Equal Eyes Fall 2018

Official Publication of the Minnesota Association of Assessing Officers / mnmaao.org

EQUAL EYES

Fall 2018

Volume 40 Number 154

Mike and Elaine Sheehy Learning to Love Life as Our New Normal

The Growing Use of Mobile Devices Global Assessment - Iowa

E DITORIAL

MAAO

L EADERSHIP

COMMITTEE

Lori Thingvold, SAMA Wright County Managing Editor

Jason Jorgensen, SAMA Wadena County Associate Editor Committee Chair

Jamie Freeman, SAMA Clearwater County

Nancy Gunderson SAMA Clay County

Executive Officers President

Patrick Todd, SAMA st 1 Vice President

Michelle Moen, SAMA 2nd Vice President

Teresaa Mitchell, SAMA Financial Officer

William Effertz, SAMA Past President

Kyle Holmes, SAMA

Regional Directors Region 1

Joy Kanne, SAMA Region 2

Mike Sheplee, SAMA Region 3

Jean Sowada-Popp, SAMA Region 4

Mike Dangers, SAMA Region 5

Jason McCaslin, SAMA Region 6

Lori Schwendemann, SAMA Region 7

Chris Odden, SAMA Region 8

Terrie Johnson, SAMA Region 9 Kent Smith, AMA Committee Chairs Agricultural

Doug Bruns, SAMA CAMA and GIS

Randy Lahr, SAMA Conference Coordinator

Paul Knutson, SAMA, RES Editorial

Jake Pidde, AMA Stearns County

Amber Hill, CMA Polk County

Information Systems

Legislative

Mark Peterson, SAMA

Membership Coordinator

Rebecca Malmquist, SAMA, RES

Rules and Resolutions Sales Ratio Secretary Silent Auction Site Selection Strategic Planning Laura Odgren, CMA Martin County

Questions, comments or suggestions?

Please email editor@mnmaao.org

Matt Gersemehl, SAMA

Nominating and Procedures Residential

Mike Bjork, AMA Washington County

Jason Jorgensen, SAMA

Michelle Snobl, AMA

Daryl Moeller, SAMA Marvin Anderson, SAMA Dell Sanko, CMA Penny Vikre, SAMA Jane Grossinger, SAMA Lisa Clarke, CMA Nancy Wojcik, SAMA

Summer Seminar Coordinator

Kim Jensen, SAMA, CAE

Ann Miller, SAMA Treasurer

Reed Heidelberger, SAMA

Educational Workgroups Tax Court / Valuations

Assessor Development Course Management

Amy Rausch & Patrick Chapman, SAMA

Course Curriculum & Standards

Tina Diedrich-Von Eschen, SAMA Sherri Kitchenmaster/Jessi Glancey, SAMA

Education Coordinator/Online Admin.

Missy Manke Wright County

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Scholarship

Jackie Coulter Kelly Schroeder, SAMA

The Growing Use of Mobile Devices

In This Issue

10

Learning to Love Life as Our New Normal

IN EVERY ISSUE Commissioner’s Comments

6

President’s Perspective

8

MAAP Update

9

Top 10

12

Assessor Soft Skills

26

Classifieds

27

Global Assessment

28

Tax Court

30

What You Get For

36

Out of the Past

37

State Board Minutes

38

16

Frank Lloyd Wright’s RW Lindholm Service Station

22

* The statements made or opinions expressed by authors in Equal Eyes do not necessarily represent a policy position of the Minnesota Association of Assessing Officers.

Fall 2018 | Equal Eyes

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From the Editor: Well the season for jackets, bonfires, and hot coco is settling in upon us again. This time of year is great for a stroll under a golden canopy of leaves deep within the woods, the air is usually crisp and fresh and holds the anticipation of what is to come.

This issue of Equal Eyes highlights the fall conference memories.

The winter issue will highlight the IAAO Conference with pictures taken by the attendees. Please continue to send your photos to editor@mnmaao.org. Thank you to those who have already contributed their pictures.

Jason Jason Jorgensen Equal Eyes Associate Editor

WHERE AM I? answer on back cover

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Equal Eyes Photo Contest

Your Harvest We would like to see photos that include the assessor!

What’s your harvest? farming, fishing, hunting, gardens, flowers, art projects, etc.

1st prize: $100 2nd prize: $50 3rd prize: $50 Email high resolution entries to editor@mnmaao.org Deadline: December 1 Winners will be announced in the winter issue

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Commissioner’s Comments

By Cynthia Bauerly MN Revenue Commissioner

A season, year, and time of change Greetings! It was a pleasure to see many of you last month at the MAAO Fall Conference. I hope you enjoyed the conference and found the training sessions helpful.

These gatherings offer a chance to meet with each other in a less formal setting to build on the MAAO-Department of Revenue relationship. I know our Property Tax Division also values the chance to meet face-to-face to discuss our mutual interests and share the latest department updates.

Better together As I mentioned at the conference, the department relies on our partnerships with local governments and the assessor community to administer property taxes and others that Minnesotans pay each year.

At Revenue, our mission is “Working together to fund Minnesota’s future.” I have always thought that “together” is the most important part of that mission, because so much of our work depends on partnerships like the one we have with you.

Assessors are a crucial link between property owners and the department. Your commitment to consistent, high-quality assessments protects the fairness of our property tax system. You play a unique role that provides a funding basis for local governments – cities, counties, school and other taxing districts – serving your communities and the state as a whole.

Your work as property tax administrators helps fund many of the things that make Minnesota such a great place to live, work, and play – including schools, parks, libraries, police and fire, and other important services Minnesotans rely on.

Working with assessors and other property tax officials is a crucial part of our job at Revenue. We appreciate your efforts on behalf of Minnesotans and, in turn, we work hard to provide the information and resources you need to do your job.

The department made several improvements this year, each built on our collective discussions and efforts to improve property tax administration in Minnesota. Among other things, we: •

Launched a beta test of our interactive property tax data reporting tool that lets you create custom reports, based on information stored in PRISM (Property Tax Information System of Minnesota).

•

Updated the administrative appeal process for state-assessed property to allow more valuation appeals to be settled outside of Tax Court. The new process incorporates 2017 law changes that allow us to negotiate binding agreements with railroad and utility companies.

•

Started a project to enhance the eCRV system to improve security and add functionality that you have prioritized through the eCRV user group.

I hope you find these changes helpful in your work. As always, we encourage you to share your feedback, concerns, and ideas to improve the administration of property taxes in Minnesota.

Embracing change Among the issues we share with MAAO and counties is how to recruit new assessors to the profession as baby boomers continue to

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Commissioner’s Comments continued

retire. Andrea Fish, our assistant director of property tax, addressed this issue at the MAAO conference in her presentation, 21st Century Workforce Development.

Part of the answer to this challenge is to harness the skills of people trying to enter (or re-enter) the workforce, or from previously underrepresented groups.

This kind of inclusion allows more individuals and families to build economic security, feeds our state economy, and helps ensure that our local and state governments reflect the increasingly diverse Minnesotans we serve. To do that, we need to consider what barriers may keep people from working for us and how to address those barriers.

A 2016 report from the Office on the Economic Status of Women identified several barriers that can prevent women from being fully engaged and successful in their careers. Among them: lower wages, lack of access to child care, housing concerns, and student debt.

These same concepts and barriers can affect both men and women, often disproportionately for workers in Greater Minnesota or those from immigrant or other under-represented communities.

As Andrea noted in her presentation, we have room to attract new talent into the property tax profession. As public employers, we are in a strong position to do so. Most public-sector employers pay a living wage and offer competitive health care benefits, meeting the basic needs of their employees.

Still, many workers and families grapple with a shortage of affordable high-quality child care – especially outside the Twin Cities area – or face high student loan debts that can impinge their ability to afford quality housing and transportation.

