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MINUTES
CITY OF GRAND FORKS - BOARD OF EQUALIZATION
May 17, 2004

The city council of the city of Grand Forks, North Dakota was called to meet as the Board of Equalization in the city council chambers on Monday, May 17, 2004 at 7:00 p.m. as required by the North Dakota Century Code, with Mayor Brown presiding. Present at roll call were Council Members Brooks, Glassheim, Gershman, Christensen, Kerian, Kreun - 6; absent: none.

Mayor Brown announced that anyone wishing to speak to an item may do so by being recognized prior to a vote being taken on the matter, and advised that the meeting is being televised.

Council Member Brooks asked that items c) and h) be pulled for separate votes, and for item i) have a division of the question on each part. Council Member Kreun seconded the motion. Motion carried.

UPHOLD ASSESSOR'S VALUATION OF PROPERTY AT
815 DUKE DRIVE, UNIT #15, CHATEAU 300 CONDOMINIUM

The staff report from the assessor's office relating to the protest of assessor's 2004 value on the property at 815 Duke Drive, Unit #15, Chateau 300 Condominium, by Gary Lietzau, with committee's recommendation to uphold the assessor's 2004 value of $57,700.

It was moved by Council Member Brooks and seconded by Council Member Christensen that the recommendation be approved. Carried 6 votes affirmative.

UPHOLD ASSESSOR'S VALUATION OF PROPERTY AT
112 CHESTNUT STREET

The staff report from the assessor's office relating to protest of 2004 assessor's value on the property at 112 Chestnut Street by James L. Fish, with committee recommendation to uphold the 2004 value of $104,000.

It was moved by Council Member Brooks and seconded by Council Member Christensen that the recommendation be approved. Carried 6 votes affirmative.

REDUCE ASSESSOR'S VALUATION ON PROPERTY AT
5803 PINEHURST DRIVE

The staff report from the assessor's office relating to protest of 2004 assessor's value on the property located at 5803 Pinehurst Drive by Larry and Mary K. Askim-Lovseth, with committee recommendation to reduce the 2004 value from $353,600 to $347,800 as recommended by the assessor's office.

It was moved by Council Member Brooks and seconded by Council Member Christensen that the recommendation be approved. Carried 6 votes affirmative.

UPHOLD ASSESSOR'S VALUATION OF EASTERLY 180 FT.
OF NRLY. 1815.6 FT OF NW QUARTER OF SEC. 19-151-50

The staff report from the assessor's office relating to protest of assessor's 2004 value on the property described as the Easterly 180 feet of the Northerly 1,815.6 feet of the Northwest Quarter of Section 19-151-50 by Suellen Bateman, with committee recommendation to uphold the 2004 value of $5,000.00.

It was moved by Council Member Brooks and seconded by Council Member Christensen that the recommendation be approved. Carried 6 votes affirmative.

UPHOLD ASSESSOR'S VALUATION OF PROPERTY AT
1609 2ND AVENUE NORTH

The staff report from the assessor's office relating to protest of assessor's 2004 value on the property at 1609 2nd Avenue North by Dudley Benson, with committee recommendation to uphold the 2004 value of $101,900.

It was moved by Council Member Brooks and seconded by Council Member Christensen that the recommendation be approved. Carried 6 votes affirmative.

PROTEST WITHDRAWN BY OWNER ON PROPERTY AT
2215 FALLCREEK COURT

The staff report from the assessor's office relating to protest of assessor's 2004 value on the property at 2215 Fallcreek Court by Craig and Pamela Engel, with recommendation that protest withdraw by owner, no action taken.

REDUCE ASSESSOR'S VALUE ON PROPERTY AT 5753
CYPRESS POINT DRIVE

The staff report from the assessor's office relating to protest of 2004 value on the property located at 5753 Cypress Point Drive by Dean Kuznia, with committee recommendation to reduce the 2004 value from $267,900 to $262,000.

Council Member Brooks stated the finance/development committee had a disagreement with the assessor's valuation and asked Mr. Carsen if there were any additional comments. Mr. Carsen stated the protest had to do with the lot value and that this is one of the larger interior lots in that subdivision, 119 ft. of frontage, and his office has not given excess frontage to any lots in that neighborhood and may have to re-think that; that the committee looked at the purchase price on the lot and added to the purchase the special assessments and an inflation factor to get to that value, and that he has no problem with the number.

It was moved by Council Member Kerian and seconded by Council Member Christensen that the recommendation be approved. Carried 5 votes affirmative; Council Member Brooks voted against the motion.

COUNCIL MEMBER HAMERLIK ON TELECONFERENCE

REDUCE ASSESSOR'S VALUE ON PROPERTY AT 5101
GATEWAY DRIVE

The staff report from the assessor's office relating to protest of assessor's 2004 value on the property at 5101 Gateway Drive by Lloyd Holy, with committee recommendation to reduce the 2004 value from $964,100 to $905,400.

