Official Publication of the Minnesota Association of Assessing Officers mnmaao.org
Spring 2014 Volume 36 - Number 136 EQUAL EYES Effective and Efficient Negotiations
There’s An App For That ... Stearns County gives details
Top Home Trends 2014
find out what our new county assessors have in common Fo W
Equal Spring 2014 Eyes Vol. 36 - No. 136 Official Publication of the Minnesota Association of Assessing Officers
Editor’s Note Welcome Spring! It’s been a long, cold winter and I hope this season finds you happy, healthy, and ready for review. May this issue of Equal Eyes be as rewarding to you as the work that goes into creating it. Jake, Jamie, Mike, Nancy, and Solomon....thank you! 35 You put your best foot forward There’s An App 13 Top Home Trends and together we make it happen. For That 2014 The true definition of teamwork.
Lori Thingvold, AMA Equal Eyes Managing Editor
On the Cover: The Mary Tyler Moore bronze statue located at 700 Nicollet Global Assessment 26 Mall, Minneapolis. (Courtesy of Trends: Ghana Meet Minneapolis). The iconic Mary Richards tossing her hat in the air is symbolic of working Columns women. In this issue we meet Commissioner’s Comments ...... 4 working women - our newest .5 County Assessors. Ironically, Assessor X ...... 34 The “Mary Tyler Moore” house A Letter from the Editor ...... is for sale....see our Classif- 35 Eyeds featured home. Departments 4 In The Know 19 New SAMA & AMA Designees Article to suggest, letter 6 International Items 23 State Board of Assessors Minutes to the editor, or any other 7 MAAP Update Transitions correspondence for EQUAL 29 EYES? 9 Out of the Past 32 Classif-Eyeds 10 Assessor Soft Skills 33 What’s New on the Web Send To: Equal Eyes 12 Let’s Get Acquainted Managing Editor Tax Court Abstract 10 NW 2nd St. Room 240 17 Buffalo, MN 56510 * The statements made or opinions expressed by authors in Equal Eyes do not necessarily [email protected] represent a policy position of the Minnesota Association of Assessing Officers.
2 Equal Eyes | Spring 2014 In
Editorial MAAO Board Leadership
Executive Officers
Lori Thingvold, AMA President Marvin Anderson, SAMA Wright County 1st Vice President Dan Whitman, SAMA Editor 2nd Vice President Nancy Wojcik, SAMA Financial Officer William Effertz, SAMA Past President John Keefe, SAMA
Regional Directors Solomon Akanki, SAMA Region 1 Ryan Rasmusson, SAMA City of Brooklyn Park Region 2 Bridget Olson, SAMA Committee Chair Region 3 Daryl Moeller, SAMA Region 4 Mark Peterson, SAMA Region 5 Lorna Sandvik, SAMA Region 6 Marc Iverson, SAMA Region 7 Doug Walvatne, SAMA Jamie Freeman, SAMA Region 8 James Haley, SAMA Clearwater County Region 9 Angela Johnson, SAMA
Committee Chairs Agricultural Jeanne Henderson, CMAS CAMA and GIS Randy Lahr, SAMA Conference Coordinator Paul Knutson, SAMA, RES Editorial James Haley, SAMA Nancy Gunderson SAMA Clay County Information Systems Kelly Baillet, SAMA Legislative William Effertz, SAMA Membership Coordinator Rebecca Malmquist, SAMA, CAE Nominating and Procedures Michelle Moen, SAMA On-Line Administrator Lori Schwendemann, SAMA PVC Coordinator Joy Kanne, AMA
Jake Pidde, AMA Rules and Resolutions Steve Sinell, SAMA City of Plymouth Sales Ratio Michael Thompson, SAMA Secretary Thomas May, SAMA AAS Silent Auction Jane Grossinger, SAMA Site Selection Luis Rosario, SAMA Strategic Planning John Keefe, SAMA Summer Seminar Coordinator Kim Jensen, SAMA, CAE Michael Stalberger, SAMA Tax Court / Valuations Joshua Hoogland, SAMA Blue Earth County Treasurer Reed Heidelberger, SAMA
Educational Workgroups Assessor Standards Michael Stalberger, SAMA Assessor Development Teresa Mitchell, SAMA Course Management Tina Diedrich-Von Eschen, SAMA Vacancy Course Curriculum Bob Wilson, SAMA, CAE Contact Equal Eyes Education Kim Jensen, SAMA, CAE ? Scholarship Joy Kanne, AMA
3 Equal Eyes | Spring 2014 In the Know
Summer issue deadline June 1, 2014
2014 Week-long courses at a glance
Assessment Laws and Procedures July 7-10, 2014 Best Western-Kelly Inn, St Cloud
Residential Case Study Workshop July 16, 2014 Best Western-Kelly Inn, St Cloud
Appraisal Principles July 21-24, 2014 Best Western-Kelly Inn, St Cloud
Appraisal Procedures August 4-7, 2014 Best Western-Kelly Inn, St Cloud
Basic Income Approach August 11-15, 2014 Best Western-Kelly Inn, Plymouth
Mass Appraisal Basics August 25-29, 2014 Best Western-Kelly Inn, St Cloud
IAAO 102 Income Approach to Valuation September 15-19, 2014 Best Western-Kelly Inn, Plymouth
Preparing for Minnesota Income Case Study w/ optional exam September 29-30, 2014 Best Western-Kelly Inn, Plymouth
Minnesota Assessment Administration October 6-9, 2014 Best Western-Kelly Inn, Plymouth
Summer Seminars are coming May 21-22
4 Equal Eyes | Spring 2014 Commissioner’s Comments Warming Up For Spring Tax Appeal Season
Written by Myron Frans Minnesota Commissioner of Revenue
Spring in Minnesota means many things: year. While assessors are not voting BAE mem- Baseball season has arrived. The legisla- bers, you serve as an expert advisor to the tive session is under way. Real Estate mar- Our Property Tax Division works closely board. In that capacity, we rely on you to kets are coming out of their typical winter with assessors to identify areas of concern support the board training requirements slumber. For assessors and other property to help avoid State Board Orders. This and other obligations. tax officials, spring means it is time for the helps maintain consistency of assessment annual “property tax appeal season.” statewide, and may help keep down the We also rely on you to notify us if a BAE number of appeals by property owners. makes inappropriate changes when hearing In recent years, market values for most an appeal – such as exempting a property properties in Minnesota dropped, and the Importance of Training from tax or granting a special program like number of appeals to Local and County Green Acres, neither of which the law al- Appeal and Equalization Boards – LBAEs Training – not only for assessors, but also lows them to do. and CBAEs – also decreased. For example, for local and county appeal board members local and county officials heard 14,858 ap- – is another way we work to ensure a uni- To help support your work with the boards, peals for 2010 assessments, compared to form tax system. When taxpayers disagree we are going to include BAE information 13,344 appeals for 2011 and 10,064 for with their property valuation and assess- in our upcoming PACE course. We have 2012. (This includes appeals heard at local ments, we provide them a chance to appeal, scheduled three PACE sessions this year Open Book meetings.) wherever they are in Minnesota. and plan to offer another four sessions dur- ing the current training cycle (which ends With market values now showing improve- Educating LBAE and CBAE board mem- June 30, 2016). For details, go to www. ments in some areas and property types, it bers is an important way to make sure those revenue.state.mn.us and type PACE in the remains to be seen if the number of appeals appeal rights are upheld and to prevent mis- Search box. will now increase, or if property owners takes. In recent years, we combined these will instead view the rising values as a sign courses and hope to provide this training The Legislature continues its oversight of that our economy continues to improve. online in the next two years, making it training and education for property tax of- easier than ever to meet the board training ficials, and it recognizes local and county 2013 Property Values requirements in state law. BAEs as an important part of the system. And we appreciate the support assessors Market values for agricultural land re- As you know, all city, town, and county provide to these boards during the property mained generally stronger than for other BAE meetings must include at least one tax appeals season. property types. And in 2013, values for voting member who has taken the depart- class 2a agricultural properties and class 2b ment’s course in the last four years. All rural vacant land rose nearly 28 percent, ac- boards must certify by Dec. 1 that they met cording to our most recent Property Values the requirement and had a quorum at their and Assessment Practices Report. meetings for the year.
In comparison, residential homestead prop- Members are trained so that they under- erty dropped 0.33 percent last year, while stand the importance of an equal assess- commercial/industrial property increased a ment system, their role within that system, modest 0.84 percent. These statewide per- and how the valuation and classification centages are a useful barometer of markets process is affected by appeals. in the state, though numbers for specific property types vary in different areas of the Last year, we trained 1,633 local and county state, or even different areas of your own board members who attended one of the 53 jurisdiction. training sessions we offered. This included six “catch-up” sessions for boards that met Based on sales ratio numbers from this the training requirement as of Dec. 1 but report, the quality of assessments across lost their trained member due to township Minnesota stayed relatively consistent last elections, retirements, etc.
5 Equal Eyes | Spring 2014 International Items News and Information
Written by Tom May, SAMA, AAS Minnesota Chapter IAAO Representative
Greetings IAAO members. It is a busy City, Mo. This is a time when committees Key reasons to become an IAAO member time at IAAO and membership has never and leadership come together and accom- had as many benefits. The ½ price mem- plish a tremendous amount of work to keep Education: Cost effective education bership incentive is still being offered and IAAO’s mission moving forward. A lot of programs help you meet the challenges it’s a great way to test drive the benefits of the benefits that all IAAO members enjoy of an increasingly complex career. IAAO IAAO. The library and research available are formulated and put into action at Lead- offers a range of educational opportunities to members is worth the price of member- ership Days. Rebecca Malmquist is attend- for the beginner to seasoned professional. ship alone, not to mention the “Fair and Eq- ing Leadership Days, so if you have any Textbooks are known for their depth and uitable” publications. For membership in- questions, please contact Rebecca. quality of information. formation please contact myself, Rebecca Malmquist or Stephen Baker. IAAO presented two great webinars this Professional Designations: year. The first on Feb. 19 was “The Elu- Receive certification that recognizes The IAAO had a landslide of new designa- sive Overall CAP Rate” presented by Peter professionalism, and competency in tion candidates in 2013. Due to the change Korpacz, and the second was “Evaluating matters regarding property appraisal and in the designation requirements starting Jan the Costs of Litigation” on Mar. 12. Please assessment for property tax purposes. 1, 2014 and the IAAO decision to waive consult the IAAO website on a regular ba- application fees for applications received sis to find the upcoming webinars being Peer Networking: Meet other assessment by Dec. 31, 2013, there were about 850 offered. The webinars are affordable, con- professionals to share common ideas, new designee candidates for 2013. This is venient, and packed with current trending concerns and interests. Tap the IAAO brain great news and the new candidates have 5 information. trust with IAAO’s new on-line networking years to complete all of their requirements. forum AssessorNET. Share and receive There will be a lot of IAAO educational IAAO has just released the 2013 staffing ideas at conferences and seminars. Locate opportunities in the next 5 years. survey prepared by the research committee. other members through Member Look-Up. It has a lot of great information and staffing The IAAO Executive Board met in San statistics from around the assessment com- Publications: Fair & Equitable and Antonio, Texas on Jan. 17 – 18, 2014 and munity. This was a major effort and “thank Journal of Property Tax Administration swore in the new leadership and executive you” to all of you who participated by an- IAAO’s monthly and quarterly publications board members. I want to thank all Min- swering the questionnaire. bring you up-to-the-minute perspectives nesota members for your support in making and research on today’s assessment issues. me one of the new executive board mem- Congratulations to Stephen Baker, who has bers. I did see the results and Minnesota been appointed to the IAAO budget com- Library Services: Access to a research had a 64% voter turnout, while Iowa had mittee for 2014. You all know that Stephen library featuring 10,000 volumes of 80%. I feel that in the next election Min- is a deep thinker and a numbers guy so the literature and over 600 periodicals. nesota should do all we can to pass Iowa fit is perfect. as the leading state for voter turnout. This Members-only Access and Discounts: will be a challenge, but with all your help Please remember that the 2014 IAAO an- Receive special rates on publications, text we can make it happen. nual conference this year is in Sacramento, books, technical standards, seminars, and California. It will be held on August 24 – conference registration. Utilize special The IAAO Executive Board also met Feb. 27 and will be filled with education, net- sections and resources on the IAAO 7 – 8, 2014 in Kansas City, Mo. The Board working and social events. Remember to Website including access to the library met solely to concentrate on strategic plan- put it on your calendar, register and make through memberlink and the Glossary for ning and education. The meeting was very your hotel reservation. Hope to see you Property Appraisal and Assessment. timely with all the new designation candi- there. dates needing education with timely and ef- Leadership Opportunities: Become an ficient availability. Hope you have a great spring and the as- author in one of IAAO’s publications. Help sessment gods are kind. Also, please say shape industry policies by volunteering for The IAAO will hold its bi annual Leader- an extra prayer for Greg Kramber’s recov- a committee, or consider running for the ship Days on Mar. 7 – 8, 2014 in Kansas ery. IAAO Executive Board.
