The Salina Journal from Salina, Kansas • Page 3

The Salina Journal Saturday, September 16,1989 State official defends counties for reappraisal effort By MIKE SHIELDS Harris News Service TOPEKA George Donatello, Kansas director of reappraisal, said evaluations mailed last week to all county appraisers should not be misconstrued. Things are not as bad as some would have it. The letters take each county appraiser to task for local deficiencies in statewide reappraisal and offer new, seemingly abrupt, deadlines. But, Donatello said, the project has been completed on time and on budget. "There's been a large misunderstanding that there's been a great deal of failure and that's not true," Donatello said.

"The counties have done an incredible job. We do not have major problems. That simply is not the case." If Donatello sounds defensive, it's with good reason. Critics of reappraisal include influential legislators and members of the Kansas Board of Tax Appeals. The criticism may reflect the complaints of about 2,000 taxpayers lined up to protest even before tax bills go out Nov.

1. Donatello, who has statewide reappraisal experience in Alabama, Florida and Georgia, "There's been a misunderstanding that there's been a failure and that's not true." George Donatello reappraisal director said the uproar that inevitably accompanies reappraisal is louder here than any place he can remember. "The difference in this state is that classification and the first reappraisal in about 20 years were done at the same time. It's just been incredible. It's a no-win situation.

I do feel beat up most of the time." On Sept. 6 evaluation letters were mailed to county appraisers by the Revenue Department's Property Valuation Division, which Harper County Appraiser calls "our mother, our guiding hand." It was the first evaluation counties received after having their reappraisals certified by Donatello in December. Certifica- tions allowed counties to begin the 1989 tax billing process. i Most of the evaluation letters sounded tough. Of the 105 mailed, 99 opened with this paragraph or something similar: "The Division of Property Valuation is unable to finalize the evaluation of appraisal performance due to a data discrepancy which must first be resolved." Most of the letters offered at least two or three September deadlines for different areas of compliance.

Some found the letters offensive. "In retrospect, the tone of the letters could have been a little better and I apologize for the abrupt tone," Donatello said. "As far as the deadlines are concerned, we have always taken the position that if dates we impose are too harsh too short a lead time the county appraisers simply can write and ask for an extension and we would be happy to grant extensions." Perhaps more important than the tone of the evaluations are the numbers they hold. Property appraisal professionals communicate with statistics based on formulas that suggest the objectivity of cold, hard science. "Unless an appraiser does a good job, someone's really going to be hurt." Keith Farrar tax appeals board However, they admit that property appraisal can be subjective to the point of orneriness.

As an example, Lawrence King of Winfield owns grain elevators in several counties. He took a case to the board of tax appeals after widely differing valuations were placed on two of his elevators that were the same size and built the same year by the contractor. One was valued at $301,000 in Stafford County. The other, 12 miles away in Pratt County, was valued at $112,000. His local board of equalization said there was "insufficient data" to throw out the appraisals.

"If someone looks for the perfect job, forget it," Donatello said. "Appraisals are an opinion of value. Three experienced appraisers can look at the same property and come up with three different opinions." Recognizing the potential for variance and aided by computers, the industry has devised a formula called a "coefficient of dispersion." The coefficient incorporates variances and defines their limits. "The COD number becomes a red flag when it's outside the accepted norm, which is between 20 and 30," Donatello said. Based on that definition, red flags are waving in every county of Kansas.

Coefficients of dispersion of 100 and higher are easily found in the evaluations. High CODs could be evidence that statewide reappraisal was flawed and that many taxpayers will take it on the chin, ignorant of the appeal system that could correct a bad appraisal. "The worst off are people on fixed incomes who maybe don't understand the system," said Keith Farrar, tax appeals board chairman. "Unless an appraiser does a good job, someone's really going to be hurt. I'm afraid some old persons could actually lose their home." Citizens gather to honor POWs, MIAs 36 Kansans missing from Vietnam war By DAN HESS Staff Writer Veterans and others gathered at the Salina Veterans of Foreign Wars Post 1432 Friday to commemorate prisoners of war and those missing in action on National POW-MIAday.

Charlie Stephens, past VFW commander and chairman of the POW-MIA committee, said the day was a solemn, important occasion to pay tribute to those who did not return. "These American defenders left our schools, our shops and our farms to take up weapons against the foes," Stephens told the group of about 50 people who gathered. "They left their peacetime pursuits with confidence in their hearts and assurances upon their lips. "They were aware of the dangers before them, yet they responded without hesitancy to the call of duty." POW-MIA Day was the final day of POW-MIA week, which started Monday and ended Friday. After Stephens' opening remarks, veteran Jim Talley of Solomon read a roll call of all 36 Kansans still missing from the Vietnam war.

