OFFICIAL PUBLICATION OF THE MINNESOTA ASSOCIATION OF ASSESSING OFFICERS MNMAAO.ORG EQUALWinter 2019 Volume 41 Number 155 EYESWINTER 2019 Volume 41 Number 155
The Conference The Member of the Year IAAO The Photo Contest Winner All About Leadership
AfterThe Retail Apocalypse Prepare For The Property Tax Meltdown Editorial MAAO Committee Leadership
Executive Officers President Michelle Moen, SAMA 1st Vice President Teresa Mitchell, SAMA 2nd Vice President Daryl Moeller, SAMA Financial Officer Kyle Holmes, SAMA Past President Patrick Todd, SAMA Lori Thingvold, SAMA Jason Jorgensen, SAMA Wadena County Wright County Regional Directors Managing Editor Associate Editor Committee Chair Region 1 Ryan DeCook, SAMA Region 2 Mike Sheplee, SAMA Region 3 Jean Sowada-Popp, SAMA Region 4 Mike Dangers, SAMA Region 5 Jason McCaslin, SAMA Region 6 Lori Schwendemann, SAMA Region 7 Chris Odden, SAMA Region 8 Terrie Johnson, SAMA Jamie Freeman, SAMA Nancy Gunderson SAMA Region 9 Michele Gelo, AMA Clearwater County Clay County
Committee Chairs Agricultural Doug Bruns, SAMA CAMA and GIS Randy Lahr, SAMA Conference Coordinator Paul Knutson, SAMA, RES Editorial Jason Jorgensen, SAMA Information Systems Jackie Coulter, SAMA Legislative Mark Peterson, SAMA Jake Pidde, AMA Amber Hill, CMA Membership Coordinator Rebecca Malmquist, SAMA, RES Stearns County Polk County Nominating and Procedures Michelle Snobl, AMA Residential Jill Murray, SAMA Rules and Resolutions Daryl Moeller, SAMA Sales Ratio Dell Sanko, CMA Secretary Penny Vikre, SAMA Silent Auction Lorna Sandvik, SAMA Site Selection Lisa Clarke, CMA Strategic Planning Nancy Wojcik, SAMA
Mike Bjork, AMA Missy Manke Summer Seminar Coordinator Kim Jensen, SAMA, CAE Washington County Wright County Tax Court / Valuations Ann Miller, SAMA Treasurer Reed Heidelberger, SAMA
Questions, comments or Educational Workgroups suggestions? Please email Assessor Development Amy Rausch & Patrick Chapman, SAMA [email protected] Course Management Tina Diedrich-Von Eschen, SAMA Course Curriculum & Standards Sherri Kitchenmaster/Jessi Glancey, SAMA Education Coordinator/Online Admin. Jackie Coulter Scholarship Kelly Schroeder, SAMA
2 Equal Eyes | Winter 2019
After the Retail Apocalypse: IN EVERY ISSUE Prepare for the Property Tax Meltdown Commissioner’s Comments 5 Presidential Perspective 6 MAAP Update 14 Classifieds 15 Top 10 16 What You Get For 26 Out of the Past 27 28 Assessor Soft Skills 34 Transitions 36 Welcome Aboard 39 Tax Court 44 SBA Minutes 50
* 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.
Winter 2019 | Equal Eyes 3 From the 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. Lori Lori Thingvold Equal Eyes Managing Editor
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!
4 Equal Eyes | Winter 2019 Commissioner’s Comments By Cynthia Bauerly MN Revenue Commissioner
New Year, Same Commitment to Partnership
January is a special time in Minnesota. who attended gained new insights, valuable expect to release it in February.) Nights grow shorter, skies seem brighter connections, and quality resources to keep • A recent listening session about and bluer, and the winter light and blanket improving their work and the assessment fractional homesteads, where we of snow (usually) beckons us outside. It’s profession. heard your concerns and discussed also a time of transition at the Department Continuous improvement is a core strategy ideas for how to ensure consistent, of Revenue as we move from last year’s at Revenue and — along with adaptability achievable administration of these accomplishments and challenges to this — crucial to our mission of “working often-complex homesteads and how year’s opportunities. together to fund Minnesota’s future.” We they affect property tax credits. (Stay Gov. Tim Walz and Lt. Gov. Peggy Flanagan are always looking for ways to improve the tuned!) were sworn into office on January 7. The instructions, tools, and services we provide • Our current effort to improve the new administration is committed to serving assessors and other local officials. Your Revenue website to make it easier for Minnesotans in every ZIP code across the ideas and feedback also play a key role. all of our customers to find, understand, state. We’ll continue to prioritize our shared and use the information and tools efforts with MAAO to ensure a property Joint efforts we provide. Watch our home page at tax system that is fair and equitable for all Last fall we launched a property tax data revenue.state.mn.us for details about Minnesotans. portal to allow assessors, among others, the beta (preview) site and your chance I’m grateful to Gov. Walz and Lt. Gov. access to customizable property tax reports to weigh in about what you like about Flanagan for the opportunity to continue without having to submit a request and wait it or what could be better. to serve the state, the department, and all for the department. of you as the Commissioner of Revenue. Since launching the portal on September 4, A look ahead It’s an honor to work with MAAO and its we have received a lot of helpful feedback members. Your dedication to excellence and from assessors and other customers. Your The legislative session began January 8, consistency in property tax administration feedback helped us plan additional upgrades with a number of new faces at the Capitol helps fund important services in your to the site in the coming months, such as: including on the House Tax Committee and Property Tax Division. communities — and Minnesota’s future — • Adding more years to the Property Tax Property taxes will no doubt be on the every day. History reports I know the Department of Revenue and docket this year, which provides the chance • Including the Approved County Tax MAAO will continue working together