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Twenty and 50 Park Plaza V. Board of Assessors of the City of Boston

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Twenty and 50 Park Plaza V. Board of Assessors of the City of Boston COMMONWEALTH OF MASSACHUSETTS APPELLATE TAX BOARD TWENTY & 50 PARK PLAZA1 v. BOARD OF ASSESSORS OF THE CITY OF BOSTON Docket Nos.: F291212 (FY 2007) F296897 (FY 2008) F303493 (FY 2009) F306975 (FY 2010) SAUNSTAR LAND CO., LLC v. BOARD OF ASSESSORS OF THE CITY OF BOSTON Docket Nos.: F291211 (FY 2007) F296896 (FY 2008) F302801 (FY 2009) Promulgated: June 12, 2013 These are appeals filed under the formal procedure, pursuant to G.L. c. 58A, § 7 and G.L. c. 59, §§ 64 and 65, from the refusal of the Board of Assessors of the City of Boston (the “appellee” or “assessors”) to abate taxes on certain real estate in the City of Boston (the “subject properties”) owned by and assessed to Twenty & 50 Park Plaza (“Park Plaza”) and Saunstar Land Co., LLC (“Saunstar Land Co.”) (collectively, the “appellants”) under G.L. c. 59, §§ 11 and 38, for fiscal years 2007 through 1 While the appellant is not identified as a limited liability company (“LLC”) on the petitions or any of the other pleadings, other documents in evidence identity it as “20 & 50 Park Plaza Complex, LLC,” and the Board so finds. ATB 2013-461 fiscal year 2010 for Park Plaza and fiscal years 2007 through 2009 for Saunstar Land Co. Commissioner Rose heard these appeals. Chairman Hammond and Commissioners Scharaffa, Mulhern, and Chmielinski joined him in the decisions for the appellant Park Plaza in docket numbers F291212, F296897, F303493, and F306975, the decision for appellant Saunstar Land Co. in docket number F302801 and the decisions for the appellee in docket numbers F291211 and F296896. These findings of fact and report are made pursuant to the Appellate Tax Board (the “Board”)’s own motion under G.L. c. 58A, § 13 and 831 CMR 1.32. The Board’s decisions are promulgated simultaneously herewith. Philip S. Olsen, Esq., Frank E. Ferruggia, Esq., and Daniel P. Zazzali, Esq. for the appellants. Anthony M. Ambriano, Esq. and Nicholas P. Ariniello, Esq. for the appellee. FINDINGS OF FACT AND REPORT I. Introduction and Jurisdiction On January 1, 2006, January 1, 2007, January 1, 2008, and January 1, 2009, Park Plaza was the assessed owner of ATB 2013-462 property located at 20 and 54 Park Plaza Street in Boston.2 This portion of the subject properties consists of an 80,285-square-foot parcel improved with the fifteen-story Boston Park Plaza Hotel and the adjoining fourteen-story Park Plaza Office Building (collectively, the “Boston Park Plaza Hotel and Office Building”). The subject hotel contains 941 guest rooms plus approximately 25,207 square feet of rentable retail and restaurant space, primarily on the street level.3 The subject hotel also includes approximately 48,000 square feet of meeting and function space on the second and fourth floors. The subject office building contains 259,532 square feet of rentable area, including 238,100 square feet of office space which contains a 17,130-square-foot Executive Center, 15,490 square feet of first-floor retail space, and 5,942 square feet of storage space in the basement.4 On January 1, 2006, January 1, 2007, and January 1, 2008, Saunstar Land Co. was the assessed owner of property located at 130 Columbus Avenue and 101 Arlington Street in 2 The way in Boston known as “Park Plaza” is referred to herein as “Park Plaza Street” to avoid confusion with other uses in these findings of the name Park Plaza. 3 The rentable retail and restaurant square-foot measurement is for fiscal year 2007 and includes the barbershop located in the basement. This measurement for the other three fiscal years at issue is 24,398 square feet. 4 These measurements are for fiscal year 2007. The measurements for the other three fiscal years at issue are set forth in the findings, infra, and may differ slightly from these measurements depending on the space. ATB 2013-463 Boston. The property consists of a 27,585-square-foot parcel improved with a multi-story Armory and Castle Head House building constructed between 1891 and 1897 and known as The Armory of the First Corps. of Cadets/Plaza Castle (the “Park Plaza Castle and Armory” or the “Armory”).5 The building contains an estimated 56,000 square feet of total gross floor area including the basement and 46,641 square feet of rentable area including the basement. The Castle Head House portion of the Armory (the “Head House”) at the corner of Columbus Avenue and Arlington Street is four-plus stories over a basement and includes 15,000 square feet of rentable area that, at all relevant times, was leased to S&W of Boston, LLC (“Smith & Wollensky”). The remainder of the building extending along Columbus Avenue consists primarily of a one-story high bay exhibition hall over a basement. For assessing purposes, the single parcel of land containing the Boston Park Plaza Hotel and Office Building is identified as parcel 05-00810-000. The pertinent assessment information for each of the fiscal years at issue is summarized in the below table. 