6 Equal Eyes | Spring 2014 Written by Janet Kaschmitter Stearns County MAAP President 2013-2014
MAAP ACTIVITIES
The organization meets twice a year, in August, for a two-day educational workshop and again in December for the Winter Business meeting. The annual membership fee of $10.00 includes a semi-annual publication called the “Communicator” that informs members of meetings and other assessing news.
MAAP PURPOSE Article II – MAAP By-Laws
“The purpose and objective of this organization shall be to further the work experience and knowledge of assessment personnel through education, communication and participation.”
NEED MORE INFORMATION?
Any member of the MAAP Executive Board would be more than happy to answer any questions you might have.
Janet Kaschmitter, President 2013-2014 Stearns County (320) 656-6557 WCMAP HISTORY [email protected] WCMAP was started in 1975 by former Kandiyohi County Assessor Chet Johnson who felt a need for office personnel to meet Judy Liddell, Vice President 2013-2014 and discuss similar problems and to serve as a support group. Morrison County (320) 632-0101 This philosophy continues today with the Summer Workshop as [email protected] an opportunity to learn about tax law changes along with other educational and professional development topics and provides an opportunity to network with other assessment personnel. Jodi Kohn, Secretary/Treasurer 2013-2015 Workshop course content is annually submitted to the State Board City of Maple Grove (763) 494-6252 of Assessors for approval of 10 CEH’s for members maintaining [email protected] a State Assessor’s designation.
Danielle Lee, Board Member 2013-2015 MAAP Wright County (763) 682-7363 [email protected] The group has evolved over the years to include many members from all parts of the state, and in 2003 it was decided to update the name of the organization to MAAP (Minnesota Association of Mitzi Wicklund, Past President 2012-2013 Assessment Personnel). City of Edina (952) 826-0424 [email protected]
7 Equal Eyes | Spring 2014
MAAP
APPLICATION
DATE: E-MAIL ADDRESS: NAME: EMPLOYER: WORK PHONE: WORK ADDRESS: ( ) FAX NUMBER: ( ) POSITION: Number of years experience in the assessing field: Are you attending or have attended assessing classes: Are you currently Certified? Certified Specialist? Accredited? Join Us Today! Sr. Accredited? Tell us about yourself:
Special interests or hobbies?
Membership dues are $10.00. Please make checks payable to “MAAP”. Return completed Membership form with dues to:
Jodi Kohn c/o City of Maple Grove Assessor’s Office P.O. Box 1181180 Maple Grove, MN 55311-6180
8 Equal Eyes | Spring 2014 Out of the Past
Written by James Haley, SAMA Norman County
5 Years Ago – 2009 ence, with 75% stating they use this services. “often”. Last on this list: Lobby- • In the wake of the Minnesota Su- ists, with 25%. 30 Years Ago – 1984 preme Court decision in Under the Rainbow Child Care Center vs. 20 Years Ago – 1994 • The Editorial Committee inter- County of Goodhue, a number of viewed candidates for a new state nonprofits expressed concern • A formula for computing your own Equal Eyes Editor to replace retir- that many previously exempted property taxes was offered. That ing Editor Doug Holt. The board groups would suddenly be required scientific formula was (Mkt. val- interviewed four candidates for to pay property tax. ue of your home x 1/Mkt. value the position and selected Louise of house next door) / (number of Leoni, City of Ely Assessor. • Bill Davy, Hennepin County retires potholes in your street plus tim- after 35 years of service & Judy ber value of trees on property) x • Melvin Baughman, Forest Re- Remer, City of Bloomington retires (proximity to nearest walleye lake) sources Extension Specialist, Uni- after 24 years of service. x number of hours spent watching versity of Minnesota, hinted that Vikings in 1990. aerial photography may be useful • Kyle Holmes, Carlton County was to assessors. Mr. Baughman tied introduced as Region 4 director. • Pat Reale, Adams County Colorado the use of aerial photography to One of his main goals included en- Assessor was allowed to keep his the valuation of timber lands. suring that no one from his region job after refusing to take his state- received the Minnesota Cup while required licensing exam. A district 45 Years Ago – 1969 he was director. judge ruled that no compelling public interest was being served in • Carl Christensen, City of Bloom- 10 Years Ago – 2004 forcing Reale, a 27 year veteran, to ington Assessor, was elected to a pass his exam. two year term on the IAAO Ex- • Ag Specialist Mark Larson, Kana- ecutive Board at the IAAO Con- bec County, explained that a dairy • Region 9 was concerned about too ference in St. Louis. At the time, cow provided $13,737 of economic much state control regarding the re- Carl was the 2nd Minnesotan to be activity. This was an 18% increase quests made by the Department of elected to this position. from 1993. Revenue for data through abstracts. 50 Years Ago – 1964 • The City of Minneapolis was un- 25 Years Ago – 1989 dergoing signification tax burden • MAAO Secretary Jerome Skeim shifts. City Assessor Scott Renne • Region 7 was planning a joint re- expressed frustration in the re- explained that all residential prop- tirement party for Dan Franklin, lease of the new personal property erty types, including apartments Bob Moritz, and Les Koopman. schedules. The project was cursed were “hot”. The district with the from the beginning: getting the highest appreciation was Calhoun • Skyrocketing enrollment at St. punched paper proved to be the Isles, which experienced a 128% Cloud State University created a first troubles. growth rate over the previous 10 new housing boom in St. Cloud’s years. south side. In the previous two • New Ottertail County Deputy As- years, 56 student apartment com- sessor Eugene Davenport left a 15 Years Ago – 1999 plexes with nearly 2400 bedrooms 520 acre grain and dairy farm to were constructed devote his full time on assessment • Jeff Johnson, Stearns County, ex- work. Mr. Davenport was opti- plained that many farmers are de- • Jeffery Spelman, explained the mistic in his new endeavor, saying ciding to rent their cropland and role of the “Tax Agent”. A tax agent “I am sure that all tax problems find a job off the farm because of represents ad valorem taxpayers cannot be solved by understand- the poor outlook for agriculture. in regard to their assessments and ing or friendship, but if that will serves as an advocate for taxpayers. help in eighty per cent of the cases • Minnesota Legislators were polled A horror story was told of a nation- it will give me more time to deal to find out where they get most of ally known appraisal firm bombard- with the twenty per cent”. their information. The number 1 ing local commercial property own- source: Their own personal experi- ers with a mailer advertising their
9 Equal Eyes | Spring 2014 Super Soft Skills For Assessors Effective and Efficient Negotiations
Researched and Written by Solomon Akanki, SAMA City of Brooklyn Park Editorial Committee Member
Life is full of negotiations, big and small. We negotiate for raises, we negotiate with property owners and property tax representatives over market values, and we negotiate for more staff, the best projects, and flex time. Since negotiations are part of our daily duties I decided to research the super soft skill called “effective and efficient negotiations”. This research was an extremely rewarding journey; it enriched my mind, built my character and broadened my perspective. Also it added to the insights and perspectives gained from the research that produced the winter edition on conflict management. Effective and efficient negotiation as a super soft skill compliments the super soft skill of conflict management.
Negotiation is a method by which providers of on-line real estate information utility of the lease agreements or rent rolls people settle differences. It is a process (sales, listings, cap rates, etcetera). In and income and expense statements in the by which compromise or agreement is an appeal situation especially a tax court hands of so many assessors. We have to find reached while avoiding argument. In any appeal situation the person with the most a solution to this challenging situation as disagreement, individuals understandably pertinent information is more effective and soon as possible. aim to achieve the best possible outcome efficient during negotiations. Before I move We never want to let negotiations become for their position (or perhaps an organization on I will say a few things about our ACE too tense so we should always keep it light. they represent). However, the principles (Assessor Commercial Exchange). ACE is We should always feel free to smile and of fairness, seeking mutual benefit and useless if jurisdictions are not entering sales inject some humor in the conversation. maintaining a relationship are the keys to a information. It is also useless if we do not Lightening up the mood can ingratiate us successful outcome. exhaust all possible options to obtaining with our opponent while also conveying It is inevitable that, from time-to-time, substantive pertinent information on each our negotiating strength. If we do not appear conflict and disagreement will arise as the sale. What do I mean by this? I mean calling to be taking the negotiation extremely differing needs, wants, aims and beliefs every party to the transaction until we get seriously, the property owner, attorney or of people are brought together. Without all the information we need. Depending tax representative may conclude that we are negotiation, such conflicts may lead to on the situation every party may include ready to move on. Yes we are ready to move argument and resentment resulting in one the buyer, seller, buyer’s attorney, seller’s on because we have completed extensive or all of the parties feeling dissatisfied. attorney, buyer’s broker and seller’s broker. research and analysis and therefore we The point of negotiation is to try to reach Also to ensure that we have access to all have substantive compelling evidence agreements without causing future barriers pertinent information, we need to start that supports our value position. The more to communications. thinking of a way to create a secured site easily and happily we can walk away from Over the years I have found out that the just like ACE to scan and upload proprietary a negotiation, the greater our capacity to person with the most pertinent information documents. Uploading documents like lease affect its outcome (Roger Fisher and William usually does better during negotiations. agreements or rent rolls and income and Ury, 1991). As assessors we need to learn as much expense statements to a secured site that all Harvard Business School and Wharton as possible about the subject property, assessors have access to will ensure more Business School researchers have found comparable properties, the market, market effective and efficient negotiations. Today out that most negotiators act and react trends, valuation trends, etcetera. We need we waste many hours and days trying to based on what the other side does. The bad to be reading all market reports related obtain such confidential information from news is that such responses are often based to the year of assessment and creating fellow assessors. We are not just wasting on a misinterpretation of the other side’s spreadsheets for pertinent information from time we are also wasting energy. I have even motives and intentions. The good news is those reports. We need to have complete heard that some assessors are not willing that we can lead the way by negotiating in a and up to date data on every property in our to share these documents! Quite strange! principled and constructive fashion, and the jurisdiction. We need to have access to the As assessors, we are already experts at other party will usually respond kindly. This latest books on valuing the various property handling proprietary information so I don’t does not mean that we should try to appease types easily obtainable from the appraisal see why that should be a challenge. As a the other side, but, instead, negotiate in a institute. We need to subscribe to third party group we are certainly not maximizing the deliberate and strategic fashion, rather than
10 Equal Eyes | Spring 2014 Assessor Soft Skills, continued simply react. People tend to be matchers and when, where, why or how. Tricking them It’s a business process, not an event. Our follow the norm of reciprocity, responding into closing is trying to get the other party leaders must make sure all assessors have in kind to how we treat them; if we want to to agree with us prematurely. This is a access to the training, tools and information be trusted, we must first offer it (Grant & behavior that shows need more quickly available to private sector appraisers. I don’t Galinsky, 2013) and decisively and catastrophically than want to say too much about that now because There are four insidious advantage killers any other behavior. We can’t force a that is another topic for the future but permit we need to learn to recognize in order to decision. I have discovered that when I me to say this - ensuring our offices have ensure effective and efficient negotiations. am negotiating correctly, the other party enough staff, with world class training, These include being formal, spilling the invites me to close. Talking loud, fast world class tools, world class pay and all beans, tricking them into closing and and high is another advantage killer. pertinent information requires our city talking loud, fast and high. Some people When emotions run hot and heavy in assessors, county assessors and directors of use formal address ostensibly as a sign negotiations, speaking too loudly, too assessing to be able to negotiate effectively of courtesy, but it has a way of making quickly and in a high-pitched voice is a and efficiently in all situations. Management the other party seem aloof, even slightly sure sign of need. While needy negotiators function techniques will never be complete superior. The other party will interpret raise their voices, negotiators who simply without managers and assessors being able this as insecurity. Calling someone “Mr.” “want” lower theirs. to negotiate effectively and efficiently. Every after he’s already given you his first name, Finally, we should always do a postmortem organization runs well based on the skills for example, takes you down a notch in on every negotiation, asking ourselves of all employees. Effective and efficient the power hierarchy, even if you meant it what worked and what we would do negotiations may require more time, effort respectfully. Spilling the beans is disclosing differently next time. Continuous and resources up front, but they generally too much information prematurely and improvement is the key to success in shorten the total negotiation time and talking too much. The winner in negotiations life. Also our leaders need to change their generate better results more quickly. lets the other party talk more and answers mind-set. Negotiation is not simply about EE questions with questions — who, what, being skilled in the moment at the table.
