Summary
Taxpayer rep presented a going‑concern valuation for a continuing care retirement community and the county defended using a cost approach; parties debated intangible business asset deductions and unit counts.
A representative for Linden Woods Village, a continuing care retirement community (CCRC) in Gladstone, disputed Clay County's decision to raise the property's assessed value and urged the board to use a going‑concern income methodology adjusted to real‑estate value.
The taxpayer's representative said he derived a going‑concern value from 2024 financials and industry cap‑rate surveys (JLL and CBRE), used an 8.3% cap rate for class‑A CCRCs, removed reported furniture, fixtures and equipment (FF&E) and then deducted an estimated intangible business‑asset value (estimated at $12,500 per unit) to reach a real‑estate value of about $14.78 million (roughly $111,000 per unit). "The methodology that we followed is the same methodology an MAI appraiser would follow," the representative said.
County staff countered that this property type frequently requires the cost approach because operating income includes Medicaid/Medicare and other payer mixes that vary across facilities; county staff said they relied on a cost approach using Marshland Swift costing and national sales adjusted to get a per‑square‑foot value. The county also said the property sells infrequently and that their cost approach and parcel sketch produced a county valuation of roughly $20.48 million (about $171 per square foot) for the combined parcels.
Discussion at the hearing focused on: how to convert going‑concern prices to real‑estate values (deducting FF&E and business assets), the size of the intangible deduction, and inconsistencies in unit counts supplied to the county (tax representative cited 132 units; county materials listed 116 units). The county emphasized that, for this property type, appraisers commonly adjust going‑concern sale prices to remove business and FF&E values to arrive at a real‑estate value.
The board accepted evidence from both sides and said it would provide a written decision in the next several days.
