OFFICIAL PUBLICATION OF THE MINNESOTA ASSOCIATION OF ... 2019 FIN… · 4 Equal Eyes | Winter 2019...

Winter 2019 Volume 41 Number 155

EQUAL EYES OFFICIAL PUBLICATION OF THE MINNESOTA ASSOCIATION OF ASSESSING OFFICERS MNMAAO.ORG

WINTER 2019 Volume 41 Number 155

All About Leadership AfterThe Retail Apocalypse

Prepare For The Property Tax Meltdown

The ConferenceThe Member of the YearThe Photo Contest Winner IAAO

2 Equal Eyes | Winter 2019

Executive Officers President Michelle Moen, SAMA1st Vice President Teresa Mitchell, SAMA2nd Vice President Daryl Moeller, SAMAFinancial Officer Kyle Holmes, SAMAPast President Patrick Todd, SAMA Regional Directors Region 1 Ryan DeCook, SAMARegion 2 Mike Sheplee, SAMARegion 3 Jean Sowada-Popp, SAMARegion 4 Mike Dangers, SAMARegion 5 Jason McCaslin, SAMARegion 6 Lori Schwendemann, SAMARegion 7 Chris Odden, SAMARegion 8 Terrie Johnson, SAMARegion 9 Michele Gelo, AMA

Committee Chairs Agricultural Doug Bruns, SAMACAMA and GIS Randy Lahr, SAMAConference Coordinator Paul Knutson, SAMA, RESEditorial Information Systems Jackie Coulter, SAMALegislative Mark Peterson, SAMAMembership Coordinator Rebecca Malmquist, SAMA, RESNominating and Procedures Michelle Snobl, AMAResidential Jill Murray, SAMARules and Resolutions Daryl Moeller, SAMASales Ratio Dell Sanko, CMASecretary Penny Vikre, SAMASilent Auction Lorna Sandvik, SAMASite Selection Lisa Clarke, CMAStrategic Planning Nancy Wojcik, SAMASummer Seminar Coordinator Kim Jensen, SAMA, CAETax Court / Valuations Ann Miller, SAMA Treasurer Reed Heidelberger, SAMA Educational Workgroups Assessor Development Amy Rausch & Patrick Chapman, SAMACourse Management Tina Diedrich-Von Eschen, SAMACourse Curriculum & Standards Sherri Kitchenmaster/Jessi Glancey, SAMA

Education Coordinator/Online Admin. Jackie CoulterScholarship Kelly Schroeder, SAMA

Lori Thingvold, SAMAWright CountyManaging Editor

Amber Hill, CMAPolk County

Jake Pidde, AMAStearns County

Jamie Freeman, SAMAClearwater County

Nancy Gunderson SAMAClay County

EDITORIALCOMMITTEE

MAAOLEADERShIP

Jason Jorgensen, SAMA

Jason Jorgensen, SAMAWadena County Associate EditorCommittee Chair

Mike Bjork, AMAWashington County

Questions, comments or suggestions? Please email

[email protected]

Missy Manke Wright County

Winter 2019 | Equal Eyes 3

IN EVERY ISSUE

* The statements made or opinions expressed by authors in Equal Eyes do not necessarily represent a policy position of the Minnesota Association of Assessing Officers.

After the Retail Apocalypse: Prepare for the Property Tax Meltdown

28 Commissioner’s Comments 5Presidential Perspective 6MAAP Update 14Classifieds 15Top 10 16What You Get For 26Out of the Past 27Assessor Soft Skills 34Transitions 36Welcome Aboard 39Tax Court 44SBA Minutes 50


From the Editor:

LoriLori ThingvoldEqual Eyes Managing Editor

Happy New Year! Thanks to everyone who entered photos for our last two contests. The winners of the Your Harvest contest will be featured in the spring issue. Sorry for the delay!

We are currently looking another member (we’ll miss you, Laura!). If interested please contact myself or Jason.

Best IAAO Conference Photo: $100 Winner!! The winner is Brian Folden of Wadena County

The cover of this issue also features a cropped portion of this photo. Thanks, Brian!


Commissioner’s Comments By Cynthia Bauerly MN Revenue Commissioner

January is a special time in Minnesota. Nights grow shorter, skies seem brighter and bluer, and the winter light and blanket of snow (usually) beckons us outside. It’s also a time of transition at the Department of Revenue as we move from last year’s accomplishments and challenges to this year’s opportunities.Gov. Tim Walz and Lt. Gov. Peggy Flanagan were sworn into office on January 7. The new administration is committed to serving Minnesotans in every ZIP code across the state. We’ll continue to prioritize our shared efforts with MAAO to ensure a property tax system that is fair and equitable for all Minnesotans.I’m grateful to Gov. Walz and Lt. Gov. Flanagan for the opportunity to continue to serve the state, the department, and all of you as the Commissioner of Revenue.It’s an honor to work with MAAO and its members. Your dedication to excellence and consistency in property tax administration helps fund important services in your communities — and Minnesota’s future — every day.I know the Department of Revenue and MAAO will continue working together to administer and improve our state’s property tax system for the Minnesotans we serve.

Improving togetherIt was a pleasure for many of our team to join you at the 2018 International Association of Assessing Officers annual conference in Minneapolis on September 23-26. A number of MAAO members presented and taught at the conference. We thank you for sharing your views and lessons with the rest of the community. I know our staff

who attended gained new insights, valuable connections, and quality resources to keep improving their work and the assessment profession.Continuous improvement is a core strategy at Revenue and — along with adaptability — crucial to our mission of “working together to fund Minnesota’s future.” We are always looking for ways to improve the instructions, tools, and services we provide assessors and other local officials. Your ideas and feedback also play a key role.

Joint effortsLast fall we launched a property tax data portal to allow assessors, among others, access to customizable property tax reports without having to submit a request and wait for the department. Since launching the portal on September 4, we have received a lot of helpful feedback from assessors and other customers. Your feedback helped us plan additional upgrades to the site in the coming months, such as:• Adding more years to the Property Tax

History reports• Including the Approved County Tax

List abstracts in the PRISM Summary Reports

• Upgrading the interactive data tool to incorporate maps and other user-friendly features

Other recent and upcoming examples of our drive to improve — with your help — include:• The annual Property Tax Services

report, which helps the department and counties track how well we’re meeting our responsibilities to each other and spot opportunities to improve. (We

expect to release it in February.)• A recent listening session about

fractional homesteads, where we heard your concerns and discussed ideas for how to ensure consistent, achievable administration of these often-complex homesteads and how they affect property tax credits. (Stay tuned!)

• Our current effort to improve the Revenue website to make it easier for all of our customers to find, understand, and use the information and tools we provide. Watch our home page at revenue.state.mn.us for details about the beta (preview) site and your chance to weigh in about what you like about it or what could be better.

A look aheadThe legislative session began January 8, with a number of new faces at the Capitol including on the House Tax Committee and Property Tax Division.Property taxes will no doubt be on the docket this year, which provides the chance to improve our property tax system and how we administer it together. Each year, the department welcomes your ideas and your partnership to help make that happen.

As always, we’ll provide further updates as the legislative session unfolds. Thank you for your service, and Happy New Year!Cynthia Bauerly is commissioner of the Minnesota Department of Revenue.

New Year, Same Commitment to Partnership


president’s perspective

advice and mentorship in the past few years and have built many friendships resulting from this.

This year will bring about a few changes that we are excited to see transpire. We kicked off our new year with a well-attended Organizational meeting. I am excited to see new committee chairs that are enthusiastic to be part of the Executive Board.Our organization continues to grow and expand in a commitment to quality education. This year we are collaborating with the Appraisal Institute for the Appraisal Principles and Appraisal Procedures courses. We believe this will be a successful venture with the Appraisal Institute and look forward to the results. Our Education committees welcome suggestions from you as a member for topics for seminars and weeklong courses.

The Legislative Committee will soon be entering their busy time and we are excited to have Matt Hilgart (AMC) as our Legislative Liaison this year. Matt presented at our November meeting, giving us an update on his role with MAAO in this Legislative session. The Legislative Committee will have the opportunity to have an “afternoon at the Capital” allowing the members of the committee to get acclimated with the capital and participate in some testifying training.We have a few new committee chairs this year. At our recent Executive Board meeting, we welcomed Carrie Borgheiinck, Scholarship Chair; Alex Gruggenberger, Sales Ratio Co-Chair; John Conway, Residential Co-Chair; Mike Wacker, Education Steering Chair and Troy Halter, U40/10 Chair to the Executive Board. Our

U40/10 group that Kyle Holmes initiated is growing in size and there are so many talented members that are part of that group. They are showing us that we can change and we can accept new fresh ideas. As I look at my own office and the generational makeup of my staff, I am learning to embrace what the younger generation has to offer, just like they can learn a thing or two from my generation.

In closing, I hope to serve you well this year and continue to move MAAO into the future with the support of all you members. I am available at any time with any questions, concerns or comments.Hope you all enjoy your Holidays and our wonderful Minnesota winter. I look forward to seeing all of you at the Summer Seminars.

