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ONO: The property tax, it’s based on the value of the land, I’m assuming. <br /> <br />KRAUS: Yeah. <br /> <br />ONO: So that with your development, would you say that her taxes are going to go up or down? <br /> <br />KRAUS: I believe it would remain the same because she would still have a residential use; and the <br />value is still going to be assessed, you know, according to the sales that are, have occurred in the area. <br /> <br />ONO: So if I'm hearing you correctly the improvements on your property will not affect hers, is what <br />you're saying? <br /> <br />KRAUS: I'm not an appraiser but I do think that it would depend on whether it's the County appraiser <br />looking at it for tax purposes versus a residential appraiser looking at it. But they probably wouldn't <br />use it as a comparable because it is a commercial property, not a residential. <br /> <br />MELROSE: I would also add that her property is currently taxed as unimproved residential rate, <br />which is a high rate. She has no home on it. When she puts her home on it, when she makes the <br />investment in that property and lives in it as she says she's intending to, the taxes will actually go down <br />as a result of her homeowners exemption. So, I mean, it's hard just to answer that question in general. <br />But it is still a blank piece of property today and it will be taxed as such, and then she has got some <br />distance before she actually installs her home and, you know, settles into the property. <br /> <br />KERN: Madam Director? <br /> <br />LEITHEAD TODD: I was going to elaborate on that. Assuming that she paid $100,000 for her lot, <br />her real property taxes on it right now because she has no exemptions would be approximately $1000 a <br />year. It would be $9.95 per thousand. If she builds the house on it and spends $100,000 building a <br />house, then she has land and a house worth $200,000. But she now qualifies for the homeowners rate, <br />if she's an owner/occupant of $5.55 per thousand; and she also gets up to possibly $180,000 in <br />exemptions. So she may end up, possibly depending on the value of the house, she could end up <br />paying, and her age, paying as little as $100 a year in taxes versus the $1000 that she’s currently <br />paying. And I know this because the newspaper did an article on how much I pay in taxes and <br />compared me to the renters next door and didn’t look at the fact that I have a series people who have <br />hit 70 in my neighborhood and qualify and they’re all paying $100 a year even though they have nicer <br />houses than I do. So her taxes, it’s exactly like Mr. Melrose has stated. Once she builds her house, she <br />is most likely going to be paying less than she currently pays on the vacant land. <br /> <br />The area is in transition. There are a number of properties both on this street as well as the next street <br />over that are gradually in the, changing over to either commercial uses where you have stores or office <br />uses. Not far away from there is, on the corner is Tsukazaki, Menezes and Yeh. It’s right next to the <br />dialysis center. They didn't change the home at all, except the ADA ramps. But this is going to be a <br />high demand area over time because of the proximity to the university. As the university grows there <br />is going to be interest in this area. So her value will be driven more by what lots and houses around <br />her sell for than anything that the Chamber does is next door to her. <br /> <br /> 7 <br /> EXHIBIT A <br /> <br /> <br />