson minor league baseball stadium on the extreme cheap. The city's latest salvo in its "discussion" with the reluctant owners of the prime site for the stadium project (the Biggi family) has been to dump a low-ball appraisal on them. According to the city's "draft" appraisal, the property is worth only $8 million, whereas it is listed in the Washington County tax records as having a real market value of $11.4 million.

It is hard to imagine the Biggis allowing themselves to be rolled on any deal for that land. The city has said it doesn't plan to condemn it, but unless it puts a lot more money on the table, that's probably going to be the only way it's going to get it.

The City of Portland got into this kind of back and forth four years ago when it was trying to secure the land in the disastrous SoWhat district for the poodle poop park there. But the owners of the large block in question -- the folks who run Public Storage -- hung in there under threat of condemnation and wound up getting $7 million for 2.1 acres. And that was $2.4 million more than the real market value on the county property tax rolls. The Portland Development Commission, then headed by the same fellow who just now is taking over a similar agency in Beaverton, had grossly underestimated the land acquisition cost for the SoWhat park.

I also dimly recall that if an Oregon municipality low-balls a condemnation offer and is proven wrong in court, it gets to pay not only the higher price, but also the property owner's attorneys' fees in the litigation. Certainly that was how it went when Portland condemned the old Paramount Theater for the Schnitzer Concert Hall many moons ago. If that's still the rule and Beaverton goes to the mat with a low-ball appraisal, this whole shebang could get expensive indeed.

Comments (14)

I truly believe this will all come into greater focus when Michael Moore's film, "Capitalism: A Love Story", opens October 2nd.
I'm thinking of leaving a cash envelope at city hall - not for Beau Breedlove like Mayor Adams said he did just prior to the scandal breaking. No, this cash envelope would include enough money to send our city council to a matinee showing of this movie.
Let them see for themselves who they've got us involved with here with the Paulson family.
Let them see what Wall Street has done to America.
It's all there. The American Airlines pilot on food stamps because his pension was cut.
The role Goldman Sachs and its former head Henry Paulson played in hurting millions of people.
The outrageous fleecing scam known as TARP that the minority owner of the Portland Timbers rammed through Congress, just as his son rammed the PGE Park deal through using his willing servants like Randy on the council.
Ask yourself why the taxpayers are subsidizing the hourly wages of PGE Park workers, as a family with hundreds of millions of dollars squeezes every last cent it can out of every last deal they make?
I will not buy the city council popcorn, but they should be able to handle that. After all, they've turned city hall into one big concession stand for the wealthy even as Portland's streets continue to fill up with casualties of the greatest financial scam in world history.
October 2nd is a chance for everyone to see just how slick Mayor Sammy, Randy, and the gang really are.
Enjoy the movie.

Beaverton appraised the value at about 30% below the assessor's "real market value." There is some positive probability that the Biggis might be able to take that appraisal and get a lower property tax assessment. Wouldn't that be precious ...

In other minutiae, Oregon county assessors' "real market value" has nothing to do with the reality of real market value, even though state law says it must.

Also, from what I understand, the county assessor's "real market value" cannot be used to value property for condemnation purposes. The valuation must come from an appraiser.

Lets give the Schnitzels their Tax Deductible Donation back and re-name the theater the Portland Paramount.

Oh, and remember the "other" Schnitzer donation ... at SoWa. Even though the property is property tax exempt, OHSU promised to pay a fee in lieu of property taxes. I continue to wonder whether they ever made good on that promise ...

Here's the thing. The RMV (real market value) of the Biggi land is likely higher than the assessed value. There is a certain ballot measure responsible for that.

See here:

http://www.oregon.gov/DOR/PTD/IC_303_670.shtml

Excerpt:
****************************************
Your Asssessment

Property is taxed on its assessed value. A property's assessed value is the lower of its real market value or its maximum assessed value. Each year, the county assessor determines the property's real market value and calculates its maximum assessed value. You are taxed on the lesser of the two, which is called the assessed value. Real market value and maximum assessed value are defined below.