to to improve our property tax system and how List abstracts in the PRISM Summary administer and improve our state’s property we administer it together. Each year, the Reports tax system for the Minnesotans we serve. department welcomes your ideas and your • Upgrading the interactive data tool partnership to help make that happen. Improving together to incorporate maps and other user- friendly features It was a pleasure for many of our team As always, we’ll provide further updates to join you at the 2018 International Other recent and upcoming examples of as the legislative session unfolds. Thank Association of Assessing Officers annual our drive to improve — with your help — you for your service, and Happy New Year! conference in Minneapolis on September include: Cynthia Bauerly is commissioner of the 23-26. • The annual Property Tax Services Minnesota Department of Revenue. A number of MAAO members presented report, which helps the department and and taught at the conference. We thank you counties track how well we’re meeting for sharing your views and lessons with our responsibilities to each other and the rest of the community. I know our staff spot opportunities to improve. (We
Winter 2019 | Equal Eyes 5 president’s perspective
By Michelle Moen, SAMA Isanti County Assessor MAAO President
“The achievements of an organization are the results of the combined effort of each individual.” – Vince Lombardi
Wow, the past couple months have been busy advice and mentorship in the past few years U40/10 group that Kyle Holmes initiated as your new MAAO President. and have built many friendships resulting is growing in size and there are so many from this. talented members that are part of that group. I would like to begin by thanking all you They are showing us that we can change and members of MAAO for the honor of serving This year will bring about a few changes we can accept new fresh ideas. As I look at as President for the next year. I promise to that we are excited to see transpire. We my own office and the generational makeup serve you as best as I can. I believe with all kicked off our new year with a well-attended of my staff, I am learning to embrace what of your help we can have a successful year. Organizational meeting. I am excited to see the younger generation has to offer, just I also would like to thank Past-President new committee chairs that are enthusiastic like they can learn a thing or two from my Kyle Holmes and Past-President Patrick to be part of the Executive Board. generation. Todd for all the assistance they gave me the Our organization continues to grow past 2 years as I transitioned. They both had and expand in a commitment to quality In closing, I hope to serve you well this year successful years and I know I have some education. This year we are collaborating and continue to move MAAO into the future big shoes to fill. I look forward to working with the Appraisal Institute for the Appraisal with the support of all you members. I am with the Executive Board members in the Principles and Appraisal Procedures courses. available at any time with any questions, upcoming year. We believe this will be a successful venture concerns or comments. with the Appraisal Institute and look forward Hope you all enjoy your Holidays and our My first experience with the Executive to the results. Our Education committees wonderful Minnesota winter. I look forward Board was back in 2009 when Stephen welcome suggestions from you as a member to seeing all of you at the Summer Seminars. Hacken was President and brought me on for topics for seminars and weeklong as the Nominating Committee Chair. Being courses. Michelle Moen part of a committee gave me the opportunity Isanti County Assessor to see how beneficial this organization is to The Legislative Committee will soon be MAAO President all members. This year marks 14 years for entering their busy time and we are excited to [email protected] me as a MAAO member. In my short 14 have Matt Hilgart (AMC) as our Legislative years I have had the pleasure in meeting so Liaison this year. Matt presented at our many other members of MAAO through November meeting, giving us an update committees and the Executive Board. on his role with MAAO in this Legislative Like many President’s before me, I really session. The Legislative Committee will encourage all members to be involved with have the opportunity to have an “afternoon MAAO. Being involved does not always at the Capital” allowing the members of the mean stepping up to an Officers position. committee to get acclimated with the capital There is always a need for committee and participate in some testifying training. involvement with Executive Board. MAAO We have a few new committee chairs encourages members with new ideas to this year. At our recent Executive Board come forward to bring enhancement our meeting, we welcomed Carrie Borgheiinck, organization. This is a great way to meet Scholarship Chair; Alex Gruggenberger, others who are able to give guidance Sales Ratio Co-Chair; John Conway, and support in our profession. These Residential Co-Chair; Mike Wacker, relationships we build can be life-long. I Education Steering Chair and Troy Halter, have so many members that have given me U40/10 Chair to the Executive Board. Our
6 Equal Eyes | Winter 2019 2018 IAAO MEMBER OF THE YEAR
Rebecca L. Malmquist, CAE Director 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!
Winter 2019 | Equal Eyes 7 IAAO CONFERENCE PHOTOS
8 Equal Eyes | Winter 2019 Winter 2019 | Equal Eyes 9 10 Equal Eyes | Winter 2019
Winter 2019 | Equal Eyes 11 12 Equal Eyes | Winter 2019 Winter 2019 | Equal Eyes 13 maap UPDATE By Samantha Erpelding, Stearns County MAAP Pesident
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.