After he read the name of each individual, a member of the color guard saluted and responded, "Missing In Action, Sir." There are more than 8,000 people who were never accounted for from World War II and Korea. The latest count on POW-MIAs from Southeast Asia and Vietnam is 2,338. Several American Flags and POW-MIA flags were displayed during the 30-minute ceremony. A cage representing the plight of the prisoners of war was on display near the flags. The cage is designed to increase public awareness of the Americans still unaccounted for.

In addition to the ceremony, citizens were asked to turn a porch light on and drive with their headlights on all day Friday to honor the POWs and MIAs. Salina Mayor Joe Warner made brief remarks, urging the government to take action for a fullest possible accounting. "We cannot Warner said. "I'm proud of all the people who are here to remember." Stephens then read a letter submitted on behalf of all POWs and MIAs. It was to be signed by all those pushing for a full accounting.

The letters, signed by "The men you left behind" reads in part: Mark Schafer, Abilene, holds a company flag with a ROW flag flying in the foreground. "You have sent men to the moon and have brought them You have done great things in the name of America. In the name of America, you must bring us VFW chaplain Clarence Blakeley said a short prayer for the POW- MIAs, Then Stephens asked for a prayer for those who did not return. "Those of us who have been in active combat situations whereby we could very well have been in the category of POW-MIA or KIA (killed in action), give a special prayer," Stephens said. "And also remember those friends and buddies of ours who were not as fortunate as we were." Photoi by Scoll Wllllami An audience watches the ceremony at the Salina VFW post.

Racing Commission OKs Sunflower change KANSAS CITY, Kan. (AP) The state Racing Commission removed the last obstacle Friday to a change in the ownership structure of a Wichita -'development firm that has two pari-mutuel li" Senses. The commission approved the final financial documents necessary to allow Sunflower Racing Inc. to give more control to its millionaire partner, R.D. Hubbard of Fort Worth, Texas.

They also are designed to guarantee that charities, which by law are to benefit from racing, receive more money from track profits. The commission also discussed whether people who have been convicted of felons should be flowed to apply for entry-level jobs at tracks, gommissioners referred the matter to their legal staff for more study. The commission met Friday at the Woodlands Kennel Club, Sunflower's Kansas City, dog track. The track opened its doors Thursday night and is part of a $68 million complex with a horse track expected to open in May 1990. Sunflower proposed changing its management structure because of $12 million in cost overruns at the Kansas City track.

Sunflower also holds a license to build a dog track south of Pittsburg. The Kansas City complex originally was to cost $55.6 million, and the bank from which Sunflower obtained a loan for most of the project insisted that Hubbard put up the money to cover the cost overruns. Thus, Hubbard's share of ownership in Sunflower will go from 60 percent to 85 percent, a plan the commission approved two weeks ago. "That just cleans up all the documents," Hubbard said of the commission's actions. Under the Kansas Constitution, racing profits must go to charities through non-profit groups.

However, the non-profit organizations can hire for- profit organizations to build and run the tracks. In Kansas City, Sunflower is operating the track for The Racing Association of Kansas East of Kansas City. The documents approved Friday also change the management agreement between TRAK East and Sunflower. The original agreement guaranteed that TRAK East would receive at least $250,000 of racing profits in the track's first year and $500,000 a year by the track's sixth year. The new management agreement adds a provision that if the profits are $13 million or more a year, TRAK East gets 10 percent.

If the profits are $13 million or more for five years during any eight- year period, with profits of at least $11 million in the other years, TRAK East automatically receives 10 percent, no matter what the profits are. "It just seemed appropriate to increase the guarantee," said Sunflower's attorney, Robert Vancrum, who also is a House member from Overland Park. The commission raised the question last week of how to deal with felons who want occupational licenses for jobs such as jockeys, trainers, pari- mutuel clerks, janitors and cooks. State law prohibits convicted felons from working for non-profit racing groups. It also prohibits persons convicted of fraud-related felonies from working in top positions in companies that manage tracks or in any position related to racing.

