1. © 2010 PULLMAN & COMLEY, LLC Important Property Valuation Legal Developments: 2009-2010 University of Connecticut Commercial Real Estate Conference Farmington November 9, 2010

2. © 2010 PULLMAN & COMLEY, LLC I.Assessment of Construction in Progress (CIP) Doubted A bit of history Building under construction October 1 assessment date - partially complete Interim final assessment of completed (c/o issued) construction

3. © 2010 PULLMAN & COMLEY, LLC CIP – continued Doubt raised as to CIP assessment Case settled without appellate input Issue remains in doubt Evans v. Town of Guilford, Superior Court, Judicial District of New Haven (December 29, 2009)

4. © 2010 PULLMAN & COMLEY, LLC II.Interim Revaluation Permitted (rarely) Interim reval -- usually prohibited – the rationale Exceptions Complete demolition or total reconstruction Market value is not synonymous with "value in a foreclosure sale." Effort to impose foreclosure sale value on tax appeal rejected Sidi v. City of New Haven, Judicial District of New Haven (December 8, 2009)

5. © 2010 PULLMAN & COMLEY, LLC III. Leased Fee v. Fee Simple Fee simple – the unencumbered interest Leased fee – the encumbered interest Distinction between the two Stop & Shop lease 1989-2015 Contract rent vs. market rent Both must be considered

6. © 2010 PULLMAN & COMLEY, LLC Leased Fee v. Fee Simple - continued $20/s.f. = current contract rent; $23/s.f. = market rent; (no percentage rent being paid) Court - $20 s.f. Stop & Shop Supermarket Co. v. City of Danbury, Superior Court, Judicial District of New Britain (August 17, 2010)

7. © 2010 PULLMAN & COMLEY, LLC IV. Go to the Board of Assessment Appeals first ! Connecticut tax appeal procedure provides specific remedies Appeal from a decision of the Board of Assessment Appeals vs. direct appeal to court Board of Assessment Appeals challenge must be filed within two months from the date of mailing of notice

8. © 2010 PULLMAN & COMLEY, LLC Go to the Board of Assessment Appeals first! – continued Direct appeal to be filed within one year from assessment date Mere overvaluation vs. "manifestly excessive" standard Did assessor carry out statutory duties? Or is dispute only a difference of opinion about value? Claim of value reduction resulting from fire loss Reval company unable to gain access to interior Owner out of luck Genovese v. City of New Britain, Superior Court, Judicial District of New Britain (October 30, 2009)

9. © 2010 PULLMAN & COMLEY, LLC V. How Not to Challenge Your Assessment Sue the mayor, tax collector and assessor in their individual capacities? Availability of statutory tax appeal Selectiv reductions of cronies' property alleged "Theere is no private right of action for taxpayers against municipal officials in their individual capacities for alleged wrongdoing in the tax assessment of properties not owned or leased by them." Massey v. Town of Branford, Appellate Court (February 23, 2010)

10. © 2010 PULLMAN & COMLEY, LLC Elliott B. Pollack, Esq. Pullman & Comley, LLC 90 State House Square Hartford, Connecticut 06103 (860) 424-4340 ebpollack@pullcom.com Bridgeport Hartford Stamford White Plains www.pullcom.com