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It’s not too late.... Register for Summer Seminars May 22-23, St. Cloud Holiday Inn EE
Earn 8 CEH’s for attending
Educational Opportunities:
Reviewing Residential Appraisal Reports MN Residential Form Report Residential Construction - From Measuring to Describing Introduction to Agricultural Assessment Income Capitalization using a GRM and a Direct Cap Rate Sales Verification: There is No Such Thing as a Bad Sale The Valuation of Apartment Properties Exemption 101 - Start to Finish MN Residential Form Report - Hands On Business Writing for Assessors Living on the Lake The Who, What, When, Where, Why, and How of Disaster Assessment It’s a Mobile World
please register by May 9th
11 Equal Eyes | Spring 2014 Let’s Get Acquainted Meet the New County
Assessors Researched and Written by Jamie Freeman, SAMA Clearwater County Editorial Committee Member
“Define success on your own terms, achieve it by your own rules, and build a life you’re proud to live.” – Anne Sweeney (President of Walt Disney)
Within the last 6 months there has been a changing of the guard in Minnesota. As four County Assessors have retired, four very talented women have stepped up as their successors. The newly appointed Assessors are: Bonnie Crosby, Chippewa County Assessor; Terrie Johnson, Mahnomen County Assessor; Teresa Mitchell, Dakota County Assessor; and Valora Svor, Kandiyohi County Assessor. As you read through this article, you will notice a similarity among these four Assessors. These women share a strong profile; they bring distinct character and motivational strengths to their jobs. They are driven, assertive, focused, and have the vision to make their office run efficiently. They are leaders in every sense of the word.
and the learning process much more Bonnie has three children: Joshua, Ryan rewarding compared to high school. and Bethany. Joshua and his wife Sarah As Bonnie was wrapping up this chapter have blessed Bonnie with a beautiful in her life, the position of Office Manager granddaughter, Camryn, who will be seven opened up at the Chippewa County in March. Ryan and his wife Chelsie were Assessor’s office. One month before just married last July. Their blessings to graduation, Bonnie was delighted to be Bonnie are Abby, a chocolate lab, and hired as she was in the market for an office Maci, a golden cocker spaniel. They are job. She considered herself very fortunate spoiled just like grandchildren, so they to have employment secured before her are affectionately called “granddoggers”. last semester was finished. Bethany is Bonnie’s youngest, and her Not knowing where this job would lead, significant other is Matthew. Bethany has Bonnie started working for Chippewa recently graduated from college, and it’s County only two days after her graduation anyone’s guess where life’s path will take Bonnie Crosby ceremony. Although both her father and her. father-in-law questioned Bonnie’s desire to Bonnie doesn’t have much time for hobbies Bonnie Crosby become an assessor, her career has grown right now, but she does enjoy spending Bonnie has been the Chippewa County from that of Office Manager to Deputy time with her family, going camping, Assessor for about 6 months now. She Assessor and now to the Chippewa County having bonfires and spending time at the started out in the Assessor’s office as the Assessor. neighboring rivers. When she has time, she Office Manager from 2001-2005 and then Bonnie has been a member of the Minnesota also likes reading and working puzzles with advanced to the Deputy Assessor 2005- Association of Assessing Officers for the her granddaughter. 2013. last 5 years, although she still considers She was born and raised in Chippewa Bonnie didn’t start her career as an assessor. herself pretty new to MAAO since the County. Even though she loves the area Rather, she started out working part-time 2013 Fall Conference was the first event and hopes to grow old there, she would like at one of the local schools. The school she has attended. She did meet many of to travel a little more and possibly spend schedule worked out great for Bonnie as her fellow assessors and she’s looking her winters somewhere warmer. Maybe in she was able to work when her children forward to Summer Seminars in May. retirement??? were attending school and she was able to The Chippewa County Assessor’s Office Unusual parcels just seem to be a part of be home with them on their days off. consists of the County Assessor, a Senior the job. One day Bonnie arrived at a farm Later Bonnie decided to further her education Deputy Assessor/Appraiser, a Deputy site with more than their share of cats and and attended the 2 year Administrative Assessor/Appraiser and an Assessment chickens. When she got out of her car, Assistant program at Minnesota West Technician. Additionally, they’re in the cats started coming toward her; they Community & Technical College in Granite the process of hiring a new Assessment seemed to be coming out of every nook Falls, earning her A.A.S degree in May of Technician. Ten Local Assessors are and cranny. Chickens everywhere and 2001. The non-traditional student was a responsible for fifteen townships and more than a hundred cats seemed a little good fit for Bonnie; she found the classes three cities. creepy, especially when some of the cats
12 Equal Eyes | Spring 2014 Let’s Get Acquainted, continued tried climbing up her leg. It didn’t take her the White Earth Indian Reservation. In fact, long to get back into the car. Guess there’s it is the only county in Minnesota that lies no chance of Bonnie turning into a crazy entirely within an Indian reservation. Also, old cat lady. Mahnomen has a championship football The one thing that she really enjoys about team, the Mahnomen Indians. Their football her job is the variety that every day brings. team has made thirteen appearances in the She finds it satisfying to explain the process state title game, which is more than any other of assessing property to taxpayers, especially school in Minnesota history. when they come in a little upset and they The Mahnomen County Assessor’s office leave understanding what we do, sometimes is made up of the County Assessor, the with a smile on their face. Deputy Assessor, a part time clerk, and one Bonnie understands that there is much to local appraiser. Mahnomen County, like learn as time goes on. She’s looking forward Chippewa County, is also in the process of to meeting more assessors from around the hiring additional staff. state and listening to their ideas, thoughts Terrie has been married to her husband Teresa Mitchell and concerns. It’s been a good thirteen years Gerald for 5 years. When Terrie’s at the so far, and Bonnie’s looking forward to the office, Gerald is busy farming on their ranch Teresa Mitchell upcoming years as the County Assessor. in rural Mahnomen County. They love to Teresa Mitchell has 2 months under her belt ______travel and have taken many great trips as the new Dakota County Assessor. Teresa together. They also have a large vegetable has literally worked her way up through garden and lots of flowers on the farm where the ranks within the Assessor’s office. She Terrie works on keeping them beautiful. started out as a part time clerk 1988 to 1990, Terrie and Gerald are also to be commended full time clerk 1990 to 1992, Appraiser 1992 as they were the recipients of the 2012 to 1996, Senior Appraiser 1996 to 1999, award for Outstanding Conservationists in Residential Manager 1999 to 2008, Chief Mahnomen County. This award recognizes Deputy 2008 to 2013 and now the County individuals, conservation organizations, and Assessor. others for outstanding accomplishments with Teresa got into the assessment field when implementing conservation practices and she applied for a “work-release” program in improving Minnesota’s natural resources. A High School to earn H.S. credit. She jokes wonderful accomplishment for the Johnsons. that if you had told her then that assessing In addition to hiring a full time staff would be the only “real job” she would appraiser, Terrie’s future plans for the office ever have, she may have taken a study hall are to complete the process of entering all of instead! their records in the CAMA system. Dakota County is much larger than the Terrie Johnson What she finds to be the most satisfying county I work in. There is a total of 35 aspect of her job is the ever-changing staff (no local assessors) with 156,000 Terrie Johnson assessment world. It is always interesting parcels. Before former County Assessor Terrie Johnson is the newly appointed and challenging. There are always new Bill Peterson retired in October 2013, the 4 County Assessor for Mahnomen County. things to learn and ways to improve. Dakota County Assessing management staff She has held this position since November 1, The one thing she considers to be more of a of Bill, Gloria Pinke, Scott Lyons and Teresa 2013. Prior to this, she was the Assessment challenge is personal safety when viewing had 125 years of combined experience in the Clerk for the City of East Grand Forks from properties. There are many negative same county department. That’s impressive! 1985 to 1990, and an Appraiser for Polk situations that an appraiser could encounter Teresa has been a member of MAAO for 20 County from 1990 to 2013. when doing field work. Terrie believes years and a member of IAAO for 18 years. Terrie originally entered the assessment field that as a profession, we need to pay more She has been a MAAO Information Systems when she applied for the clerk position in the attention to this issue. Committee member and Chair, MAAO Chair East Grand Forks Assessor’s office. After ______of the Assessor Development Committee, a working in the office for a while, she started Workshop Instructor, the Board of Assessor taking assessment classes and worked Form Report Grading Chair, and an IAAO towards a SAMA license. Additionally, she Professional Development Advisor. has been a member of MAAO for fourteen Teresa has been married to her husband years. Dan for 17 years. They have two children, Mahnomen County, located in the Wade 13 and Rebecca 10. They enjoy northwestern part of the state, consists of boating on the Mississippi and St. Croix three cities and sixteen townships, with Rivers and BWCA wilderness camping. the city of Mahnomen as the county seat. She plays on volleyball leagues on both What I find interesting about Mahnomen hard court and sand, golfs irregularly (time County is that the entire county is part of and skill required!), and also likes grading
13 Equal Eyes | Spring 2014 Let’s Get Acquainted, continued form reports. to allow her to get back into the vehicle. All An interesting fact about Teresa is that she ended well - after several attempts to distract comes from a very large extended family. him, Val was able to return to her vehicle Not your average large family, the Bauer without being his lunch! See him in 5 …… family is so large that they are attempting doggy treat! to break the Guinness world record for Val’s most satisfying aspect of her job is the largest family reunion. In 2000, about when property owners thank her for doing 1700 people got together at their last event. a good job, even when they didn’t get the This wasn’t large enough though, because answer they wanted. apparently the current world record is held She feels the biggest challenge of the by the Lilly Family of Flat Top, W.Va. which assessment field is Minnesota’s weather. gathered 2,585 people for its reunion back in She states that we all have so many parcels August 2009. The Bauer family is hoping to to visit, and as you all know, our weather break the record in 2015 as they gather for makes a point of making this as difficult as their family reunion in Hastings. We wish Valora Svor possible! them the best of luck!! When asked if she could change anything in When asked about the most satisfying Valora Svor the property tax system, she states she is too aspect of the job, she stated that the last The newly appointed Kandiyohi County new in her position to say much. Although, several years have been spent successfully Assessor is Val Svor. Val actually got her I’m sure she will have plenty of ideas in the accomplishing what seems like an enormous start from completing the education needed future as she plans to keep working in the task. They recently replaced their entire for an Appraiser’s license. It was then that assessment field for a long time. Real Estate Management System – CAMA she responded to an ad for a position in So there you have it, everything you wanted to Taxation and everything in between. She Carver County (Thanks Angie!). After being to know about our newest Assessors. With described it as a long grueling process and a Staff Appraiser from 2003 to 2005 for their extensive experience and dedication they are still not quite finished. So many Carver County she was hired as an Assessor to their careers, I can’t help but think how knowledgeable, talented and dedicated II from 2005 to 2013 at Kandiyohi County. fortunate Minnesota is to have these women staff came together and made it possible She has held the position of Kandiyohi working in the assessment field. and successful even amidst struggles and County Assessor for about 4 months. challenges. It was rewarding for Teresa to Val says that she has an awesome staff. be part of the process. There is one Assessment Technician and EE The biggest challenge she feels in the five Staff Assessors. Many are fairly new assessment field is meeting mandated and and are very willing to learn and grow with Congratulations statutory requirements that come each their department and in the assessing field. year with existing or shrinking human and The staff with more experience has been Ladies! financial resources. Every legislative change excellent mentors, willing to share their or mandate, however small it may seem, knowledge. Experience in the office ranges demands resources to meet and/or program from 4 months to 9 years. Additionally, there into our systems. As resources shrink are four local assessors in Kandiyohi Wishing and mandates grow, even our essential County. services are taxed to the point that the use Val has been a member of MAAO since Each of You of technology and process improvements 2006 and she has served on the Education cannot compensate. Committee. A Teresa plans to become proficient in Val and her husband David have been addressing all the demands of the assessor married for 33 years. They have two position in Dakota County and continuing children, Joe 29 and Jennifer 26, and two Successful to contribute to the prosperity of our grandchildren, Brooklyn, 3½, and Jordan, 5. assessing organizations MAAO and IAAO. They enjoy spending time together at their Career Her future plans as the County Assessor cabin in Glenwood, MN. include creating a rewarding and innovative As far as memorable moments on the job go, As environment for retaining and growing a she once found herself in a situation when skilled and dedicated team of assessors she pulled into a rural residence. After County and associates. Leveraging technology parking her vehicle she saw a rather large to make our difficult jobs more efficient dog on a log chain, but felt he wasn’t within and achievable is a model she plans on striking distance. Apparently Val misjudged Assessor continuing to foster in the future. the length of his chain and he was not going ______