However, the law only says that the commission may prevent felons from working in other jobs such as jockeys and trainers, who are employed by people outside the track. "The gray area is clear at the bottom of the employment chart," said Warran Wiebe, a commission attorney. ElDorado to make change in name By GORDON D. FIEDLER JR. Business Editor Pending approval by the Federal Bankruptcy Court in Topeka, El- Dorado Motor Corp.

will become Honorbuilt Industries Inc. The change of name is a portion of a two-part reorganization plan that the Minneapolis recreational vehicle manufacturer intends to file with the court on Monday. The reorganization plan also calls for settling ElDorado's outstanding debt in addition to the acquisition of ElDorado's assets by Honorbuilt. Officers of the new corporation are current managers of ElDorado or those who have some tie to the company. Gregory K.

Stewart, president and chief operating officer'of ElDorado, will be president of Honorbuilt. Robert L. Stewart, chairman and chief executive officer of ElDorado, will remain with Honorbuilt as an adviser. The name Honorbuilt was El- Dorado's name in the company's early days. Other Honorbuilt officers will include Michael D.

Wedel, ElDorado's vice president of marketing; Richard M. Muller, vice president of finance, and Dennis L. Shaw, El- Dorado's vice president of sales. Wedel will be Honorbuilt's chief executive officer, Muller will be the new company's finance officer and Shaw will be vice president of sales and marketing for Honorbuilt. K.

Mark Wedel, president of Town Country Chevrolet and Courtesy Ford, will serve on the board of Honorbuilt. Greg Stewart said dissolving the current name and shifting operations to a new corporation has some financial benefits that wouldn't be available under the ElDorado corporation. "A lot of fixed assets can be reevaluated downward to get a lower depreciation," Stewart said. "From a marketing standpoint, ElDorado has not been helped by the (bankruptcy) filing," he said. In March ElDorado filed Chapter 11 bankruptcy, which protects the company from creditors and gives the 29-year-old firm time to draft a reorganization plan.

Stewart said the plan to be presented Monday includes a proposal for Honorbuilt to acquire ElDorado's liabilities. In its bankruptcy petition, El- Dorado listed assets of nearly $12.7 million and liabilities of $10.6 million. The filing followed a record $5 million loss for fiscal year 1988. ElDorado scaled back its product line and is producing Class A mot- orhomes and Class mini- motorhomes. Bishop has little to say on sale of Marymount ByALANSTOLFUS Staff Writer A report that the Kansas Board of Regents might try to buy the Marymount College campus for $3 million drew little response from the man who has ultimate say over what happens to the property.

The Most Rev. George Fitzsimons, bishop of the Salina Catholic Diocese, said Friday it is too early to determine a price tag for the closed campus. Fitzsimons decided in January to close Marymount because of its poor financial condition and a projected shortage of students. On Thursday, regents officials revealed they might try to buy the campus for about $3 million, which is millions of dollars below its estimated market value of $9.6 million. Fitzsimons said he had not heard from the regents about a purchase price.

He had little to say about the $3 million figure for the campus, saying he did not know the details. Salina attorney Tom Kennedy, who is handling campus negotiations for the diocese, could not be reached Friday for comment. When Marymount was closed it had an operating debt of $1.2 million. Money from the sale of the campus would be used to retire that debt. Marymount owed money to the diocese, Salina banks and the Knights of Columbus.

Under a plan to merge engineering technology programs from Kansas College of Technology and Kansas State University, a new engineering technology college under the K-State name would be established at Marymount. To buy the Marymount campus, the regents would sell the Kansas Tech campus to the Salina Airport Authority. The Kansas Tech campus sits on 137 acres at the Airport Industrial Center and has a market value estimated at $10.5 million. Regents officials hope to use the money from the sale to buy the Marymount campus and pay as much of the renovation costs as possible. The Marymount renovation has been estimated to cost as much as $10 million, with $3 million of that for asbestos removal.

Food bank trying to give away government food The Emergency Aid Food Bank is distributing to families a three- month supply of government issued food in order to reduce its overstock of commodities. The food bank recently received large shipments of commodities, said Cheryl Isom, food bank administrator. Normally, the food bank distributes commodities to families in one-month supplies. For now, however, it will distribute commodities in three-month supplies. Isom said the food bank is trying to reach those families that are eligible for commodities but are not in the program.

To receive the food, a family of four can have a gross income of no more than $1,311 a month. A family of three can earn no more than $1,090 monthly, while a family of two can earn no more than $869 a month, and one person can earn no more than $648 a month. People applying to the program should bring proof of their monthly income, Isom said. Such proof would include paycheck stubs, Social and Rehabilitation Services documents, or deposit slips for Social Security checks. Commodities are distributed from 9 a.m.

to noon and 3 to 5 p.m. daily at the food bank, 410 W. Ash..