3a. Tax Equalization Board reconvenes

2008 Cass County Board of Equalization Five Star Storage-3255 43rd St S Five Star Storage is asking that the valuation be reduced from $2,564,700 (land- $762,200; bldg $1,802,700) to approximately $1,680,000 on their rental storage facility located along 32nd Ave S, Fargo. They state that the income method does not support the valuation and that the actual construction costs are less than the City of Fargo estimates. They also indicate that the land value is high for numerous reasons. Ben Hushka, Fargo City Assessor, and I did meet with the owners and reviewed the information that was provided. We also visited the property. I also asked for additional information regarding the purchase of the property, along with the recent appraisal and asset cost ledger. None was provided. It would appear that the main area of disagreement is one of equity with competing property values and neighboring land values. The historical income data was not given great weight, as the facility added four additional buildings in the last 2-3 years. A proper income analysis considers the the expected income and expenses for the current year, and not prior years. The actual construction costs versus Fargo estimates are not significantly different if one adjusted for contractor profit, paving costs and historical cost adjustment. The City of Fargo did review the land valuation and determined that the valuation, equity wise, was somewhat high. The City Assessor is recommending that the land valuation be reduced $135,600 from $762,000 to $626,600, setting the total valuation ast $2,429,300. I concur with the revised assessment. Suggested Motion: "I move that the total true and full valuation of 3255 43rd St S be set at $2,429,300 as recommended by the City of Fargo and the Director of Equalization."