14 Equal Eyes | Spring 2014 Feature There’s An App
Written by Markus Yager, CMA For That... Stearns County
Over the past 9 months, the Stearns we were using field card folders, gathering of accessories. Except in extreme cold County Assessor’s Office in conjunction data in the field, and taking photos of the conditions, iPads give us 7 to 8 hours of with our GIS department has been piloting property. From this, we brainstormed ways battery life in the field, with car changers a project to use mobile devices in the field. to do these things with a mobile device. making them last even longer. After As we talked with other counties, we have The process of brainstorming a workflow equipping them with cases and screen seen increasing interest in the use of mobile was more difficult than we first thought, as protectors, we have not had any issues devices in the assessment process. Counties appraisers have a wide variety of with durability. Looking at the market are looking at using this technology to expectations for a mobile device. With today, the iPad still seems to be the tablet streamline practices, increase productivity regard to this, choosing a mobile device of choice for our particular workflow, and accuracy, and eliminate paper. In was also difficult, as there are all shapes, but the competition is closing in rapidly. addition, the ability to pair CAMA data with sizes, and varieties out in the market. Since we knew that our needs may change GIS and mapping data allows appraisers The first major consideration was the in the future, our process works well on to more easily locate equalization issues operating system of the tablets in question. the iPad but can be adapted to work with and visually compare aerials of various Currently, Apple offers iPads with the IOS numerous devices, which made the initial properties. As technology in the mobile operating system, and numerous venders choice of device somewhat less critical. arena continues to progress rapidly, new offer both Android (Google) and Windows uses for these devices present opportunities (Microsoft) tablets in multiple sizes and The Apps that previously were not possible. capabilities. Also important was the size First, our use of the iPad is based on two and weight of the device – we needed applications: a PDF editor and a GIS- Getting Started something relatively small and light, but based mapping app. After trying out Initially, our goal at Stearns County was also with the durability and readability to several PDF editing apps, we settled on simply to get out in the field with a mobile be practical for use in the field. While iPads PDF Expert ($10) by Readdle. It comes device with as little change as possible to the come in two sizes, Android and Windows with advanced PDF annotation and editing workflow in the office. Change is difficult, devices come in numerous sizes ranging capabilities and is simple to use. Over the so we hoped that the more we could initially from 7 to over 15 inches. course of our project, we have used two keep the same, the better the project would At our time of purchase, our primary main GIS/mapping applications: ArcGIS eventually be received. In addition, we concern was keeping costs down, and and Collector for ArcGIS (both free) by wanted to incur as little expense as possible. Apple’s iPad offered the best way to ESRI. As I will explain below, we started We knew that some amazing software exists quickly and cost-effectively get out in out with the basic ArcGIS app, but we are that could be catered to do what we need but the field. The iPad was the dominant moving towards using the Collector, and having a vendor customize software can get tablet on the market, offering the best it will likely be our GIS/mapping app very expensive. Instead, we looked at how price for battery life, weight, and choice going forward.
15 Equal Eyes | Spring 2014 There’s______An App For That,______continued
The Process the digital pen tool to draw and write using appraisers take the device out in the field, Because of the use of the PDF editor and a finger or a stylus. This allows us to check more improvements to productivity are mapping apps on the iPad, our current off the information that is correct, cross out found and worked into the process, making process effectively has two elements. First, what is incorrect, and write any changes the project a continually improving concept. our use of PDF field cards begins as it did as we would on a paper copy. Drawing on Currently, four appraisers in our office are when we used paper copies – we print the diagrams is similar - by using a finger or working full-time with iPads, with plans to cards. However, instead a selecting the usual stylus we are able to draw as easily as we expand to eight by mid-year. printer, we use what is known as a “PDF would on paper. In addition to drawing and Still, the workflow that we have adopted printer,” which is effectively a program writing, there are several other options for is not perfect. Direct data input that that acts as a printer and saves a digital input, including voice memos, on-screen could be uploaded into our CAMA system copy of whatever would normally have keyboard typing, images, and “stamps.” would potentially save much more time, printed. With help from our Information Stamps allow you to create a digital stamp eliminating the need to effectively touch Services Department, we found doPDF, a for information that is repeated, such as an the data twice. Also, in the far remote or free PDF printer. This enables us to create appraiser’s initials or date viewed. Each lowland regions of the county, at times the PDF copies of the field cards, just as we appraiser is able to use the features that we cannot get a strong enough data signal previously did physically. One limitation work for them, giving flexibility while to sync, upload the pictures, and access of our CAMA system that we are currently maintaining all the information in the easily the GIS/mapping data. However, these trying to overcome is the need to produce accessible PDF format. Overall, this app instances were surprisingly rare, and the these field cards individually. While this works great for our purposes. benefit of the PDF field card approach printing is somewhat time-consuming, As the information gets recorded and means that the field cards can be loaded we still see a time savings compared to changes get noted on the PDF field card, onto the iPad and accessed with or without physically pulling field cards from a file the second aspect of our workflow is the connection. In addition, in the near-future drawer. GIS/mapping application. In its simplest the Collector app for the iPad promises to Once we have the PDF copies of field cards, form, the ArcGIS app gives a parcel map allow disconnected viewing and editing for the next step is to get them on the device. with owner names and our latest aerial the GIS/mapping applications, eliminating After looking at methods of wired syncing imaging. In addition, the GPS capabilities perhaps the major weakness of our setup. and directly loading the files on the device, of the iPad allow our locations to be shown Ultimately, there is much more we would we found that “cloud-based” syncing using on the map. When we launched this project, like to do with mobile devices such as Dropbox (free basic account) best meets the original use of the map was simply to iPads in the field. We are looking into the our needs. In short, Dropbox keeps every verify the parcel we were viewing, using ability to quickly and simply create custom file updated across multiple devices, from our GPS location to see which parcel we maps that show permits or even our quintile an iPad to a Windows computer. When were on. As we became more comfortable properties that need to be checked, offering you install the app, it puts a “Dropbox” and proficient using the iPads, we have real-time updating of when the appraiser folder on your desktop that can be used just begun to take pictures with the device and has completed their field work. In addition, as any other folder on your computer. Any tie these photos to a GPS point. This helps connecting the PDF field cards with the map file that you put in this folder is available to significantly cut the time it takes to process would make pulling up the correct info as you through the PDF Expert app on an iPad. the photos in the office. By doing this, our easy as tapping on a parcel. As we continue When connected to the internet, any change GIS department can automatically assign a to experiment with these devices and fine- in a document updates the document stored parcel number based on the GPS location of tune our workflow, more ideas continually on the iPad, the internet, and the document the photo, saving us time in the office and emerge about the possibilities of a future stored on the office computer. This is improving the accuracy and usefulness of mobile device. Support from key personnel extremely useful, as we are effectively our property photos. As we move towards and management has been critical, as Gary looking at the same file (always the most use of the Collector app, we see potential Grossinger and Jeff Johnson allowed our current version) whether we are on our iPads with tying permit information and other project team to experiment and test the iPads or our computer back in the office. With useful features to the map with the ability to and encouraged participation from the office the power of Dropbox, the PDF Expert app edit this information on our iPads. in the project. Appraisers in the office such can be set up to access the files stored in the as Randy Lahr, Steve Chmielewski, and Dropbox folder whether we are online or Evaluating Where We Are At Kathy Korte helped test the devices and offline. If for some reason we do not have Overall, every appraiser in our office provided valuable feedback, and support a cellular data connection, the next time who has tried the mobile device has been from our GIS department has been critical we use the app and have a connection the impressed at its capabilities and saw the to our success as well. In retrospect, the changes will update the field cards. This benefits of taking the iPad out in the field. experience of using a device out in the field means we always have the most recently One of the unexpected benefits has been and finding out first-hand what is possible edited PDF of our field cards, and the edits the desire to better organize and plan prior and what needs work has been the most sync automatically. to going out in the field, making field work beneficial aspect of the project, and we are Editing the PDF field cards using PDF much more efficient. The convenience and well positioned to have a successful future Expert is a simple yet versatile process. The efficiency of walking out the door with for mobile device usage in the assessment most common way we edit them is using only one device is a major benefit. As more process. EE
16 Equal Eyes | Spring 2014 Tax Court Abstract Recent Developments in Tax Court Submitted by Jake Pidde, AMA Commercial Appraiser City of Plymouth
(printed with permission from Hennepin County)
Interpreting “disclosure of the facts or data underlying the appraiser’s opinion”
Each written appraisal will serve as the authoring appraiser’s direct testimony at trial. Consequently, in accordance with Minn. R. Evid. 705, the court hereby requires disclosure of the facts or data underlying the appraiser’s opinion, either as part of the appraisal or through a separate document or collection of documents served (not filed) together with the appraisal.
What does the Court mean by “disclosure of facts or data underlying appraiser’s opinion”?
Publically-Available Documents: If appraisers rely on data from publically available documents accessible to both par- ties, a full citation to the source document (author, title, volume, date, publication, page number) counts as “disclosure.”
Non-Publically-Available Documents: Where facts or data come from a document that is not publically available, such as a private study, the appraiser must provide a copy of the source document itself.
Interviews: The appraiser must name the person interviewed and furnish any notes of the interview or materials obtained from the interviewee.
What if I base my opinion on my experience as an appraiser?
If an appraiser bases an opinion on general experience, there are no underlying facts or data to disclose.
What if I base my opinion on my experience as an appraiser?
“However, an appraiser who bases his opinion on nothing more than general experience risks having this opinion reject- ed as unsupported or subjective, and hence lacking in foundation reliability. . . If the appraiser cannot show foundational reliability, the appraiser risks that portion of their testimony stricken as speculation or conjecture.”
What if I didn’t rely on information that I have in my possession?
There is no need to disclose it.
Court’s Final Thoughts:
An opinion shown to be well supported by underlying facts and data can prove remarkably helpful. At the other end of the spectrum, a complete absence of support can render an opinion entirely unhelpful and even subject to exclusion.