As employers, we generally do not have direct control over these potential barriers. But we can help our people find ways around them in other ways, such as providing: • Flexible work schedules– to help workers balance child care needs or personal or family issues.

•

Work from home opportunities – to help families who face transportation or child care challenges.

• Part-time schedules, with prorated benefits – to help cover health-care costs for workers who are trying to get on the career ladder or cannot work full-time (at least for now).

•

Tuition reimbursement or part-time internships – to help workers cover the costs of higher education or pay down their loans.

For property tax jobs, we can attend career fairs and advertise employment at colleges in our areas that offer real estate-related degrees.

And we can help these new workers understand and participate in student loan forgiveness programs for public employees.

Looking ahead This year’s election will bring transitions in elected offices that affect us all. When the 2019 legislative session begins on January 8, we will have a new governor and changes in the state House, Senate, and possibly in the makeup of your county commissioner boards.

One that will not change, however, is our commitment to work closely with you on important issues that affect property tax administration in our state.

Further strengthening that relationship has been an important goal – and a key highlight – of my time as commissioner so far. Thank you for your partnership and for the work you do each day for Minnesotans.

Cynthia Bauerly is commissioner of the Minnesota Department of Revenue.

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president’s perspective

By Patrick Todd City of Minneapolis Assessor MAAO President I am writing to you as I approach the end of my term as president of MAAO – a position that I have been honored to hold and serve for a year. I want to thank everyone who has contributed their time and talents this year to make MAAO the preeminent leader in assessment administration and education in Minnesota. MAAO is only as strong as its officers, directors, committees, staff and volunteers and we are incredibly fortunate to have so many great friends and colleagues who have dedicated countless hours to make MAAO successful.

the goal the U40/10 will have their own budget to attract, grow and engage U40/10 members in to future leaders of MAAO.

To me, Succession Planning is like exercise, the benefits are obvious but the excuses are many. As a volunteer-based organization, we rely solely on our members to make MAAO successful. This year we welcomed 11 new committee chairs or committee members that have been very engaged and involved. This year it was exciting to see committees develop 11 new courses with new programs and seminars being developed for 2019.

I remember how excited I was when I Succession planning is an ongoing became president back in September and never-ending initiative that must 2017, I had three priorities: 1) Con- be integrated into the broad range tinue to support the U40/10 Group, of MAAO’s 3-C’s (Committees, 2) Succession Planning, 3) IAAO Courses and Conferences). One conference of the best ways to support MAAO and to soar personally and professionally is to get engaged and I’m happy to say the U40/10 group is work on a committee. Committees bigger and better than ever. We have are a great way to network, meet three U40 members (Troy, Alysia people and be involved in an issue and Ali ) that are energized and that interests you. You’ll be glad eager to keep the momentum going. you did.

We had a successful get-together during the Summer Seminars in St. The IAAO conference is only a Cloud that gathered 30-40 people few weeks away and the MAAO to network, build relationships and Local Host Committee (LHC) is have some fun. I’m happy to say fully engaged and pulling it all incoming President Michelle Moen together. The LHC’s “To-Do” list is developing her 2019 budget with is growing by the day and at times it 8

Equal Eyes | Fall 2018

feels like we are all drinking from a fire hose. A big thank you to all the volunteers (80+ strong!). The IAAO conference would not be possible without the help of every dedicated MAAO member and volunteer! If you haven’t registered for the IAAO conference, there is still time! You don’t want to miss out on this opportunity. If the 4-day conference is too much, pay for 1-day or 2-days of education, exhibit hall and entertainment. There is something for everyone.

In closing, I want to say thanks to all those that made my term as president fun, exciting and memorable. I’m deeply indebted to the MAAO Officers, Directors, Committee Chairs and Committees for their unwavering support and encouragement. Working with you was truly a pleasure and I appreciate all the good times we shared together.

Finally, my presidency would not have been possible if it weren’t for the exceptional staff in the Minneapolis Assessor’s office. I count myself lucky to work in an office with such caring and dedicated people that allowed me the freedom and flexibility to grow and enjoy my year as MAAO’s president.

Sincerely, Patrick

2018 MAAP Summer Workshop Written by Melonie Flaws Crow Wing County MAAP Past President 2018-2019

The annual MAAP Summer Workshop was held August 16-17, 2018 at the Holiday Inn Downtown in Duluth, MN. There were 71 members in attendance.

Topics covered this year:  Classification Station – an in-depth review of the 5 basic property classification groups, presented

by Jessi Glancey from DOR  Travel Trailers/Mobile Homes – review of classifications and homesteads, unique situations and review of 2017 legislation update, presented by Jessi Glancey from DOR  Local and County Board of Appeals and Equalization, presented by Jessi Glancey from DOR  Managing Conflict – In-depth training and real life examples for managing conflict and improving communication skills, presented by Jessi Glancey, Emily Anderson and Andrea Fish from DOR. New officers were elected during the luncheon business meeting. Amanda Lee will be serving as Vice President for 2018-2019, Doris Huber and Lacy Standke will be serving as Education Board Members at Large for 2018-2020 and Debbie Maresch will be serving as Executive Board Member at Large for 20192020.

Thank you to MAAO for providing scholarships once again for our members to use towards the 2019 Summer Workshop. The scholarships were drawn randomly and were awarded to Susie Sohlman, Kim Kylander, Joanne Corrow, Lisa Hawkins, Michelle Nelson and Virginia Wenisch.

Thank you again to MAAO for your continued support!

If anyone is interested in becoming a MAAP member, the annual membership fee is $10.00. Contact any MAAP Officer for details.

MAAP Officers Samantha Erpelding President 2018-2019 Stearns County 320-656-3693 Samantha.erpelding@co.stearns.mn.us

Amanda Lee Vice President 2018-2019 Mower County 507-437-9440 amandalee@co.mower.mn.us

Melonie Flaws Past President 2018-2019 Crow Wing County 218-824-1302 melonie.flaws@crowwing.us Debbie Maresch Executive Board Member at Large 2019-2020 Carver County 952-361-1963 dmaresch@co.carver.mn.us

Jessica Arneson Secretary/Treasurer 2017-2019 Washington County 651-430-6097 jessica.arneson@co.washington.mn.us

Samantha Kral Conference Coordinator 2017-2019 Sibley County 507-237-4077 samk@co.sibley.mn.us

Lacy Standke Education Board Member at Large 2018-2020 Steele County 507-444-7438 lacy.standke@co.steele.mn.us

Doris Huber Education Board Member at Large 2018-2020 City of Marshall 507-537-6771 doris.huber@ci.marshall.mn.us

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The Growing Use of Mobile Devices

In the last few years, the MAAO GIS Committee has been keeping up with what counties and jurisdictions are using for both CAMA systems and mobile devices, and the pace of change has been interesting to observe.

We started out with a simple spreadsheet to keep track of a few cities and counties, but in 2015, we decided to do a more comprehensive survey to get an understanding of what every jurisdiction in the state was using. The response was impressive: 88 cities or counties responded, and most indicated that they were very interested in the results of the survey.

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While we did not get responses from everyone, this gave us a great set of data to start from and to update as things changed.

In the spring of 2017, we decided it was time to update this data. Two years may not seem like a long time, but in terms of technology, the difference can be significant. While we expected change, even we were surprised at the results. In 2015, roughly half of the respondents were either testing or using mobile devices in the field.

By 2017, this had increased to 62% over a 10% increase in just two years.

This is even more impressive when

By Markus Yager, SAMA City of Maple Grove GIS Committee Member

considering the relatively slow pace many cities and counties are to adopt new technology.

In presenting and discussing these results with various jurisdictions, the sheer amount of cities and counties using mobile devices surprised many users. Many guessed that the percentage of offices using and testing mobile devices would be much lower than 10%. The biggest reason for not implementing a mobile device was an incompatible CAMA system. Many jurisdictions are focusing on CAMA software upgrades before they are going to look at a mobile device

solution. Without support from a CAMA vendor, the ability to use mobile devices is limited.

