Commission hears 27 abatement appeals; retains most values, approves targeted reductions

A county commission convened a special meeting to hear 27 property tax abatement appeals filed under North Dakota law, retaining assessed values for most parcels while approving several targeted reductions.

The meeting opened with the chair noting remote participation and turning the discussion over to Mike, assessment staff, who said the appeals — submitted through Ryan LLC for 2023 certified values — represent an unusually large batch. He told the commission the staff recommendation was to retain the assessed value on 23 parcels and reduce value on four, and outlined options for the hearing: act on each property individually, group by owner, or group by recommended action.

Why it matters: Appeals can change taxable values and future tax liabilities; under North Dakota law property owners have up to two years after certification to appeal assessments, and the commission’s votes determine whether reductions are granted.

Applicants and appraisers presented market and income-based analyses. Lawrence DeSmet of Ryan LLC said his firm used an income approach for several commercial properties (including three Starbucks locations and an SRS Distribution site), applying a 7.5% capitalization rate and observable on‑line lease rents to support lower valuations. DeSmet also pointed to a neighboring property listed at about $75 per square foot while his client’s parcel was assessed near $85 per square foot as evidence of overassessment.

Assessment staff responded with sales comparables and rank statistics. Mike said the subject industrial property sits near the 25th percentile of the market-price range, with the staff’s median sales-per-square-foot at about $105, comparable median at ~$89/sq ft, and the subject at about $85/sq ft — an argument staff offered to support that the property is being treated consistently within the market.

On procedural votes, the commission moved to retain the staff-recommended value for the Enclave/Burger King parcel and recorded affirmative votes by the commissioners present. The commission likewise moved to retain value for the identified Starbucks parcel (property 4609) and approved that motion.

With no additional representatives speaking for several other contested parcels, the commission approved a grouped motion to retain assessed values for items labeled a through w, excluding u and v.

Staff identified two reductions to consider. One was a warehouse built in 2020 for which staff recommended matching a 2024 Board of Equalization reduction. The other was a former bank building at 3802 13th Avenue South (described as a hexagonal, two‑story structure built in 1974) for which staff recalculated depreciation and functional obsolescence. For the bank building, company representatives asked for a value as low as $1,000,001.90; assessment staff proposed reducing the assessment to $1,200,000, a difference April (staff) said was reasonable. The commission approved the recommended reduction.

Several motions and roll calls during the meeting recorded commissioners Kolpak, Strand, Turnberg and Mahoney voting in the affirmative on multiple items. Where roll-call names or recorded responses in the transcript were unclear or incomplete, the article notes votes as recorded in the meeting transcript rather than inferring additional yes/no votes.

The meeting concluded with staff saying there was no further business and the chair adjourning the special session.

Quotes "This is an unprecedented amount for us, 27 all at once," Mike (assessment staff) said, explaining why a special meeting was called to avoid commandeering a regular commission meeting.

"We used a 7.5% cap rate...we came to an indicated value of 2,051,000," Lawrence DeSmet (Ryan LLC) said, summarizing his firm's income-based valuation for an industrial property under appeal.

Next steps: The commission applied its votes to the presented appeals during the special session; no additional hearings were scheduled in the transcript.