2005/06/15 Council Agenda Packet

On the east side of Eighth Avenue, the two adult establishments and the property between them enjoy a common ownership; the thr6b tax lots all increased in assessed value by pr 3cisely the same percentage -59%. On that block front there is also a NYC Fire House and an vacant and sealed building that is listed by the Department of Finance in 1993 as City -owned. The one remaining parcel on that block front—a framing store —experienced a decline in assessed valuation for the period. Asimilar review of tax lots was not conducted for the other area of concentration, the 42nd St..Control Block. This was because It is felt that the many other.t_rends and government actions along that strip, including public, condemnation of the parcels and numerous lawsuits, would further complicate,the analysls, and would prove fruitless. Department-ofFinance-Assumptions- - -: .— -• In addition to the detailed analysis described above,' -we spoke to a high official In the 'Department of Finance to obtain his expert opinion on the'relationships and effects, if any, of adult use establishments on neighboring properties. He stated that "there -is no doubt in my mind that they [adult useestablishments] adversely affect other properties."- Their,.presence, he indicated, is factored j to the locational aspect of the appraisal formula, .though, he acknowledged that appraising is not itself an" exact science. A commercial building may be obtaining a reasonable rate of return,. but if that building were located near an adult use establishment,_the assessor would tend to use a higher capitalization rate, which would therefore produce a lower value. ' The further away a property Is from the adult uses, he explained; the lower the effect on Its value. E VER00216 30 ®M