14 Equal Eyes | Winter 2019
c Classifieds By Amber Hill, CMA Polk County Editorial Committee Member 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
Winter 2019 | Equal Eyes 15
The Top 10 Skills Every Manager needs to lead their team By Jamie Freeman, SAMA Clearwater County Editorial Committee Member
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.
16 Equal Eyes | Winter 2019
Top 10: SKILLS EVERY MANAGER NEEDS TO LEAD THEIR TEAM, CONTINUED
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
Winter 2019 | Equal Eyes 17 IAAO International Conference Has Best Event Yet! By Patrick Todd City of Minneapolis Assessor
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
18 Equal Eyes | Winter 2019 Highlights from the IAAO conference
Welcome Reception at Mill City Museum
Winter 2019 | Equal Eyes 19 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.
20 Equal Eyes | Winter 2019
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.
Winter 2019 | Equal Eyes 21 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 Judge Lucinda Jesson
22 Equal Eyes | Winter 2019 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.
Winter 2019 | Equal Eyes 23 Pre-Conference Golf Outing at Rush Creek
24 Equal Eyes | Winter 2019 MAAO Group Photo at the Closing Banquet
Winter 2019 | Equal Eyes 25 What You Get For
Fire Stations By Amber Hill, CMA Polk County Editorial Committee Member
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
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
26 Equal Eyes | Winter 2019
clay.minnesotaassessors.com out of the past By Amber Hill, CMA Remembering Yesterday Polk County Editorial Committee Member
5 Years Ago—2014 20 Years Ago—1999 The Department of Revenue first mentioned Equal Eyes Published Louise Thureen, City of the Assessor Orientation “How We Landed the Hibbing, retires. Mrs. program. The intent of the Convention” an article Thureen was a former program was to help new dedicated to Minnesota Editor of Equal Eyes and assessors get started in any hosting the 2018 IAAO the first female MAAO jurisdiction. Today the th 84 Annual International President. Editor Marvin program has been Conference on Anderson made the trip to revitalized and reviews Assessment Hibbing to help see her first began in early 2014. Administration off. Mike Sheehy, Blue Earth 45 Years Ago - 1974 10 Years Ago—2009 County, was President of MAAO. Mike promoted The Minnesota City of Edina residents Department of Revenue the newly established Dan protested against a new was seeking an Franklin Memorial trend: “invasive monster appropriation from the Scholarship. In addition, homes”. The monster 1974 Legislature to he pushed for certified home is a house that is develop a state-wide assessors to work towards more massive than its lot computerized property a higher licensure level. and neighborhood was appraisal system. It was intended, usually built 25 Years Ago—1994 hoped that the system after a tear-down. would be available for the The MAAO website Pete Koole, City of 1975 assessment. receives a facelift. The Bloomington & Robert new updated site features Rudy, Hennepin County 55 Years Ago - 1964 a service called authored a technical article Dan Franklin advised the “memberclicks’ and has explaining the origins and membership on the increased database practice of using fee upcoming county assessor searching capabilities. simple interest in assessed vacancies. He asked valuations 15 Years Ago—2004 outgoing assessors to 30 Years Ago – 1989 “acquaint your board with In an effort to encourage your job, advising them assessors to obtain higher City of Minnetonka that it takes a well- designations, there were Property Appraiser qualified and capable discussions between the Edward Hervin concluded person to replace you”. State Board of Assessors, that property values in his Mr. Franklin also made MAAO, and the jurisdiction were first mention of the Department of Revenue increasing by 4.93% per MAAO jobs board. on whether additional year. His findings came options should exist to from a study of the city obtain the AMA or paired sales, prompted by SAMA. Out of these taxpayer concerns. discussions, the Income Case Study Exam was born.
