44478 HC equal eyes2Amaao.memberclicks.net/assets/documents/fall2005vo27num102.pdfFALL 2005 EQUAL EYES 3 Announcements Next Issue Deadline Property Valuation Course Thief River Falls

FALL 2005 EQUAL EYES 1

EQUAL EYESFall 2005 Volume 27, Number 102

Official Publication of the Minnesota Association of Assessing Officers

Meeting Appraiser QualificationsWhat You Need To Know About New AQB AppraiserQualifications for Certificationby Jim Todora, CAE, MAI

Fort SnellingA Jewel Of Living Historyby Brenda Hansford and Leo S. Montes

St. Cloud State University andMAAO...a Winning Partnership

Anchorage, Alaskaby Jan Olsson, AMA, RES

IAAO 2005

Also Inside:

2 EQUAL EYES FALL 2005

Fall 2 0 0 5CONTENTS

EQUAL EYES

FeaturesJim’s Story,Borrett.............................................................15Fort Snelling,Hansford & Montes.....................................20IAAO 2005,Olsson.............................................................22SCSU and MAAO..........................................................24Meeting Appraiser Qualificiations,Todora.....................33

DepartmentsAnnouncements..................................................................3Boards,Directors,Chairs,and Representatives........................4President’s Message, Armstrong................................................6Commissioner’s Comments.......................................................7Website Update, Sanders..............................................................8In My Opinion, Hacken.................................................9In My Opinion, Moreland.................................................10MAAP Update, Hollerman & Meyer..........................................12Transitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13Views You Can Use, Betz..........................................14Dear John, Hagen...................................................................16IAAO Update, Peterson..............................................................18Featured Residential Property, Thomas................................19Let’s Get Acquainted, Cote..................................................27Out of the Past, Wojcik.................................................30State Board of Assessor, Lundgren............................................31On the Go with MAAO.........................................................38As I See It, Malmquist............................................................43

Volume 27, Number 102

Article to suggest, letter to theEditor, or any othercorrespondence forEQUAL EYES?

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

Visitthe MAAO website at:www.mnmaao.org

The statements made or opinions expressed by authors inEqual Eyes do not necessarily represent a policy position of

the Minnesota Association of Assessing Officers.

Fort Snelling

Read more Page 20

On the Cover


Announcements

Next Issue Deadline

Property Valuation CourseThief River Falls October 19-20, 2005St. Cloud October 24-25, 2005Fergus Falls October 25-26, 2005Slayton November 1-2, 2005Marshall November 7-8, 2005

Website ReminderUpdate your address, phone number,

and email address at www.mnmaao.org

December 1, 2005email articles [email protected]

Conference Calendar

2006 Summer SeminarsSt. Cloud May 24-25, 2006


EQUAL EYES

Jan Olsson, AMA, RESCity of PlymouthAssociate Editor

Nancy Wojcik, SAMACity of Brooklyn Center

Rebecca Malmquist, SAMACity of Minnetonka

Managing Editor, Chair

Michelle Cote, SAMAPolk County

Executive BoardPresident

David Armstrong, SAMALe Sueur County Assessor

88 S Park AvenueLe Center, MN 56057

507.357.8215 Fax [email protected]

First Vice PresidentWilliam Peterson, SAMA, CAE

Dakota County Assessor1590 W Highway 55Hastings, MN 55033


Second Vice PresidentRobert Wagner, SAMAPolk County Assessor

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


Secretary/TreasurerJudy Remer, SAMA

Bloomington Chief Commercial Appraiser1800 West Old Shakopee Road

Bloomington, MN 55431952.563.8707 Fax 952.563.4741

[email protected]

Past PresidentTom May, SAMA, RES

Hennepin County AssessorA-2103 Government Center

Minneapolis, MN 55487612.348.3046 Fax 612.348.8751

[email protected]

Region DirectorsRegion 1

Robert Pickett, SAMAFillmore County Assessor

[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 4Martyn Schmidt, SAMA

Crow Wing County Assessor218.824.1009

[email protected]

Region 7Robert Hansen, SAMA

Hubbard County Assessor218.732.3452

[email protected]

Region 9Nancy Bye, SAMA, CAEPlymouth City Assessor

[email protected]

Region 8JoAnn Kerian, SAMA

Marshall County Assessor218.745.5331

[email protected]

Region 6Connie Erickson, SAMA

Yellow Medicine County Assessor507.567.3628

[email protected]

Region 5Dean Champine, SAMALyon County Assessor

[email protected]

Editorial BoardMarci Moreland, CMA

Carlton County

Stephen Hacken, SAMAWinona County


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 ChairsAgriculturalRobert Anderson, SAMA325 N Sibley Ave NLitchfield, MN 55355320.693.5206 Fax 320.693.5440

EducationJudy Friesen, SAMAPO Box 248New Ulm, MN 56073-0248507.233.6609 Fax 507.359.1430

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 PlanningTom May, SAMA, RESA-2103 Government CenterMinneapolis, MN 55487612.348.3046 Fax 612.348.8751

MembershipCarol Schutz, SAMA629 N 11th StreetMontevideo, MN 56265320.269.7696 Fax 320.269.7412

NominatingThomas Dybing, SAMA304 S MarshallCaledonia, MN 55921507.725.5801 Fax 507.725.2647

Research and PlanningRobert Wagner, SAMA612 North Broadway, Ste 201Crookston, MN 56716-1452218.281.4186 Fax 218.281.3669

