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The city council of the city of Grand Forks, ND was called to meet as the Board of Equalization in the council chambers on Monday, May 17, 2010 at 5:30 p.m. with Mayor Brown presiding. Present at roll call were Council Members Bjerke, Glassheim, Gershman, Christensen, Bakken, Kreun - 6; absent: Council Members McNamara - 1.

Russ Melland, on behalf of Grand Forks Homes representing low income housing projects, stated prior to tonight's meeting they handed out some materials to the members of the council and city attorney relative to public policies and their update on the Bismarck properties and an affidavit by service coordinator throughout the project. That he understands that their application will be forwarded on to another meeting.

Terry Hanson, Grand Forks Housing Authority, stated that this will be brought up again on Wednesday night before the finance/development committee but this is an opportunity to talk to all members of the council and to ask you to read six documents before you come to that meeting to make final decision on this matter; that he had provided you the following documents: North Dakota Constitution, Article 10, Section 5; the North Dakota Century Code, Section 57-02-08(8); the letter opinion 2003 L16 by Attorney General Wayne Stenehjem dated March 13, 2003; and also the ND Supreme Court cases: Evangelical Lutheran Good Samaritan Society vs. Ramsey County; Riverview Place, Inc. vs. Cass County; and Young Men's Christian Association of NDSU vs. Cass County.

CONSIDERATION OF PROTEST OF ASSESSOR'S VALUES

Mel Carsen, city assessor, reported that items a) through g) were recommended for approval by the finance/development committee and that he would concur with those recommendations to uphold the assessor's value.

a) Wal-Mart Store, 2551 32nd Avenue South
b) Sam's Club, 2501 32nd Avenue South
Mr. Carsen reported their representative, Fred Bunch, senior tax rep. for Wal-Mart Stores, was sent information re. comparison report and in final analysis Mr. Bunch said he would accept the values for this year, but told Mr. Bunch that in his opinion we were low on both these stores and would review that for next year.

c) Settle Inn Motel, 1211 North 47th Street
d) Guesthouse Motel, 710 1st Avenue North
Mr. Carsen reported these properties were represented by Mr. Lee Neuschaefer, an independent tax rep. who had put together limited information on those two motels, that he felt the information wasn't very substantial but in the process found out that there was an independent appraisal being made on both properties by a firm out of Minneapolis, those appraisals are not complete but should wait for those appraisals, that they can still go to the County in June and if miss that can still file an application for abatement.

e) Menard's Store, 3550 32nd Avenue South
f) Menard's Strip Mall, 3750 32nd Avenue South
Mr. Carsen reported these properties were represented by Nick Hunter, an independent tax rep., that he sent information to him along with discussions, that he felt that the value for the Store was all right, but felt that the Strip Mall because of the high vacancy (almost 50% vacancy) would like to see a reduction, but informed him that we are already reducing the value because of comparison with other malls that also has high vacancies and both of those have a much lower value, even adjusting for the space that is unfinished, than malls that are all filled up, and thinks our values are right.

g) Slumberland Furniture Store, 1449 32nd Avenue South
Mr. Carsen reported that they had three sales of similar buildings to Slumberland that were sold in Grand Forks in 2009, two of those can share the sale price but not the location because they are guarded sales but very convincing that we are not high on that store and after received that information he e-mailed them that they would drop the appeal.

Mayor Brown opened the public hearing, there were no comments and the hearing was closed.

Council Member Christensen moved approval of the recommendations to uphold the city assessor's values for these properties, seconded by Council Member Gershman. Upon call for the question and upon voice vote, the motion carried 6 votes affirmative.

h) On behalf of owners of federally subsidized housing projects for low income, elderly or disabled residences, and Terzetto Village properties.
Mr. Carsen reported that this project represented by Mr. Melland, the committee wanted Mr. Melland and Mr. Hanson to furnish additional information, and believes they have done that; and that he and Mr. Warcup were to respond to that information by this coming Wednesday when finance/development meets at 5:00 p.m. and that the final Board of Equalization is to be held the following Wednesday, May 26.

It was moved by Council Member Glassheim and seconded by Council Member Bakken to refer item h) to the finance/development committee on May 19, 2010 at 5:00 p.m. Carried 6 votes affirmative.

Council Member Glassheim asked if Mr. Melland could provide some approximation of how much of the budget goes for the service projects or how much is spent on these additional services beyond the lodging.

Council Member Gershman stated for the Wednesday meeting he would like see information that the associations include when making an application to the federal government relating to expenses for property tax because if requesting the federal government to pay the property tax and they do, then you are already being reimbursed for the property tax. He also stated he would like to see if that is or isn't the case and that if you get a tax abatement, what would you do with the money.

RECESS

It was moved by Council Member Bakken and seconded by Council Member Gershman that we recess until Wednesday, May 26, 2010 at 5:00 p.m. Carried 6 votes affirmative.

Respectfully submitted,


Saroj Jerath, City Auditor