Winter 2019 | Equal Eyes 27 After the Retail Apocalypse, Prepare for the Property Tax Meltdown
By Laura Bliss, City Lab reprinted with permission
NOV 14, 2018
ig-box retailers nationwide are Wisconsin city’s operating budget since sounding term that administrators have B becoming mayor in 2011, and stressed its given to a head-spinning legal argument slashing their property taxes through a legal loophole known as “dark store theory.” For efforts to bring more business to town. taking cities across the U.S. by storm. the towns that rely on that revenue, this Big-box retailers such as Walmart, Target, could be a disaster. So you might be surprised to learn Meijer, Menards, and others are trimming that Sadownikow (he instructed me to their expenses in a forum where few WEST BEND, WI—Kraig Sadownikow pronounce his name like sat-on-a-cow) residents are looking: the property tax doesn’t look like an anti-corporate crusader. is personally boycotting two of the assessment process. With one property tax The mayor of West Bend, Wisconsin, biggest big-box retailers in his town, appeal after another, they are compelling stickers his pickup with a “Don’t Tread Walmart and Menards, the Midwestern small-town assessors and high-court on Me” snake on the back window, a GOP home improvement chain. He’s avoiding judges to accept the novel argument that elephant on the hitch, and the stars-and- shopping at these companies’ stores until their bustling big boxes should be valued stripes logo of his construction company they cease what he sees as a flagrant like vacant “dark” stores—i.e., the near- across the bumper. exploitation of West Bend’s property tax worthless properties now peppering system: repeat tax appeals that, added up, America’s shopping plazas. could undermine the town’s hard-won His fiscal conservatism is equally well fiscal health. To hear it from opponents, this emerging billboarded: In the two hours we spent at legal phenomenon essentially weaponizes City Hall and cruising West Bend in his Sadownikow is one of many unlikely an already grim retail landscape. But it’s plush truck, Sadownikow twice mentioned combatants who have lined up against not always clear who’s right and wrong— the 6 percent he has shaved off the “dark store theory.” That’s the ominous- dark store theory is a battlefield muddied
28 Equal Eyes | Winter 2019 After the retail apocalypse, continued
in the cryptic laws and upside-down logic have also appealed their valuations, year appeal, and where state legislatures and of commercial property valuation. The after year after year. “It’s a bleeding out.” supreme courts have considered it. (Data: potential slam to vulnerable tax bases is Wauwatosa and West Bend are two of the September 2018 IAAO member survey tangible, however. If the stores prevail in countless communities around the U.S. conducted by CityLab, legal records West Bend, for example, it would reduce confronted with dark store appeals that searches on Westlaw and Justia, interviews property values by millions of dollars, cities worry could be ruinous. A survey with tax assessors, lawyers, and municipal force the city to refund hundreds of conducted by CityLab of the International finance experts. Map: Madison McVeigh/ thousands of dollars in back taxes, and set Association of Assessing Officers, a society CityLab) back payments on the public infrastructure for property valuation and tax policy that the town built to lure these retailers in professionals, found that these types of In Wisconsin, at least 230 cases have the first place. That could result in higher appeals have been filed in at least 21 U.S. been filed across 34 counties since 2015, taxes for residents, fewer police officers, states over the past 10 years. The appeals many of them repeat appeals for the same firefighters, and teachers, and potentially, a likely number in the thousands, based on properties, by the top three attorneys mess of public debt. CityLab’s review of legal databases and representing retailers. In Michigan, more
“They are holding the communities for dozens of interviews with property tax than $75 million in tax value was lost from ransom,” said Shannon Krause, the assessor experts. the rolls from related appeals between in Wauwatosa, Wisconsin, where Lowe’s, 2013 and 2015. In Indiana, an estimated This map gives a sense of where cities and $3.5 billion in property value is on the Nordstrom, Best Buy, Meijer, and others counties are facing this novel type of tax line. Texas stands to lose $2.6 billion
Winter 2019 | Equal Eyes 29 After the retail apocalypse, continued
per year if successful appeals become of 2017, the city had valued that store at stores went dark. Besides, the market for widespread, according to the Republican $11 million, a number based on what the big boxes is too small to rely solely on state comptroller Glenn Hegar. “No one property had cost the owner to buy back in sales; construction costs and property likes paying taxes, including me,” Hegar 2001, plus the added value of renovations incomes also have to be taken into account. wrote in the Austin American-Statesman over the years, adjusted at the going rate And many of these vacant and depreciated in 2017. “But I have a significant problem of depreciation. These are the methods he properties would need major repairs when large corporations and their lobbyists uses for every type of property, Williams to achieve a state of “highest and best try to manipulate the tax system to lower told me, following those rules in his use,” which would be a more appropriate their property taxes … Dark store theory handbooks. “I’m not saying my numbers comparison for an open and fully updated is corporate welfare of a particularly ugly are necessarily the best ones out there,” store. kind.” Williams told me. “But they’re what I get . when I run the math.” Besides, there’s something plainly illogical Born of the post-recession retail apocalypse about the argument. “Do you want me and spread by a cottage industry of “no-win, But a tax agent from Chicago filed an to value your house as if it’s closed and no-fee” tax consultants, dark store theory appeal on behalf of Sam’s Club, arguing boarded up?” said Krause. could foreshadow an even larger threat to that the store was worth just $7.2 million, local finances—a weakening of the basic based on the low sales costs of a handful So, case closed? Not quite. The vast social contract underpinning the property- of second-generation big box locations majority of dark store appeals brought by tax apparatus that keeps cities and towns scattered around the state. The comparables big boxes—many of which ask for write- afloat. And here’s the rub: The