Rules and ResolutionsStephen Behrenbrinker, SAMA, CAE400 2nd St SSt. Cloud, MN 56301320.650.3352 Fax 320.255.7205

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

ScholarshipTom May, SAMA, RESA-2103 Government CenterMinneapolis, MN 55487612.348.3046 Fax 612.348.8751

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 AuctionRachel Freeman, CMAPO Box 8608Mankato, MN 56002507.389.8257 Fax 507.389.8344

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

Conference 2005Richard Toy, SAMA, CAERebecca Malmquist, SAMA14600 Minnetonka BoulevardMinnetonka, MN 55345952.939.8200 Fax 952.939.8243Tamara Doolittle, SAMAA-2103 Government CenterMinneapolis, MN 55487612.348.3046 Fax 612.348.8751


President’sMessage

MAAO President 2004-2005Dave Armstrong

Written by Dave Armstrong, SAMALe Sueur County Assessor

Well, it is September already and Beckyand Jan are asking for my equal eyesarticle - this summer has gone by too fast.

At the Department of Revenue’s tax lawreview this summer, John Hagen talkedabout new law that states, “Commissionerof Revenue, in consultation withappropriate stakeholders groups shalldevelop and issue two reports to thechairs of the house and senate taxcommittees. The reports shall include ananalysis of existing practices and providerecommendations, where necessary, forachieving higher quality and uniformassessments and consistency of propertyclassification. The first report will beissued on February 1, 2006, and willaddress the following property types:

1. Agricultural land including landenrolled in green acres (both high andlow value) and agricultural reserve;

2. Rural woodlands includingtimber, seasonal residential recreational,agricultural and residential property andlands used for the production of shortrotation wood crops;

3. Resort property including class1c (ma and pa resorts) and class 4cseasonal residential commercial resorts.”

John said that the Department of Revenueand MAAO will form committees to set

policy and procedures that will report tothe house, senate, and tax committeechairs. I have appointed the followingpeople to the committees:

Green Acres/Agricultural: Steve Hacken,Winona County; Jim Hallstrom, MartinCounty; Randy DeMarais, Wright Count;Marty Schmidt, Crow Wing County;Dean Champine, Lyon County; CarolSchutz, Chippewa County; Bob Moe,Ottertail County; Steve Carlson, PolkCounty; Gloria Pinke, Dakota County;and Bill Effertz, HennepinCounty.

Resorts: Pat Stotz, Mille Lacs County;Steve Kuha, Cass County; Ted Mershon,Cook County; Steve Skoog, BeckerCounty; Keith Albertson, DouglasCounty; Duane Ebbiginhausen, BeltramiCounty; and Bill Effertz, HennepinCounty.

Timber Woodlands: Tom Dybing,Houston County; Mel Hintz, St. LouisCounty; Dale Smith, Carlton County;Steve Kuha, Cass County; Bob Hansen,Hubbard County; and Don Holm,Clearwater County.

The second report will be issued onFebruary 1, 2007 and will address thefollowing property types:

1. Lands enrolled in state orfederal conservation programs includingConservation Reserve Program (CRP),Reinvest in Minnesota (RIM), andConservation Reserve EnhancementProgram (CREP).

2. Residential use propertiesincluding seasonal recreational andresidential homestead and non-homesteadproperty.

3. Commercial/industrial property.

Bill Peterson, President-elect, will bemaking appointments to thesecommittees.

Previously, the Executive Boardapproved MAAO taking over the week-long education courses and to have Dr.Mooney, of St. Cloud State University,rewrite courses B and H. At ourExecutive Board meetings on August 31and September 1, 2005, the boardapproved MAAO signing a contract withSt Cloud State University Center forContinuing Studies to facilitate all theweek-long courses for MAAO. SteveBrehrnbrinker was appointed as theliaison between MAAO and St. CloudState University. The Executive Boardalso approved setting up a reviewcommittee to work with Dr. Mooney onreviewing all week-long course content,and specifically rewriting courses B andH. The committee will consist of oneperson appointed by the Department ofRevenue, one person appointed by theState Board of Assessors, and one personappointed by the MAAO educationcommittee.

As in past articles, I am continuing topush everyone to go to our MAAOwebsite (mnmaao.org) to confirm thattheir member information is correct.MAAO is making a big push to do all ofour mailings, job postings, educationoffering, etc. over the internet.

This passed August I had the privilege ofattending the MAAP (MinnesotaAssociation of Assessment Personnel)conference at Grand Casino Mille LacsConvention Center. There are currently112 members which includes 14 cities, 42counties, the Department of Revenue,Independent Appraisers, and ComputerProfessionals Positions held by members

continued page 8


Commissioner’s CommentsSubmitted by Esme Evans

Commissioner of RevenueDan Salomone

I’ve often said that property tax assessorshave the toughest job of anyone involvedin administering the property tax. Theyare the embodiment of a tax that mostpeople hate, and few understand.

Most people think there’s a directrelationship between the value of theirproperty and the property taxes they pay.To them, it’s very simple: (a) if my valuegoes up, my property tax goes up; (b) ifmy taxes go up, that means more moneyfor local governments; (c) assessors arelocal government employees, so they aremotivated to overvalue my property—“Ipso Fatso,” as Archie Bunker often said.

We know that the relationship betweenvalue and tax is much more complex, andcertainly not always direct. But inproperty-tax politics, perceptions are justas important as reality, and often drivelegislation.

