3a. Tax Equalization Board reconvenes

Hardly seems equalization and uniformity when Rocking H land is valued almost double compared to competing, neighboring storage properties. 2nd. Mr. Klein's narrative to the board states that "A proper income analysis considers the expected income and expenses for the current year and not prior years". We disagree. A proper income analysis IS an accurate analysis, which includes "actuals", NOT projections. A bank requested appraisal Is almost always based on projections and best case scenarios. A 'true' valuation is based on actual, which Is what was provided to Mr. Klein and the City of Fal'lo. Furthermore, if taken in the context of Mr. Klein's narrative - 2007 actuals were used in this appeal for the 2008 evaluation which was how this appeal began - over the 2007 tax valuation - it only changed to the 2008 valuation (which went up another 2% over 2007) after confusion over time frames of appeal when working with the City of Fal'lo. Either way, actual are always better for an income method of valuation. Based on the 2007 actuals - the value for said property could be al'lued to be less than $800,000.00 from the City of Fal'lo's property valuation I 3rd. Mr. Klein had requested actual construction cost for newly constructed buildings on said property from 2005-2007. The actual contractor costs were provided. Mr. Klein's narrative states - "the actual construction costs versus Fargo estimates are not significantly different if one adjusted for contractor Drofit. DavinQ: costs. and historical cost adiustment". We disagree. The actual construction costs ARE the costs. There were contractor profits assumed to be built Into each contractor's accepted bids. There was no General Contractor - we hired the Individual contractors - there should be no penalty for an owner to hire their own contractors. Paving costs (were told to Rocking H from the City of Fal'lo) were Included In Building l's valuation, which upon review were accurate. Historical cost adjustments - this was never discussed in any meeting and we have no idea what Mr. Klein is referring to. Based on these actual construction cost - the values for the newly constructed buildings should be lowered. 4th. Mr. Klein's narrative, page two, refers to Five Star office as "fairly large and better quality office space". Five Star office is valued at $84.07 per sq ft (2007). A competing, neighboring property has two larger office/retail buildings AND are income producing - they are valued at a little over $58/sq ft and an adjacent office/retail building is valued at little over $48/sq ft. We disagree. Hardly seems equalization when Five Star office is valued at more than $100,000.00 more than competing, neighboring properties. Upon their site inspection, we hope that their 'view' was not tainted by my wife's tasteful decorating - certainly it should not be part of the buildings valuation.