06-08-04 Item 2dJun -04 -2004 12:55 From -WPA 305- 375 -3024 T -189 P.001 /002 F -813
MIAMI -DADE COUNTY, FLORIDA ® ® ®®
MIAMI -DADE AM
STEPHEN P. CLARK CENTER
DEPARTMENT OF PROPERTY APPRAISAL
ADMINISTRATIVE DIVISION
SUITE 710
111 NW 1ST STREET
MIAMI FLORIDA 33128 -1984
(305) 375 -4004
FAX (305) 375 -3024
www.00,rniarn1-dadeJI.u9/pa
June 4t6, 2004
Maria Davis
City Manager
City of South Miami
6130 Sunset Drive
South Miami, Fl. 33143
Re: Shops of Sunset and Valencia Place Apartments
Dear Ms. Davis:
It was a pleasure to speak with you yesterday. Pursuant to your request for a
written status report on the referenced properties, I will briefly describe recent activities
associated with each of the properties beginning with the Shops of Sunset.
As I indicated to you during our telephone conversation, the Department of
Property Appraisal typically considers three approaches to value, Cost, Sales
Comparison and Income. The three approaches contemplate the considerations of
market participants when selling or acquiring a property such as the Shops of Sunset.
Clearly, the overwhelming consideration in valuing a shopping center is its ability to
produce revenue to a typical owner. This department has baen in discussions with the
taxpayer (The Simon Group) regarding their 2003 assessment appeal before the
Valuation Adjustment Board for a number of months. Over that period of time this
department had asked for and received volumes of confidential financial information
{F.S. 195.027(3)1 related to the annual sales levels of the center and individual tenants,
recent lease terminations/ agreements, rent relief programs, etc_ After a thorough
analysis of the data, this department determined that a settlement of the 2003 appeal at
a value of $93,000,000 was in the best interest of all taxing jurisdictions.
The 2004 tax roll is currently being prepared for submission to the Florida
Department of Revenue before July 1s`. Consequently, the :2004 preliminary value for
Shops of Sunset has not yet been finalized, however, it will be at a considerably lower
level than the 2003 preliminary value.
I VE
CITY MANAGE, OFFICE
Jun -04 -2004 12:55 From -MDCPA
305 -3T5 -3024 T -189 P- 002/002 F -813
This department inspected the Valencia Place Apartments project as of the
assessment date of January 1"', 2004. The purpose of the inspection was to gather
information necessary to make a determination as to whether the building or some self -
sufficient unit within it was "Substantially Complete" pursuant to (F.S. 192.042(1)). The
decision regarding substantial completion of the Valencia Place Apartments project for
the 2004 tax roll has not yet been finalized. However, the inspection data and Certificate
of Occupancy information suggest that the building or some, self- sufficient unit within it
may not be "Substantially Complete" for its intended purpose as of January T", 2004.
The courts have ruled over the years that "self-sufficient unit' may mean different
things depending on the intended purpose of the structure. For example, in the case of
office buildings where the intended purpose is to lease unfinished space to tenants, the
"shell" of the structure may be substantially complete and taxable without the interiors.
On the other hand, apartments are typically leased in move: -in condition, requiring the
substantial completion of interiors before the structure can be placed on the tax roll.
Obviously, every case is a bit different and must be evaluated on the basis of its own
unique set of facts.
It is my hope that the preceding information is helpful to you_ If I may be of further
assistance, you may call me at (305) 375 -1211.
Yours
Fr nk E. Jacobs, ASA, CFE,
ssist�P rope rty Appraiser
cc. Joel Robbins