volume 36 - number 136 qualeyes...volume 36 - number 136 effective and efficient negotiations 2...

EQUALEYES Official Publication of the Minnesota Association of Assessing Officers m n m a a o . o r g

find out what our new county assessors have in common

Top Home Trends 2014

There’s An App For That ... Stearns County gives details

Spring 2014 Volume 36 - Number 136

Effective andEfficientNegotiations

http://www.mnmaao.org

2 Equal Eyes | Spring 2014

Fo W

Art i c l e to sugges t , l e t t er to the editor, or any other correspondence for EQUAL EYES?

Send To:Equal Eyes

Managing Editor10 NW 2nd St. Room 240

Buffalo, MN [email protected]

EqualEyEs

spring 2014 Vol. 36 - No. 136

Official Publication of the Minnesota Association of Assessing Officers

13There ’s An App For That


35

Globa l AssessmentTrends : Ghana

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C o l u m n sCommiss ione r ’s Commen ts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5

Assesso r X . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .34

A Le t te r f r om the Ed i t o r . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35

D e p a r t m e n t s4 I n The Know6 I n te rna t i ona l I t ems7 MAAP Upda te9 Out o f t he Pas t

12 Le t ’s Ge t Acqua in ted17 Tax Cou r t Abs t rac t

19 New SAMA & AMA Des ignees23 State Board of Assessors Minutes29 Trans i t i ons

33 What ’s New on the Web

* 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.

On the Cover:The Mary Tyler Moore bronze statue located at 700 Nicollet Mall, Minneapolis. (Courtesy of Meet Minneapolis). The iconic Mary Richards tossing her hat in the air is symbolic of working women. In this issue we meet 4 working women - our newest County Assessors. Ironically, The “Mary Tyler Moore” house is for sale....see our Classif-Eyeds featured home.

Editor’s NoteWelcome Spring! It’s been a long, cold winter and I hope this season finds you happy, healthy, and ready for review. May this issue of Equal Eyes be as rewarding to you as the work that goes into creating it. Jake, Jamie, Mike, Nancy, and Solomon....thank you! You put your best foot forward and together we make it happen. The true definition of teamwork.

Lori Thingvold, AMAEqual Eyes Managing Editor

32 Class i f -Eyeds10 Assesso r So f t Sk i l l s

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In

Executive Officers President Marvin Anderson, SAMA1st Vice President Dan Whitman, SAMA2nd Vice President Nancy Wojcik, SAMAFinancial Officer William Effertz, SAMAPast President John Keefe, SAMA Regional Directors Region 1 Ryan Rasmusson, SAMARegion 2 Bridget Olson, SAMARegion 3 Daryl Moeller, SAMARegion 4 Mark Peterson, SAMARegion 5 Lorna Sandvik, SAMARegion 6 Marc Iverson, SAMARegion 7 Doug Walvatne, SAMARegion 8 James Haley, SAMARegion 9 Angela Johnson, SAMA

Committee Chairs Agricultural Jeanne Henderson, CMASCAMA and GIS Randy Lahr, SAMAConference Coordinator Paul Knutson, SAMA, RESEditorial James Haley, SAMAInformation Systems Kelly Baillet, SAMALegislative William Effertz, SAMAMembership Coordinator Rebecca Malmquist, SAMA, CAENominating and Procedures Michelle Moen, SAMAOn-Line Administrator Lori Schwendemann, SAMAPVC Coordinator Joy Kanne, AMARules and Resolutions Steve Sinell, SAMASales Ratio Michael Thompson, SAMASecretary Thomas May, SAMA AASSilent Auction Jane Grossinger, SAMASite Selection Luis Rosario, SAMAStrategic Planning John Keefe, SAMASummer Seminar Coordinator Kim Jensen, SAMA, CAETax Court / Valuations Joshua Hoogland, SAMA Treasurer Reed Heidelberger, SAMA Educational Workgroups Assessor Standards Michael Stalberger, SAMAAssessor Development Teresa Mitchell, SAMACourse Management Tina Diedrich-Von Eschen, SAMACourse Curriculum Bob Wilson, SAMA, CAEEducation Kim Jensen, SAMA, CAEScholarship Joy Kanne, AMA

Lori Thingvold, AMAWright CountyEditor

Solomon Akanki, SAMACity of Brooklyn ParkCommittee Chair

VacancyContact Equal Eyes

Jake Pidde, AMACity of Plymouth

Michael Stalberger, SAMABlue Earth County

Jamie Freeman, SAMAClearwater County

Nancy Gunderson SAMAClay County

EDITORIALBOARD

MAAOLEADERShIP

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mailto:marvin.anderson%40brooklynpark.org?subject=mailto:dan.whitman%40co.martin.mn.us?subject=mailto:nwojcik%40ci.brooklyn-center.mn.us?subject=mailto:william.effertz%40co.steele.mn.us?subject=mailto:jekeefe%40co.chisago.mn.us?subject=mailto:ryan.rasmusson%40co.freeborn.mn.us?subject=mailto:bolson%40co.nicollet.mn.us?subject=mailto:djmoell%40co.chisago.mn.us?subject=mailto:mark.peterson%40co.cass.mn.us?subject=mailto:lorna.sandvik%40marshallmn.com%09?subject=mailto:marc_l%40co.renville.mn.us?subject=mailto:dwalvatn%40co.ottertail.mn.us?subject=mailto:james.haley%40co.norman.mn.us?subject=mailto:ajohnson%40co.carver.mn.us?subject=mailto:Jeanne.Henderson%40co.sherburne.mn.us?subject=mailto:randy.lahr%40co.stearns.mn.us?subject=mailto:pknutson%40co.rice.mn.us?subject=mailto:james.haley%40co.norman.mn.us?subject=mailto:kelly.baillet%40co.dakota.mn.us?subject=mailto:william.effertz%40co.steele.mn.us?subject=mailto:rmalmquist%40eminnetonka.com?subject=mailto:michelle.moen%40co.isanti.mn.us?subject=mailto:lori.schwendemann%40lqpco.com?subject=mailto:joyk%40co.mower.mn.us?subject=mailto:ssinell%40edenprairie.org?subject=mailto:mthompson%40co.scott.mn.us?subject=mailto:tjmay19%40comcast.net?subject=mailto:jgrossinger%40ci.st-michael.mn.us?subject=mailto:luis.rosario%40co.ramsey.mn.us?subject=mailto:jekeefe%40co.chisago.mn.us?subject=mailto:kim.k.jensen%40co.hennepin.mn.us?subject=mailto:joshua.hoogland%40co.hennepin.mn.us?subject=mailto:reedh%40rea-aph.com?subject=mailto:michael.stalberger%40blueearthcountymn.gov?subject=mailto:teresa.mitchell%40co.dakota.mn.us?subject=mailto:tina.diedrich%40co.stearns.mn.us?subject=mailto:bwilson%40edinamn.gov?subject=mailto:kim.k.jensen%40co.hennepin.mn.us?subject=mailto:joyk%40co.mower.mn.us?subject=


In the Know

Summer issue deadline June 1, 2014

2014 Week-long courses at a glance

Assessment Laws and Procedures July 7-10, 2014 Best Western-Kelly Inn, St Cloud

Residential Case Study Workshop July 16, 2014 Best Western-Kelly Inn, St Cloud

Appraisal Principles July 21-24, 2014 Best Western-Kelly Inn, St Cloud

Appraisal Procedures August 4-7, 2014 Best Western-Kelly Inn, St Cloud

Basic Income Approach August 11-15, 2014 Best Western-Kelly Inn, Plymouth

Mass Appraisal Basics August 25-29, 2014 Best Western-Kelly Inn, St Cloud

IAAO 102 Income Approach to Valuation September 15-19, 2014 Best Western-Kelly Inn, Plymouth Preparing for Minnesota Income Case Study w/ optional exam September 29-30, 2014 Best Western-Kelly Inn, Plymouth

Minnesota Assessment Administration October 6-9, 2014 Best Western-Kelly Inn, Plymouth

Summer Seminars are coming May 21-22

http://www.mnmaao.org


Commissioner’s Comments

Written by Myron FransMinnesota Commissioner of Revenue

Warming Up For Spring Tax Appeal Season

Spring in Minnesota means many things: Baseball season has arrived. The legisla-tive session is under way. Real Estate mar-kets are coming out of their typical winter slumber. For assessors and other property tax officials, spring means it is time for the annual “property tax appeal season.”

In recent years, market values for most properties in Minnesota dropped, and the number of appeals to Local and County Appeal and Equalization Boards – LBAEs and CBAEs – also decreased. For example, local and county officials heard 14,858 ap-peals for 2010 assessments, compared to 13,344 appeals for 2011 and 10,064 for 2012. (This includes appeals heard at local Open Book meetings.)