ruthless that the agent provided included three downs of 50 percent—are being settled logic helping these brick-and-mortar giants former locations of the now-defunct for a lower valuation, probably in the dodge their taxes might make a lot of sense. electronics retailer American TV, an old ballpark of 85 percent, Thomas Hamilton, Lowe’s, a former Target, and a former a professor of real estate at Roosevelt Jason Williams, the assessor for the city of Walmart (actually, the same property in University, told me. Many assessors strive West Allis, Wisconsin, pressed flat a stack Greenfield Williams and I were standing in to be conservative in their estimates, so of PowerPoint print-outs against the trunk front of now). All of them sold for between they usually try to find a happy medium of his black Impala. We were standing in $2 million and $4.5 million between 2012 when taxpayers protest. Plus, it’s costly to the giant moat of parking surrounding a and 2014: much lower sales prices than litigate. Walmart Supercenter in the neighboring what their original owners had purchased community of Greenfield. It stands next to them for years before. Some had second- Yet dark store theory appeals have been a smaller big-box store, now subdivided generation occupants; some were bank- incessant, and small towns feel outgunned. into a non-denominational church and a owned. Retailers come back, year after year, thrift shop. This second property used to be insisting on paying less, even after they’ve the Walmart in town, before it became one Jason WIlliams makes the case against been granted reductions. For them, every of many empty shells the discount giant dark store theory outside a church that demand brings the opportunity for a lower has sloughed off in the past decade as it has moved into Greenfield, Wisconsin’s old valuation, and there’s no real financial upgraded to its preferred, more gigantic Walmart. Beside it stands a new, much downside, with outside tax lawyers working model. larger Walmart. (Laura Bliss/CityLab) for contingency fees. “They’re forcing the Big-box defenders argue that the “sales hands of municipalities to go to court, and Williams chose this spot because this approach” (what someone recently paid then they keep bargaining it down,” said reptilian skin-shedding of big-box chain for a similar property) is the best way Krause, the assessor in Wauwatosa. Repeat retailers helps frame dark store theory. It’s to determine a building’s value. And in appeals from Lowe’s, Best Buy, Meijer, about the second lives of these oversize many states, including Wisconsin, sales and others dating back to 2013 have cost retail spaces, and about how much their are supposed to be the first variable in the her city $2.4 million in legal fees. outer casings are worth—when they’re valuation equation, whenever possible. vacant, and when they’re occupied. In Therefore, retailers’ lawyers say, a Sam’s Sources: Wisconsin Policy Forum, other words, it’s about what counts as Club valued at $11 million is overvalued, Wisconsin Circuit Court Access, Wisconsin market value. because its neighbors are selling for a third League of Municipalities. of that amount. In a real estate market “They’re literally using closed, boarded- that’s oversaturated with retail closures, Fighting dark store appeals is costly, but up stores as comparables for a recently bankruptcies, and vacancies galore, so is acquiescence. If six properties under renovated, vibrant property.” they insist, no one wants a big box store dispute in Wauwatosa won their appeals, anymore. If you just look at the sales prices, local government (including the city, school In the biting Wisconsin wind, Williams they are often not wrong. district, county, and sewage district) would showed me a photo of the Sam’s Club owe them $22.5 million in tax refunds, in West Allis that he battled last year, But assessors say that this misses what according to the city’s data. If West Bend and which he is now fighting again. (He gives a functional property its value. reduced its assessments for Walmart and didn’t want to visit this store in person Location is everything in real estate—there Menards by 50 percent, as both stores have with me because of the legal dispute.) As may be a good reasons why some of those basically asked, it would cost the city about
30 Equal Eyes | Winter 2019 After the retail apocalypse, continued
$220,000 per year in lost revenue, or about away. Yet this theory is winning over courts. made all of them—alive or dead, occupied 1 percent of its annual operating budget. Though most appeals are settled informally or not—worth a lot less than you’d think. It would also have to refund the stores by assessors, a small and growing portion “They come in promising jobs and to add $540,000 for all the years of assessments are getting kicked up to local tax boards, to the tax base—more development, more that the stores are disputing. (The city has circuit courts, and in a few states, state tourism, more people coming in. Now look already lost thousands from a Shopko it supreme courts. In about half of these cases, at what they’re doing.” settled with; the local school district also justices are siding with big box proponents. had to refund $60,000 over related cases.) Dark store theory has “largely withstood Working mostly on contingency fees, Hill The tax-base pinch might not be so painful judicial scrutiny, leading to hundreds of flies around the country to fight for Walmart, if just a few cases are successful. The fear store devaluations and to hundreds of Menards, and others. When I reached him is that victories could set a precedent, and millions of dollars in estimated lost tax by phone, he was in Colorado, surveying that the argument spreads to industrial revenue to local governments,” according a Walmart with a colleague. “The trend- properties and other types of commerce. In to a January 2018 report by S&P Global line for these buildings is that they’re too Wisconsin, because there’s a property tax Ratings, which warned investors of the risk big, and they sell for warehouse prices,” levy cap, assessors told me that existing the issue poses to municipal budgets. he told me. “It’s not great construction. homeowners, renters, and small businesses The ceilings are too high. Where are the would eventually have to pay more in There’s a good reason why dark store dock doors? If you want to put product in order to recoup the predicted losses from theory emerged in the wake of the Great a warehouse, these are going to be the last widespread big-box appeals. Recession, as empty “ghost boxes” places you want to buy.” pockmarked the suburbs and exurbs of Wauwatosa might