Appraiser on easements suspended

Swink man is third disciplined for alleged inflating of land values

Burt Hubbardand Jerd Smith, Rocky Mountain News

Published May 2, 2008 at 12:05 a.m.

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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

• May 2, 2008

  10:22 a.m.

  Suggest removal

  SockRayBlue writes:

  Fancy that! Another corrupt bureaucrat. Interesting how these people manage to hide beep within government. Too bad they can't use that energy in the private workforce. Probably did and got fired.

• May 2, 2008

  1 p.m.

  Suggest removal

  rightwingnut writes:

  "The emergency suspension of William Victor Milenski was necessary to protect the public, said Erin Toll, director of the state Division of Real Estate."

  Protect the public? A little extreme..Was this person ready to take out a school?

• May 2, 2008

  1:01 p.m.

  Suggest removal

  SockRayBlue writes:

  bropous

  Thanks for the correction. So what do you think motivated him? At first blush I think "profit". The almighty buck?

• May 2, 2008

  1:05 p.m.

  Suggest removal

  bookwerm writes:

  What they WILL do to this loser and the other fishy appraiser is to PART THEM OUT! Do you know how much a good lung, kidney, liver etc. goes for? Or eyes? By selling them piecemeal, they WILL help cover the losses in tax rev.

• May 8, 2008

  3:44 p.m.

  Suggest removal

  casandrathomas writes:

  I am appalled at the characterization that Mr. Milenski has done something wrong. I have known Bill Milenski for several years, have enlisted him to do appraisals for me on many occasions and have found him to be nothing but honorable. As a matter of fact, he is considered, and I have found him to be, one of the most conservative appraisers in the area.

  I am an accountant and have had a few clients ask me to look into the tax credits associated with the conservation easements. I'll tell you what I told them - this is a mess, open for too many interpretations and at some point the State is going to try and get out of their obligation of tax credits.

  Has anyone looked into this angle; maybe the State needs to negate these tax credits and the only way to do that is void the appraisals and the only way to do that is to suspend the appraisers license and question his integrity.

  I have always known Bill to be diligent as an appraiser and I consider him a friend. There is nothing that can be siad that would make me believe Bill acted with any malice. I hope this matter resolves itself and restores Bill's professional career. As for his personal reputation, I'm sure he knows his friends stand in full support of him and his family.

  CaSandra Thomas
  La Junta, Colorado

• June 15, 2008

  9:57 a.m.

  Suggest removal

  saveopenspace writes:

  Has anyone heard of the "Good Ole Boys"? These are the few appraisers that were aware of the Colorado tax credit incentives from its inception in 2000, long before the majority of Colorado residents had even heard of it. These "business men" had their clients convinced that they were an elite group who were the only ones who were qualified to "accurately" complete conservation easement appraisals. They were also charging anywhere from $25,000.00 to $50,000.00 for each appraisal!! By 2003, when Colorado statutes changed, increasing the amount of tax credits that could be earned, other appraisers (and land owners) had figured out that a general appraisers license, and complete knowledge of the tax credit program and conservation easement concept, was what was required to do these appraisals. When they began doing the appraisals, for much more reasonable prices, the "Good Ole Boys" didn't like it, and have been after them ever since. Essentially, they had always had the playground to themselves, and didn't want to share it.

  There are always going to be some bad apples in every barrell, but be aware that EVERY ONE of the "Good Ole Boys" have ALL had appraisals of theirs scrutinized under audit by the IRS on behalf of the Colorado Department of Revenue. They are just better at keeping that information out of the press!

  The Department of Regulatory Agency has some employees who are more concerned with making big headlines for themselves on their way up the political ladder, (bragging about their high dollar, designer shoes in the mean time!) than being fair and equitable in the way they investigate possible appraisal violations. In February, the head of DORA spoke before the CCLT convention and stated, not once but twice, that the "magic number" to reach in appraisals was $650,000.00. Everyone in the room knew it was a referal to the maximum amount of an easement appraisal recognized by the state, but that amount is $750,000.00. How does the head of DORA NOT KNOW THIS, and yet so diligently attacks appraisers?

  This witch hunt is going to do one thing - eventually cause the elimination of the protection of Open Space in Colorado!

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