With market values now showing improve-ments in some areas and property types, it remains to be seen if the number of appeals will now increase, or if property owners will instead view the rising values as a sign that our economy continues to improve.

2013 Property Values

Market values for agricultural land re-mained generally stronger than for other property types. And in 2013, values for class 2a agricultural properties and class 2b rural vacant land rose nearly 28 percent, ac-cording to our most recent Property Values and Assessment Practices Report.

In comparison, residential homestead prop-erty dropped 0.33 percent last year, while commercial/industrial property increased a modest 0.84 percent. These statewide per-centages are a useful barometer of markets in the state, though numbers for specific property types vary in different areas of the state, or even different areas of your own jurisdiction.

Based on sales ratio numbers from this report, the quality of assessments across Minnesota stayed relatively consistent last

year.

Our Property Tax Division works closely with assessors to identify areas of concern to help avoid State Board Orders. This helps maintain consistency of assessment statewide, and may help keep down the number of appeals by property owners.

Importance of Training

Training – not only for assessors, but also for local and county appeal board members – is another way we work to ensure a uni-form tax system. When taxpayers disagree with their property valuation and assess-ments, we provide them a chance to appeal, wherever they are in Minnesota.

Educating LBAE and CBAE board mem-bers is an important way to make sure those appeal rights are upheld and to prevent mis-takes. In recent years, we combined these courses and hope to provide this training online in the next two years, making it easier than ever to meet the board training requirements in state law.

As you know, all city, town, and county BAE meetings must include at least one voting member who has taken the depart-ment’s course in the last four years. All boards must certify by Dec. 1 that they met the requirement and had a quorum at their meetings for the year.

Members are trained so that they under-stand the importance of an equal assess-ment system, their role within that system, and how the valuation and classification process is affected by appeals.

Last year, we trained 1,633 local and county board members who attended one of the 53 training sessions we offered. This included six “catch-up” sessions for boards that met the training requirement as of Dec. 1 but lost their trained member due to township elections, retirements, etc.

While assessors are not voting BAE mem-bers, you serve as an expert advisor to the board. In that capacity, we rely on you to support the board training requirements and other obligations.

We also rely on you to notify us if a BAE makes inappropriate changes when hearing an appeal – such as exempting a property from tax or granting a special program like Green Acres, neither of which the law al-lows them to do.

To help support your work with the boards, we are going to include BAE information in our upcoming PACE course. We have scheduled three PACE sessions this year and plan to offer another four sessions dur-ing the current training cycle (which ends June 30, 2016). For details, go to www.revenue.state.mn.us and type PACE in the Search box.

The Legislature continues its oversight of training and education for property tax of-ficials, and it recognizes local and county BAEs as an important part of the system. And we appreciate the support assessors provide to these boards during the property tax appeals season.

http://www.revenue.state.mn.ushttp://www.revenue.state.mn.us


Written by Tom May, SAMA, AASMinnesota Chapter IAAO Representative

International Items

Key reasons to become an IAAO member

Education: 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.

P r o f e s s i o n a l D e s i g n a t i o n s : 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 on-line 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.

News and Information

Greetings IAAO members. It is a busy time at IAAO and membership has never had as many benefits. The ½ price mem-bership incentive is still being offered and it’s a great way to test drive the benefits of IAAO. The library and research available to members is worth the price of member-ship alone, not to mention the “Fair and Eq-uitable” publications. For membership in-formation please contact myself, Rebecca Malmquist or Stephen Baker.

The IAAO had a landslide of new designa-tion candidates in 2013. Due to the change in the designation requirements starting Jan 1, 2014 and the IAAO decision to waive application fees for applications received by Dec. 31, 2013, there were about 850 new designee candidates for 2013. This is great news and the new candidates have 5 years to complete all of their requirements. There will be a lot of IAAO educational opportunities in the next 5 years.

The IAAO Executive Board met in San Antonio, Texas on Jan. 17 – 18, 2014 and swore in the new leadership and executive board members. I want to thank all Min-nesota members for your support in making me one of the new executive board mem-bers. I did see the results and Minnesota had a 64% voter turnout, while Iowa had 80%. I feel that in the next election Min-nesota should do all we can to pass Iowa as the leading state for voter turnout. This will be a challenge, but with all your help we can make it happen.

The IAAO Executive Board also met Feb. 7 – 8, 2014 in Kansas City, Mo. The Board met solely to concentrate on strategic plan-ning and education. The meeting was very timely with all the new designation candi-dates needing education with timely and ef-ficient availability.

The IAAO will hold its bi annual Leader-ship Days on Mar. 7 – 8, 2014 in Kansas

City, Mo. This is a time when committees and leadership come together and accom-plish a tremendous amount of work to keep IAAO’s mission moving forward. A lot of the benefits that all IAAO members enjoy are formulated and put into action at Lead-ership Days. Rebecca Malmquist is attend-ing Leadership Days, so if you have any questions, please contact Rebecca.

IAAO presented two great webinars this year. The first on Feb. 19 was “The Elu-sive Overall CAP Rate” presented by Peter Korpacz, and the second was “Evaluating the Costs of Litigation” on Mar. 12. Please consult the IAAO website on a regular ba-sis to find the upcoming webinars being offered. The webinars are affordable, con-venient, and packed with current trending information.

IAAO has just released the 2013 staffing survey prepared by the research committee. It has a lot of great information and staffing statistics from around the assessment com-munity. This was a major effort and “thank you” to all of you who participated by an-swering the questionnaire.

Congratulations to Stephen Baker, who has been appointed to the IAAO budget com-mittee for 2014. You all know that Stephen is a deep thinker and a numbers guy so the fit is perfect.

Please remember that the 2014 IAAO an-nual conference this year is in Sacramento, California. It will be held on August 24 – 27 and will be filled with education, net-working and social events. Remember to put it on your calendar, register and make your hotel reservation. Hope to see you there.

Hope you have a great spring and the as-sessment gods are kind. Also, please say an extra prayer for Greg Kramber’s recov-ery.


Written by Janet Kaschmitter Stearns County MAAP President 2013-2014

MAAP ACTIVITIES

The organization meets twice a year, in August, for a two-day educational workshop and again in December for the Winter Business meeting. The annual membership fee of $10.00 includes a semi-annual publication called the “Communicator” that informs members of meetings and other assessing news.

MAAP PURPOSEArticle II – MAAP By-Laws

“The purpose and objective of this organization shall be to further the work experience and knowledge of assessment personnel through education, communication and participation.”

NEED MORE INFORMATION?

Any member of the MAAP Executive Board would be more than happy to answer any questions you might have.

Janet Kaschmitter, President 2013-2014Stearns County (320) [email protected]

Judy Liddell, Vice President 2013-2014Morrison County (320) [email protected]

Jodi Kohn, Secretary/Treasurer 2013-2015City of Maple Grove (763) [email protected]

Danielle Lee, Board Member 2013-2015Wright County (763) [email protected]

Mitzi Wicklund, Past President 2012-2013City of Edina (952) [email protected]

WCMAP HISTORY

WCMAP was started in 1975 by former Kandiyohi County Assessor Chet Johnson who felt a need for office personnel to meet and discuss similar problems and to serve as a support group. This philosophy continues today with the Summer Workshop as an opportunity to learn about tax law changes along with other educational and professional development topics and provides an opportunity to network with other assessment personnel. Workshop course content is annually submitted to the State Board of Assessors for approval of 10 CEh’s for members maintaining a State Assessor’s designation.

MAAP

The group has evolved over the years to include many members from all parts of the state, and in 2003 it was decided to update the name of the organization to MAAP (Minnesota Association of Assessment Personnel).

mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]


MAAP

APPLICATION

DATE: E-MAIL ADDRESS: NAME: EMPLOYER: WORK PHONE: WORK ADDRESS: ( ) FAX NUMBER: ( ) POSITION: Number of years experience in the assessing field: Are you attending or have attended assessing classes: Are you currently Certified?

Join Us Today! Certified Specialist? Accredited? Sr. Accredited? Tell us about yourself: Special interests or hobbies?

Membership dues are $10.00. Please make checks payable to “MAAP”. Return completed Membership form with dues to:

Jodi Kohn

c/o City of Maple Grove Assessor’s Office P.O. Box 118

Maple Grove, MN 55311-6180

1180


services.

30 Years Ago – 1984

• The Editorial Committee inter-viewed candidates for a new Equal Eyes Editor to replace retir-ing Editor Doug Holt. The board interviewed four candidates for the position and selected Louise Leoni, City of Ely Assessor.

• Melvin Baughman, Forest Re-sources Extension Specialist, Uni-versity of Minnesota, hinted that aerial photography may be useful to assessors. Mr. Baughman tied the use of aerial photography to the valuation of timber lands.


