oﬃ cial publication of the minnesota association of ...449783_hc_equal_eyes_2.indd...

Spring 2007 EQUAL EYES 1

Offi cial Publication of the Minnesota Association of Assessing Offi cersSpring 2007 Volume 29, Number 108

MAAO 2007 Professional Development Course Brochure

Also Inside:

EQUAL EYES

Got Gas? E85 : The Gas of the Future? by Carol Schutz

Sustainable Housing

History Fest

NEW MAAO Merchandise For Sale

49783_HC_equal_eyes_2.indd 149783_HC_equal_eyes_2.indd 1 4/5/2007 9:57:55 AM4/5/2007 9:57:55 AM

2 EQUAL EYES Spring 2007

Spring 2007

CONTENTS

EQUAL EYES

FeaturesMAAO Course Review, Behrenbrinker...................................10Legislative Commi ee Update, Kuha...................................15Sustainable Housing, Krupski................................................16MAAO Merchandise Ad, Olsson...........................................18Got Gas?, Schutz......................................................................19History Fest, Manderfi eld........................................................23MAAO 2007 Professional Development Brochure.............26MAAO PDA Information.......................................................32MAAO Summer Seminar 2007 Ad.......................................39

DepartmentsAnnouncements..................................................................3Boards, Directors,Chairs, and Representatives........................4President’s Perspective, Wagner................................................6Commissioner’s Comments, Einess.............................................7IAAO Items, Peterson.............................................................8Tax Court Forum, Pasternacki.....................................................9Out of the Past, Erickson.................................................11In My Opinion, Schutz.................................................12Let’s Get Acquainted, Moreland................................................13State Board of Assessors Meeting Minutes, Lundgren...............33Across The Regions, Wojcik...............................................35As I See It, Malmquist............................................................38

Volume 29, Number 108

Article to suggest, le er to the Editor, or any other correspondence for EQUAL EYES?

Send to:Rebecca MalmquistManaging Editor14600 Minnetonka BoulevardMinnetonka, MN 55345Phone: 952.939.8222Fax: [email protected]

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.

Visit the MAAO website at:www.mnmaao.org

On the Cover:Granite Falls Energy

Carol Schutz



Equal Eyes Issue Deadline June 1, 2007

ANNOUNCEMENTS:

2007 PVC ScheduleFergus Falls: Nov. 7 and 8, 2007 Bigwood Event Center, Fergus Falls. Ethics: MN Department of Revenue Staff, PVC Instructors: Robert Moe and Robert Hansen.

Grand Rapids: Oct 16 and 17, 2007 U of M Experiment Station Grand Rapids. Ethics: MN Department of Revenue Staff, PVC Instructors: Scott Winters, Amber Peratalo and Beth Mackey.

Marshall: Nov. 13 and 14, 2007 Best Western Inn Marshall. Dean Champine and Kathy Hillmer.

Slayton: Nov. 7 and 8, 2007 Royal Loon Super Club, 3124 Juniper Ave. Slayton, MN.Byron Swart and Gale Bondhus

St Cloud: Oct 30 and 31, 2007 Holiday Inn St Cloud. Gary Grossinger and Greg Kramber.

Thief River Falls: Oct. 31 and Nov. 1, 2007 Best Western Inn in Thief River Falls. Ethics: MN Department of Revenue Staff, PVC Instructors: Cheryl Grover and Bruce Dahlin.



EQUAL EYES

Jacquelyn Betz, CMAMinnesota Department of Revenue

Associate Editor

Nancy Wojcik, SAMACity of Brooklyn Center

Rebecca Malmquist, SAMACity of Minnetonka

Managing Editor, Chair

Executive Board

Past PresidentWilliam Peterson, SAMA, CAE

Dakota County Assessor1590 W Highway 55Hastings, MN 55033

651.438.4208 Fax [email protected]

PresidentRobert Wagner, SAMAPolk County Assessor

612 North Broadway, Suite 201Crookston, MN 56716-1452


First Vice PresidentStephen Behrenbrinker, SAMA, CAE

St. Cloud City Assessor400 2nd St S

St. Cloud, MN 56301320.650.3352 Fax 320.255.7205

[email protected]

Secretary/TreasurerJudy Remer, SAMA

Bloomington Chief Commercial Appraiser1800 West Old Shakopee Road

Bloomington, MN 55431952.563.8707 Fax 952.563.4741

[email protected]

Second Vice PresidentStephen Hacken, SAMAWinona County Assessor

177 Main StWinona, MN 55987


Region 1Loren Benz, SAMA

Wabasha County Assessor651.565.3669

[email protected]

Region 3Gary Grossinger, SAMA

Stearns County Assessor320.656.3685

[email protected]

Region 2Julie Roisen, SAMA, CAE

Blue Earth County Assessor507.389.8257

[email protected]

Region 4Tom Gilmore, SAMA

Itasca County Assessor218.327.7498

[email protected]

Region 7Steve Skoog, SAMA

Becker County Assessor218.846.7300

[email protected]

Region 9Stephen Baker, SAMA, CAERamsey County Assessor

[email protected]

Region 8JoAnn Kerian, SAMA

Marshall County Assessor218.745.5331

[email protected]

Region 6Lori Schwendemann, SAMA

Lac Qui Parle County Assessor320.598.3187

[email protected]

Region 5Kathy Hillmer, SAMA

Redwood County Assessor507.637.4008

[email protected]

Editorial BoardMarci Moreland, SAMA

Carlton County

Tina Diedrich, AMAStearns County

Connie Erickson, SAMAYellow Medicine County

Michelle Cote, SAMAPolk County

Region Directors



Steve Hurni320.632.3949

Big Stone, Chisago, Isanti, Kanabec,Kandiyohi, Meeker, Mille Lacs,Morrison, Pine, Pope, Stearns,

Stevens, Traverse, Wilkin

Department of Revenue Representativesand the Areas They Represent

Gary Amundson218.575.3183

Aitkin, Carlton, Cass, Cook, Crow Wing, Douglas, Grant, Itasca,

Koochiching, Lake, Otter Tail, St. Louis, Todd, Wadena

Tom Nash507.359.7022

Brown, Cottonwood, Jackson,Le Sueur, Lincoln, Lyon, Martin,

Murray, Nicollet, Nobles, Pipestone,Redwood, Rock, Watonwan

Larry Austin651.556.6098

Anoka, Carver, Dakota, HennepinRamsey, Scott, Washington

Al Heim651.470.9893 (Cell)

Benton, Chippewa, Lac qui Parle,McLeod, Renville, Sherburne, Sibley,

Swift, Wrignt, Yellow Medicine

Brad Averbeck218.846.1243

Becker, Beltrami, Clay, Clearwater,Hubbard, Kittson, Lake of the Woods,

Mahnomen, Marshall, Norman, Pennington, Polk, Red Lake, Roseau

Lloyd McCormick507.332.5520

Blue Earth, Dodge, Faribault,Fillmore, Freeborn, Goodhue, Houston,

Mower, Olmsted, Rice, Steele,Wabasha, Waseca, Winona

Committee ChairsAgriculturalTom Houselog, SAMABox 509Luverne, MN 56156507.283.5022 Fax 507.283.1343

EducationBob Wilson, SAMA, CAE4801 W 50th StEdina, MN 55424952.826.0426 Fax 952.826.0389

Commercial/IndustrialJim Atchison, SAMAA-2103 Government CenterMinneapolis, MN 55487612.348.4567 Fax 612.348.8751

Information SystemsBruce Sanders, SAMA, CAEPO Box 1180Maple Grove, MN 55311-6180763.494.6254 Fax 763.494.6416

LegislativeSteve Kuha, SAMAPO Box 3000Walker, MN 56484218.547.3300 X239 Fax 218.547.2440

Long Range PlanningWilliam Peterson, SAMA, CAE1590 W Highway 55Hastings, MN 55033651.438.4208 Fax 651.438.4469

Membership & AwardsJan Olsson, AMA, RES3400 Plymouth BlvdPlymouth, MN 55447763.509.5355 Fax 763.509.5060

NominatingThomas Dybing, SAMA304 S MarshallCaledonia, MN 55921507.725.5801 Fax 507.725.2647

Research and PlanningStephen Hacken,SAMA177 Main StWinona, MN 55987507.457.6300 Fax 507.454.9372

Rules and ResolutionsMarvin Anderson, SAMA, CAE5200 85th Ave NBrooklyn Park, MN 55443763.493.8173 Fax 763.493.8391

Sales RatioStephen Baker, SAMA, CAE50 W Kellogg Blvd, Ste 840St. Paul, MN 55102-1657651.266.2005 Fax 651.266.2001

ScholarshipWilliam Peterson, SAMA, CAE1590 W Highway 55Hastings, MN 55033651.438.4208 Fax 651.438.4469

Membership CoordinatorJulie Roisen, SAMA, CAEPO Box 8608Mankato, MN 56002507.389.8257 Fax 507.389.8344

Conference CoordinatorPaul Knutson, SAMA, RES320 NW 3rd St, Ste 4Faribault, MN 55021-6100507.332.6102 Fax 507.332.5999

FinanceBill Effertz, SAMAA-2103 Government CenterMinneapolis, MN 55487612.348.3388 Fax 612.348.8751

Silent Auction Jane Grossinger33872 MN HWY 15Kimball, MN 55353320.398.6705

Tax CourtJack Pasternacki, SAMA, CAE1800 West Old Shakopee RdBloomington, MN 55431952.563.8708 Fax 952.563.4741

Site Selection CommitteeStephen Behrenbrinker, SAMA, CAE400 2nd St SSt. Cloud, MN 56301320.650.3352 Fax 320.255.7205

Organizational ReviewNancy Bye, SAMA, CAE3400 Plymouth BlvdPlymouth, MN 55447763.509.5351 Fax 763.509.5060

Weeklong Course CommitteeBob Wilson, SAMA, CAE4801 W 50th StEdina, MN 55424952.826.0426 Fax 952.826.0389



Once again it is time to prepare the President’s Post. It seems to come fast – and often, too. I guess after the 2006 Fall Conference, four times to be exact!

Well, here goes.

This issue should reach you before the May Summer Seminars. Check the website for a list of the seminars offered this year. They seem to get better every year.

Our February Executive Board meeting was busy. The Region reports were interesting as always—tours, speakers, discussions of the woodlands, resorts, ag/green acres and conservation easements reports. There were also interesting and thought-provoking questions on specific assessment situations. I am still looking to attend a meeting in each Region this year. Also, we have learned that Nancy Bye of Region 9 and Don Holm of Region 8 will be retiring in April this year. They will be missed, but we wish them well. (We all are a bit envious of them.)

Conferences went well this past year with monies being deposited in the general fund.

Our Education and Weeklong Course committees have been very busy. There are numerous offerings from MAAO including IAAO Courses. Fall Conference seminars are in the works and PACE, Code of Ethics and PVC dates are being scheduled. Many thanks to all involved with our education. Check the website for information.

Congratulations to Tina Diedrich of Stearns County who is the new member on the editorial committee. Rebecca has her committee “humming” on getting the four issues out this year. Be sure to check out the MN Spotlight that was

featured in a recent issue of IAAO’s Fair & Equitable.

We are anticipating a busy legislative year. A meeting was held with the Legislative Committee, some of the Executive Board members, and members of the House and Senate Tax committees. I believe it was a good meeting with both

sides getting a better understanding of the issues. Now it is up to our Legislative Committee and Rob Vanasek to keep us informed of what is happening this year.

You probably have noticed some changes in the website. Sign-in is different. Your email address and your current password are required to access the member’s area. Look to the homepage for information if you are having trouble signing in. The general membership will not see a lot of the changes directly as we get the database portion updated. This will assist us in keeping better records of our members. As with any change, there are bumps and bruises along the way, but the end results are worth it.

We now have a job description for region directors. This will be a big help to those of you who will be elected as new directors at the Fall Conference. I wish I would have had a copy of this for my first year as a region director!

Another project the Executive Board has taken on is the changing of our By-Laws to better reflect our current practices. Check the Executive Board minutes from February for more information. The plan is to have the recommended changes ready to vote on at the Fall Conference in Duluth.

We are also in the process of creating an Assessor’s Tool Kit for new assessors and an Association Handbook. These should help our members better understand the roles in their office and in the organization.

As I wind down here, I reflect on my ramblings and musings of what is happening in the MAAO. We are busy with the ever changing assessment field, and I think that the MAAO is on top of it!

As always, a thank you to our members.

The President’s PostWri en by Robert L. Wagner, SAMAPolk County AssessorMAAO President



Commissioner’s CommentsGovernor Pawlenty Emphasizes Homowner Property Tax Relief

Wri en by Ward Einess, Commissioner of RevenueProperty taxes are too high! If you’ve heard that complaint once, I’ll bet you’ve heard it a thousand times. Governor Pawlenty and Minnesota’s legislators have heard the message too–and so it’s no surprise that property tax relief is destined to be one of the most prominent issues of the 2007 legislative session.

The Governor is proposing $150 million in property tax relief for Minnesotans. While local property taxes are determined primarily by local government spending decisions, the Governor’s budget provides a multi-pronged strategy of delivering property tax relief to homeowners.