Michelle MoenIsanti County AssessorMAAO [email protected]

Wow, the past couple months have been busy as your new MAAO President.

I would like to begin by thanking all you members of MAAO for the honor of serving as President for the next year. I promise to serve you as best as I can. I believe with all of your help we can have a successful year. I also would like to thank Past-President Kyle Holmes and Past-President Patrick Todd for all the assistance they gave me the past 2 years as I transitioned. They both had successful years and I know I have some big shoes to fill. I look forward to working with the Executive Board members in the upcoming year.

My first experience with the Executive Board was back in 2009 when Stephen Hacken was President and brought me on as the Nominating Committee Chair. Being part of a committee gave me the opportunity to see how beneficial this organization is to all members. This year marks 14 years for me as a MAAO member. In my short 14 years I have had the pleasure in meeting so many other members of MAAO through committees and the Executive Board. Like many President’s before me, I really encourage all members to be involved with MAAO. Being involved does not always mean stepping up to an Officers position. There is always a need for committee involvement with Executive Board. MAAO encourages members with new ideas to come forward to bring enhancement our organization. This is a great way to meet others who are able to give guidance and support in our profession. These relationships we build can be life-long. I have so many members that have given me

“The achievements of an organization are the results of the combined effort of each individual.” – Vince Lombardi

By Michelle Moen, SAMAIsanti County Assessor

MAAO President


2018 IAAO MEMBER OF ThE YEAR

Rebecca L. MaLMquist, caeDiRectoR of assessMents

MinneapoLis assessoR’s office

Rebecca joined IAAO in 2000, and for the past 18 years has served IAAO with tireless passion and enthusiasm! Rebecca currently sits on the IAAO Executive Board. Previously Rebecca served as Chair for The Membership Committee from 2016-2017, as a member of the Communications Committee from 2010-2014, while also serving as Chair during the 2015 term. She has been an IAAO state representative since 2012, successfully completed the Instructor Training Workshop in 2015.

Rebecca is an MAAO Professional Designation Advisor, MAAO Form Report Grader, and former Equal Eyes Editor. Under Rebecca’s leadership, Equal Eyes won four John A. Zangerle Awards for outstanding publication produced by an assessor’s association.

Congratulations Rebecca, Minnesota’s only IAAO Member of the Year recipient since 1984!


IAAO CONFERENCE

PHOTOS


The MAAP winter meeting was held on December 7, 2018 at The Hormel Institute in Austin, MN. Mower County hosted the meeting and there were 15 members present. During the business meeting, there was discussion on the 2018 summer workshop survey results, the 2019 summer workshop in Willmar, MN and the possible topics to be covered. We also discussed adding course training to the winter meeting in future years. After the meeting, there was a tour of the cancer research facility. We then left that location to tour the SPAM Museum in downtown Austin, MN followed by lunch at the Mower County Courthouse.

The 2019 MAAP Summer Workshop will be held August 15th & 16th @ Willmar Conference Center in Willmar, MN.

If anyone is interested in becoming a MAAP member, the annual membership fee is $10.00. Contact a current MAAP officer for details.

By Samantha Erpelding, Stearns County MAAP Pesident

UPDATE maap


294 Summit Avenue, St. Paul, MN 55102

$2,495,000

Garrison Keillor’s St. Paul home has been put on the market. The home is listed through David and Dan Duddingston.

Currently the property is not on MLS, but is being

shown to serious interested buyers.

The home is 10,207 square feet with five bedrooms and nine bathrooms.

It was built in 1919 and purchased by Keillor in 2008.

The home sits on two parcels containing approximately .88 acres.

2018 Assessment

Land Value: $898,200.00 Building Value: $1,571,100.00

Total Taxes for 2018: $48,118.00 Assessment & tax information provided by Ramsey County website.

Listing information provided by David and Dan Duddingston of Keller Williams Premier Realty site.

tours.spacecrafting.com

c Classifieds

By Amber Hill, CMAPolk County

Editorial Committee Member


By Jamie Freeman, SAMA Clearwater County


1. Ability to Lead

The very root of leadership is the ability to lead others effortlessly. Leaders exhibit a unique blend of charisma and character traits that attract people to follow. They inspire their team members, which in turn results in goals and actions crucial to get things done in the workplace. It’s also about motivating others when things don’t go as scheduled and helping the team to get back on track.

Not every supervisor is born with the personality to be a great leader. Once you have developed a mindset like that of a leader, you can pursue leadership training programs to improve your skills.

2. Vision

Good leaders create a vision of the future for their department that motivates team members to achieve it. What are your monthly, quarterly, and yearly goals? As a leader, it’s your responsibility to portray to the members of your team the consequences of what they do and the impact it has on your office and on taxpayers.

3. Build Relationships

The work in your department is built on a solid foundation of relationships and trust. Your office will likely be unsuccessful without these two things. Take the time necessary to build relationships with members of your team, your community, your vendors, the county board, the Minnesota Department of Revenue, fellow employees in County and City Assessor offices, and even elected officials. The stronger your relationships, the better leader you will be.

4. Professional Expertise

To be successful, a supervisor must be well-qualified, well-experienced, and well-deserving to be chosen for the position. You really don’t want to be a manager who is less qualified than the team members. The best managers build on their professional skills by continually reading and continuing their education to stay up-to-date with changes in the assessment world.

Skills Every Manager needs to lead their team

The Top 10


T o p 1 0 : S K I L L S E V E R Y M A N A G E R N E E D S T O L E A D T H E I R T E A M , C O N T I N U E D

5. Communication Skills

Supervisors must be able to clearly and concisely explain to their staff everything from long term goals to specific tasks. Great leaders communicate with their people often to ensure everyone knows what their role is, and the expectations for that role. This also includes mastering communication via the phone, email, and social media.

Remember, a part of communication involves listening as well. It’s important to keep an open flow of communication between managers and staff.

6. Organizational Skills

You simply can’t be a good leader if you’re disorganized. Organize your work:

o Time Management: You can’t procrastinate. Tasks need to be completed efficiently and effectively.

o Prioritizing: Compile task lists that include both a to-do and a to-don’t list. o Project Management: Project organization skills are necessary when it comes to managing

timelines and deadlines. o Consistent Communication: If messages are misunderstood, tasks can become unorganized and

projects can get messy. o Multi-tasking: Being able to juggle multiple tasks and complete all of them efficiently and

effectively is a necessary skill of leadership organization. o Flexibility and Adaptability: Be flexible about your work load, task urgency, deadlines, receiving

feedback and constructive criticism.

7. Integrity and honesty

Great leaders are honest and transparent, and have high integrity. They lead by example. A good leader not only does the right thing, but is seen to be doing the right thing.

You can’t expect staff to be on time if their supervisor is always late.

8. Delegation

Learning to delegate tasks to the right employee or team is a key skill for managers. The more a leader takes on, the less they are able to achieve because they are stretched too thin. Take a moment to step back and figure out who the best person is for the job. Then trust him or her to get it done.

9. Develops Others

Just as you work to continually develop and build your own technical and professional expertise, the best leaders set aside time (and money in their budgets) to develop their staff. They look for the most promising employees, and provide them with the training they need to become the next generation of great leaders.

10. Adaptability

The assessment world is changing every day. Therefore, you must adapt as a leader. Since change is the only constant in life, true leaders embrace change and take action to make it favorable.

"The greatest leader is not necessarily the one who does the greatest things. He is the one that gets the people to do the greatest things." Ronald Reagan


The 84th Annual International Conference on Assessment Administration was held on Sept. 23-26, 2018 in Minneapolis with 1,328 attendees, 79 educational sessions, 42 exhibitors and hundreds of attendees from around the world.

In the five years leading up to the conference a lot of hard work, planning and organizing went into making the conference go smoothly. A lot of credit goes to MAAO whose members showed up en masse at 240 strong to participate in the conference. MAAO provided over 80 conference volunteers and worked more than 725 hours during the event volunteering. Thanks members and friends for all you did to help make the conference a huge success. It was a watermark moment for MAAO that wouldn’t have happened without your generous support and commitment over five years.

Sincerely,

Rebecca Malmquist * Paul Knutson * Tami Paulson * Matt Gersemehl * Saray Garnett-Hochuli Nancy Wojcik * Patrick Chapman * Tom May * Patrick Todd

IAAO International Conference

has Best Event Yet! By Patrick Todd

City of Minneapolis Assessor


highlights from the IAAO conference

Welcome Reception at Mill City Museum


Opening Session

Opening session and national anthem featured young people from the Lundstrum Performing Arts, a nonprofit located in North Minneapolis whose mission is to offer programs that inspire and develop youth on and off the stage.


Minneapolis Color Guard

K

Keynote Speaker - Jack Dangermond, Founder and President of ESRI speaking on the Science of Where, the next generation of GIS that will simplify and amplify geographic and enterprise data through intuitive maps, charts, and graphs for better decision making.