• Carl Christensen, City of Bloom-ington Assessor, was elected to a two year term on the IAAO Ex-ecutive Board at the IAAO Con-ference in St. Louis. At the time, Carl was the 2nd Minnesotan to be elected to this position.


• MAAO Secretary Jerome Skeim expressed frustration in the re-lease of the new personal property schedules. The project was cursed from the beginning: getting the punched paper proved to be the first troubles.

• New Ottertail County Deputy As-sessor Eugene Davenport left a 520 acre grain and dairy farm to devote his full time on assessment work. Mr. Davenport was opti-mistic in his new endeavor, saying “I am sure that all tax problems cannot be solved by understand-ing or friendship, but if that will help in eighty per cent of the cases it will give me more time to deal with the twenty per cent”.

Out of the Past

Written by James Haley, SAMANorman County


• In the wake of the Minnesota Su-preme Court decision in Under the Rainbow Child Care Center vs. County of Goodhue, a number of state nonprofits expressed concern that many previously exempted groups would suddenly be required to pay property tax.

• Bill Davy, Hennepin County retires after 35 years of service & Judy Remer, City of Bloomington retires after 24 years of service.

• Kyle holmes, Carlton County was introduced as Region 4 director. One of his main goals included en-suring that no one from his region received the Minnesota Cup while he was director.


• Ag Specialist Mark Larson, Kana-bec County, explained that a dairy cow provided $13,737 of economic activity. This was an 18% increase from 1993.

• The City of Minneapolis was un-dergoing signification tax burden shifts. City Assessor Scott Renne explained that all residential prop-erty types, including apartments were “hot”. The district with the highest appreciation was Calhoun Isles, which experienced a 128% growth rate over the previous 10 years.


• Jeff Johnson, Stearns County, ex-plained that many farmers are de-ciding to rent their cropland and find a job off the farm because of the poor outlook for agriculture.

• Minnesota Legislators were polled to find out where they get most of their information. The number 1 source: Their own personal experi-

ence, with 75% stating they use this “often”. Last on this list: Lobby-ists, with 25%.


• A formula for computing your own property taxes was offered. That scientific formula was (Mkt. val-ue of your home x 1/Mkt. value of house next door) / (number of potholes in your street plus tim-ber value of trees on property) x (proximity to nearest walleye lake) x number of hours spent watching Vikings in 1990.

• Pat Reale, Adams County Colorado Assessor was allowed to keep his job after refusing to take his state-required licensing exam. A district judge ruled that no compelling public interest was being served in forcing Reale, a 27 year veteran, to pass his exam.

• Region 9 was concerned about too much state control regarding the re-quests made by the Department of Revenue for data through abstracts.


• Region 7 was planning a joint re-tirement party for Dan Franklin, Bob Moritz, and Les Koopman.

• Skyrocketing enrollment at St. Cloud State University created a new housing boom in St. Cloud’s south side. In the previous two years, 56 student apartment com-plexes with nearly 2400 bedrooms were constructed

• Jeffery Spelman, explained the role of the “Tax Agent”. A tax agent represents ad valorem taxpayers in regard to their assessments and serves as an advocate for taxpayers. A horror story was told of a nation-ally known appraisal firm bombard-ing local commercial property own-ers with a mailer advertising their


Super Soft Skills For Assessors

Researched and Written by Solomon Akanki, SAMACity of Brooklyn Park

Editorial Committee Member

Effective and Efficient Negotiations

Negotiation is a method by which people settle differences. It is a process by which compromise or agreement is reached while avoiding argument. In any disagreement, individuals understandably aim to achieve the best possible outcome for their position (or perhaps an organization they represent). However, the principles of fairness, seeking mutual benefit and maintaining a relationship are the keys to a successful outcome.It is inevitable that, from time-to-time, conflict and disagreement will arise as the differing needs, wants, aims and beliefs of people are brought together. Without negotiation, such conflicts may lead to argument and resentment resulting in one or all of the parties feeling dissatisfied. The point of negotiation is to try to reach agreements without causing future barriers to communications.Over the years I have found out that the person with the most pertinent information usually does better during negotiations. As assessors we need to learn as much as possible about the subject property, comparable properties, the market, market trends, valuation trends, etcetera. We need to be reading all market reports related to the year of assessment and creating spreadsheets for pertinent information from those reports. We need to have complete and up to date data on every property in our jurisdiction. We need to have access to the latest books on valuing the various property types easily obtainable from the appraisal institute. We need to subscribe to third party

providers of on-line real estate information (sales, listings, cap rates, etcetera). In an appeal situation especially a tax court appeal situation the person with the most pertinent information is more effective and efficient during negotiations. Before I move on I will say a few things about our ACE (Assessor Commercial Exchange). ACE is useless if jurisdictions are not entering sales information. It is also useless if we do not exhaust all possible options to obtaining substantive pertinent information on each sale. What do I mean by this? I mean calling every party to the transaction until we get all the information we need. Depending on the situation every party may include the buyer, seller, buyer’s attorney, seller’s attorney, buyer’s broker and seller’s broker. Also to ensure that we have access to all pertinent information, we need to start thinking of a way to create a secured site just like ACE to scan and upload proprietary documents. Uploading documents like lease agreements or rent rolls and income and expense statements to a secured site that all assessors have access to will ensure more effective and efficient negotiations. Today we waste many hours and days trying to obtain such confidential information from fellow assessors. We are not just wasting time we are also wasting energy. I have even heard that some assessors are not willing to share these documents! Quite strange! As assessors, we are already experts at handling proprietary information so I don’t see why that should be a challenge. As a group we are certainly not maximizing the

utility of the lease agreements or rent rolls and income and expense statements in the hands of so many assessors. We have to find a solution to this challenging situation as soon as possible.We never want to let negotiations become too tense so we should always keep it light. We should always feel free to smile and inject some humor in the conversation. Lightening up the mood can ingratiate us with our opponent while also conveying our negotiating strength. If we do not appear to be taking the negotiation extremely seriously, the property owner, attorney or tax representative may conclude that we are ready to move on. Yes we are ready to move on because we have completed extensive research and analysis and therefore we have substantive compelling evidence that supports our value position. The more easily and happily we can walk away from a negotiation, the greater our capacity to affect its outcome (Roger Fisher and William Ury, 1991). Harvard Business School and Wharton Business School researchers have found out that most negotiators act and react based on what the other side does. The bad news is that such responses are often based on a misinterpretation of the other side’s motives and intentions. The good news is that we can lead the way by negotiating in a principled and constructive fashion, and the other party will usually respond kindly. This does not mean that we should try to appease the other side, but, instead, negotiate in a deliberate and strategic fashion, rather than

Life is full of negotiations, big and small. We negotiate for raises, we negotiate with property owners and property tax representatives over market values, and we negotiate for more staff, the best projects, and flex time. Since negotiations are part of our daily duties I decided to research the super soft skill called “effective and efficient negotiations”. This research was an extremely rewarding journey; it enriched my mind, built my character and broadened my perspective. Also it added to the insights and perspectives gained from the research that produced the winter edition on conflict management. Effective and efficient negotiation as a super soft skill compliments the super soft skill of conflict management.


simply react. People tend to be matchers and follow the norm of reciprocity, responding in kind to how we treat them; if we want to be trusted, we must first offer it (Grant & Galinsky, 2013)There are four insidious advantage killers we need to learn to recognize in order to ensure effective and efficient negotiations. These include being formal, spilling the beans, tricking them into closing and talking loud, fast and high. Some people use formal address ostensibly as a sign of courtesy, but it has a way of making the other party seem aloof, even slightly superior. The other party will interpret this as insecurity. Calling someone “Mr.” after he’s already given you his first name, for example, takes you down a notch in the power hierarchy, even if you meant it respectfully. Spilling the beans is disclosing too much information prematurely and talking too much. The winner in negotiations lets the other party talk more and answers questions with questions — who, what,

when, where, why or how. Tricking them into closing is trying to get the other party to agree with us prematurely. This is a behavior that shows need more quickly and decisively and catastrophically than any other behavior. We can’t force a decision. I have discovered that when I am negotiating correctly, the other party invites me to close. Talking loud, fast and high is another advantage killer. When emotions run hot and heavy in negotiations, speaking too loudly, too quickly and in a high-pitched voice is a sure sign of need. While needy negotiators raise their voices, negotiators who simply “want” lower theirs.Finally, we should always do a postmortem on every negotiation, asking ourselves what worked and what we would do differently next time. Continuous improvement is the key to success in life. Also our leaders need to change their mind-set. Negotiation is not simply about being skilled in the moment at the table.