17 Equal Eyes | Spring 2014 Top Home Trends 2014 Written By Jamie Freeman, SAMA Clearwater County Editorial Committee Member
______
(Wikicommons)
After searching several magazines and owners, thinking beyond patios and decks, sustainable products and materials are numerous websites, I compiled a list of are adding living spaces that have the feel being incorporated into the home. Home the top trends for 2014 that seem to be and function of an indoor room. These owners are making environmentally applicable to Minnesota. What I found casual gathering spaces boast such features friendly choices – especially when it during this research, however, was some as outdoor kitchens, audio systems, fire comes to paints, adhesives, countertops, redundancy through the years as changes pits, and fireplaces. Portable heaters are and flooring. Reclaimed wood and stone in the Home Building Industry have a also seen in these outdoor living spaces to products are also making their way into tendency to move slowly, and develop accommodate Minnesota’s climate. our homes. over time. Still, these trends do help put things in perspective for assessors, 4) Accessible Home Design: As home 8) Energy and Water Efficiency: Products as there is a direct correlation between owners build, they are also thinking about such as low-water toilets and sinks, high current designs, current styles, and selling the future. They are no longer installing efficiency furnaces, energy efficient price. spiral staircases, sunken living rooms, or appliances, and improved insulation are those high cabinets that are hard to reach. being incorporated into homes in an effort 1) Flexible Floor Plans: One of the major We’re seeing spacious, open designs to conserve energy and water. We’re also trends in home building in recent years has that allow family members with physical seeing more solar panels as an alternative been toward more open and flexible floor limitations to move around with ease energy source. plans. More households are becoming and home owners to age in place. These multi-generational. With this in mind, features, however, don’t necessarily convey 9) Themed Designs: After years of seeing more rooms are being built with the ability that “institutional look”: kitchen counters neutral colors in every room of the house, to change as needed. What is now used as of different heights for wheelchair access, themed decorating is making a comeback. an office or den can be easily converted to wide doors and hallways that permit Themes range anywhere from Asian- a bedroom if grandparents or boomerang adequate room for walkers and wheelchairs. inspired homes to nautical and western children move in. Additionally, many themed rooms. Even the legendary “Man newer homes include “bonus” rooms that 5)Lots of Storage: Newer homes Cave” and the garage are taking the shape have the capability to be converted as the incorporate walk-in closets, storage rooms, of a memorabilia sports bar. needs of the homeowner changes. and lots of cabinets. Garages are also getting larger to accommodate more storage 10) Handcrafted Elements: Many home 2) Stylish Kitchens: The transitional style (and more cars). owners are looking for a unique element kitchen, kind of a mixture of traditional and to enhance their home. Hand-crafted or contemporary, has become very popular. 6)Automated Controls: A s artistic pieces are being added for a more computerization costs continue to decrease, personalized touch. This style doesn’t stray too far from the E familiar, yet many feel that it ages well it’s becoming more affordable to regulate E because you can randomly add modern controls such as heating, air conditioning, touches that reflect current styles: dark- security, electronics and even lighting stained or painted finishes rather than through an electronic device. The iphone, natural oak, modern tile choices, islands, ipad or ipod can be used to control more stainless steel appliances. than 80 different devices around the house, making it easy to manage things even when 3) Outdoor Living Spaces: This trend you’re not home. actually began a few years ago and it continues to grow in popularity. Home 7)Green Products: More and more
18 Equal Eyes | Spring 2014 Meet Minnesota’s New SAMA & AMA Designees
Written by Jake Pidde, AMA City of Plymouth Editorial Committee Member
Laura Fridgen Laura Fridgen, Ramsey County, was awarded the SAMA designation in November, 2013. Her education includes: Assessment Laws History and Procedures, Techniques of Mass Appraisal (Course H), Basic Income Approach SAMA to Value, Income Approach to Valuation, Assessment Administration (Course K), and USPAP. Laura’s Residential Demonstration Narrative passed the Grading Committee in January 2002. Laura had a successful oral interview with the Board in February 2002. She passed the Income Property Case Study Exam in August 2013. Laura has 16 years of assessment experience. Congratulations to you Laura!
Alex Guggenberger Alex Guggenberger, Anoka County, was awarded the SAMA designation in November, 2013. His education includes: Assessment Laws and Procedures, Bachelor of Science Degree in Real Estate from St. Cloud State University, SAMA Mass Appraisal Basics, Income Approach to Valuation, IAAO Assessment Administration and USPAP. Alex had a successful oral interview with the Board in January 2013. He passed the Income Property Case Study Exam in August 2013. Alex has five years of assessment experience. Congratulations to you Alex!
Laura Hacker Laura Hacker, Sibley County, was awarded the SAMA designation in November, 2013. Her education includes: Assessment Laws, History and Procedures (Course A), Bachelor of Science Degree in Real Estate from St. SAMA Cloud State University, Techniques of Mass Appraisal (Course H), Income Approach to Valuation, Assessment Administration (Course K) and USPAP. Laura had a successful oral interview with the Board in December 2005. She passed the Income Property Case Study Exam in October 2013. Laura has 15 years of assessment experience. Congratulations to you Laura!
Donald Lovstad Donald Lovstad, Washington County, was awarded the SAMA designation in November, 2013. His education includes: Assessment Laws, History and Procedures (Course A), ProSource 101 – 104, Mass Appraisal (Course H), Basic Income Approach to Valuation (Course J), Income Approach to SAMA Valuation, Assessment Administration (Course K) and ProSource USPAP. Donald’s Residential Demonstration Narrative passed the grading committee in September 2003. He had a successful oral interview with the Board in October 2003. Donald passed the Income Property Case Study Exam in May 2010. Donald has 17 years of assessment experience. Congratulations to you Don!
19 Equal Eyes | Spring 2014 SAMA’s & AMA’s, continued
David Selbitschka David Selbitschka, Sherburne County, was awarded the SAMA designation in November, 2013. His education includes: Assessment Laws and Procedures, ProSource Appraisal 101 - 104, Mass Appraisal Basics, Basic Income Approach to Value, Income Approach to Valuation, MN Assessment Administration and SAMA ProSource USPAP. David’s Demonstration Form Appraisal report passed the grading committee in July 2008 and he passed the Residential Case Study Exam in May 2013. David had a successful oral interview with the Board in May 2013. He passed the Income Property Case Study Exam in October 2013. David has 8 years of assessment experience. Congratulations to you David!
Janelle Disrud Janelle Disrud, City of Maple Grove, was awarded the AMA designation in November, 2013. Her education includes Assessment Law and Procedures (Course A), Residential Appraisal (Course B), Mass Appraisal Basics (Course H), Basic Income Approach to Value, Income Approach to Valuation, AMA Professional Development Programs in Assessment and Appraisal: Management and Supervision and USPAP. Janelle’s Demonstration Form Appraisal report passed the grading committee in May 2013 and she passed the Residential Case Study Exam in July 2013. Janelle has 12 years of assessment experience. Congratulations to you Janelle!
Liz Lund Liz Lund, Roseau County, was awarded the AMA designation in November, 2013. Her education includes Assessment Law and Procedures, Basic Appraisal Principles, Basic Appraisal Procedures, Mass Appraisal Basics, Basic Income AMA Approach, Income Approach to Valuation, MN Assessment Administration, IAAO Assessment Administration (elective) and USPAP. Liz’s Demonstration Form Appraisal passed the grading committee in May 2013 and she passed the Residential Case Study Exam in August 2013. Liz has 3 years of assessment experience. Congratulations to you Liz!
Beth Kautz Beth Kautz, Sherburne County, was awarded the AMA designation in November, 2013. Her education includes Assessment Laws History and Procedures (Course A), Appraisal Principles, Residential Appraisal Procedures, Mass Appraisal No AMA Basics, Basic Income Approach, Income Approach to Valuation, Assessment Administration and USPAP. Beth’s Demonstration Form Appraisal report Photo passed the grading committee in January 2001 and she passed the Residential Case Study Exam in May 2013. Beth has 23 years of assessment experience. Available Congratulations to you Beth!
Alan Kampf Alan Kampf, Ramsey County, was awarded the AMA designation in November, 2013. His education includes Assessment Law and Procedures (Course A), ProSource Appraisal Practices, ProSource Appraisal Principles, Mass Appraisal No AMA Basics, Basic Income Approach to Value, Income Approach to Valuation, MN Assessment Administration and USPAP. Alan’s Demonstration Form Appraisal Photo report passed the grading committee in February 2012 and he passed the Residential Case Study Exam in June 2012. Alan has 8 years of assessment Available experience. Congratulations to you Alan!
20 Equal Eyes | Spring 2014 SAMA’s & AMA’s, continued
Stacy Honkomp Stacy Honkomp, Douglas County, was awarded the AMA designation in January 2014. Her education includes Assessment Laws History and Procedure (Course A), Appraisal Principles, Appraisal Procedures, Mass AMA Appraisal Basics, Basic Income Approach, Income Approach to Valuation, MN Assessment Administration and USPAP. Stacy’s Demonstration Form Appraisal report passed the grading committee in October 2013 and she passed the Residential Case Study Exam in January 2014. Stacy has 9 years of assessment experience. Congratulations to you Stacy!
Marvin Deick Marvin Deick, Ramsey County, was awarded the AMA designation in January 2014. His education includes Assessment Law and Procedures (Course A), Residential Appraisal (Course B), Mass Appraisal (Course H), Income No AMA Approach to Valuation, IAAO Mass Appraisal of Income-Producing Property, MN Assessment Administration and USPAP. Marvin’s Demonstration Form Photo Appraisal report passed the grading committee in March 2011 and he passed the Residential Case Study Exam in September 2013. Marvin has 27 years Available of assessment experience. Congratulations to you Marvin!
Kevin Scheidecker Kevin Scheidecker, Otter Tail County, was awarded the AMA designation in January 2014. His education includes Assessment Laws and Procedures, Appraisal Principles, Basic Appraisal Procedures, Mass Appraisal Basics, Basic Income Approach, Income Approach to Valuation, MN Assessment AMA Administration, General Appraiser Market Analysis Highest & Best Use (elective) and USPAP. Kevin’s Demonstration Form Appraisal report passed the grading committee in July 2012 and he passed the Residential Case Study Exam in August 2012. Kevin has 3 years of assessment experience. Congratulations to you Kevin!
Robert Sheehan Robert Sheehan, Ramsey County, was awarded the AMA designation in January 2014. His education includes Assessment Laws, History and Procedures, Residential Appraisal Principles, Residential Appraisal AMA Procedures, Mass Appraisal Basics, Basic Income Approach to Value, Income Approach to Valuation, MN Assessment Administration and USPAP. Robert’s Demonstration Form Appraisal report passed the grading committee in March 2013 and he passed the Residential Case Study Exam in July 2013. Robert has 13 years of assessment experience. Congratulations to you Rob!
Mike Harvey Mike Harvey, St. Louis County, was awarded the AMA designation in January 2014. His education includes Assessment Laws and Procedures, Appraisal Principles, Appraisal Procedures, Mass Appraisal Basics, Basic Income Approach to Value, Income Approach to Valuation, MN Assessment AMA Administration and USPAP. Mike’s Demonstration Form Appraisal report passed the grading committee in December 2013 and he passed the Residential Case Study Exam in November 2013. Mike has 4 years of assessment experience. Congratulations to you Mike!
21 Equal Eyes | Spring 2014 SAMA’s & AMA’s, continued
Chris Odden Chris Odden, Todd County, was awarded the AMA designation in January 2014. His education includes Assessment Laws and Procedures, Residential Appraisal Principles, Residential Appraisal Procedures, Techniques of Mass No Appraisal (Course H), Basic Income Approach to Value, Income Approach to AMA Valuation, Management & Supervision and USPAP. Chris’s Demonstration Photo Form Appraisal report passed the grading committee in January 2014 and he passed the Residential Case Study Exam in December 2013. Chris has 8 years Available of assessment experience. Congratulations to you Chris!
To recognize the accomplishments of new AMA and SAMA designees, we are spotlighting them as they are awarded by the State Board of Assessors. Are you a new designee? Get your photo ready!
