SALISBURY, MD --- In unveiling Salisbury University’s updated Facilities Master Plan last April, SU President Janet Dudley-Eshbach predicted the University would eventually have a larger presence in downtown Salisbury.
Thanks to local developers Palmer Gillis and Tony Gilkerson that prediction is coming true sooner rather than later. Gillis and Gilkerson will donate one of West Main Street’s signature structures, the Plaza Gallery Building and Annex, to the Salisbury University Foundation, Inc. The gift is valued at some $4.4 million.
More
Publishers Notes: Gillis/Gilkerson paid $155,000.00 for the building. Not for nothing but I personally don't believe there is any privately owned building Downtown worth anywhere near $4.4 Million, DO YOU? Maybe they got a "drive by" appraisal like the City did with the old Fire Station 16.
That being said, how much does that now take off the tax roll again?
88 comments:
My thoughts precisely. A million dollars plus is the tax rolls.
Joe, speaking of the fire station what is happening there?
This entire thing stinks! Gillis/Gilkerson gets a huge tax break for donating something that is not anywhere near worth 4.4 million. The city gets screwed out of tax money and the citizens are left to pick up the pieces.
I would question whether the total downtown Salisbury is worth $4.4 million.
If I could buy a $100k building and write it off a a $4M donation, I would too. That's a million dollars to the bottom line in tax savings, conservatively
What does SU gain with a building downtown? Another place for the trolley to stop?
Big plus for downtown, but you guys have nothing but negativity to contribute.
They might be on to something, Downtown can't make with bars, restaurants, shops, etc so maybe SU should expand their campus and lobby more building owners to gift the downtown to Salisbury University.
3:20, Do tell the taxpayers what the massive plus there is to this. Not only are citizens screwed by having to make up for the loss of income, (tax wise) but at a national level every citizen in the entire country is hurt by this because of the massive tax loss from $150k to $4.4 Mil difference. You can attempt to say I/We are negative but it has only been SBYNews that has exposed such things.
I'm not a tax attorney but I can calculate what a sweet deal this is for someone and it isn't the normal Joe on the street. LOL
3:20 is confusing fact & sensibility with negativity. Poor dear, go back to reading your Daily Times.
3:12 is on target. Every time we remove property from the tax rolls, local government suffers the most. That being said, it is a smart gesture on the part of a couple of investment entrepreneurs, no doubt. You get a lot of good will credited to you from all of those occupying the lofty places. The question then turns to the university system...who will have to pick up the tab for any changes/improvements/and ongoing operational expenses. What will they do with it? Clearly it was not a place that was particularly appealing in the private sector hence this deal.
The IRS had been in the building for a while until a week or so ago and they moved. What was that all about. Were they given a heads up?
Ok, let's decide who the bigger winners and the losers are in this deal? Certainly, Gillis/Gilkerson will win big on their tax returns. SU will benefit for having a piece of real estate of this "value" gifted to them but they will have the upkeep and operating costs. The taxpayers will lose the tax base which could cause city and county taxes to increase. Will this building under a new ownership help the economy which could be beneficial to the taxpayers? That's to be seen yet. I think the big winners are the donors.
"Anonymous said...
Big plus for downtown, but you guys have nothing but negativity to contribute.
August 12, 2015 at 3:20 PM"
Yeah we'll see if this turns out to be a "big plus for downtown."
But mark my words 3:20, it won't and then you better come back so I can smash, smear and rub the "I told you so" in your face because one thing you can be assured and that is that I am right about things 99.9 percent of the time and you better never forget it.
If this is considered a "signature structure" for Downtown it's no wonder Downtown Salisbury is on life support.
That building is an eyesore. No character, no charm, no imagination whatsoever. It should be a hospice, a crematorium or something along those lines it's so depressing looking.
I'm sure the building will be renamed after a chicken tycoon.
I'm with 3:14.
The FMV will have to be substantiated with a qualified appraisal. Obviously a donation of this magnitude is more likely to be scrutinized. I would have to say it's more than likely correct.
Here's something else everyone should understand.
Because this particular building is now valued at $4.4 million, future buyers of buildings Downtown will be faced with new COMPS and assessments. Even though they'll pay a LOT less for that property, their TAXES will go through the roof. At one point I was paying $12,000.00 a year on my building to the City and County per year. It sold for less than TEN PERCENT of the value of their new crazy value. So, you run the numbers. This will harm future buyers like there's no tomorrow and will actually destroy sales of properties because you get absolutely and literally NOTHING for your tax value. No parking spaces, no trash pickup, NOTHING. In fact, when they start construction on the 2 hour free parking lot and you lose all those parking spaces, things will get even worse. Some politicians will tell you their newly proposed construction will have even more parking spaces but what they don't tell you is, there will be no 2 hour free parking AND it will provide spaces for whatever is built above it and less, (if any) spaces for visitors to Downtown Salisbury.