Here’s a brief summary of the key components of the Governor’s property tax relief proposal:

Homestead Market Value Credits – $47 million. This credit program directly reduces property taxes for all homeowners. The amount of credit homeowners receive is based on the assessed value of their homes, with a maximum credit of $304. The Governor’s budget includes a permanent increase in the benefit to existing homeowners and an expansion in the number of homeowners that can benefit.

Local Government Aid (LGA) – $10 million. The Governor’s budget increases aid to local governments to mitigate some of the burden on property tax payers. It adds $10 million annually to the LGA appropriation beginning in fiscal year

2009 (pay 2008). The money will be distributed through the existing formula. For cities with populations over 100,000, the Governor is recommending that the new LGA be targeted to address public safety concerns.

Property Tax Refunds (PTR) – $8.5 million. The Governor’s budget enhances the current PTR formula to expand the relief across all eligible income brackets, and raises the maximum property tax refund. This program currently provides property tax relief for 300,000 homeowners, about 40 percent of whom are seniors or disabled. The PTR has proven to be a very effective mechanism for targeting property tax relief to homeowners who are burdened with high property taxes relative to theirhousehold income.

Public School Operating Capital Levies – $40 million. The Governor’s budget includes changes in how operating capital projects are funded in public schools. These projects are now split between local levies and state aid. The Governor’s budget increases the portion paid by the state and automatically reduces the portion paid by the local levy. This measure, which is carried in the Department of Education budget, will provide statewide property tax relief.

County Aid – $40 million. The Governor’s budget also includes $40 million in county aid that will help mitigate the property tax impacts of pending federal funding reductions.

Ward EinessWard Einess was appointed commissioner of the Minnesota Department of Revenue in January 2007.

Prior to that he served as acting commissioner of the Minnesota Department of Employment and Economic Development (DEED) beginning in March 2006, after serving as deputy commissioner since October 2005. DEED is charged with the mission of employing all available resources to support the economic success of Minnesota’s individuals, businesses and communities.

Ward has a wealth of experience in legislative analysis and public policy,

Finally, the Governor has proposed new levy limits that strike a reasonable and prudent balance between the interests of locally elected officials to make budget decisions and the interests of property owners to be protected from large tax increases.

If enacted, this property tax relief package promises to deliver meaningful property tax relief to homeowners. For example, if this proposal had been in effect for property taxes payable in 2007, an average valued home in Minnesota would have seen its property tax increase reduced by more than 50 percent, from an average increase of 6.3 percent to an average increase of 2.9 percent.

The 2007 legislative session has been noteworthy for the very robust and productive discussions that have taken place around the issue of homeowner property tax relief. Based on these discussions, it has become evident that there exists a general consensus between the Governor and the Legislature regarding the appropriate levers to pull (consensus levers = LGA, market value credit, property tax refund, education levies) in order to deliver property tax relief. The differences that exist pertain to which levers to emphasize and the amount of state resources that should be dedicated to property tax relief. As we enter the final months of the legislative session, I am looking forward to working closely with the Legislature to craft a meaningful and affordable property tax relief package.

having served as Governor Tim Pawlenty’s senior policy advisor and worked closely with DEED on several key initiatives.

Before joining the administration, Einess was director of fiscal policy for the Minnesota Business Partnership. He is a licensed attorney who worked as a judicial law clerk before serving as researcher and legislative analyst for the Minnesota Senate Republican Caucus.

Einess is a 1988 graduate of Gustavus Adolphus College, with a Bachelor of Arts degree in Political Science/History. He graduated from Hamline University School of Law in 1991, and was admitted to the Minnesota State Bar in 1991.



International ItemsWri en by Bill Peterson, SAMA, CAEDakota County AssessorMAAO Past PresidentIAAO RepresentativeIAAO/Appraisal Foundation RelationshipIAAO is currently contemplating whether or not to maintain its current membership and relationship with The Appraisal Foundation (TAF). The MAAO Executive Board recently discussed this issue at length. They feel, for the sake of professionalism and credibility for the assessing industry, it is necessary for IAAO to continue to align itself with TAF. The MAAO Executive Board unanimously passed a resolution encouraging them to do so, and MAAO President Wagner sent IAAO a letter notifying them of such. This includes retaining positions on the Board of Trustees and Advisory Council and ensuring that all IAAO professional designations, educational opportunities and publications meet the standards established by TAF. MAAO realizes there are many issues involved, including financial, but feels this is part of the cost of ensuring public trust and confidence in the property tax system. MAAO also feels the new appraiser qualification criteria (which unfortunately may discourage some candidates) is reasonable.

IAAO Website RevampBy the time you read this, IAAO will have launched their new, improved website. I had the opportunity to test it before roll out. It’s much more user friendly, and I hope you’re impressed as well. They’ve added a site map that makes looking up what you want a whole lot faster.

New Membership DiscountI’d like to remind you that IAAO has a special offer for new members. First time members will receive a half price membership discount ($87.50) if they contact a state representative. If you’re interested, contact: Jan Olsson, 763-509-5355; Mark Krupski, 507-281-6293; or Bill Peterson, 651-438-4200. Sign up today!!!

Key Reasons to Become an IAAO MemberEducation: Cost effective education programs help you meet the challenges of an increasingly complex career. IAAO offers a range of educational opportunities for the beginner to seasoned professional. Textbooks are known for their depth and quality of information.

Professional designations: Receive certification that recognizes professionalism, and competency in matters regarding property appraisal and assessment for property tax purposes.

Peer networking: Meet other assessment professionals to share common ideas, concerns and interests. Tap the IAAO brain trust with IAAO’s new online networking forum AssessorNET. Share and receive ideas at conferences and seminars. Locate other members through Member Look-Up.

Publications: Fair & Equitable and Journal of Property Tax Administration, IAAO’s monthly and quarterly publications, bring you up-to-the-minute perspectives and research on today’s assessment issues.

Library Services: Access to a research library featuring 10,000 volumes of literature and over 600 periodicals.

Members-only access and discounts: Receive special rates on publications, text books, technical standards, seminars, and conference registration. Utilize special sections and resources on the IAAO website including access to the library through memberlink and the Glossary for Property Appraisal and Assessment.

Leadership opportunities: Become an author in one of IAAO’s publications. Help shape industry policies by volunteering for a committee or consider running for the IAAO Executive Board.

Deadline for ElectionsThe deadline for submitting candidacy forms to IAAO is July 1. This year, due to the change in the election cycle, the elections will be held November 15 through December 15, 2007.

IAAO Membership SurveyIAAO will be conducting a membership survey to measure member satisfaction and to better gauge member needs and perceived value of IAAO membership. The survey will start later this spring, and the results will be reported at the Annual Conference in Atlanta. The last membership survey was conducted in 1998.

2007 IAAO Conference – AtlantaThis year’s conference will be held in Atlanta, Georgia, September 9 through September 12. The host hotel is the Atlanta Marriott Marquis. I’m sure the program will be exceptional, and you’ll enjoy some southern hospitality. Let’s see if we can’t have a large Minnesota contingent!

Future Conference Sites2008 Reno, Nevada September 7-10, 2008 Grand Sierra Resort and Casino (formerly Reno Hilton)

2009 Louisville, Kentucky October 4-7, 2009 Galt House Hotel and Suites

2010 Orlando, Florida August 29-September 1, 2010

Walt Disney World Dolphin



Tax Court ForumWri en by Jack Pasternacki, SAMA, CAEBloomington City AssessorMAAO Tax Court Commi ee Chair

A recent court decision from Ohio may be of interest to Minnesota assessors: Ohio Supreme Court Decision on Anchor Department Store (107 Ohio St.3d 325; Higbee Company v. Cuyahoga County Board of Revision).

In January 2006, the Ohio Supreme Court issued a decision that rejected the valuation of department stores via projected store sales per square foot, a method that has been presented in appeals in Minnesota cases for many years. The case involved an appeal of a prior decision of the Board of Tax Appeal (BTA) on a Dillard’s department store, one of four anchors at the South Park Center Mall, in Strongsville, Ohio. The 213,084 square-foot building was built in 1996, and the case involved tax year 1997. The original assessed value for 1997 was $17,036,714, and the owner filed a complaint with the Cuyahoga County Board of Revision, stating the store was worth only $6,860,250. After the hearing, the board made no change to the valuation. The owner then filed an appeal with the BTA, and the owner presented two appraisals: one at $9.6 million and one at $10.5 million. The appraiser for the taxing jurisdiction valued the property at $22 million. The BTA’s final decision was to accept cost-based valuation by the owner’s appraiser, Maxwell Ramsland, MAI, with a final rounded decision value of $14,945,000 or $70.13 per square foot ($4.25 million for the land and $10.65 million for the building). This was based on a replacement value of $15,975,000, less $534,573 for physical depreciation and $5.5 million for external obsolescence, plus $751,688 for site improvements. The BTA did not accept Ramsland’s calculation for functional obsolescence which would have further reduced the building valuation by $3,445,000.

This decision was then appealed by the owner to the Ohio Supreme Court. The Ohio Supreme Court issued a decision that affirmed in part and reversed in part, and remanded back. The decision found the BTA’s decision to reduce the value for external obsolescence to be unreasonable and unlawful, and reversed it. The Supreme Court affirmed the BTA’s decision to reject Mr. Ramsland’s calculation of functional obsolescence.

The decision by the Ohio Supreme Court stated the following:

“If it is the real-property that is being valued, its valuation cannot be made to vary depending on the success or lack thereof of the businesses located on the property. Admittedly, the location of a property may influence the sales made by a merchant at that property. However, the merchant’s business practices may also influence sales. The business factors and the real-property factors must be separated when the real property is being valued for tax purposes.”

“The fallacy of using sales per square foot as a factor to determine value can be demonstrated by the following example:

Assume two identical anchor department store buildings in the same mall, operated by different owners. If one store has higher sales per square foot than the other, is the property housing the store with the lower sales worth less than the other building housing the store with higher sales? While the store with the higher sales per square foot may be worth more as a business, that consideration must be separated from a valuation of the real property. The two buildings in the hypothetical mall should be valued the same if they are identical.”

The decision also rejected the concept of using the projected sales per square foot method to calculate economic obsolescence as this approach would be a business valuation rather than one based on real property factors. Maxwell Ramsland Jr., MAI, an expert appraiser for the property owner, “…admitted that non-real estate factors, such as management and advertising, could affect sales of a department store.”

The decision also found fault with Ramsland’s calculation of functional obsolescence, which stated that the Dillard’s store had a super adequate level of store finish due to the “trade dress,” which a new buyer would not pay for. Ramsland’s method was to compare a cost estimate based on replacement value of the above average Dillard’s store to a cost estimate for a generic department store, with the difference supposedly equaling the functional obsolescence due to the superior trade dress of the Dillard’s store. The decision stated that this methodology was flawed as “… a potential buyer is not seeking a generic store but a department store at South Park Mall.” Also, the decision stated that there was no evidence that a buyer would change all of the trade dress upon a sale. Finally, the decision stated that Ramsland downgraded every component of building cost in his estimation of a generic store, not merely the trade dress, with no evidence that other components of the building were super adequate.

Should anyone want a copy of this decision, please contact the Committee Chair.

A New Vice Chair and a New Member of the Tax Court Committee!Jeff Johnson, SAMA, Assistant Stearns County Assessor, is the new Vice-Chair of the Tax Court Committee, and Nancy Gunderson, Assistant City Assessor of Moorhead, is a new member of the Tax Court Committee.



Preparing for the Minnesota Income Property Case Study Exam Workshop

Wri en by Stephen Behrenbrinker, SAMA, CAECity of St. Cloud AssessorMAAO 1st Vice PresidentMAAO - St. Cloud State University LiaisonMAAO Weeklong Course Coordinator

MAAO Course Reviews

Introduction to Assessment Laws and ProceduresIntroduction to Assessment Laws and Procedures was presented January 29 to February 2, 2007, at the Department of Revenue in St. Paul. The instructors for the course were Stephanie Nyhus and Gary Amundson, staff members of the Minnesota Department of Revenue. With 46 registrants for the course, we had a full class of students who were generally new to the assessment profession. MAAO provided complimentary calculators to all students to promote MAAO recognition and membership. Thank you MAAO members! MAAO also provided one scholarship to Chase Philippi, a recent St. Cloud State University (SCSU) Real Estate graduate. Buffet lunches were included in the registration fee. Students staying at the nearby Kelly Inn were provided complimentary shuttle service daily. The Department of Revenue staff again has updated the materials and exam to meet the 30-hour continuing education requirements. This course will be offered twice per year: once in the metro area and once in St. Cloud.

The Minnesota Department of Revenue allows the proceeds from this course to go back to MAAO to promote education program development. This is a great benefit to our organization financially, and the department is to be thanked for their contributions to assessor education!

The next offering of Introduction to Assessment Laws and Procedures is July 9 to July 13, 2007. It will be held on the SCSU campus. Information and registration is on the MAAO website.