Women’s Initiative Luncheon

Women’s Initiative Luncheon with Moderator Rebecca Malmquist (L) and Keynote speakers: Minnesota Court of Appeals Judge Lucinda Jesson (C) and IAAO President Dorothy Jacks (R)

Minnesota Court of Appeals JudgeLucinda Jesson


IAAO Charity Book Drive for Reading Partners

Reading Partners is a nonprofit community-based organization that focuses on students who are at least one month behind in reading

and provide individualized instruction to help them master the reading fundamentals they need to reach grade level. IAAO and MAAO

collected $3,200 in donations which allowed us to donate 87 new books and 50 used books to Reading Partners.


Pre-Conference Golf Outing at Rush Creek


MAAO Group Photo at the Closing Banquet


What You Get For

By Amber Hill, CMAPolk County


Fire Stations

4701 Galaxie Avenue, Eagen, MN (Dakota County)

Sold for $300,000 at the end of 2018

Sold to Classic Auto Storage

Built in 1988 / Approximately 5,100 SF / About 3 Acres twincities.com

3940 Rahn Road, Eagen, MN (Dakota County)

Sold for $50,000 June 2018

Sold to Classic ‘n’ Clunkers

Built in 1963 / Approximately 5,100 SF / About .52 Acres twincities.com

clay.minnesotaassessors.com

754 Randolph Avenue, St. Paul, MN (Ramsey County)

Estimated Market Value $580,400

The property was placed on the market in 2017 by the city to

solicit offers. Current accepted offer is for a microbrewery.

Built in 1880 / Approximately 10,000 SF between shed & fire

hall / About .41 Acres twincities.com & startribune.com


By Amber Hill, CMA

Polk CountyEditorial Committee Member

out of the past

Remembering Yesterday

5 Years Ago—2014

Equal Eyes Published “How We Landed the Convention” an article dedicated to Minnesota hosting the 2018 IAAO 84th Annual International Conference on Assessment Administration

10 Years Ago—2009

City of Edina residents protested against a new trend: “invasive monster homes”. The monster home is a house that is more massive than its lot and neighborhood was intended, usually built after a tear-down.

The MAAO website receives a facelift. The new updated site features a service called “memberclicks’ and has increased database searching capabilities.

15 Years Ago—2004

In an effort to encourage assessors to obtain higher designations, there were discussions between the State Board of Assessors, MAAO, and the Department of Revenue on whether additional options should exist to obtain the AMA or SAMA. Out of these discussions, the Income Case Study Exam was born.

20 Years Ago—1999

Louise Thureen, City of Hibbing, retires. Mrs. Thureen was a former Editor of Equal Eyes and the first female MAAO President. Editor Marvin Anderson made the trip to Hibbing to help see her off.

Mike Sheehy, Blue Earth County, was President of MAAO. Mike promoted the newly established Dan Franklin Memorial Scholarship. In addition, he pushed for certified assessors to work towards a higher licensure level.

25 Years Ago—1994

Pete Koole, City of Bloomington & Robert Rudy, Hennepin County authored a technical article explaining the origins and practice of using fee simple interest in assessed valuations

30 Years Ago – 1989

City of Minnetonka Property Appraiser Edward Hervin concluded that property values in his jurisdiction were increasing by 4.93% per year. His findings came from a study of the city paired sales, prompted by taxpayer concerns.

The Department of Revenue first mentioned the Assessor Orientation program. The intent of the program was to help new assessors get started in any jurisdiction. Today the program has been revitalized and reviews first began in early 2014.

45 Years Ago - 1974

The Minnesota Department of Revenue was seeking an appropriation from the 1974 Legislature to develop a state-wide computerized property appraisal system. It was hoped that the system would be available for the 1975 assessment.

55 Years Ago - 1964

Dan Franklin advised the membership on the upcoming county assessor vacancies. He asked outgoing assessors to “acquaint your board with your job, advising them that it takes a well-qualified and capable person to replace you”. Mr. Franklin also made first mention of the MAAO jobs board.


NOV 14, 2018

Big-box retailers nationwide are slashing their property taxes through a legal loophole known as “dark store theory.” For the towns that rely on that revenue, this could be a disaster.

WEST BEND, WI—Kraig Sadownikow doesn’t look like an anti-corporate crusader. The mayor of West Bend, Wisconsin, stickers his pickup with a “Don’t Tread on Me” snake on the back window, a GOP elephant on the hitch, and the stars-and-stripes logo of his construction company across the bumper.

His fiscal conservatism is equally well billboarded: In the two hours we spent at City Hall and cruising West Bend in his plush truck, Sadownikow twice mentioned the 6 percent he has shaved off the

Wisconsin city’s operating budget since becoming mayor in 2011, and stressed its efforts to bring more business to town.

So you might be surprised to learn that Sadownikow (he instructed me to pronounce his name like sat-on-a-cow) is personally boycotting two of the biggest big-box retailers in his town, Walmart and Menards, the Midwestern home improvement chain. He’s avoiding shopping at these companies’ stores until they cease what he sees as a flagrant exploitation of West Bend’s property tax system: repeat tax appeals that, added up, could undermine the town’s hard-won fiscal health.

Sadownikow is one of many unlikely combatants who have lined up against “dark store theory.” That’s the ominous-

sounding term that administrators have given to a head-spinning legal argument taking cities across the U.S. by storm. Big-box retailers such as Walmart, Target, Meijer, Menards, and others are trimming their expenses in a forum where few residents are looking: the property tax assessment process. With one property tax appeal after another, they are compelling small-town assessors and high-court judges to accept the novel argument that their bustling big boxes should be valued like vacant “dark” stores—i.e., the near-worthless properties now peppering America’s shopping plazas.

To hear it from opponents, this emerging legal phenomenon essentially weaponizes an already grim retail landscape. But it’s not always clear who’s right and wrong—dark store theory is a battlefield muddied

After the Retail Apocalypse,

Prepare for the Property Tax Meltdown By Laura Bliss, City Lab reprinted with permission


in the cryptic laws and upside-down logic of commercial property valuation. The potential slam to vulnerable tax bases is tangible, however. If the stores prevail in West Bend, for example, it would reduce property values by millions of dollars, force the city to refund hundreds of thousands of dollars in back taxes, and set back payments on the public infrastructure that the town built to lure these retailers in the first place. That could result in higher taxes for residents, fewer police officers, firefighters, and teachers, and potentially, a mess of public debt.

“They are holding the communities for ransom,” said Shannon Krause, the assessor in Wauwatosa, Wisconsin, where Lowe’s, Nordstrom, Best Buy, Meijer, and others

have also appealed their valuations, year after year after year. “It’s a bleeding out.”Wauwatosa and West Bend are two of the countless communities around the U.S. confronted with dark store appeals that cities worry could be ruinous. A survey conducted by CityLab of the International Association of Assessing Officers, a society for property valuation and tax policy professionals, found that these types of appeals have been filed in at least 21 U.S. states over the past 10 years. The appeals likely number in the thousands, based on CityLab’s review of legal databases and

dozens of interviews with property tax experts.

This map gives a sense of where cities and counties are facing this novel type of tax

appeal, and where state legislatures and supreme courts have considered it. (Data: September 2018 IAAO member survey conducted by CityLab, legal records searches on Westlaw and Justia, interviews with tax assessors, lawyers, and municipal finance experts. Map: Madison McVeigh/CityLab)

In Wisconsin, at least 230 cases have been filed across 34 counties since 2015, many of them repeat appeals for the same properties, by the top three attorneys representing retailers. In Michigan, more

than $75 million in tax value was lost from the rolls from related appeals between 2013 and 2015. In Indiana, an estimated $3.5 billion in property value is on the line. Texas stands to lose $2.6 billion

After the retail apocalypse, continued


per year if successful appeals become widespread, according to the Republican state comptroller Glenn Hegar. “No one likes paying taxes, including me,” Hegar wrote in the Austin American-Statesman in 2017. “But I have a significant problem when large corporations and their lobbyists try to manipulate the tax system to lower their property taxes … Dark store theory is corporate welfare of a particularly ugly kind.”.Born of the post-recession retail apocalypse and spread by a cottage industry of “no-win, no-fee” tax consultants, dark store theory could foreshadow an even larger threat to local finances—a weakening of the basic social contract underpinning the property-tax apparatus that keeps cities and towns afloat. And here’s the rub: The ruthless logic helping these brick-and-mortar giants dodge their taxes might make a lot of sense.

Jason Williams, the assessor for the city of West Allis, Wisconsin, pressed flat a stack of PowerPoint print-outs against the trunk of his black Impala. We were standing in the giant moat of parking surrounding a Walmart Supercenter in the neighboring community of Greenfield. It stands next to a smaller big-box store, now subdivided into a non-denominational church and a thrift shop. This second property used to be the Walmart in town, before it became one of many empty shells the discount giant has sloughed off in the past decade as it has upgraded to its preferred, more gigantic model.

