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Opinion column
by Murrel Bland
The Kansas Board of Tax Appeals, meeting July 26, ruled unanimously that The Woodlands is paying too much property tax and reduced its tax liability substantially for the year 2017.
Wyandotte County Appraiser Kathy Briney and Wendy Green, a lawyer for the Unified Government, said they have requested a copy of the detailed proceedings from the Tax Appeal Board to determine if they will appeal the ruling.
The Woodlands is owned by Phil Ruffin, a wealthy businessman who also owns other Kansas race track properties in Wichita and Frontenac. He is a business partner with Donald Trump; they own the Treasure Island casino in Las Vegas.
If the ruling stands, it could mean taxing units, including the Unified Government, the Piper School District and the Community College, could be forced to make refunds to The Woodlands.
The Woodlands paid $297,988.30 in real estate taxes for 2017. Of the amount, about 45 percent or about $134,000, was the Unified Government’s portion. The Piper School District’s portion at 33 percent was about $90,000. The Community College’s portion was about 15 percent or about $44,000. If the ruling holds, the Unified Government’s new portion would be cut to only about $10,000; the Piper School District’s share would be only about $7,000 and the Community College’s portion would be about $3,500.
Bernie Shaner, an appraiser representing The Woodlands before the Tax Appeals Board, said the current use for the property is not economically feasible to operate as a horse racing enterprise because of “increased competition from nearby riverboat casinos and other land-based casinos…” He said that the present buildings at The Woodlands are in a serious state of disrepair and should be razed. Shaner said the highest and best use of the slightly more than 381 acres would be residential use.
Residential property in western Wyandotte County in a typical subdivision sells for about $35,000 for one-third of an acre. Assuming The Woodlands could be developed into a residential subdivision using 75 percent of the land for residential lots, its retail value could be more than $29 million.
The Tax Appeals Board ruled that the valuation of the property should be cut from $7,025,690 to $548,580. The ruling also could have an impact on 2018 and future tax amounts.
One person who follows real estate values closely, who asked to remain anonymous, said this decrease in valuation of the Woodlands property is much too low. The unimproved land was sold to the original Woodlands’ developers, R.J. Hubbard and Dick Boushka, in 1988 for $1,772,000. The cost of the development was $68 million when The Woodlands opened in 1989.
The property, including land and buildings, was sold to Ruffin from the estate of Bill Grace for $15 million in 2015.
A nearby commercial property with 44 acres is listed for sale at $3.5 million.
If the Unified Government does appeal the Board of Tax Appeals ruling, the case would go before the Kansas Court of Appeals. It could be months before the court would rule on this case.
Murrel Bland is the former editor of The Wyandotte West and The Piper Press. He is the executive director of Business West.