It was moved by Council Member Christensen and seconded by Council Member Kreun that the recommendation be approved. Carried 6 votes affirmative; Council Member Brooks voting against the motion.

REDUCE VALUE ON PORTIONS OF PROPERTY KNOWN
AS GRAND CITIES MALL

The staff report from the assessor's office relating to the protest of assessor's 2004 value on the property known as the Grand Cities Mall by Patrick Listermann for J. Herzog & Sons, Inc., with committee recommendation as follows:
Part 1 (Mall Stores): reduce the 2004 value from $2,5876,100 to $2,300.000
Part 2 (K-Mart & Hollywood Video): uphold the 2004 value of $2,945,200
Part 3 (Former Sears): reduce the 2004 value from $2,965,100 to $2,215,300 as recommended by the assessor's office.

Council Member Christensen asked to be recused from voting on this matter; and it was moved by Council Member Gershman and seconded by Council Member Glassheim. Motion carried.

Council Member Hamerlik reported that in reading the minutes the standby committee upheld the assessor's values on two parts and there was a change in one part by the standby committee, and asked if someone could briefly tell him why there was such a great variance in the difference between what the city assessor recommended and what the standby committee recommended - approx. $276,000.

The city auditor read the recommendations made by the standby committee.

Mr. Carsen reported that on Part 2 (K-Mart and Hollywood Video) the committee upheld the value; that on Part 3 (former Sears Store) they went along with his recommendation for a reduction of about $700,000+ and that on Part 1 (Mall Stores) which is the area between Sears and the K-Mart Store, his value was $2.5+ million, and their income approach indicated a value of about $2.1 million and he had some difficulty with those numbers but when the committee looked at everything and they spent 3 hours on this case and what the committee did was split between their indicated value and his indicated value.

Council Member Kreun stated that reps. from Grand Cities went through their approach and utilized different methods of determining value, the income approach and some of the replacement costs and Mr. Carsen used three different methods and both of them came out relatively close when take into consideration the percentage of numbers and differences; Mr. Carsen agreed with the committee that it was probably a slight difference, and committee then split the difference because both basically right - you could approach it either way and come up with the numbers, and Grand Cities was satisfied with that.

Council Member Kerian stated in the conversations and as they listened to the Mall representatives and as they discussed current vacancies, the rates at which they are renting and a number of those things, it had some credence with the committee and that for a short term that might be a more realistic approach and that certainly would be reviewed and that they would be more forthcoming with information to Mr. Carsen in the future so that he has some of that information upfront.

Council Member Hamerlik stated he didn't ask the question because he thought they were differing with the recommendation of Mr. Carsen, but asked the question because of the large amount of difference and since there are three approaches one takes and that you don't flip from one to the other to advantage or disadvantage of one party or the City and that is why he asked that particular question and was partially answered here that it was more negotiated than anything else. Council Member Kerian stated she wasn't sure that negotiated was the right word but was a finding sort of process they went through with Mr. Carsen present and the reps. of the Mall present and came to this conclusion. Council Member Hamerlik stated he was satisfied with the answer.

Council Member Brooks stated he thinks it is crucial to stay with one process and one group doing it unless find major flaws in the way you do all of them; it is definitely not a fine science, and that Mr. Carsen and his staff will come forward when somebody comes in and asks, and we have a number of instances where they have come forward and have brought changes forward when they see them.

It was moved by Council Member Kreun and seconded by Council Member Glassheim to approve the committee recommendation as presented. Carried 5 votes affirmative; Council Member Brooks voting against the motion; and Council Member Christensen recused.

CERTIFY ASSESSMENT TO COUNTY AUDITOR

It was moved by Council Member Gershman and seconded by Council Member Christensen that the tax rolls as presented by the city assessor and equalized by the Board of Equalization be and are hereby certified to the county auditor, Grand Forks County, North Dakota.

Council Member Hamerlik asked if there was a further appeal process for those who had protested. Mr. Carsen reported that any protest had to be in by April 13, that they were heard and today was final meeting for the City Board of Equalization; but the County Board meets June 1 and anybody in the city or county can actually protest their valuation at the County level as well. It was noted that anyone can appeal to the County even though they did not appeal to the City.

Upon roll call the following voted "aye": Council Members Brooks, Hamerlik, Glassheim, Gershman, Christensen, Kerian, Kreun - 7; voting "nay": none. Mayor Brown declared the motion carried and the assessments certified.

ADJOURN

It was moved by Council member Gershman and seconded by Council Member Kreun that we adjourn sine die. Carried 7 votes affirmative.

Respectfully submitted,



John M. Schmisek
City Auditor