On Monday March 12, 2007, 27 Minnesota assessors attended the “Preparing for the Minnesota Income Property Case Study Exam” workshop at the Department of Transportation Training Center in St. Cloud. Stephen Behrenbrinker, CAE, exam developer and grader, instructed the workshop. Most of the attendees who were in attendance are planning to take this exam in the coming months. Since this workshop is generally offered only once per year some attendees still need to complete some of the requirements before taking this eight-hour exam. Some attended for the six hours of continuing education credit. Since the Income Case Study exam process began in 2002, 43 Minnesota assessors have achieved the SAMA level of licensure by successfully completing this process. Emphasis of the workshop is on the income approach to valuation to assist the attendees in self study for the exam. The workshop student reference manual was updated this year and is available for purchase for $25 (per MAAO policy) for individuals that were unable to attend. If you have any questions or comments about the Minnesota Income Property Case Study Exam, please contact Stephen Behrenbrinker at 320-650-3352.

MAAO Scholarship winner Chase Philippi



Out of the PastWri en by Connie Erickson, SAMAYellow Medicine County AssessorEditorial Board Member

5 Years AgoRobert Wilson was the MAAO fearless leader. During his reign as President, the precious Virginia Cup disappeared, and the Minnesota Cup was created. President Wilson was the first proud recipient. Sandy Vold, Big Stone County Assessor, received the Senior Accredited Minnesota Assessor designation. Curt Pipenburg began working as an appraiser at the Woodbury branch in Washington County. Julie Roisen became the new Blue Earth County Assessor. Dave Johnson called it quits after 30-plus years of service to the profession. John Keefe, no stranger to the profession, filled the gap by Dave’s retirement.

10 Years AgoDisaster Strikes! As spring drew near, reports of serious flooding was a reality. Southern Minnesota and the Red River Valley battled the floodwaters for days. Followed by clean up and reassessments by County Offices. Vice President, Al Gore inspected the flood damage in the Moorhead area. The Commissioner of Revenue honored all flood volunteers at the Summer Seminars in St. Cloud. James Girard was the Commissioner of Revenue, and Louise Thureen was the MAAO President. Steve Kuha reported on a class-action lawsuits in progress relating to the preferred commercial class, and all counties in the state were mentioned. Richard Peterson began his new duties as a Regional Representative for the Department of Revenue. Tim Falkum became the new Meeker County Assessor, and Kathy Hillmer became the new Redwood County Assessor. Upon the retirement of Dale Halos, Rob Wagner became the new Polk County Assessor. Robert Johnson became the new Carlton County Assessor. Steve Baker, Brooklyn Center City Assessor, attained his CAE.

Steve Hacken accepted the position of Winona County Assessor. Glen Hahn, retired Fillmore County Deputy Assessor, passed away in May.

15 Years AgoVirgil Rapp was the MAAO President and Dorothy McClung was the Commissioner of Revenue. The NCRAAO Conference was held in Sioux Falls, South Dakota. Frances “Junie” Weisbrich retired from Stearns County; he was the county assessor for 12 of his 24 years with the county. Gary Grossinger was appointed the new Stearns County Assessor. Pat Valentine, Principal Appraiser in the Duluth Office, was recognized for “Individual Excellence” for his work in appraising commercial properties and for his efforts in reducing the number of Tax Court cases. Pat Erickson was promoted to the position of Willmar City Assessor. The Department of Revenue announced that Dale Lambrecht left the department to begin working with Strumstad and Associates, well known tax consultants in St. Paul. Lois Sumerfelt and Susie Lohse received their Accredited Minnesota Assessor designations.

20 Years AgoBill Coons was the MAAO President, and Tom Triplett was the Commissioner of Revenue. The property tax classification system was identified as the Minnesota Monster. Region 6 was featured in Equal Eyes. LeRoy Krahn retired from Martin County. Paul Knutson was appointed to the State Board of Assessors. Wayne Bendickson was the new Lake of the Woods County Assessor. Leonard Peterson’s sales ratio unit researched 160,000 to 180,000 CRVs

each year. WCMAP held their sixth annual workshop in Alexandria. Mike Wandemacher was officially appointed as the Director of Property Tax Review Division of the Department of Revenue.

30 Years AgoFarmland skyrockets in price! Martin County has two sales at $2,600 per acre. In the past three years, average Minnesota farmland prices have doubled. The State Board of Assessors determined that the “workbook” concept is an appropriate training device for the Short Course. The State Board of Assessors adopted a recommendation that all county and city assessors with populations over 30,000 be accredited by January 1, 1981. Fred Nuffer was the MAAO President.



In My Opinion...Wri en by Carol Schutz, SAMAChippewa County Assessor

CREP is a Four Letter Word

I received an email one day indicating that CREP or conservation easements are considered to be a “hot topic” with assessors across the state, and there were a couple of individuals who felt I may have an opinion about such programs. Well, frankly, I was a bit surprised. After all, most of those who know me, know that I have few opinions, and I typically won’t share my thoughts. But, having given it some thought, I felt it might be time to come out of my shell a bit.

First of all, what is CREP? It stands for Conservation Reserve Enhancement Program. The Minnesota River Valley was blessed to be part of the first round of CREP easements. It allowed property owners to remove their farmland from production and to be paid, in most situations, what was considered to be most handsomely at the time. A property owner received an upfront Reinvest in Minnesota (RIM) payment and would continue to receive an annual 15-year Conservation Reserve Program (CRP) payment. At the end of the contract, the land would be considered RIM. Most easements were perpetual.

The dilemma for me began almost out of the get go. I was perplexed as to how to value these conservation easements. In all the research that I had done prior to making a decision, the majority of the individuals who I spoke with felt that there should be little if any reduction in the market valuation as the farmers were being paid a CRP payment and need to certify their land as tillable on an annual basis until the end of the CRP contract. Now I didn’t necessarily agree with that as they were losing one of their bundles of rights, and I felt that the loss of use should be recognized in the market value, even though we didn’t have any sales

of this type of conservation easement yet. This became a well-talked-about topic at various region meetings and at the Department of Revenue. It became apparent that the issue was very divided and most felt strongly about their opinions.

Well, to make a long story short, I had a few property owners who didn’t agree with the method that I chose to value the easements, and they chose to take the issue to Tax Court. The Tax Court was also very perplexed by what to do with the valuation of the property. As a matter of fact, at a conference meeting a few months after the case was heard, Judge Perez said that there may need to be more than one case tried before a clear decision can be made on the issue. Now, well I didn’t necessarily agree with the outcome of the decision, Judge Perez did point out that the income stream should be considered in the valuation process. The county chose not to appeal as it would not have made fiscal sense – even though we felt there were some inconsistencies in the decision.

Ultimately, there have been a few things that have come to light and will hopefully change in the future. Minnesota Statutes, section 273.117 states that land subject to a conservation restriction or easement shall be entitled to a reduced valuation. When that statute was passed several years ago, that may have been the case. Today, I think the market is showing that we live in a different world. Conservation easements and marginal type land are selling for just as much as tillable land, and more in some instances. There is a demand for “nature” or land in a natural state. In my opinion, this statute is outdated and should be changed to “may be reduced.”

It is also my opinion, that many of the individuals who put their farms in this program are somewhat frustrated with themselves for doing so. They are seeing farmland selling for much higher than I think any of them imagined it could go, especially in such a short time frame. Unfortunately for them, that decision was perpetual in most instances.

It is also my opinion that if the market continues to show a great demand for these properties, that the price these conservation acres will bring on the open market may continue to rise. Does this mean we should continue to give them a reduction in value? I would say no. The land in this program should be valued as any other type of property…the market. I also think that we should be able to classify it at its use and not have it continue to receive the agricultural classification as Minnesota Statutes, section 273.12, subdivision 33 indicates.

I am hopeful that the legislature will review the suggestions made in the conservation easement report to be presented this year and perhaps act on them to clarify the direction assessors should be taking to provide a uniform and accurate assessment.

In my opinion, I have said enough, and I bet they won’t ask me again…as I got a bit windy. They should know better than to ask me what I think.



Let’s Get Acquainted with

Researched and Wri en by Marci Moreland, SAMACarlton County Chief Deputy Assessor

Editorial Board Member

Pam Lundgren

When I contacted Pam about doing a feature article on her for “Let’s Get Acquainted” in Equal Eyes, she said she would under one condition: no picture!!! She wants to be known as “the voice on the phone.”

I had difficulty with how to start writing this article. I know from first-hand experience that she is the most helpful, dedicated person when it comes to us assessors. I remember when my residential narrative passed, and I applied for my AMA license, along with my interview with the State Board of Assessors. About two weeks before my interview, Pam called me and said, “Marci, we have a problem. You have not taken the USPAP course.”

“Sure I did; I took it at the Summer Seminars once in St. Cloud,” I said.

“No, you have to take the 15-hour course,” she said.

Luckily for me, she did some research and found out that ProSource was giving the 15-hour course in New Brighton just five days before my interview. I hurried and signed up, took the course, passed (thank goodness), called her on my way home to tell her I passed, brought my certificate along with me to the interview and handed it to her. She calmed my nerves prior to the interview, and when it was all said and done, she followed me out and said, “You knocked their socks off.” Personally I didn’t think so; I was so nervous. But that is how Pam is. She makes you feel important and takes the time to put you at ease in sometimes

stressful situations. She always has a smile and encouraging words for each and every one of us. I am sure many of us have stories about Pam that we can share.

It is with great honor that I feature Pam Lundgren of the State Board of Assessors for the spring issue of Equal Eyes.

Pam’s official title is the program administrator for the Minnesota State Board of Assessors. She has held this position for 15 years. She has worked at the Department of Revenue for 25 years; she has been with the Property Tax Division for 20 of those years. For the remaining five years, she held various positions within the Department of Revenue.

When asked how she got into the assessment field, she says she was hijacked by Jerry Garski. She suspects his ultimate goal was to make her an assessor, but she had different plans. She says Jerry was great to work with. She shared with me a time when she pulled a joke on Jerry on April Fools’ Day. She gave him a phone number, and told him to call it and ask for Dee Lyon. Little did Jerry know that he was calling the zoo. When he asked for Dee Lyon, they replied, “Dee Lyon is busy right now; would you like to speak to Dee Tiger?” She says Jerry was kind of grumpy the rest of the day, but she got him good.

Some of our questions on the questionnaire that we ask assessors to complete prior to the interview did not apply to Pam, but she has a sense of humor. When asked how many

jurisdictions she is responsible for, she commented: “none, but I have a lot of assessors.” For the class(es) constituting the majority of her parcels, she commented: “I’ve got a homestead, does that count?”

She lives in Dakota County. Former MAAO President Bill Peterson is the County Assessor. She says that one day she’ll call him up and speak with him about issues. Be prepared Bill!!!

She said that the staff size of her department is “just one, me.” Deb Volkert, Pam’s supervisor and secretary-treasurer of the Board, spends about 10 percent of her time on Board functions while Pam spends 100 percent of her time on the Board of Assessors and assessors.

The Board of Assessors was created in 1971 when somebody told the Commissioner of Revenue a board was needed. When she started with the Board of Assessors 15 years ago, there were about 1,100 licensed assessors in Minnesota. Today, there are 977 total licensed assessors, which includes 212 SAMAs, 61 AMAs, 85 CMASs, and 575 CMAs. The remaining 44 are either on provisional status or record retention. She believes the decline in the number of assessors is due to computerization of assessing. Not as many assessors are needed to perform the functions, and also some counties have gone full county staffed, therefore, eliminating the need for local assessors.



I asked Pam if she could describe the changes she has experienced in the 15 years she has worked for the Board of Assessors. She said it was a tall order, but she came through with some of the changes that have taken place. Thankfully, she states, the differences between then and now are like night and day.

One of the big changes is the locations of the courses. Back in the early ’90s, most of the courses were held at the Highway Patrol Center in New Brighton. She attended Course A there and remembers that those were intense days – all that worry about the exams. However, some diversion was supplied by the gunfire from the target range. As anyone might guess, that noise gave way to some dark humor about what might happen if anyone failed the exam. Eventually, courses were moved to the Earle Brown Center on the University of Minnesota Campus. Scheduling around the State Fair gave some moments of concern, and the left-hand turns off Snelling Avenue could be a bit stressful. Today, MAAO has an agreement with St. Cloud State University, and courses are now held there.

Requirements changed dramatically after July 1, 2006, when the old weeklong Course B: Residential Appraisal became a two-week class. She feels the biggest change of all is the case study examination. For many years, assessors wrote demonstration narratives. During those years, assessors spoke of the time investment in producing that document. Many were able to work on narratives and form reports in the office, but the majority of assessors used their own time to write them. She states even though the case study examination has reduced the huge investment in time, the exams are eight hours of intense focus. The positive, she believes, is that there are more assessors now than ever before who are interested in achieving the AMA or SAMA designations.

I contacted Keith Albertsen, County Assessor of Douglas County and also the Chairman of the Board of Assessors,

and he was kind enough to share his comments about Pam:

“Pam is the point person for the Board. She handles all but the most problematic issues that come to the Board, and no one will try harder to help the assessor. Woe be to the assessor, however, that tries to ‘pull’ something. The ones who haven’t taken the required continuing education, and think they will get her to send their license renewal will find the best solution would have been to have taken the training when they should have. Pam is a dedicated individual and truly an asset to the Board and to the assessor.”

