Property assessment for self-storage facility reduced to $8,645,000 after resolving reproduction cost and equity adjustments.
The appellant appealed the 2021 and 2022 property assessments for a purpose-built self-storage facility in Kitchener.
The parties agreed to use the cost approach but disputed the reproduction cost new (RCN), land value, and equity adjustments.
The Assessment Review Board accepted the RCN of $8,373,495 proposed by MPAC and the appellant, rejecting the municipality's higher calculation due to problematic discretionary inputs.
The Board found no evidence for physical depreciation but applied an 11.37% reduction for external obsolescence/equity, added yardwork, and determined the land value based on comparable sales.
After applying a 5% equity adjustment, the Board reduced the total assessment from $8,766,000 to $8,645,000.
