Posted by Cochise on May 12, 2008 at 16:32:23:
In Reply to: Wild Bill Milenski, William Milenski MAI?, AI posted by Cochise on May 05, 2008 at 10:11:26:
Appraiser on easements suspended
Swink man is third disciplined for alleged inflating of land values
Burt Hubbardand Jerd Smith, Rocky Mountain News
Friday, May 2, 2008
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Email this Print this Comments Change text size Subscribe to print edition iPod friendly Share this site A third real estate appraiser has been suspended by the Colorado Board of Real Estate Appraisers for allegedly inflating the value of properties involved in a program designed to protect scenic lands from development.
The emergency suspension of William Victor Milenski was necessary to protect the public, said Erin Toll, director of the state Division of Real Estate.
Milenski, of Swink, conducted appraisals in transactions involving two nonprofit land trusts whose dealings were detailed in a series in the Rocky this year, Greenlands Reserve Land Trust and Colorado Natural Land Trust.
The trusts hold conservation easements that generated millions of dollars in tax credits. Toll said Milenski was involved in numerous appraisals that involved transactions of both entities.
"We didn't look at every single one because there were so many," she said. "But we saw a few and saw how egregious the errors were. The problems were gross overvaluations of land."
Milenski declined comment Thursday, saying he had not seen the accusations against him. Paul Geer, director of Colorado Natural Land Trust, referred questions to his attorney.
"But let me set you straight on this," Geer said. "He does no appraisals for the land trust. He works for the landowner."
Howard Hallman, director of Greenlands Reserve, was not available for comment, but Greenlands spokeswoman Kim Podobnik said the trust did not deal with the appraiser on the easements.
"The land trust has no relationship with the appraisers," Podobnik said. "It is the property owners that hire the appraisers. . . . The role of the land trust is to maintain conservation easements and make sure the land is protected."
At issue is a nationally recognized Colorado program that provides lucrative state tax credits to landowners who agree not to develop their environmentally important lands. The tax credits they earn can be sold for cash. Nonprofit land trusts must accept the easements and sign off on any tax credits claimed.
The dollar amount of the credits is based largely on the appraisal of the land.
The Rocky's investigation found that millions of dollars in tax credits had been claimed on lands with apparently inflated appraised values.
The latest suspension comes one day after Colorado lawmakers approved an extensive reform package designed to rescue the conservation tax credit program. It includes reviews of appraisals by the state and certification of land trusts.
The state has granted about $274 million in tax credits since 2000, a number of which have been deemed to have zero value. Toll said her division is turning over its investigation of appraisers to the attorney general's office.
"We are working with the appropriate law enforcement bodies to make sure this matter is covered," she said.
smithj@RockyMountainNews.com or 303-954-5474