Board of Equalization - April 9 and April 29, 2025 Minutes
2025 Board of Equalization
April 8, 2025
The Board of City Members met as the 2025 Board of Equalization at 7:30 o'clock a.m., Tuesday, April 8, 2025, in the City Commission Room at City Hall, Fargo, North Dakota, to consider the 2025 assessments of property in the City of Fargo for tax purposes.
Members present: Kolpack, Piepkorn, Turnberg, Mahoney.
Members absent: Strand.
Member Mahoney presiding.
Assessor’s Annual Report:
City Assessor Michael Splonskowski reviewed the 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. He stated that annually, on February 1st, property valuations are established based on the legally defined "true and full value," generally prohibiting incremental adjustments. He explained “real property” includes land, improvements, structures and buildings. He said notices of increase are mandated for properties increasing by both $3,000.00 and 10%. While aiming for true and full value, he said, the State Board of Equalization permits a 90-100% variance in sales ratio studies, assessed value divided by sales price and the median must be within this range.
At 7:34 o’clock a.m., Member Strand present.
Mr. Splonskowski said this year, commercial sales ratios were compliant post-reappraisal 96.4%, though office and apartment values were reduced 5% due to softening market trends (sales ratios ≥ 100%). He said residential sales ratios improved to 94.9%, suggesting prior commercial values may have been slightly high and residential values were also on the lower end. He stated the Assessor's Office adheres to International Association of Assessing Officers (IAAO) standards, demonstrating good uniformity and equalization in Coefficient of Dispersion and (COD) and price-related differential (PRD). He said a 5-year property review cycle is in place, with Areas 1 and 2 reviewed in the last and upcoming summers, respectively. He stated the overall real estate market is stable, lacking significant price increases or foreclosure rises, despite minor interest rate fluctuations. He noted the median single-family dwelling price increased and commercial sales decreased by 11% in 2024, indicating a slight market softening, while residential sales increased by 5%, with a 4% median price increase (compared to 0.5% the prior year). He said Fargo's market activity is tracked against a home price index of other cities for trend analysis. Residential and commercial reappraisal resulted in 6,100 increase notices and adjustments to 18,000 properties, he said, and a 36% property access rate was achieved for reviews. Fargo's total true and full value is $23 billion (4.75% increase), he said, with residential slightly exceeding commercial. Taxable value has grown by roughly $100 million every three years since 2014, he said, School District 1 accounts for 67% of Fargo's taxable value and the City's mill levy share is 19%. Discretionary exemptions have slightly decreased, while non-discretionary exemptions (religious schools, homestead credit) have increased, he said, and homestead credit application numbers are still in flux due to an extended deadline. Tax Increment Financing (TIF) values constitute 1.29% of the taxable base, he said, and potential legislative changes to homestead and disabled veteran credits were noted. Special assessment assistance programs exist at both State and City levels, he said, and assessment information is available at fargoparcels.com.
In response to a question from Member Piepkorn regarding the fluctuations in discretionary exemptions, particularly the decrease observed in the Payment in Lieu of Tax Exemptions (PILOTs), Renaissance Zone and daycare categories and the reasons behind the reduction in daycare exemptions and if fewer applications were received or expired, Mr. Splonskowski said the primary reasons for the decrease appears to be a lack of applications, potentially due to a lack of awareness and the fact that it is early in the year, leading to some applicants missing the established deadlines.
In response to a question from Member Piepkorn regarding the valuation for the PILOT project decreased from $57 million to $39 million, a reduction of approximately 30%, Mr. Splonskowski said one particular PILOT project's exemption is granted by the State. The recent change in ownership resulted in the new owners being unaware of the State application requirement, he said, and they are currently working with the State to rectify this. He said some PILOT exemptions have also expired. Member Piepkorn requested Mr. Splonskowski provide the precise figures for the valuation decline resulting from expired exemptions at the next meeting.
Individual Valuation Appeals:
The following people testified to appeal their property valuations:
Dana Woodruff - 746 Elm Street North, #8
Kay Malme - 746 Elm Street North, #4
Daniel Coombe - 6891 23rd Street South
Cindy Buttke - 2939 8th North, #1
Warren Akeley - 2121 43rd Street South
Paul Anderson - 2015 1st Avenue South and 2020 Main Avenue
Tami Norgard - 4115 58th Street South
Josh Smook - 5507 53rd Avenue South
Jeff Reinholz - 4716 7th Avenue North
Kyle Kennett - 4731 13th Avenue South and 3757 55th Avenue South
List of Unresolved Appeals Moved to Pending Status:
Member Kolpack moved that the list of unresolved appeals presented by list or in person be moved to a pending status.