EE

It’s a business process, not an event. Our leaders must make sure all assessors have access to the training, tools and information available to private sector appraisers. I don’t want to say too much about that now because that is another topic for the future but permit me to say this - ensuring our offices have enough staff, with world class training, world class tools, world class pay and all pertinent information requires our city assessors, county assessors and directors of assessing to be able to negotiate effectively and efficiently in all situations. Management function techniques will never be complete without managers and assessors being able to negotiate effectively and efficiently. Every organization runs well based on the skills of all employees. Effective and efficient negotiations may require more time, effort and resources up front, but they generally shorten the total negotiation time and generate better results more quickly.

Assessor Soft Skills, continued

________________________________________________________________________________

EE

It’s not too late....Register for Summer Seminars

May 22-23, St. Cloud Holiday Inn

Earn 8 CEH’s for attending

Educational Opportunities:

Reviewing Residential Appraisal Reports MN Residential Form Report Residential Construction - From Measuring to Describing Introduction to Agricultural Assessment Income Capitalization using a GRM and a Direct Cap Rate Sales Verification: There is No Such Thing as a Bad Sale The Valuation of Apartment Properties Exemption 101 - Start to Finish MN Residential Form Report - Hands On Business Writing for Assessors Living on the Lake The Who, What, When, Where, Why, and How of Disaster Assessment It’s a Mobile World

please register by May 9th


Let’s Get Acquainted

Researched and Written by Jamie Freeman, SAMAClearwater County


Meet the New County Assessors

Bonnie CrosbyBonnie has been the Chippewa County Assessor for about 6 months now. She started out in the Assessor’s office as the Office Manager from 2001-2005 and then advanced to the Deputy Assessor 2005-2013.Bonnie didn’t start her career as an assessor. Rather, she started out working part-time at one of the local schools. The school schedule worked out great for Bonnie as she was able to work when her children were attending school and she was able to be home with them on their days off. Later Bonnie decided to further her education and attended the 2 year Administrative Assistant program at Minnesota West Community & Technical College in Granite Falls, earning her A.A.S degree in May of 2001. The non-traditional student was a good fit for Bonnie; she found the classes

and the learning process much more rewarding compared to high school.As Bonnie was wrapping up this chapter in her life, the position of Office Manager opened up at the Chippewa County Assessor’s office. One month before graduation, Bonnie was delighted to be hired as she was in the market for an office job. She considered herself very fortunate to have employment secured before her last semester was finished.Not knowing where this job would lead, Bonnie started working for Chippewa County only two days after her graduation ceremony. Although both her father and father-in-law questioned Bonnie’s desire to become an assessor, her career has grown from that of Office Manager to Deputy Assessor and now to the Chippewa County Assessor. Bonnie has been a member of the Minnesota Association of Assessing Officers for the last 5 years, although she still considers herself pretty new to MAAO since the 2013 Fall Conference was the first event she has attended. She did meet many of her fellow assessors and she’s looking forward to Summer Seminars in May. The Chippewa County Assessor’s Office consists of the County Assessor, a Senior Deputy Assessor/Appraiser, a Deputy Assessor/Appraiser and an Assessment Technician. Additionally, they’re in the process of hiring a new Assessment Technician. Ten Local Assessors are responsible for fifteen townships and three cities.

Bonnie has three children: Joshua, Ryan and Bethany. Joshua and his wife Sarah have blessed Bonnie with a beautiful granddaughter, Camryn, who will be seven in March. Ryan and his wife Chelsie were just married last July. Their blessings to Bonnie are Abby, a chocolate lab, and Maci, a golden cocker spaniel. They are spoiled just like grandchildren, so they are affectionately called “granddoggers”. Bethany is Bonnie’s youngest, and her significant other is Matthew. Bethany has recently graduated from college, and it’s anyone’s guess where life’s path will take her. Bonnie doesn’t have much time for hobbies right now, but she does enjoy spending time with her family, going camping, having bonfires and spending time at the neighboring rivers. When she has time, she also likes reading and working puzzles with her granddaughter. She was born and raised in Chippewa County. Even though she loves the area and hopes to grow old there, she would like to travel a little more and possibly spend her winters somewhere warmer. Maybe in retirement???Unusual parcels just seem to be a part of the job. One day Bonnie arrived at a farm site with more than their share of cats and chickens. When she got out of her car, the cats started coming toward her; they seemed to be coming out of every nook and cranny. Chickens everywhere and more than a hundred cats seemed a little creepy, especially when some of the cats

“Define success on your own terms, achieve it by your own rules, and build a life you’re proud to live.” – Anne Sweeney (President of Walt Disney)

Within the last 6 months there has been a changing of the guard in Minnesota. As four County Assessors have retired, four very talented women have stepped up as their successors. The newly appointed Assessors are: Bonnie Crosby, Chippewa County Assessor; Terrie Johnson, Mahnomen County Assessor; Teresa Mitchell, Dakota County Assessor; and Valora Svor, Kandiyohi County Assessor.As you read through this article, you will notice a similarity among these four Assessors. These women share a strong profile; they bring distinct character and motivational strengths to their jobs. They are driven, assertive, focused, and have the vision to make their office run efficiently. They are leaders in every sense of the word.

Bonnie Crosby


Let’s Get Acquainted, continued

tried climbing up her leg. It didn’t take her long to get back into the car. Guess there’s no chance of Bonnie turning into a crazy old cat lady.The one thing that she really enjoys about her job is the variety that every day brings. She finds it satisfying to explain the process of assessing property to taxpayers, especially when they come in a little upset and they leave understanding what we do, sometimes with a smile on their face. Bonnie understands that there is much to learn as time goes on. She’s looking forward to meeting more assessors from around the state and listening to their ideas, thoughts and concerns. It’s been a good thirteen years so far, and Bonnie’s looking forward to the upcoming years as the County Assessor. ______________________

Terrie Johnson Terrie Johnson is the newly appointed County Assessor for Mahnomen County. She has held this position since November 1, 2013. Prior to this, she was the Assessment Clerk for the City of East Grand Forks from 1985 to 1990, and an Appraiser for Polk County from 1990 to 2013.Terrie originally entered the assessment field when she applied for the clerk position in the East Grand Forks Assessor’s office. After working in the office for a while, she started taking assessment classes and worked towards a SAMA license. Additionally, she has been a member of MAAO for fourteen years. Mahnomen County, located in the northwestern part of the state, consists of three cities and sixteen townships, with the city of Mahnomen as the county seat. What I find interesting about Mahnomen County is that the entire county is part of

the White Earth Indian Reservation. In fact, it is the only county in Minnesota that lies entirely within an Indian reservation. Also, Mahnomen has a championship football team, the Mahnomen Indians. Their football team has made thirteen appearances in the state title game, which is more than any other school in Minnesota history.The Mahnomen County Assessor’s office is made up of the County Assessor, the Deputy Assessor, a part time clerk, and one local appraiser. Mahnomen County, like Chippewa County, is also in the process of hiring additional staff. Terrie has been married to her husband Gerald for 5 years. When Terrie’s at the office, Gerald is busy farming on their ranch in rural Mahnomen County. They love to travel and have taken many great trips together. They also have a large vegetable garden and lots of flowers on the farm where Terrie works on keeping them beautiful. Terrie and Gerald are also to be commended as they were the recipients of the 2012 award for Outstanding Conservationists in Mahnomen County. This award recognizes individuals, conservation organizations, and others for outstanding accomplishments with implementing conservation practices and improving Minnesota’s natural resources. A wonderful accomplishment for the Johnsons. In addition to hiring a full time staff appraiser, Terrie’s future plans for the office are to complete the process of entering all of their records in the CAMA system. What she finds to be the most satisfying aspect of her job is the ever-changing assessment world. It is always interesting and challenging. There are always new things to learn and ways to improve. The one thing she considers to be more of a challenge is personal safety when viewing properties. There are many negative situations that an appraiser could encounter when doing field work. Terrie believes that as a profession, we need to pay more attention to this issue. _______________________

Teresa MitchellTeresa Mitchell has 2 months under her belt as the new Dakota County Assessor. Teresa has literally worked her way up through the ranks within the Assessor’s office. She started out as a part time clerk 1988 to 1990, full time clerk 1990 to 1992, Appraiser 1992 to 1996, Senior Appraiser 1996 to 1999, Residential Manager 1999 to 2008, Chief Deputy 2008 to 2013 and now the County Assessor. Teresa got into the assessment field when she applied for a “work-release” program in High School to earn H.S. credit. She jokes that if you had told her then that assessing would be the only “real job” she would ever have, she may have taken a study hall instead!Dakota County is much larger than the county I work in. There is a total of 35 staff (no local assessors) with 156,000 parcels. Before former County Assessor Bill Peterson retired in October 2013, the 4 Dakota County Assessing management staff of Bill, Gloria Pinke, Scott Lyons and Teresa had 125 years of combined experience in the same county department. That’s impressive!Teresa has been a member of MAAO for 20 years and a member of IAAO for 18 years. She has been a MAAO Information Systems Committee member and Chair, MAAO Chair of the Assessor Development Committee, a Workshop Instructor, the Board of Assessor Form Report Grading Chair, and an IAAO Professional Development Advisor. Teresa has been married to her husband Dan for 17 years. They have two children, Wade 13 and Rebecca 10. They enjoy boating on the Mississippi and St. Croix Rivers and BWCA wilderness camping. She plays on volleyball leagues on both hard court and sand, golfs irregularly (time and skill required!), and also likes grading

