Board of Equalization - April 11 and May 9, 2023 Minutes

April 11, 2023
The Board of City Commissioners met as the 2023 Board of Equalization at 7:30 o'clock a.m., Tuesday, April 11, 2022 in the City Commission Chambers at City Hall, Fargo, North Dakota, to consider the 2023 assessments of property in the City of Fargo for tax purposes.
Members present: Kolpack, Piepkorn, Preston, Strand.
Members absent: Mahoney.
Member Preston presiding.
ASSESSOR’S YEAR END REPORT
City Assessor Mike Splonskowski shared a presentation reviewing the 2023 Annual Report. He outlined the laws that govern the Assessor’s office, statutory duties of the Board of Equalization, valuation definitions, legal requirements, reappraisal timeline, professional standards, challenges, sales ratios and trends, exemptions and TIFs. He showed the 5-year annual reappraisal map and said area number four was reappraised this summer and next year area number five will be reappraised.
Member Mahoney present at 7:34 a.m..
Mr. Splonskowski said the real estate market is strong with no significant increase in foreclosures. There were 177 commercial sales and 2,237 residential sales, 19.7% less than 2021, he said; however, the median sale price of a single-family home rose 12.6%. With the strong market, he said, property values were adjusted for market on 24,000 properties, almost 2/3 of the properties in Fargo. Overall appraised value is at $20.8 billion, he said, up 11%, with total appraised value for residential at 40.16%, commercial 40.98% and discretionary exemptions making up the balance. He said projected taxable value is $803,293,853.00 with a total increase of 12.3%, making 1 mill approximately $803,000.00. He said historically the average taxable value has increased 5.9%. He shared a list of the TIFs (Tax Increment Financing), which is significantly higher in 2023 and outlined other credits such as Homestead, Disabled Veterans, Homestead Credit for Special Assessments and the City of Fargo Special Assessments Assistance Program.
INDIVIDUAL VALUATION APPEALS
Mr. Splonskowski said a reconvene is typically done in three weeks to a month following the first meeting and most often the certification of values is done at the second meeting.
The following people testified to appeal the valuations assigned to their property:
Michael Reiten, 3677 Cordova Loop South.
Prakash Mathew, 1714 9th Street South.
Joel Fremstad, 4026 Copperfield Court.
Keith Burck, 2302 35th Avenue South.
David Camrud, 1909 Rose Creek Drive South.
Timothy Nasheim, 6622 Crofton Lane South.
Lynn Harrie, 3326 11th Street South.

Gabrielle Wynn (online), representing 1646 37th Street, 4300 20th Avenue South and 4014 17th Avenue South.
Mike Vipond, owner of several multi-family properties.
Mr. Splonskowski said there are about 300 appeals to deal with, many more than last year. He suggests reconvening in four weeks and any appeals they are not able to get to by that time will go on to the Cass County Board of Equalization.
Member Mahoney said with evaluations jumping 12%, it would be expected that a good number of people would appeal.
Member Mahoney stated the Board of Equalization will reconvene at 7:30 o’clock a.m. on Tuesday, May 9, 2023 to allow the Assessor’s Office an opportunity to review the appeals presented to date.
The time at adjournment was 8:41 o’clock a.m.

May 9, 2023
Agreeable with adjournment, the Board of City Commissioners reconvened as the 2023 Board of Equalization at 7:30 o’clock a.m., Tuesday, May 9, 2023 in the City Commission Chambers at City Hall, Fargo, North Dakota, to consider the 2023 assessments of property in the City of Fargo for tax purposes.
Members present: Preston, Piepkorn, Kolpack, Strand, Mahoney.
Members absent: None.
Member Mahoney. presiding.
City Assessor Mike Splonskowski said the meeting is to review and take action on the appeals of the outstanding valuations this year and to finalize and certify the 2023 assessments. The Board may make whatever adjustments it deems necessary to insure the assessment is equalized and uniform. He said there are about 31 that will be forwarded to the county that they were not able to get to due to running out of time.
Individual Valuation Appeals
4300 20th Avenue South – Staybridge Suites – Diamond Hospitality Partners, LLC.