Second by Strand. On call of the roll Members Kolpack, Strand, Turnberg, Piepkorn and Mahoney voted aye.
No Member being absent and none voting nay, the motion was declared carried.
2025 Valuations Approved:
Member Kolpack moved that the valuations of 2025 Assessment roll be approved.
Second by Strand. On call of the roll Members Kolpack, Strand, Piepkorn, Turnberg and Mahoney voted aye.
No Member being absent and none voting nay, the motion was declared carried.
Mr. Splonskowski emphasized that while the City-level appeal window has now closed, property owners still have the option to pursue appeals at the County level.
In response to a question from Member Stand asking about the cap on property taxes from the Legislature and if they are talking about caps on valuations or budget, Mayor Mahoney said this pertains to limitations on taxable property increases. The allowable new growth is 4.39%, and the market increase is 0.17%. The understanding is that a maximum increase of 3% would be permissible on that 0.17% market increase, not exceeding that threshold.
In response to a question from Member Strand asking if there is a tax cap on the rise of the property taxes on the legislative level and if there was a cap on the decrease of property taxes, Mayor Mahoney said no.
Member Piepkorn moved that the Board of Equalization reconvene at 7:30 o’clock a.m. on Tuesday, April 29, 2025 to allow the Assessor’s office an opportunity to review the appeals presented to date.
Second by Strand. On call of the roll Members Piepkorn, Strand, Kolpack, Turnberg and Mahoney voted aye.
No Member being absent and none voting nay, the motion was declared carried.
The time at adjournment was 8:12 o’clock a.m.
2025 Board of Equalization
Fargo, North Dakota
April 29, 2025
Agreeable with adjournment, the Board of City Members reconvened as the 2025 Board of Equalization at 7:30 o’clock a.m., Tuesday, April 29, 2025 in the City Commission Chambers at City Hall, Fargo, North Dakota, to consider the 2025 assessments of property in the City of Fargo for tax purposes.
Members present: Kolpack, Piepkorn, Strand, Turnberg, Mahoney.
Members absent: None.
Member Mahoney presiding.
City Assessor Mike Splonskowski said as a reminder, the Board has the authority to adjust property values as deemed reasonable to ensure uniform taxation. This year, he said, the Assessor’s Department received approximately 171 appeals, representing about 2.8% of the increase notices sent. Of these, 51% resulted in a reduction, he said, with an average decrease of about 9%. He said the Assessor’s Department was able to access the majority of properties; however, a few appellants denied access even after filing an appeal.
In response to a question from Member Piepkorn asking about Tax Increment Financing (TIF) Districts that have expired since the last meeting, Mr. Splonskowski said two TIFs have expired, the most significant being the Cityscapes building Downtown valued at $23 million and an apartment building valued at $4.5 million.
Mr. Splonskowski said there are 40 unresolved appeals and these are cases where the appellant received a value recommendation from the Assessor’s; however, did not agree. There are a few options for addressing these appeals, he said. The Board can review them individually, he said, and individual motions for each are provided or a group motion can be considered for all of them. He could address specific appeals individually, he said, if any Members have reviewed them and wish to do so or a combination of these approaches is also possible. He said there are two individuals today who want to speak about their appeals.
Individual Valuation Appeals:
Fargo Tire Service - 2020 Main Avenue and 2015 1st Avenue North:
Paul Anderson, representing Anderson Investment LLP, the owners of the properties leased by Fargo Tire Service, said he reiterates his protest against the significant property tax increase from last year to this year, which is unreasonable and he said ND Century Code prohibits unreasonable increases. Furthermore, he said, considering the City's previous presentation, which aimed for commercial properties to fall within the 90-100% assessment range, his property is already at 97% and he does not understand the rationale for this continued increase.
Mr. Splonskowski presented data showing the subject property’s assessed value per square foot is at the lower end compared to similar properties and recent sales. He said the recommended action is to retain the values for the 2025 tax year.
Member Turnberg said her partner works at Fargo Tire and asked if that relationship would necessitate her recusal from voting.
City Attorney Nancy Morris said based on the building’s ownership, Member Turnberg does not have to recuse from voting.
Member Piepkorn moved that the values of the Fargo Tire locations be retained as presented for the 2025 assessment.
Second by Strand. On call of the roll Members Piepkorn, Strand, Kolpack, Turnberg and Mahoney voted aye.
No Member being absent and none voting nay, the motion was declared carried.
