April 14, 2015
The board convened as a board of equalization. Members took their oaths. Director of Equalization Tami Severson, DOE assistant Darcy Albert, DOE assistant Cindy Foster, States Attorney Greg Protsch, Bernard Feldhaus, Kay Hageman, Larry Gauger, John Haak, Duane Miller, John Mengenhausen, Collin Wunder, Curt Neises, Steve Carmon, Dave Dawson, Bob Calmus, Jerry Calmus, Bonnie Burmeister, John Reisch, Dave Callies were present. The Pledge of Allegiance was recited. Chairman Wentland called the meeting to order.
Treasurer Debbie Eggert informed the board that she has received applications for the freeze on assessments of disabled and senior citizens and requested that the board instruct the director of equalization to make those changes to the assessment roll. Motion by Reisch, seconded by Protsch and carried to authorize the director to make the changes for the applications submitted to the treasurer.
John Mengenhausen representing Howard Industries addressed the board to inform them on the activities of the group and to question the assessment of the Donnerite Building. He stated that when the building was built in 2006 the assessment was probably assessed correctly. But he now has concerns as to the assessment due to the age of the building. He stated comparisons of assessments of other buildings located in the Howard Industrial area. The Howard Industries board is concerned about losing business due to the assessments. He stated that equipment was included in the assessment of the Donnerite building. He requested that the board do what is allowable within the law to encourage Donnerite to remain and build in Howard.
John Reisch also representing Howard Industries gave an overview of how Miner County has changed over the years. He requested that the board make a decision to get business to come and stay in Miner County. He also told the board that he knew that the decision will be difficult and that not all people will be happy with that decision.
Appeal 2015-1 and 2015-2 were withdrawn prior to the meeting.
The board considered Appeal 2015-04 from Judy Shaw Foundation Inc. for the assessment on Lot 5, 6 & 7 including vacated alley & S2 vacated Farmer Avenue adjoining Lot 5 Howard City – OP. The appellant was not present. Tami Severson presented information concerning the current assessment. No other comparable sales were available within SD at the time of the assessment. The cost method was used . Davison County assessors assisted with the original assessment of this property as they have had experience with assessing hotels and convention centers. Severson stated that a 35% location factor was applied to this property and that it is in the last year of the discretionary reduction. It was moved by Reisch, and seconded by Durant to agree with the current assessment placed by the Director and no changes are to be made. Gassman stated that within the appeal letter the appellant stated that they are a 501 3C (tax exempt corporation) and that if nothing was done with the assessment they would be exercising their tax exempt status. Tami Severson informed the board that tax exempt applications are due in her office by November 1st. This property owner did not apply for that status by the deadline so therefore exempt status is not an option to be reviewed at this 2015 board of equalization meeting. Chairman Wentland called for the vote. Voting aye: Durant, Reisch, Gassman, Protsch and Wentland. Voting nay: none. Motion carried.
Bill Donner joined the meeting. The board considered Appeal # 2015-3 from WM3D SD Properties LLC for the assessment of Lots 2 & 3 2 Industrial Park Howard City Acre Property SE ¼ 3-106-56. Bill Donner stated that he would like to have the assessment lowered to help with the business and expansion.
Tami Severson -reviewed the process that was used to arrive at the assessed value. She stated that the cost approach was utilized with the “good” classification under light manufacturing through the Marshall & Swift calculator. She also informed those in attendance that no equipment values were included in the assessment of the building. Contact with the contractor who erected the building revealed that the building construction value was $42.97/sq. ft. She stated that this structure is superior to other structures in the industrial park due to age, building size, 6 overhead doors for access to the building, individual office spaces, large conference room, multi-stall bathrooms, finished enclosed walls the full height of the industrial space, zoned in-floor heat, 26 gauge steel siding with 8 inches of insulation and a roof featuring 9 inches of insulation.
Protsch had figures on different classifications using a different class for light manufacturing which closely reflected the actual building costs as stated by the contractor.
Reisch stated that comparing the buildings at the industrial site reflected a large differential assessment cost between the marjority of the properties and Donnerite’s property. He referenced Information that was provided by Howard Industries to commissioners prior to the day of the meeting. This information was not made available to the director of equalization.
Protsch talked about depreciation. External depreciation vs. physical depreciation. This property would maybe qualify for depreciation. But, if no other buildings have been given depreciation this would be an inequality if one is depreciated and another is not. Donner informed the board that the zoned in floor heating has never be used as it was not installed properly and is not operational.
Gassman questioned the ability to utilize depreciation and also stated the building had been sitting empty for 4 years and that should factor into the assessment of the building.
States Attorney Protsch informed the board that they will need a methodology to come up with a solution to the appeal.
Donner stated that other local communities and states give breaks to businesses to help grow the economy. He would encourage the board to make a decision to reduce the property value to encourage economic growth here in Miner County.
Based on all the evidence and using the 2006 February update of Marshall & Swift light manufacturing class S “average” cost at 44.65/sq foot which is close to the original building cost of $44.65/ sq. ft Protsch moved to the lower assessment of parcel 4693 to 679,250 on the structure with land value of 27,923 for a total assessment of 707.173. Taking into account the factors applied to all other Howard City commercial properties. Seconded by Gassman. Wentland called for the vote. Voting aye: Durant, Reisch, Gassman, Protsch and Wentland. Voting nay: none. Motion carried.
Wentland reopened the hearing to allow the testimony of Dave Graff, on behalf of Judy Shaw Foundation, Inc. as Judy Shaw and Graff arrived at the meeting at 10:00 missing their 9:30 appointment. Graff stated that they had considered claiming tax exempt status, but decided that if they could be assessed at the purchase price they would keep the property on the tax rolls and pay taxes on the purchase price.
With that further testimony the chair called for a motion to change the decision made earlier in the meeting. No motion was made therefore the previous motion stands.
It was moved by Gassman, seconded by Durant and carried to approve the annual applications for tax exempt status, as previously published in the legal newspaper with the following correction: Carthage City: Auditorium Lots 7 & 8 Block 5 O.P. and remove School W.115’ of Lots 7 * ( 10 11 & 12 Block 2 Cooper’s Add.
Motion by Durant, seconded by Reisch and carried to authorize the Director of Equalization to make changes on the assessment rolls to reflect the qualifying applications for the exemption on assessments of dwellings of the disabled veterans.
Motion by Durant, seconded by Gassman and carried to authorize the Director of Equalization to make the changes on the assessment rolls to correct the following clerical errors:
DOE Clerical Corrections 2015
Record # Legal Description Explanation of Change
2577 Tract A of Cloverleaf First Addition Remove value recorded twice
SE4 3-108-56
EXC Lots 1, 2, 3, 4, 5, 6, 7, 8, 9, 11,12, 15, 16
2576 Lot 15 Cloverleaf second addition SE4 Remove value recorded twice
3-108-56
NW4 17-106-55
2745 SW ¼, 3-108-57 Remove structure value
4867 SE4 E 139.3’ OF N 110’ OF W 293.6’ OF LT5 Deduct 61,259 for damage
OF LT15 & SE4 S. 107.6’ OF W 293.6’ OF LT5
OF LT 15 OF THE RECORDED PLAT OF LT6
OF LT15 & LT5, LT15
The Board recessed as a Board of Equalization until May 5, 2015.