How Jurisdictions Use Mobile Devices One thing that stood out from the survey data was the wide variety of ways that jurisdictions are using mobile devices. Around 60% of those respondents that are using mobile devices said that their system tied directly into their CAMA data, eliminating the need to enter the data in the office. This is one of the major benefits of a mobile device – you do not have to touch the data more than once. With that said, 40% of those using mobile devices did not have any CAMA integration, meaning they would still have to enter the data collected in the field when they get back into the office. In most cases, this means creating a digital field card (usually in PDF format) and marking/taking notes on the device, then coming back to the office and using that field card to manually enter the data into the CAMA system. This is extremely interesting, as it suggests many jurisdictions see a benefit of “going paperless” even if it does not directly update the CAMA system. It is important to note that, even though 40% are using mobile devices this way, most did report that their goal is eventually to have a system that does update CAMA from the field.

The Devices Jurisdictions are Using While there are numerous different devices in use across the state, a few rose to the top. On the Windows side of things, Microsoft’s Surface Pro line of products were the most popular. A Surface Pro is a 12-inch tablet with a built-in kickstand and an optional keyboard and pen. The benefits to a Surface Pro revolve around the reality that it is a Windows machine. This means that a Surface Pro can be used as a primary computer.

Many of the jurisdictions surveyed pair their Surface Pros with a dock back in the office to use as a desktop machine, eliminating the need for both a computer and a tablet.

better, and the difference compared to the state of devices just a few years ago is dramatic.

Wrap Up The world of mobile devices is Although there are benefits to Surface constantly changing. Both the Pro being a multipurpose machine, Microsoft Surface line and Apple there are also drawbacks to this iPad line will likely get updates approach. Because it is a computer, this month, and other Windows many apps are not optimized for devices are continually released from touch input, making it more difficult numerous manufacturers. Software, to use as a tablet. Some CAMA too, continues to change, and with vendors have a special “tablet mode” the next survey update we plan on for easier use with the touchscreen, doing in early 2019 it is likely that the but most traditional applications that numbers will shift again. For those people use are designed primarily for jurisdictions that have not examined keyboard and mouse input. Another their mobile device plans in a few downside compared to other options years, it may be time to take another is the weight. While 1.69 lbs. might look. A lot has improved in both the not sound very heavy on paper, every hardware and software, and there ounce matters when you are using a now may be a solution that was not device all day in the field. possible just a few years ago. While this pace of change may make some The second most popular type of uncomfortable, it is also exciting to device is the Apple iPad, and there is see new tools emerge than can enable a range of products in use by various us in the assessment profession to cities and counties. On the lower end, work more efficiently. In the end, the 9.7 inch iPad starts at $329, which that is the goal and promise of these is an affordable way some jurisdictions tools, and that reality might be closer are testing the idea of mobile devices. than you think.

The iPad Pro line has a brighter, less reflective screen and comes in two EE sizes (10.5 & 12.9 inch) but also starts at $649. iPads are thin, light (starting at just 1.03 lbs.), and their mobileoptimized software makes them great tablets. For those cities and counties going the PDF field card route, iPads are by far the most popular choice.

Perhaps the biggest downside to iPads is their lack of compatibility with CAMA systems. Although many IT departments now support iPads due to demand from their users, some still are resistant. In the end, the right tablet is different for every jurisdiction. The key factors are support from your CAMA vendor and from your IT staff.

With that said, the prices, flexibility, and quality of devices has never been

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The Top

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By Jamie Freeman, SAMA Clearwater County Editorial Committee Member

Popular House Styles in Minnesota Craftsman:

The American Craftsman style was developed out of the British Arts and Crafts movement, which began as early as the 1860’s. This movement originally started as a reaction to the Industrial Revolution when most things were becoming heavily pass-produced as opposed to hand-made artisanship.

Today’s Craftsman style houses are often bungalows and they typically feature exteriors that showcase a combination of hand-crafted stone or brick and woodwork. Interiors include such elements as built-in cabinetry, bookshelves, and large custom fireplaces.

Split-Level Home:

This style also includes splitentry and split-foyer. A split-level home is a house in which the floor levels are staggered. These homes can have two or three short sets of stairs, and three or four levels. There’s usually two sets of stairs, one running up to a bedroom level and one going down to a basement area.

Does anyone know what style of house was the setting for “The Brady Bunch”? You guessed it, a split-level home.

Log Homes:

A log house is a home built with horizontal logs interlocked at the corner by notching. Logs can be round, squared or hewn to other shapes, either handcrafted or milled. Once considered a small, more rustic house, or even a hunting cabin in the woods, log homes have become a standard of quality and workmanship in the Northwood’s of Minnesota.

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Top 10: Popular House Styles in Minnesota, continued

Country Style:

The Country style refers to an aesthetic that represents rural farmhouse-like design. Some consider this an update of the popular “Colonial Style�. These homes typically feature two windows on either side of the front door. They have wide porches, shutters, dormers, and wood detailing.

Traditional Style: A Traditional style house is very similar to the Country style. Traditional houses differ from Country houses in that they pay more attention to historically accurate details than trying to create simple charm. Traditional style integrates design elements from a variety of centuries, which allows homeowners to feel at ease in their own spaces. There is a feeling of comfort when warm, rich colors are combined with classic designs and casual dĂŠcor.

European:

European style homes share a house style found in France, Italy and sometimes England.

There is an emphasis on materials that look old but durable, such as plaster walls, marble, stonework, and massive fireplaces. The exterior of these homes incorporate multi-peaked rooflines, stucco, stone or brick, and even copper roof elements.

Ranch: Ranch homes are a regional style from the West and Southwest but are now found throughout the country.

The ranch style house is known for its long asymmetrical design, single story profile, and wide open layout. They are built low to the ground and follow the contour of the land.

Original ranch style homes were very informal and basic in design, while the newer ranch styles have integrated more design elements such as varying roof lines, cathedral ceilings, sunken living rooms, and extensive landscaping.

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Top 10: Popular House Styles in Minnesota, continued

Cottage: Cottage style homes are normally small houses. Their designs have the effect of being an old or oldfashioned building. It’s usually a modest, cozy dwelling found in a rural or semi-rural location. The Cottage style is similar to the Craftsman except that the details are simpler, less expensive, and the woodwork is usually painted.

Modern:

Crisp, clean lines, simple and unadorned, Modern homes reference a style popular in the 1950’s and 60’s. Modern houses use flat or lower slope roofs, horizontal windows and large, undecorated fireplaces. The details found in most Modern homes are a flat, low-pitched gable or shed roof, exposed structure with lots of windows, and high quality materials.

Tudor:

Originating in England, the Tudor style is one of the most easily recognizable home styles. It’s best known for steep pitched, multi-gabled roofs and decorative half-timber framing. Tudors were mostly built in established neighborhoods during the first half of the 20 th century. The steep-pitched roofs are perfect for snowy climates such as Minnesota.

EE EE

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Assessor Crossword (anwers in the back of this issue)

Name:

Appraiser Crossword Complete the crossword below 1

2 3 4

5 6

7

8

9

10

11

12

Created with TheTeac hers Co rner.net Cro s s wo rd Puz z le Generato r

Across 3. A listing o f data in o rder o f magnitude.

6 . Unifo rm Standards o f Pro fessio nal Appraisal Practice.

7 . Po o r lo catio n is an example o f this type o f o bso lescence.

8. The rate o f return o r premium paid fo r the use o f mo ney.

10 . Po ssessing the quality o f being alike and therefo re co mparable; said o f data that are co nsistent, having lo w dispersio n.

12. 43,56 0 sq. ft.

Down 1. The right to use space abo ve real estate.