How else do you explain why Minnesota,a state that consistently ranks among thebest in how we manage our property taxsystem, the quality of assessors andassessments, collection and reporting ofsales and assessment data, and a host ofother key property tax measures, is nowbeing asked by the 2006 legislature toprepare a study on the quality anduniformity of assessments andclassification, and to develop and teach acode of conduct and ethics for all licensedMinnesota assessors?

It’s because our complex property taxbreeds confusion and distrust—andcomplaints to legislators, who dare notignore them.

It’s unfair that a few taxpayers can getsuch leverage and create the illusion of agroundswell movement. But this, too, is areality. It reminds us to tune in to how

sensitive taxpayers are about theirvaluations, to the importance of trying toget assessments “right,” to the fact thatthey are rarely 100 percent right, and thatthey are seldom right in the taxpayer’seyes. We can excel in all the technicalaspects of assessing, but if the taxpayersthink they’ve been snookered or badlyhandled, we all have a problem.

That’s why we plan to take thelegislature’s new mandates seriously. Yes,

we’re good—better than most—butthere’s always room for improvement.

Acting on this mandate, by February 1,2006, working with MAAO, the StateBoard of Assessors, and others, we willprepare a report on the quality, uniformity,and consistency of existing assessmentsand classifications, and makerecommendations for improvement. Thisfirst phase will cover agricultural land,

woodlands, and resort properties. ByFebruary 1, 2007, we provide similarinformation and recommendations forclass 4d property, lands enrolled in stateor federal conservation programs (CRP,RIM, CREP, etc.), residential useproperties, including seasonal-recreational and residential-homesteadand non-homestead property, andcommercial/industrial property.

Also by January 1, 2006, together we willdevelop and implement a code of conductand ethics for all Minnesota assessors.

The new code of conduct and ethics willincrease taxpayer confidence in what wedo, and hopefully will decrease theirsuspicions of us, and decrease thelikelihood of bad legislation. The studywill help improve the quality anduniformity of assessments, and may evenspawn some good legislation.


that include Assessment Specialist,Appraiser, Assessment Technical, DeputyAssessor, Office Manager, City Assessor,Technical Clerk and Local Assessor. Theannual $10.00 membership fee includes asemi-annual publication of “TheCommunicator” which informs membersof meetings and assessing news. I knowmy Assessment Technician is the heartand soul of our office and MAAP allowsme to send her to education training that

Website UpdateWritten by Bruce Sanders, SAMA, CAE

Acting City AssessorCity of Maple Grove

Information Systems Chair

President’s Message...from page 6

is very beneficial to her job. I wouldrecommend that all Assessor officesbecome a member of MAAP. ContactDeanna Hollermann [email protected] orby phone at 320-656-3692.

To the 111 people that attended theresidential case study exam seminar inMarch - keep working towards yourAMA and SAMA. In the years to come

we will need to replace a lot of retiringAssessors.

In a perfect world, all MAAO memberswould attend the fall conference (Oct. 9-12) at the Minneapolis MarriotSouthwest. I have come to know that thisworld is not perfect, but am hoping for atleast half of our members to be inattendance. Looking forward to seeingyou all there.

www.mnmaao.org

The Executive Board of the MinnesotaAssociation of Assessing Officers,recognizing the need to have an onlinepresence, has put up a website at http://www.mnmaao.org (maao.org would havebeen preferred but Massachusettsassessors got there first). TheInformation Systems Committee has beenresponsible for the development andmaintenance of the site.

The Committee consists of Chair BruceSanders, City of Maple Grove; TeresaMitchell, Dakota County; LaurieStruffert, Sherburne County; ByronSwart, Nobles County; Ray Shudy,Hennepin County; Tom Scherer,Hennepin County; and Mary Durward,Retired-St. Louis County. We solicitedproposals from several web developmentfirms. We found the proposal from WebDynasty to be the most responsive.

Web Dynasty created a site andmanagement system that allows forediting the content of the site fromanywhere there is internet access withoutthe necessity of learning web editingsoftware or HTML (hyper-text markuplanguage). After the initial roll-out of the

site, several improvements have beenadded:

· tracking of property taxlegislation, as well as other selectedbills, during the session, fromintroduction, mark-up, throughcommittee to ultimate disposal ofeach bill· the legislative summary afterthe adjournment of the legislature· online access to theMembership Directory· hard copy MembershipDirectory· links to the Department ofRevenue web site for assessorrelated topics· MAAO announcements as wellas other assessment/appraisalrelated organizations’, educationalofferings and conferences with linksfor registration and hotelinformation· future conferences with venueinformation· the introduction of theelectronic-only version of EqualEyes, MAAO’s award winningpublication.

· job opportunities· introduction of a ListServ thatallows the Membership Coordinator,or any other authorized member, toselectively mass email the entiremembership

There are still more improvements beingconsidered:

· the addition of a forum or blogfor exchange of ideas among themembership· the addition of a forum or blogto allow visitors to provide feedbackto MAAO

The Committee is intent upon improvingthe site and keeping abreast of advancesin web technology. The Committeeinvites comments and suggestions forimproving the site. The webmaster linkat the bottom of the home page will emailyour comments to us.

It is still imperative that members accesstheir profile in the Members Area andupdate their personal information tomaintain the integrity of the membershipdatabase.


In My Opinion...

