CTS Investments, LLC v. Garfield County Board of Equalization
2013 COA 30
Colo. Ct. App.2013Background
- CTS Investments, LLC owns two vacant land parcels in Castle Valley Ranch, Garfield County (10.766 and 61.26 acres).
- For 2011, BOE valued parcels at about $807,800 ($28,500/acre) and $1,836,480 ($30,000/acre) respectively.
- CTS sought a value around $2,200 per acre, basing its petition largely on a 2010 CVR sale adjoining CTS property.
- GMAC ResCap sold ~120 acres and 18 townhome lots to CVR Investors for $700,000, after previously acquiring the property via foreclosure on a $15 million loan to Village Homes.
- GMAC ResCap faced substantial government support and pressure, and the county assessor excluded the CVR sale as non-arm's-length.
- BAA denied CTS's petition, agreeing with the assessor that the CVR sale was not arm's-length and that four pre-base-period sales supported $30,000/acre.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Admissibility of hearsay in BAA proceedings | CTS argues the BAA erred admitting hearsay articles about GMAC/ResCap finances. | BOE contends hearsay is admissible if probative and reliable in administrative hearings; CTS failed to object timely to some items. | Admissible; BAA properly considered probative, reliable written materials. |
| Whether CVR sale qualifies as arm's-length for use as a comparable | CTS argues CVR sale is arm's-length and should reflect true value. | BOE concluded CVR sale was not arm's-length due to duress-like pressures and not representative of value. | BAA's determination that CVR sale was not arm's-length was supported by the record. |
| Standard and scope of judicial review of BAA findings | CTS asserts de novo review and a broader evaluation of comparability and weight. | Court should defer to BAA on factual findings if supported by competent evidence. | Review deferential; BAA findings upheld if supported by competent evidence. |
| Adequacy of BAA’s record and reasoning for arm's-length finding | CTS contends lack of express rationale for disqualifying CVR sale. | Credibility and weight for duress evidence lie with BAA; findings may be explicit or implied. | Implied findings sufficient; BAA's ruling supported by record. |
| Competent evidence supporting the BOE valuation | CTS argues the BOE valuation lacks competent record support. | Assessor's four comparable sales and exclusion of CVR sale were proper under statutory framework. | BAA's $30,000/acre valuation supported by competent evidence and statutory framework. |
Key Cases Cited
- Partridge v. State, 895 P.2d 1183 (Colo.App.1995) (administrative hearings may admit non-strict evidence)
- 117th Assocs. v. Jefferson Cnty. Bd. of Equalization, 811 P.2d 461 (Colo.App.1991) (competent evidence standard in appeals)
- JW Constr. Co. v. Elliott, 253 P.3d 1265 (Colo.App.2011) (preservation of objections required)
- Cantina Grill, JV v. City & Cnty. of Denver Bd. of Equalization, 2012 COA 154 (Colo.App.2012) (burden on taxpayer to show assessor's valuation incorrect)
- E.E. Sonnenberg & Sons, Inc., 797 P.2d 27 (Colo.App.1991) (competent evidence standard; arm's-length principles)
- Burns v. Bd. of Assessment Appeals, 820 P.2d 1175 (Colo.App.1991) (competent evidence and deference to BAA findings)
- C.P. & Son, Inc. v. Board of County Commissioners, 953 P.2d 1303 (Colo.App.1998) (abnormal pressures can render a sale non-arm's-length; use of ARL guidance)
- Strongsville Bd. of Education v. Cuyahoga County Bd. of Revision, 859 N.E.2d 540 (Ohio Sup. Ct.2007) (arm's-length requires voluntary market transaction; factors include duress)
- Columbus City Sch. Dist. Bd. of Educ. v. Franklin Cnty. Bd. of Revision, 2012-Ohio-5680 (Ohio Sup. Ct.2012) (duress considerations in sale affecting arm's-length analysis)
- Craddock v. El Paso Cnty. Bd. of Equalization, 850 P.2d 702 (Colo.App.1993) (valuation methodologies and three approaches; base periods)
- Leavell-Rio Grande Cent. Assocs. v. Bd. of Assessment Appeals, 753 P.2d 797 (Colo.App.1988) (weight of evidence; BAA findings reviewed for support)
- Steamboat Ski & Resort Corp. v. Routt Cnty. Bd. of Equalization, 23 P.3d 1258 (Colo.App.2001) (question of comparability of sale constitutes factual decision)
- Golden Gate Dev. Co. v. Gilpin Cnty. Bd. of Equalization, 856 P.2d 72 (Colo.App.1993) (competent evidence standard; valuation decisions defer to BAA)
- Huddleston v. Grand Cnty. Bd. of Equalization, 913 P.2d 15 (Colo.App.1996) (ARL guidance; assessors bound by ARL; arm's-length concepts)