Board rejects nonprofit’s tax cut request, amends tornado-damaged home value and affirms referee recommendations on other protests

The Douglas County Board of Equalization on Aug. 5 heard multiple contested valuation protests under agenda item G and recorded several distinct outcomes: the board declined a proposed cut sought on behalf of a nonprofit tenant known as The Bay, amended the assessed value of a tornado-damaged Bennington home, and ultimately approved the referees’ recommendations for the remaining protested parcels.

Nut graf: Item G bundled multiple property protests and attracted extended debate. Attorneys and referees presented valuation methods — including income-capitalization, sales comparables and consideration of lease terms — and commissioners weighed arguments about market value, equalization and the limits of the board’s role.

The Bay (6120 Military Avenue, Benson). Attorney David Levy of Baird Holm represented The Bay, a 501(c)(3) tenant occupying roughly 39,000 square feet and paying $1 per square foot. Levy told the board the organization “pays a dollar a square foot for 39,000 square feet” and that an 8% capitalization rate applied to that rent supports a valuation of $458,823, the figure he requested. The assessor’s 2024 value listed the building at about $1.3 million; the referee reduced that to about $1,047,300. Commissioner Morgan moved to adopt Levy’s requested valuation of $458,823; Commissioner Kavanaugh seconded the motion. The motion failed on a roll call (yes: Commissioners Fahey, Kavanaugh and Morgan; no: the other commissioners). The board then proceeded to approve item G overall, leaving other referees’ recommendations intact.

Hanover Falls outlots (three parcels). Carrie Schwab of Baird Holm asked the board to return three undevelopable outlot parcels in Hanover Falls (Bennington) to their 2024 nominal values ($400, $100 and $800, respectively). Referee coordination and testimony from Rick Koder indicated the assessor initially listed the parcels at market values this year in error; the referees reduced them to token values that total $8,200 for the three parcels. The board did not alter the referees’ recommendations during the item G vote.

Tornado-damaged Bennington home (Mark Rasmussen). Mark Rasmussen spoke seeking a further reduction after tornado damage and a 2024 partial reduction. The assessor’s packet and referee review showed the house was under rehabilitation and that a partial value had been placed on the structure. Commissioner Morgan moved — and the board adopted — an amendment setting the land value at $118,100 and assigning a partial building value of $52,000, for a total assessed value of $170,100 for the parcel; the motion passed with Commissioner Borgeson dissenting and Commissioner Rogers absent.

Other notable comments and protests. Citizen Chad Adams presented a broader critique alleging commercial parcels are systematically undervalued against residential comparables; his materials were offered to the clerk for follow-up. David Cole (owner/operator at 12701 Q Street, listed as K's LLC) protested a roughly $900,000 increase in his commercial valuation; a motion to compromise the figure at $2.75 million failed. Property owner John Wilhelmi described a prior anomalous 2022 jump and subsequent county correction; referees concluded no change for the current protest.

Final vote on item G: After discussion and the Rasmussen amendment, the board voted to approve item G (the referees’ recommendations and the adopted amendment) by a 6-0 vote, concluding the contested valuations docket for the day.

Ending: Commissioners noted that property-tax appeals may proceed to the Tax Equalization and Review Commission (TURC) if parties remain dissatisfied. The Board of Equalization then adjourned and returned later in the meeting for Board of Commissioners business.