3a. Tax Equalization Board reconvenes

July 7,2008 SERVICES.INC * Property Management * Self Storage * Apartments * Consulting and Development Cass County Board of Tax Equalization Cass County Courthouse 211 9th Street S. Fargo, NO 58103 RE: Rocking H, LLC, dba Five Star Storage 2008 Real Estate Tax Appeal Board Members: Rocking H, LLC is asking the Board to consider the following information per its request for a lower valuation for the above stated property. Rocking H has had its valuation raised more than 47% in the last two years, primarily as a result of increased land values which account for over 36%! Discussions were conducted with the city of Fargo, which resulted in a meeting and subsequent site visit with Mr. Frank Klein. We proposed that Rocking H land was overvalued compared to competing, neighboring properties, the land's adjacent location to a large Xcel substation, and the city's requirement for a large holding pond that directly benefited 32nd Avenue South. In addition we content that the values for newly constructed storage buildings were high compared to actual building costs and an office building that was overvalued compared to a neighboring, competing property. Based on the meeting on June 23rd, the City of Fargo and Mr. Klein have proposed a minor reduction in our land value and a small adjustment for the unusable area for the water retention pond. This amount was calculated at a land value from $3.50/sq ft to $3.00/sq ft and a reduction of $26,450.00 for the pond area. Total reduction proposed - $135,600.00. Based on the following, we believe that their proposal has not gone far enough. 1st. Mr. Klein's narrative to the board states that the main area of disagreement is one of equity with competing property values...further it is stated that "the City of Fargo reviewed the land valuation and determined that the valuation, equity wise, as somewhat high" ...at $3.50/so ft. On page two of the narrative, it stated for "uniformity we recommend adjusting the subject land to $3.00 per square foot". a.) Competing, neighboring property land values are at: Security Storage South -$2.00/sq ft; a few blocks away, with 1-29 exposure. 40th Avenue Storage - $1.50/sq ft; 8 blocks away, with 40th Avenue exposure. Public Storage - $1.50/sq ft; less than 5 blocks away, with 1-29 exposure. Security Storage North - $1.75/sq ft; located on 25th Street, N of Main. b.) Vacant land adjacent on 43rd Street - $1.75/sq ft. c.) Vacant land on 43rd Street and 32nd Ave. South - $2.10/sq ft. e D~lU"1n 3255 43rd St. S * Fargo, NO 58104 Phone: 701-365-5000 * Fax: 701-232-8578 * TOO: 1-800-366-6888 * Ext.800-284-9733 * www.flvestarsernce.blz * II We are an Equal OppoRUlJlty Provider