Member Piepkorn moved the value of the property located at 4300 20th Avenue South be retained at the current value of $4,540,000.00 for the 2023 tax year.
Second by Kolpack. On call of the roll Members Piepkorn, Kolpack, Preston, Strand and Mahoney voted aye.
No Member being absent and none voting nay, the motion was declared carried.
1635 42nd Street South – Delta Hotel – Paramount Hotel LTD Partnership.
Member Piepkorn moved the value of the property located at 1635 42nd Street South be retained at the current value of $16,756,000.00 for the 2023 tax year.
Second by Kolpack. On call of the roll Members Piepkorn, Kolpack, Preston, Strand and Mahoney voted aye.
No Member being absent and none voting nay, the motion was declared carried.
4014 17th Avenue South – Candlewood Suites – Emerald Hospitality LLC.
Member Piepkorn moved the value of the property located at 4014 17th Avenue South be retained at the current value of $5,407,000.00 for the 2023 tax year.
Second by Kolpack. On call of the roll Members Piepkorn, Kolpack, Preston, Strand and Mahoney voted aye.
No Member being absent and none voting nay, the motion was declared carried.
6622 Crofton Lane South - Nasheim
Tim Nasheim said he disputes the data used and does not feel it supports the values placed on his home. He said he attended the first meeting; however, has not been communicated with following.
Mr. Splonskowski said staff looks at sales of similar properties to see how it lines up with the market and whether the value is supported. This property is valued at $187.00 per square foot, he said, and sales show a median price of $243.00 per square foot for comparable properties. He said typically only above grade square footage is included in square footage calculations.
Mr. Nasheim said he does not have a finished basement. He said when new homes are sold they sell based on whether the basement is finished or not, so the price is different with a finished basement.
Member Strand moved the value of 6622 Crofton Lane South be reverted back to the 2022 valuation.
Second by Preston. On call of the roll Members Strand and Kolpack voted aye.
Members Preston, Piepkorn and Mahoney voted nay.
The motion was declared lost for the lack of a majority.
Member Piepkorn moved the value of the property located at 6622 Crofton Lane
South be retained at the current value of $586,600.00 for the 2023 tax year.
Second by Preston. On call of the roll Members Piepkorn, Preston, and Mahoney
voted aye.
Members Strand and Kolpack voted nay.
The motion was declared carried.
3677 Cordova Loop South - Reitan
Michael Reitan said staff worked with good intent; however, he believes the analytic tool to be flawed. Assessed values seem to be fuzzy math combining recent sale prices of similar properties with variables such as sellers concession to buyer, agent commissions and closing costs establishing baseline value. He said interest rates and lowering of the market warrants further reduction of proposed assessed values and he requests his valuation be reduced to $545,000.00.
Mr. Splonskowski said special assessments must be considered in the sales analysis, especially for the sales ratio. He said his staff believes the value is supported.
Member Piepkorn moved the value of the property located at 3677 Cordova Loop South be retained at the current value of $569,900.00 for the 2023 tax year.
Second by Strand. On call of the roll Members Piepkorn, Strand, Kolpack, Preston and Mahoney voted aye.
No Member being absent and none voting nay, the motion was declared carried.
1114 5th Street North - Hanson
Karla Hanson said the property has gone from $354,200.00 to 407,300.00 in one year and over two years has increased $85,300.00. She said she understands the market is higher; however, this seems to be an excessive increase.
Mr. Splonskowski said there is a third floor that is figured in the square footage calculation and a finished basement and that contributes to the value overall.
Member Piepkorn moved the value of the property located at 1114 5th Street North be retained at the current value of $407,300.00 for the 2023 tax year.
The motion died for lack of a second.
Member Kolpack said she is not comfortable approving the higher value without adequate data.
Member Strand moved the value of the property located at 1114 5th Street North be reduced to $392,100.00 for the 2023 tax year.
Second by Kolpack. On call of the roll Members Strand, Kolpack, Preston and Mahoney voted aye.
Member Piepkorn voted nay.
The motion was declared carried.
1714 9th Street South - Mathew
Member Strand moved the value of the property located at 1714 9th Street South be retained at the current value of $396,000.00 for the 2023 tax year.