Written by Stephen L Hacken, SAMAWinona County Assessor

Minnesota - The Land of 10,000Property Tax Exemptions

Property tax exemptions are becomingthe most difficult part of my career ascounty assessor. There are 25 pages inthe property administrator’s manualdedicated to exemptions. The last 20pages contain laws that have beenenacted since my arrival into the assessorworld in 1978.

Some of these relatively new lawsinclude native prairie, wetlands, sheltersfor victims of domestic abuse, satellitebroadcasting facilities, transitionalhousing facilities, agriculturalcontainment facilities, manure pits, icearenas, residential buildings ontemporary sites, agricultural historicalsociety property, JOBZ and a whole lotmore.

Currently, the city of Winona issomewhere between 28 and 30 per centtax exempt. Having two universities willdo that to a community. There is alsomuch parkland located in spots thatwould be prime for development. Wemust also be an awfully religiouscommunity as well as there are morechurches than I can count.

All of this exempt property is good forthe city’s bond rating. It does little,however, to expand the tax base.

Even with 25 pages of exemptions, mostof them are reasonably easy toadminister. They are for the most part“cut and dried” as to when the parcelsqualify for an exemption. I may not likethem, but I have never believed that myliking or disliking something influencedmy decisions on whether an exemptionwas justified or not.

I think the most difficult decisionsinvolve 272.02, Subdivision 7—purelypublic charity. The subdivision reads arefollows:

Institutions of purely publiccharity are exempt except …

Not of a lot to go off, is there?

North Star research Institute vs HennepinCounty in 1975 provided factors oftenused by the tax court when determiningwhether or not a property is entitled to anexemption. The following is a summaryof the North Star factors used in assistingwith the determination of exemptproperty.

(1) Whether the stated purpose ofthe undertaking is to be helpful to otherswithout immediate expectation ofmaterial reward;

(2) Whether the entity involved issupported by donations and gifts in wholeor in part;

(3) Whether the recipients of the“charity” are required to pay for theassistance received in whole or in part;

(4) Whether the income receivedfrom gifts and donations and charges tousers produces a profit to the charitableinstitution;

(5) Whether the beneficiaries of the“charity” are restricted or unrestrictedand, if restricted, whether the class ofpersons to whom the charity is madeavailable is one having a reasonablerelationship to the charitable objectives;

(6) Whether dividends, in form orsubstance, or assets upon dissolution areavailable to private interests.

Most of these items can be met by theorganizations seeking an exemption. Asan example, Central Lutheran Churchpurchases and operates a second-handstore in downtown Winona. A manager ofthe store is hired. Volunteer help andmoney is used to set up the store. Allprofits after expenses go to the generalfund of the church to be used for themission of the church. Some of themerchandise being sold is acquiredthrough donations. Persons of need areallowed to purchase items at less thanasking price or maybe at no cost.

I maintain that the church has likely metall six North Star factors in this scenario.But does it seem fair that the church willnot pay tax on a downtown building whenother storekeepers are paying propertytaxes of nearly 3 per cent of theirbuilding’s value each year? The ladyrunning her own privately owned secondhand store a block away probably doesnot think so.

I believe the legislature needs to moreclearly define what is a charity. I havesome suggestions to think about.

· Housing should not be taxexempt in any case. Even HRAhousing pays an in-lieu of taxeach year. Currently, servicessuch as police, fire protectionand utilities are provided at nocost to exempt housing parcels.This simply is not equitable.

continuted page 11

The statements made or opinions expressedby authors in Equal Eyes do not necessarily

represent a policy position of theMinnesota Association of Assessing

Officers.


In My Opinion...Written by Marci Moreland, AMA

Chief Deputy AssessorCarlton County

Editorial Board Member

It’s More Than Horsin’ Around

When it comes to rural property and theproper classification, it can be pretty cutand dry. Say for example, you see a herdof beef cattle in the pasture, you classifyit agricultural, a house and garage on asmall parcel of land, residential. You getthe picture. But how many of usappraisers have the difficult task ofclassifying property with the equinespecies. According to state statue, onlycommercial horse boarding/training ofhorses qualifies for the agricultural class.There have been some court casesrecently helping us to determine theproperty classification on ‘horse farms’.The most recent case: James G. & JaniceL. Mowry vs. County of Kanabec fromthe January 2005 issue of “MinnesotaLegal Registrar” states that the petitionerbred and raised horses, as well as grewhay which was sold to others thereforeproducing an agricultural product.The agricultural classification wasawarded to the petitioner is this case,excluding the house, garage, and oneacre.

However, what do you do with theproperty owner who breeds, raises, andresells his horses, but does not produceany agricultural product from the land??In Ramberg vs. County of Washington,(Minn. Tax Court, Feb. 5, 1991) is such acase where it states in the decision,“horses that are held solely for breedingand/or resale is similar to raising otherlivestock...Inherent in the term‘agricultural product’ is the idea that theanimal is being fed and kept for ultimatedisposition and not for interim use”.There is no case law to suggest that thehorse does not fit into the definition of“livestock”, therefore qualifying them for

the agricultural class on the property. Ifyou look under Minn. Stat. 31.59, subd.3, “Livestock” means cattle, horses,swine, sheep, and goats.” And then go alittle further under Minn. Stat. 273.13,subd. 23c, it says “Agricultural products”include: livestock, dairy animals, dairyproducts, poultry and poultry products,fur-bearing animals, horticultural andnursery stock...