Terrie Johnson

Teresa Mitchell


form reports. An interesting fact about Teresa is that she comes from a very large extended family. Not your average large family, the Bauer family is so large that they are attempting to break the Guinness world record for the largest family reunion. In 2000, about 1700 people got together at their last event. This wasn’t large enough though, because apparently the current world record is held by the Lilly Family of Flat Top, W.Va. which gathered 2,585 people for its reunion back in August 2009. The Bauer family is hoping to break the record in 2015 as they gather for their family reunion in Hastings. We wish them the best of luck!! When asked about the most satisfying aspect of the job, she stated that the last several years have been spent successfully accomplishing what seems like an enormous task. They recently replaced their entire Real Estate Management System – CAMA to Taxation and everything in between. She described it as a long grueling process and they are still not quite finished. So many knowledgeable, talented and dedicated staff came together and made it possible and successful even amidst struggles and challenges. It was rewarding for Teresa to be part of the process. The biggest challenge she feels in the assessment field is meeting mandated and statutory requirements that come each year with existing or shrinking human and financial resources. Every legislative change or mandate, however small it may seem, demands resources to meet and/or program into our systems. As resources shrink and mandates grow, even our essential services are taxed to the point that the use of technology and process improvements cannot compensate. Teresa plans to become proficient in addressing all the demands of the assessor position in Dakota County and continuing to contribute to the prosperity of our assessing organizations MAAO and IAAO. Her future plans as the County Assessor include creating a rewarding and innovative environment for retaining and growing a skilled and dedicated team of assessors and associates. Leveraging technology to make our difficult jobs more efficient and achievable is a model she plans on continuing to foster in the future. ________________________

The newly appointed Kandiyohi County Assessor is Val Svor. Val actually got her start from completing the education needed for an Appraiser’s license. It was then that she responded to an ad for a position in Carver County (Thanks Angie!). After being a Staff Appraiser from 2003 to 2005 for Carver County she was hired as an Assessor II from 2005 to 2013 at Kandiyohi County. She has held the position of Kandiyohi County Assessor for about 4 months. Val says that she has an awesome staff. There is one Assessment Technician and five Staff Assessors. Many are fairly new and are very willing to learn and grow with their department and in the assessing field. The staff with more experience has been excellent mentors, willing to share their knowledge. Experience in the office ranges from 4 months to 9 years. Additionally, there are four local assessors in Kandiyohi County. Val has been a member of MAAO since 2006 and she has served on the Education Committee. Val and her husband David have been married for 33 years. They have two children, Joe 29 and Jennifer 26, and two grandchildren, Brooklyn, 3½, and Jordan, 5. They enjoy spending time together at their cabin in Glenwood, MN.As far as memorable moments on the job go, she once found herself in a situation when she pulled into a rural residence. After parking her vehicle she saw a rather large dog on a log chain, but felt he wasn’t within striking distance. Apparently Val misjudged the length of his chain and he was not going

Let’s Get Acquainted, continued

to allow her to get back into the vehicle. All ended well - after several attempts to distract him, Val was able to return to her vehicle without being his lunch! See him in 5 …… doggy treat!Val’s most satisfying aspect of her job is when property owners thank her for doing a good job, even when they didn’t get the answer they wanted. She feels the biggest challenge of the assessment field is Minnesota’s weather. She states that we all have so many parcels to visit, and as you all know, our weather makes a point of making this as difficult as possible!When asked if she could change anything in the property tax system, she states she is too new in her position to say much. Although, I’m sure she will have plenty of ideas in the future as she plans to keep working in the assessment field for a long time. So there you have it, everything you wanted to know about our newest Assessors. With their extensive experience and dedication to their careers, I can’t help but think how fortunate Minnesota is to have these women working in the assessment field. Congratulations

Ladies!

WishingEach of You

ASuccessful

CareerAs

CountyAssessor

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Valora Svor

Valora Svor


we were using field card folders, gathering data in the field, and taking photos of the property. From this, we brainstormed ways to do these things with a mobile device.The process of brainstorming a workflow was more difficult than we first thought, as appraisers have a wide variety of expectations for a mobile device. With regard to this, choosing a mobile device was also difficult, as there are all shapes, sizes, and varieties out in the market. The first major consideration was the operating system of the tablets in question. Currently, Apple offers iPads with the IOS operating system, and numerous venders offer both Android (Google) and Windows (Microsoft) tablets in multiple sizes and capabilities. Also important was the size and weight of the device – we needed something relatively small and light, but also with the durability and readability to be practical for use in the field. While iPads come in two sizes, Android and Windows devices come in numerous sizes ranging from 7 to over 15 inches. At our time of purchase, our primary concern was keeping costs down, andApple’s iPad offered the best way to quickly and cost-effectively get out in the field. The iPad was the dominant tablet on the market, offering the best price for battery life, weight, and choice

Over the past 9 months, the Stearns County Assessor’s Office in conjunction with our GIS department has been piloting a project to use mobile devices in the field. As we talked with other counties, we have seen increasing interest in the use of mobile devices in the assessment process. Counties are looking at using this technology to streamline practices, increase productivity and accuracy, and eliminate paper. In addition, the ability to pair CAMA data with GIS and mapping data allows appraisers to more easily locate equalization issues and visually compare aerials of various properties. As technology in the mobile arena continues to progress rapidly, new uses for these devices present opportunities that previously were not possible.

Getting StartedInitially, our goal at Stearns County was simply to get out in the field with a mobile device with as little change as possible to the workflow in the office. Change is difficult, so we hoped that the more we could initially keep the same, the better the project would eventually be received. In addition, we wanted to incur as little expense as possible. We knew that some amazing software exists that could be catered to do what we need but having a vendor customize software can get very expensive. Instead, we looked at how

of accessories. Except in extreme cold conditions, iPads give us 7 to 8 hours of battery life in the field, with car changers making them last even longer. After equipping them with cases and screen protectors, we have not had any issues with durability. Looking at the market today, the iPad still seems to be the tablet of choice for our particular workflow, but the competition is closing in rapidly. Since we knew that our needs may change in the future, our process works well on the iPad but can be adapted to work with numerous devices, which made the initial choice of device somewhat less critical.

The AppsFirst, our use of the iPad is based on two applications: a PDF editor and a GIS-based mapping app. After trying out several PDF editing apps, we settled on PDF Expert ($10) by Readdle. It comes with advanced PDF annotation and editing capabilities and is simple to use. Over the course of our project, we have used two main GIS/mapping applications: ArcGIS and Collector for ArcGIS (both free) by ESRI. As I will explain below, we started out with the basic ArcGIS app, but we are moving towards using the Collector, and it will likely be our GIS/mapping app going forward.

There’s An App

For That...

Written by Markus Yager, CMAStearns County

Feature


The ProcessBecause of the use of the PDF editor and mapping apps on the iPad, our current process effectively has two elements. First, our use of PDF field cards begins as it did when we used paper copies – we print the cards. However, instead a selecting the usual printer, we use what is known as a “PDF printer,” which is effectively a program that acts as a printer and saves a digital copy of whatever would normally have printed. With help from our Information Services Department, we found doPDF, a free PDF printer. This enables us to create the PDF copies of the field cards, just as we previously did physically. One limitation of our CAMA system that we are currently trying to overcome is the need to produce these field cards individually. While this printing is somewhat time-consuming, we still see a time savings compared to physically pulling field cards from a file drawer.Once we have the PDF copies of field cards, the next step is to get them on the device. After looking at methods of wired syncing and directly loading the files on the device, we found that “cloud-based” syncing using Dropbox (free basic account) best meets our needs. In short, Dropbox keeps every file updated across multiple devices, from an iPad to a Windows computer. When you install the app, it puts a “Dropbox” folder on your desktop that can be used just as any other folder on your computer. Any file that you put in this folder is available to you through the PDF Expert app on an iPad. When connected to the internet, any change in a document updates the document stored on the iPad, the internet, and the document stored on the office computer. This is extremely useful, as we are effectively looking at the same file (always the most current version) whether we are on our iPads or our computer back in the office. With the power of Dropbox, the PDF Expert app can be set up to access the files stored in the Dropbox folder whether we are online or offline. If for some reason we do not have a cellular data connection, the next time we use the app and have a connection the changes will update the field cards. This means we always have the most recently edited PDF of our field cards, and the edits sync automatically.Editing the PDF field cards using PDF Expert is a simple yet versatile process. The most common way we edit them is using

