Board of Equalization - April 11 and May 15, 2017

The Board of City Commissioners met as the 2017 Board of Equalization at 7:30 o'clock a.m., Tuesday, April 11, 2017 in the City Commission Room at City Hall, Fargo, North Dakota, to consider the 2017 assessments of property in the City of Fargo for tax purposes.
Members present: Gehrig, Strand, Mahoney.
Members absent: Grindberg and Piepkorn.
Member Mahoney presiding.
2017 Property Tax Assessments:
City Assessor Ben Hushka reviewed the 2016 Annual Report of the Fargo Assessment Department, as well as the laws relating to the duties of the Assessor’s Office and the Board of Equalization. Mr. Hushka said the 2017 Projected Net Taxable Value is $527,451,054.00, which is a 7.8% increase from 2016. He said 4.9% of that is new growth. Mr. Hushka said roughly 85% of the properties in the City received some sort of adjustment this year. He said property values are still going up in the City and the median sale price of a single family home is up about 9% from 2016 thus far in 2017; however, they are seeing a bit of a leveling off in the City. He said one thing to mention is that during the reappraisal efforts, more and more staff is finding residents who are not allowing Assessors into their properties, which causes staff to make assumptions about their properties.
Perry Smithberg, 4812 54th Street South:
Mr. Smithberg said last December he received a notice that his property value would be increased from $250,000.00 to $279,000.00. He said he contacted the Assessor’s office last year and told them that he would be appealing that increase and on the 4th of January an appraiser was sent to his residence for a reappraisal and he was told that his property value would remain the same. Then, he said, about a month ago he received another letter stating that his property value would be increasing again, which equates to about a 25% increase over the past two years.
Mr. Hushka said his office did take a look at Mr. Smithberg’s home and it is their intent to reduce this year’s value back to last year’s value of $279,500.00 and Mr. Smithberg will also likely be filing a Tax Abatement for 2016.
JDC Development LLC, 4951 Amber Valley Parkway South; Gamma Fargo LLC, 4837 Amber Valley Parkway South:
Katrina Lang, representing JDC Development LLC, said she would like to appeal 4951 Amber Valley Parkway South, which is adjacent to what people are familiar with as the PRACS building. She said the assessed value went from $965,000.00 in 2016 up to a proposed $1.7 million in 2017. In the summer of 2016, she said, JDC had an appraisal done and the appraised value was below the 2016 assessed value. She said they have evaluated the comps given by the Assessor’s Office in comparison to this property, which were all retail properties. She said this property is off the beaten path, is office space only and does not support the values the Assessor’s Office found. She said she would also like to appeal the assessed value and would ask the value for 2017 remain at the 2016 level.
Mr. Hushka said the write up he is providing is for both JDC Development properties. He said the appraisal Ms. Lang is referring to was only received in partial form. He said the bottom line is the Assessor’s Office evaluates the total property and having a land lease does not change how the property is treated. He said his office feels they have justification for the assessed value given to the properties and would recommend the values be retained.
Ms. Lang said she only sent the pertinent information from the appraisal. She said this is commercial office space and will never be a high traffic retail space that can command those higher values.
Ryan Schmoll, 2181 61st Avenue South:
Mr. Schmoll said he received a letter stating his assessment would be increasing $67,000.00. He said he is a new homeowner and had no idea this increase would be coming. He said he is wondering how the Assessor’s Office arrived at the $207,000.00 due to the fact that when his bank did the appraisal in February when they bought the home it was assessed at $195,000.00.
In response to a question from Mr. Schmoll as to whether or not unpaid specials are a factor in determining property values, Mr. Hushka said when his office analyzes sales the total obligation for the property is looked at, which includes special assessments.
Member Gehrig moved the current value on the property at 2181 61st Avenue South be reduced from $207,000.00 to $195,000.00 for the 2017 assessment.
Second by Strand.
Mr. Hushka said this property is not on the recheck list and he would recommend the Assessor’s Office work with Mr. Schmoll to review the value and bring that recommendation back to this Board.
Member Strand withdrew his motion.
Jerald Desotel, 2626 Whispering Creek Circle South:
Mr. Desotel said he is concerned about the increase in 2016 and 2017. He said he was told all the properties in his development were going to be reassessed. He said his assessment, over the last two years, has gone up 29% or $71,100.00.
Mr. Hushka said Mr. Desotel is on the list of 145 properties his office has not gotten to yet; however, they will be contacting him.
Virgil Schultz, 3325 45th Avenue South:
Mr. Schultz said he purchased his home a couple of years ago for $197,000.00. He said last August they came in and re-evaluated the home to $224,000.00 and a week ago he received another letter stating the home would be assessed at $258,600.00. He said he feels the evaluation should be at or very close to what people can afford. He said he feels Fargo is moving far too fast in the wrong direction.
Member Strand moved the Board of Equalization adjourn to allow the Assessor’s Office an opportunity to review the appeals presented to date and that the Board reconvene the second week of May.
Second by Gehrig. All Members present voted aye and the motion was declared carried.
The time at adjournment was 8:47 o’clock a.m.

May 15, 2017
Agreeable with adjournment, the Board of City Commissioners reconvened as the 2017 Board of Equalization at 7:30 o'clock a.m., Monday, May 15, 2017, in the City Commission Room at City Hall, Fargo, North Dakota, to consider the 2017 assessments of property in the City of Fargo for tax purposes.
Members present: Gehrig, Grindberg, Piepkorn, Strand, Mahoney.
Members absent: None.
Member Mahoney presiding.
City Assessor Ben Hushka stated his office has had an opportunity to review just over 200 properties, but there are an additional 20 properties they have not reviewed yet. The ones that have not been reviewed yet can appeal to the County, he said.
Member Piepkorn moved the recommended value changes on List 1 be approved as presented.
Second by Grindberg. On call of the roll Members Piepkorn, Grindberg, Gehrig, Strand and Mahoney voted aye.
No Member being absent and none voting nay, the motion was declared carried.
Member Grindberg moved the recommended value changes on List 2 be approved as presented.
Second by Strand. On call of the roll Members Grindberg, Strand, Piepkorn, Gehrig and Mahoney voted aye.
No Member being absent and none voting nay, the motion was declared carried.
List of Review Appraisals to be Forwarded to the County Board of Equalization:
Mr. Hushka stated there is a list of about 20 properties his office is still working with and recommended the list be received and forwarded to the County Board of Equalization for consideration.
Member Strand moved the list of properties, List 3, submitted by the City Assessor’s Office be received and forwarded to the County Board of Equalization for consideration.
Second by Grindberg. On call of the roll Members Strand, Grindberg, Piepkorn, Gehrig and Mahoney voted aye.
No Member being absent and none voting nay, the motion was declared carried.
Member Grindberg moved the 2017 assessments of property in the City of Fargo for tax purposes as prepared by the Assessment Department by approved and that the City Auditor's Office be directed to certify the 2017 assessments to the County.
Second by Gehrig. On call of the roll Members Grindberg, Gehrig, Piepkorn, Strand and Mahoney voted aye.
No Member being absent and none voting nay, the motion was declared carried.
Member Grindberg moved the 2017 Board of Equalization adjourn.
Second by Piepkorn. All Members voted aye and the motion was declared carried.
The time at adjournment was 7:43 o’clock a.m.List of Review Appraisals to be Forwarded to the County