Wychwood Cottages - Petitioner's Prehearing Statement.pdf
Wychwood Cottages LLC, Petitioner Vs. Township Of Crystal Lake, Respondent · 24-003607-TT
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STATE OF MICHIGAN DEPARTMENT OF LICENSING & REGULATORY AFFAIRS MICHIGAN ADMINISTRATIVE HEARING SYSTEM MICHIGAN TAX TRIBUNAL WYCHWOOD COTTAGES, LLC, Petitioner, MTT Docket No. 24-003607 v. PPN # 05-085-033-00 CRYSTAL LAKE TOWNSHIP and BENZIE COUNTY, PETITIONER’S PREHEARING STATEMENT Respondents. Adam J. Brody (P62035) Deborah I. Ondersma (P55907) VARNUM LLP Attorneys for Petitioner 333 Bridge Street, N.W. P.O. Box 352 Grand Rapids, MI 49501-0352 (616) 336-6000 ajbrody@varnumlaw.com diondersma@varnumlaw.com Michael D. Homier (P60318) Thomas K. Dillon (P81136) FOSTER, SWIFT, COLLINS & SMITH, PC 1700 East Beltline NE, Suite 200 Grand Rapids, MI 49525 (616) 726-2258 mhomier@fosterswift.com tdillon@fosterswift.com Petitioner's representative: Adam J. Brody (P62035); Deborah I. Ondersma (P55907) Respondent's representative: Michael D. Homier (P60138); Thomas K. Dillon (P81136) I. VALUATION INFORMATION: A. The true cash value (TCV), assessed value (AV), and taxable value (TV) for each parcel and tax year at issue as established by the Board of Review: As a result of the delayed uncapping: Tax Year Parcel No. True Cash Value Assessed/State Equalized Value Taxable Value 2012 05-085-033-00 1,643,000 $821,500 $821,500 2013 05-085-033-00 1,710,600 $855,300 $841,216 2014 05-085-033-00 1,836,000 $918,000 $854,675 2015 05-085-033-00 1,780,000 $890,300 $868,350 2016 05-085-033-00 1,541,600 $770,800 $770,800
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2 2017 05-085-033-00 1,521,000 $760,500 $760,500 2018 05-085-033-00 1,489,000 $744,500 $744,500 2019 05-085-033-00 1,776,800 $888,400 $762,368 2020 05-085-033-00 1,744,600 $872,300 $776,853 2021 05-085-033-00 1,877,200 $938,600 $797,729 2022 05-085-033-00 3,171,600 $1,585,800 $813,724 2023 05-085-033-00 3,192,800 $1,596,400 $854,410 2025 05-085-033-00 3,516,000 $1,758,000 $924,942 B. Your contentions of TCV, state equalized value (SEV), and TV for each parcel and tax year at issue: Respondent’s contention of TV: Parcel No. Tax Year True Cash Value Assessed/State Equalized Value Taxable Value 05-085-033-00 2012 1,643,000 $821,500 $455,138 05-085-033-00 2013 1,710,600 $855,300 $466,061 05-085-033-00 2014 1,836,000 $918,000 $473,517 05-085-033-00 2015 1,780,000 $890,300 $481,093 05-085-033-00 2016 1,541,600 $770,800 $482,536 05-085-033-00 2017 1,521,000 $760,500 $486,878 05-085-033-00 2018 1,489,000 $744,500 $497,102 05-085-033-00 2019 1,776,800 $888,400 $509,032 05-085-033-00 2020 1,744,600 $872,300 $518,703 05-085-033-00 2021 1,877,200 $938,600 $525,964 05-085-033-00 2022 3,171,600 $1,585,800 $543,320 05-085-033-00 2023 3,192,800 $1,596,400 $570,486 05-085-033-00 2025 3,516,000 $1,758,000 $617,579
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3 C. Amounts in dispute for the tax years(s) at issue: Taxable Values in dispute: Parcel No. Tax Year True Cash Value Assessed/State Equalized Value Taxable Value in Dispute 05-085-033- 00 2012 0 0 $366,362 05-085-033- 00 2013 0 0 $375,155 05-085-033- 00 2014 0 0 $381,158 05-085-033- 00 2015 0 0 $387,257 05-085-033- 00 2016 0 0 $288,264 05-085-033- 00 2017 0 0 $273,622 05-085-033- 00 2018 0 0 $247,398 05-085-033- 00 2019 0 0 $253,336 05-085-033- 00 2020 0 0 $258,150 05-085-033- 00 2021 0 0 $271,765 05-085-033- 00 2022 0 0 $270,404 05-085-033- 00 2023 0 0 $283,924 05-085-033- 00 2025 0 0 $307,363 II. TAX INFORMATION: A. Have taxes been paid for each property for each tax year at issue? _X_ Yes No III. FACTUAL STATEMENT OF CLAIMS: A. Describe any additions or losses for each property for each tax year at issue (by parcel number and tax year): None.