22 Equal Eyes | Spring 2014 State Board of Assessors Meeting Minutes Provided by Bobbi Spencer Minnesota Department of Revenue January 27 & 28, 2014 St. Michael City Center
Chairperson Steve Sinell convened the Narrative Grading Committee: Deb CEHs for Seminars involving Vendors: meeting at 9:30 am. Volkert made a motion to reappoint all The board discussed seminars with vendor narrative committee members, Teresa involvement and determined that more Dave Marhula was unable to attend. Mitchell and Kim Jensen, with Bob Wilson details are needed when seminars are as Chair. Keith Albertsen seconded the submitted to the board for approval so the board can make an informed decision. Board members in attendance were: motion. The motion carried. Keith Albertsen Updates Elective Suggestions: The board discussed Brian Koester the need to develop a list of courses that A letter was sent out to Teresa Mitchell Mike Amo have been approved for use as an elective. on Tuesday, December 17, 2013 with the Gregg Larson Keith Albertsen made a motion to have the board’s decision on her request for approval Jane Grossinger board provide a list of vendors and examples and endorsement of graders and grading Steve Sinell of courses for the elective. Brian Koester requirements for the Form Report. Jon Klockziem seconded the motion. The motion carried. Deb Volkert Deb Volkert contacted the Department of The list will be on the board’s website. Commerce requesting information related Jurisdictional License Level Appeals: Minutes of the November 19, 2013 meeting to how Commerce reviews courses; what The board discussed the appeals they had were reviewed. Brian Koester moved to is reviewed, how often and how much time previously received via email and other approve the minutes. Mike Amo seconded is spent on review. Response is in board feedback, including comments from Teresa the motion. The motion carried. members packets. Mitchell, grading committee chair. Keith The Grading Request for the Form Report, Albertsen made a motion to rescind the Election of Officers Grading Request for the Demonstration portion of the March 2013 motion that Nomination for Vice Chair: Keith Narrative or the Tax Court Narrative and required all districts be CMAS by July 1, Albertsen made a motion to nominate Brian the Request Form for Course Approval have 2016. Brian Koester seconded the motion. Koester for vice chair, that all nominations been revised and are on the Minnesota State The motion carried. cease and a unanimous ballot be cast. Mike Board of Assessors website. An appeal was received from one county seconded the motion. The motion carried. concerning the 2019 changes. The board Discussion Items: Brian Koester is the Vice Chair. will request further information from the Grader Payments: Brian Koester made county before making a decision regarding Nomination for Chair: Brian Koester a motion to increase the payments to the that appeal. made a motion to nominate Steve Sinell graders from $35.00 to $80.00 for form Review Proposed Rule Changes: The as Chair, that all nominations cease and a reports and from $60.00 to $140.00 for board began reviewing potential rule unanimous ballot be cast. Jane seconded the narratives. Jane Grossinger seconded the changes, including many that have come motion. The motion carried. Steve Sinell motion. The motion carried. is the Chair. from previous discussions. As part of the Interviews: The board discussed options discussion, Mike Amo made a motion Grading Committee Appointments for handling the expected increase in the that the AAS designation be removed as Form Report Grading Committee: Brian number of interviews. an equivalency to the income narrative Koester made a motion to reappoint all Code of Conduct: Review proposed requirement for the SAMA designation, and form report committee members, Kyle wording of new section 1(e) on Code of that the AAS be added as an equivalency to Holmes, Bob Wilson, Kim Jensen, Bill Conduct and Ethics document. Mike Amo the residential narrative requirement for the Effertz, Patrick Chapman, Tina Dietrich-Von made the motion that the proposal to change AMA designation. Keith seconded. The Eschen, Rebecca Malmquist and Keith Kern, the Code of Conduct be withdrawn. Deb motion carried. with Teresa Mitchell as Chair. Deb Volkert Volkert seconded the motion. The motion Online Continuing Ed: The board had a seconded the motion. The motion carried. carried. general discussion related to online courses.
23 Equal Eyes | Spring 2014 State Board, continued
No policies were changed as a result of the education committee approved Joshua WSATA to be used as an elective course. discussion. Hoogland’s request for 4 continuing Mike Amo made the motion to approve education hours via email on December the course as an elective. Brian Koester The board recessed at 4:20pm. 9, 2013. seconded the motion. The motion carried. Tuesday, January 28, 2014 Joshua Hoogland requested CEH’s for Request for Continuing Education Hours the 2014 Apartment Summit that will be Chairperson Steve Sinell reconvened the Ehlers & Associates, Inc requested the held on January 10, 2014 sponsored by meeting at 9:30 am. board to review the Ehlers Minnesota Minnesota Real Estate Journal. The board’s Public Finance Seminar that will be held continuing education committee approved Discussion Items (cont. from Monday) on February 6 – 7, 2014 and sponsored by Joshua Hoogland’s request for 4 continuing Ehlers & Associates, Inc. for continuing Data collectors: The board continued the education hours via email on December 17, education hours. Deb Volkert made a discussion of data collectors, especially 2013. motion to approve the seminar for up to 6 if used for income-producing property. Joshua Hoogland requested CEH’s for continuing education hours per day as long General consensus was that data collectors the Commercial Real Estate Valuation & as a minimum of 3 hours is documented, make subjective decisions and therefore Appraisal Forecast Summit that will be for the following sessions only: TIF and should be licensed within three years for held on February 5, 2014 sponsored by Abatement 101, Developer Roundtable non-income producing property and must Minnesota Real Estate Journal. The board’s Housing Trends, TIF 201, TIF Case Studies, be licensed as income qualified for income- continuing education committee approved The Future of Retail, Assessor’s Update, producing property. The board feels that Joshua Hoogland’s request for 4 continuing Special Legislation Case Studies (TIF), and some education/guidelines are necessary for education hours via email on January 16, Water Resource Impact on Development. data collectors as they are representing the 2014. Mike Amo seconded the motion. The assessment community. Brian Koester will motion carried. talk to MAAO regarding the board’s desire Kelly Schomer – requested CEH’s for to see an on-line course or a Power Point that the following McKissock online courses; Application for Certified Minnesota could be used by counties or cities to provide Essential Elements of Disclosures and Assessor the basics for data collectors. Disclaimers, Land and Site Valuation and Lori Bistodeau, Sherburne County, applied Residential Appraisal Review. The board’s Experience Policy: Brian Koester made for the Certified Minnesota Assessor license. continuing education committee approved a motion to change the reference in the Her education includes Assessment Laws Kelly Schomer’s request for Essential experience policy for an initial assessor’s and Procedures, Basic Appraisal Principles, Elements of Disclosures and Disclaimers license application from two years to Basic Appraisal Procedures and Mass for 5 continuing education hours, Land and three years for either technical/clerical Appraisal Basics. Assessment experience Site Valuation for 7 continuing education assessment-related or appraisal experience. since January 2011. hours and Residential Appraisal Review for Gregg Larson seconded the motion. The 7 continuing education hours via email on Brian Israelson, Local Assessor in Hubbard motion carried. January 23, 2014. County, applied for the Certified Minnesota Assessor license. His education includes Approved Continuing Education Hours Denied Continuing Education Hours Assessment Laws and Procedures, Basic Requests Adeline Olson requested CEH’s for the Appraisal Principles, Basic Appraisal Dave Anderson requested CEH’s for the Dealing with Difficult People seminar Procedures and Mass Appraisal Basics. 2013 Senior Housing Seminar that was being held on multiple dates in March 2014 Assessment experience since January 2011. held on November 1, 2013 sponsored by sponsored by Career Track. The board’s James Pietila, Itasca County, applied for Minnesota Real Estate Journal. The board’s continuing education committee denied the Certified Minnesota Assessor license. continuing education committee approved the course via email on January 14, 2014 His education includes Assessment Laws Dave Anderson’s request for 4 continuing because the seminar was not specific to the and Procedures, Basic Appraisal Principles, education hours via email on November assessment field. Basic Appraisal Procedures and Mass 26, 2013. Request for Elective Course Appraisal Basics. Assessment experience since February 2013. Joshua Hoogland requested CEH’s for Jon Van Nurden requested the board to the 2013 Office Summit that was held on review the course description for Course 101 Vilma Topuzi, Active Military, applied for December 9, 2013 sponsored by Minnesota Advanced class/Special Topics Workshop at the Certified Minnesota Assessor license. Real Estate Journal. The board’s continuing the Unitary Appraisal School sponsored by Her education includes Assessment Laws
24 Equal Eyes | Spring 2014 State Board, continued and Procedures, Basic Appraisal Principles, passed the grading committee in March carried. Basic Appraisal Procedures and Mass 2011 and he passed the Residential Case Mike Harvey, St. Louis County, met Appraisal Basics. Assessment experience Study Exam in September 2013. Marvin with the Board for his Accreditation since June 2012. has 27 years of assessment experience and Oral Interview. His education includes he applied for the Accredited Minnesota Keith Albertsen made a motion to award Assessment Laws and Procedures, Appraisal Assessor License. Gregg Larson made a the Certified Minnesota Assessor license to Principles, Appraisal Procedures, Mass motion to award the Accredited Minnesota Lori Bistodeau and Brian Israelson effective Appraisal Basics, Basic Income Approach Assessor license to Marvin Deick. Brian January 28, 2014; James Pietila effective to Value, Income Approach to Valuation, Koester seconded the motion. The motion February 19, 2014. Mike Amo seconded the MN Assessment Administration and USPAP. carried. motion. The motion carried. Mike’s Demonstration Form Appraisal report Vilma Topuzi’s application was tabled until Kevin Scheidecker, Otter Tail County, passed the grading committee in December she is informed of the possible consequences met with the Board for his Accreditation 2013 and he passed the Residential Case of obtaining the Certified Minnesota Oral Interview. His education includes Study Exam in November 2013. Mike Assessor license while unable to gain Assessment Laws and Procedures, Appraisal has 4 years of assessment experience and additional assessment experience. Principles, Basic Appraisal Procedures, he applied for the Accredited Minnesota Appointments with the Board Mass Appraisal Basics, Basic Income Assessor License. Jane Grossinger made a Approach, Income Approach to Valuation, motion to award the Accredited Minnesota Stacy Honkomp, Douglas County, met MN Assessment Administration, General Assessor license to Mike Harvey. Gregg with the Board for her Accreditation Appraiser Market Analysis Highest & Larson seconded the motion. The motion Oral Interview. Her education includes Best Use (elective) and USPAP. Kevin’s carried. Assessment Laws, History and Procedure Demonstration Form Appraisal report (Course A), Appraisal Principles, Appraisal Chris Odden, Todd County, met with the passed the grading committee in July 2012 Procedures, Mass Appraisal Basics, Basic Board for his Accreditation Oral Interview. and he passed the Residential Case Study Income Approach, Income Approach to His education includes Assessment Laws Exam in August 2012. Kevin has 3 years Valuation, MN Assessment Administration and Procedures (Course A), Residential of assessment experience and he applied for and USPAP. Stacy’s Demonstration Appraisal Principles, Residential Appraisal the Accredited Minnesota Assessor License. Form Appraisal report passed the grading Procedures, Techniques of Mass Appraisal Keith Albertsen made a motion to award committee in October 2013 and she (Course H), Basic Income Approach to the Accredited Minnesota Assessor license passed the Residential Case Study Exam Value, Income Approach to Valuation, to Kevin Scheidecker. Jon Klockziem in January 2014. Stacy has 9 years of Management & Supervision and USPAP. seconded the motion. The motion carried. assessment experience and she applied for Chris’s Demonstration Form Appraisal the Accredited Minnesota Assessor License. Robert Sheehan, Ramsey County, met report passed the grading committee in Deb Volkert made a motion to award the with the Board for his second Accreditation January 2014 and he passed the Residential Accredited Minnesota Assessor license to Oral Interview (previously interviewed Case Study Exam in December 2013. Chris Stacy Honkomp. Mike Amo seconded the on November 19, 2013). His education has 8 years of assessment experience and motion. The motion carried. includes Assessment Laws, History and he applied for the Accredited Minnesota Procedures, Residential Appraisal Principles, Assessor License. Brian Koester made a Keith Albertsen excused himself from the Residential Appraisal Procedures, Mass motion to award the Accredited Minnesota interview for Stacy Honkomp. They are Appraisal Basics, Basic Income Approach Assessor license to Mike Harvey. Keith co-workers. to Value, Income Approach to Valuation, Albertsen seconded the motion. The motion Marvin Deick, Ramsey County, met with MN Assessment Administration and USPAP. carried. the Board for his second Accreditation Robert’s Demonstration Form Appraisal The chairperson set the next meeting date as Oral Interview (previously interviewed on report passed the grading committee in Thursday, March 13, 2014 at the Department November 19, 2013). His education includes March 2013 and he passed the Residential of Revenue in St. Paul at 9:30 am. Assessment Law and Procedures (Course Case Study Exam in July 2013. Robert A), Residential Appraisal (Course B), Mass has 13 years of assessment experience and Deb Volkert moved to pay the expenses for Appraisal (Course H), Income Approach to he applied for the Accredited Minnesota the meeting. Brian seconded the motion. Valuation, IAAO Mass Appraisal of Income- Assessor License. Brian Koester made a The motion carried. Producing Property, MN Assessment motion to award the Accredited Minnesota Brian Koester moved to adjourn the meeting. Administration and USPAP. Marvin’s Assessor license to Robert Sheehan. Gregg Deb Volkert seconded the motion. The Demonstration Form Appraisal report Larson seconded the motion. The motion motion carried.
