6/20/2012Posted by MJ
For the second time in seven months, a tentative sale of Ulrich City Centre has been announced.
This time, the buyer is supposed to be Siesta Development, a newly formed Buffalo company whose principal is Darrel R. Lloyd, an appraiser at KLW Group in Amherst.
The Niagara County Industrial Development Agency on Wednesday approved the transfer of the property tax break on the commercial complex from Ulrich Development Corp. to Siesta.
Owner David L. Ulrich said the sale hasn’t closed yet.
In November, the IDA board approved the transfer of the tax break to Timothy R. Gelder, vice president and chief financial officer of Barden & Robeson Corp., Middleport. However, that deal fell through.
“The buyer wasn’t able to obtain financing,” Ulrich said Wednesday.
He declined to discuss the sale price, calling it “very modest.” However, Siesta’s application says the company intends to obtain a $2.8 million mortgage while investing $600,000 in equity — a total of $3.4 million...Some people have mentioned that they have some concerns with the person who tax assessed the property at $2.2 million buying the property for $2.8. Is the concern that he received priority in the sale for giving a lower assessment to the previous owner Ulrich?
We are all free to sell our properties for more than they are assessed at. Tax assessments are educated guesses and the real value in most cases is revealed in a sale.(obviously not the case if my mother sold me her house for $1).
The city did not lose out on any money since the assessments just relatively divvy up the approved budget for the year. You and I just may have paid a couple $$$ more.
I've written about assessments in the past. Their punitive nature is a big hold up to reinvestment in the city. We should be rewarded for improving our properties, not for letting them die a slow death infecting the houses around them.