03a. Abatement hearing- Travelodge

Equalization Department Box 2806 Telephone: 701-241-5616 211 Ninth Street South Fax: 701-241-5729 Fargo, ND 58103 assessor@casscountynd.gov Staff Report for Abatement 4509 Tuesday, January 18, 2022 City: Fargo Appellant: Yoginivas, LLC – Represented by Fredrikson & Byron, P.A. Location: 1407 35th St S Parcel Number: 01-1390-00020-000 Issue: Applicant is requesting a reduction in value from $1,507,100 ($23,548 per room) to $690,000 ($10,781 per room) Summary The property, more commonly known as Travelodge, is a 29,393 square foot motel built in 1987 with 64 rooms. An appraisal was supplied by the appellant and included along with information from all parties. Analysis The appraisal supplied by the appellant included a cost, sales, and income analysis of the subject property. For an income analysis to effectively work for mass appraisal purposes, consideration must be given to local market rates (vacancy, room, expenses, etc). I feel the income analysis, which is the core analysis used in this abatement, is property specific and does not reflect how similar properties would produce. The sales analysis provided in the appraisal includes no sales from the local market, which I found questionable, as the Fargo assessment office was able to provide three local sales, two of which are neighboring properties. I feel the comparable local sales supplied by the Fargo assessment office support the current valuation of the property and their cost approach shows that the property is equitable amongst similar competing properties. Recommendation It is my recommendation that the Fargo assessment office was able to demonstrate support for the current valuation of the property and the value of $1,507,100 is reflective of the market for the 2021 taxable year. Suggested motion Deny the abatement request 4509 for Yoginivas, LLC