Williams chose this spot because this reptilian skin-shedding of big-box chain retailers helps frame dark store theory. It’s about the second lives of these oversize retail spaces, and about how much their outer casings are worth—when they’re vacant, and when they’re occupied. In other words, it’s about what counts as market value.

“They’re literally using closed, boarded-up stores as comparables for a recently renovated, vibrant property.”

In the biting Wisconsin wind, Williams showed me a photo of the Sam’s Club in West Allis that he battled last year, and which he is now fighting again. (He didn’t want to visit this store in person with me because of the legal dispute.) As

of 2017, the city had valued that store at $11 million, a number based on what the property had cost the owner to buy back in 2001, plus the added value of renovations over the years, adjusted at the going rate of depreciation. These are the methods he uses for every type of property, Williams told me, following those rules in his handbooks. “I’m not saying my numbers are necessarily the best ones out there,” Williams told me. “But they’re what I get when I run the math.”

But a tax agent from Chicago filed an appeal on behalf of Sam’s Club, arguing that the store was worth just $7.2 million, based on the low sales costs of a handful of second-generation big box locations scattered around the state. The comparables that the agent provided included three former locations of the now-defunct electronics retailer American TV, an old Lowe’s, a former Target, and a former Walmart (actually, the same property in Greenfield Williams and I were standing in front of now). All of them sold for between $2 million and $4.5 million between 2012 and 2014: much lower sales prices than what their original owners had purchased them for years before. Some had second-generation occupants; some were bank-owned.

Jason WIlliams makes the case against dark store theory outside a church that moved into Greenfield, Wisconsin’s old Walmart. Beside it stands a new, much larger Walmart. (Laura Bliss/CityLab)Big-box defenders argue that the “sales approach” (what someone recently paid for a similar property) is the best way to determine a building’s value. And in many states, including Wisconsin, sales are supposed to be the first variable in the valuation equation, whenever possible. Therefore, retailers’ lawyers say, a Sam’s Club valued at $11 million is overvalued, because its neighbors are selling for a third of that amount. In a real estate market that’s oversaturated with retail closures, bankruptcies, and vacancies galore, they insist, no one wants a big box store anymore. If you just look at the sales prices, they are often not wrong.

But assessors say that this misses what gives a functional property its value. Location is everything in real estate—there may be a good reasons why some of those

stores went dark. Besides, the market for big boxes is too small to rely solely on sales; construction costs and property incomes also have to be taken into account. And many of these vacant and depreciated properties would need major repairs to achieve a state of “highest and best use,” which would be a more appropriate comparison for an open and fully updated store.

Besides, there’s something plainly illogical about the argument. “Do you want me to value your house as if it’s closed and boarded up?” said Krause.

So, case closed? Not quite. The vast majority of dark store appeals brought by big boxes—many of which ask for write-downs of 50 percent—are being settled for a lower valuation, probably in the ballpark of 85 percent, Thomas Hamilton, a professor of real estate at Roosevelt University, told me. Many assessors strive to be conservative in their estimates, so they usually try to find a happy medium when taxpayers protest. Plus, it’s costly to litigate.

Yet dark store theory appeals have been incessant, and small towns feel outgunned. Retailers come back, year after year, insisting on paying less, even after they’ve been granted reductions. For them, every demand brings the opportunity for a lower valuation, and there’s no real financial downside, with outside tax lawyers working for contingency fees. “They’re forcing the hands of municipalities to go to court, and then they keep bargaining it down,” said Krause, the assessor in Wauwatosa. Repeat appeals from Lowe’s, Best Buy, Meijer, and others dating back to 2013 have cost her city $2.4 million in legal fees.

Sources: Wisconsin Policy Forum, Wisconsin Circuit Court Access, Wisconsin League of Municipalities.

Fighting dark store appeals is costly, but so is acquiescence. If six properties under dispute in Wauwatosa won their appeals, local government (including the city, school district, county, and sewage district) would owe them $22.5 million in tax refunds, according to the city’s data. If West Bend reduced its assessments for Walmart and Menards by 50 percent, as both stores have basically asked, it would cost the city about



$220,000 per year in lost revenue, or about 1 percent of its annual operating budget. It would also have to refund the stores $540,000 for all the years of assessments that the stores are disputing. (The city has already lost thousands from a Shopko it settled with; the local school district also had to refund $60,000 over related cases.)The tax-base pinch might not be so painful if just a few cases are successful. The fear is that victories could set a precedent, and that the argument spreads to industrial properties and other types of commerce. In Wisconsin, because there’s a property tax levy cap, assessors told me that existing homeowners, renters, and small businesses would eventually have to pay more in order to recoup the predicted losses from widespread big-box appeals.

Wauwatosa might have more dark store theory litigation in action than any town in America. According to the city, these six properties are all fighting for substantial property tax reductions, in many cases greater than 50 percent. Note that Mayfair Mall’s argument centers on the value of its lease—a different but related issue. (Data: City of Wauwatosa. Note that assessed values for 2018 are the city’s estimates based on the 2017 tax rate. Map: David Montgomery/CityLab)

What if every national chain store around successfully slashed their obligations using dark store theory and similar arguments? According to an analysis by the Wisconsin League of Municipalities, the average homeowner across seven cities could wind up paying an extra $385 per year in property taxes.

Or they’d have to cut services, which has already happened in small towns across Michigan. In Sault Ste. Marie on the Upper Peninsula, a battle with Walmart forced the city to make pension cuts. In the city of Escanaba, an ongoing battle with a Menards has led to reduced library hours. (Walmart, Menards, Target, Home Depot, and Meijer, did not return CityLab’s requests for comment. Lowe’s referred me to the Retail Industry Leader’s Association, which hasn’t responded; we’ll update this story if it does.)It might seem absurd that a corporation can insist that a bustling big box is worth little more than a worn-out husk many miles

away. Yet this theory is winning over courts. Though most appeals are settled informally by assessors, a small and growing portion are getting kicked up to local tax boards, circuit courts, and in a few states, state supreme courts. In about half of these cases, justices are siding with big box proponents. Dark store theory has “largely withstood judicial scrutiny, leading to hundreds of store devaluations and to hundreds of millions of dollars in estimated lost tax revenue to local governments,” according to a January 2018 report by S&P Global Ratings, which warned investors of the risk the issue poses to municipal budgets.

There’s a good reason why dark store theory emerged in the wake of the Great Recession, as empty “ghost boxes” pockmarked the suburbs and exurbs of the upper Midwest. After the economic shock of 2008, consumer spending tanked, sending business on Main Streets and shopping plazas alike into the red. Today, combined with the rise of Amazon and web-based shopping, once-mighty retail giants keep tumbling. In October, 125-year-old Sears filed for bankruptcy, with plans to close 46 stores by Christmas; Toys ‘R’ Us shuttered more than 700 locations around the country earlier this year. According to Bloomberg, from the beginning of 2018 through April, U.S. store closures had hit 77 million square feet.

The Detroit-based tax attorney Michael Shapiro has been credited with pioneering the technique of using “dark stores” as sales comparisons. In 2010, Shapiro helped lower the valuation of a Michigan Target by about half using dark store theory (the term itself was later coined by assessors). Since then, he’s fought dozens of such cases on behalf of retailers; in 2015, he told the Detroit Free Press he estimated that more than 90 percent of big-box stores around the state had been revalued in this manner.Robert Hill, a Minnesota-based tax attorney, and his Madison-based counsel seem to have filed the bulk of appeals and lawsuits around Wisconsin. His argument’s strength seems to be its simplicity: “Who needs these things?” Hill told a local newspaper last year. “These things are so darn big.”

In other words, the United States is fatally oversupplied with big boxes. And that has

made all of them—alive or dead, occupied or not—worth a lot less than you’d think.“They come in promising jobs and to add to the tax base—more development, more tourism, more people coming in. Now look at what they’re doing.”

Working mostly on contingency fees, Hill flies around the country to fight for Walmart, Menards, and others. When I reached him by phone, he was in Colorado, surveying a Walmart with a colleague. “The trend-line for these buildings is that they’re too big, and they sell for warehouse prices,” he told me. “It’s not great construction. The ceilings are too high. Where are the dock doors? If you want to put product in a warehouse, these are going to be the last places you want to buy.”

Why would one of these retail behemoths be worth any more or less than an identical one a few exits away, just because it was currently open and the other wasn’t? “I don’t know if these assessors give a rat’s patootie about functional obsolescence,” Hill said.

Hill made no bones about the fact that these companies are looking to trim costs where they can, as they are entitled to do. What matters here is ultimately fair taxation, he insisted. “How many taxpayers do you know that would be willing to pay based on an assessment that’s five times more than they’re able to sell their properties for?” he said.

