2. Abatement hrg/Wayne Miller - Laserfiche WebLink

RECEIVED DEC 1 9 200 CASS GOUNTY GOMMI&SION INVESTIGATION OF ABATEMENT APPLICATION ABATEMENT NO. 4239 Following is a report on the investigation of the abatement application off Wayne and Virginia Miller Cass County Board of Commissioners and State Tax Commissioner: The applicant is asking that the valuation be reduced on his property located at 498 25th St S, Fargo. Mr. Miller is asking for a reduction from $86,000 to $55,000 for 2003. The applicant states that the value is too high for a "run down property" and a change of use from commercial to residential. He also states that the purchase price was $100,000 on 6/30/2003. Mr. Miller states that $20,000 of personal property was involved in the purchase price (see abatement). The City of Fargo recommended denial of the abatement (city assessor report attached). On November 20, 2003, I visited with Mr. Miller and inspected the property. The office building is located at the comer of 25th St and 5th Av S. The one story wood frame structure was built in 1955 as a residence and has a gross area of 845 square feet. In 1994, it was remodeled and converted to office use. On the date of inspection, the office was empty and was being updated. Mr. Miller indicated that the ceiling was recently redone, a new furnace was installed and new carpeting would be installed. The property is currently advertised for rent as commercial property. The Miller's recently purchased the property, along with the personal property and insurance business assets. The purchase agreement states that they paid $100,000 for the real estate and $25,000 for the personal property (see purchase agreement on file with commission secretary). Mr. Miller stated that the personal property had little value. Mr. Miller also stated that the valuation is excessive and that it's inequitable with neighboring residential property. I reviewed the assessor information and it appears that the property was reassessed in 2002 for the 2003 assessment using a cost approach to value. The assessor has also provided an income analysis in support of their value. I did review the assessments in the neighborhood. The layout of the block is somewhat unusual. The lots run straight through from 25th St, which is commercial in nature, to 24th St, which is residential in nature. The west portion of the lots are commercial in nature and the east portion are residential. The neighborhood is in transition with new commercial construction and remodeling along 25th Street. For 2004, all residential property north of 5th Av, south of Main Av, east of 25th St to 18th St were reassessed and equalized. It would appear that any residential property that was under assessed has now been reassessed.