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Board sets Beresford shopping-center assessment after debate over income vs. cost approaches
Summary
After hearing county staff and the owner’s representative debate income- and cost-based valuation methods, Lincoln County commissioners set the 9 Mile South Dakota LLC shopping center’s assessed building value at $1.45 million and land at $116,300 by unanimous roll call.
The Lincoln County Board of Equalization set the assessment for a Beresford shopping center owned by 9 Mile South Dakota LLC after hearing competing valuation arguments.
Austin Preheim of the Lincoln County Assessor’s Office presented the parcel at 1108 West Cedar Street (parcel 260.50.31.005). He described the shopping center as 23,125 square feet on a 74,255-square-foot lot (1.70 acres), built in 2004 with a 2014 addition. The assessor’s office reported a current assessed structure value of $1,777,300 (about $77 per square foot) and land assessed at $116,300, totaling $1,893,600, and recommended no change after relying primarily on the cost approach. Preheim told commissioners the office did not use the income approach submitted by the appellant because, in staff’s view, the appellant’s income figures were not reflective of local comparable properties or were not independently verified.
Todd Running, representing the property owner through RCM, argued the county should use an income approach rather than a cost approach, saying leases and occupancy changes justify a lower valuation; he said the appellant considered a lower value near $1.155 million. County staff countered that using the rents and expenses supplied in the appellant’s packet with the county’s methodology produced a value close to the July 2022 purchase price (about $1.2875 million) and therefore did not support the appellant’s lower figure.
After discussion, one commissioner proposed a compromise: value the land at $116,300 and the building at $1.45 million. The board moved and seconded that compromise. The roll-call vote was unanimous in favor (Commissioners Putnam, Schmidt, Arends and Landeen all voting Yes), and the board directed the Equalization Office to update records and notify the owner.
The board completed both appeals and adjourned.