In Hill’s formulation, corporations need to defend themselves from being “discriminated against” by assessors who intentionally overtax successful businesses. That is why he works on such a wide scale. “We eat what we kill,” he said. “We kill only because they need to be killed.” Kraig Sadownikow, mayor of West Bend, Wisconsin, is a bumper-sticker conservative and an opponent of dark store theory. (Laura Bliss/CityLab)

It’s not hard to see how an aggressive defense like his could come across more forcefully in a courtroom than the jargon-heavy, procedural talk of a municipal bureaucrat. The practices cities and counties use to assess properties may be standardized in professional handbooks, but they are by no means black-and-white—not



like the stark portraits of taxpayer injustice that Hill painted. Property assessment is complicated, and not all practitioners explain their methods clearly.

What’s more, when I asked city officials to explain the precise legal flaw with dark store theory, many appealed to plain common sense. “They’re literally using closed, boarded-up stores as comparables for a recently renovated, vibrant property,” Sadownikow said.

As crazy as that sounds, Hill has been able to counter that point quite effectively, and in legal terms. Similarly, local leaders have tended to focus on the injustice of these shrewd lawyers preying on small towns to plump up corporate bottom lines. The David-and-Goliath optics aren’t flattering, but that’s not Walmart’s problem. For better or worse, every U.S. taxpayer has the right to attempt to haggle down their property taxes. And some of the biggest retailers in the country have a powerful new tool at their disposal.

When you zoom out from these byzantine quarrels, the woes of the taxman look even grimmer. Property assessments are but a small and emerging frontier for creative tax workarounds among large U.S. corporations. Thanks to offshore tax havens and other breaks and loopholes, many names in the Dow 30 have for years enjoyed a shrinking tax burden as a share of their profits. A 2013 Washington Post analysis found that the share of income Walmart paid in taxes dropped by 24.3 percentage points between 1971 and 2012. Home Depot’s fell by 12.5 points between 1971 and 2012. Today, President Trump’s $1.5 trillion tax code overhaul has boosted GDP and economic growth, at least temporarily. But one year in, corporate tax revenues have also dropped by one-third. And the new cap on state and local tax deductions threatens to further pressure city and school budgets.

Historically speaking, brick-and-mortar retailers haven’t had as much luck in lobbying for federal tax breaks compared to peers in tech and manufacturing, such as Amazon, Facebook, and Boeing. But at the state and local level, they’ve scored generous incentives. Hungry for development, many communities go to

great lengths to lure mega-retailers in with public subsidies and tax benefits. For example, West Bend spent nearly $16 million to build infrastructure on once-vacant farmland solely to attract Menards and Walmart, Sadownikow told me, with the plan to finance that with the future growth in property taxes. Now, if the stores successfully slash their payments, the city would be forced to drag out its timeline for paying off that investment. This also raises the specter of debt.

It’s like a betrayal, Krause told me. “They come in promising jobs and to add to the tax base—more development, more tourism, more people coming in,” she said. “Now look at what they’re doing.”

Sources: Michigan Association of Counties, CityLab IAOO survey, Austin American-Statesman, Association of Indiana Counties property tax analysis, provided to CityLab.

In so many ways, it seems the tax code no longer fits the players, and that may include property assessment. And dark store theory may be bigger than big boxes: As challenges spread geographically, city administrators fear the tactic will catch on among other property classes, with fast food outlets, banks, grocery stores, and office buildings deploying similar arguments in an effort to slash their tax obligations. Indeed, legal records show that this is happening: Two Hy-Vee supermarkets in Iowa have asked for write-downs using vacant properties. A Steak ‘n Shake in Warren County, Ohio, has made a similar argument about the value of its lease.

What if no one can agree about what any type of property is worth? That way lies serious fiscal havoc. For local government to successfully operate police departments, school districts, and other public services, “the tax depends on an agreement about what the basis for market value is,” said Joan Youngman, a senior fellow and chair of the Department of Valuation and Taxation at the Lincoln Institute of Land Policy, told me. “A new theory has come along that challenges the usual practice, and it needs to be answered.”

The law will have to settle the matter, but it’s not clear when that day is coming.

For the last two years, Wisconsin mayors and assessors have been testifying before Madison lawmakers with charts, graphs, and reams of spreadsheets that spell out how costly this battle could get. Last year, 19 of the state’s 33 senators (10 Democrats and nine Republicans) signed onto a bill crafted in part by the League of Wisconsin Municipalities, but it failed to reach a vote.There may be more hope now that Governor Scott Walker is on his way out, advocates said. It also helps that 76 percent of voters across 24 towns voted yes on referenda this August and November, demanding that legislators close the so-called “dark store loophole.” In the lead-up to this year’s midterms, dark store theory became a talking point among candidates for local and state office.

Still, it’s going to be tough: Don Millis, a prominent tax attorney who represents retailers and a lobbyist for the Wisconsin Manufacturers and Commerce, the top advocacy group for big business in these parts, sits on the legislative committee assigned to review the issue.

Other states have proposed legal fixes, too, but in Indiana, the one state that managed to pass anti-dark store theory legislation in 2015, lobbying pressure led to its weakening the year after it was passed. The state tax board has continued to sympathize with retailers, who keep launching appeals.If Wisconsin managed to change its laws, Hill told me, lawyers like him would just redouble their efforts. “That’s when we’ll grab the pitchforks and get the Constitution involved,” he said.

And the judicial system? Some state supreme courts are hearing about the issue, but it seems that theirs is not always the final word. In Michigan, Escanaba has yet another upcoming court date with Menards, even though the high court rejected the retailer’s last appeal in 2017. In June, Patrick Jordan, the city manager, wrote an impassioned letter to fellow municipal leaders across Michigan, pleading for donations in support of the ongoing legal campaign.This next decision could set the stage for tax rolls across the country, Jordan argued. “National retailers have been waiting and preparing for the Menards remand hearing due to its long-term implications,” he



wrote. “This fight is a fight for all local units and not Escabana’s fight alone.” Still, it’s not clear that one state can set a precedent: A few years ago, Indiana’s state supreme court sided with a Kohl’s.

In the short term, the best bet for cities and counties may be assessors who are able to effectively resist dark store arguments by clearly explaining their methods. After his predecessor allowed a substantial reduction to a Target that appealed in 2016, Williams decided to defend his methodology against Sam’s Club and Menards. He pulled construction permits on the aging properties that the companies had presented as comparable sales, and found that they’d require millions of dollars in renovations. Running the numbers, he was able to convince the city’s tax board that the Sam’s Club and Menards were really worth about as much as the city said they were. So West Allis saved some cash. Now, though, Sam’s Club is back at it again—this time with a proper lawsuit, to be hashed out in circuit

court.

As I passed sign after sign for the country’s most recognizable retailers along the Wisconsin interstates, it was hard not to weigh what communities have been getting out of the corporate retail bargain. Sprawling out to accommodate their outsize stores has brought some jobs, as well as access to discounted goods. But critics have argued for decades that island-like locations on suburban fringes devour local businesses and hollow out downtowns in communities big and small.

Their competitive edge isn’t just from lower prices: Warehouse-style retailers already tend to pay vanishingly little per square footcompared to other types of shops. And this kind of commercial development consumes all manner of hidden subsidies. (Case in point: Studies have found that Walmart stores attract more police calls than other types of

businesses, yet contribute little for the extra care.) Should dark store theory prevail nationwide, the true costs associated with this retail era may balloon further.But those engaged in the dark store struggle don’t necessarily see the big-box model itself as part of the problem. Williams, whose job is to tally up the true value these stores represent, shops at Menards when he’s not battling them. His wife loves Walmart. “It’s not like Menards is an evil company; I don’t look at it like that,” he said. He can’t blame them for trying to save a few bucks.It was getting later in the afternoon; the parking lot outside Walmarts old and new began to fill. We watched the cars stream in for a moment. Williams shrugged. “This is what people want,” he said. “It works.”


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About the Author Laura Bliss is a staff writer at CityLab, covering transportation and technology. She also authors MapLab, a biweekly newsletter about maps. Her work has appeared in the New York Times, The Atlantic, Los Angeles magazine, and beyond.


pAssessor soft skills

By Nancy Gunderson,Clay County


IN THE WORKPLACE

What is leadership? The Business Dictionary defines it as:

1. The individuals who are the leaders in an organization, regarded collectively.

2. The activity of leading a group of people or an organization or the ability to do this.

Leadership involves:

Establishing a clear vision, Sharing that vision with others so that they will follow willingly, Providing the information, knowledge and methods to realize that

vision, and Coordinating and balancing the conflicting interests of all members and

stakeholders. Source: http://www.businessdictionary.com/definition/leadership.html

“If your actions inspire others to dream more, learn more, do more and become more, you are a leader” – John Quincy Adams


Leadership can mean something different to each of us. It exists all around us – at work, at home and in social settings. You don’t need a title to be a leader, but all good leaders require soft skills to help them work together with others within any organization. Since that is the case, we are constantly using our leadership skills and they will continue to improve with practice.

While researching for the article, certain skills kept coming to the forefront that are important in leadership. Those five skills are:

1. Inspire and Motivate Others 2. Act with Integrity and

Honesty 3. Communicate Clearly 4. Delegate 5. Positive Attitude

Let’s take a little time to explore each of these skills to see how we can use them in our leadership roles we have in our work environments.