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4 B. Classification of each property for each tax year at issue (by parcel number): The subject property is residential improved real property. C. Current use of each property for each tax year at issue, if different than above (by parcel number): The subject property is used as residential improved real property. D. Contention of highest and best use for each property for each tax year at issue, if different than property's current use for each tax year at issue (by parcel number): Same as current use. E. Your factual statement of claims in support of your contentions, including additions and losses, if any (i.e., what facts are you relying on in support of your claim or defense?): The subject real property has been owned by the same family for roughly 100 years. Clara S. Boone owned the subject property in Crystal Lake Township, Michigan, until 1992. In 1992, Clara conveyed that property to her four (4) children in equal shares. In 2011, the four (4) siblings (or their surviving spouses) transferred their respective interests in the property into Petitioner, Wychwood Cottages, LLC. Petitioner, Wychwood Cottages LLC, has four (4) members: all four (4) members are the children/descendants (or their surviving spouses) of Clara S. Boone. In calendar year 2024, the Township retroactively uncapped the property’s taxable value for tax years 2012 through 2023 based upon the 2011 transfer to Petitioner, Wychwood Cottages, LLC. However, because this was a transfer of real property among commonly controlled entities under MCL 211.27a(7)(m), the 2011 transfer was not a “transfer of ownership” under MCL 211.27a(6). F. If non-uniformity of assessment is alleged, what evidence will you rely upon in support of your contention? N/A IV. ISSUES TO BE LITIGATED: A. Factual Issues: What were the details of the 2011 transfer? B. Legal issues: Was the transfer of the subject property in 2011 from four siblings (or their respective trusts) of equal ownership into an LLC controlled solely
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5 and equally by all four siblings a transfer of ownership under MCL 211.27a(6) to trigger an uncapping of taxable value or was it a transfer of real property among commonly controlled entities and exempt from an uncapping of taxable value under MCL 211.27a(7)(m)? V. DO THE PLEADINGS NEED TO BE AMENDED TO CONFORM TO THE EVIDENCE? Yes _X___ No A. If yes, state all necessary amendments (a motion may be required to amend the pleadings): N/A VI. ARE THERE CONSOLIDATION ISSUES: Yes __X___ No. A. If yes, state the cases, by docket number, that should be consolidated with this case (a motion may be required to consolidate the cases): VII. PENDING OR ANTICIPATED MOTIONS OR OUTSTANDING DISCOVERY ISSUES, IF ANY: A: Motions: This case may be appropriate for resolution through a Motion for Summary Disposition. B: Discovery: None anticipated at this time. VIII. WITNESSES – IDENTIFY THE NAME AND ADDRESS OF ANY PERSON WHO MAY TESTIFY AND PROVIDE A GENERAL SUMMARY OF THE SUBJECT AREA OF THE TESTIMONY OF EACH PERSON IDENTIFIED: A. Ronald Green, 4708 E. Road Runner Place, Paradise Valley, AZ 85253. Mr. Green will testify about the ownership (including, but not limited to, his and his deceased wife’s ownership) of the subject property both before and after the 2011 transfer to Petitioner Wychwood Cottages, LLC. Mr. Green may also testify about other details related to historical ownership of the property by the Boone family and its heirs and any other information related to the past and current use of the property and is its assessment including, but not limited to, the uncapping currently under appeal. B. Michael Green, 1009 MacDonald Place, Santa Rosa, CA 95404. Mr. Green may be called to testify about the ownership (including, but not limited to Ronald and Gaile Green’s ownership) of the subject property both before and after