As a horse breeder myself, I find the taskof classifying ‘horse farms’ trying.Where to draw the line?? According toIRS regulations, in order to claimSchedule “F” on your income tax with theraising of horses, you must have at least 3producers who have actually producedduring the preceding year in order toqualify. Producers being stallions andlactating mares. We have severalproperty owners who ask for theagricultural classification because theyhave two horses in the pasture, they ownabout 15 acres, so by rights they feel theyshould get the agricultural class. In myopinion, this is a hobby farm that doesnot qualify for the agricultural class forseveral reasons. 1) I look at the IRSrequirement of three producers; 2) I askthem if they file Schedule “F” on theirincome tax; and 3) What type of incomeor profit did they generate from horsesthe preceding year. If the taxpayercannot produce all three of theserequirements, then the agricultural classis denied.

I seem to always become the mediator inour assessor’s office when it comes toclassifying property for people who ownjust horses, and I always get asked: “Doyou receive the agricultural class?” I do.

We own 2 stallions, 5 lactatingbroodmares, and 4 show horses, own81.80 acres, and lease 150 acres of landfor hay and oats.Just for some general information, thehorse industry in Minnesota alone hasgrown considerably in the past 20 years.According to the American QuarterHorse Association of Amarillo, Texas,Minnesota ranks in the top 10 states withthe most registered quarter horses perstate in the nation. Other breeds such asthe American Paint Horse runs a closesecond, along with the Arabian HorseAssociation. Just in the past 5 yearsthere have been equine facilities erectedall over the state to host horse shows,sales, equine events, and clinics. Someof the most recent is the Rhino Arena,Hinckley; Jim Simon Arena, CannonFalls; Red River Valley Equine Center,Fergus Falls; and R&J Horse Sales,Verndale just to name a few. Thesefacilities are catering to a multi-milliondollar business: horses. Some of themonthly sales held at these facilities areselling horses for up to $50,000.00, andsome even more depending on breeding,training, and show record. The horseindustry can be and is a profitableadventure if you are willing to work hard.

The horse business has become one ofthe most popular adventures. Just innorthern Minnesota alone, there are horseshows for all ages from age 4 to 70, thatbegin in May and run until the WSCAChamp Show in September at St. Paul. Itis something that the whole family canenjoy and the cost is relatively cheaponce you get past the purchase of thetruck, trailer, and of course, the horse.

The statements made or opinions expressedby authors in Equal Eyes do not necessarily

represent a policy position of theMinnesota Association of Assessing

Officers.


In My Opinion, Hacken, continued· Properties operating as a retail

business, such as church ownedhealth clubs, movie theatres andused material stores that areowned by non-profits should paytaxes on their real estate thesame as the other businesses ontheir street.

· Group homes owned by non-profit agencies that receive thesame reimbursement for fees asdo privately owned homesshould not be exempt.

· Donations received need to besubstantial. I would go so far asto say a majority of the revenuefor a charity should come fromdonations. Constructing abuilding that is rented out andpays for itself with the rents Ithink belongs on the tax rollseven if the proceeds go to thegeneral fund of a non-profitagency.

If the legislature wants to give a morepreferential rate to certain properties that

perform functions that they see aspositive, so be it.

There have also been a number of recentcourt cases regarding exemptions. Ahealth club operated by a church wasruled as exempt, as was a movie theatreowned by a non-profit. I also had a caseon a student housing project that wasowned by the Winona State UniversityFoundation and was leased at a profit tothe university. The court ruled that thefoundation was a charity and the parcelwas exempt.

I currently have a pending case withHabitat for Humanity. They purchased abuilding in downtown Winona where theysell used building materials. They acquiremost of their product from housing beingrazed. I classified them as commercial.They feel that because the proceeds fromthe store go to furthering their mission,an exemption is warranted.

I am also dealing with a group called theParks and Trail Council. Thatorganization purchases land near state

parks and holds it until the state hassufficient finances to buy the land andadd it to the park. They have recentlyapplied for an exemption on the land,stating that they are a charity. A finaldecision has not been made on thisrequest.

There is really no financial reason forthese organizations to press for anexemption. Usually, they can find anattorney who will handle the case probono or for a minimal fee. If they win,they pay no taxes. If they lose, they paywhat they would have anyway.

Legislators are in a tough spot regardingexemption issues. Often the organizationslobby hard that need people will be hurtif the groups would be required to payproperty taxes.

Whether or not exemption regulations aretightened or loosened, I believe allassessors would benefit by more preciselanguage that would make exemptiondecisions easier and more consistent fromcounty to county.

The breeding, raising, and training ofhorses is a full time job. On a dailybasis, about 2 hours is spent every day onone horse for the conditioning andtraining to get this horse ready for theshow pen. Breeding season runs fromFebruary to July with extra horses to takecare of along with your own, then in thesummer, put the haying factor in there,along with going to shows to promoteyour stallions and mares. Don’t forgetthe daily maintenance of the facility.

Geez, you wonder where we find time towork outside the home??

So going back and thinking about how toclassify the property of a horse owner,look long and hard at what actually isbeing done. It’s not really that difficult.Just ask yourself these questions. Arethey actually raising horses for sale?How many acres do they own? Do theyhave 3 producers? Do they take horses in

for training? Are they boarding? Itreally is no different than a dairy farmerwho gets up at 4:00 a.m. and milks hisherd, does his field work, then milksagain. The only thing different? Thehorse does not produce a product thatyou can sell. I have been asked: If youraise a horse, sell it for a profit, takehorses in for training for a fee, boardhorses for a fee, why then wouldn’t youclassify the property commercial?? Thatmy friend, is a topic for a different day.

