Someone please explain the property value

[Lou Minatti]

According to Six Flags and appraisal "experts", the property may fetch up to $145 million. Yet according to the Harris County Appraisal District the Astroworld property is worth $13 million. Six Flags' property tax bill for Astroworld in 2004 was $196,973.70. If the property is indeed worth $145 million, Houston taxpayers have been getting highly ripped off all these years.

Am I missing something here? The math and the links to the appraisal records are here:

http://louminatti.blogspot.com/2005/10/astroworld-1968-2005.html

Something's out of wack.

[bigboy]

I was told when I purchased my home that property appraisals for tax purposes rarely reflect true market value, particularly those values listed on the appraisal district websites. I assume the same is true for business properties. SF may have some kind of deal with the taxing entities that caps their value.

SFOT is appraised at $51 million here and I would guess it is worth significantly more than that.

[nycoil]

I have thought this all along - I will be interesting to see who gets the property. With a bridge build in, my guess will be some kind of enterprise tied to Reliant Park. And since County officials have known about the closing since June….

[Mike Robinson]

While Six flags knew since June, I do not believe the County knew until the annoucement was made. They did find out afterwards but were negotiating a new lease for parking until a few days before the announcement.

[arreaux]

AstroWorld consists of multiple tracts. Here are all I found.

from

www.hcad.org

Account Number Owner Name Property Address Zip Impr Sq Ft Appraised Value Market Value
0451780000054 SIX FLAGS ASTROWORLD 9001 KIRBY DR 77054 0 $7,734
1186110010001 SIX FLAGS ASTROWORLD 9001 KIRBY DR 77054 0 $12,824,056
1186110020001 SIX FLAGS ASTROWORLD 9001 KIRBY DR 77054 0 $163,072
1186110030001 SIX FLAGS ASTROWORLD 9001 KIRBY DR 77054 0 $40,310
1186110030004 SIX FLAGS ASTROWORLD 9001 KIRBY DR 77054 0 $193,512

[Black Dragon]

[arreaux]

[Lou Minatti]

So when you add up all the tracts, it's still "only" appraised at <$15 million.

I think this figure is reasonable. I do not buy the $145 million claim. Ya'll are as familiar with that area as I am. There's a superfund site nearby, nasty apartment complexes, and a Walmart. There won't be rich people buying condos, or upscale shopping centers, or office complexes. Especially not office complexes or condos, considering there is a glut of vacant RE on the market. The only real value I see in the property is a used car lot, or overflow parking for the Reliant complex.

I'll believe the $145 million sale when I see it. If Six Flags can get $145 million for it, I'll congratulate them on their smart business decision, and I'll laugh at the fool who ponied up the cash.

[arreaux]

[nycoil]

There is a ton of “Business Parks” and warehouse space going in behind AW – more specifically Fannin and Reed Road/Holms Road area – so if the AW property is to be “upscale,” there will be some blight (and truck noise) behind it.

[Mike Robinson]

Yeah, there will be a lot that comes to light in the coming months I am sure.
All the facts and real reasons are not public knowledge yet, but once the park closes the truth will manage to come out.

[arreaux]

Letter sent 11/4/2005. I'll keep you posted on the response.
___

Dear Mr. Bettencourt,
I have a question, and I hope that you can make the time in your schedule to answer it.

This question is about property taxes and assessed values; I know that is something you and your office are NOT responsible for.

But I also know it is an issue for which you have a great deal of fervor.

I do understand your official role in the business of taxes. I understand that my question should probably be address to The Harris County Appraisal District.

But, I don’t trust HCAD to give me any answer, much less an honest answer. I’m hoping that the research and analysis you have done on property taxes may give you an insight. Hopefully, you will be willing to share your insight with a concerned tax payer.

Moving on to the question.

I’m sure that you have heard that Six Flags has chosen to close AstroWorld due to rising property values. That property is now for sale and the expected sale price is between $90 million and $140 million. That is land value only since Six Flags is relocating all of the reusable rides and attractions to other parks and will demolish all other improvements.

I did a search on HCAD’s website. Here are all the tracts that comprise AstroWorld which my search turned up.

Account Information

Account Number
Owner Name
Property Address
Zip
Impr Sq Ft
Appraised Value
Market Value

0451780000011
SIX FLAGS ASTROWORLD
2121 SOUTH LOOP W
77054
34,260
$1,218,655
$1,218,655

0451780000054
SIX FLAGS ASTROWORLD
9001 KIRBY DR
77054
0
$7,734
$7,734

1186110010001
SIX FLAGS ASTROWORLD
9001 KIRBY DR
77054
0
$12,824,056
$12,824,056

1186110020001
SIX FLAGS ASTROWORLD
9001 KIRBY DR
77054
0
$163,072
$163,072

1186110030001
SIX FLAGS ASTROWORLD
9001 KIRBY DR
77054
0
$40,310
$40,310

1186110030004
SIX FLAGS ASTROWORLD
9001 KIRBY DR
77054
0
$193,512
$193,512

The tract 1186110010001 appears to be the main part of AstroWorld, the actual amusement park part. The others appear to be peripheral land they expanded into over the years.

The total value of all the land that Six Flags is selling was assessed only $14,447,339 for the 2005 tax year. That 14.5 million also includes all the equipment (rides and such).

The improvement on the major tract are only valued at $1,112,630 for 2005. Each of the major rides in the park which are now being relocated elsewhere, cost more and should have been valued at more than that. A modern major amusement park ride can’t be bought today for less than 5 million dollars, and they had a bunch of them.

So here is the real question. How is this valuation possible? If the land alone is expected to sell for at least 90 million dollars, why does HCAD value the land and many millions of dollars in improvements as being worth only 14.5 million dollars?

Thanks in advance for reading this and for your response.

[SunKing]

I'm no expert, but if it's anything like owning a house - there is a 'cap' to how much a properties value can increase from one year to the next for taxing appraisal purposes. While the 'real' value may increase, say 20% in one year - the 'cap' for taxing purposes may be set at 10%. Over time (like 37 years) the 'real' value of the land (what someone will pay for it) may be substantially greater than what is listed on the tax roles.

[The Fierce Pancake]

Ok, so does this mean that once the place sells for $100 million that the new owner is going to be forced to pay taxes to the city based on this re-appraisal?

[SunKing]

Yep, I think that's the way it works.