I'm still waiting for a response from 3:20 about what is positive about this whole things with SU.
Salisbury might as well change its name to Gillis/Gilkersonville. The Daddys are trying to help their kids failing investments in BARS downtown by trying to bring in more college activities. It may or may not work. In the meantime, they get a very sweet tax deal.
That Headquarters place is a bust from all reports. All the "kids" are whiners who want things their way. Devreco has its little group of supporters, but there are some grown ups who find the "kids" are little bullies without the finesse of their fathers. Interesting that the Daddys are riding to their rescue. Maybe that is why the "kids" think they are so special.
Wish we had some new blood with more class interested in downtown.
Don't forget their sweet, flawed deal on the States Attorney building. They are playing the city, county and the taxpayers like fiddles. Laughing all the way to the bank.
I agree!! I sincerely doubt that the entire downtown is worth $4.4 million. No one wants those buildings so the value is low. All of the buildings need to come up to code and none are compliant at all. It will cost a fortune to bring downtown up to code.
3:20 prove that it is a big plus for downtown. By and how? Cite your sources!!!
Another Gillis home run. I wonder how many more cherry deals they will get when Jake Day is around. The answer is more than anyone else.
Hell, the county paid them over 2 mil for the states attorney building didn't they? That helped drive up the value of this one. These guys are smarter than the those in power. They are taking advantage of the stupid politicians. They are the TRUMPs of Salisbury in EVERY way.
Personally, I am sick of that entire crowd. They rival the Donald in self-promotion. Tony Gilkerson is the only one with any class. Sadly, his sons didn't inherit it. The Gillis' think they are the greatest things ever. Egos are off the charts.
What happens to the Art Institute and Gallery?
Wait a minute.. If G/G paid $155,000 for the building and paid property taxes on that amount, doesn't this smell a little? Maybe they thought they were paying sales tax on the purchase price or the City so poorly assessed the property. G/G had no trouble getting a value assessment for a $4M+ write-off against income.
4:38 - hilarious about TRUMP and I agree, but sad for the citizens to be so taken advantage of. People who are out for themselves and then hide behind "donations" are not good people.
The upside to this is that hopefully SU students will start to fill the plaza during the day using the building. Hopefully they will explore the area buy food and help support local businesses. If the building stands partially empty as an art gallery or something meaningless; it won't do any good for downtown.
"That Headquarters place is a bust from all reports"
Of course it is a bust. It didn't take a rocket scientist to predict that one. It's a nice idea except not a good idea for Salisbury at this point in time and maybe never.
What happened to David Harkins' idea for downtown. I guess Gillis/Gilkerson ran him off. After all, he was trying to play in their sandbox. SMH. Can't people see who they really are? It is all about how much they can take. Then they hide behind a "donation" and get a mammoth tax write off. Screwing us at every level.
4:22, Let me be clear here. G/G didn't break any rules or laws. They have invested millions of dollars Downtown and IF anyone ever deserved a break, they do.
That being said, my beef is what this does to the taxpayers. Why 3:20 comes after me for criticizing this deal is beyond me. I have all the respect in the world for G/G and for what it's worth, their children work extremely hard every day trying to not only improve Downtown but the entire Eastern Shore. They have taken risks no one else would and if they come out ahead, they deserve it.
My point has always been how PRMC and SU keep buying up properties and call themselves non profits and these properties come off the tax roll. I truly do want to know why is so positive about this particular deal for Downtown or the taxpayers.
4;41 completely agree. Over them. Especially the second generation.
The property tax value is about 1.5 Million. Can anyone contest the "appraisal" value, and did they do a deal about that with IRS to get itto vacate the space it used to have there?
4:44, HOPEFULLY??? At $4.4 mil you better say it will definitely bring traffic and it is proven. Hell, the trolley can't even bring enough people to turn things around down there. Sorry but your comment sounds like a typical liberal BS politician.
If that dump is worth that many bucks, they really did steal the old fire station from the City.
How is this a plus for downtown? First there will be tax money that goes away. Second do we really want a bunch of loud drunk kids downtown. This will have a negative effect on the rebuilding. But if you are gills who cares you own half of the downtown and just got a 4.4 million write off.