What is your opinion? Submit your article by December 1, 2005

In My Opinion, Moreland, continued


MAAP UpdateDeanne Hollerman2004 - 2005 MAAP PresidentAssessing TechnicianStearns County

The Minnesota Association ofAssessment Personnel (MAAP) held itssummer workshop on August 18 & 19 atthe Grand Casino Mille Lacs ConferenceCenter in Onamia, MN. In addition tothe excellent educational seminarsoffered at this year’s workshop, membersalso had the opportunity to celebrateMAAP’s 30th anniversary by attending abanquet.

MAAP President, Deanne Hollermann,began the workshop by welcoming the 80registrants. This year’s workshop themewas “the ‘70’s” and attendees dressed inbright colors, flower prints, ponchos andbeautiful long polyester dresses. DaveArmstrong, MAAO President, welcomedthe group and spoke of the importance ofproviding educational opportunities forassessment office personnel.

Instructor Stephanie Nyhus from theDepartment of Revenue reviewed the2005 Property Tax Legislation and talkedabout the complexity of determiningspecial agricultural homesteads. Besidesdiscussing the new tax laws and thespecial agricultural homesteads,Stephanie answered additional homesteadquestions. Methamphetamine Labs wasthe seminar topic on the 2nd day of theworkshop. Deborah Durkin from theDepartment of Health gave the grouptremendous visual and verbal detailsabout methamphetamine labs in herpresentation. Numerous handouts werealso available.

MAAP has been fortunate to obtainwonderful instructors for its seminars. Ifyou are interested in sharing your wealthof knowledge with the group and wouldlike to volunteer as a future instructor/

presenter, please contact one of theMAAP officers.

During the MAAP business meeting, LizLopez from the City of Edina was electedas Vice President. Joan Seelen from theDepartment of Revenue was elected asthe Executive Board Member-At-Large.Thank you to the following out-goingofficers; Executive Board Member-At-Large, Cathy Emerson, City of Maple

Grove, and Past President, Joan Seelen,Department of Revenue.

We want to extend a special “thank you”to MAAO. They graciously contributedmoney to be used by four of this year’sattendees toward the registration of nextyear’s seminar.

Next year’s seminar will be held at theGrand Casino Mille Lacs Hotel andConference Center on August 17 and 18,2006. All Certified Minnesota Assessorscan obtain 1 BEU for attending both daysof the seminar.

MAAP’s purpose and objective is tofurther the work experience andknowledge of assessment personnel

through education, communication andparticipation.

Interested in joining MAAP? Our duesare only $10 per year and meetings areheld twice a year: the annual summerseminar (the third Thursday and Friday ofAugust) and the winter meeting (usuallythe first Friday in December). You alsoreceive a copy of “The Communicator,”our newsletter, which is published twice ayear.

Just a reminder that MAAP’s WinterMeeting will be held on Friday,December 2nd at the Silver Springs GolfClub in Monticello. Wright County willbe hosting this meeting.

For more information about MAAP,please contact anyone of us:

Jackie Meyer, PresidentSherburne County, [email protected]

Liz Lopez, Vice PresidentCity of Edina, [email protected]

Mary Peterson, Secretary/TreasurerCity of Maple Grove [email protected]

Joan Seelen, Board MemberDepartment of Revenue, Property [email protected]

Deanne Hollermann, Past PresidentStearns County, [email protected]

Jackie MeyerMAAP President 2005-2006Office ManagerSherburne County

Written by


TransitionsAfter 33+ years in assessing, the “Ol’ Sonof a Sea Dog”, Scott Hovet is cashing inhis assessor’s badge for a new set of golfclubs. Scott has decided that it is time toenjoy the outside world. We have toadmit that there have been days when ourjob seems more like a prison sentence.Especially when we consider the size ofthe cubicles we occupy. So, as of July15, 2005, Scott’s self inflicted “sentenceto serve” was complete. Upon his releasefrom cell block 2150 Radio Dr., akaWoodbury Branch of the Washington Co.Assessor’s Office, Scott will be enjoyinghis new found freedom at the local golfcourse. Scott’s hope is that his 14handicap will soon plummet. Coursethat’s if his “advanced functionalobsolescence” doesn’t take over.Needless to say, he certainly has had funthroughout the years.

Congratulations Scott!

Scott began his assessing career back in1971, straight out of Viet Nam. His firstassessing jurisdiction was FarmingtonTwp. in “rural” Olmsted Co. What abetter place for that city boy. At the time,I’ll bet he couldn’t even tell thedifference between a cow and a pig! In1979, Scott ventured on to the City ofPlymouth. Based on the numerouspictures he has in his scrap books, the“good times” were certainly a part of

each work week. What a comedian!Then in 1993, Scott once again venturedon. He found his final resting place atWashington Co. Scott was a proudpublic servant. He enjoyed working witheveryone he encountered. Thefriendships he has made throughout theyears will last a lifetime.Many Blessed Days to you Scott! We allwish you well on your next course in life.p.s. Scott was presented with a “#1Mouse Catcher” plague by his colleaguesat the Woodbury Branch.

Mike Schachterle’s last day with the Cityof Bloomington was May 20, 2005. Hehad worked for the City of Bloomingtonsince November 30, 1987 as a residentialand a commercial appraiser. He says heis not really retiring, just resigning. He isstill going to be the assessor for LongLake and St. Boni.

