1. Property tax exemption/Dakota Ag Co-op

CASS COUNTY GOVERNMENT ..-.. Auditor Michael Montiplaisir, CPA 701-241-5601 Treasurer Charlotte Sandvik 701-241-5611 Director of Equalization Frank Klein 701-241-5616 Box 2806 211 Ninth Street South Fargo, North Dakota 58103 Fax 701-241-5728 www.casscountygov.com October 11, 2005 Cass County Board of Commissioners PO Box 2806 Fargo, ND 58108 Re: Payment in Lieu of Taxes request from Dakota Ag Coop, Kindred Dear Board Members: Dakota Ag Coop is asking for payments in lieu of taxes of$1.00 for the years 2007-2017 under NDCC 40-57.1, for the additional improvements to their property located near the City of Kindred. The coop operates a unit train loading facility in and near Kindred. They're intending to construct a 13x70 platform scale & receiving conveyor, a 78' and a 90' diameter steel bin, fill conveyor, screen type cleaner and automatic probe system. It appears that the cost is about $1,250,000. Currently, the assessment on the facility is about $1,200,000, with an additional $770,000 assessment on the elevator facility within Kindred City. Taxes on these two parcels are about $18,000 and $15,000 respectively. Per county policy, the applicants have deposited the $100 fee and have published the two notices to competitors. Although the application indicates the market value to be about $1,250,000, it's doubtful that the assessment would increase by this amount. It would appear that the stated amount is most likely construction costs which may not add dollar for dollar value. Also, equipment costs appear to be included and some of these equipment costs are not assessable. The effective tax rate is 1.5%. If, say, the market value would increase $500,000, then the tax due to the new improvements would be $7,500 per year. The action before you is whether to deny, grant, or grant in part, the payment in lieu of tax request. You may want to refer to the Cass County Tax Incentive Policy (enclosed) for guidance. Sincerely, ~~ :x~ Frank Klein Cass County Director of Equalization