Second by Preston. On call of the roll Members Strand, Preston, Kolpack, Piepkorn and Mahoney voted aye.
No Member being absent and none voting nay, the motion was declared carried.
351 7th Avenue North - Sakellson
Member Strand moved the value of the property located at 351 7th Avenue North be retained at the current value of $356,200.00 for the 2023 tax year.
Second by Preston. On call of the roll Members Strand, Preston, Kolpack, Piepkorn and Mahoney voted aye.
No Member being absent and none voting nay, the motion was declared carried.
1909 Rose Creek Drive South - Camrud
Member Strand moved the value of the property located at 1909 Rose Creek Drive South be retained at the current value of $514,100.00 for the 2023 tax year.
Second by Preston. On call of the roll Members Strand, Preston, Kolpack, Piepkorn and Mahoney voted aye.
No Member being absent and none voting nay, the motion was declared carried.
2302 35th Avenue South - Burck
Member Strand moved the value of the property located at 2302 35th Avenue South be retained at the current value of $442,800.00 for the 2023 tax year.
Second by Preston. On call of the roll Members Strand, Preston, Kolpack, Piepkorn and Mahoney voted aye.
No Member being absent and none voting nay, the motion was declared carried.
Individual Appeals (from the floor)
5948 Silverleaf Drive South – Roers-Jones
Shannon Roers-Jones said her property valuation is significant, increasing $147,000.00 in two years. She said colleagues of hers feel the valuation on her property should be closer to $600,000.00 than $700,000.00.
Member Piepkorn moved the value of the property located at 5948 Silverleaf Drive South be retained at the current value of $701,300.00 for the 2023 tax year.
Second by Preston. On call of the roll Members Piepkorn, Preston, Kolpack, Strand and Mahoney voted aye.
No Member being absent and none voting nay, the motion was declared carried.
Individual Appeals Approved as Presented
Member Strand moved the list of individual appeals be approved as presented.
Second by Kolpack. On call of the roll Members Strand, Kolpack, Piepkorn, Preston and Mahoney voted aye.
No Member being absent and none voting nay, the motion was declared carried.
List of Resolved Appeals Approved as Presented
Member Kolpack moved the list of resolved appeals be approved as presented.
Second by Preston. On call of the roll Members Strand, Kolpack, Preston, Piepkorn, and Mahoney voted aye.
No Member being absent and none voting nay, the motion was declared carried.
Unresolved Appeals Received and Forwarded to Cass County Board of Equalization
Member Kolpack moved the list of unresolved appeals be received and forwarded to the Cass County Board of Equalization for consideration.
Second by Preston. On call of the roll Members Kolpack, Preston, Strand, Piepkorn, and Mahoney voted aye.
No Member being absent and none voting nay, the motion was declared carried.
Individual Valuation Appeal
List of Properties owned by Vipond Et Al
Member Piepkorn moved to adjust the values of the properties as presented.
Second by Kolpack. On call of the roll Members Piepkorn, Kolpack, Preston, Strand and Mahoney voted aye.
No Member being absent and none voting nay, the motion was declared carried.
Loves Travel Stop – 3220 39th Street South – Jerry Amoroso (via conference call)
Mr. Amoroso said the property increased about $1.8 million. The increase, he said, is primarily on the land value and an outbuilding, which is a repair garage. He shared comparable properties and said their opinion of value is $4 million and he would like that amount considered, or a return to the 2022 value of $5,773,000.00.
Deputy Assessor James Haley said land along 32nd Avenue South was reappraised for 2023 based on land sales and truck stops were reappraised in 2022. He said staff feels the land value is supported as is the total assessed value.
Member Preston moved the value of the property located at 3220 39th Street South be retained at the current value of $7,523,000.00 for the 2023 tax year.
Second by Strand. On call of the roll Members Piepkorn, Kolpack, Preston, Strand, and Mahoney voted aye.
No Member being absent and none voting nay, the motion was declared carried.
Commissioner Strand moved the 2023 Board of Equalization adjourn. Second by Preston. There was unanimous approval.
The time at adjournment was 8:25 o’clock a.m.