2. Legal instrument(s) co nstituting pro o f o f pro perty o wnership.

4 . Our new MAAO President 5 . The maximum value o f a sample minus the minimum value.

9 . A pro cess in which a pro perty o wner co ntests an assessment either info rmally o r fo rmally.

11. The amo unt o f go o ds o r services that wo uld be o ffered during a given perio d.

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Learning to Love Life as Our New Normal The Adventure of Mike and Elaine Sheehy

By Jim Borrett, Wright County and Elaine Sheehy

Sometimes life can throw you a curve that is truly a game changer. It can happen to anyone and it happened to Mike Sheehy and his wife Elaine. Mike was the County Assessor in Pine County in 2011 when he suffered a Pulmonary Embolism and Traumatic Brain Injury…but we’ll come back to that.

Mike and Elaine are from Waterville, MN. They met in high school in 1974.

The couple got married on March 18, 1978. Mike was a wrestling coach for high school students and served with the local Lions chapter.

Most of the time Mike worked on the family farm with his father. Mike was approached by a neighbor about becoming a local assessor for extra income.

Due to high agricultural land prices and low commodity prices, farms were going under in the late 1970’s, so Mike accepted a job as a property assessor in Le Sueur County. Mike worked his way up “the ladder” and became the Le Sueur County Assessor, while still farming at night and on the weekends. During this time, Elaine and Mike were raising their three children, Bennett, Brandon and Brittany. Mike left Le Sueur County for a position in Blue Earth County in 1998. In 2003 Mike accepted the County Assessor position in Pine County.

Since two of the kids were in high school, Mike decided to buy a 2nd home in Pine City and commuted between the two homes for three years. In 2006, with all the kids out of the house, Mike and Elaine decided to sell the farmhouse which had belonged to Mike’s grandparents and make Pine City their permanent residence. They knew the farmhouse would be a tough sell in Le Sueur

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of the time bomb lurking that would change his life. In May of 2011 Mike had shortness of breath.

A Nurse Practitioner ran some tests including a stress test and everything came back normal. The couple headed back to the cabin, but on the way home Mike said he was going to go to work late the next morning. This was very unusual and as Elaine would later say, should have been a “red flag”.

Mike was never late to work.

County, but Mother Nature stepped in to help by dropping a category F3 tornado on the community. The farmhouse was condemned.

Mike and Elaine made the final move to Pine City and started over like “newlyweds” as Elaine would later say. The couple bought a cabin in the Bovey, MN area and on closing Mike looked at Elaine and said, “Guess who’s going back to work”! Elaine took a year off to remodel their home in Pine City, then found work as a Home Health Aide. By now, Mike as the Pine County Assessor was putting in long hours at his desk. Mike and Elaine would leave Friday afternoons for the cabin, but every Monday morning Mike was back at his desk for another week. In the evenings Mike would read the Star Tribune from front to back and turned down Elaine’s request to join her for evening walks saying he got enough exercise on the weekends working on the cabin. Little did Mike know

On the morning of June 6, 2011, Mike took the family dog out. Mike had earlier complained of some leg pain but went out anyway. Elaine came out of the house just in time to see Mike pass out and hit his head on the concrete driveway.

Mike began to have seizers from a brain hemorrhage. When the EMT’s arrived, they found they could not stabilize Mike.

In addition to the brain hemorrhage, Mike’s heart was in Atrial Fibrillation.

The medical personnel decided the best course of action was to get Mike to North Memorial Hospital as fast a possible.

A helicopter was brought in and met the ambulance in the parking lot of the Pine City Wal-Mart. By the time Elaine arrived at North Memorial, the emergency surgery was complete. The surgeon met Elaine and her son Brandon and said, “I’m sorry, but your husband will most

likely not survive this”. Mike had suffered a Saddle Pulmonary Embolism (blood clot) with a traumatic brain injury from hitting his head on the concrete. The blood clot alone was enough to kill Mike. Over the next three days, Elaine and the kids sat at Mikes’ bedside as doctors shook theirs heads in disbelief, wondering how Mike could possibly survive this. There would be three more surgeries to insert a tracheotomy, a feeding tube and a filter to capture blood clots and the removal of a portion of the skull cap to relieve pressure on the brain.

Blood thinners could not be used because of bleeding on the brain…Mike would have bled out. Mike spent the next two and a-half weeks in the Intensive Care Unit at North memorial. Doctors informed the family that if Mike did survive, he may not come of the coma and even if he did, he would probably never be able to walk or talk.

Doctors would later explain to Elaine that the blood clot was likely due to Deep Vein Thrombosis which causes a blood clot to develop in the leg. It is usually associated with prolonged sitting which Mike did on the job and in the evenings. Most doctors now agree that “sitting is the new smoking”.

The leg pain Mike felt was the blood clot.

It traveled to his lungs where it cut off his oxygen causing him to pass out. As a result, Elaine is adamant about telling people to get up and move around. Mike spent the next month on a respirator and in a semi-coma.

The doctors felt they had done all they could, and recommended Mike be moved to a nursing home for prolonged care.

Elaine, with sixteen years experience as a Pharmacy Technician and three years as a Home Health Aide decided to bring Mike home and take care of him herself.

Elaine would later say how frightening it was for her in case she did something wrong or dropped Mike from the Hoyer lift required to move him from the bed to a wheel chair. But, Elaine took on these challenges and so many more as a nurse, doctor, caregiver, cook, lawyer, housekeep and so on. Elaine said the paperwork alone was enough to drive a person insane! That’s when Elaine learned to “never look back… look forward, but not past today”. Mike developed an infection which resulted in another hospital stay and then to a nursing home. Elaine pushed for Mike to be placed in a facility that would work with her husband. Mike was moved to North Branch where they had a fulltime speech therapist.

After eight months, Mike’s feeding tube was removed, and he was speaking short sentences. Friends put together a benefit for Mike and Elaine that enabled the family to buy a handicapped van. By December of 2011 it was time for Mike to officially retire from Pine County. With a lifetime of family and friends in the Waterville area, Elaine and the family decided to move back to southern Minnesota. They once again reside in Waterville. Mike continued to defy the odds and began receiving speech therapy at Minnesota State University. The University has grad students that work with Mike. With much help and support, Mike defied the odds again and began to walk. Mike was able to get rid of the feeding tube and after two years, he began to speak regularly. This from a man that “was not supposed to make it”. Mike can’t remember the first five or six years of this ordeal.

Mike and Elaine surprised everyone at the Region 3 “Old Timers Picnic” this year.

The picnic is held in July at Warner Park in Stearns County. It was great to see Mike and Elaine.

Elaine said “I think as Mike becomes to understand all that happened to him, he grieves missed opportunities. He wishes he could still be working everyday. He loved his job…crazy I know”. Mike still needs constant monitoring and suffered a broken hip in 2017. Since the spring of 2018, Mike is comprehending, speaking and remembering and realizing that he has aged seven years since this ordeal began.

Elaine, wrote and said, “We are moving into our seventh year of his accident. I would not trade this adventure for anything. Mike is my fulltime job and it is very rewarding now. Yes, it was very, very difficult and times and I wanted to pack up and leave for a permanent vacation. But, I did my best… and God did the rest. So, here we are, seven plus years after we were told Mike would not survive. Mike never gave up. I never gave up. We are still together. Still enjoying our time together. Learning to love life as our new normal”.

Mike and Elaine recently celebrated their 40th wedding anniversary.

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Fall Conference September 11-13, 2018 St. Cloud Holiday Inn

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fall conference September 11-13, 2018 St. Cloud Holiday Inn

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Back to the Future

The R.W. Lindholm Service Station Designed by Frank Lloyd Wright

The mother art is architecture. Without an architecture of our own we have no soul of our own civilization. - Frank Lloyd Wright 22

Equal Eyes | Fall 2018

When you think of family

vacations when you’re a kid, you think of things like going to a waterpark, amusement park, going camping, or maybe even going to the zoo. My family vacations involved history lessons.

