Ada County assesses Arthur Apartments construction costs before completion

The Board of Ada County Equalization Hearings on July 2, 2025, focused on the assessment of a new luxury apartment complex, the Arthur Apartments, located in downtown Boise. The meeting addressed a dispute regarding the property's assessed value due to incomplete construction at the time of assessment.

Jeremy Malone, representing the property owner, discussed the ongoing construction of the apartment complex, which lacked a certificate of occupancy as of the assessment date. He noted that the construction costs used by the assessor's office were higher than the actual costs incurred. Malone indicated that an agreement had been reached for a minor reduction in the assessed value, acknowledging the discrepancy in construction costs.

Ron DeRost, a commercial appraiser from the Ada County assessor's office, provided details on the assessment process. He explained that the property was valued using the cost approach, estimating the construction cost at approximately $125 million, based on building permits and industry guidelines. DeRost conservatively assessed the building as 90% complete, resulting in an improvement value of about $112.8 million. However, after receiving documentation from Malone's office, he confirmed that the actual construction cost was lower, at around $107.1 million. DeRost offered to adjust the improvement value to reflect this lower cost.

The discussions highlighted the complexities of property assessments for new constructions and the importance of accurate cost reporting. The board allowed additional time for further evaluation of the assessment process, particularly regarding the inclusion of properties on the new construction roll before completion. The outcome of this meeting may influence future assessments and appeals related to similar properties in Ada County.