Inspire and Motivate Leaders need to inspire those around them to go that extra mile for their employer. Even if you offer a fair wage, that sometimes is not enough to motivate those around you. You may need to build other’s self-esteem with recognition or by giving them a new responsibility. Ask them for input, be a mentor, or something as easy as a simple thank you for a job well done.

Act with Integrity and Honesty Team members need to feel comfortable coming to managers or leaders with their questions and concerns. People tend to trust

individuals that they respect. In a leadership role, one needs to have confidentiality, credibility, and ethics.

Communicate Clearly As a leader, one needs to clearly explain to team members goals, tasks, and expectations. Not only do you have to speak in clear terms, you need to be able to fully listen to those you are communicating with. Be it on a one to one basis or at a full staff meeting. Be available to discuss issues and concerns with your team. Be an active listener, facilitate group conversation and watch for nonverbal signals that you might be displaying or that others are.

Delegate Have you experienced situations where the leader takes on too many of the tasks and then struggles to get anything completed on time? Sometimes a leader thinks that is a sign of weakness if they delegate out tasks, but research shows that it is a sign of a strong leader. You need to know the skill set of all your team members and give them tasks where they can and will succeed at. A leader will prioritize tasks, match

tasks to the right people and will accept feedback from the team.

Positive Attitude We have all heard it before…a positive attitude can go a long way. Create a happy and healthy environment even if things are very stressful and not going quite right. Things are going to happen but keep the true focus on a positive atmosphere and high moral for all. Leaders can show humor, friendliness, encouragement, and be a positive figure.

Leadership and learning are indispensable to each other. —John F. Kennedy

ASSESSOR SOFT SKILLS,, CONTINUED


transitions

By Nancy Gunderson, Clay County Editorial Committee Member

Best Wishes Upon Retirement

Dan Whitman began his assessing career in 1996 when his county wanted to change to a CAMA system. The elderly local assessor in his township didn’t want to learn how to operate one of those fancy micro-computers so they were looking for someone to fill his position. Dan had been a stay-at-home dad with a part-time job managing computer data from his home, so he had experience with computers and the job was just what he needed at the time.

After 3 years as a local assessor, the County Assessor (a good high-school friend of his) had an opening in the office and asked if Dan might be interested in joining the office full time. His kids were both in school by that time and so the full-time position seemed like a good fit and he enjoyed the work.

Dan had been working in the office for 6 years when his boss thought it was a good idea to appoint a Deputy Assessor and Dan was his choice for the job. It took about 2 years to get it approved and to be appointed. On the day the County Commissioners officially appointed Dan the Deputy County Assessor his predecessor turned in his resignation effectively making Dan the County Assessor. Since that day Dan has served as the Martin County Assessor.

During his career, Dan has very much enjoyed getting to know assessors throughout the state through MAAO. Dan has served MAAO as Region 2 Secretary, Region 2 President, Region 2 Director, MAAO PVC Coordinator, Education instructor, a member of the Information Systems Committee, Legislative Committee, Education Committee, Education Steering Committee Chair, GIS/CAMA Committee, Residential Committee and MAAO Executive Officer - President. Some highlights for Dan have been representing Minnesota at the IAAO conference for 4 years during his time on the MAAO Executive Committee and having the opportunity to travel the state.Dan has been extremely active for over a decade on the Executive Board and numerous committees of the MnCCC - COOP. During his time serving MnCCC, we have been helping to maintain and develop a new CAMA System, GIS products and Tax Court user groups on behalf of Minnesota counties.

In Dan’s free time he loves to travel and his beautiful wife of almost 39 years has followed him all over the world. The highlights of their travel have been numerous short-term mission trips to Romania along with mission trips to Congo, Africa and recent work in Mexico. Dan looks forward to continued travel in his retirement. He is planning his first trip of retirement for the day after his last day on the job. They will be leaving for Mexico with the SUV packed to the roof with supplies for a church they work with in Mazatlán. Dan plans to stay there for about 2 months mixing mostly relaxation with a little work helping the poor (especially the kids) in the area.Dan plans to continue working a little as a local in Southern Minnesota during retirement so he hopes to see many old friends in the future.

MAAO wishes Dan the very best in retirement!!

Dan Whitman,Martin County Assessor


Pam OmdahlAnoka County

Pam started working in the Coon Rapids’ Assessor’s Office in 1991 as clerical support. Pam stated that working with Gay Aldinger and Judy Dold was a great learning opportunity. Pam received her CMA in 1998 which opened the door to an appraiser position with Anoka County in 2001. Pam worked there for seventeen years with her jurisdictions over the years being the cities of Blaine and Ramsey. Two great places where she enjoyed the work and the people she worked with.

Pam and her husband Al live in Coon Rapids where they raised their two sons Dillon and Dan. Their family also includes daughter-in-law Aimee and two grandchildren Mason (8) and Ava (5).

Retirement is highly recommended and much busier than Pam thought. Her first month of retirement was April where the highlight was shoveling because of all the snow this year. Her summer has been full of time spent with the grandkids, home projects that never seemed to get done when working and road trips with Ely (her hometown) being a favorite destination. Hoping to head south in February to warmer weather.

We all wish Pam continued enjoyment in her retirement!

Tom Hefty Ramsey County

Tom Hefty retired August 10th, 2018 after 11 years at Ramsey County. Tom spent all of his time with the Commercial Division. He started as a Commercial Appraiser and ended his career as a Principal Commercial Appraiser.

Before coming to Ramsey County Tom worked in finance, owned his own trucking company and worked as a fee appraiser.

Now that he is retired Tom’s initial plans include taking a trip to Arizona, spending time with Family and spoiling the grandchildren. We thank Tom for his numerous contributions to Ramsey County Assessor’s office and wish him well on this next phase of life.

Enjoy retirement Tom!

TRANSITIONS, CONTINUED


More TransitionsBest Wishes Upon Retirement

Ned Stola, City of Coon Rapids

Mary Smith, City of Fridley Jack Purkis, Anoka County

Ken Jagusch, Anoka County

Deb Lynch, St. Louis Park

Diane Scotting, Pipestone County

Marvin Deick, Ramsey County Stephen Baker, Ramsey County

William Graham, Ramsey County

Mike Moranz, Ramsey County

TRANSITIONS, CONTINUED


Adeniran, Emmanuel Ramsey County Emmanuel started his new position as Commercial Appraiser with Ramsey County in April 2018. In addition to holding the CMA, Income Qualified, licensure, he has Bachelor of Science degrees in finance and economics. Emmanuel is an avid soccer man; he gets up early Saturday mornings to follow a variety of FIFA games, regularly attends MN United FC games, and plays every Sunday in a league with old college friends. Emmanuel is also an avid reader.

Anderson, Theo Anoka County Theo joined Anoka County property records division in August 2018 and moved to the assessor’s office as an appraiser in November where he is responsible for the cities of Columbia Heights and Hilltop. He attended college in California and has his CMA licensure. Theo has been married for eleven years and has two children. He has been active with the Minnesota Renaissance Festival for the past eighteen years, including playing Little John in the Robin Hood show for the past ten.

Balder, Nick Aitkin County

Bye, Matthew City of Minneapolis Matt joined the City of Minneapolis as an Assessor I in October 2018. He had previously worked for the City of St. Louis Park, and has applied for CMA licensure. Matt is a graduate of Gustavus Adolphus College where he studied geography. He and his wife run a wedding photography business, Royal Hart Studio, as a side business.

Bulger, Tim Scott County Tim rejoined Scott County as the Deputy County Assessor in June 2018. He began his career in Scott County, with subsequent positions at the City of Minnetonka and Hennepin County. He is a graduated of the University of Minnesota and has a Bachelor of Science degree in economics. Tim and wife Jolene reside in northeast Minneapolis but will likely be relocating in the not-so-distant future in order to reduce his new commute.

welcomeaboard!

Recent New Hires By Mike Bjork, Washington County



WELCOME ABOARD, CONTINUED

Clarke, Lisa City of St. Louis Park Lisa has been with the City of St. Louis Park as an Appraiser since July 2017. She brought over fifteen years of experience as a fee appraiser with her to her new city position, and has achieved the CMA, Income Qualified, licensure.