Visiting the R.W. Lindholm Service Station, designed by Frank Lloyd Wright, located in Cloquet, MN was just one of those family vacation destinations.

By Missy Manke, Wright County Editorial Committee Member Fall 2018 | Equal Eyes

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The RW Lindholm Service Station

Frank Lloyd Wright in the 1930’s had designed the Broadacre City project. The Broadacre City design was his utopian vision of what a model American community should be. Having placed high importance in automobiles, Wright saw it as a way to escape crowded city environments. And where cars went, gas stations could not be too far away. The service station, in Wright’s words, would be “the future city in embryo,” which would “naturally grow into a neighborhood distribution center, meeting-place, restaurant… or whatever else is needed.”

blocks being slightly recessed from the ground level upwards. The second level is a glass observation lounge, designed for community interaction. Cypress wood, a favorite material of Wright’s, is use throughout the interior, from the shelving for auto accessories located in the garage and diamond shaped sales office, to the decorative cut elements in the restrooms.

Wright had originally designed the station to have an overhead gas supply, but traditional gas pumps were installed to comply with fire codes. The services bays have skylights in them to facilitate the work of mechanics.

Wright had approached Ray Lindholm, the president of Lindholm Oil, Inc., with the idea of building a gas station. Lindholm being a former client, having contracted Wright to design their new home, was receptive of the idea. The construction of the building began in April 1958, with it opening for business October of 1958. The station cost $20,000, which is roughly four times the cost of the average filling station at the time.

The Lindholm Station features a cantilevered copper canopy that extends approximately 32 feet. The front of the building, the outer cement blocks were stacked to create a step-effect. With each group of

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A slender towering pylon reaches from the polygonal roof to a height of sixty feet. The upper part used to hold the PHILLIPS name and 66 on the middle and Lindholm on the bottom portion, which was removed when

Phillips 66 decided to pull its brand out of Minnesota altogether. It now reads with Wright’s name and initials.

The Lindholm Service Station was added to the national Register for Historic Places in 1984 and has been operating as a gas station since it opened. The Service station turned out to be the only part of Wright’s visionary Broadacre City project to make it into the landscape of reality.

The RW Lindholm Service Station, continued

Notes from the Carlton County Assessor This property recently sold from Best Oil Company to Broadacre, LLC in March of 2018. After seller concessions, personal property and inventory were accounted for, the Net Sale Price was:

$250,000 Carlton County currently has a land value of $92,100 and $148,000 on the buildings for a total EMV of: $240,000 for the 2018 assessment.

The property is valued as commercial convenience store in fair condition; it is 2921 sq. ft with an 855 sq. ft irregular shaped canopy. It sits on a .37-acre lot at the corner of Highway 33 and Cloquet Ave in Cloquet.

Frank Lloyd Wright was an American architect, interior designer, writer, and educator, who designed more than 1,000 structures, 532 of which were completed. Wright believed in designing structures that were in harmony with humanity and its environment, a philosophy he called organic architecture.

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Assessor soft skills

Building Trust In the Workplace

By Laura Odgren, CMA Martin County, Editorial Committee Member

Here are some ways we can earn and maintain trust both within our offices and with the public:

T

Be transparent and truthful Oftentimes when there is a void of information, we tend to fill that void with negative and often incorrect information.

Taking the opportunity to share information within our office or with the public allows us to be proactive in filling the void with factual and potentially positive information. This helps to build trust. Even if the information we have to share is bad news, having the integrity to tell the truth is part of building a culture of trust.

The word trustworthy is defined by Merriam-Webster as worthy of confidence or dependable. We all want to be considered trustworthy and desire to find those attributes in our co-workers as well. This soft skill is especially important for those of us in the assessing field, as a very important part of our job is maintaining public confidence in our profession.

Another way to demonstrate transparency and truthfulness is to regularly communicate.

Within the office this may mean scheduled updates on work performance or regular staff meetings so that everyone can receive important information. No one likes to be surprised with important or serious information if it can be avoided. The public doesn’t like these surprises either.

For example, if a taxpayer has a large change coming on their valuation notice, it would help to communicate this with them beforehand by sending out a letter regarding the change.

rust is the framework for all of the relationships in our lives. Whether that trust is with our car mechanic, doctor or best friend, we act and react based on that foundation of trust, or in some cases mistrust.

The same is true for our relationships in the office.

The benefits of trust within our office and with the public are much more expansive than just getting along. When employees trust each other and those managing them, it encourages better communication, engagement among employees, and higher productivity within the office. And when public trust is maintained, it also allows for more effective communication between our office and the public, as well as, improves the accuracy of our assessments.

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Equal Eyes | Fall 2018

Admitting mistakes and being honest about what you don’t know is also an important part of transparency. Although taking the blame and admitting you don’t have all of the answers are not easy to do, this does not mean you are unreliable. To the contrary, it often builds trust when people see you taking steps toward transparency.

Care about people Operating with the sincere intention to care

about people is an important part of building trust. One of the primary ways we can do this is by listening to people when they talk.

It is easy to fall into listening solely for the purpose of responding. To build trust within relationships it is often more important to withhold judgement and conclusions and seek to understand the other person’s point of view.

Respecting others is another very simple yet important way to build and maintain trust.

We can daily exercise this by seeking the fair treatment of all of our taxpayers and striving to be impartial, independent and objective as we approach every assessment.

If you have a chance this week, take a few minutes to see how you are demonstrating transparency and how you are caring for others in the field and in the office. These few minutes might go far in building a foundation of trust that will likely make you more effective in your work and could even make your life easier.

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Classifieds

c

By Amber Hill, CMA Polk County Editorial Committee Member

18025 NW 18025 Zane Zane St. St NW Elk MN 55330 55330 Elk River, River, MN $1,416,667 $1,416,667

Currently leased 8,500 square foot, built in 2008, building for sale. Structure located on just over half an acre. Dollar Tree occupies the space with five years remaining on a ten year corporately guaranteed lease. Tenant is currently paying $12.50 per square foot under triplenet lease. There are two, five-year options remaining with $.50/SF rental escalation Find more information at loopnet.com option in each five-year period. Located in well populated commercial area.

2018 Assessment $258,700 Land Value: $124,100.00 Building Value: $350,500.00 Total Taxes for 2018: $20,750 $15,620.00

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Global Assessment

By Mike Bjork, Washington County Editorial Committee Member

IOWA Our Neighbor to the south, Iowa, a Midwestern U.S. state, sits between the Missouri and Mississippi rivers. It’s known for its landscape of rolling plains and cornfields. Landmarks in the capital, Des Moines, include the gold-domed, 19th-century State Capitol Building, Pappajohn Sculpture Park and the Des Moines Art Center, noted for its contemporary collections. The city of Cedar Rapids' Museum of Art has paintings by native Iowan Grant Wood.

Population: 3.146Â million (2017)

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G L O B A L A S S E S S M E N T: I O WA

Iowa Property Tax Overview In Iowa, an assessor’s primary duty is to value and classify all real property, which includes residential, multifamily, commercial, industrial, and agricultural property. Real property is defined as most land, buildings, structures, and other improvements that are constructed on or in the land, attached to the land, or placed upon a foundation.

Assessors do not collect taxes, calculate taxes, or determine the tax rate.

by production, prices, expenses, and various local conditions are taken into account.

Every Two Years All real property is assess every two years, in the odd-numbered years. State assessed properties, including railroads and public utilities, are assessed every year by the Iowa

Residential, M u l t i f a m i l y, Commercial/ Industrial Residential, multifamily, commercial, and industrial real estate is assessed at 100% of market value, with a few exceptions. In order to determine the fair market value of a property the assessor will consider the three approaches to value (Market Approach, Cost Approach, and Income Approach).

Department of Revenue.