5 As described by the assessors’ real estate valuation expert, the Park Plaza Castle and Armory is located “kitty-corner across the intersection of Arlington and Columbus Avenues” from the Boston Park Plaza Hotel and Office Building. ATB 2013-464 Fiscal Assessed Tax Rate ($) Year Component Value ($) per $1,000 Taxes ($) 2007 Subject Hotel 84,400,000 Subject Office Bldg. 41,967,000 Total 126,367,000 26.87 3,395,481.29 2008 Subject Hotel 100,440,500 Subject Office Bldg. 59,500,500 Total 159,941,000 25.92 4,145,670.72 2009 Subject Hotel 114,148,000 Subject Office Bldg. 50,242,000 Total 164,390,000 27.11 4,456,612.90 2010 Subject Hotel 115,421,000 Subject Office Bldg. 45,518,000 Total 160,939,000 29.38 4,728,387.82 The relevant jurisdictional information is summarized in the following table. FY 2007 FY 2008 FY 2009 FY 2010 Event Tax Bill Mailed 12/26/06 12/31/07 12/31/08 12/31/09 Application for Abatement Filed 02/01/07 02/01/08 02/02/09 02/01/10 Application for Abatement Denied 03/22/07 03/21/08 04/15/09 03/03/10 Petition Filed with Board 06/19/07 06/19/08 07/08/09 06/02/10 For all four of the fiscal years at issue, in accordance with G.L. c. 59, § 57C, Park Plaza timely paid the taxes due without incurring interest. For all four of the fiscal years at issue, in accordance with G.L. c. 59, § 59, and G.L. c. 4, § 9, Park Plaza timely filed its abatement applications with the assessors who denied them. Even though the abatement application for fiscal year 2009 was filed on Monday, February 2, 2009, the Board found and ruled that when the last day of a filing period falls on a Sunday, the filing is still considered timely if, as here, ATB 2013-465 it is made on the following business day.6 See Barrett v. Assessors of Needham, Mass. ATB Findings of Fact and Reports 2004-614, 615, n. 2 (“When the last day of a filing period falls on a Saturday, Sunday, or legal holiday, the filing is still considered timely if it is made on the following business day.”). For all four of the fiscal years at issue, in accordance with G.L. c. 59, §§ 64 and 65, Park Plaza seasonably appealed the denials of its abatement applications by filing Petitions Under Formal Procedure with the Board. For assessing purposes, the parcel of land containing the Armory is identified as parcel 05-01135-000. The pertinent assessment information for each of the fiscal years at issue is summarized in the following table. Fiscal Assessed Tax Rate ($) Year Component Value ($) per $1,000 Taxes ($) 2007 Total 4,117,500 26.87 110,637.22 2008 Land 1,414,000 Building 3,288,500 Total 4,702,500 25.92 121,888.80 2009 Total 5,394,500 27.11 146,244.90 The relevant jurisdictional information is summarized in the following table. 6 General Laws, c. 4, § 9 provides in pertinent part that “when the day, or last day, for the performance of any act . required by statute . falls on Sunday or a legal holiday, the act may, unless it is specifically authorized or required to be performed on Sunday or on a legal holiday, be performed on the next succeeding business day.” ATB 2013-466 Event FY 2007 FY 2008 FY 2009 Tax Bill Mailed 12/29/06 12/31/07 12/31/08 Application for Abatement Filed 02/01/07 02/01/08 02/02/09 Application for Abatement Denied 03/22/07 03/21/08 03/27/09 Petition Filed with Board 06/19/07 06/19/08 06/24/09 For all three of the fiscal years at issue, in accordance with G.L. c. 59, § 57C, Saunstar Land Co. timely paid the taxes due without incurring interest. For all three of the fiscal years at issue, in accordance with G.L. c. 59, § 59, Saunstar Land Co. timely filed its abatement applications with the assessors who denied them. As with Park Plaza’s fiscal year 2009 abatement application, Saunstar Land Co.’s abatement application for fiscal year 2009 was filed on Monday, February 2, 2009. Once again the Board found and ruled that, when the last day of a filing period falls on a Sunday, the filing is still considered timely if, as here, it is made on the following business day.7 For all three of the fiscal years at issue, in accordance with G.L.
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