the digital pen tool to draw and write using a finger or a stylus. This allows us to check off the information that is correct, cross out what is incorrect, and write any changes as we would on a paper copy. Drawing on diagrams is similar - by using a finger or stylus we are able to draw as easily as we would on paper. In addition to drawing and writing, there are several other options for input, including voice memos, on-screen keyboard typing, images, and “stamps.” Stamps allow you to create a digital stamp for information that is repeated, such as an appraiser’s initials or date viewed. Each appraiser is able to use the features that work for them, giving flexibility while maintaining all the information in the easily accessible PDF format. Overall, this app works great for our purposes.As the information gets recorded and changes get noted on the PDF field card, the second aspect of our workflow is the GIS/mapping application. In its simplest form, the ArcGIS app gives a parcel map with owner names and our latest aerial imaging. In addition, the GPS capabilities of the iPad allow our locations to be shown on the map. When we launched this project, the original use of the map was simply to verify the parcel we were viewing, using our GPS location to see which parcel we were on. As we became more comfortable and proficient using the iPads, we have begun to take pictures with the device and tie these photos to a GPS point. This helps significantly cut the time it takes to process the photos in the office. By doing this, our GIS department can automatically assign a parcel number based on the GPS location of the photo, saving us time in the office and improving the accuracy and usefulness of our property photos. As we move towards use of the Collector app, we see potential with tying permit information and other useful features to the map with the ability to edit this information on our iPads.

Evaluating Where We Are AtOverall, every appraiser in our office who has tried the mobile device has been impressed at its capabilities and saw the benefits of taking the iPad out in the field. One of the unexpected benefits has been the desire to better organize and plan prior to going out in the field, making field work much more efficient. The convenience and efficiency of walking out the door with only one device is a major benefit. As more

appraisers take the device out in the field, more improvements to productivity are found and worked into the process, making the project a continually improving concept. Currently, four appraisers in our office are working full-time with iPads, with plans to expand to eight by mid-year.Still, the workflow that we have adopted is not perfect. Direct data input that could be uploaded into our CAMA system would potentially save much more time, eliminating the need to effectively touch the data twice. Also, in the far remote or lowland regions of the county, at times we cannot get a strong enough data signal to sync, upload the pictures, and access the GIS/mapping data. However, these instances were surprisingly rare, and the benefit of the PDF field card approach means that the field cards can be loaded onto the iPad and accessed with or without connection. In addition, in the near-future the Collector app for the iPad promises to allow disconnected viewing and editing for the GIS/mapping applications, eliminating perhaps the major weakness of our setup.Ultimately, there is much more we would like to do with mobile devices such as iPads in the field. We are looking into the ability to quickly and simply create custom maps that show permits or even our quintile properties that need to be checked, offering real-time updating of when the appraiser has completed their field work. In addition, connecting the PDF field cards with the map would make pulling up the correct info as easy as tapping on a parcel. As we continue to experiment with these devices and fine-tune our workflow, more ideas continually emerge about the possibilities of a future mobile device. Support from key personnel and management has been critical, as Gary Grossinger and Jeff Johnson allowed our project team to experiment and test the iPads and encouraged participation from the office in the project. Appraisers in the office such as Randy Lahr, Steve Chmielewski, and Kathy Korte helped test the devices and provided valuable feedback, and support from our GIS department has been critical to our success as well. In retrospect, the experience of using a device out in the field and finding out first-hand what is possible and what needs work has been the most beneficial aspect of the project, and we are well positioned to have a successful future for mobile device usage in the assessment process.

There’s An App For That, continued _______________________________

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Tax Court Abstract

Submitted by Jake Pidde, AMACommercial Appraiser

City of Plymouth

Recent Developments in Tax Court

Interpreting “disclosure of the facts or data underlying the appraiser’s opinion”

Each written appraisal will serve as the authoring appraiser’s direct testimony at trial. Consequently, in accordance with Minn. R. Evid. 705, the court hereby requires disclosure of the facts or data underlying the appraiser’s opinion, either as part of the appraisal or through a separate document or collection of documents served (not filed) together with the appraisal.

What does the Court mean by “disclosure of facts or data underlying appraiser’s opinion”?

Publically-Available Documents: If appraisers rely on data from publically available documents accessible to both par-ties, a full citation to the source document (author, title, volume, date, publication, page number) counts as “disclosure.”

Non-Publically-Available Documents: Where facts or data come from a document that is not publically available, such as a private study, the appraiser must provide a copy of the source document itself.

Interviews: The appraiser must name the person interviewed and furnish any notes of the interview or materials obtained from the interviewee.

What if I base my opinion on my experience as an appraiser?

If an appraiser bases an opinion on general experience, there are no underlying facts or data to disclose.

What if I base my opinion on my experience as an appraiser?

“However, an appraiser who bases his opinion on nothing more than general experience risks having this opinion reject-ed as unsupported or subjective, and hence lacking in foundation reliability. . . If the appraiser cannot show foundational reliability, the appraiser risks that portion of their testimony stricken as speculation or conjecture.”

What if I didn’t rely on information that I have in my possession?

There is no need to disclose it.

Court’s Final Thoughts:

An opinion shown to be well supported by underlying facts and data can prove remarkably helpful. At the other end of the spectrum, a complete absence of support can render an opinion entirely unhelpful and even subject to exclusion.

(printed with permission from Hennepin County)


owners, thinking beyond patios and decks, are adding living spaces that have the feel and function of an indoor room. These casual gathering spaces boast such features as outdoor kitchens, audio systems, fire pits, and fireplaces. Portable heaters are also seen in these outdoor living spaces to accommodate Minnesota’s climate.

4) Accessible home Design: As home owners build, they are also thinking about the future. They are no longer installing spiral staircases, sunken living rooms, or those high cabinets that are hard to reach. We’re seeing spacious, open designs that allow family members with physical limitations to move around with ease and home owners to age in place. These features, however, don’t necessarily convey that “institutional look”: kitchen counters of different heights for wheelchair access, wide doors and hallways that permit adequate room for walkers and wheelchairs. 5)Lots of Storage: Newer homes incorporate walk-in closets, storage rooms, and lots of cabinets. Garages are also getting larger to accommodate more storage (and more cars).

6 ) A u t o m a t e d C o n t r o l s : A s computerization costs continue to decrease, it’s becoming more affordable to regulate controls such as heating, air conditioning, security, electronics and even lighting through an electronic device. The iphone, ipad or ipod can be used to control more than 80 different devices around the house, making it easy to manage things even when you’re not home.

7)Green Products: More and more

After searching several magazines and numerous websites, I compiled a list of the top trends for 2014 that seem to be applicable to Minnesota. What I found during this research, however, was some redundancy through the years as changes in the Home Building Industry have a tendency to move slowly, and develop over time. Still, these trends do help put things in perspective for assessors, as there is a direct correlation between current designs, current styles, and selling price.

1) Flexible Floor Plans: One of the major trends in home building in recent years has been toward more open and flexible floor plans. More households are becoming multi-generational. With this in mind, more rooms are being built with the ability to change as needed. What is now used as an office or den can be easily converted to a bedroom if grandparents or boomerang children move in. Additionally, many newer homes include “bonus” rooms that have the capability to be converted as the needs of the homeowner changes.

2) Stylish Kitchens: The transitional style kitchen, kind of a mixture of traditional and contemporary, has become very popular. This style doesn’t stray too far from the familiar, yet many feel that it ages well because you can randomly add modern touches that reflect current styles: dark-stained or painted finishes rather than natural oak, modern tile choices, islands, stainless steel appliances.

3) Outdoor Living Spaces: This trend actually began a few years ago and it continues to grow in popularity. Home

sustainable products and materials are being incorporated into the home. Home owners are making environmentally friendly choices – especially when it comes to paints, adhesives, countertops, and flooring. Reclaimed wood and stone products are also making their way into our homes.

8) Energy and Water Efficiency: Products such as low-water toilets and sinks, high efficiency furnaces, energy efficient appliances, and improved insulation are being incorporated into homes in an effort to conserve energy and water. We’re also seeing more solar panels as an alternative energy source.

9) Themed Designs: After years of seeing neutral colors in every room of the house, themed decorating is making a comeback. Themes range anywhere from Asian-inspired homes to nautical and western themed rooms. Even the legendary “Man Cave” and the garage are taking the shape of a memorabilia sports bar.

10) handcrafted Elements: Many home owners are looking for a unique element to enhance their home. Hand-crafted or artistic pieces are being added for a more personalized touch.


