Committee Minutes
MINUTES
CITY OF GRAND FORKS - BOARD OF EQUALIZATION
May 20, 2002
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 20, 2002 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, Bjerke, Stevens, Hamerlik, Glassheim, Gershman, Lunak, Christensen, Klave, Kerian, Bakken (teleconference), Kreun, Martinson - 13; 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.
APPROVE REDUCTION IN VALUATION ON PROPERTIES
FOR WAL-MART STORE AND SAM'S CLUB
Mel Carsen, city assessor, reported that since last week he met with several council members, Kreun, Klave and Christensen, and reviewed their method of assessing this type of property and came to the conclusion that both in the Wal-Mart Store and Sam's Club, he had miscalculated or misstated the type of wall on two of the walls so there is a slight adjustment on both stores for that reason. He stated they use a cost approach that it's a national publication, Marshall Swift, that costs out buildings and replicates the cost of a new building quite close, and starts by listing several features of the building but a critical feature of the building is the occupancy of that building.
COUNCIL MEMBER BURKE REPORTED PRESENT
He stated he had classified Wal-Mart and Sam's both as discount stores, that there is a ranking which is a quality factor, the quality goes from low cost, average, good quality and a high quality - that he had ranked Wal-Mart at a higher ranking than the Sam's Store, thinking that would take care of the difference in quality of those two buildings. He stated on the Wal-Mart Store their pricing is essentially right, it should be a discount store, and council members concurred with them that was in essence correct, only to make a slight adjustment for the wall finish. He stated on the Sam's Store, the description for a discount warehouse store fits almost exactly for the Sam's Club Store, and it was the decision of all members at the meeting that they should price it that way, and that gives a significant reduction to Sam's Club because it was really priced wrong before and making that correction. He stated he had talked with Jeannie Allen since and she considered that, and that while reluctantly satisfied with the Sam's Club reduction, she felt that the Wal-Mart Store was still too high, that she faxed him some information this afternoon, which he had placed before the council members, and it only addresses the income approach which the members at the meeting found that the income approach is not applicable when it comes to this type of store; we have an insufficiency of rents, have insufficiency of indicators or capitalization rate; that they value all property like this by using the cost approach. He noted that the last page of the fax report is his information and compares some of the stores in the 32nd Avenue corridor and shows numbers they are proposing for the 2002 assessment. He stated that the current value of Wal-Mart is $6,018,200 and recommending reduction to $5,977,700, and on Sam's Club the current value is $6,981,300 and recommending it be reduced to $6,276,200.
It was moved by Council Member Brooks and seconded by Council Member Kerian to accept the reduction in taxes as recommended by the city assessor.
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Council Member Hamerlik stated that since they have met and made reductions what does that relate to in dollars in their taxes. Mr. Carsen stated that the reduction in tax would be something less than $17,000/year; that the taxes were scheduled to be $168,000 approx. and about 10%.
Mr. Carsen stated that when they reduced this his concern was that the most comparable store might be Menard's, that they looked at that and found that Menard's was very close to the new figure of Sam's Club.
Council Member Martinson stated that after doing some research on this himself, Marshall Swift is know nation-wide for the method and approach that they use, to use the income approach is if you are going to sell a business, and was correct in using the cost approach.
Upon call for the question and upon voice vote, the motion carried 14 votes affirmative.
APPROVE REDUCTION IN VALUATION OF PROPERTY
AT 4998 SOUTH PINES COURT
The staff report from the assessor's office relating to the protest of the assessor's 2002 value by Moine Gates, 4998 South Pines Court, with recommendation that the value be reduced from $176,900 to $166,500.
It was moved by Council Member Hamerlik and seconded by Council Member Gershman that the recommendation be approved. Carried 14 votes affirmative.
APPROVE REDUCTION IN VALUATION OF PROPERTY
AT 4994 SOUTH PINES COURT
The staff report from the assessor's office relating to the protest of the assessor's 202 value by W. Gene Theroux, 4994 South Pines Court, with recommendation that the value be reduced from $180,100 to $169,100.
It was moved by Council Member Brooks and seconded by Council Member Hamerlik that this recommendation be approved. Carried 14 votes affirmative.
APPPROVE RECUCTION IN VALUE OF PROPERTY AT
5056 SOUTH PINES COURT
The staff report from the assessor's office relating to the protest of the assessor's 2002 value by Harvey Gabbert, 5056 South Pines Court, with recommendation that the value be reduced from $177,600 to $166,700.
It was moved by Council Member Brooks and seconded by Council Member Hamerlik that this recommendation be approved. Carried 14 votes affirmative.
UPHOLD ASSESSOR'S VALUATION OF PROPERTY AT
3000 SOUTH 38TH STREET
The staff report from the assessor's office relating to the protest of 2002 assessor's value by Paul
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Eggebraaten, All Reasons Self Storage, 3000 South 38th Street, with recommendation to uphold the
assessor's valuation.
It was moved by Council Member Martinson and seconded by Council Member Brooks that this recommendation be approved. Carried 14 votes affirmative.
UPHOLD ASSESSOR'S VALUATION OF PROPERTY AT
322 DeMERS AVENUE
The staff report from the assessor's office relating to the protest of 2002 assessor's value by James Hawley, Ogier Properties, L.L.C., 322 DeMers Avenue, with recommendation to uphold value as set by the assessor's office, however, have city council possibly reconsider terms of T.I.F. exemption.
It was moved by Council Member Gershman and seconded by Council Member Kerian that this recommendation be approved.
Council Member Gershman stated he would like to note for the administrative coordinator and for the assessor that within the future that we not forget to consider the extension for one year. Council Member Hamerlik stated he intended to ask for referral of this matter to the next committee of the whole agenda.
Upon call for the question and upon voice vote the motion carried 14 votes affirmative.
CERTIFY ASSESSMENT TO COUNTY AUDITOR
It was moved by Council Member Brooks and seconded by Council Member Lunak that the tax rolls as presented by the city assessor and as equalized by the Board of Equalization be and are hereby certified to the county auditor, Grand Forks County, North Dakota. Upon roll call the following voted "aye": Council Members Brooks, Bjerke, Stevens, Hamerlik, Burke, Glassheim, Gershman, Lunak, Christensen, Klave, Kerian, Bakken, Kreun, Martinson - 14; voting "nay": none. Mayor Brown declared the motion carried and the assessments certified.
ADJOURN
It was moved by Council Member Hamerlik and seconded by Council Member Brooks that we adjourn sine die. Carried 14 votes affirmative.
Respectfully submitted,
Saroj Jerath
Deputy City Auditor