have more dark store the upper Midwest. After the economic Why would one of these retail behemoths theory litigation in action than any town in shock of 2008, consumer spending tanked, be worth any more or less than an identical America. According to the city, these six sending business on Main Streets and one a few exits away, just because it was properties are all fighting for substantial shopping plazas alike into the red. Today, currently open and the other wasn’t? “I property tax reductions, in many cases combined with the rise of Amazon and don’t know if these assessors give a rat’s greater than 50 percent. Note that Mayfair web-based shopping, once-mighty retail patootie about functional obsolescence,” Mall’s argument centers on the value of its giants keep tumbling. In October, 125-year- Hill said. lease—a different but related issue. (Data: old Sears filed for bankruptcy, with plans to City of Wauwatosa. Note that assessed close 46 stores by Christmas; Toys ‘R’ Us Hill made no bones about the fact that these values for 2018 are the city’s estimates shuttered more than 700 locations around companies are looking to trim costs where based on the 2017 tax rate. Map: David the country earlier this year. According to they can, as they are entitled to do. What Montgomery/CityLab) Bloomberg, from the beginning of 2018 matters here is ultimately fair taxation, he through April, U.S. store closures had hit insisted. “How many taxpayers do you What if every national chain store around 77 million square feet. know that would be willing to pay based on successfully slashed their obligations using an assessment that’s five times more than dark store theory and similar arguments? The Detroit-based tax attorney Michael they’re able to sell their properties for?” he According to an analysis by the Wisconsin Shapiro has been credited with pioneering said. League of Municipalities, the average the technique of using “dark stores” as homeowner across seven cities could sales comparisons. In 2010, Shapiro helped In Hill’s formulation, corporations wind up paying an extra $385 per year in lower the valuation of a Michigan Target by need to defend themselves from being property taxes. about half using dark store theory (the term “discriminated against” by assessors who itself was later coined by assessors). Since intentionally overtax successful businesses. Or they’d have to cut services, which has then, he’s fought dozens of such cases on That is why he works on such a wide scale. already happened in small towns across behalf of retailers; in 2015, he told the “We eat what we kill,” he said. “We kill Michigan. In Sault Ste. Marie on the Detroit Free Press he estimated that more only because they need to be killed.” Upper Peninsula, a battle with Walmart than 90 percent of big-box stores around Kraig Sadownikow, mayor of West forced the city to make pension cuts. In the state had been revalued in this manner. Bend, Wisconsin, is a bumper-sticker the city of Escanaba, an ongoing battle Robert Hill, a Minnesota-based tax conservative and an opponent of dark store with a Menards has led to reduced library attorney, and his Madison-based counsel theory. (Laura Bliss/CityLab) hours. (Walmart, Menards, Target, Home seem to have filed the bulk of appeals and Depot, and Meijer, did not return CityLab’s lawsuits around Wisconsin. His argument’s It’s not hard to see how an aggressive requests for comment. Lowe’s referred me strength seems to be its simplicity: “Who defense like his could come across more to the Retail Industry Leader’s Association, needs these things?” Hill told a local forcefully in a courtroom than the jargon- which hasn’t responded; we’ll update this newspaper last year. “These things are so heavy, procedural talk of a municipal story if it does.) darn big.” bureaucrat. The practices cities and It might seem absurd that a corporation can counties use to assess properties may be insist that a bustling big box is worth little In other words, the United States is fatally standardized in professional handbooks, but more than a worn-out husk many miles oversupplied with big boxes. And that has they are by no means black-and-white—not
Winter 2019 | Equal Eyes 31 After the retail apocalypse, continued
like the stark portraits of taxpayer injustice great lengths to lure mega-retailers in For the last two years, Wisconsin mayors that Hill painted. Property assessment with public subsidies and tax benefits. and assessors have been testifying before is complicated, and not all practitioners For example, West Bend spent nearly $16 Madison lawmakers with charts, graphs, explain their methods clearly. million to build infrastructure on once- and reams of spreadsheets that spell out vacant farmland solely to attract Menards how costly this battle could get. Last year, What’s more, when I asked city officials and Walmart, Sadownikow told me, with 19 of the state’s 33 senators (10 Democrats to explain the precise legal flaw with the plan to finance that with the future and nine Republicans) signed onto a bill dark store theory, many appealed to plain growth in property taxes. Now, if the stores crafted in part by the League of Wisconsin common sense. “They’re literally using successfully slash their payments, the city Municipalities, but it failed to reach a vote. closed, boarded-up stores as comparables would be forced to drag out its timeline for There may be more hope now that Governor for a recently renovated, vibrant property,” paying off that investment. This also raises Scott Walker is on his way out, advocates Sadownikow said. the specter of debt. said. It also helps that 76 percent of voters across 24 towns voted yes on referenda As crazy as that sounds, Hill has been able It’s like a betrayal, Krause told me. “They this August and November, demanding to counter that point quite effectively, and come in promising jobs and to add to that legislators close the so-called “dark in legal terms. Similarly, local leaders have the tax base—more development, more store loophole.” In the lead-up to this tended to focus on the injustice of these tourism, more people coming in,” she said. year’s midterms, dark store theory became shrewd lawyers preying on small towns “Now look at what they’re doing.” a talking point among candidates for local to plump up corporate bottom lines. The and state office. David-and-Goliath optics aren’t flattering, Sources: Michigan Association of but that’s not Walmart’s problem. For better Counties, CityLab IAOO survey, Austin Still, it’s going to be tough: Don Millis, or worse, every U.S. taxpayer has the right American-Statesman, Association of a prominent tax attorney who represents to