The appraisal district recognized the double assessment and placed an overall reduction of value on the mixed use property parcels totaling $32,112,606.
The Appraisal District double assessed the parking garages associated with a mixed-use development. The Appraisal District valued most of the parcels included in the development using an income approach. However, the appraisal district valued the parking garages using the cost approach.
The income approach assumes that sufficient parking is available and is included in the overall outcome of a properly conducted income proforma. The failure to deduct the necessary cost of the parking spaces needed from the income approach resulted in a double taxation of the parking garages.
A parking ratio study was conducted to determine the parking spaces needed for each tenant based on size and use and extrapolated from the income valuation. The appraisal district agreed that their original appraisal methodology resulted in an inflated valuation of the project and agreed to value the property as recommended by Wilson & Franco.