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Amazon Fulfillment Center 3737 44 Ave N <br />Parcel Number: 01-8760-00100-000 Owner: Preylock Fargo LLC <br />Appeal of Assessment for Year: 2022 <br /> Name of Applicant: James Poliyanskiy, Amazon <br />Current Assessed Value $ 123,627,000 <br />Applicant’s Requested Value Unspecified <br />General Property Information <br />Property Type Warehouse <br />Total Floor Area (SF) 1,079,631 <br />Gross Building Area (SF) 1,570,119 <br />Land Size (Acres) 107.46 ac (+/-) <br />Declared Construction Cost* (w/land) $ 147.1M – 155.2M <br />Sale Price (12/10/2021)** $ 202,147,000 <br />**Property included in declared construction cost and sale price <br />are not fully known. Specifically items related to equipment, <br />intangible value, and civil costs. <br />Summary <br />Mr. Poliyanskiy of Amazon contacted our office on April 18th, 2022 to request a review of the 2022 true and full value. We provided him information on the valuation methodology, based on the cost approach. The valuation uses Marshall Valuation Service as a guide. A multiplier is used to adjust costs upward or downward to account for the local market and time. The valuation was set based on descriptions in Marshall Valuation Service. The multiplier used is the same as used for other newly constructed industrials. <br />Mr. Poliyanskiy provided a re-worked cost approach using a similar methodology. His preliminary suggested valuation is $96,852,564. He selected a lower quality of construction, different HVAC adjustments, and different fire suppression adjustments. He also suggested removing the upper mezzanine level (239,990 sf) and freight elevators (vertical reciprocating conveyors) from the real estate tax roll as he views them as personal property. He also suggested a lower land value based on his research. <br />Our office requested information relating to the recent construction costs, the sale of the property in December of 2021, the lease in place, and the mortgage on file. The appellant has not yet been able to provide any of the requested documentation. <br />Staff reviewed the property on-site on April 28, 2022. Our findings tend to blend with Mr. Poliyanskiy’s recommendations and our original listing of the property. At this time, we feel that both mezzanine levels are real estate, and should be valued and taxed as such. We feel this way because they are affixed to the structure in a way that makes their removal economically prohibitive. Both levels of mezzanine have electrical, fire suppression, and lighting affixed. However, we are not convinced that the vertical reciprocating conveyors are indeed real estate and have chosen to remove them from the assessment roll. <br />We reviewed the quality of the structure as outlined in Marshall Valuation Service. We determined that the quality could be reasonably classified between two levels: average and good. This is based directly on the descriptions outlined in the manual. We also made corrections to the HVAC system, as the entire structure is serviced by “package units”, not space heaters and ventilation as we previously listed. <br />We are confident that the assessed land value is fair and equitable at $1.75 per square foot. The raw land itself was acquired for $0.77 per square foot before any civil and site work was completed. <br />After adjustments to the property record, the revised assessed value for the parcel is $119,401,800 <br />Recommended Action: Adjust the true and full value to $119,401,800 for the 2022 tax year. <br />City of Fargo Info