Agricultural

Valuation (taxable value of real property) X Tax rate (amount of tax per $1,000 value = Levy (property tax dollars generated)

Agricultural real estate is assessed at 100% of productivity and net earning capacity value. The assessor considers the productivity and net earning capacity of the property. Agricultural income as reflected

The Tax Equation Property valuation is an important component in the property tax equation:

The taxable value of a property is the value of that is subject to tax after exemptions and rollback.

Rollback In response to rapidly rising residential value in the late 1970’s, the Iowa state legislature passed an assessment limitation law in 1977 called rollback. Increases in assessed values for residential and agricultural property are subject to a formula limiting the value. If the statewide increase in values of homes and farms exceeds 3% due to revaluation, their values are “rolled back” so that the total increase in aggregate value is held to 3%. Rollback for residential and agricultural properties are allowed to fluctuate within the 3% limitation. The positive is that the tax burden will be predictable. A negative with this model is that taxpayers may experience a tax increase in a down market.

Designed to regulate large fluctuations in value, the rollback concept is similar to the limited market value concept utilized in Minnesota from 1973 through 1979, and again from 1993 through 2009, where a limitation was placed on a property’s taxable market value to limit rising property taxes resulting from rapidly increased property values.

EE

Properties are divided into classifications based on their primary use. The rollback and tax credits may be unique to a given classification.

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Tax Court: OCC, LLC vs. Hennepin County Submitted by Jake PIdde, Stearns County Editorial Committee Member

STATE OF MINNESOTA IN SUPREME COURT A18-0526 Tax Court

Per Curiam

In re OCC, LLC, Petitioner, OCC, LCC, Petitioner, vs.

Filed: August 29, 2018 Office of Appellate Courts

County of Hennepin, Respondent. ________________________

Eric J. Magnuson, Robins Kaplan LLP, Minneapolis, Minnesota; and Thomas R. Wilhelmy, Judy S. Engel, Fredrikson & Byron, P.A., Minneapolis, Minnesota, for petitioner.

Michael O. Freeman, Hennepin County Attorney, Thomas F. Pursell, Jane N.B. Holzer, John J. March, Assistant Hennepin County Attorneys, Minneapolis, Minnesota, for respondent. ________________________ SYLLABUS 1.

Petitioner’s notice to remove, filed within 10 days after receiving notice from

the court administrator of the judge assigned to preside at a scheduled proceeding in the case, was timely under Minn. R. Civ. P. 63.03.

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1

Tax Court, continued

2.

Because the record does not establish that honoring the timely notice to

remove is impracticable in this case, the tax court must honor that notice.

Petition granted.

OPINION PER CURIAM. In this case, we must decide whether the notice to remove an assigned tax court judge was timely, see Minn. R. Civ. P. 63.03 (allowing a notice to remove to be filed within 10 days of notice of the assigned judge), and if so, whether the assigned judge erred in finding that it was impracticable to honor the notice. See Minn. Stat. § 271.06, subd. 7 (2016) (stating that the Rules of Civil Procedure govern tax court procedures “where practicable”). OCC, LLC, a property owner in Hennepin County and petitioner in the Minnesota Tax Court, petitions for a writ of mandamus that directs the tax court to vacate an order that quashed OCC’s notice to remove the assigned tax court judge and to honor the notice. Hennepin County, respondent here and in the tax court, opposes the petition.

The County argues that OCC’s notice to remove was untimely, and based on the facts of this proceeding, the tax court correctly concluded that honoring the notice to remove was not practicable.

We conclude that OCC’s notice to remove was timely. We further conclude that the record does not establish that honoring the notice to remove is impracticable in this case. We therefore grant the petition for mandamus, direct the tax court to vacate its order quashing OCC’s notice to remove, and direct the tax court to honor that notice by assigning OCC’s consolidated tax proceedings to a different judge.

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Tax Court, continued

FACTS OCC, a property owner in Hennepin County, has filed three appeals from Hennepin County’s tax assessments for its property, one appeal for each tax year, 2015, 2016, and 2017. See Minn. Stat. § 278.02 (2016) (explaining that each petition challenging a tax assessment must be limited to a single assessment date). In July 2016, the tax court issued a scheduling order in the first case, for tax year 2015, directing OCC and the County to prepare and file a joint statement of the case by May 2017 (“July 2016 Order”). The July 2016 Order, signed by one of the three members of the tax court, notified the parties that the 2015 tax year appeal would be deemed “trial-ready as of September 5, 2017.” The Order also informed the parties that after the joint statement was filed, “the tax court administrator will assign a judge, schedule the trial in this matter, and notify the parties of the judge assignment and the trial date.”

On May 5, 2017, the parties filed their joint statement of the case in the appeal for the 2015 tax year. The parties also explained that two additional appeals (for the 2016 and 2017 tax years) had been filed for the same property and asked the tax court to consolidate the three cases. Finally, the parties asked the tax court to adopt the schedule in the July 2016 Order as the governing order for the consolidated cases.

On May 11, 2017, the tax court granted the parties’ joint request, consolidated the cases “for all further pretrial proceedings and for trial,” required the consolidated cases to “proceed under” the July 2016 Order, and notified the parties that the trial-ready date established by the July 2016 Order—September 5, 2017—now applied to the consolidated cases (“May 2017 Order”). The tax court judge who signed the July 2016 Order did not

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3

Tax Court, continued

sign the May 2017 Order. Instead, the judge who is the subject of the removal notice signed the May 2017 Order. As of the May 2017 Order, no other hearing and no specific trial date was scheduled in the consolidated cases. And the May 2017 Order did not notify the parties which tax court judge had been assigned to the case.

On August 18, 2017, OCC (through its counsel of record) requested a hearing date from the tax court administrator to address motions in limine. On August 21, 2017, the tax court administrator provided counsel for both parties with dates on which the tax court judge—the same judge who had signed the May 2017 Order—would be available for a hearing on OCC’s motions. A hearing date in September was selected.

On August 30, 2017, OCC filed a notice to remove the assigned judge, citing Minn. R. Civ. P. 63.03. Noting that a “Notice of Judicial Assignment has not yet been issued in these matters,” OCC relied on the judge information provided by the tax court administrator on August 21, 2017, to establish that its notice was timely.

On September 5, 2017, OCC asked the tax court administrator whether the September hearing on its motions in limine would be rescheduled in light of its notice to remove. At this point, Hennepin County objected to OCC’s notice to remove as untimely, stating that the assigned judge had already presided over the consolidated cases, in May, by granting the parties’ joint consolidation request in the May 2017 Order. Accordingly, the County contended, the deadline to file a notice to remove expired in May, and OCC’s August notice was untimely under Rule 63.03.

OCC, in response, argued that the

May 2017 Order consolidating the three appeals was a “ministerial action” that was not “a motion or any other proceeding” within the meaning of Rule 63.03.

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Tax Court, continued

The tax court, through the assigned judge, directed the parties to address whether OCC’s notice was timely and if so whether it was practicable to honor the notice in the consolidated cases. In response, Hennepin County moved to quash OCC’s notice to remove, arguing that it was untimely in light of the May 2017 Order. Further, the County argued, the decision on the consolidation motion was not “ministerial” but was instead a discretionary decision that impacted the work of the court and the parties. Finally, the County argued that the tax court had to determine, as a fact question, whether removal was “practicable” in this case, see Minn. Stat. § 271.06, subd. 7 (stating that the Rules of Civil Procedure govern in the tax court, “where practicable”), given an alleged pattern of judicial removals in unrelated tax court proceedings by OCC’s attorneys. The County asked the tax court to conclude “under the unique facts of this case” that honoring the removal notice is impracticable.