Crowe, Jordan Wright County

Coralde, Gerald Dakota County

Grahek, Jean Ramsey County

Gruber, Rich City of Coon Rapids Picture submittedRich began his position as City Assessor in July 2018 with the City of Coon Rapids. He has his SAMA licensure and sixteen years assessing experience. He began as a residential appraiser in Coon Rapids in 2002, and worked residential and commercial properties in Maple Grove. Rich is a graduate of St. Cloud State University and has a Bachelor of Science degree in finance. He and wife Molly have been married fifteen years and have four children: Ava, Iris, August, and Eland. They enjoy watching their children’s various sports/activities, going on nature walks, and bike riding. Rich is also interested tennis, bowling, trap shooting, and playing chess.

halter, Troy Ramsey County

heili, Rebecca Washington County Rebecca started as a Property Appraiser I for Washington County in August 2018. She is a Certified General Appraiser and brings five years of commercial appraising experience. The North St. Paul native has one adult son. Rebecca enjoys the outdoors and has taken numerous hiking trips across the country. She is also an avid cross-country skier and snowshoer. Rebecca also loves the movies and supports the Oregon Ducks football team.

hodge, Brandon Dakota County

huskey, Christian Anoka County

Jurek, Jessie City of St. Louis Park Jessie joined the City of St. Louis Park as an Appraiser in August 2018. Jessie had thirteen years of experience as a fee appraiser prior to joining the city, and has the CMA, Income Qualified, licensure.


Kastner, Erin City of Minnetonka Erin started her position as Residential Appraiser in March 2018 with the City of Minnetonka. She has her CMA licensure and a Bachelor of Arts degree in economics from Hamline University. She has six years appraisal experience, having previously worked for Rice County and a fee appraisal firm. Erin coaches high school hockey and plays hockey in a women’s league. She has two miniature dachshunds, Colbie and Rey.

Kochendorfer, Tara Dakota County

Kotelnicki, Matthew Washington County Matt joined Washington County as a Residential Appraiser I in September 2018. Prior to joining the county, he worked for one year in commercial appraising. Matt has a Bachelor of Science degree in applied economics. He is an avid outdoorsman and enjoys nature.

Laleman, Jessica Murray County Jessica joined Murray County as an Appraiser Technician in June 2018. She has a Bachelor of Science degree in biology and previously worked as a high school science teacher. She and husband Greg have two sons, Connor and Theron. Jessica enjoys running, knitting, reading, and spending time together with her family.

Le, huy City of St. Louis Park

Maghrak, Pat City of Fridley Pat began his tenure as the City Assessor for the City of Fridley in August 2018. He has licensure as a CMA, real estate agent, and real estate appraiser, as well as a Bachelor of Science degree in business. He began his assessing career with the City of Coon Rapids and has been with Fridley since 2012, where he has handled tax court petitions and managed the residential assessment. Pat enjoys renovating older homes and fishing and is a long-suffering Vikings fan. He spends time with his twelve siblings, and his nineteen nieces and nephews.

Murphy, Kimberly Pipestone County

Nordell, Ben Dakota County

Putz, Melanie City of Minnetonka

Raboin, Dan Washington County

Runge, Jeanne Dakota County Jeanne began her new position with Dakota County as a Commercial Appraiser in January 2018. She has her SAMA licensure and had seven years of appraisal experience. She had previous work experience in the banking industry, including mortgage, personal, agricultural, and commercial lending. She is married and has two adult sons. Jeanne loves both dogs and cats, and enjoys hiking, fishing, the outdoors, and being with family.



Scheurer, Duane City of Maple Grove

Schroeder, Lee Meeker County

Siltanen, Nick Carlton County Nick accepted his new position as the Carlton County Deputy Assessor in October 2018. He holds real estate realtor and broker licenses and has nineteen years of experience selling real estate. He received his Bachelor’s Degree from the University of Wisconsin-Superior and his Master of Arts Degree from St. Scholastica. He and his wife welcomed their first child this past year. They also enjoy traveling; their son has already been to twelve states in his first five months of life.

Sitek, David Ramsey County Dave joined Ramsey County in June 2018 as a Real Estate Appraiser II, and is working the Highland Park and Summit-University neighborhoods. He had been working as a fee appraiser throughout the Twin Cities metropolitan area and is a Certified Residential Fee Appraiser. Dave grew up in Mounds View and attended St. Mary’s University in Winona. He is married and has an 11-year old son. Dave coaches his son’s hockey team, and enjoys playing golf, going to the family cabin, and working on his home.

Skogquist, Erik Local assessor in Anoka County Erik is self-employed as an independently contracted assessor. He was awarded contracts to assess the communities of St. Francis, Bethel, Ham Lake, and Nowthen in rural Anoka County in the spring of 2018. He began his assessing career in 2006 working under local assessor Robert Pazdernik in Benton, Pipestone, and Murray counties, and has since assumed responsibility for those areas. Erik has earned his SAMA licensure and has a Bachelor of Science degree in urban studies and political science. He and wife Amanda have been married for ten years and have two sons, Everett and Oliver. Much of their time has been dedicated to restoring their 1887-built Italianate home.

Stenzel, Jake Anoka County Jake began his new position as Residential Appraiser for Anoka County in April 2018. He has experience in the real estate field and holds a real estate license, as well as a Bachelor of Science degree in business management. His pursuit of CMA licensure is within reach as he has one class remaining. Jake spends his free time hunting, fishing, and pursuing pretty much anything associated with sports.

Topuzi, Vilma Ramsey County Vilma joined Ramsey County as a Property Appraiser in March 2018. She began her assessing career in 2012 with the City of Brooklyn Park, followed by stops in Ramsey and Rice counties. She enlisted in the U.S. Army and served four years. Upon her return, she renewed her assessing career with Ramsey County. Wilma has a Bachelor of Science in mathematics and is working towards obtaining a Master’s Degree in professional science matters and applied mathematics. She also earned her Certified Minnesota Assessor, Income Qualified, licensure. Wilma was born in Albania and moved to Minnesota in 2008. She enjoys working on puzzles and likes to travel; she has currently been to twenty-five different countries and counting.

Vang, Timothy Dakota County Timothy joined Dakota County as a Commercial Appraiser in November 2017. He has his AMA certification and had previously worked in assessing for Ramsey County, the City of Minneapolis, and Rice County. He graduated from the University of Minnesota with a Bachelor of Arts degree in sociology. He and wife Hlee Moua were blessed with their first child, daughter Mya, this past August. Before parenthood, they loved to travel, bike, kayak, and snowboard together.



Wambach, Michael City of Minneapolis Michael joined the City of Minneapolis in October 2018 as a Residential Appraiser, after interning with the office. He is a University of Minnesota graduate with degrees in global studies and German. He became interested in real estate while studying the management of public space during a year abroad in Berlin. Michael is a huge fan of food and live music. He loves to try out new restaurants and new food and is always on the hunt for hearing a new sound.

Wells, Mary Local assessor in Anoka County Mary is an independently contracted assessor. She recently obtained the contracts to assess St. Francis, Bethel, Ham Lake, and Nowthen in Anoka County, as well as working under Erik Skogquist in Pipestone County. She is not a newcomer to the assessing field or real estate, having worked for the city of Coon Rapids, as well as earning her SAMA licensure and realtor license. Her husband Chris is a local assessor. Together they have five grown children and welcomed their first grandchild this past year. Her hobbies include boating, gardening, walking their dogs in the woods, cooking, and playing the acoustic guitar.


Please email Welcome Aboard information to

[email protected]


Provided by Jake PIdde, Stearns CountyEditorial Committee Member

TAX COURTINLAND EDINBURGH FESTIVAL, LLC

VS.HENNEPIN COUNTY


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Provided by Bobbi SpencerMinnesota Department of Revenue

State Board of Assessors Meeting Minutes

St. Michael City Center Thursday, September 13, 2018

Chairperson Gregg Larson convened the meeting at 9:00am.

Board members in attendance:

Dave Marhula was unable to attend.

Agenda for the September 13, 2018 meeting were reviewed. Gary Amundson moved to approve the agenda. Reed Heidelberger seconded the motion. The motion carried.

Minutes of the July 17, 2018 meeting were reviewed. Andrea Fish moved to approve the minutes. Charlie Blekre seconded the motion. The motion carried.

Updates Form Report Update

Dates Submitted Reports

Approved Reports

Rejected Reports

Reports being Graded

July 1, 2013–December 31, 2013 6 6 0 0 January 1, 2014–June 30, 2014 13 13 0 0 July 1, 2014–December 31, 2014 13 13 0 0 January 1, 2015 – June 30, 2015 15 15 0 0 July 1, 2015 – December 31, 2015 13 12 1 0 January 1, 2016 – June 30, 2016 33 33 0 0 July 1, 2016 – December 31, 2016 26 25 1 0 January 1, 2017 – June 30, 2017 19 17 1 0 July 1, 2017 – December 31, 2017 9 9 0 0 January 1, 2018 – June 30, 2018 18 14 2 0 July 1, 2018 – September 13, 2018 8 5 1 2

Passed Reports (7/1/2013 – 9/13/2018) Received AMA

Received SAMA

Received CMAS

Have not applied for

AMA

158 102 9 8 37

Gary Amundson Charlie Blekre Andrea Fish Jane Grossinger

Reed Heidelberger Joy Kanne Gregg Larson Lori Schwendemann


state board of assessors meeting minutes, continued

Board of Assessors Meeting Minutes September 13, 2018 Page 2 of 7

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Form Report – Second Grading Update: Patrick Chapman sent an email offering assistance to the two assessors that have not turned in their form report for a second grading. It has been over a year since they received the first grading.

