A national manufacturing company with numerous plants across Canada.
One property situated in a tertiary market location in New Brunswick received a new assessment that represented a modest increase of less than 1% to the previous assessment year. However, the plant was not producing at optimum levels as of the effective date of assessment.
Altus Group recommended appeal and subsequently proceeded with a request for review with the assessor. Following the presentation of multiple arguments, the assessors countered with comparable data that pointed to a higher per unit rate under a direct comparison approach methodology. Their indexes included a mix of properties in preferred markets that were then adjusted for economic (or locational) obsolescence. Our position was this adjustment was insufficient. We subsequently created a model that provided a mathematical justification that further strengthened our view.
Our arguments resulted in a 20.8% reduction in the assessed value of the property and tax savings of over $11,027 for the client. We have since been engaged to handle the company’s national portfolio of properties.