Gary Amundson, Regional Representative, who also is a member of the State Board of Assessors, commented about Pam as well:

“Pam is a really good cook. She makes treats for the State Board and caters to everyone’s needs and tastes. She likes cars, and particularly her Saturn. Pam is a free spirit and prides herself on being independent (I think she did quite a bit of remodeling work on her home). She will always tell you exactly what she thinks.”

Pam has been blissfully single for 17 years after 20 years of wedded blisters!! Again her humor kicks in when asked what her spouses’ name is—she says we can’t print what she calls him.

Pam is the proud mother of two sons. Patrick, age 35, who has two beautiful girls ages 4 and 6 (she calls them the wrecking crew, but she just adores them). Her second son, Mike, age 33, got married last year to her wonderful daughter-in-law, Mary. Their marriage added three more grandchildren to her family and a lot more fun. She comments: “I just love being a mom, mom-in-law, and a grandma!”

Her hobbies and activities are of seasonal nature and cover a lot of territory. She LOVES cars and refuses to drive anything with an automatic transmission. Her current vehicle is a turbocharged, five-speed (must be the Saturn Gary mentioned). It goes 0-60 in 6.5 seconds. She says that it is a lot of fun to drive,

and as of today, she has no speeding tickets (knock on wood). She spends a lot of time in the summer at vintage/classic car shows. The Back to the ’50s weekend at the State Fair Grounds is a highlight as are summer Friday nights in North St. Paul at car shows and some great Saturday evenings in Hastings for the same reason. She tries to take her grandkids to some of these functions as most are family friendly.

Pam really enjoys music and likes just about everything, but her favorites are the blues and classic rock. She also has a great collection of Broadway soundtracks.

On top of all of her other activities, she is into woodworking and building furniture. She has accumulated a number of tools and learned how to use each and every one of them, while still being able to keep all her fingers, she says. When speaking with her, she says she probably has more tools than some of the assessor’s out there.

She has been known to drop a line in the water now and then. She also cooks, bakes (never trust a skinny cook), crochets, knits and reads a lot (mostly history), but those are winter projects. When I asked her for an interesting fact about herself she said, “I’m a Green Bay Packer fan, and that’s probably enough said about that.”

Her future plans include retirement; it gets closer every day—it’s four years, eight months, and nine days away (as of February 21, 2007). These are the happy days now, but when she retires, she’ll be ecstatic. There are so many things to see, do, and share with her family. When she retires, she comments it will be so nice to have enough time to do it all and spoil her grandchildren in the process. She would like to travel a little, there’s a lot to see in this country. Having read about so much of it, seeing it firsthand will be great.

A memorable moment would be when she returned a call to a local assessor. He happened to be working on his roof at home, and his wife passed him the phone through the window.

continued page 15

Let’s Get Acqauinted...continued



When asked if there was anything she could change about the profession, she states she can’t change anything, but anything that changes will surely be in the minutes.

The biggest challenge in the assessment field is to get all of the assessors to get their license applications back to her by July 1.

Closing comments from Pam:

“I love what I do. If not, I’d have left long ago (and believe me, the thought crossed my mind several times). Talking with assessors or people interested in becoming assessors really is enjoyable.

In particular, it’s been great to watch the progression of assessors from CMA to AMA over the last few years. The case study examination has made accreditation and senior accreditation more accessible at a time when the profession is losing the most senior people to retirement. Assessors have a very tough job, and I have a lot of respect for them. The Board members are a wonderful group of people. They’re all very dedicated to making sure that the quality of assessor education in Minnesota is the best it can be. So, next time you find yourself struggling in a class or during an exam, thank a Board member.”

“I guess I can share my motto with all of you (at least the printable one). ‘This is what I do for a living. It’s not my life. Don’t take your work so seriously that you forget to have a life outside of your profession.’ ”

I have truly enjoyed this issue of Equal Eyes and Let’s Get Acquainted. Speaking with Pam and talking with her on the phone was truly an enjoyable time. She really has a sense of humor and such a great personality. My hat goes off to Pam, her dedication to the job, and her task at hand to keep all of us assessors in line and on our toes.

Legislative Commi ee News

The MAAO Legislative Committee is made up of representatives from all regions of Minnesota:

• Region 1: Tom Dybing; • Region 2: Dave Armstrong; • Region 3: Gary Grossinger; • Region 4: Marty Schmidt; • Region 5: Tom Houselog; • Region 6: Judy Thorstad; • Region 7: Bob Moe; • Region 8: Wayne Bendickson; and • Region 9: Tom May, Bill Effertz,

Gloria Pinke and Stephen Baker.

Steven Kuha chairs the committee, and Robert Vanasek is the legislative representative hired by MAAO to represent the membership concerns at the Capitol.

Each year, the committee, on behalf of the association, creates a position statement to be used during the legislative session. This legislative position statement is officially adopted by the Executive Board prior to our annual meeting each year. The official position statement is used as a guide during the legislative session.

We are currently in our second year using the new format of being represented by a paid consultant during the legislative session. While there is always a learning curve whenever we introduce ourselves to a new format and situation, it is agreed by most that our new system of being represented in this fashion is working quite well to the benefit of our membership.

During a busy legislative session, such as the one we are currently in, we need the ability to react quickly and be represented in a clear and concise manner. Having Rob Vanasek at the Capitol representing us on a daily basis, accomplishes this. In addition to his presence, our committee members alternate attendance during the latter part of the session. We make ourselves available to testify during committee hearings on bills of interest to our membership. We also spend a fair amount of time visiting with legislators in their offices in order to inform them of our position as it relates to their proposed legislation. It is fulfilling to see that

legislators are indeed interested in our input and our desire to be part of creating meaningful legislation.

As we are all aware, this session is specifically focusing on property tax relief legislation. It will be interesting to see what will develop with the new political agenda in St. Paul. The session is scheduled to end May 21.

Let’s Get Acqauinted...continued

Wri en by Steve Kuha, SAMACass County AssessorMAAO Legislative Commi ee Chair



Sustainanble HousingWri en by Mark Krupski, SAMA, CAEOlmsted County

Figure 1 Whittle double envelope cross section near east endMother Earth News, March/April 1982

We hear a lot of talk these days about sustainable housing, alternative energy sources, and hybrid automobiles. It is great that the conversation concerning these issues has increased. However, until sustainable housing becomes the norm, it is only conversation.

I grew up in the 1970s, and I recall the long gas lines of 1973 and 1979. President Nixon told us to turn our thermostats down to 68 degrees and drive 55 miles per hour. President Jimmy Carter wore cardigan sweaters in the White House and gave pseudo-FDR fireside chats on energy issues. The message was drive slower, turn down the thermostat, and save fuel. California began to experience water shortages, and slogans such as “if it’s yellow, let it mellow, and if it’s brown, flush it down” were coined. Treating wastewater has become a larger issue locally in Rochester, Minnesota; therefore, water-saving plumbing fixtures have become more commonplace. Southwestern cities such as Albuquerque, New Mexico, have offered rebates on water-saving faucets and plumbing fixtures.

In 1978, my father was 49 years old and was planning for his retirement years. He decided to build a passive solar house as a way to conserve energy and save money once he was on a more fixed income. The house he built in Brownfield, Maine was first built in Lake Tahoe, Nevada. It is what they called the “double envelope house” (see Figure 1). Another description of this passive solar home is “the house-within-a-house.” The home is south facing and is designed to allow a continuous airspace on both the south and north face walls. In my father’s home, the south face includes a green house and is separate from the interior part of the home. This is also referred to

as the heat chimney. Temperatures rise and this creates a natural convection of air which rises in the south, travels along the roof line, and settles through the north wall air space only to be circulated once again. The north exterior wall is 2”x6” construction, followed by a 12-inch airspace, then an interior 2”x4” wall. The attic has over 20 inches of insulation against the roof sheathing followed by airspace and then six inches of insulation above the interior ceiling. My father completed his passive solar home back in 1979 and retired in 1989. He and my mother have lived there in warmth and comfort ever since. He believes that he has saved quite a bit of money these past 27 years and has been heard to say that “the oil companies can go kiss my arm!”

Recently, MAAO Region 1 had the opportunity to tour a home under construction utilizing solar electric panels. (see Figure 2) This home is located in the City of Pine Island and is situated on the lot facing south. The solar panels collect electric energy and a “Fronius” DC converter transfers the DC to AC (see Figure 3). Excess electricity is then able to be sold on the power grid. The builder, Mr. Thompson, was quite gracious in inviting over 30 assessors to traipse through his home. Other energy-saving features of this home include insulated 2”x8” exterior walls and electric shutters, which can be closed once the sun sets to contain heat collected during the day (see Figure 4). The concept of “thermal mass” is embodied in the heavily insulated walls and roof, designed to prevent heat from escaping once the sun goes down.



Figure 5 Bamboo floorMother Earth News, October 17, 2006

The design of Mr. Thompson’s home is more traditional than that of the “envelope home,” and therefore, conforms better to other homes in the neighborhood and perhaps has a greater market appeal. Chances are that Mr. Thompson’s design provides for a more even flow of heat than that of the envelope home designed in the 1970s. Solar home designs have improved over the past 30 years. Standard super-insulated homes perform almost as well as envelope homes, but it costs more to build envelope homes. Another concern with envelope homes is the potential for extreme fire damage due to the airflow. Anyone building an envelope home should consider installing a sprinkler system.

Bamboo flooring has become increasing popular in recent years. Bamboo can be harvested in three to five years in comparison to more traditional wood flooring of comparable hardness which take 60 years to mature. Bamboo flooring is as hard or harder than some oak floors and quite

durable too. Installation of bamboo flooring is similar to hardwoods and the beauty is…well, in the eyes of the beholder.

Lastly, I’d like to touch on water-saving toilets. The amount of water used to flush toilets has gone from seven gallons to 1.6 gallons on homes built in 1994 or later (see Figure 6). According to Mother Earth News, August/September 2006 (“Half the Water, Twice the Flush!” by Steve Maxwell), use of the low-flow 1.6-gallon toilet saves the average household 26,528 gallons of water annually. In a city the size of Rochester, Minnesota that means about 849,216,000 gallons of water per year just for residential water use.

There are so many facets to sustainable housing that this article will not begin to cover them all adequately. My only aim is to bring the subject up and continue the conversation in the hope that more people consider solar energy, conserve water, and use environmentally-friendly building materials.

Figure 6Mother Earth News, September/August 2006

Figure 2

Figure 3

Figure 4



GE

BREAKING NEWS FROM THE MAAO SHOPAt Summer Seminars the following items will be for sale through the MAAO Shop:

The Membership and Awards Committee looks forward to seeing each and every one of you and being able to show you the merchandise!

For every purchase of $15 or more, you will also receive a mouse pad imprinted with the MAAO logo and website address.

Also available will be pocket jotter and pen sets, Polo shirts for both men and women, calculating rulers, cookbooks, calculators and zippered organizer pad folios.

Jersey Hoodies for the women with MAAO embroidered on the shoulder.

Mini Emergency kits for the car, home or offi ce.Top Flite XI distance golf balls

and tees imprinted with the MAAO logo.

Long sleeve Pima Jersey Mock Shirt (similar to the one made famous by Tiger Woods).



Got Gas?E-85: The Gas of the Future?

Written by Carol Schutz, SAMA

Chippewa County Assessor

What is Ethanol? Ethanol is a high octane, liquid, domestic and renewable fuel, produced by the fermentation of plant sugars. In the U.S., ethanol is typically produced from corn and other grain products, although in the future, it may be economically produced from other biomass resources such as agricultural and forestry wastes or specially grown energy crops.

History of EthanolIn 1826, an engine was developed that ran on ethanol and turpentine. In 1862, the Union Congress put a $2 per gallon excise tax on ethanol to help pay for the Civil War. After the tax was imposed, ethanol was too costly to be used this way. In 1896, Henry Ford built his first automobile to run on pure ethanol. In 1906, the Congress removed the tax on ethanol, making ethanol an alternative to gasoline as a motor fuel. A couple of years later, Henry Ford produced the Model T. As a flexible fuel vehicle, it could run on ethanol, gasoline, or a combination of the two.

During World War I, the need for fuel drove up the demand for ethanol. In the 1920s, gasoline became the motor fuel of choice, however, Standard Oil began adding ethanol to increase octane and reduce engine knocking. Once again, the 1940s wartime increased the demand for fuel, but most of the increased demand for ethanol was for non-fuel wartime uses. After the war, the use of ethanol was drastically reduced.

In the 1970s gasohol was defined as a blend of gasoline with at least 10 percent alcohol by volume. The Federal excise tax was 40 cents per gallon. Marketing of commercial alcohol-blended fuels began. In the 1980s there were fewer than 10 ethanol facilities producing approximately 50 million gallons of ethanol per year. Congress then enacted a series of tax benefits to ethanol producers and blenders, which in turn encouraged the growth of ethanol production.

By 1984, the number of ethanol plants peaked at 163. The tax reform act increased the subsidy to 60 cents per gallon. In 1985, many of the ethanol producers went out of business, despite the subsidies. Only 74 of the 163 commercial plants remained in operation by the end of 1985, producing 595 million gallons a year. The reason the producers went out of business was the very low price producers could receive for their ethanol, even with the subsidy, since the price of crude oil and gasoline were so low.