25 Equal Eyes | Spring 2014 Global Assessment Trends A Series by Solomon Akanki, SAMA
GHANA
In 1957, Ghana became the first African nation to declare independence from European colonization. The country is bordered by the Ivory Coast in the west, Burkina Faso in the north, Togo in the east and the Gulf of Guinea and Atlantic Ocean in the south. The word Ghana means “Warrior King”. Ghana has a 92,099 sq mi land mass and has an Atlantic coastline that stretches 350 miles. Ghana is geographically closer to the “Centre” of the world than any other country in the world; even though the notional Centre, (0°, 0°) is located in the Atlantic Ocean approximately 382 miles off the south-east coast of Ghana. Lake Volta, the world’s largest artificial lake, is located in Ghana.
Ghana has, in recent years, attained rapid economic growth and rising human development. Ghana is a petroleum and natural gas producer, one of the world’s largest gold and diamond producers, the second largest cocoa producer in the world and Ghana is home to Lake Volta, the largest artificial lake in the world by surface area. Ghana is a regional power and has regional hegemony.
Ghana is divided into 10 administrative regions, sub divided into 275 districts. The 2010 population estimate is 24.2 million people. Ghana is a natural resource rich country possessing a great abundance of industrial minerals, hydrocarbons and other vast array of natural resources and is an emerging designated digital economy with mixed economy hybridization and an emerging market with 8.7% GDP growth in 2012 and an economic plan target known as the “Ghana Vision 2020” that will see Ghana become the first country on the Africa continent
26 Equal Eyes | Spring 2014 Assessment Trends, continued
to become a developed country from the real estate market investment perspective and equalization! As I researched further years 2020 to 2029 followed by a newly and attraction comes from Ghana’s tropical I discovered a proposal to tax vacant land. industrialized country from the years 2030 location and robust political stability. An I really hope that proposal was granted! to 2039. The Ghanaian economy maintains increasing number of the Ghanaians are The taxpayer is the owner of the land and the most rapid and highest GDP growth rates investing in properties and the Ghana improvements. Tax rates range from 0.5% on the Africa continent and had the second government is empowering the private to 3%. highest GDP growth in the world, recording sector in the real estate direction. over 14% GDP growth in the year 2011. The Responsibility for Valuations economy of Ghana is tied to the Chinese currency (Renminbi) along with Ghana’s The Land Valuation Board (LVB) is vast gold reserves. In 2013 the Bank of responsible for valuations. The laws however Ghana began circulating the Renminbi allow room for the participation of private throughout Ghanaian state owned banks and sector appraisers (they call them valuers) to the Ghana public as hard currency along under the supervision of public sector with the national Ghana cedi as a second appraisers. Most pro-active jurisdictions national trade currency. hire private appraisers due to the capacity problem experienced by the Land Valuation Board. Residential Real Estate Valuation Cycle
Tax Assessment System The required period for revaluation is 5 years; however due to the cost involved Ask any Ghanaian who owns a piece of real the last revaluation was done after 17 estate in Ghana today how much property years. Again as I read this I wondered how tax he or she pays annually and you will fairness and equalization can be ensured be shocked at the derisive answers you if revaluation is done once every 5 years get. However, ask anyone in Minnesota the talk less of after 17 years! There are many Apartment in Ghana same question and you will be told bluntly reasons the costs of administering property that it is in the thousands of dollars EVERY tax is high in Ghana – one of the reasons is The real estate and housing market of Ghana YEAR! The operation of Ghana’s real estate lack of GIS; property details are maintained has become an important and strategic market is largely informal; most transactions without spatial data and thus involve lots of economic sector, particularly in the urban take place in the informal rather than the human effort. centers of south Ghana such as Accra formal market as the registration process and Kumasi. Recent developments in the is not well regulated or transparent. Real Objection and Appeal Ghanaian economy has given birth to a estate taxes in Ghana are based on market boom in the construction sector, including values. Since open market valuations require Aggrieved property owners can apply to the housing and public housing sector adequate records of transactions determining the Rate Assessment committee for review. generating and injecting billions of dollars market value is a great challenge in Ghana. If not satisfied with the judgment of the annually into the Ghanaian economy. The Appraisers are often unable to gather Committee he/she can appeal to the High adequate information on comparable Court. properties due to commercial secrecy and lack of data. Enforcement
Tax Base, Taxpayer and Tax Rate If the amount of taxes due in respect of any property is not paid within the period of forty All land and improvements except vacant two days, the District assembly may apply land attract tax. Vacant lands do not attract to the courts for an order to sell the property. tax in Ghana. As I read this I wondered Enforcement remains a problem with the how they ensured the highest and best use property tax administration in Ghana due to of such scarce resources (Vacant lands)! I social factors. No reported cases of sale of Commerical Neighborhoods in Ghana also wondered how they ensured fairness property. Take a one-hour drive through the
27 Equal Eyes | Spring 2014 streets of Ghana and if you are not blinded Opportunities for Reform valuation from 46,000 to 250,000, thereby by the dusty roads, it is the potholes that will increasing the tax base 800 times (Keith, do their own dirty job on your car. Compare Valuations of properties have failed to 1993). This exercise needs to be extended that to the smooth drive we take through keep pace with growth, causing the share to the whole country to ensure a full capture the beautiful streets of Minnesota. Is there of Property Tax revenue in total revenue of revenues from Property taxation. a correlation between property taxes and to become increasingly insignificant. The the roads on which you drive in a city? You reason for the neglect of Property Tax in The operation of Ghana’s real estate market bet there is! Indeed, it is shocking to note Ghana and for that matter, all the district is largely informal at the moment; most that even 57 years after Independence, most assemblies, is that it is politically sensitive. transactions take place in the informal rather people in Ghana still don’t pay property The sensitivity stems from the fact that the than the formal market as the registration taxes. Is it any surprising that when you tax is very visible, effective and difficult to process is not well regulated or transparent. drive through the streets of Ghana you will avoid. Besides, annual action is required to This system needs a complete turnaround. be battling with potholes and dusty roads? keep the tax rise. The visibility of the tax The idea that you could just refuse to pay and the effect of gearing (small increase Enforcement remains a problem with the your property taxes is almost unheard of in in a local government budget can cause an property tax administration in Ghana due the developed world that most developing increase in the Property tax). Since Property to social factors. Most people in Ghana still nations are aspiring to become. Tax will for some time remain an important don’t pay property taxes. Social factors source of local government revenue, action or not, the government has to find a way Exemptions is needed in this area. More recently, an of enforcing property tax payments; all arrangement between the United Kingdom property owners must pay their fair share Buildings used for public religious Valuation Office and the Ghana Valuation of taxes because they all enjoy the benefits. worship, hospitals and clinics, educational Division led to revaluation of all properties Costs must precede benefits! institutions, burial grounds and crematoria, in Accra (this is the capital city and the EE buildings owned by diplomatic missions as largest city in Ghana). The exercise led to an approved by the minister of Foreign Affairs. increase in the number of properties under
The 2014 Fall Conference will be held September 21-24, 2014 at The Radisson Hotel Duluth Harborview
Duluth, Minnesota
28 Equal Eyes | Spring 2014 Assessor Retirements Transitions
Compiled by Nancy Gunderson, SAMA Clay County Assessor Editorial Committee Member
MAAO committees, most notability the Dave has no specific plans after he retires; MAAO education committee, which he has he has a small hobby farm with a handful been on since 1997. Dave is continuously of cattle. The grandkids love to come to the striving to improve assessor education. For “farm” and they keep bugging grandpa to the last 38 years he has been trying to fool get some pigs, sheep, and goats for them people that he knows what he is doing as to play with. What the grandkids want, an assessor. the grandkids get. Looks like Dave will be another farmer complaining about losing Dave and his wife Linda (who retired 2 money and being taxed off his land. years ago after 43 years as a registered nurse) have been married 45 years and have Dave feels very lucky that he has had an three children; Scott, Stacy and Katie. They excellent staff to work with at Le Sueur have eight grandchildren Ellie, Lilli, Ethan, County; they sure did make his job a lot Dave Armstrong, Theo, Laney, Mia, Cael and Conlan; Dave easier. He will miss all the wonderful people Retiring 38 years too late surprised himself by knowing the names of he has gotten to know and work with in his kids and grandkids. Dave decided that MAAO especially the four sisters in the he could not afford any more grandkids so Midwest part of the state. He would like to Dave Armstrong started his assessing career for Christmas last year he paid to have all thank all MAAO members past and present in 1976 as an appraiser for Steele County. the parents’ neutered. for their support and friendship. Dave continued to work for Steele until 1999 Dave introduced Lucy, Bill Effertz’s long when he was appointed Le Sueur County time childhood companion, to MAAO. Congratulations, Dave! Assessor. Dave was president of MAAO Lucy has attended many MAAO Fall 2004-2005 and has been on a number of Conferences. Lucy says “Hi Billy”.
along with other duties within the Auditor’s trees, however the recent dry summers have Office. He worked in the Auditor’s Office slowed the tree growing process down a for five years before starting his career in bit, but he looks forward to the Christmas the assessment field. Chuck was hired as season when people can come out and cut a Deputy Assessor in the Morrison County a tree for their families to enjoy. He also Assessor’s Office in 1983. During Chuck’s enjoys growing pumpkins and taking family time with Morrison County he achieved and friends on hay rides around their farm. the SAMA designation and when the Todd Chuck is happily married to Chris for over 25 County Assessor position opened up in the years and they have three children Andrew, fall of 1989 he was hired and the rest is Lindsay & Holly. Chris is the Todd County history. Chuck has served the taxpayers of MIS Director and she plans on working there Todd County as County Assessor for over for a few more years while Chuck keeps the 24 years with his official retirement date on house tidy and a meal prepared when she Chuck Pelzer December 30, 2013. gets home from a long day at the office. We Retires after 35 years will check back in a year or so to see how In retirement Chuck plans on staying busy. the house chores are going. He enjoys hunting, fishing (especially ice After working in county government for fishing), woodworking, cutting wood and Best Wishes, Chuck! over 35 years, Chuck Pelzer has decided working the land. He will also remain active to retire from his position as Todd County in volunteering in his local community. In Assessor. Chuck began his career in 1978 preparation for retirement, Chuck and his working for the Morrison County Auditor’s family have planted various types of pines Office primarily as game and fish clerk, on their property to be raised as Christmas
29 Equal Eyes | Spring 2014 Transitions, continued
assessor for several townships in Polk recognition for his 38 years of service from County. When all local assessors were the office of the Governor of the State of going to be required to take the training Minnesota. James Haley, Director of Region and become licensed, he took the “Assessor 8 also presented Les with his membership Basic Training” course at Benson, MN in award from MAAO. April, 1974, and Certification Week “A” at Thief River Falls in May, 1974. After Region 8 gave him a Garmin and a gas completing these two weeks he took the gift card to assist him in his future travels. state exam in August of 1974. At that time Nancy Amberson and I gave him the usual a person could receive the CMA license by Norwegian parting gifts ; a Thorvald’s passing the State Qualifying Examination. Cream of Lutefisk cup, Ole n Sven’s Lefsa , After successfully completing the exam, he Bjorn’s Bee Honey, Kalvor’s coffee, Sven’s was licensed by the State Board of Assessors Strawberry’s jam and of course the Ole n as a CMA. Lena fortune cookies. I couldn’t help but Leslie Finseth, notice the labels of the jars had some troll Mahnomen County Assessor Like many others in Northern Minnesota, he looking characters on them, must be new Retires started as an appraiser - with Polk County age. Good Luck Les, med dine fremtidige on September 1st, 1975, until December of bestrebelser! By Adeline Olson, SAMA 1977, when he became the Deputy Assessor Pennington County Assessor with Pennington County. He remained with To kick off his retirement, Les and his wife Pennington County until May 31st of 1990. Mavis were planning a trip to Texas. With On November 14, 2013 the members On June 1st, 1990 he became the County the bear of a winter that we have had we of Region 8 MAAO hosted an informal Assessor for Mahnomen County. can only hope they are still there enjoying retirement party for Les Finseth, following their family and the warmer weather. In the the Region Meeting at Pine Lake. Les, after Les didn’t want a BIG DEAL made out of his future Les and Mavis plan on doing some working full time in the assessment field for retirement. Kathy Gomall, Deputy Assessor traveling and sight-seeing state side. Les will 38 plus years, has decided to hang up his clip for Mahnomen County, was quoted in be missed by Region 8 and his coworkers. board and put his tape measure away. His last saying “she was lucky to even have a coffee He will always be remembered for his day of work was November 30th of 2013. party at the court house for him.” Brad truthful opinions. Averbeck, representing the Department of Les began his career in 1974 as a local Revenue presented Les with a certificate of Enjoy Retirement, Les!