Enjoy Mike!Keep the MAAO

Membership Informed!Submit your office

retirements and otherrecognitions

(along with photos) [email protected]


Vi e w s Yo u C a n U s e2005 Legislative Session: Assessing the Changes

If you followed the 2005 legislative sessionclosely, you may be thinking aboutchanging your profession to one that is lesstaxing (pun intended). You may feel thatassessors took a beating this year – morethan usual, that is. Property owners testifiedabout improper assessment practices, andone might think that inappropriate practicesare more the norm than the exception.

We all know this is not the case. Before youpack up your belongings and leave yourassessing days behind, you need to remindyourself that many of the complaints aboutassessment practices are unfounded. Mostassessors are doing an excellent job.However, it only takes a few “bad”practices to give all assessors a bad name.

Many changes affecting property taxeswere made during the regular and speciallegislative sessions. Those changes areoutlined in the 2005 Property Tax LawSummary, which can be found on theDepartment of Revenue website.

Of particular importance to you, should bethe new laws addressing the issues of ethicsand assessment practices – both provisionsare a result of the strong focus onassessment practices during this session.

While the initial inclination might be toresist these changes, we would all be betterserved to embrace them. The strong focuson assessments was a direct result of thetaxpayer’s perception that the system is“broken.” Hopefully, these changes will goa long way toward increasing taxpayerconfidence in the assessment process, whileat the same time will help to improve thequality and uniformity of assessments.

New Ethics Training RequirementAs a result of the focus on the assessmentprocess, the legislature enacted an ethicsrequirement for assessors. The new

provision requires that all Minnesotaassessors attend and participate in aseminar that focuses on ethics, professionalconduct, and the need for standardizedassessment practices. The course must bedeveloped and presented by theCommissioner of Revenue. This is effectivefor the four-year licensing period beginningon July 1, 2004. This requirement appliesto all assessors licensed for at least one yearin a licensing period.

Legislation also requires the Commissionerof Revenue to develop a code of conductand ethics for Minnesota Assessors to“ensure public confidence in propertyassessment.” The code must includelanguage that promotes fairness anduniformity and recommends assessmentpractices that avoid the appearance of aconflict of interest. The code is to becompleted and recommended to the StateBoard of Assessors for adoption by January1, 2006, and is to be presented as part ofthe ethics training required for all licensedassessors.

Once the State Board of Assessors adoptsthe code of ethics, the department willbegin teaching the ethics course. While youwill not have a full four-year licensingperiod to attend the course, we assure youthat the course will be offered on sufficientdates and at sufficient locations toaccommodate all licensed Minnesotaassessors. Specific details about coursedates and locations will be provided via theDepartment of Revenue website.

To develop the code of conduct and ethics,we will be working with MAAO and theState Board of Assessors. A workgroup willbe formed to review codes of ethics andcodes of conduct adopted by other statesand various assessing organizations, as wellas existing Minnesota laws and rules.

While implementing a code of conduct andethics may not “ensure public confidence,”it is a step in the right direction. Hopefully,it will improve taxpayers’ perception of theproperty tax system by demonstrating yourcommitment to professionalism.

Standardized Assessment andClassification ReportsAnother result of the focus on assessmentpractices involves legislation that aims toincrease the uniformity of assessment andclassification practices. New legislationrequires the Commissioner of Revenue toissue two reports over the next two years.The reports are to include “an analysis ofexisting practices and providerecommendations, where necessary, forachieving higher quality and uniformassessments and consistency of propertyclassifications.”

The first report, to be issued by February 1,2006, will address the following types ofproperty:

• Resort property including class 1cand class 4c seasonal residentialrecreational resorts.

The second report, to be issued by February1, 2007, will address the following propertytypes:• Class 4d low-income rentalhousing property;

• Lands enrolled in state or federalconservation programs including theConservation Reserve Program (CRP),Reinvest in Minnesota (RIM) program, andConservation Reserve EnhancementProgram (CREP);

continued on page 37

Written by Jacque BetzMinnesota Department of Revenue


Written by Jim BorrettWright County “Oh Boy”, that’s what I thought a fewweeks ago when I looked up my pictureand profile on the MNMAAO website. The picture was taken a few years agoprior to a 110-pound weight loss. Imade a simple request to the editors atEqual Eyes to change the picture, andthat led to a request for an articleabout excess weight and assessing. My story, like many others begins witha family history of excess weight; lackof exercise and way too many badfood choices. I can still remember mydad saying “wait until you turn 25”,meaning, that’s when his weight beganto go up rapidly. And so did mine. When I began my assessing career inTodd County in the fall of 1994, I was 40years old and weighed 195 pounds. Following my move from Todd County in2000, to Wright County and the City ofBuffalo my weight was about 240. Bythe time I made the decision to haveGastric Bypass surgery in the fall of2002, my weight had ballooned to 280pounds. You can imagine how tough itwas to perform the job of assessing. There were times when I literally didn’tthink I would make it back to the officewithout having a heart attack. I didn’tknow how long I could continue to dothis job. Walking up hills and stairsbecame a problem. A problem I knew Ihad to do something about. As anyone that is over weight can tellyou, this is one of the last areas where aperson can be joked about and demeanedwithout regard to feelings of humiliationor discrimination. Many of us are guiltyof “fat” jokes (including me) withouttaking into account how the person withthe excess weight may feel. Case inpoint; in 2002 while attending acontinuing education course at the EarlBrown Center, the course instructornicknamed me “Big Jim”. She probablydidn’t think much of it, but it had a pretty

big impact on me. She actually did me afavor because it strengthened my resolveto do something about my weight.