In the 1990s, The Energy Policy Act provided for two additional gasoline blends: 7.7 percent and 5.7 percent ethanol. It also provided for tax deductions for purchasing or converting a vehicle that could use an alternative fuel. The excise tax exemption and income tax credits were extended. By 1997, major United States auto manufacturers began mass-producing flexible-fueled vehicle models capable of operating on E-85.



Most of these autos used only gasoline because of the scarcity of E-85 stations. By the end of the 1999, some States began to pass bans on Methyl Tertiary Butyl Ether (MTBE-made from natural gas and petroleum) use in motor gasoline, because traces of it were showing up in drinking water sources, presumably from leaking gasoline storage tanks. By the year 2000, the EPA recommended that MTBE should be phased out nationally. By 2003, a total of 18 states had passed legislation to ban MTBE, and the ethanol subsidy was dropped to 52 cents a gallon.

A closer look at a basic dry mill processStep One: Grain Receiving, Storing and MillingThe ethanol plant receives corn by rail and by truck, at which point it is inspected, weighed, and unloaded in a receiving building and then transferred into storage bins. On the grain receiving system, a dust collection system limits particulate emissions. Truck scales and a rail car scale weigh delivered corn. Corn unloading and storage systems can include independent unloading legs and concrete or steel storage bins. Many of the ethanol plants do not have a significant amount of grain storage on site. The common belief is that the grain elevators are already set up for that, so why recreate the wheel. From its storage location, corn is conveyed to scalpers to remove debris before it is transferred to hammer mills or grinders where it is ground into a flour, or “meal.”

Step Two: Conversion and Liquefaction, Fermentation and Evaporation SystemsThe meal is conveyed into slurry tanks for enzymatic processing. The meal is mixed with water and the first of two enzyme doses in the cook process. The Alpha-amylase enzyme helps keep the mash in a liquid form for pump-ability purposes at this point. The now-called mash is transferred from the slurry through the hydro heater at 225 degrees Fahrenheit, which reduces bacterial build up, then into two more cook tanks, from there into liquefaction. This is where the second dose of Alpha-amylase is added to the mash. This mixture then has a hold time of approximately 2.5 hours at 185 degrees Fahrenheit. What this time allows for is the initial breakdown of the flour/meal into what are called dextrin’s (short chains of glucose molecules).

The mash from the liquefaction tanks is then cooled, and a second enzyme called gluco-amylase is added. This enzyme breaks down the starches in the mash into simpler molecules of sugars. The type of sugar created from this process is called dextrose/glucose.

This cooked mash continues through liquefaction tanks and is pumped into one of the fermenters, where yeast is added to ferment the sugars. Fermentation breaks down the sugar molecules into ethanol, a liquid, and carbon dioxide, a gas.

Granite Falls Energy utilizes batch fermentation. This is where the mash stays in one fermentation tank for approximately two to 2.5 days to allow for complete fermentation. When the fermentation process is complete, the “mash” is now referred to as “beer.” It is stored in a beer well before transfer to the next stage.

Step Three: Distillation and Molecular SieveThe beer is between 10 percent and 15 percent alcohol by

volume and is not completely liquid. It also contains all the solids from the original feedstock (corn) and recycled process water. It is pumped from the beer well into a three-column distillation system, which removes the alcohol from the beer by distillation. Basically, distillation utilizes the differences in the evaporating points of ethanol and water. Alcohol has a boiling (or evaporation) point of 178.4 degrees Fahrenheit, so as long as the temperature of the columns ranges above that temperature and below 212 degrees Fahrenheit (the boiling point of water), the alcohol in a gaseous form will rise to the top of the distillation column, where the gas is cooled to below 178 degrees Fahrenheit. This causes the gas to condense back to liquid form, and it contains a much higher percentage of ethanol than the original beer. This liquid condensate is then passed to the next distillation column in the series, where the process is repeated. By the time the product reaches the final distillation column, it is 95 percent ethanol or 190 proof.

The alcohol is then transported through a molecular sieve system, which removes any remaining water that was not eliminated in distillation to produce 200-proof anhydrous ethanol.



The Tax and Trade Bureau requires any alcohol used for fuel to be denatured or undrinkable. To render the ethanol unfit for human consumption, 2 percent to 5 percent gasoline is added to the ethanol.

Step Four: Liquid—Solid Separation SystemThe residue from distillation, called whole stillage, is pumped from the bottom of the first distillation column in the series, to the co-product processing area. The whole-stillage (the solids that remain after distillation) is sent through a centrifuge to remove excess liquid. This works much like the spin cycle of a washing machine. The liquid that is separated out is recycled back into the process to be used again in the process as either syrup or cook water. The remaining solids are referred to as “distillers grains.” Wet distillers grains (WDG) are transferred directly from the centrifuge to a wet cake pad, where they are transferred primarily to local feedlots and dairies for use as a cattle ration. The solids that exit the centrifuges, known as “wet cake,” are conveyed to the wet cake storage pad or the gas-fired rotary dryer for removal of residual water. Syrup is added to the wet cake as it enters the dryer, where moisture is removed. The end result of the process is the production of dried distillers grains with solubles (DDGS) and is a high protein feed ingredient for cattle, swine, poultry, fish, and has been researched for human consumption. It has a significantly longer shelf life than WDG.

Step Five: Product StorageFinal storage tanks hold the denatured ethanol product prior to being transferred to loading facilities for truck and rail car transportation. The Granite Falls Ethanol Plant has two

775,000-gallon final storage tanks as well as two 190-proof tanks of 100,000 gallons each made of carbon steel with a floating roof. The floating roof helps to keep the vapor out if the tank is not full. It traps the vapor in the product. From start to finish, the total process is approximately 55 to 60 hours to convert the corn into DDGS.

Ethanol Plants run year round, 24 hours a day but must be shut down at least twice a year for maintenance. There are so many moving parts in the plant that a lot could go wrong.

Ethanol ProductsThe two mill processes (“wet” and “dry”) give you different types of products. In addition to ethanol, the wet mill processing plant will produce corn gluten meal (which can be used as a natural herbicide or as a high protein supplement in



animal feeds; corn gluten feed (also used as animal feeds); corn germ meal; corn oil; carbon dioxide (CO

2 for soft drinks or dried

ice); and high fructose corn syrup. Wet mill plants also cost substantially more to build and have higher operating costs than dry mill processing plants.

The dry mill processing plants are easier and simpler to build and run. They will typically only sell ethanol and distillers dried grains for animal feed. Some dry mill plants also capture and sell CO

2 as a byproduct, but most do not.

The list of ethanol products will continue to grow as research expands. A prime example is Shakers Vodka which comes out of the Benson plant.

Benefits of E-85It is a renewalable biofuel designed for use in Flexible Fuel Vehicles. When the corn is processed into ethanol, the energy of the sun is converted to ethanol. The following season, a new crop is planted, and more fuel and energy are harvested. Compare this to the production of crude oil buried deep within the earth’s core. The oil we’re burning took hundreds of millions of years to form. Once extracted from the ground, the oil is not renewed…at least for another couple hundred million or so years.

E-85 keeps your fuel system clean because it burns cleaner than regular gas or diesel. E-85 has the highest octane of any commercially available automotive fuel at more than 100.

When burned, fossil fuels release carbon, once locked deep within the earth’s core, into the atmosphere. Science points to these releases as one of the leading causes of global warming.

Ethanol use provides benefits to the entire nation. The Energy Information Administration (EIA) forecasts the nation’s oil consumption will grow 44 percent between 2000 and 2025. Over this same time period, our dependence on imports will grow from 54 percent to 70 percent.

In addition to national benefits, ethanol production contributes to economic growth in rural communities across the heartland of our nation. The ethanol industry supported the creation of more than 147,000 jobs in all sectors of the U.S. economy.

According to the U.S. Department of Agriculture (USDA), ethanol production adds 25-50 cents to the value of a bushel of corn. This increased value of the corn lowers federal farm program costs. In 2004, the USDA estimates ethanol production reduced farm program cost by $3.2 billion.

Property ValuationEvery ethanol plant takes millions of dollars to construct and yet only a small portion of that is taxable. That is because most of the cost comes from equipment, machinery, and tanks that are used in the ethanol process. Many of the ethanol plants that

have recently been constructed, or in the process of construction, will fall under the Job Opportunity Building Zone program or local option abatement.

Still in the Future – Cellulose There has yet to be a commercial plant using cellulose from agricultural or municipal wastes as a feedstock, instead of more traditional feedstocks. The ethanol from the cellulose process is complex and costly and is still currently in the research and development stage. The extremely ambitious world of Fagen Engineering, Granite Falls, which currently is building 24 of the 36 ethanol plants now under construction in the United States very likely will be designing and building the first cellulosic ethanol plant in America also. “We don’t know what it will cost, how big it will be, where we will build it…but we do intend to be the first,” said Fagen in the September 19, 2006 edition of AgMail Update.

Quick Ethanol Facts - One acre of corn can produce enough ethanol to run a car

for some 72,000 miles on E-10 unleaded.- For every barrel of ethanol produced, 1.2 barrels of

petroleum are displaced.- One bushel of corn yields about 2.8 gallons of ethanol.- A typical 40-million-gallon ethanol plant creates 32

full-time jobs and generates significant tax revenue for a community.

- Ethanol reduces carbon monoxide emissions by as much as 30 percent.

- Ethanol is biodegradable and does not contaminate water.- Ethanol can be produced from a number of different

feedstocks including paper and agricultural waste.- By-products from the ethanol process include carbon

dioxide (which is sold to pop companies), high protein lick blocks for cattle, corn syrup, corn germ meal, corn oil, and dry ice.

Information Sources: Doug Reisdorfer, Plant Manager, Granite Falls Energy, LLC; www.granitefallsenergy.com; www.eia.doe.gov; www.mdac.state.ms.us; www.ethanolrfa.org; www.ethanolfacts.com; www.energy.seekingalpha.com; September 2006 AgMail update.



History FestCelebration at the Jack McGowan Farm

Wri en by Mark Manderfeld Blue Earth County

Many local school children have visited the farm site where the Le Sueur River empties into the Blue Earth River. This site is the location of the Jack McGowan Farm which hosts an annual History Fest celebration. Here the children get to re-enact periods in history. The History Fest and its buildings are a result of McGowan’s creativity and craftsmanship. Jack is a “kid at heart” and tirelessly dedicates his time and resources to help children and adults widen their horizons.

This article will introduce you to the person responsible for starting and maintaining History Fest for over 10 years. It will also describe the natural setting that is home for a children’s history lesson. A log cabin, in particular, that was handcrafted over the course of six months from recycled materials is the focal point of the site. Finally, the article will take a look at some of the other buildings and tools used to help children learn and “playfully preserve history.”

Jack McGowan has been a local businessman since 1960 when he took over the family business at age 19. McGowan Water was started by his father and is currently run by one of his sons. He purchased the farm in 1974, and since nearly the beginning, has hosted numerous community events including weddings, school activities, and musical festivals. Jack, a true Irishman, follows his personal motto, “I’m not going to amount to much, so I might as well have a little fun.” His farm site is proof that he lives by this motto.

The Jack McGowan Farm is in Southbend Township, which is located just south and west of Mankato in Blue Earth County. This site consists of nearly 20 acres of slightly wooded areas and flat pasture lands. The Blue Earth River runs along the north side of the parcel while the Le Sueur River abuts the south side. A leprechaun points the way to the farm site for all of the History Fest attendees. This is the first sign of the playfulness in store for visitors while at the McGowan Farm.

History Fest is an annual event that began in 1995 as a renaissance festival for one local school and has grown from there. It is now run by a local, non-profit organization. The fest is held the second weekend in October, with the first two days reserved for local school children, and the final day open to the public. Approximately 700 elementary students attend each day of the fest. Many of these students return with their family on the third day because there are so many activities to enjoy.



The History Fest is a hands-on academic and historical learning experience with many activities for students and adults. These include: belly dancing, fire-eating, cannon shooting, tomahawk throwing, wood carving, musicians, old-time games, coin making, and a giant catapult. The catapult is a highlight for many students, and it throws 35- to 40-pound rocks an average of 150 yards while reaching heights of 200 feet. Jack built this contraption without plans and enjoys letting the kids help release the rocks into the river.

Many volunteers and actors come together to put on the History Fest. Over 100 people work during the event to re-enact, present, and entertain. The History Fest does hire some professionals from all over the state for the more dangerous activities such as fire-eating and cannon shooting. Other volunteers staff booths and help manage the students.

Even though there are numerous activities, the centerpieces are the catapult and the newly constructed cabin. This cabin was built resourcefully from used materials by Jack and a crew of young adults fulfilling their community service requirements as part of the county’s Community Corrections program. These workers often had no construction experience and were taught throughout the building process. Even the community service supervisor learned along the way. Construction of the cabin began in the Spring of 2005 and lasted roughly six months. Jack paid for all materials that were not donated and also provided a meal to the crews while they worked during the day.

The main components of the cabin, the logs, are 45 recycled telephone poles from the City of St. Peter. Jack heard the city was working on a project to bury all utility lines, so he asked for the existing poles. He tried to haul them himself, but it turns out 40-foot poles don’t travel too well down Highway 169. After struggling through the first load, Jack had a local landscaping company help move the rest.