Rule Changes: Kyle Gustafson’s latest rule change update “We are ready to move ahead with publishing the Notice of Intent to Adopt Rules for the Board of Assessors rule changes. This will be what is called a ‘dual notice,’ in which we will indicate that the Board will adopt the rules changes without a hearing, unless 25 or more people request a hearing. We are also asking the Office of Administrative Hearings to approve our additional notice plan, under which the Board proposes to send the rule changes and the Notice of Intent to Adopt Rules to all assessors currently licensed by the Board.”

Assessor Licensing System Survey Results: 246 assessors took part in the assessors licensing system survey. Overall, the results are very positive.

PACE Course Update from Gregg Larson: Gregg Larson reported that the course was well done and all of the presenters were very well prepared.

MAAO Curriculum & Assessor Standards Committee Update from Gary Amundson: Gary Amundson reported that the committee is scheduling a meeting in October. More to come in November.

Approved Continuing Education hours Requests 2018 IAAO Annual Conference: Patrick Todd requested CEH’s for this conference being held

on September 23 – 26, 2018 in Minneapolis, MN sponsored by IAAO. The board’s continuing education committee approved this request for 1 to 1.5 continuing education hours for each of the 84 seminars being offered. Per the board’s continuing education policy a minimum of 3 hours is required to receive continuing education hours.

2018 MAAO Fall Conference: Tami Paulson requested CEH’s for this conference being held on September 11 – 13, 2018 in St. Cloud, MN sponsored by MAAO. The board’s continuing education committee approved this request for 4 continuing education hours for each of the 4 seminars being offered.

Charitable, Non-Profit & Religious Facilities Summit: David Kasperson requested CEH’s for this summit that was held on August 10, 2018 in Golden Valley, MN sponsored by Minnesota Real Estate Journal. After seeking input from all board members, the CEH committee denied this request for 4 hours of continuing education. This summit does not have enough relevant assessment instructions to consider it for continuing education hours.

Legal Description Workshop: Mandy Landkamer requested CEH’s for this workshop that will be held on October 24 - 25, 2018 in St. Peter, MN sponsored by The Sidwell Company. The board’s continuing education committee approved this request for 16 continuing education hours.




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Approved Continuing Education hours Requests Credible Cost Approach: Jon Ulman requested CEH’s for this seminar that was held on August

28, 2018 in Bloomington, MN sponsored by Kaplan Professional Schools. The board’s continuing education committee approved this request for 8 continuing education hours.

Making the Transition from Staff to Supervisor: Wesly Oian requested CEH’s for this course that was held on September 11, 2017 in Bemidji, MN sponsored by Fred Pryor Learning Solutions, Inc. The board’s continuing education committee approved this request for 6 continuing education hours.

Rochester Real Estate Development & Investment Summit: Ryan Kraft requested CEH’s for this summit that will be held on October 12, 2018 in Rochester, MN sponsored by MN Real Estate Journal. The board’s continuing education committee denied this request for 4 continuing education hours. This summit does not have enough assessment related education to consider it for continuing education hours.

Vanguard User Group Meeting: Teresa Ellerby requested CEH’s for this meeting that will be held on October 17 – 18, 2018 in St. Cloud, MN sponsored by Vanguard Appraisals, Inc. The board’s continuing education committee approved this request for 10 continuing education hours.

Request for Elective Licensure Courses: Jackie Coulter, MAAO Education Coordinator is requesting the board review the Valuation of Conservation Easements and Other Partial Interests in Real Estate course sponsored by American Society of Farm Managers and Rural Appraisers (ASFMRA) as equivalent to an elective course. Note: This course is a 22-hour course with a 2-hour exam. If someone were to take this course they would still need to take another 15-hour course to meet the required 30 hours to complete the elective course.

Reed Heidelberger made a motion to approve the Valuation of Conservation Easements and Other Partial Interests in Real Estate course as a ½ elective licensure course. Jane Grossinger seconded the motion. The motion carried




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Applications for Certified Minnesota Assessor Andrea Fish made a motion to award the Certified Minnesota Assessor license to the following individuals.

Emmanuel Adeniran, Ramsey County Matthew Ammerman, Dakota County Theodore Anderson, Anoka County Chris Baumberger, Murray County Ron Bushbaum, St. Louis County Cassidy Callies, Hennepin County Angela DeBoer, Martin County Alexis D’Valle, Dakota County Kathleen Elson, Roseau County Mark Fritz, Scott County Jacob Fronden, City of Brooklyn Park Stephanie Gordon, Freeborn County Robert hall, Crow Wing County

Kerri heim, Chippewa County Scott hemmesch, Stearns County Kathy howard, Roseau County Mitchell King, Hennepin County Samantha Kral, Sibley County Lucas Onstad, Houston County (September 14, 2018) Jonathan Packer, Ramsey County Ann Phillips, City of St. Cloud Michelle Quinn, Houston County Chris Rengstorf, Stevens County (September 18, 2018) David Sitek, Ramsey County Karen Skoog, Local Assessor in Becker County Scott Soderman, Isanti County Joey Sullivan, Wabasha County Melissa Weston, Nicollet County Michael Wirth, Swift County Korina Woinarowicz, Marshall County Joe Wulfing, City of Brooklyn Park

Joy Kanne seconded the motion. The motion carried.



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Applications for Accredited Minnesota Assessor

Gary Amundson made a motion to award the Accredited Minnesota Assessor license to the following individual.

heather Bruley, Polk County Jane Grossinger seconded the motion. The motion carried.

Reed Heidelberger made a motion to award the Accredited Minnesota Assessor license to the following individual.

Jeff Sehr, Rock County Andrea Fish seconded the motion. The motion carried.

Jane Grossinger made a motion to award the Accredited Minnesota Assessor license to the following individual.

Candice Lahann, Mower County Lori Schwendemann seconded the motion. The motion carried. Note: Joy Kanne excused herself from the interview with Candice Lahann since they both work for Mower County.

Reed Heidelberger made a motion to award the Accredited Minnesota Assessor license to the following individual.

Dawn Swisher, Otter Tail County Gary Amundson seconded the motion. The motion carried.

Gary Amundson made a motion to award the Accredited Minnesota Assessor license to the following individual.

Craig Walquist, City of Minneapolis Joy Kanne seconded the motion. The motion carried.

Charlie Blekre made a motion to award the Accredited Minnesota Assessor license to the following individual.

Brian Folden, Wadena County Jane Grossinger seconded the motion. The motion carried.




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Application for Senior Accredited Minnesota Assessor

Jane Grossinger made a motion to award the Senior Accredited Minnesota Assessor license to the following individuals:

Erin Benoit, City of Minneapolis Scott deLambert, Hennepin County (effective September 20, 2018) A Thor, City of St. Cloud

Andrea Fish seconded the motion. The motion carried.

Discussion Items Oral Interview Questions: Three of the new version of questions were reviewed by the board.

Discussed the scoring process and that the other questions will be reviewed at a future meeting.

Assessment Experience: The board reviewed the suggested approaches on how to determine assessment experience. Andrea Fish made a motion that for some individuals who do not physically view properties for property tax purposes, there is no time limit where they need initial license. They can apply for a license at any time. The board will review those applications on a case-by-case basis, and may also develop criteria to determine whether the experience is sufficient for one year of experience for a CMA license. Reed Heidelberger seconded the motion. The motion carried. Three board members will work on creating a list of various methods of property tax administration and present to the board at the next meeting. The purpose of this discussion will be to address the types of property tax work that qualifies as assessment experience in order for a candidate to have one year experience for an initial license.

Real Estate Agent & Assessment Experience: The board will work on developing guidelines (described above) that will help determine whether/how much assessment experience a real estate agent would be considered to have.

Assessors with too many parcels: There are concerns that some assessors are taking on to many parcels. The board does not have any right to specify a number of parcels; the responsibility falls on the County Assessor. The County Assessor should monitor the assessor very closely, contact the township board if any discrepancies start appearing with the work that is turned in.

Signatures on Applications: The board discussed whose signature should be on the employment verification for submitted applications. Jane Grossinger made the motion that signatures on the application must be a licensed assessor verifying assessment experience. Lori Schwendemann seconded the motion. The motion carried.




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Discussion Items (cont.)

Continuing Education Requirements: Andrea Fish made a suggestion that at the next licensing cycle allowing 1 hour courses/seminars for continuing education hours. Reed Heidelberger made a motion to accept continuing education requests for a one-hour minimum or more if the course was provided by one of the sponsoring organization listed on the board’s website beginning with the next licensing cycle on July 1, 2020. Andrea Fish seconded the motion. The motion carried.

The chairperson set the next meeting date as Tuesday, November 20, 2018 at the St. Michael City Center in St. Michael at 9:00 am.

Andrea Fish made a motion to pay the expenses for the meeting. Reed Heidelberger seconded the motion. The motion carried.

Charlie Blekre made a motion to adjourn the meeting. Reed Heidelberger seconded the motion. The motion carried.



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