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Open Space Land Designation 93-1 • Page 2 Tax Account Requested Deferral Acres Estimated Present Assessed Value of Deferred Area • 70130-381 ti'° 3.4 $28,382 59427-000 t' 10.6 $20,810 59446-002 ? 4.9 $N/A (1) 59446-000 94.4 $22,076 59444-000 36.7 $10,987 Totals 150.0 $82,254 • Note: (1) This parcel has not yet had a value established by the assessor as it is the product of a recent partitioning. • Given the low estimated values for the area under consideration due to existing timber and farm deferrals, it is apparent that an increase in assessed value is to the City's advantage. The land will have a higher taxable value assessed as a golf course deferral than its present timber/farm deferred value. The advantage is both in terms of using higher value to increase revenue to the City's tax base and in reducing the City's debt service levy tax rates. What hypothetical tax rates are possible? There are two additional scenarios which demonstrate the hypothetical effect on tax rates: 1) Assume a golf course deferred value of $6,000,000 (the value which the assessor might place on the golf course as open space.) 2) Assume that the raw land is available for a highest and best use as single family residential • at a value of $50,000 per acre, giving a hypothetical value of $7,500,000. As presented in Attachment A, the aggregate effect is to slightly decrease property tax rates within Salem. What would be the hypothetical revenue differences to the City? Multiplying the various hypothetical assessed values by the City's composite tax rate per thousand would result in the following: $ 6 Millon Assessed Value: $33,023 additional revenue $ 7.5 Million Assessed Value: $41,277 additional revenue The extent which the golf course adds to the value of the associated residential development is speculative, but the subjective conclusion is that the golf course would add to the residential units' value for taxation purposes. ALTERNATIVES The Planning Commission has two alternatives: A. Recommend to the City Council that the Creekside Golf Course be designated open space land, or B. Recommend to the e City Council that the Creekside Golf Course not be designated open space land.