- 27 -
B. Fair Market Rental Value of Remaining Properties
To show that the rents petitioner paid on the remaining
properties were fair market rents, petitioner offered the
testimony of its president and shareholder, Randall Dean Hunt,
and the opinions of Messrs. McIntosh and Vanderbundt. Respondent
offered no evidence to contradict petitioner’s position or the
testimony of its expert witnesses. At trial, respondent’s
expert, Mr. Harris, testified that he had appraised all six
properties. When the Court asked respondent how it was to
determine the fair market rental values of the remaining three
properties when respondent had not filed Mr. Harris’s appraisal
reports with respect to these properties, respondent’s counsel
replied:
Your Honor, to be perfectly honest with you,
respondent was prepared to concede that the other three
properties’ rental rates were reasonable.
However, upon receiving Mr. McIntosh’s reports, we
kind of concluded that perhaps looking at just Mr.
McIntosh’s reports, and Mr. Vanderbundt’s report, that
maybe they weren’t so reasonable. And that’s why we’re
not willing to concede that point at this point.
But I think Mr. Harris concluded that they were
reasonable, and we didn’t feel that there was any need
to submit his reports to the Court.
Respondent offered no evidence to suggest that the rents paid by
petitioner on the remaining three properties exceeded their fair
market rental values. Respondent asks us to infer that
petitioner must also have paid excess rents on the other three
Page: Previous 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 NextLast modified: May 25, 2011