Real market value (RMV)

Oregon law says the assessor must value all property at 100 percent of its real market value. Real market value (RMV) is typically the price your property would sell for in a transaction between a willing buyer and a willing seller on January 1, the assessment date for the tax year. To estimate the initial RMV for your property, your county assessor appraises your property using a physical inspection and a comparison of market data from similar properties. For ensuing tax years, your county assessor may study trends of similar properties to update the RMV for your property. Some may be subject to special valuation property, such as farm or forest property, processes.

Maximum assessed value (MAV)

A property’s maximum assessed value (MAV) is the taxable value limit established for each property. The first MAV for each property was set in the 1997-98 tax year. For that year, the MAV was the property’s 1995-96 RMV minus 10 percent. For example, if a residential property had a RMV of $100,000 for the 1995-96 tax year, its 1997-98 MAV would have been $90,000. MAV can increase for only two reasons: a 3 percent annual increase or specific property events.

**********************************

The low ball bid nonsense makes me wonder if Beaverton has some insance inverse condemnation scheme up its sleve. But that's just a wild guess.

It's hard to believe that Doyle is stupid enough to keep going down this path. They should put this massive expenditure on the ballot. Let the voters decide if they want to be taxed into oblivion so a stadium can be built for a second rate sporting event. If they go behind the voters on this, and it just becomes another extra they sneak onto everyone's power bill, gas bill and property tax bill it should be a field day in the next election cycle for anyone who opposes Mayor Doyle and any City Council member who votes to spend tax dollars on this atrocity. Citizen's of Beaverton, do you know what their doing to you?


Condemnation disputes take time, and lots of hearings and meetings. To go down this road, wouldn't that blow Paulson's alleged deadline on the whole thing?
Also, have you driven Cedar Hills Blvd at any time of the weekend OR weekday rush hour? Something tells me there is a traffic study to be done - and not by anyone remotely connected to Paulson.
Sure it's on light rail, but how do you get 8,000 fans to take light rail to a game? (or even come at all?)

Dear Mr. Doyle,

You're an idiot. Yes it's true. And you're oblivious to the track record around here and what's good for the taxpaying public.
Your fantasy follows a lengthy pattern of absurity around here that also calls for extending WES to Salem even in the face of total failure as a transportation public investment.
Any rhetoric you churn out will sound no better than any of the foul suggestions which preceeded and continue to usher along prior boondogggles. Such as the whopper of public misappropriations called the Round at Beaverton.

I could go on and on and on about your particular approach to municipal governance which wee've been witness for decades. For now I'll leave it at repulsive.

And then there is the real insanity... there is an existing 7,000 seat, multi-purpose stadium in the metro area....

http://www.ci.hillsboro.or.us/Parksrec/ParksFacilities/SportsFacilities.aspx

that could be upgraded fairly inexpensively to accommodate minor league ball and with immediate access to Hwy 26, meaning no traffic snafus. But this makes way too obvious a choice and would not involve major scamming. And the city of Hillsboro could retain ownership and get some decent income off of the ball games.

LucsAdvo has it right. It's not so much about a place to play ball, but more about LLP getting the construction contract to build a stadium and all the income and kickbacks from taxpayers for years and years. If it was only about a place to play, PGE park is perfectly suitable and it is documented that MLS does not require a single sport venue.

Don't forget that Beaverton squandered quite a bit of their taxpayers' money trying to keep their NIKE annexation plans secret. The city got slapped down pretty hard by Judge Nachtigal for basically defending the indefensible. I throw that out there just to show that Beaverton can't be trusted not to take a loser position to court.

Something tells me there is a traffic study to be done - and not by anyone remotely connected to Paulson. Sure it's on light rail, but how do you get 8,000 fans to take light rail to a game?

Perhaps they might use the actual attendance numbers to address the traffic study, and still use the phony baloney numbers to justify the public expenditures.

This deal is gonna happen. Count on it. Beaverton leaders want it so bad, they can taste it. As a Portland resident, I am cheering them on. I don't see a downside for Portland. We unload the Beavers, we can still attend the games, we free up the ballpark for some other use - hopefully major league baseball, rather than soccer. Am I missing something??

"Something tells me there is a traffic study to be done"

Why? TV Hwy/Cedar Hills Blvd is jammed most of the time and now we throw a stadium that will be light out most of the time EXCEPT during a few rush hours already.

They screwed up The ROund so lets compund it with a baseball stadium.

Is have a double-digit IQ a requirement for being a politician any more?


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