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6 the 2011 transfer to Petitioner Wychwood Cottages, LLC. Mr. Green may also testify about other details related to historical ownership of the property by the Boone family and its heirs and any other information related to the past and current use of the property and is its assessment including, but not limited to, the uncapping currently under appeal. C. Christine Boone, 26037 Norman Drive, Englewood, FL 34223. Ms. Boone will testify about the ownership (including, but not limited to her ownership) of the subject property both before and after the 2011 transfer to Petitioner Wychwood Cottages, LLC. Ms. Boone may also testify about other details related to historical ownership of the property by the Boone family and its heirs and any other information related to the past and current use of the property and is its assessment including, but not limited to, the uncapping currently under appeal. D. John Oppenheim, 834 S Corona St., Denver, CO 80209. Mr. Oppenheim will testify about the ownership (including, but not limited to his and his deceased wife’s ownership) of the subject property both before and after the 2011 transfer to Petitioner Wychwood Cottages, LLC. Mr. Oppenheim may also testify about other details related to historical ownership of the property by the Boone family and its heirs and any other information related to the past and current use of the property and is its assessment including, but not limited to, the uncapping currently under appeal. E. David Oppenheim, 65 Bannock St., Denver, CO 80223. Mr. Oppenheim may be called to testify about the ownership (including, but not limited to David and Virginia Oppenheim’s ownership) of the subject property both before and after the 2011 transfer to Petitioner Wychwood Cottages, LLC. Mr. Oppenheim may also testify about other details related to historical ownership of the property by the Boone family and its heirs and any other information related to the past and current use of the property and is its assessment including, but not limited to, the uncapping currently under appeal. F. Robert Boone, 951 Vernon Ave., Glencoe, IL 60022. Mr. Boone will testify about the ownership (including, but not limited to his ownership) of the subject property both before and after the 2011 transfer to Petitioner Wychwood Cottages, LLC. Mr. Boone may also testify about other details related to historical ownership of the property by the Boone family and its heirs and any other information related to the past and current use of the property and is its
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7 assessment including, but not limited to, the uncapping currently under appeal. G. Darcy Sherman, 1760 Eldorado Cir, Superior, CO 80027. Ms. Sherman may be called to testify about the ownership of the subject property (including, but not limited to Ron and Gaile Green’s ownership) both before and after the 2011 transfer to Petitioner Wychwood Cottages, LLC. Ms. Sherman may also testify about other details related to historical ownership of the property by the Boone family and its heirs and any other information related to the past and current use of the property and is its assessment including, but not limited to, the uncapping currently under appeal. H. Dave and/or Jill Brown, Assessor, Respondent Crystal Lake Township, 1196 Ranger Dr, Gladwin, MI 49624. Dave and/or Jill Brown will testify about the assessment and the uncapping of taxable value of the subject property. I. Any other records/foundation witnesses. J. Any witnesses identified by Respondent on its witness list in this matter. K. Any necessary rebuttal witnesses. L. Respondent reserves the right to amend this witness list. IX. NUMBER OF DAYS REQUIRED FOR HEARING: - 1-2 days VIII. DISCLOSURE AND TAXATION OF COSTS: Petitioner reserves the right to seek costs. VARNUM LLP Attorneys for Petitioner Dated: November 17, 2025 By: /s/ Deborah I. Ondersma__________ Adam J. Brody (P62035) Deborah I. Ondersma (P55907) Business Address/Telephone: 333 Bridge Street, N.W. P.O. Box 352 Grand Rapids, MI 49501-0352 (616) 336-6000 ajbrody@varnumlaw.com diondersma@varnumlaw.com