the county installed their first computer. Erling were married in 1974 and moved into At that time their very small office on the town where they started their own family; second floor of the old courthouse became one daughter, Sheri, and two grandchildren, the computer room, and the assessor’s office Marcella (8) and Liam (4). moved to an office area in the basement. Val and Erling have a site on Lake of the The office became a staff of three when Val Woods and enjoy camping and fishing. Val started and it remained that way until 2010. also enjoys bowling, biking, watching sports, She attained her CMA designation in 2008 spending time with her grandchildren, and and started doing the assessment for the making lefsa with family and friends. Val’s City of Roseau along with her assessment plans for retirement are to just do more of support responsibilities. Val has seen a lot what she enjoys and she also stated, “Stay of changes over the years, including four out of trouble”. different county assessors: Robert Hansen, Val has been a very important part of the Jim Hanson, Lorna Sandvik, and Al Heim. Roseau County Assessor’s office for the Val Wensloff Retires She has also worked with a few different past 37 years. The current staff (Marilyn from Roseau County tax systems and has been involved with Zimdars, Liz Lund, Linda Vatnsdal, and the beginning implementation of a CAMA Al Heim) all agrees she will be greatly Val Wensloff retired on February 28th of this system. Some of her fondest memories missed, although they certainly wish her a year after working in the Roseau County include a few practical jokes instigated by well-deserved, long, and healthy retirement. Assessor’s Office for 37 years. She was assessor Jim Hanson. th hired on March 10 , 1977 by then County Val and her husband Erling, who retired Happy Retirement, Val! Assessor Robert Hansen. Everything was from the City of Roseau nine years ago, have done manually when she started. She lived in Roseau County all their lives. Val mentioned there were only adding machines grew up on a small farm just east of Roseau to help with the job until about 1980 when with two brothers and two sisters. Val and
30 Equal Eyes | Spring 2014 Transitions, continued
a branch office located in Hibbing. After I also hope to perfect and market my Rick nine years, a downturn in the economy Puhek Action Retirement figure. It requires forced the company to cut personnel and 2 AA batteries and does nothing. eventually close. Congratulations, Rick! Fortunately, the assessor/building inspector position opened up in Chisholm in the summer of 1982, which allowed me to stay in the area near family and friends. I worked the one-person office for seven years. In December 1989, I was hired by the City of Virginia as the deputy assessor. When the assessor, James Carey, retired in 2001, I was appointed as the assessor for the city. I held this position until my retirement, which Rick Puhek Retires wrapped up 31+ years in the profession. from Virginia City My plans for retirement are to finish the restorations of my 1964 Buick Special My career began in 1973 as a designer for convertible and my 1965 VW, and play and an international engineering company with play with my grandkids.
Is someone from your office retiring? Please contact Nancy Gunderson [email protected]
31 Equal Eyes | Spring 2014 2014 Kenwood Pkwy Minneapolis, MN For Sale!! List Price: $2,495,000
“The Mary Tyler Moore House”
Located at 2104 Kenwood Parkway, Minneapolis MN, is more than just your average turn-of-the-century classic Victorian home. This is the house shown in the opening sequence of the award winning “The Mary Tyler Moore Show” that aired on CBS from 1970 to 1977. It’s not often that Minnesota has a house for sale that was featured in a popular sitcom as the residence of Mary Richards, arguably one of Minnesota’s most iconic fictional characters. So I felt a little trivia about the series was in order. The sitcom was about Mary Richards, a young single woman from rural Minnesota, who moves to Minneapolis and becomes the Associate Producer of the WJM-TV’s Six O’clock News. The opening trailer shows Mary Richards in a 1970 Ford Mustang driving up to the house on Kenwood Parkway in Minneapolis. (For you football fans, from 1973 to 1977 Mary is also shown washing her car while wearing the #10 home jersey of then Minnesota Vikings’ quarterback Fran Tarkenton). This opening title sequence of the show is especially significant as many of the scenes were filmed on location in Minneapolis during both summer and winter. The sequence changed with the season, although it always ended with Mary tossing her hat in the air at an intersection in downtown Minneapolis. As the story line went, Mary rented the apartment located on the third floor behind the Palladian windows. Phyllis Lindstrom, her landlord, lived downstairs while Rhoda Morgenstern, one of Mary Richards’s best friends, rented the attic apartment. While this seems natural enough in today’s world, back in 1970 it was considered a rather daring step for a single, working girl to rent an apartment all by herself. Though the show itself was actually filmed in Hollywood, the house in Minneapolis was used for the exterior shots. Mary’s apartment was basically a 1-room studio with a small kitchenette and a walk-through closet area leading to the bathroom. Mary slept on the hide- a-bed in the living room. She rented the place for $130 a month. Mary continued to rent the apartment for the first 5 seasons of the show. Apparently, after an argument with the producers, the then owners of the Minneapolis house erected a political banner stating “Impeach Richard Nixon” outside the front windows to prevent further use of their home. So both Mary and Rhoda packed their bags and moved to a high rise apartment building in downtown Minneapolis for the duration of the show. The Kenwood Parkway house couldn’t escape stardom though. Fans discovered its location and it became a popular tourist attraction for many years, drawing up to 30 tour buses a day in summer, and people often posing for photos on the lawn.
Features: year built 1900, 9500 sq. ft., lot size .35/ac classic turn-of-the-century millwork, 7 bed- rooms, 9 bathrooms, 5 fireplaces, formal dining room, gourmet kitchen, stainless steel appliances, granite counters, pantry, closet system, hardwood floors, sauna, at- tached 3 stall garage, guest suite above garage, multiple terraces/decks, security system. County: Hennepin 2013 Property Taxes: $46,293 Last Sold: August 2007 for $2,800,000
32 Equal Eyes | Spring 2014 What’s New on the MAAO Website: MAAO In The Cloud
Written by Kelly Baillet, SAMA
You have the ability to go after a certain Have you heard the terms cloud computing, There are many search capabilities, and best year, a certain document name and in storing in the cloud, and cloud services? of all, it reduces paper usage. the case of Equal Eyes a particular year, Well fear not our fellow members; we are To log in to WebDocs: Click on the link volume or issue number. The third and ahead of the times! MAAO is now in the provided on the MAAO site. This should final search tool is the most powerful tool. cloud! What is it? Well, it is an electronic take you directly into the document This is a Text Search. Each document is document management system that contains management system to the home page. scanned in an OCR format, loaded into the documents that have been provided over the document management system, and then many years of MAAO existence. These the software scans the document again for documents are now in a digitized format. The search functionality. Once you locate your format with assistance from the software will document, open it and select Ctrl F to zero allow members to do a variety of searches on in on the text containing your search. that resource pool. Where do you get started? The third and final page/tab is Documents The link to the document management and this basically just shows you all the system is on your Members Home Page documents that are currently in the cloud. and Assessors Resources Page once you That is the entire system, simplistic but are logged in. This link also gives the user powerful. Now that you know how to find name and password information to access a document, what can this system now do the documents via WebDocs. WebDocs The system is simplistic. You have a home for you? Well, here’s a start, ever wonder is document management software. Like page, a search page and a documents page. about the history of the organization? Hey a filing cabinet, WebDocs is where you go The home page will provide access to how about reading how things were done quickly to find documents. instructions and frequently asked questions. back in 1951?
Now what? Maybe you would like to save, Webdocs is more than a filing cabinet. You copy, print or email? No problem! MAAO can: masters the cloud! No problem! • Access files from anywhere you The search page/tab will bring you to a This was an amazing project to work on and have access to the internet. default Basic Search. In order to complete actually seeing all the rich history of the • Make these documents accessible a basic search you should generally know organization. I want to sincerely thank the across the organization 24/7. what document you are looking for, such Executive Board Team that believed in me • View the documents from any web as Equal Eyes. The Key Search tab is next and all the members of the organization for browser. and there are certain “keys” stored when a your support over the years! • Store documents in a common document is loaded into the system. format.
33 Equal Eyes | Spring 2014 WNOW, continued What’s On Your Mind? AssessorX The Editorial Board wishes to create a forum for Assessor’s or other relevant stakeholders in the real estate industry. We would like to invite you to contribute your thoughts, concerns or general point of view about any topic related to our line of work. Please note, content submit- ted can be anonymous or credited as you wish. Also of note, all submissions will be subject to the best judgement of the Editorial Board before being printed. So, what’s on your mind? Submit to [email protected].
Are you in interested in becoming an Editorial Board Committee Member? Equal Eyes is looking for you! Now is your chance to Get Involved And Join An MAAO Committee email: [email protected] for more information
34 Equal Eyes | Spring 2014 A Letter From the Editor Make the Most of Today
Written by Lori Thingvold, AMA Wright County Equal Eyes Editor
Spring in Minnesota. Warmer weather, green grass, sunshine....and Board of Appeal meetings. We embrace this change from winter to spring, and at the same time we brace ourselves for the upcoming meetings. For me, it’s the fear of the unknown; who will walk in unexpectedly and have me scrambling to find the information I need? As we prepare to take the good with the bad, we need to remind our- selves that this season will come and go very quickly, and soon we’ll be on to a new phase of assessing. I do enjoy the changes that take place throughout the year-long assessment cycle. If there’s a time dur- ing the year that you don’t particularly care for, it will be over before you know it and hopefully what’s around the corner is more appealing to you. Meanwhile, make the most of each day. Work hard, play hard, and step up to the plate when you’re needed - it will be a rewarding experience. Here’s a thought:
Imagine there is a bank account that credits your account each morning with $86,400. It carries over no balance from day to day. Every evening the bank deletes whatever part of the balance you failed to use during the day. What would you do? Draw out every cent, of course? Each of us has such a bank. It’s name is time. Every morning, it credits you with 86,400 seconds. Every night it writes off as lost, whatever of this you have failed to invest to a good purpose. It carries over no balance. It allows no overdraft. Each day it opens a new account for you. Each night it burns the remains of the day. If you fail to use the day’s deposits, the loss is yours. There is no drawing against “tomorrow”. You must live in the present on today’s deposits. Invest it so as to get from it the utmost in health, happiness, and success. The clock is running. Make the most of today. - Marc Levy
I dedicate this issue to Greg Kramber, Wright County Assessor. He continues to work toward recovery from an automobile accident in February. His famous line around the office: “Livin’ the Dream”. And even though some days there was a hint of sarcasm in his voice, I truly believe he meant it.
Thanks for your patience while we make some changes to our Equal Eyes committee. A huge thank you to James Haley for a fantastic job as Editor. I am realizing how much time and effort he put into each issue, and he is already missed! Jason Jorgenson of Morrison County will be joining us as As- sociate Editor. Please feel free to contact myself or Jason with any comments or suggestions:
[email protected] [email protected]
35 Equal Eyes | Spring 2014 EQUAL EYES PUBLISHED BY THE MINNESOTA ASSOCIATION OF ASSESSING OFFICERS
36 Equal Eyes | Spring 2014