Malls, some golf courses saw values plunge in Mecklenburg County revaluation

While homeowners are bracing for property tax bills after the 2023 revaluation, the story is playing out differently for some owners of large commercial property in Mecklenburg County.

Over the past four years, the median increase of residential property values was 58% while commercial properties increased 41%.

But some golf courses and all of the county’s malls saw decreases in property value since 2019, this year’s revaluation showed. All of the county’s hospitals are exempt from property taxes.

State law requires counties to perform a revaluation at least every eight years. Property revaluations are intended to set both residential and commercial property values to match the most current real estate market, which is Jan. 1 in this case.

County Commissioner Laura Meier called for a public review of how country clubs and some other commercial properties are valued by the tax assessor.

Meier said she’s heard from constituents who have said their property values have increased while sitting on a golf course that’s decreased in value, causing confusion.

One Charlotte golf course dropped $10 million in value

Mecklenburg County says golf course valuations in 2023 were completed the same way they were in 2019. They were appraised by Atlanta-based appraiser Kenneth Voss and Associates, an independent consultant, to determine new values for all 27 golf courses in Mecklenburg County.

The appraisal company used sales, cost and income from the various courses to determine the 2023 values.

Some golf courses saw dramatic changes in value. Charlotte Country Club, four miles east of Uptown, dropped $10 million in value. But the Palisades, a country club near the South Carolina state line, jumped $5 million.

Quail Hollow, home to the high profile President’s Cup, is worth less than $10 million after the 2023 revaluation. Mecklenburg tax assessor Ken Joyner pointed out that a similar golf course in Louisville, Kentucky, recently sold for $13 million.

“To hear that that many acres is worth $9.9 million, it doesn’t make common sense,” Commissioner Elaine Powell said.

Voss has worked in state and county governments for 50 years and is considered an expert in commercial and residential property revaluation, according to the county. He also assisted with appraising golf courses for Douglas County’s revaluation in Nebraska, according to the county presentation.

“I don’t doubt your appraiser’s credentials,” Meier said to Joyner. “I question the process, the formula, if you will. I still don’t understand why the income approach is best for revaluation.”

Public, commissioners see issue with revaluation ‘system’

During a public hearing, Greg Jarrell, co-founder of west Charlotte organization QC Family Tree, pointed out how a 19-acre empty lot at the corner of Glenn Eagles Drive and Parker Road was valued for $16 million while Quail Hollow was valued at $9.9 million.

Jarrell wants the revaluation system for golf course appraisals to change.

“You ran for office so you can make systemic change,” Jarrell said. “Your charge as our representatives is to build a system that serves this community, not just carving out social spaces for the elite.”

The Rev. Kate Murphy of The Grove Church in Charlotte agreed with Jarrell.

“I want the country clubs to be taxed on the value of their land,” Murphy told county commissioners. “And if their land isn’t that valuable, how about we use eminent domain and build some affordable housing for teachers there.”

Joyner says the county is processing 7,000 informal reviews several weeks after new values were mailed out to property owners. Last revaluation, Mecklenburg saw about 30,000 informal reviews. Reviews do not always lead to successful appeals.

County Commissioner Pat Cotham said she remembers in 2019 when the government center was filled with residents angry about the revaluation.

County Commissioner Susan Rodriguez-McDowell said she doesn’t see any faults with Joyner’s assessment of all the county’s tax parcels, but that the system itself creates an unfair tax burden.

“The problem is not with you, the problem is that people don’t think this is fair and they’re not wrong,” Rodriguez-McDowell said. “It’s not OK that the tax burden is being placed … on the homeowners. So this is the way the system is designed to work.”

Changing tax values are disproportionately affecting low income families. In Grier Heights, a neighborhood with a mixture of rentals and smaller singe family homes, residential properties increased 155%, a Charlotte Observer analysis found. Eighty-six percent of Grier Heights’ 471 residential lots doubled in value.

Malls viewed as ‘dated retail concept’

Malls took a hit in Charlotte in the 2023 revaluation.

SouthPark Mall dropped $50 million in value, Northlake dropped $16 million and Carolina Place dropped $7 million.

According to market analysis by the county, the change in value of Charlotte’s shopping malls reflects a national trend.

COVID-19 increased economic pressure on retailers as shoppers began shopping online more frequently.

“Malls are not seen as properties that are growing at this point,” Joyner said. “I’ve heard many people say they’ve got to go back and redesign, they’ve got to figure out what is going to work for them.”

Mecklenburg Hospitals

All of Mecklenburg County’s hospitals are exempt from paying property tax.

The Hospital Authority, which does business as Atrium Health, is automatically exempt from paying property tax because it’s treated as a public entity under a general statute.

Other hospitals in the county applied for exemption and are expected to confirm exemption status every four years.

Rodriguez-McDowell said she found this unfair.

“Hospitals? An arm of government? They are gobbling each other up, making huge profits. The county isn’t making money, but hospitals are making money,” Rodriguez-McDowell said. “This is wrong, especially when our residents have crippling medical debt.”

What’s next?

County Manager Dena Diorio said she doesn’t want the public to think they’re manipulating the revaluation process and pointed out the appeals process that’s in place.

“To artificially try to manipulate the outcome because we don’t like the numbers that we see undermines the entire process,” Diorio said.

Powell asked if they could appeal golf course revaluations as commissioners. Joyner said any individual that owns real property can file an appeal on any property.

County Attorney Tyrone Wade told Meier if they wanted to change the process, the county would have to put any policy proposals on the county’s legislative agenda to be taken up with the state government.

“This needs to change,” Meier said.