Memorandum

emorandum

To:            Mike Wildgen, City Manager

From:        David Corliss, Assistant City Manager

Date:         January 8, 2004

Re:              Orchards Golf Course – Assessments on Condominium Property  / Title Issues on Property

Tract 55 of the proposed special assessment benefit district for the stormwater and conservation easement project at the Orchards Golf Course is the West Meadows Condominiums.  The Orchards neighborhood group is requesting that the assessments on this tract not reflect the full fair market value of the condominiums, but only reflect the land/common area value of this property.  While we are still researching the issue, it appears that this is not possible – each individual condominium unit has a separate and distinct property value.  There is no separate value for West Meadows Condominium Association – the entity does not receive a separate property tax bill and would not receive a separate special assessment bill.  This is in keeping with the requirements of State law governing condominiums (K.S.A. 58-3122, see copy below).

58-3122. Separate taxation. Each apartment and its percentage of undivided interest in the common areas and facilities shall be deemed to be a parcel and shall be subject to separate assessment and taxation by each assessing unit and special district for all types of taxes authorized by law including but not limited to special ad valorem levies and special assessments. Neither the building, the property nor any of the common areas and facilities shall be deemed to be a parcel.

I have spoken with August Detbarn in the Appraiser’s Office concerning this issue, and he confirms this understanding.  He is not aware of a method for the City to use to avoid spreading the special assessments on each of the condominium units and placing the assessments on the Association itself.   We have planned a meeting with August, Jack Scales from the Orchards area, and myself for Friday morning to discuss further.

It is also appropriate to note that there are significant, but perhaps not insurmountable, title issues (foreclosure action, liens, etc.)  currently impacting the Orchards Golf course.    The various financial interests claiming at interest in the property would need to be satisfied prior to execution of the conservation easement.