attempt to haggle down their property Indiana Counties property tax analysis, retailers and a lobbyist for the Wisconsin taxes. And some of the biggest retailers in provided to CityLab. Manufacturers and Commerce, the top the country have a powerful new tool at advocacy group for big business in these their disposal. In so many ways, it seems the tax code no parts, sits on the legislative committee longer fits the players, and that may include assigned to review the issue. When you zoom out from these byzantine property assessment. And dark store theory quarrels, the woes of the taxman look may be bigger than big boxes: As challenges Other states have proposed legal fixes, too, even grimmer. Property assessments are spread geographically, city administrators but in Indiana, the one state that managed but a small and emerging frontier for fear the tactic will catch on among other to pass anti-dark store theory legislation creative tax workarounds among large property classes, with fast food outlets, in 2015, lobbying pressure led to its U.S. corporations. Thanks to offshore tax banks, grocery stores, and office buildings weakening the year after it was passed. The havens and other breaks and loopholes, deploying similar arguments in an effort state tax board has continued to sympathize many names in the Dow 30 have for years to slash their tax obligations. Indeed, legal with retailers, who keep launching appeals. enjoyed a shrinking tax burden as a share records show that this is happening: Two If Wisconsin managed to change its laws, of their profits. A 2013 Washington Post Hy-Vee supermarkets in Iowa have asked Hill told me, lawyers like him would just analysis found that the share of income for write-downs using vacant properties. redouble their efforts. “That’s when we’ll Walmart paid in taxes dropped by 24.3 A Steak ‘n Shake in Warren County, Ohio, grab the pitchforks and get the Constitution percentage points between 1971 and 2012. has made a similar argument about the involved,” he said. Home Depot’s fell by 12.5 points between value of its lease. 1971 and 2012. Today, President Trump’s And the judicial system? Some state $1.5 trillion tax code overhaul has boosted What if no one can agree about what any supreme courts are hearing about the issue, GDP and economic growth, at least type of property is worth? That way lies but it seems that theirs is not always the temporarily. But one year in, corporate tax serious fiscal havoc. For local government final word. In Michigan, Escanaba has yet revenues have also dropped by one-third. to successfully operate police departments, another upcoming court date with Menards, And the new cap on state and local tax school districts, and other public services, even though the high court rejected the deductions threatens to further pressure “the tax depends on an agreement about retailer’s last appeal in 2017. In June, city and school budgets. what the basis for market value is,” said Patrick Jordan, the city manager, wrote Joan Youngman, a senior fellow and an impassioned letter to fellow municipal Historically speaking, brick-and-mortar chair of the Department of Valuation and leaders across Michigan, pleading for retailers haven’t had as much luck in Taxation at the Lincoln Institute of Land donations in support of the ongoing legal lobbying for federal tax breaks compared Policy, told me. “A new theory has come campaign. to peers in tech and manufacturing, such along that challenges the usual practice, This next decision could set the stage for as Amazon, Facebook, and Boeing. and it needs to be answered.” tax rolls across the country, Jordan argued. But at the state and local level, they’ve “National retailers have been waiting and scored generous incentives. Hungry for The law will have to settle the matter, but preparing for the Menards remand hearing development, many communities go to it’s not clear when that day is coming. due to its long-term implications,” he
32 Equal Eyes | Winter 2019 After the retail apocalypse, continued
wrote. “This fight is a fight for all local court. businesses, yet contribute little for the extra units and not Escabana’s fight alone.” care.) Should dark store theory prevail Still, it’s not clear that one state can set a As I passed sign after sign for the nationwide, the true costs associated with precedent: A few years ago, Indiana’s state country’s most recognizable retailers this retail era may balloon further. supreme court sided with a Kohl’s. along the Wisconsin interstates, it was But those engaged in the dark store struggle hard not to weigh what communities have don’t necessarily see the big-box model In the short term, the best bet for cities and been getting out of the corporate retail itself as part of the problem. Williams, counties may be assessors who are able to bargain. Sprawling out to accommodate whose job is to tally up the true value effectively resist dark store arguments by their outsize stores has brought some jobs, these stores represent, shops at Menards clearly explaining their methods. After his as well as access to discounted goods. when he’s not battling them. His wife loves predecessor allowed a substantial reduction But critics have argued for decades that Walmart. “It’s not like Menards is an evil to a Target that appealed in 2016, Williams island-like locations on suburban fringes company; I don’t look at it like that,” he decided to defend his methodology devour local businesses and hollow out said. He can’t blame them for trying to save against Sam’s Club and Menards. He downtowns in communities big and a few bucks. pulled construction permits on the aging small. It was getting later in the afternoon; the properties that the companies had presented parking lot outside Walmarts old and new as comparable sales, and found that they’d Their competitive edge isn’t just from began to fill. We watched the cars stream require millions of dollars in renovations. lower prices: Warehouse-style retailers in for a moment. Williams shrugged. “This Running the numbers, he was able to already tend to pay vanishingly little is what people want,” he said. “It works.” convince the city’s tax board that the Sam’s per square footcompared to other types
Club and Menards were really worth about of shops. And this kind of commercial E as much as the city said they were. So West development consumes all manner of E Allis saved some cash. Now, though, Sam’s hidden subsidies. (Case in point: Studies Club is back at it again—this time with a have found that Walmart stores attract proper lawsuit, to be hashed out in circuit more police calls than other types of
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.
