Opinion ID: 2691975
Heading Depth: 2
Heading Rank: 3

Heading: The BTA’s decision

Text: {¶ 14} While acknowledging that it had considered Lorms’s theory of obsolescence as probative in other cases, the BTA stated that “this theory has not always been accepted by the board where it has been shown that the obsolescence factors advanced by the appraiser do not exist in a particular market.” Meijer Stores Ltd. Partnership v. Franklin Cty. Bd. of Revision (May 27, 2008), BTA Nos. 2005-T-441 and 2005-T-443, at 17. The BTA also cited Meijer, Inc. v. Montgomery Cty. Bd. of Revision (1996), 75 Ohio St.3d 181, 661 N.E.2d 1056, as 5 SUPREME COURT OF OHIO supporting the proposition that the proponent of functional and external obsolescence must shoulder the burden of establishing the obsolescence. {¶ 15} After reviewing the competing appraisals, the BTA found itself “unable to conclude    that Meijer has met this burden,” inasmuch as “Mr. Lorms’ facts and figures have been successfully refuted by the facts and figures presented by the [school board].” Meijer Stores Ltd., BTA Nos. 2005-T-441 and 2005-T-443, at 18. In particular, the BTA quoted Koon’s statements – quoted in part above – relating to why he emphasized first-generation rent as opposed to second-generation rent. Id. at 19. The BTA distinguished the present case from those cases in which obsolescence was considered an important factor in determining value. Namely, the present case involved “nearly new improvements,” and the property “is located in a retail corridor that is both flourishing and growing.” Id. Also significant was the superior quality of evidence in this case that supported a higher value of the property. {¶ 16} Finally, the BTA considered and rejected the school board’s contention that the cost approach should be regarded as probative. It instead adopted Koon’s valuation of $14,850,000 for tax year 2003 ($14,075,0002 for 2004).