Ingles-Owned Former Kmart and Sears Locations Tax Appraised at $0?
Asheville
Today’s burning question in Asheville revolves around tax appraisals and the surprising revelation that the owners of certain vacant properties may not have to pay any taxes on them. In particular, former Kmart and Sears locations owned by Ingles have raised eyebrows for being tax appraised at $0.
Background
The 1001 Patton Ave. Kmart in Asheville closed its doors in 2019 and was subsequently purchased by Black Mountain-based Ingles in the same year for $8.5 million. The vacant 126,000-square-foot building has since undergone conditional rezoning to be transformed into an Ingles grocery store, an endeavor seen as crucial for bringing a new shopping option to the Emma community.
Despite its potential, the Kmart building has deteriorated over the years, becoming a burden rather than an asset for its owner. County Tax Appraiser Keith Miller explained that the $0 appraisal stems from the building reaching the end of its useful life, making it in need of major renovations to be considered functional.
Appraisal Details
Miller highlighted key factors that contribute to setting a building’s value, including its remaining economic life, use, condition, and income potential. In the case of the Kmart property, the focus has shifted to the land value, which saw a significant increase in 2021 to $8.5 million, ensuring that taxes are still paid on the parcel despite the building itself being appraised at $0.
Ingles, a major player in the Asheville area with over 400 acres of mostly commercial property, also owns other locations with $0 building appraisals, such as the former Sears building at 1 South Tunnel Road and the former Stein Mart on Merrimon Avenue.
City Response
City of Asheville Principal Planner Will Palmquist shared that the new Ingles project at the former Kmart site is still undergoing review, indicating ongoing efforts to redevelop the property. The current state of the building reflects its years of neglect, with boarded-up windows and doors and visible signs of disrepair.
Assessment Office Assistant Director Eric Cregger further emphasized that the poor condition of the Kmart building renders it unsuitable for occupancy, leading to its designation as purely land for appraisal purposes.
Industry Perspective
Experts like Joe Minicozzi have raised concerns about the low building appraisals, suggesting that the true value of these properties may be higher than reflected. North Carolina state law mandates accurate and thorough property appraisals based on various factors, including location, commercial viability, and replacement cost.
While some vacant buildings in Asheville maintain higher building values, questions remain about the disparity in appraisals, especially considering the potential for repurposing these properties for new uses.
Conclusion
The tax appraisals of Ingles-owned former Kmart and Sears locations at $0 highlight the complex nature of commercial property evaluations and the challenges posed by aging and deteriorating buildings. As developments continue in Asheville, the fate of these properties remains uncertain, with discussions ongoing about their potential revitalization and future tax implications.
For more updates on Asheville’s real estate landscape and community developments, stay tuned for further insights into the evolving dynamics of property ownership and taxation in the region.