Once on site, Jack and his crew began construction of the walls by cutting the poles to length. The cabin is 24 feet wide by 30 feet long. He scribed the bottoms to ensure a tight fit and notched the ends to secure the corners. This was a time-consuming process; Jack spent a whole day working on one

particularly difficult pole. The windows, also recycled from other projects, were made larger than originally planned in order to get the sidewalls to maximum height. The cabin was built with settlement in mind. For example, the trim around the doors and windows is adjustable for varying heights. Adjustments have already been made even though the cabin is only a year old. Each course has settled about 3/8 of an inch on average, resulting in approximately 3.5 inches of settlement. The cabin is capped with a new metal roof and has two open porches, one with a homemade swing with a view of the river.

The interior of the cabin is also constructed from mostly recycled building materials and other antiques Jack has acquired. It has a wood floor and an eight-foot-deep by 24-foot-wide loft area. The building has a knotty pine ceiling made from new materials. The cabin has electrical service, but the heating source is a homemade wood stove made by Jack himself. He has added a Southbend brand wood-burning cooking stove that is circa 1920.

This stove provides the hot meals to the work crew—although they found it difficult to use. It took some practice for them to get an even flame; even they got a history lesson while working. To provide lighting, Jack created a historical-looking chandelier with 18 kerosene lanterns and a mirror to reflect the light. Kerosene lanterns are also used as light sources in other buildings on the farm. Jack has added a piano he inherited from the local American Legion club for entertainment.



The cabin is located about 175 feet from the river and is one of the main buildings used for History Fest. Other buildings include a 10-foot by 24-foot “Hobbit Hut” used for food demonstrations (a buffalo meat vendor), and a 24-foot by 40-foot picnic shelter that was moved onsite from Minneopa State Park, located a few miles north of the farm. The shelter was purchased for $51. It was dismantled, moved, and reassembled by a work crew in four days.

The History Fest expands every year, and next year’s site is going to be reconfigured. The brush in the heavier wooded area adjacent to the river is being cleared for the activities and demonstrations. This will alleviate some parking issues that have resulted from the growth in attendance. The organizers plan to keep this event around for years to come. They have already started hosting children of past visitors to the farm.

History Fest is the main attraction on the farm site, but it is far from the only one. The site has hosted private weddings and other gatherings throughout the year. Jack allows these people and groups to use the outbuildings at no cost. This helps him keep insurance expenses low because these people are “guests” on the farm. Annually, there are approximately 14,000 visitors, including the History Fest participants.

The farm site does host one annual event as a fundraiser for History Fest. The Solstice, a music festival, is held on Father’s Day weekend and helps alleviate the expenses for History Fest, which cost about $8,000 to $10,000 this past year. The Solstice raised approximately $5,000, leaving the remainder to be covered by other donations and Jack’s generosity.

Most local school children in grades four through six know they will be visiting the McGowan Farm during the school year for a hands-on history lesson. The repeat visitors know that, after traveling along a scenic winding gravel road down to the farm, they will have a full day of excitement ahead of them. They know this road takes them to a place where one man’s creativity, craftsmanship, and ingenuity allow them to widen their horizons.

Because of its unique location where the Le Sueur River empties into the Blue Earth River, the site is ideal for a nature-based historical lesson. During the students’ day here, they live out a different period in time by firing a catapult and living out life in a handcrafted log cabin made from recycled materials. The cabin was built by Jack McGowan and a supervised crew fulfilling a community service requirement. It is a result of Jack’s resourcefulness and dedication to helping children. One Irishman, a “kid at heart,” has allowed children to visit here and “playfully preserve history.”

Author’s Note: Information for this article and more information on History Fest and other activities at the Jack McGowan Farm are available at www.historyfest.com.



2007 Professional Development Programs in ASSESSMENT and APPRAISAL

Sponsored by the:

Minnesota Association of Assessing Officers (MAAO)Minnesota Department of Revenue

Minnesota State Board of Assessors, andThe Center for Continuing Studies at St. Cloud State University



Registration Information Available at:• www.stcloudstate.edu/continuingstudies/customized/maao.asp• www.mnmaao.org

Expectation for StudentsThese courses are comparable to college-level courses. Students should come to class prepared to participate in lectures, take extensive notes, read all required materials, and complete necessary homework.

Registration InformationPlease use the attached form to register. Registrations and course fees must be received by the SCSU Center for Continuing Studies at least one week prior to the course. If you have questions about registration, contact Steve Behrenbrinker at 320-650-3352 or e-mail [email protected].

Cancellation Policy A refund, less a $30 administrative fee, will be issued for cancellations received by the Center for Continuing Studies at least five business days prior to the start of a course.Registrants who fail to attend or cancel prior to the cancellation deadline are responsible for the entire fee. The Center for Continuing Studies reserves the right to cancel a course if necessary, and will provide a full refund.

Location and FacilitiesCourses will be held at the location identified in the Course Information section.

Confirmation notice, directions and parking information will be emailed to each participant the week prior to each course.

To ensure full participation in this workshop, please inform us of any dietary or physical challenges which should be addressed prior to your arrival. Contact Gail Ruhland or Charlotte Kastanek at 320-308-3081 if you have questions.

Hotel AccommodationsHotel information can be found on the MAAO website: www.mnmaao.org. A block of rooms has been reserved at special rates at the following locations:

• St. Cloud, MN: Downtown Best Western Kelly Inn, 320-253-0606. • Plymouth, MN: Best Western Kelly Inn, 763-553-1600.

Please call hotels directly for reservations. When making a reservation, be sure to indicate that you will be attending a SCSU-MAAO course.



Time ScheduleParticipants should check in at 8:00 a.m. Monday morning. Sessions will be held from 8:30 a.m. to 4:30 p.m., Monday through Thursday. Friday morning will begin at 8:30 a.m. and include a time for review and course examination. The class will end by 1:00 p.m. Friday. Each course includes a total of 30 hours of classroom instruction, not including examinations.

Textbook and Calculators The required textbooks can be ordered on the registration form and picked up on Monday morning, or can be purchased by participants individually prior to the class. A noiseless, battery-operated calculator is required for all courses.

Continuing Education informationThe Minnesota Board of Assessors grants 30 hours of Continuing Education for those participating in this entire program. Hours are granted based upon your participation in an organized continuing education experience under responsible sponsorship, capable direction, and qualified instruction.

NOTE: Exams are required for licensure purposes. However, participants can elect not to take exams, and still receive continuing education credit.

Dan Franklin Memorial Scholarship FundScholarships are available through MAAO’s Dan Franklin Memorial Scholarship Fund for individuals seeking a career in the Real Estate/Assessment field. Scholarship awards are available for the following four courses: Assessment Laws and Procedures, Appraisal Principles, Residential Appraisal and Mass Appraisal. Applicants must demonstrate financial need and submit a completed application form. Scholarship information, including an on-line application, is available at: http://www.mnmaao.org/scholarship.

For Further InformationIf you would like more information or have questions, please call Steve Behrenbrinker at 320-650-3352 ([email protected]) or Gail Ruhland at 320-308-3081 ([email protected]).

St. Cloud State University values diversity of all kinds, including but not limited to race, religion and ethnicity (full statement at http://bulletin.stcloudstate.edu/ugb/generalinfo/ nondiscrimination.asp). TTY 1-800-627-3529. SCSU is an affirmative action / equal opportunity educator and employer. This material can be made available in an alternative format. Contact the Center for Continuing Studies at 320-308-3081.



2007 Professional Development Programs in ASSESSMENT and APPRAISAL

These courses are sponsored by the MAAO, SCSU and the Minnesota State Board of Assessors and meet the educational requirements as established for the four levels of licensure for Minnesota assessors. For detailed information on the Minnesota

Assessor Education and Licensing Program contact the Minnesota State Board of Assessors at 651-556-6086.

2OO7 Course ScheduleCourse A: Assessment Laws and Procedures July 9-13*Appraisal Principles July 16-20*Residential Appraisal Procedures July 30-August 3*Mass Appraisal Basics August 20-24*IAAO 102 – Income Approach October 8-12*IAAO 400 – Assessment Administration October 22-26*IAAO 311 – Residential Modeling Concepts October 29-November 2*These courses have been approved by the Department of Commerce for pre-licensing and continuing education credit.

Course InformationCourse A: Introduction to Assessment Laws and Procedures July 9-13 An introductory course dealing with the assessment field in Minnesota. In this 30-hour course participants will learn about property tax laws in Minnesota, real estate law, and assessment procedures. This course is designed for individuals who are just beginning their study of the assessing field, but also can serve as a review for persons currently working in assessment.

Instructors: Minnesota Department of Revenue Staff Textbook: None Course Fee: $375Location: This course will be held at the Atwood Center at SCSU. The closest hotel to the campus is the downtown St. Cloud

Best Western Kelly Inn.

Appraisal PrinciplesJuly 16-20This 30-hour course introduces participants to real estate practices and basic appraisal principles. This course is the basic foundation for other appraisal courses.

Together, Appraisal Principles and Residential Appraisal Procedures are a State Board of Assessors approved alternative to Course B which is no longer offered.

Instructor: Steven P. Mooney Ph.D., Chair of Finance, Insurance andReal Estate Department, Holder of the MN Chair in Real Estate,St. Cloud State University

Textbook: Appraisal Institute; Appraising Residential Properties, 3rd EditionCourse Fee: $375Location: This course will be held at the Engineering and Computing Center at SCSU. The closest hotel to the campus is the

downtown St. Cloud Best Western Kelly Inn

Residential Appraisal ProceduresJuly 30-August 3This 30-hour course introduces participants to basic appraisal procedures for the evaluation of residential properties. Emphasis will be on the three approaches to value and the valuation process through lecture and work problems.

This course, together with Appraisal Principles is a State Board of Assessors alternative to Course B which is no longer offered.

Instructor: Steven P. Mooney Ph.D., Chair of Finance, Insurance and Real Estate Department, Holder of the MN Chair in Real Estate, St. Cloud State University

Textbook: Appraisal Institute; Appraising Residential Properties, 3rd Edition Course Fee: $375Location: This course will be held at the Atwood Center at SCSU. The closest hotel to the campus is the downtown St. Cloud




Mass Appraisal Basics August 20-24This 30-hour course introduces participants to the mass appraisal process for assessment purposes. Emphasis is on review of the three approaches to value, and applications of mass appraisal techniques with the use of sales ratio studies and statistical measures. Practical applications will be demonstrated by in-depth case studies of residential properties.

Instructors: Stephen Behrenbrinker, CAE and Steven Bruggeman, SAMATextbook: IAAO Mass Appraisal of Real Property Required: Calculator with Square Root Function Course Fee: $375Location: This course will be held at the Atwood Center at SCSU. The closest hotel to the campus is the downtown St. Cloud


IAAO Course 102: Income Approach to Valuation October 8-12This 30-hour course covers the theory and techniques of estimating value by the income, or capitalized earnings, approach. The material includes selection of capitalization rates, analysis of income and expenses to estimate operating income, and capitalization methods and techniques. This course also covers rental units of comparison, as well as real estate finance and investment.

Instructors: Stephen Behrenbrinker, CAETextbook: IAAO Property Appraisal & Assessment AdministrationCourse Fee: $475

Location: Best Western Kelly Inn, Plymouth, MN (intersection of I-494 and Hwy 55)

IAAO Course 400: Assessment Administration October 22-26Course 400 covers administrative concepts and procedures that can produce greater efficiency in the modern assessment office. In this 30-hour course participants will explore the key subsystems of an organization and how to operate them more effectively. Also included is the manager’s role within an assessment organization: the processes of planning, directing, coordinating, organizing, budgeting, and evaluating toward the better utilization of human and physical resources. Topics include information systems, reappraisal, setting goals and objectives, maintenance, appeals, data processing, public relations, personnel, budgeting, report reviews, ratio studies, evaluations and standards of practice.

Instructors: Rick Stuart, CAE; Topeka, KSTextbook: IAAO Property Appraisal & Assessment AdministrationCourse Fee: $475Location: Best Western Kelly Inn, Plymouth, MN (intersection of I-494 and Hwy 55)

IAAO Course 311: Residential Modeling Concepts October 29-November 2Course 311 presents a detailed study of the mass appraisal process as applied to residential property. Topics covered in this 30-hour course include a comparison of single-property appraisal and mass appraisal, the major steps in the mass appraisal process, data requirements, market analysis application of the approaches to value, use of sales ratio studies, and valuation review techniques.

Instructors: Michael Ireland, CAE; Bloomington, ILTextbook: IAAO Property Appraisal & Assessment AdministrationCourse Fee: $475

Location: Best Western Kelly Inn, Plymouth, MN (intersection of I-494 and Hwy 55)



Registration Form

2007 Programs in ASSESSMENT and APPRAISAL Please print or type_________________________________________ _________________________Name (First) (MI) (Last)

_________________________________________ _________________________Company Title / Position

_________________________________________ _________________________E-mail

_________________________________________ _________________________Company Address

_________________________________________ _________________________Company City Company State Company Zip Code

_________________________________________ _________________________Company Phone Company Fax

_________________________________________ _________________________Soc. Sec. # (last 4 digits) Assessor. Lic. # Birth Date MM/DD/YYYY (for CEUs / transcript purposes only) The information on this form is private data, used to register you, send materials and process payments. Name, address, and payment method are required.