Dakota Center, 51 Broadway, Centennial Square, 300 NP Avenue, Parking Lot at 42 5th Street North:
Jennifer Carruth, Property Tax Resources (via teleconference), said she represents the owners of these properties. Regarding the 51 Broadway property, she said it is currently only 46% leased and the net operating income has significantly declined over the past five years, notably 69% from 2023 to 2024. She said vacancy has consistently been above 25% for the last four years and market sale prices for office properties in Fargo have also declined by 12.1% as of year-end 2024. She stated this property is currently listed for short sale with lender involvement, and there is an offer of $6.5 million under consideration. She said a broker's opinion of value indicates a stabilized fair market value of $10.5 million. She said she disagrees with the Assessor's comparable sales and they lack relevance due to significant differences in property type, sale dates, off-market nature and owner-user status. Given the lack of suitable sales comparables, she stated, the Assessor's office should utilize a more nuanced method, such as the income approach, to more accurately reflect the current market value. An income approach would consider the property's potential income generation, she said, providing a more appropriate valuation in the absence of relevant sales data. This also applies to the Centennial Building, she said, and applying a cost to reach stabilization within an income approach is crucial to account for the expenses and time needed to achieve full occupancy, ensuring a more accurate valuation of the property's income potential. Regarding the Centennial Building, she said, it is 66% leased and the net operating income has also consistently declined over the past five years, with vacancy exceeding 30% for the same period. Market sale prices have declined, she said, and the Assessor's sales comparables for this property also have limitations. The first three are over three and a half years old, and some are mixed-use office/retail buildings, unlike the subject property. The comps include a 50% office and 50% retail building, a building that is retail/apartments, which is not comparable to a multi-tenant office building, and another is a restaurant building; therefore, she recommends the Assessor's office reconsider and utilize an income approach for the Centennial Building due to the lack of truly comparable sales.
James Haley, Deputy City Assessor, explained the assessment methodology for these properties and defended the current valuations based on comparable sales and assessment fairness within Downtown Fargo. He acknowledges the vacancy issues; however, he emphasized the equalization and the recommended action is to retain the values of all three properties for the 2025 tax year.
Member Piepkorn moved that the values of Dakota Center, Centennial Square and the parking lot be retained as presented for the 2025 assessment.
Second by Strand. On call of the roll Members Piepkorn, Strand, Kolpack, Turnberg and Mahoney voted aye.
No Member being absent and none voting nay, the motion was declared carried
In response to a question from Member Strand asking if commercial property valuations were decreased, Mr. Splonskowski confirmed a 5% decrease for all office spaces and apartments in 2025 due to lower sales data.
In response to a question from Member Strand asking how are property owners informed of valuation changes, Mr. Splonskowski said valuation notices are currently only sent for increases; however, this will change with new legislation. He said owners can also check valuations online.
In response to a question from Member Strand asking if this decrease was only for commercial properties or did it also include multi-use properties, Mr. Splonskowski said the decrease applied to office and apartment classifications.
In response to a question from Member Strand asking if valuation formulas are based on income, and if there are any circumstances where Assessor’s utilize income-based valuations instead of sales, Mr. Splonskowski said formulas are not income-based and Assessor’s currently does not use income-based valuations as the primary method due to insufficient reliable income data; however, it is used as support when available.
In response to a question from Member Strand asking if it is common practice Statewide to primarily use sales data rather than the income approach for apartment buildings, Mr. Splonskowski said most jurisdictions in North Dakota primarily use the sales comparison approach, with only a few using the income approach for specific property classes.
List of Unresolved Appeals Approved as Presented:
Member Piepkorn moved the values of the unresolved appeals be retained as presented.
Second by Strand. On call of the roll Members Piepkorn, Strand, Kolpack, Turnberg and Mahoney voted aye.
No Member being absent and none voting nay, the motion was declared carried.
List of Resolved Appeals: Adjust or Retain Values as Recommended:
Member Kolpack moved the list of resolved appeals be adjusted or retained as presented.
Second by Piepkorn. On call of the roll Members Kolpack, Piepkorn, Strand, Turnberg and Mahoney voted aye.
No Member being absent and none voting nay, the motion was declared carried.
Unresolved Appeals Approved and Forwarded to Cass County Board of Equalization:
Member Strand moved the list of unresolved appeals be approved and forwarded to the Cass County Board of Equalization.
Second by Kolpack. On call of the roll Members Kolpack, Piepkorn, Strand, Turnberg and Mahoney voted aye.
No Member being absent and none voting nay, the motion was declared carried.
Approve 2025 Assessment Roll Valuations as Equalized:
Member Kolpack moved the 2025 assessment roll valuations of property in the City of Fargo for tax purposes as prepared by the Assessment Department be approved as equalized and that the City Auditor's Office be directed to certify the assessments to the County.
Second by Piepkorn. On call of the roll Members Kolpack, Piepkorn, Strand, Turnberg and Mahoney voted aye.
No Member being absent and none voting nay, the motion was declared carried.
The time at adjournment was 8:04 o’clock a.m.