Written By Jamie Freeman, SAMAClearwater County


EE

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(Wikicommons)


Meet Minnesota’s New SAMA & AMA Designees

Written by Jake Pidde, AMACity of Plymouth


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Laura Fridgen Laura Fridgen, Ramsey County, was awarded the SAMA designation in November, 2013. Her education includes: Assessment Laws History and Procedures, Techniques of Mass Appraisal (Course H), Basic Income Approach to Value, Income Approach to Valuation, Assessment Administration (Course K), and USPAP. Laura’s Residential Demonstration Narrative passed the Grading Committee in January 2002. Laura had a successful oral interview with the Board in February 2002. She passed the Income Property Case Study Exam in August 2013. Laura has 16 years of assessment experience. Congratulations to you Laura!

Alex GuggenbergerAlex Guggenberger, Anoka County, was awarded the SAMA designation in November, 2013. His education includes: Assessment Laws and Procedures, Bachelor of Science Degree in Real Estate from St. Cloud State University, Mass Appraisal Basics, Income Approach to Valuation, IAAO Assessment Administration and USPAP. Alex had a successful oral interview with the Board in January 2013. He passed the Income Property Case Study Exam in August 2013. Alex has five years of assessment experience. Congratulations to you Alex!

Laura hacker

Laura Hacker, Sibley County, was awarded the SAMA designation in November, 2013. Her education includes: Assessment Laws, History and Procedures (Course A), Bachelor of Science Degree in Real Estate from St. Cloud State University, Techniques of Mass Appraisal (Course H), Income Approach to Valuation, Assessment Administration (Course K) and USPAP. Laura had a successful oral interview with the Board in December 2005. She passed the Income Property Case Study Exam in October 2013. Laura has 15 years of assessment experience. Congratulations to you Laura!

Donald LovstadDonald Lovstad, Washington County, was awarded the SAMA designation in November, 2013. His education includes: Assessment Laws, History and Procedures (Course A), ProSource 101 – 104, Mass Appraisal (Course H), Basic Income Approach to Valuation (Course J), Income Approach to Valuation, Assessment Administration (Course K) and ProSource USPAP. Donald’s Residential Demonstration Narrative passed the grading committee in September 2003. He had a successful oral interview with the Board in October 2003. Donald passed the Income Property Case Study Exam in May 2010. Donald has 17 years of assessment experience. Congratulations to you Don!


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SAMA’s & AMA’s, continued

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David SelbitschkaDavid Selbitschka, Sherburne County, was awarded the SAMA designation in November, 2013. His education includes: Assessment Laws and Procedures, ProSource Appraisal 101 - 104, Mass Appraisal Basics, Basic Income Approach to Value, Income Approach to Valuation, MN Assessment Administration and ProSource USPAP. David’s Demonstration Form Appraisal report passed the grading committee in July 2008 and he passed the Residential Case Study Exam in May 2013. David had a successful oral interview with the Board in May 2013. He passed the Income Property Case Study Exam in October 2013. David has 8 years of assessment experience. Congratulations to you David!

Janelle DisrudJanelle Disrud, City of Maple Grove, was awarded the AMA designation in November, 2013. Her education includes Assessment Law and Procedures (Course A), Residential Appraisal (Course B), Mass Appraisal Basics (Course H), Basic Income Approach to Value, Income Approach to Valuation, Professional Development Programs in Assessment and Appraisal: Management and Supervision and USPAP. Janelle’s Demonstration Form Appraisal report passed the grading committee in May 2013 and she passed the Residential Case Study Exam in July 2013. Janelle has 12 years of assessment experience. Congratulations to you Janelle!

Liz LundLiz Lund, Roseau County, was awarded the AMA designation in November, 2013. Her education includes Assessment Law and Procedures, Basic Appraisal Principles, Basic Appraisal Procedures, Mass Appraisal Basics, Basic Income Approach, Income Approach to Valuation, MN Assessment Administration, IAAO Assessment Administration (elective) and USPAP. Liz’s Demonstration Form Appraisal passed the grading committee in May 2013 and she passed the Residential Case Study Exam in August 2013. Liz has 3 years of assessment experience. Congratulations to you Liz!

Beth KautzBeth Kautz, Sherburne County, was awarded the AMA designation in November, 2013. Her education includes Assessment Laws History and Procedures (Course A), Appraisal Principles, Residential Appraisal Procedures, Mass Appraisal Basics, Basic Income Approach, Income Approach to Valuation, Assessment Administration and USPAP. Beth’s Demonstration Form Appraisal report passed the grading committee in January 2001 and she passed the Residential Case Study Exam in May 2013. Beth has 23 years of assessment experience. Congratulations to you Beth!

Alan KampfAlan Kampf, Ramsey County, was awarded the AMA designation in November, 2013. His education includes Assessment Law and Procedures (Course A), ProSource Appraisal Practices, ProSource Appraisal Principles, Mass Appraisal Basics, Basic Income Approach to Value, Income Approach to Valuation, MN Assessment Administration and USPAP. Alan’s Demonstration Form Appraisal report passed the grading committee in February 2012 and he passed the Residential Case Study Exam in June 2012. Alan has 8 years of assessment experience. Congratulations to you Alan!

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Stacy honkompStacy Honkomp, Douglas County, was awarded the AMA designation in January 2014. Her education includes Assessment Laws History and Procedure (Course A), Appraisal Principles, Appraisal Procedures, Mass Appraisal Basics, Basic Income Approach, Income Approach to Valuation, MN Assessment Administration and USPAP. Stacy’s Demonstration Form Appraisal report passed the grading committee in October 2013 and she passed the Residential Case Study Exam in January 2014. Stacy has 9 years of assessment experience. Congratulations to you Stacy!

Marvin DeickMarvin Deick, Ramsey County, was awarded the AMA designation in January 2014. His education includes Assessment Law and Procedures (Course A), Residential Appraisal (Course B), Mass Appraisal (Course H), Income Approach to Valuation, IAAO Mass Appraisal of Income-Producing Property, MN Assessment Administration and USPAP. Marvin’s Demonstration Form Appraisal report passed the grading committee in March 2011 and he passed the Residential Case Study Exam in September 2013. Marvin has 27 years of assessment experience. Congratulations to you Marvin!

Kevin ScheideckerKevin Scheidecker, Otter Tail County, was awarded the AMA designation in January 2014. His education includes Assessment Laws and Procedures, Appraisal Principles, Basic Appraisal Procedures, Mass Appraisal Basics, Basic Income Approach, Income Approach to Valuation, MN Assessment Administration, General Appraiser Market Analysis Highest & Best Use (elective) and USPAP. Kevin’s Demonstration Form Appraisal report passed the grading committee in July 2012 and he passed the Residential Case Study Exam in August 2012. Kevin has 3 years of assessment experience. Congratulations to you Kevin!

Robert SheehanRobert Sheehan, Ramsey County, was awarded the AMA designation in January 2014. His education includes Assessment Laws, History and Procedures, Residential Appraisal Principles, Residential Appraisal Procedures, Mass Appraisal Basics, Basic Income Approach to Value, Income Approach to Valuation, MN Assessment Administration and USPAP. Robert’s Demonstration Form Appraisal report passed the grading committee in March 2013 and he passed the Residential Case Study Exam in July 2013. Robert has 13 years of assessment experience. Congratulations to you Rob!

Mike harveyMike Harvey, St. Louis County, was awarded the AMA designation in January 2014. His education includes Assessment Laws and Procedures, Appraisal Principles, Appraisal Procedures, Mass Appraisal Basics, Basic Income Approach to Value, Income Approach to Valuation, MN Assessment Administration and USPAP. Mike’s Demonstration Form Appraisal report passed the grading committee in December 2013 and he passed the Residential Case Study Exam in November 2013. Mike has 4 years of assessment experience. Congratulations to you Mike!

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Chris OddenChris Odden, Todd County, was awarded the AMA designation in January 2014. His education includes Assessment Laws and Procedures, Residential Appraisal Principles, Residential Appraisal Procedures, Techniques of Mass Appraisal (Course H), Basic Income Approach to Value, Income Approach to Valuation, Management & Supervision and USPAP. Chris’s Demonstration Form Appraisal report passed the grading committee in January 2014 and he passed the Residential Case Study Exam in December 2013. Chris has 8 years of assessment experience. Congratulations to you Chris!

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To recognize the accomplishments of new

AMA and

SAMA designees, we are spotlighting them as they are awarded by the State Board of Assessors.

Are you a new designee? Get your photo ready!



State Board of Assessors Meeting MinutesProvided by Bobbi SpencerMinnesota Department of Revenue

January 27 & 28, 2014 St. Michael City Center Chairperson Steve Sinell convened the meeting at 9:30 am.

Dave Marhula was unable to attend.