Please register me for the following course(s)� Course A, Assessment Law July 9-13 Course Fee: $375.00� Appraisal Principles July 16-20 Course Fee: $375.00� Residential Appraisal Procedures July 30-August 3 Course Fee: $375.00� Mass Appraisal Basics August 20-24 Course Fee: $375.00� IAAO Course 102 October 8-12 Course Fee: $475.00� IAAO Course 400 October 22-26 Course Fee: $475.00� IAAO Course 311 Oct 29-Nov 2 Course Fee: $475.00

Please note: Registrations received the day of or during the week prior to the event will be charged a $25 late fee.

Text: Appraisal Institute; Appraising Residential Properties, 3rd Ed. $50.00 Text: IAAO Property Appraisal & Assessment Administration $50.00 Text: IAAO Mass Appraisal of Real Property $50.00

Total Submitted $_______ Payment information � I enclose a check or money order payable to the SCSU.� I enclose a purchase order in payment of my fees.� I authorize payment on my credit card: ___ VISA ___ MasterCard

Card number: ____________________________________________ ______ Exp. Date: ___________________________

_________________________________________ _________________________Name as it appears on your credit card bill

_________________________________________ _________________________Address as it appears on your credit card bill

City ______________________ State ______________ Zip Code___________________

Total Charge is: $:____________ Authorized signature:_____________________________________________

Send registration form by mail or e-mail:

Mail: St. Cloud State University E-Mail: [email protected]: Gail Ruhland, CCS Fax: 320-308-5041720 Fourth Avenue South Phone: 320-308-4723 (Charlotte Kastanek)St. Cloud, MN 56301-4498



MAAOProfessional Development Advisor

Information

The IAAO-MAAO PDA Report

The IAAO-MAAO Professional Development Advisors (PDAs) are committed to assisting assessors with their personal professional development.

What does that mean? It means that it must be a personal commitment on your part to do more than what is required. Professional development means achieving a professional designation from IAAO.

Too much work? Too expensive? Yes, it is expensive, and it does require additional efforts on your part, but extra efforts provide extra rewards in the long term.

Who will help? Your IAAO-MAAO PDAs will assist you along the way.

How do I get started? The following is a summary of the IAAO Residential Evaluation Specialist (RES) track. It outlines the courses, exams, and costs related to achieving this designation, which is the most doable for most assessors. We would like to get a group of assessors (that means you) to commit to this track, and our committee will work diligently with this group to get the courses, course challenge materials, exam preparation materials, and whatever you need, to achieve this goal in a two- to three-year period. MAAO plans on offering IAAO 300 and IAAO 311 in 2007. So discuss this with your supervisor, and your budget planner at home, and contact one of the PDAs to let them know you want to get on the RES fast track!

IAAO Residential Evaluation Specialist (RES) Track

The purpose of this summary is to outline the education and exam requirements and the costs related to attaining the IAAO RES professional designation.

Required Courses:-IAAO 101 Fundamentals of Real Property Appraisal-IAAO 102 Income Approach to Valuation-IAAO 201 Appraisal of Land-IAAO 300 Fundamentals of Mass Appraisal-IAAO 311 Residential Modeling Concepts-15 Hours of Tested USPAP

Current cost of weeklong courses is $550 per week. When a person becomes an IAAO designation candidate, all of the courses can be challenged for a fee of $50. All course materials are available for purchase by a candidate for $100 per course. We would expect that some candidates would test out of IAAO 101, 201, and 300; most have taken a mass appraisal course, USPAP, and Course 102. The courses we would need to sponsor would be possibly 201, 300, and definitely 311. We believe most candidates should be able to complete their educational and testing requirements in one to three years. The PDAs would provide assistance to candidates in preparing to challenge the exams.

Exam Requirements:-Eight-hour Residential Case Study Exam (or a demonstration narrative).-Final RES Exam.

Costs:-First year membership $88, thereafter $175 annually.-Candidate Fee $100 annually.-Total Course or Challenge fees based on an individual basis (range $150-$1,700). -Case Study Exam $275.-Final Exam – No charge.

If you have questions or comments, please contact your Minnesota IAAO Professional Designation Advisors: Steve Behrenbrinker (320) 650-3352 Teresa Mitchell (651) 438-4216.



State Board of AssessorsWri en by Pam LundgrenMinnesota Department of Revenue

Meeting Minutes January 23, 2007

Chairperson Keith Albertsen convened the meeting at 9:30.

Members in attendance were:Keith Albertsen, ChairpersonDoreen Pehrson, Vice ChairpersonJan JacksonDave MarhulaGary AmundsonMike AmoDeb VolkertSteve Sinell

Gregg Larson was unable to attend.

The Minutes of the November 27, 2006 meeting were read and discussed. Doreen Pehrson made a motion to approve the minutes as amended. Jan Jackson seconded the motion. The motion carried.

Officer Elections:The chairman, Keith Albertsen, opened the floor for nominations for the office of Secretary/Treasurer. Doreen Pehrson made a motion to nominate Deb Volkert, cease nominations and cast a unanimous ballot. Mike Amo seconded the motion. The motion carried.

The chairman opened the floor for nominations for the office of Vice Chair. Steve Sinell made a motion to nominate Doreen Pehrson, cease nominations and cast a unanimous ballot. Deb Volkert seconded the motion. The motion carried.

The chairman opened the floor for nominations for the office of Chairperson. Jan Jackson made a motion to nominate Keith Albertsen, cease nominations and cast a unanimous ballot. Deb Volkert seconded the motion. The motion carried.

Secretary’s Report:The transcript data entered into the computer file since July 1, 2004 has all been converted to the new CEH/BEH format.

Announcements:Ehlers and Associates will be conducting their annual Public Finance Seminar on February 1 and 2, 2007 at the Earle Brown Heritage Center in Brooklyn Center. This year’s seminar is entitled, FINANCIAL FITNESS, Personal Training for Healthy, Vibrant Communities and covers topics including TIF Basic Sessions I and II, City and Township Relationships, Single Family Residential Market, Financing, Environmental Remediation, Abatements, Bonds, Taxable and Exempt TIF

Revenue Tax Bonds, Downtown Redevelopment, etc. Per Board Policy, assessors who attend the seminars and submit documentation of attendance will receive 10 BEHs for attendance at both days.

Request for Course Equivalency:Steve Behrenbrinker wrote the Board on behalf of the MAAO Weeklong Course Committee requesting that the 2007 edition of the PACE (Professional Assessment Certification and Education) course be approved as an alternate to the former weeklong Course K (Minnesota Assessment Administration). Discussion of this request was tabled until after the appointment with John Hagen and Jacquelyn Betz at 2 p.m.

Request for Provisional Status:Valerie Wensloff, Roseau County. Courses A, B and Mass Appraisal Basics.

Applications for Certified Minnesota Assessor:Steve Sinell made a motion to award the Certified Minnesota Assessor designation to the following individuals:Thomas Brandt, Ramsey CountyWilliam Graham, Ramsey CountyTimothy Jacobs, Mille Lacs CountyAlan Kampf, Ramsey CountyJudy Liddell, Morrison CountyAngela Nelson, Sibley CountyJamie Niswander, Clearwater CountyJohn Polkinghorne, Koochiching CountyCarla Wildman, Pope County

Doreen Pehrson seconded the motion. The motion carried.

Appointments with the Board:Allan LaBine, Washington County, met with the Board for his second Accreditation Oral Interview. His education includes: Courses A, B, H, J, IAAO 102, 400, ProSource 151 and many seminars. His Form Report passed the grading committee in July 2006, and he passed the Residential Case Study Examination in September 2006. Mr. LaBine has 23 years of assessment experience, and he applied for the Accredited Minnesota Assessor designation. Steve Sinell made a motion to award the Accredited Minnesota Assessor designation to Allan LaBine. Dave Marhula seconded the motion. The motion carried.

Nathan Stulc, Hennepin County, met with the Board for his Accreditation Oral Interview. His education includes Courses A, K, Mass Appraisal Basics, ProSource 105 and a Bachelor of Science Degree in Real Estate from SCSU. Mr. Stulc has



State Board of Assessors Meeting Minutes...continuedthree years of assessment experience, and he applied for the Accredited Minnesota Assessor designation. Deb Volkert made a motion to award Nathan Stulc the Accredited Minnesota Assessor designation. Mike Amo seconded the motion. The motion carried.

John Hagen and Jacque Betz from the Department of Revenue Property Tax Division, met with the Board to discuss the request from the MAAO Weeklong Course Committee to allow the PACE course as a substitution for Minnesota Assessment Administration. (See request for Course Equivalency above.) After some discussion concerning the differences in the two courses, and the possibility of the Department of Revenue to develop a new Minnesota Assessment Administration course, Doreen Pehrson made a motion to deny the request to allow the PACE course as an alternate to Minnesota Assessment Administration. Gary Amundson seconded the motion. The motion carried.

Karla Anderson, Benton County, met with the Board for her Accreditation Oral Interview. Her education includes Courses A, H, successful challenges to Courses J and K, ProSource 101-105 and a Bachelor of Science Degree in Accounting from St. Cloud State University. Appraiser License number: 20293272. Ms. Anderson’s Form Report passed the grading committee in January 2007, and she also passed the Residential Case Study Examination in January 2007. Ms. Anderson has five years of assessment experience, and she applied for the Accredited Minnesota Assessor designation. Mike Amo made a motion to award the Accredited Minnesota Assessor designation to Karla Anderson. Jan Jackson seconded the motion. The motion carried.

Discussion Items:• Correspondence received regarding the repeal of M.S.

82B.225. This is the statute that allowed the Department of Commerce to accept assessment experience for an appraiser license. This statute was repealed in 2005. This was a matter of information.

• Keith Albertsen inquired, as part of the Weeklong Course Committee (WCC), whether the board thought there were any needs not being met by the weeklong courses and asked for ideas. The board discussed the possibility of SCSU putting together seminars concerning apartments, rural, SRR, etc. to meet needs not currently covered in detail by a

weeklong course.• Year of experience requirement update. Mike Amo presented a

set of handouts that he prepared including some questions and comments on experience and a comparison table which listed current and proposed requirements and tasks. Discussion followed, and the topic will be addressed again at the

March meeting.

There being no further business, the chairman set the date for the next meeting as Tuesday, March 13, 2007 at the Minnesota Department of Revenue. We will convene at 9:30 a.m.

Jan Jackson made a motion to pay all meeting expenses. Dave Marhula seconded the motion. The motion carried.

Dave Marhula made a motion to adjourn. Doreen Pehrson seconded the motion. The motion carried. The meeting adjourned at 3 p.m.

May: 9:30 a.m. Tuesday, May 22, 2007 (Note: MAAO Summer Seminars May 23-24, 2007) Country Inn and Suites St. Cloud

June: No meeting

July: Tuesday, July 17, 2007 Department of Revenue St. Paul

August: No meeting

September: No meeting

October: Tuesday, October 2, 2007 (1 p.m.) and Wednesday, October 3, 2007 (9 a.m) Holiday Inn Duluth (Note: The Board meting will be concurrent with the seminars after the business meeting)

November: No meeting

December: Tuesday, December 4, 2007 Holiday Inn St. Cloud

2007 State Board of Assessors

Meeting Dates



Region 1 Kathy Fre e

Across the Regions

Region 2 Doreen Pehrson

Arranged by Nancy Wojcik, SAMACity of Brooklyn Center AssessorEditorial Board Commi ee Member

The December meeting was held December 15, 2006 at the Austin Public Library. The guest speaker was Dave Schafer, a Detective with the Austin Police Department. Dave spoke about the FBI Academy he attended in Quantico, Virginia this fall. Rich Peterson was re-elected to remain as Region 1 President. A motion passed to suspend the region dues for a year, and $25 was donated to the Dan Franklin Scholarship.

The January meeting was held January 29, 2007 in Olmsted County. The guest speaker was Jason Fritz from the Cemstone Company, which builds and sells ICF construction products. Tom Dybing gave an update on proposed legislation. There was MCCC discussion on the ACS conversion. In new business, there was discussion on the flower and gift policy. Region 1 would like to make the recommendation to MAAO to limit the policy to MAAO members and their spouses and children only. The influenza

outbreak information will be discussed at the February meeting. The next meeting will be held February 16 and hosted by Fillmore County.

The February meeting was held February 16 at the Fillmore County Courthouse. The main topic of discussion was agricultural values. Lunch followed the meeting at the Branding Iron. This is the last year that hard copies will be sent out on education material. There are talks of extending limited market value. MAAO would like to update the photo directory. The fall conference will be held at Breezy Point in 2008, and the Mall of America in 2009. Region 1 will be responsible for the hospitality suite at Summer Seminars. Contributions are needed from each region for the silent auction. MAAO made a decision to donate to current members only for the funeral fund. The legislature has many proposed bills in both the House and Senate. The Minnesotan’s Property Tax Comment

Line was created by Rep. Paul Marquart to gather ideas from “real people” on property tax reform (the website is www.house.mn/dfl/ptax/propertytaxproject.html). MCCC basic training will have one-half day of training for $75, which is geared to new employees. There will be a Land Records System Novalis meeting February 28 in Fergus Falls. They will be demonstrating the LRS in June at the MCCC conference. The joint meeting with Region 9 will be on July 20, most likely on Lake Minnetonka. The next commercial comparison report will be on convenience stores. Region 1 moved to make a donation of $50 toward the funeral fund; this will include any active Region 1 members, their spouses and children, and also any former county and city assessors. Region 1 also donated $150 toward the silent auction. The next meeting will be March 16.

