Dear
Editor,
The
Captiva Erosion Prevention District (CEPD) has submitted a tentative
apportionment of the costs, and hence taxes, for the much needed
beach renourishment. However, that apportionment is based on
fallacious economic thinking and creates massive inequities among
owners.
In
a word, the CEPD believes that the value of many properties on
Captiva as determined by the Lee County Tax assessor (2017 tax role)
needs to be increased to reflect “recreational benefits”. Those
benefits are current and prospective rents. That is fallacious
economic thinking, wrong in both theory and practice. Real estate
brokers sell, and buyers buy properties based upon their current and
prospective rental value. The tax assessor then re-appraises
properties based upon those transactions. To increase the just value
of a property for “recreational value” is double dipping and in
the process discriminates against a broad class of owners.
I
have twice asked the CEPD how much current and prospective rental
value is in the just value of a property. I have not received an
answer. “Just Value” is the term used by the CEPD as the
unadjusted value on their work sheet.
The
CEPD will hold a meeting on this February 12. I will ask the question
again there.
Beach
replenishment is vitally important to Captiva. A healthy the beach is
the lifeline of our community. However, the costs for a healthy
beach need to be apportioned fairly. Because the current (CEPD)
proposal relies upon a fallacious methodology, it does not do that.
Much
of my career has been concerned with issues of valuation. I have
given expert testimony in matters of litigation on valuation. I have
taught valuation courses. I have made numerous presentations to
boards of directors on matters of valuation, some where legal
liability was involved. And, for the past few years until last
October, I chaired the Audit Committee of a substantial financial
institution with considerable holdings of residential real estate
throughout the US and in Florida. Consequently, I feel comfortable in
discussing these issues.
Sincerely,
Carroll
R. Wetzel
President,
Captiva Shores Association