SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 5, 1997
Capital Properties, Inc.
(Exact name of registrant as specified in its charter)
Rhode Island 0-3960 05-0386287
(State or other jurisdiction (Commission File (I.R.S. Employer
of incorporation) Number) Identification No.)
One Hospital Trust Plaza, Suite 920, Providence, Rhode Island 02903
(Address of principal executive offices) (Zip Code)
(401) 331-0100
(Registrant's telephone number, including area code)
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Item 5. Other Events
On August 5, 1997, the Company received from the City of Providence the
1997 real property tax bills for taxes assessed as of December 31, 1996 which
bills reflected an unexpected 200% increase ($42 million) in the assessed
valuation of a majority of the Company's parcels in the Capital Center area from
the prior assessed valuation. This results in an annual increase in property tax
expense of approximately $1.37 million. This increase was not part of a
city-wide valuation.
As described in Note 9 to the Company's consolidated financial statement
included in its 1996 Annual Report to shareholders, the Company has appealed
certain of its City of Providence 1995 and 1996 property tax assessments. To
date, these appeals are still pending.
The Company intends to vigorously challenge the increased tax assessments
on the grounds that the selective revaluation of the Company's properties is
illegal. The Company, upon consultation with counsel, believes that its position
with respect to the 1997 assessment will be sustained; however, such proceedings
can be protracted and costly, and there can be no assurance that the Company
will be successful in having the assessed valuation of the properties reduced.
The Company intends to accrue and pay property taxes based on the 1995 and
1996 assessed valuation while it challenges the 1997 increase. Failure to obtain
a reduction in the 1997 assessed valuation and a corresponding abatement of the
property taxes would have a material adverse effect on the Company's results of
operations.
This Report contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Such statements represent the Company's expectations or
beliefs concerning the 1997 tax assessment and the Company's challenge thereto.
The Company cautions that these statements involve risks and uncertainties
inherent in any proceeding involving a disputed tax assessment that could cause
actual results to differ materially from those set forth in the forward-looking
statements.
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SIGNATURES
Pursuant to the requirement of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Capital Properties, Inc.
(Registrant)
Date: August 18, 1997 By: /s/ Barbara J. Dreyer
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Barbara J. Dreyer,
President and Treasurer