GG is concerned about all the vacant space down there, with that Feldman's fiasco coming to fruition and the Headquarters on the skids. This will reduce the vacancy when SU does something goofy there.
Jake Day says it's not about tax revenue, but rather the economy. He thinks that while we may lose tax revenue on the building it will make up for itself in the people that it brings downtown to spur the economy on.
Jake is already on Facebook telling people what do you want "a better economy or a bigger tax base". Mark my words, look for a 1 percent income tax on people who work in the city, but live outside of it. Is there no one else to run for Mayor?
just FYI, the IRS has been planning to move over to Naylor Mill Road for QUITE some time, so take that IRS idea and throw it out.
In a Facebook debate I had with Mr. Day, he claimed that trolley brought over $100k to downturn business. Of course, No documents were presented
What happened to the Salisbury Studio of Dance moving into the old M&T building downtown?
wicomico county isnt worth 4 mil,scum capital of america
The headquarters is not the right venue for Smallsbury?
What the heck is? ANYTHING that comes here that brings a bit of culture to the area is a failure? Why? Because of you small minded pea brains.
Every other place that I have lived that had a venue for music, prospered.
I don't care what kind of music. Even a play. Anything.
Ya'll think eating chicken in the Mall parking lot is a festival?!
Keep it classy, Smallsbury.
Do you want to drop your children off to a dance studio with the types of people who roam Main Street after dark? The last time I was there after dark was for a ladies night at City Center promoted by the March of Dimes. They had Maryland State Policemen delivering us to our cars in the municipal parking lot. Remembering well I told my driver I could walk from one end to
half way down the lot and he refused telling me it wasn't safe. That was several years ago and everything has gotten worse since. No thank you.
4:02, you need counseling and possibly meds. Wow...
Very good point about the taxes.
Janet, here's a memo for you: YOU DON'T OWN THE TOWN! In fact, you don't even own the progressively ugly and imposing university over which you rule. Do us a favor and go back to West Virginia.
Wanna bet that 4.$ Million appraisal is by Wm. ("what amount do you want") McCain?
This building will be named after Janet Dudley-Eschbach.
It's this type of tax scam that makes the rest of us want to cheat.
Give it a chance. How much business is that building bringing to downtown now? Sheesh.
As usual Albero, no response when it dosent fit your agenda.
$4.4million. Welcome to the world of extreme tax fraud folks. That is nothing short of criminal. Remember how they finally got Al Capone....tax fraud.
6:48, What the heck are you talking about?
Huh? You don't make a bit of sense
Section 8 student housing.
Look at how much they have RIPPED OFF salisbury combined.
I am calling the IRS on them first thing tommorrow time for a Audit.
Good Ole boy network......
5:58 -
That appraiser could be the Trice (high or low?) firm.
Let me take a stab at this. Lost biggest tenant to add to other vacaccy's, big tax break on over inflated building, moving GG to another flop "Felmans" and rape the university on the renovations. Wow that is so generous . Need another building with bigger doors to get Palmers over inflated head in.
The way I figure it is that once the IRS moved out they couldn't lease it to anyone else for that kind of money. It was a business move by the owners so they would no longer have to pay taxes on a vacant building.
Sure you are.
Why would you say that? Do you have any idea how many appraisal firms do business locally? What an incredibly irresponsible thing to do.
Lets keep it real.....perhaps they are absolving their guilty conscience over the tenant who died along with his kids in that rental house in Princess Anne! You never heard anymore about WHO illegally wired it.
Thanks for exposing this tax scam.
SU's positive impact in our community is only the residual crumbs that fall off of SU's use of whatever they want and need. Very one sided.
Yes i am A..Wipe.
Call the IRS.
it is a fair deal for everyone. Thank Palmer an Tony for their courage in downtown salisbiury and givivg it to the University. Hats off to their boys for continuing the legacy.
This is similar to Hillary & Bill donating $1.4 million to a charity last year. The charity happened to be the Bill and Hillary Clinton Foundation. They gave the money to themselves and American citizens are screwed out of tax dollars.
Irs will be notified.
They are crooks and you keep defending them after you forget these atrocities!
Anonymous said...
The upside to this is that hopefully SU students will start to fill the plaza during the day using the building. Hopefully they will explore the area buy food and help support local businesses. If the building stands partially empty as an art gallery or something meaningless; it won't do any good for downtown.
August 12, 2015 at 4:44 PM
Are you that F*n Stupid and Uneducated!! College students are poor and buy beer with pocket change. You people that think that college students are the answer are just plain and stupid idiots. The biggest asset with college students is the rental housing. Many eat at fast food places or on campus. Get a clue moron!
