Summary
A taxpayer representative told the Clay County board increased payroll and insurance expenses pushed down NOI at a 144‑unit complex, prompting a lower valuation request; county staff argued comparable sales and appraisals supported a higher figure.
A property representative told Clay County appraisal staff that Timberline Apartments and Townhomes in Kansas City (144 units) deserved a lower assessed value because net operating income (NOI) had declined in recent years owing to payroll and insurance cost increases.
The representative said he used a 6.5% cap rate (Integra cap‑rate study suburban class B) plus an effective tax rate to conclude an overall rate of 8.03%, producing a rounded value of about $7.68 million (roughly $53,000 per unit). He said the property's NOI deteriorated year‑over‑year due to payroll and property‑casualty insurance rises and that he relied on recent income statements and sale comparables of similar vintage to support his number.
Mike Jacoby, representing the county, countered that the county classified the property as C‑minus investment grade and cited CoStar and appraisal data with higher per‑unit sale comparables and cap rates that support a higher assessed value. Jacoby noted a county appraisal reference indicating a stabilized value near $9 million and argued the county's current assessment of approximately $61,100 per unit was within the range of regional sales and appraisals used in their mass analysis.
Both sides discussed technical adjustments: whether to include taxes in operating expenses or treat them as an effective tax rate; how to handle personal property deductions; and the correct cap rate and vacancy assumptions for a suburban class‑B property. The board did not issue an immediate ruling; county staff said they would provide a written decision in the coming days.