Winter 2019 | Equal Eyes 33 pAssessor By Nancy Gunderson, Clay County Editorial Committee soft skills Member
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, 34 Equal Eyes | Winter 2019 you are a leader” – John Quincy Adams ASSESSOR SOFT SKILLS,, CONTINUED
Leadership can mean something individuals that they respect. In a tasks to the right people and will accept different to each of us. It exists all leadership role, one needs to have feedback from the team. around us – at work, at home and in confidentiality, credibility, and ethics. 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: Communicate Clearly 1. Inspire and Motivate Others Positive Attitude 2. Act with Integrity and As a leader, one needs to clearly Honesty explain to team members goals, tasks, We have all heard it before…a positive 3. Communicate Clearly and expectations. Not only do you have attitude can go a long way. Create a 4. Delegate to speak in clear terms, you need to be happy and healthy environment even if 5. Positive Attitude able to fully listen to those you are things are very stressful and not going communicating with. Be it on a one to quite right. Things are going to happen Let’s take a little time to explore each one basis or at a full staff meeting. Be but keep the true focus on a positive of these skills to see how we can use available to discuss issues and atmosphere and high moral for all. them in our leadership roles we have in concerns with your team. Be an active Leaders can show humor, friendliness, our work environments. listener, facilitate group conversation encouragement, and be a positive figure. and watch for nonverbal signals that you might be displaying or that others Inspire and Motivate are.
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 Leadership and learning are recognition or by giving them a new indispensable to each other. responsibility. Ask them for input, be —John F. Kennedy a mentor, or something as easy as a
simple thank you for a job well done.
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 Act with Integrity and leader thinks that is a sign of weakness Honesty if they delegate out tasks, but research shows that it is a sign of a strong leader. Team members need to feel You need to know the skill set of all comfortable coming to managers or your team members and give them leaders with their questions and tasks where they can and will succeed concerns. People tend to trust at. A leader will prioritize tasks, match
Winter 2019 | Equal Eyes 35 transitions
Best Wishes Upon Retirement
By Nancy Gunderson, Clay County Editorial Committee Member
Dan Whitman, Martin County Assessor
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!!
36 Equal Eyes | Winter 2019 TRANSITIONS, CONTINUED
Pam Omdahl Anoka 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!
Winter 2019 | Equal Eyes 37 TRANSITIONS, CONTINUED More Transitions Best 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
38 Equal Eyes | Winter 2019 welcome aboard!
Recent New Hires By Mike Bjork, Washington County Editorial Committee Member
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.
Winter 2019 | Equal Eyes 39 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 submitted Rich 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.
40 Equal Eyes | Winter 2019 WELCOME ABOARD, CONTINUED
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.
Winter 2019 | Equal Eyes 41 WELCOME ABOARD, CONTINUED
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.
42 Equal Eyes | Winter 2019 WELCOME ABOARD, CONTINUED
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]
Winter 2019 | Equal Eyes 43
TAX COURT INLAND EDINBURGH FESTIVAL, LLC VS. HENNEPIN COUNTY Provided by Jake PIdde, Stearns County Editorial Committee Member
44 Equal Eyes | Winter 2019 TAX COURT, CONTINUED
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Winter 2019 | Equal Eyes 47 TAX COURT, CONTINUED
48 Equal Eyes | Winter 2019 TAX COURT, CONTINUED
Winter 2019 | Equal Eyes 49 State Board of Assessors Meeting Minutes St. Michael City Center
Thursday, September 13, 2018 Provided by Bobbi Spencer Minnesota Department of Revenue
Chairperson Gregg Larson convened the meeting at 9:00am.
Board members in attendance:
Gary Amundson Reed Heidelberger
Charlie Blekre Joy Kanne Andrea Fish Gregg Larson Jane Grossinger Lori Schwendemann
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 Submitted Approved Rejected Reports being Dates Reports Reports Reports 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 Have not Received Received Received Passed Reports (7/1/2013 – 9/13/2018) applied for AMA SAMA CMAS AMA 158 102 9 8 37
50 Equal Eyes | Winter 2019 state board of assessors meeting minutes, continued
Board of Assessors Meeting Minutes September 13, 2018 Page 2 of 7
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.
Winter 2019 | Equal Eyes 51 2 state board of assessors meeting minutes, continued
Board of Assessors Meeting Minutes September 13, 2018 Page 3 of 7
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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Board of Assessors Meeting Minutes September 13, 2018 Page 4 of 7
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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Winter 2019 | Equal Eyes 53 state board of assessors meeting minutes, continued
Board of Assessors Meeting Minutes September 13, 2018 Page 5 of 7
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.
5 54 Equal Eyes | Winter 2019 state board of assessors meeting minutes, continued
Board of Assessors Meeting Minutes September 13, 2018 Page 6 of 7
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.
6 Winter 2019 | Equal Eyes 55 state board of assessors meeting minutes, continued
Board of Assessors Meeting Minutes September 13, 2018 Page 7 of 7
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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56 Equal Eyes | Winter 2019 Official Publication of the Minnesota Association of Assessing Officers mnmaao.org
Winter 2019 | Equal Eyes 57