Appeal No. VA93/4/020
AN BINSE LUACHÁLA Dawn Farm Foods APPELLANT RE: Factory at Map Ref: 21F, Townland of Maudlings
(pt of), B E F O R E JUDGMENT OF THE VALUATION TRIBUNAL By Notice of Appeal dated the 2nd November, 1993 the appellant appealed against the determination of the Commissioner of Valuation in fixing a rateable valuation of £1,175 on the above described hereditament. The grounds of appeal as set out in the Notice of Appeal are that: The Property Valuation History Written Submissions (a) Rental Values sq.ft. (b) Capital Cost Take average of (a) + (b) = £ 122,818 R.V. @ 0.5% = £ 615 Plus agreed miscellaneous = £ 60 Mr. Killen gave details of two comparisons as follows:- R.V. on new factory - £1,275 - which devalues as follows:- Miscellaneous (2) North Dublin Cold Stores. (3) Rowntree Mackintosh, Mallow, Co. Cork A written submission was received on the 14th March, 1994 from Mr. Malachy
Oakes a District Valuer with 20 years experience in the Valuation Office
on behalf of the respondent. Mr. Oakes described the property and its
valuation history. He set out his calculation of the rateable valuation
on the subject premises as follows:- Add: (2) Lot on 21B.27Aa. Maudlings (Pt.of) (3) Lot 21B.27Aa. Maudlings (Pt. of) Oral Hearing Mr. Killen explained that agreement had been reached between the parties in relation to the minor areas of the valuation and as a result the appeal is now in relation to the correct rateable valuation attributable to the factory and the cold stores. He described the subject as a modern, free standing, purpose built factory with a total eaves height in the cold room of 20 feet. The subject is a good quality premises with adequate yard and car parking facilities. The purchase price for the site was approximately £70,000 for 2.5 acres and the building itself cost approximately £2.7 million to erect. He said that the valuation of the rateable plant and machinery and motive power has been agreed between the parties at a rateable valuation of £60.00. Mr. Killen said that the main comparison which he would be relying on is the Galtee Food Limited factory at Mitchelstown. In the light of the analysis of the rateable valuation on the Galtee premises put forward by the respondent, Mr. Killen said that he would amend his valuation on the subject premises to £2.75 per square foot on the factory and £3.00 per square foot for the cold stores which would give a total rateable valuation of £683.00. Commenting on his other comparisons, Mr. Killen said that the Rowntree Mackintosh factory in Mallow, Co. Cork devalues at £3.00 per square foot on the offices, with the ground floor factory at £2.00 per square foot and first floor factory at £1.00 per square foot and the stores at £1.50 per square foot. He further supported his valuation on the subject premises by referring to two of the respondent's comparisons, namely the premises of Maudlings Enterprises Limited at Maudlings and Q.K. Stores situate at Maudlings. He said that he agreed with the devaluations as given at page 6 of Mr. Oakes's précis of evidence but went on to say that he had inspected both premises and the eaves height is 30 feet on the cold stores which works out at £3.75 per square foot on the first premises and £3.55 per square foot on the second premises. The cold stores in the subject premises are 20 feet high internally and taking the relativity between these figures and those given above he suggested that £2.50 per square foot would be appropriate for the subject cold stores. However, having regard to the devaluation on the Galtee Food factory he would suggest that £3.00 per square foot would be appropriate. Mr. Oakes described the subject premises as a very well situated factory viz a viz the local road system. He said that his comparison, No. 2 in his précis, the North Dublin Cold Stores, has a construction cost which devalues at £22.00 per square foot and on the same basis, the subject premises devalues at £36.00 per square foot. Mr. Oakes said that this would suggest that the quality of the subject premises is very much superior and has a very good standard of finish. At this stage is was decided that the hearing should be adjourned to allow Mr. Oakes the opportunity to examine the Galtee Foods factory, it being one of the best comparisons available. A resumed hearing took place on the 6th of May, 1994. Commenting on the Galtee Foods factory, Mr. Oakes described it as an extension built onto the side of an existing plant. He said that the lairage and slaughter areas are relatively basic. Block A on the maps annexed to the judgement hereto is of a much superior quality with eaves height of approximately 7 metres and it contains the largest boning hall in the country. He said that the old valuation was £800.00 which devalues at £2.00 per square foot and the new factory at £2.50 per square foot. Mr. Oakes suggested that the Galtee factory is not as well located as the subject which is only 20 minutes from Dublin and has ready access onto the Naas by-pass. In reply, Mr. Killen said that the old factory was not valued on a Net Annual Value basis. The new extension cost approximately £4 million which represents an R.V. of £1,275. Mr. Killen described the Galtee factory as being equally good in every way to the subject but in relation to location the Galtee factory is right in the heart of the agricultural area from which it gets its produce, and is situate on the main artery for the country, namely the Dublin/Cork road. Mr. Killen said that the devaluation on the Galtee factory is £2.50 per square foot on the factory and £3.00 per square foot on the cold stores. The concession which he would make in relation to the subject is one of quantum, because the subject is 35,316 square feet and being smaller than the Galtee premises he was prepared to increase his valuation of £2.50 per square foot by 10% which would give a figure of £2.75 per square foot. He further said that the cold stores in the Galtee factory are valued at £3.00 per square foot and the comparisons put forward by Mr. Oakes in his précis at No's. 2 & 3 are at £3.75 and £3.55 respectively and these have eaves height of 30 feet. Mr. Killen said that as cubic capacity is very important in cold stores and the subject premises cold stores are 20 feet high he would suggest a valuation of two-thirds of the previous figures which gives a value of approximately £2.30 per square foot. Therefore to account for a quantum allowance, he would be prepared to increase his previous figure of £2.50 per square foot to £2.75 per square foot on the cold stores. In reply, Mr. Oakes said that the subject premises is a better quality building than the Galtee Foods factory, with excellent standards of hygiene, sophisticated temperature controls and air conditioning and in his estimation would stand out above any other industrial units which he has inspected. He said that the other comparisons which he has put forward are in the immediate vicinity and are much smaller but however are valued at £3.00 per square foot. Determination
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