OCC opposed the motion to quash, asserting that the May 2017 Order did not “notify the parties of the judge assignment or of any hearing or trial date” and the parties did not have notice of a judge assignment before the tax court issued that order. Under the plain language of Rule 63.03, OCC argued, the time to remove did not begin to run until the parties “actually receive[d] notice of which judge [was] to preside at the hearing or trial,” which occurred when the hearing on its motions in limine was scheduled in August 2017. Finally, OCC asserted that the right provided by Rule 63.03, to remove an assigned judge, is a party’s right, rather than an attorney’s right. Thus, OCC explained, notices of removal filed by counsel for OCC in other tax cases, in which OCC was not a

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5

Tax Court, continued

party, were irrelevant to determining whether application of Rule 63.03 is practicable in this case.

The tax court, through the assigned judge, granted the County’s motion to quash OCC’s notice to remove.1 The tax court declined to specifically decide whether OCC’s notice to remove was timely. Instead, the tax court concluded that it was not “practicable” to honor the removal notice. The tax court was concerned that OCC’s counsel had a “practice” of removing the assigned judge, which could impair judicial independence.2 Relying on our decision in State v. Erickson, 589 N.W.2d 481 (Minn. 1999), the tax court concluded that it could not honor a notice to remove that “strikes at the court’s independence.” The tax court also concluded that as a court with only three judges, the tax court cannot “honor every notice of removal filed in every case” because to do so would allow parties to effectively choose which judge would hear the case, would constrain the court’s ability to effectively and efficiently manage its docket and calendar, and would deplete the limited funding available for appointment of acting judges. In reaching this conclusion, the tax court noted the unique elements of its jurisdiction, as a court with statewide jurisdiction that hears appeals from county property tax determinations, and Before resolving the motion to quash, the tax court completed the procedure to ensure that it had the authority to act on the constitutional issues that OCC raised in opposition to the County’s motion. See Erie Mining Co. v. Comm’r of Revenue, 343 N.W.2d 261, 264 (Minn. 1984) (explaining the procedure for the tax court to secure subject matter jurisdiction over constitutional issues).

1

Eventually, the tax court amended the initial order that quashed the notice to remove, to substitute references to the law firm that represents OCC with the phrase, “counsel for OCC.” The tax court did not substantively change its order with this substitution, so for purposes of this opinion, we refer only to the tax court’s final order.

2

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What You Get For

Apartments

By Amber Hill, CMA Polk County Editorial Committee Member

Bemidji, MN (Beltrami County) Sold for $360,000 in June of 2018 4 Units Built in 2000 on 2.07 Acres

Barnesville, MN (Clay County) Sold for $470,000 in June of 2018 12 Units Built in 1997 on 1.89 Acres

Red Wing, MN (Goodhue County) Sold for $268,500 in May of 2018 6 Units and Office Space Below Built in 1880 on .06 Acres

Austin, MN (Mower County) Sold for $300,000 in May of 2018 10 Units Built in 1972 on .06 Acres

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out of the past

Remembering Yesterday 5 Years Ago—2013 



Relator Kohl’s Department Stores, Inc., challenged respondent Washington County’s assessment of the value of one of its properties. It was determined the relator failed to meet its burden of demonstrating the tax court’s cap rate & calculation of market rent were clearly erroneous, we affirm.

Solomon Akanki reported on Global Assessment Trends in Lithuania stating the property market had started to improve, amidst healthy economic growth.

10 Years Ago—2008 

With the financial crisis of later in the fall looming, Larry Austin, Regional Rep of the DOR, reported that total sales for the 2007 Ratio Study were down 15% from the 2006 study period.



By Amber Hill, CMA Polk County Editorial Committee Member

Ward Einess, Commissioner of Revenue, reported that Minnesota ranks 12th for taxes on commercial businesses in Minnesota, at 41 percent of their collective tax burden.



15 Years Ago—2003 

With the days of easy money beginning to kick into high gear, the Minnesota Real Estate Journal reported that, despite increased vacancies and lowered rents, sale prices in the investment market continued to climb at a rapid pace.

25 Years Ago—1993 

20 Years Ago—1998 

The Minnesota Supreme Court ruled that the contamination tax does not violate the United States Constitution or the Minnesota Constitution.

The Minneapolis Star Tribune reported that a data entry error by a private appraiser contracted by Greendale Village, Wisconsin resulted in the assessed value of a modest suburban rambler to go from $137,200 to $1.2 million. The appraiser had input that the home had 250 fireplaces.

An article in Equal Eyes reported how the recent 25% to 3% decline in commercial real estate values was causing revenue shortages by many local governments across the United States.

30 Years Ago—1988 

In the fall of 1988 the average mortgage rate for a 30 year mortgage was 10.51%. A oneyear ARM was 7.88% while a VA mortgage was 10.5%.

Nationwide, the median price of an existing single family home was $87,700 while the median price of a new single family home was $110,500.

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State Board of Assessors Meeting Minutes St. Michael City Center Tuesday, May 15, 2018

Provided by Bobbi Spencer Minnesota Department of Revenue

Chairperson Gregg Larson convened the meeting at 9:00am.

Board members in attendance:

Gary Amundson Charlie Blekre Andrea Fish Jane Grossinger Reed Heidelberger

Joy Kanne Gregg Larson Dave Marhula Lori Schwendemann

Minutes of the March 20, 2018 meeting were reviewed. Dave Marhula moved to approve the minutes. Charlie Blekre seconded the motion. The motion carried.

Updates Form Report Update



38

Dates

Submitted Reports

Approved Reports

Rejected Reports

Reports Graded

being

July 1, 2013–December 31, 2013

6

6

0

0

January 1, 2014–June 30, 2014

13

13

0

0

July 1, 2014–December 31, 2014

13

13

0

0

January 1, 2015 – June 30, 2015

15

15

0

0

July 1, 2015 – December 31, 2015

13

12

1

0

January 1, 2016 – June 30, 2016

33

33

0

0

July 1, 2016 – December 31, 2016

26

25

1

0

January 1, 2017 – June 30, 2017

19

17

1

0

July 1, 2017 – December 31, 2017

9

9

0

0

January 1, 2018 – May 15, 2018

13

9

3

1

Passed Reports (7/1/2013 – 5/15/2018)

Received AMA

Received SAMA

Received CMAS

Have not applied for AMA

152

101

9

8

31



Rule Changes: Kyle Gustafson received a letter from Minnesota Management & Budget on April 3, 2018 in regards to rule review for the Board of Assessors. Kyle forwarded the letter to the Governor’s office on April 4, 2018 so they have it, as they continue to review the proposed rule changes.



September 18, 2018 Board Meeting: The board agreed to change the meeting date to 2018. The board’s meeting schedule on the website has been updated.



MAAO LEAD Courses: The LEAD courses approved, as an elective course at the March 20, 2018 board meeting will not become available until the format of the courses include a 1-hour exam.

Equal Eyes | Fall 2018

Thursday, September 13,

state board of assessors meeting minutes, continued



AMA Waiver Exam Update from Joy Kanne: Joy reported the AMA waiver comprehensive exam and application is complete. Assessors that are eligible to take the exam will be notified that registration to take the exam is available on July 2, 2018.



MAAO Curriculum & Assessor Standards Committee Update from Gary Amundson: Gary reported that the committee is looking at setting up a face to face meeting to review the progress so far and discuss the next steps.

Approved Continuing Education Hours Requests 

2018 Summer Seminars: Kim Jensen requested CEH’s for this conference that was held on May 23 – 24, 2018 in St. Cloud, MN sponsored by MAAO. The board’s continuing education committee approved this request for 4 hours of continuing education hours for each seminar offered.



20th Annual Real Estate Trends Seminar (Residential & Commercial): Ana Powers requested CEH’s for this seminar that was held on May 10, 2018 in St. Paul, MN sponsored by North Star Chapter of the Appraisal Institute.

The board’s continuing education committee approved this request for 8 hours of continuing education hours.



