Appeal No. VA95/1/120
AN BINSE LUACHÁLA Ted Spendlove, IPSALA t/a The Wicklow Arms APPELLANT RE: Licensed House at Map Ref: 28A, Townland: Delgany,
B E F O R E JUDGMENT OF THE VALUATION TRIBUNAL By Notice of Appeal dated the 25th day of April, 1995 the appellant appealed against the determination of the Commissioner of Valuation in fixing a rateable valuation of £400 on the above described hereditament. The grounds of appeal as set out in the Notice of Appeal are that:- The Property: Ground Floor First Floor Tenure: Services: Recent Valuation History: Written Submissions: In the written submission, Mr. O'Kennedy described the premises. He said that it was an old licensed premises which had been altered and extended over a number of years and was now primarily used as a restaurant. He said that approximately two thirds of the turnover of the premises was accounted for by food sales and in addition approximately two thirds of the drink turnover was related to wines and other drinks consumed in the restaurant. In conclusion, Mr. O'Kennedy said that the premises is removed from any densely populated areas and as a result depends on its entire trade travelling to the premises. Mr. O'Kennedy set out his estimate of the rental value of the premises as follows:- " 1990 1991 1992 Average adjusted Net Drink Turnover £245,150 £245,150 @ 9% £22,000 Rental Value 1990 1991 1992 Average adjusted Net Food Turnover £480,150 £480,150 @ 5% £24,000 Rental Value Mr. O'Kennedy set out details of five comparisons, all of which had been the subject of a sale and revaluation in recent years, as follows:- (1) The Wishing Well, Blackrock. (RV £390) (2) Glesson's, Deansgrange. (RV £450) (4) Tolka House, Glasnevin. (RV £450) (5) The Eagle House, Terenure. (RV £270) Mr. O'Kennedy also gave details of a further two comparisons, namely:- (1) Johnny Foxes, Glencullen. (2) The Step Inn, Stepaside. A written submission was received on the 21st day of September 1995 from Mr. Peter Walsh, B.Sc., an Associate of the Society of Chartered Surveyors in Ireland and Valuer with 9 years experience in the Valuation Office on behalf of the respondent. In the written submission, Mr. Walsh set out the description, location, accommodation and valuation history as outlined above. Commenting on the premises, Mr. Walsh said that the premises was well situated close to the growing urban centres of Greystones and Bray. Mr. Walsh set out his estimate of the rateable valuation as follows:- "Turnover Figures 1990 1991 1992 Gross Profit £386,813 £418,430 £550,275 Gross Profit 53% 53% 56% Take T/O figures for 1992 to account for effect of refurbishment and extension. T/O figure £976,124 Net Annual Value - at 10% = £80,000 x 0.5% = £400 Ratio of £1 RV to T/O = £2,000." Mr. Walsh gave details of three comparisons which are summarised below:- (1) VA94/2/021 - The Noggin Inn (3) 'Bridget Burkes' Commenting on the comparisons, Mr. Walsh said that comparison No.1, the Noggin Inn - has a mix of food and drink sales and enjoyed a healthy gross profit margin (44.8% in 1991). Comparison No. 2, The Goat - has a mix of food and drink sales also but that the two years to 1988 showed that 55% of turnover was made up of sales of food and non-alcoholic drinks. In conclusion, Mr. Walsh said that in recommending that no reduction be made to the rateable valuation of £400 on the subject premises, he had relied on the judgement of Mr. Justice Barron in Rosses Point Hotel Company Limited v. Commissioner of Valuation, Jan 87. Oral Hearing: Mr. O'Kennedy's submission was in accordance with his written submissions and he particularly pointed out the following:- 1) that the subject premises was valued as if it was a Dublin city pub,
while its main income is as a restaurant and it would have a very small
pub business. Mr. O'Kennedy said that in general the premises is not open until 6pm in the evening, Monday to Friday and on Saturday and Sunday at 12.30pm. Evidence has also been given that the profit from drink sales decreased in recent years. Mr. Walsh from the Valuation Office indicated that the work on the premises was completed in 1992 and that the property was valued on the basis of turnover. He also indicated that the suggestion that there was a 300% increase in the valuation was not strictly correct since the 1987 figure was valued under the old formula, despite the fact that the Act was introduced in 1986. Mr. Walsh said that the value of the extension had to be taken into account, and consideration also had to be given to the inter company lease. He considered that the reduction herein was generous and supported by the comparisons in particular, "Johnny Fox's" and "The Goat". In response, Mr. O'Kennedy and his witness said that the capital value of the Wicklow Arms in 1989 was not reflected in the rateable valuation and that there was nothing in the Act to allow the Valuation Office to value in accordance with turnover. Mr. O'Kennedy said that this was valuing the "ability to trade" and that the figure herein was out of line with rateable valuations on other properties in this area. Taking the written submissions and the oral hearing into account, as well as the comparisons offered, the Tribunal determines a rateable valuation of £330. |