03a. Abatement hearing- Travelodge

Travelodge 1407 35 St S Parcel Number: 01-1390-00020-000 Owner: Yoginivas LLC Information provided above is a summary of the analysis conducted. Further analysis is provided from the City of Fargo Assessment Dept. Appeal of Assessment for Year: 2021 Name of Applicant: Yoginivas, LLC Representative: David Tibbals & Michael Raum, Fredrikson & Byron, P.A. Assessed Value(s) 2021 $ 1,507,100 Applicants Requested Value(s) 2021 $ 690,000 -54.0% General Property Information Property Type Motel Year Built 1987 Building Area 29,393 Room Count 64 Summary The property appears to have experienced foreclosure in 2020. This property was acquired by American Bank Center, and subsequently by Dineshkumar & Jayesh Patel. Neither sale was arms-length, as the Patel family owned the property prior to the bank sale. Applicant provided an appraisal for financing purposes as support for the reduced value. We are unsure of the requirements set-forth in that appraisal, as it was not for property tax purposes. We also are concerned that comparable sales from the subject market were not prioritized. We support the 2021 value with comparable sales and a market adjusted cost approach. Comparable Sales Summary Property Name/Type Address Sale Date Contract Price Adjusted Price Year Built Total $/Room Total $ / SF AmericInn 1423 35 St S 03/30/2018 $ 2,950,000 $2,519,000 1992 $ 41,983 $ 82.61 Motel 6 1202 36 St S 09/25/2018 $ 1,325,000 $ 1,128,650 1974 $ 11,757 $ 29.31 Day’s Inn 3431 14 Ave S 10/13/2017 $ 2,715,000 $ 2,318,050 1992 $ 30,907 $ 65.30 Subject 1407 35 St S 1987 $ 23,548 $ 51.27 Competing Properties (Assessed Values) Summary To test for uniformity among assessments, we studied the assessed valuations of similar properties. The sample set consists of hotel and motel properties that are ‘limited service facilities’. We limited our search to those properties built after 1999. We found 18 such properties within Fargo. We found the subject property to be near the median assessed value for this type of property. We feel the subject is equalized and fairly valued relative to its competitors. Value Per Room Value Per SF Maximum $ 39,796 $ 80.39 3rd Quartile $ 29,805 $ 61.44 Median $ 23,707 $ 52.98 1st Quartile $ 18,074 $ 44.15 Minimum $ 15,222 $ 31.05 Subject $ 23,548 $ 51.27 Recommended Action: Retain the current value of $1,507,100 for the 2021 Tax Year.