IAAO Annual Conference: Michael Smerdon requested CEH’s for this conference that was held on September 24 – 27, 2017 in Las Vegas, Nevada sponsored by IAAO. The board’s continuing education committee approved this request for 10.5 continuing education hours for only specific sessions that Michael Smerdon attended.



Appraisal vs CMA – What’s the Difference?: Maribelle Cushman requested CEH’s for this seminar that was held on April 26, 2018 in Bloomington, MN sponsored by North Star Chapter of the Appraisal Institute. The board’s continuing education committee approved this request for 3 hours of continuing education hours.



Residential & Commercial Valuation of Solar course: Maribelle Cushman requested CEH’s for this course that was held on April 19 - 20, 2018 in Fargo, ND sponsored by North Star Chapter of the Appraisal Institute & North Dakota Appraisers Association. The board’s continuing education committee denied this request for 15 hours of continuing education hours. The consensus of the CEH committee was that solar systems are exempt and assessors do not value solar installation, not enough to grant credit



FHA Appraising for Valuation Professionals: FHA Single Family Housing Appraisal Requirements: Ana Powers requested CEH’s for this seminar that was held on June 18, 2018 in Edina, MN sponsored by North Star Chapter of the Appraisal Institute. The board’s continuing education committee denied this request for 7 hours of continuing education hours. This seminar does not have enough assessment related education to consider it for continuing education hours.

Applications for Certified Minnesota Assessor Reed Heidelberger made a motion to award the Certified Minnesota Assessor license to the following individuals.

Davi Bullerman, Nobles County (effective May 22, 2018) Kimberly Kodet, Redwood County Lisa Kunze, Clay County (effective July 1, 2018) Mathew Malvin, Scott County Andrea Fish seconded the motion. The motion carried.

Applications for Certified Minnesota Assessor Specialist Gary Amundson made a motion to award the Accredited Minnesota Assessor license to the following individuals.

Darin Katzenmeyer, Local Assessor in Hubbard County Derek Lunser, Koochiching County Tracey Nelson, Koochiching County Stephanie Promersberger, Koochiching County Jane Grossinger seconded the motion. The motion carried.

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state board of assessors meeting minutes, continued Applications for Accredited Minnesota Assessor Dave Marhula made a motion to award the Accredited Minnesota Assessor license to Brenda Vander Pol, Renville County. Gary Amundson seconded the motion. The motion carried.

Andrea Fish made a motion to award the Accredited Minnesota Assessor license to Kim Kirchoff, Renville County (second interview). Lori Schwendemann seconded the motion. The motion carried.

Gary Amundson made a motion to award the Accredited Minnesota Assessor license to Lisa Lindeman, Carver County (second interview). Reed Heidelberger seconded the motion. The motion carried.

Reed Heidelberger made a motion to award the Accredited Minnesota Assessor license to Tom Shoemaker, Scott County (second interview). Jane Grossinger seconded the motion. The motion carried.

Application for Senior Accredited Minnesota Assessor Dave Marhula made a motion to award the Senior Accredited Minnesota Assessor license to the following individuals: Braden Johnson, Hennepin County (effective June 3, 2018) Ashlei Munneke, Hennepin County Joy Kanne seconded the motion. The motion carried.

Jane Grossinger made a motion to award the Senior Accredited Minnesota Assessor license to Andrew Brown, Blue Earth County (effective July 1, 2018). Reed Heidelberger seconded the motion. The motion carried.

Appointment with the Board Education Update: Jessi Glancey from the Department of Revenue and MAAO Curriculum Committee provided information on the future of reviewing curriculum and creating new courses. The rewrite of Mass Appraisal was contracted out, it went very well, and it is now owned by MAAO. The Curriculum Committee created a five-year plan to review licensure courses and determine which ones need to be rewritten or updated. Jessi provided a handout of the AMA Licensure Standards developed by the committee that will be used when reviewing courses to make sure courses are meeting the needs of the assessors. Jessi reported that PACE will be available this year but has a new look and feel. PACE will now be offered as a two-day course with an exam and will need to be taken in two parts, PACE 1 in 2018 and PACE 2 in 2019. The board also discussed the Minnesota Assessment Administration Course and the IAAO Administration Course. The board will review the IAAO course at the July meeting.

Discussion Items 

MAAO Committees: It was determined by the board that they would not be replacing Brian Koester on the Conference Content Committee. The Assessor Development committee would be beneficial to have a board member on. Joy Kanne volunteered to be the board’s representative on the Assessor Development committee, she will contact MAAO.

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Trainee Registration: The board strongly feels that all counties should be tracking part-time/student interns that work as a data collectors for assessment experience purposes. Need to track them to help define experience and the work they are doing to meet the 3-year experience law.

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Reinstatement & PACE: The PACE course is rewritten every 4 years so instead of taking it twice to fulfill both 4year cycles the assessor will only take it once but will not receive continuing education hours in order for the PACE course to apply to both cycles.

Andrea Fish made a motion to adopt the changes to the continuing education requirements for reinstatement. Dave Marhula seconded the motion. The motion carried.

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state board of assessors meeting minutes, continued

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Oral Interview Purpose & Objective Statement: The board finalized the mission statement. It will be sent out via email to the board members for a final review.

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Oral Interview Questions: The board discussed creating a scoring rubric for the oral interview questions. Andrea Fish and Bobbi Spencer will pick three questions and add the scoring rubric for board members to review at the July meeting.

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Signatures on Applications: Should the person signing the application verifying assessment experience be a licensed assessor? Tabled for July meeting.

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Assessment Experience: How does the board define assessment experience? Tabled for July meeting.

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Education Requirements for Licensing: Review education requirements for each license level. Tabled for July meeting

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Course Expectations: Create expectations for courses. Tabled for July meeting.

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Jurisdictional License Level List: Discuss the future in 2022 will the Jurisdictional License Level list change when everyone has to be an AMA. Tabled for July meeting.

The chairperson set the next meeting date as Tuesday, July 17, 2018 at the St. Michael City Center in St. Michael at 9:00 am.

Dave Marhula made a motion to pay the expenses for the meeting. Jane Grossinger seconded the motion. The motion carried.

Charlie Blekre made a motion to adjourn the meeting. Dave Marhula seconded the motion. The motion carried.

Fall 2018 | Equal Eyes

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Crossword Answers Name:

Appraiser Crossword Complete the crossword below 1

a i

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i n t e r e s t r a t e l

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y Created with TheTeac hers Co rner.net Cro s s wo rd Puz z le Generato r

Across 3. A listing o f data in o rder o f magnitude. (array) 6 . Unifo rm Standards o f Pro fessio nal Appraisal Practice. (uspap) 7 . Po o r lo catio n is an example o f this type o f o bso lescence. (e co no m ic) 8. The rate o f return o r premium paid fo r the use o f mo ney. (int e re st rat e ) 10 . Po ssessing the quality o f being alike and therefo re co mparable; said o f data that are co nsistent, having lo w dispersio n. (ho m o ge ne o us) 12. 43,56 0 sq. ft. (o ne acre )

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Equal Eyes | Fall 2018

Down 1. The right to use space abo ve real estate. (airright s) 2. Legal instrument(s) co nstituting pro o f o f pro perty o wnership. (t it le ) 4 . Our new MAAO President (m iche lle m o e n) 5 . The maximum value o f a sample minus the minimum value. (range ) 9 . A pro cess in which a pro perty o wner co ntests an assessment either info rmally o r fo rmally. (appe al) 11. The amo unt o f go o ds o r services that wo uld be o ffered during a given perio d. (supply)

Fall 2018 | Equal Eyes

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WHERE AM I?

This loon is located in Vergas in Otter Tail County. Vergas is known as the “Home of the Loon”, the Minnesota State Bird. This 20 foot giant replica is erected on the shore of Long Lake.

Official Publication of the Minnesota Association of Assessing Officers mnmaao.org

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Equal Eyes | Fall 2018