Assessment Review Board
Commission de révision de l’évaluation foncière
ISSUE DATE: August 10, 2015
Assessed Person(s): 703787 Ontario Ltd.
Appellant(s): 703787 Ontario Ltd. and Dino Sardelis
Respondent(s): Municipal Property Assessment Corporation (“MPAC”) Region 16
Respondent(s): City of Barrie
Property Location(s): 150 Collier Street
Municipality(ies): City of Barrie
Roll Number(s): 4342-022-002-05800-0000
Appeal Number(s): 3000070 (reinstated appeal 3095039) and 3095040 (deemed 2015)
Taxation Year(s): 2014 (and 2015 deemed)
Hearing Event No. 578232
Legislative Authority: Section 40 of the Assessment Act, R.S.O. 1990, c. A.31, as amended
Heard: February 19, 2015 in Barrie, Ontario
APPEARANCES:
| Parties | Counsel+/Representative |
|---|---|
| 703787 Ontario Ltd. and D. Sardelis | P. Deschenes |
| MPAC | B. Kee |
| City of Barrie | No one appeared |
DECISION OF THE BOARD DELIVERED BY LESLIE FLEMMING
INTRODUCTION
1This appeal was heard by the Assessment Review Board (“Board”) in Barrie on February 19, 2015. Following the conclusion of evidence and argument, the Board reserved its decision
2The subject property consists of a single-storey commercial building of 3,200 square feet (“sq. ft.”) situated on a corner site with an area of approximately 12,378 sq. ft. with a frontage on Collier Street and access to Berczy Street. The building is currently rented to Canada Post for use as a post office. Built in 1987, the structure has also been used in the past as a convenience store. It has nine available parking spaces on site. There is no dispute about the property class. The Appellant appeals the 2014 assessment.
3The assessment for 2012 was returned in the amount of $848,000. Following an inspection by MPAC and a costing review, MPAC revised its cost-based assessment to $830,000. MPAC argues that comparing this property with the sales of similar commercial properties, specifically comparing the residual land values of the comparable properties, supports the assessment of $830,000.
4The Appellant argues that the correct approach to valuation in cases of small commercial properties located on minor collector roadways is to use the income approach to value. Calculating that the net operating income for the property based on market rent of $15.00 per square foot (“psf.”) and using a capitalization rate of 8.0%, the Appellant argues that the value of the property is $546,000 or $171 psf. Further, the Appellant argues that having reference to the values that similar lands are assessed the assessment of the subject property should be reduced to $530,000 or $166 psf.
ISSUE
5The Board must first determine the current value of the subject property as of the valuation day, January 1, 2012.
6Having determined the current value, the Board is required to have reference to the value at which similar lands in the vicinity are assessed and adjust the assessment of the land to make it equitable with that of similar lands in the vicinity if such an adjustment would result in a reduction of the assessment of the land.
DECISION
7The Board determines that