Anonymous Anonymous said...
"That Headquarters place is a bust from all reports"
Of course it is a bust. It didn't take a rocket scientist to predict that one. It's a nice idea except not a good idea for Salisbury at this point in time and maybe never.
August 12, 2015 at 4:45 PM
They are playing this out for a while and when they think no one is paying attention they will sneak in the apartments that we didn't want. Mark my word on this.
Anonymous Anonymous said...
In a Facebook debate I had with Mr. Day, he claimed that trolley brought over $100k to downturn business. Of course, No documents were presented
August 12, 2015 at 5:04 PM
I had a debate on FB about another issue and I proved him wrong but he never accepted defeat. He if a F*n loser know it all and another Jim Ireton/Barrie Tilghman in the making. Watch out what you wish for you dumb idiots. If you had a brain you would put a good Republican up to run against him.
Anonymous said...
Jake is already on Facebook telling people what do you want "a better economy or a bigger tax base". Mark my words, look for a 1 percent income tax on people who work in the city, but live outside of it. Is there no one else to run for Mayor?
August 12, 2015 at 5:00 PM
Jake Day is so damn stupid this has nothing to do with the economy the way he thinks it does. It is just the opposite and we the tax payers will have to come up with the difference with more tax increases thus less money for us to spend which would spur the economy. IDIOT
Can everyone that doesn't like Jake Day friend him on FB and debate all these stupid things he thinks is a good idea because it's his idea.
Anonymous Anonymous said...
Very good point about the taxes.
Janet, here's a memo for you: YOU DON'T OWN THE TOWN! In fact, you don't even own the progressively ugly and imposing university over which you rule. Do us a favor and go back to West Virginia.
August 12, 2015 at 5:34 PM
Try Mexico
O.K. the assessed value is 1.5 million, I find it hard to believe the appraisal value is 4. million. Yes we loose the tax base on this property. I am sure that some business located in the building will probably move to the new building being renovated by Gillis & Gilkerson. The person speaking about college kids going to the local restaurant & bars downtown, most are underage for drinking. The people who talk about all the negativity when it comes to downtown, well maybe it is because the government & people with the means are only interest in downtown and there is no other interest within the remainder of the city. When people in government and with means, only focus on one area and leave the rest of the area for its demise how do you expect people to feel. Ride around the remainder of the city. There seems to be very little support or help within any other area of the city. I don't see how revitalizing downtown will help Pricilla street, Truitt street, Church street, Camden Ave., etc etc etc. It is within an individuals right to privately donate to a cause, but government, aka city cannot only focus on one area.
University students are not poor and relying on pocket change to buy beer anymore. Maybe 20-30 years ago. Have you seen the parking lots at SU? Nicest vehicles in Salisbury. Majority of the students have multiple credit cards backed with parents money. They dine out for most meals as none of them can cook or want to. They bring money to the local economy.
Just for fun , what do you think the 60,000 square foot fully leased building is worth? The valuation is less than $75 per square foot. How did you arrive at your value? DO really you know how real estate is valued/appraised professionally? How much does the State of Maryland spend on a square foot basis for construction, just construction, not land design or fees?
For county schools it well exceeds $350 per square foot. The new building at SU is costing over $550 per square foot. Seems to me the taxpayers are getting a deal and saving money.
The IRS , who says that they are broke, moved to a suburban sprawl location and costing the taxpayers hundreds of thousands of dollars beyond what they could have spent had they stayed Downtown, not to mention "storing " (trashing) their old furniture and spending thousands more on set up expense and moving costs. If any one should be outraged it should be on this issue, but the IRS has money to waste
Joe, it seems Fran's Appliances and Horner Honda have closed on South Rt. 13. What is going on?
Anonymous
Property is worth what is known as its “fair market value” – what a reasonable and arms length sale would bring – not what an owner may have paid to buy and rehab and maintain it or what the replacement cost would be. In this case it would be based on the potential rental proceeds (income stream) and a discount rate an investor would want for a rate of return on capital (ROI).
The current property tax value is based on such analysis. The three buildings – a large one (Plaza Gallery) and two smaller ones (annex) have a total assessed value of about 2.25 million dollars, which may be high, all things (location, age, vacancy, etc.) considered. Simply put, because the rental demand is not great downtown, and there is a high vacancy rate, both at this site and elsewhere, the value is not great either. No legitimate appraiser would value those buildings at $4.4 Million.
It just don't pass the smell test.
Post a Comment