The December 8 meeting was held at the Sibley County Courthouse in Gaylord. A new member, Mike Shiplee, deputy assessor from Martin County, was introduced along with guest retiree, Dave Eastland from McLeod County. The Ag Committee had met and discussed the DNR survey. It was noted that some CREP sales were selling for more than tillable land. The Executive Board will be changing to a calendar year for budget purposes. The Dan Franklin Scholarship fund is set up for two awards in the assessing field and three from outside the field. Marv Anderson’s name was submitted for 2nd Vice President. Larry Bahr, Jackson County, passed away November 25, 2006. Ed Honetschlager, retired Regional Representative, passed

away in November. A motion was made to donate $25 to the Dan Franklin Scholarship fund as a memorial to Ed. Election of officers was held and Noreen Curry is the new President. Sibley County will be secretary, and the treasurer will remain the same.

The January 19 meeting was held at Swanny’s in Courtland. New members that were introduced were Norma Padgette and Mike Sheplee from Martin County, and Ryan Short from Blue Earth County. The update on the Department of Revenue by Tom Nash included the CREP preliminary report for the legislature. Subjects discussed were the perpetual/conservation easements and the definition of agricultural. Doreen Pehrson reported that the Education and

Licensing Manual has been updated and is on the State Board of Assessors website. Steve Behrenbrinker has asked to discontinue the course regarding the form report for the AMA designation. A thank you note was read thanking the region for the memorial given to John Hagen’s mother. There was a discussion on online property information, GIS systems and CER programs. Two people from the Nicollet County Soil and Water Conservation District gave a presentation on the different conservation easement programs available. The next meeting will be March 16 at Blackbeard’s Eatery in Madelia.



Region 5 Sibley County

Region 3 Dan Weber

Region 4 Debra Davis

The December 8 meeting was held at Russell’s in Big Lake. Gary Grossinger reported that he hoped everyone had attended the MCCC Tax Capacity rewrite training. Education information was handed out. The next meeting is scheduled for January in Wright County.

The January 19 meeting was held at River City Lanes in Monticello. Green Acres scenarios were discussed by the group. Al Heim reported on the recent conservation easement meeting. He said the key item is the reporting of conservation easements on the sales. The eCRV process is going well and information is on the website. The early adopters will be starting soon. The Manatron project is four to five months behind, but they are confident that they will catch up during the transition

process. The Governor appointed Ward Einess as the Commissioner of Revenue and Dan Salomone as Deputy Commissioner. Dorothy McClung has been hired by the department to assist with several projects including the 4d assessment. There was discussion on the increased Green Acres value. The February meeting will be held in Benton County. The February meeting was held February 16, 2007 at Jack & Jim’s in Duelm. Brian Koester introduced a local assessor for Benton County – Tracy Balder and her husband Morris. Isanti County is trying to line up a farm tour for the April meeting. Region members attended the Realtor Associations meeting and discussed Green Acres payback and the process.

MCCC included discussion about the recent CAMA meeting and the CLAS screen. There will be two sessions at the annual conference, income and a discussion on eCRVs. There is a need for beta testers. Jim Hallstrom will be taking the lead for the Manatron CAMA project. Manatron is trying to duplicate the CAMA USA program. Gary Grossinger will be meeting with the Manatron tax group to look at the interface with CAMA USA. A request was made for any data on landfill sales. Steve Behrenbrinker discussed the Summer Seminars, and they are looking for items to auction and plan to have a contest between counties. Don Holm and Nancy Bye are both retiring. The next meeting will be held by Chisago County.

The region met December 15, 2006 at the Moose Lodge in Proctor. The PACE course will be worth 30 hours of continuing education with no exam. The Department of Revenue will try to regionalize the course this year. MCIS reported that 10 counties have converted to the new CAMA. St. Louis County was converted on a trial basis and Cook County has not converted yet. MCIS recently used a new web product to present and finalize the redesign of the tax inquiry screens with the county users. Marty Schmidt was recognized for the four years as MAAO Region 4 Director. Three members volunteered to serve on the 2007 Fall Conference Committee. They are Kyle Holmes, Andy Plesha and

Greg Swartwoudt. Mel Hintz reported that the Iron Gate Mall Tax Court case was dismissed. A motion was filed to re-consider dismissal but was denied. The Minnesota Supreme Court has been petitioned for re-consideration. The next meeting will be held in Grand Rapids.

The January 19 meeting was held at the Forest Lake Restaurant in Grand Rapids. The PACE course has tentatively been set for July in Fergus Falls, and August and September in Grand Rapids. Legislative Committee members will begin sitting in at the Legislative sessions on a daily basis beginning in February. Liaison Rob Vanesek is covering things very well and keeping people posted. Discussion

was held regarding the Rural Counties Group. There may be a joint meeting in April with Regions 7 and 8. Gary Amundson reported that there are fewer time adjustments this year than in the past. Dean Carter has left the Department of Revenue; he ran the five-year reports. The Regional Rep. Supervisor position has been posted. No interviews have been scheduled. There was a suggestion that MCIS create codes that would be consistent among all the MCIS counties. The February meeting will be held in Grand Rapids.

The December meeting was held December 1 at the Pizza Ranch in Slayton. The 2007 Summer Seminars will be held in St. Cloud from May 22 to May 24. The picnic location will change to Trobec’s. Tom Reported that the democrats will control the Senate and the Tax Committee. The new MAAO President, Robert Wagner, would like

to attend a meeting for each region. The Conservation Easement Committee is finalizing a bulletin. The elections were held for 2007 offices. The President for 2007 is Carole Snyder and Secretary/Treasurer is Joyce Schmidt. The January meeting will be held in Slayton.



Region 6 Sandy VoldThe December 8 meeting was held at Torgy’s on the Lake in Glenwood. A special welcome was given to our retirees and guests: Jan Hovland, Bob Holzheimer, Loren Harste, Dick Laurvick, Dick Larson and Phyllis Harste. Jacque Betz is the new Department of Revenue member on the Education Committee, replacing John Hagen. Seminar instructors will receive a $75 gift certificate. The Fall Conference will be held in Duluth from September 30 to October 3 at the Holiday Inn. The full Tax Committee Chair is Rep. Ann Lenczewski of Bloomington. The Property Tax Committee Chair is Rep. Paul Marquardt of Dilworth. The Chair of the Senate Tax Committee is Sen. Bakk of Cook. The Legislative Committee will be meeting with these members in January. There

was a discussion on Alliance Pipeline. Elections were held, and Wayne Anderson will be the President of Region 6. Sandy Vold will be the Secretary/Treasurer. The January meeting will be held in Montevideo. The February meeting was held on February 9 at the Pizza Ranch in Montevideo. Education Committee report listed a potential change in the experience signature for CMA licensure. The PACE course will be offered with no test but a cost of approximately $100. The Agricultural Committee reported that the Department of Revenue is working to get ethanol plant information on the website. There was a discussion on wind energy towers and uniformity in assessment. Sandy had wind energy leases on a

number of parcels in Big Stone County. There may be a cruise available at the Fall Conference in Duluth. MAAO Executive Board reported that a $1,500 stipend was given to the Department of Revenue for teaching and will be used for staff development. Bruce Nielsen and Barb Dybdahl’s article from Equal Eyes will be published in the February issue of Fair and Equitable. Bill Effertz has put his name in for 2nd Vice-President along with Marv Anderson. It was decided that the $20 for the Summer Seminar picnic should be included in registration. Region 6 will donate two baskets of items to the silent auction.

Region 7 Lois SumerfeltThe region met December 15, 2006 at the Country Kitchen in Moorhead Center Mall. Keith reported that the State Board of Assessors approved 12 CMAs, six AMAs and one SAMA. The board also discussed the definition of one year of experience. The next State Board meeting will be in January. The election of officers was held and the new President is Cheryl Wall, the Vice President/Treasurer is

Lee Brekke and Lois Sumerfelt is the Secretary. Rep. Paul Marquart came to speak on things going on in the legislature in the coming year. The January meeting will be held in Douglas County.

The region met January 19 at the Long Lake Lodge in Douglas County. Regional Rep. Brad Averbeck has moved into his new office. His new number is (218)

439-3673, and his email is the same. The State Board has had one request for provisional status, seven requests for CMA and three interviews for AMA for January. The Conservation Easement Working Group has completed the report that they were assigned. Leonard Peterson will be attending the next region meeting, so please forward topics for discussion to Cheryl. The next meeting will be held in Fergus Falls.

Region 8 Nancy AmbersonThe region met December 8, 2006. Steve Carlson from Polk County introduced their most recently hired appraiser, Mark Landsverk. The Ag Committee expressed concerns about the Chippewa County court case and its decision to reduce the valuation of CREP acres by 40 percent. The committee has requested that minimal weight be placed on that decision. The Board of Water & Soil Resources (BWSR) website has all counties listed with the number of reported CRP/RIM/WRP/CREP acres. The necessary 15 hours of USPAP is provided by ProSource only at this time.

The recent PV course went very well. You are required to attend the PACE course to maintain your designation during every four-year licensing period. The current four-year cycle ends in 2008. Jim Atchison is working on an income alternative course, which will be two 15-hour seminars with a required test after each 15-hour segment. After reviewing the AMC handout titled “A Guide to Minnesota Property Tax System” some appraisal staff members felt the flyer insinuated the increases are due to value. There were other errors noted in the publication.



Region 9 Laura FridgenThere was a joint meeting with Region 3 on December 8, 2006 at Russell’s in Big Lake. There were 102 members and guest speakers present. Jan Olsson reported that there are still MAAO cookbooks available for purchase. The Membership/Awards Committee will be sending out congratulatory letters to assessors for achieving professional designations. There was discussion with Larry Austin regarding non real estate items reported on CRVs. The Tax Court Committee is working on a Summer Seminar and a new

assessor tool kit for Tax Court cases. The next meeting will be held in the City of Coon Rapids.

The January 19, 2007 meeting was held at the City of Coon Rapids. The guest speakers presented information about foreclosed properties. Course A will be offered in January and July. IAAO representatives reported that the next conference will be held in Atlanta. IAAO is considering becoming a member of the

Appraisal Foundation. The Department of Revenue is looking for new topics to add to the updated PACE handbook. The PACE course will be a 30-hour, Monday through Thursday format, and the cost is $125. The revenue bill includes a requirement for county boards to go through a training session similar to local boards. Dorothy McClung left Ramsey County January 5, 2007, and will be working with the Department of Revenue. The next meeting will be held in Dakota County.

As I See ItWri en by Rebecca Malmquist, SAMA

City of Minnetonka Senior AppraiserEqual Eyes Managing Editor & Editorial Board Chair

For assessors, spring can be a contentious time. For our office, this year was especially. If I had a nickel for each time a resident called during our review period stating, “The market is going down,” “Everything I read says the housing market has gone down __ percent,” and “Do you want me to send you the articles I have showing the market has gone down?”

This can be monotonous and frustrating. As assessors we have to remember that the general population is not educated as to how we arrive at a value. A common question we receive is “how did you come up with the value for my house?” Well, let me see, I picked my red dart

with the flame flights, spun around three times, and threw the dart backwards over my left shoulder. While some days it might feel like that is the best approach, we all know how much time, statistics, and thought goes into our estimation of value. A positive way to view this year is that this is the year of “Educate the Taxpayers.” While we come up with a value for January 2, 2007, we all know that we are reviewing a study period that is months prior. Like no other year, I have used our sales study period as a key part of the education I attempt to give the residents I talk to during the review period. It is not to say that this helps to explain all of the taxpayers’ questions or prevent them from appealing to the local

board, but some eyes have been opened and that has to be seen as a positive step in the right direction.

Before you know it, we will see each other at Summer Seminars 2007. The Editorial Board will again be conducting our yearly raffle. Get your $$$ ready! It is unlikely you won’t be approached by one of our committee members to buy your chance.

That’s a wrap.



MAAO Summer Seminar

Evening EventAt Trobec’s Event Center

Highway 75 St. Joseph, MN

Please join us on Wednesday, May 23From 6 p.m. until 10 p.m.

Activities:Hog Roast Buffet

Silent AuctionLive Auction

PrizesKaraoke Contest

D.J.Great Food & Beverage

The fee is included in the registration for Summer Seminars. Tickets are available for $20.



EQUAL EYESPUBLISHED BY THE MINNESOTA CHAPTER OF IAAO ANDTHE MINNESOTA ASSOCIATION OF ASSESSING OFFICERS

13636 5th Avenue North Plymouth MN 55441

ADDRESS CORRECTION REQUESTED

PRESORT STDU.S. POSTAGE

PAIDPERMIT NO. 27

MAPLE GROVE, MN


oﬃ cial publication of the minnesota association of ...449783_hc_equal_eyes_2.indd...

Documents