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<br />RECEIVEG <br /> <br />APR 2 5 2005 <br /> <br />INVESTIGATION OF ABATEMENT APPLICATION <br /> <br />CASS COUNTY COMMISSION <br /> <br />ABATEMENT NO. 4230 <br /> <br />Following is a report on the investigation of the abatement application of: Kmart Corp, Lessee <br /> <br />Cass County Board of Commissioners and State Tax Commissioner: <br /> <br />IP Rand of Burr Wolff, property tax representative for Kmart, lessee, is asking that the valuation <br />be reduced on their property located at 2301 University Drive South for the year 2000. They're <br />asking that the valuation be reduced from $3,574,000 to $3,170,400. The property is owned by <br />Tri-City Associates and in addition to the Kmart store, it includes the Plaza Strip Center, Burger <br />King, & Fastbank A TM structures. IP Rand asks that the jurisidiction appraiser review the <br />attached documents and consider adjusting the 2000 value. <br /> <br />The City of Fargo recommended denial of the abatement application. The attached Fargo <br />Assessment Department report was the basis of the City's recommendation to deny the <br />abatement application. <br /> <br />I reviewed the documents provided by IP Rand. It includes mostly lists of sales and leases that <br />Kmart was a party to. The property tax representative also included an income approach <br />summary. Although the applicant has provided general information, there is unfortunately no <br />analysis on how this information supports their contention that the assessment is excessive. The <br />income approach consists of one page with no discussion on how the income, expense and <br />capitalization rate estimates were arrived at. There is no cost approach to value. The sales <br />comparison approach amounts to listings of sales, but no analysis comparing the sales to the <br />subject property. <br /> <br />The City of Fargo report contains sales of properties in the region supporting their value (pg 8). <br />They also include a discussion of the income lease rates (pg 8-10). The cost approach <br />information is listed on pages 10, and 13-20. <br /> <br />After reviewing all the information that was presented, it is my conclusion that the applicant has <br />not shown that the assessment is invalid, inequitable, or excessive. <br /> <br />SUGGESTED MOTION: "I move that Abatement # 4230 be denied, as recommended by <br />the City of Fargo and the Director of Equalization." <br /> <br />Dated this 25th day of April, 2005. <br /> <br />-~-/) , <br />(~~~ <br /> <br />Francis Klein <br />Cass County Director of Tax Equalization <br /> <br />j :\tax\wp\abate <br />