Board members in attendance were: Keith Albertsen Brian KoesterMike Amo Gregg LarsonJane Grossinger Steve Sinell Jon KlockziemDeb Volkert

Minutes of the November 19, 2013 meeting were reviewed. Brian Koester moved to approve the minutes. Mike Amo seconded the motion. The motion carried.

Election of Officers

Nomination for Vice Chair: Keith Albertsen made a motion to nominate Brian Koester for vice chair, that all nominations cease and a unanimous ballot be cast. Mike seconded the motion. The motion carried. Brian Koester is the Vice Chair.

Nomination for Chair: Brian Koester made a motion to nominate Steve Sinell as Chair, that all nominations cease and a unanimous ballot be cast. Jane seconded the motion. The motion carried. Steve Sinell is the Chair.

Grading Committee Appointments

Form Report Grading Committee: Brian Koester made a motion to reappoint all form report committee members, Kyle Holmes, Bob Wilson, Kim Jensen, Bill Effertz, Patrick Chapman, Tina Dietrich-Von Eschen, Rebecca Malmquist and Keith Kern, with Teresa Mitchell as Chair. Deb Volkert seconded the motion. The motion carried.

Narrative Grading Committee: Deb Volkert made a motion to reappoint all narrative committee members, Teresa Mitchell and Kim Jensen, with Bob Wilson as Chair. Keith Albertsen seconded the motion. The motion carried.

Updates

A letter was sent out to Teresa Mitchell on Tuesday, December 17, 2013 with the board’s decision on her request for approval and endorsement of graders and grading requirements for the Form Report.

Deb Volkert contacted the Department of Commerce requesting information related to how Commerce reviews courses; what is reviewed, how often and how much time is spent on review. Response is in board members packets.

The Grading Request for the Form Report, Grading Request for the Demonstration Narrative or the Tax Court Narrative and the Request Form for Course Approval have been revised and are on the Minnesota State Board of Assessors website.

Discussion Items:

Grader Payments: Brian Koester made a motion to increase the payments to the graders from $35.00 to $80.00 for form reports and from $60.00 to $140.00 for narratives. Jane Grossinger seconded the motion. The motion carried.

Interviews: The board discussed options for handling the expected increase in the number of interviews.

Code of Conduct: Review proposed wording of new section 1(e) on Code of Conduct and Ethics document. Mike Amo made the motion that the proposal to change the Code of Conduct be withdrawn. Deb Volkert seconded the motion. The motion carried.

CEhs for Seminars involving Vendors: The board discussed seminars with vendor involvement and determined that more details are needed when seminars are submitted to the board for approval so the board can make an informed decision.

Elective Suggestions: The board discussed the need to develop a list of courses that have been approved for use as an elective. Keith Albertsen made a motion to have the board provide a list of vendors and examples of courses for the elective. Brian Koester seconded the motion. The motion carried. The list will be on the board’s website.

Jurisdictional License Level Appeals: The board discussed the appeals they had previously received via email and other feedback, including comments from Teresa Mitchell, grading committee chair. Keith Albertsen made a motion to rescind the portion of the March 2013 motion that required all districts be CMAS by July 1, 2016. Brian Koester seconded the motion. The motion carried.

An appeal was received from one county concerning the 2019 changes. The board will request further information from the county before making a decision regarding that appeal.

Review Proposed Rule Changes: The board began reviewing potential rule changes, including many that have come from previous discussions. As part of the discussion, Mike Amo made a motion that the AAS designation be removed as an equivalency to the income narrative requirement for the SAMA designation, and that the AAS be added as an equivalency to the residential narrative requirement for the AMA designation. Keith seconded. The motion carried.Online Continuing Ed: The board had a general discussion related to online courses.


State Board, continued

No policies were changed as a result of the discussion.

The board recessed at 4:20pm.

Tuesday, January 28, 2014

Chairperson Steve Sinell reconvened the meeting at 9:30 am.

Discussion Items (cont. from Monday)

Data collectors: The board continued the discussion of data collectors, especially if used for income-producing property. General consensus was that data collectors make subjective decisions and therefore should be licensed within three years for non-income producing property and must be licensed as income qualified for income-producing property. The board feels that some education/guidelines are necessary for data collectors as they are representing the assessment community. Brian Koester will talk to MAAO regarding the board’s desire to see an on-line course or a Power Point that could be used by counties or cities to provide the basics for data collectors.

Experience Policy: Brian Koester made a motion to change the reference in the experience policy for an initial assessor’s license application from two years to three years for either technical/clerical assessment-related or appraisal experience. Gregg Larson seconded the motion. The motion carried.

Approved Continuing Education hours Requests

Dave Anderson requested CEH’s for the 2013 Senior Housing Seminar that was held on November 1, 2013 sponsored by Minnesota Real Estate Journal. The board’s continuing education committee approved Dave Anderson’s request for 4 continuing education hours via email on November 26, 2013.

Joshua Hoogland requested CEH’s for the 2013 Office Summit that was held on December 9, 2013 sponsored by Minnesota Real Estate Journal. The board’s continuing

education committee approved Joshua Hoogland’s request for 4 continuing education hours via email on December 9, 2013.

Joshua Hoogland requested CEH’s for the 2014 Apartment Summit that will be held on January 10, 2014 sponsored by Minnesota Real Estate Journal. The board’s continuing education committee approved Joshua Hoogland’s request for 4 continuing education hours via email on December 17, 2013.

Joshua Hoogland requested CEH’s for the Commercial Real Estate Valuation & Appraisal Forecast Summit that will be held on February 5, 2014 sponsored by Minnesota Real Estate Journal. The board’s continuing education committee approved Joshua Hoogland’s request for 4 continuing education hours via email on January 16, 2014.

Kelly Schomer – requested CEH’s for the following McKissock online courses; Essential Elements of Disclosures and Disclaimers, Land and Site Valuation and Residential Appraisal Review. The board’s continuing education committee approved Kelly Schomer’s request for Essential Elements of Disclosures and Disclaimers for 5 continuing education hours, Land and Site Valuation for 7 continuing education hours and Residential Appraisal Review for 7 continuing education hours via email on January 23, 2014.

Denied Continuing Education hours

Adeline Olson requested CEH’s for the Dealing with Difficult People seminar being held on multiple dates in March 2014 sponsored by Career Track. The board’s continuing education committee denied the course via email on January 14, 2014 because the seminar was not specific to the assessment field.

Request for Elective Course

Jon Van Nurden requested the board to review the course description for Course 101 Advanced class/Special Topics Workshop at the Unitary Appraisal School sponsored by

WSATA to be used as an elective course. Mike Amo made the motion to approve the course as an elective. Brian Koester seconded the motion. The motion carried.

Request for Continuing Education hours

Ehlers & Associates, Inc requested the board to review the Ehlers Minnesota Public Finance Seminar that will be held on February 6 – 7, 2014 and sponsored by Ehlers & Associates, Inc. for continuing education hours. Deb Volkert made a motion to approve the seminar for up to 6 continuing education hours per day as long as a minimum of 3 hours is documented, for the following sessions only: TIF and Abatement 101, Developer Roundtable Housing Trends, TIF 201, TIF Case Studies, The Future of Retail, Assessor’s Update, Special Legislation Case Studies (TIF), and Water Resource Impact on Development. Mike Amo seconded the motion. The motion carried.

Application for Certified Minnesota Assessor

Lori Bistodeau, Sherburne County, applied for the Certified Minnesota Assessor license. Her education includes Assessment Laws and Procedures, Basic Appraisal Principles, Basic Appraisal Procedures and Mass Appraisal Basics. Assessment experience since January 2011.

Brian Israelson, Local Assessor in Hubbard County, applied for the Certified Minnesota Assessor license. His education includes Assessment Laws and Procedures, Basic Appraisal Principles, Basic Appraisal Procedures and Mass Appraisal Basics. Assessment experience since January 2011.

James Pietila, Itasca County, applied for the Certified Minnesota Assessor license. His education includes Assessment Laws and Procedures, Basic Appraisal Principles, Basic Appraisal Procedures and Mass Appraisal Basics. Assessment experience since February 2013.

Vilma Topuzi, Active Military, applied for the Certified Minnesota Assessor license. Her education includes Assessment Laws


State Board, continued

and Procedures, Basic Appraisal Principles, Basic Appraisal Procedures and Mass Appraisal Basics. Assessment experience since June 2012.

Keith Albertsen made a motion to award the Certified Minnesota Assessor license to Lori Bistodeau and Brian Israelson effective January 28, 2014; James Pietila effective February 19, 2014. Mike Amo seconded the motion. The motion carried. Vilma Topuzi’s application was tabled until she is informed of the possible consequences of obtaining the Certified Minnesota Assessor license while unable to gain additional assessment experience. Appointments with the Board

Stacy honkomp, Douglas County, m