Sun Valley Resort, which was recently assessed at $222 million, is actually worth $139 million, according to Idaho Tax Commission Manager Scott Irwin, who reviewed the resort company's appeal and rendered a decision Monday at the Old Blaine County Courthouse in Hailey.
In a strange twist, Sun Valley Co.'s appeal, which was one of 423 launched in Blaine County after property assessments were released last month, used the sale of Mammoth Mountain to support its case.
Mammoth Mountain, which is the leading four-season resort in California and the second most frequented resort in the country, sold for $365 million in October 2005.
"In a recent hearing before the Blaine County Commission and in the news media, the sale of Mammoth Mountain Ski Area has been mentioned as a comparison for the valuation of the Sun Valley Resort," states a copy of Sun Valley Co.'s appeal.
During that hearing, which was held June 27 in response to concerns over Blaine County's ballooning property taxes—assessments rose 18 percent in 2006 and 21 percent in 2005—Sun Valley resident Matt Colesworthy hammered County Assessor Valdi Pace over her estimated value of Sun Valley Resort.
Colesworthy believes Sun Valley is not paying its fair share of taxes and its value is actually on par with Mammoth Mountain's. The low assessment will burden citizens to subsidize the resort, he said in June.
Pace, who received just 13 percent of all real estate transactions in the county last year—making her job increasingly difficult—disagreed.
So did Sun Valley Co., which noted that Mammoth Mountain draws more than 1.5 million skier visits a year, which is "at least 3.8 times the average number of skier visits to Sun Valley Resort for the last four years."
Sun Valley skier visits in the 2005-2006 season totaled 420,517.
"Based solely on a comparison of the relative number of skier visits, the Mammoth Mountain sale suggests a value for Sun Valley Resort not to exceed $96 million ($365 million divided by 3.8)," the appeal states. "Clearly, there are significant adjustments that need to be made when comparing the value of Sun Valley Resort to Mammoth Mountain."
Pace said Irwin reached his decision by examining the income producing components of Sun Valley Resort—assessed at $107 million—and non-income commercial and residential properties, which were valued at $39 million.
As a result, Sun Valley Co. will pay Blaine County more than $635,000 in taxes this year.
Prior to this year, the Sun Valley Co. was usually assessed piecemeal, so only a certain fraction of the resort, like the River Run area, was valued each year.
"We did everything this year," Pace said. She added that Sun Valley Co. will continue to be assessed completely every year "for as long as I'm in office."
Pace is in the final year of her second term and is running unopposed for another four-year term.
Along with several local leaders, including Rep. Wendy Jaquet, D-Ketchum, Pace is an advocate of sales price disclosure.
"It's been very difficult," Pace said. "(Disclosure) would give us more information to do a better job, and I believe it would help with better fairness and equity throughout the valley."
Hearings on the assessment appeals, known as the Board of Equalization, have been extended to July 22.
Sun Valley Resort, including the Sun Valley Lodge, above, was recently assessed at $222 million. It is now valued at $139 million following a successful appeal. Photo by Willy Cook