Well, after three lower back surgeries, aknee surgery, the collapse of several dietprograms and more than a few instancesof both embarrassment of a tad bit ofhumiliation, I began the procedure bygathering information on Gastric Bypass.

In December of 2002 after muchconsideration, I attended an “Introductionto Gastric Bypass Meeting” at UnityHospital in Fridley. By the time themeeting was over, I felt I had enoughinformation to begin the process leadingup to surgery. The fact that the surgeryitself can cause death was of littleconcern after many years of excessweight and all the problems associatedwith it. My first doctor appointment was inJanuary of 2003. After pre-screeningwith a nurse, I met with Dr. FredrickJohnson. We covered more informationincluding the need to lose a few poundsprior to surgery. This helps the doctor byshrinking the liver so it is not in the way

Jim’s Storyduring surgery. I was very dedicated andfocused and was able to lose the pre-surgery weight faster than the doctor

expected. That meant I was able tohave surgery in May of 2003, ratherthan in July or August. I was readyand really didn’t want to wait anylonger. My surgery took place onMay 7th, 2003. Over the course of thenext year, I lost 110 pounds and beganto get a life back that I had beenmissing. I’m walking faster and getting somuch more done at home and atwork! The hills and stairs are nolonger an obstacle to getting my jobdone. The reaction from the public is

one that I perceive to be moreacceptable. Lets face it, being anassessor is tough enough without beatingyourself up because you’re over weight. The surgery itself is not the “be all endall” for people that are predisposed tobeing overweight. You will have to payattention to the things you eat and makesure you get the proper amount ofexercise either daily or every other day tomake sure you maintain your weightloss. I have to admit this is one area thatI need to pay more attention to now,before my weight becomes an issueagain. You’ll find that it truly is up toyou, to maintain any weight loss youcommit to in life. One thing I must stress is that my co-workers in Wright County are fantastic. One co-worker said he never thought Iwas over weight. Now that’s what Iconsider a good friend! Also, the supportI got from my wife Nancy could not havebeen better. I owe so much to her forseeing me through this part of my life. If anyone is considering such a path, feelfree to contact me at the Wright CountyAssessors Office. 763 682-7370. [email protected]

I didn’t know how long Icould continue to do this job.


Dear John,Written by John Hagen, SAMADepartment of Revenue

Dear John,

I can’t believe the letter you sent to theassessor about my property. You statedthere was “no evidence that the propertywas being used agriculturally.” I beg todiffer. I have attached some photosshowing the attributes of my property.You will note that I have: six kinds ofpine trees, five kinds of apple trees, threekinds of crops that I plant and leave forthe deer, and two honey bee hives. Mywife, Becky Homecky also makes applebutter from the apples that we sell toothers.

Please, o’ please reconsider………

Love always,

W. Hiner

Dear Mr. Hiner:

What? No partridge in a pear tree?!!And you were so close too…. Perhapsyou should consider a few cows andeight maids to milk them??!! Kiddingof course!

First of all, nice pictures!! God blessdigital cameras! However, there wereno identifying details – they could havebeen taken in Ohio for all I know. Notat all helpful!!

Second, I refer you to MinnesotaStatute 273.13 which governsclassification for property taxpurposes. You will note that in orderto qualify for the ag class you firstneed 10 acres IN PRODUCTION!Planting a couple of acres of corn,

beans, etc. that are used as a food plotfor wildlife does not count asagricultural production - even if theydrop a nickel in the bucket every timethey feed on your “crops!” Nor do afew apple trees, and don’t even get mestarted on the apple butter – that is acommercial use!! Plus, I’m not surethat two bee hives qualifies as a hobbymuch less ag production.

Seriously, the best person to classifyyour property is the assessor who hasactually viewed the property. Wecannot overrule an assessor’sclassification or market value since ouropinions are only advisory in nature.If you truly disagree with theassessor’s classification of yourproperty, I’m sure the tax court wouldbe happy to cash the check for thefiling fee and put you on theirschedule! Toodledoo!

Dear John,

My lovely wife is being treated for“severe steroid-dependent asthma,”allergic rhinitis, and chronic sinusitis. Inaddition, she has other problems such asgastrointestinal issues, multiple sclerosis,and migraine headaches. Due to the side

effects of her numerous medications shealso suffers from sleep deprivation,short-term memory loss, osteoporosisand chronic nausea. All of this has hadan effect on her emotional stability andshe has recently been diagnosed withdepression. I just can’t take living underthe same roof with the woman anymore.I recently purchased and moved toanother home on the other side of themetro area in an effort to save ourmarriage. However, the assessor will notgrant me a second homestead. Can youplease tell them that this is exactly whatthe legislature intended when theycreated the four exceptions to the “onehomestead per married couple rule?” Ifthis isn’t an appropriate place for it,nothing is! Please feel free to verify thisinformation with my wife’s doctors.

Your Pal,

Husband of the Year

Dear Hubby –

Did you miss the “in sickness and inhealth” portion of your vows? Wechecked around and unless your wife isseeing a doctor named BALCO, it isunlikely she is severely dependent onsteroids. You see, doctors are veryhesitant to prescribe oral or injectedsteroids as anti-inflammatorytreatments for asthma due to their sideeffects on the rest of the body.Incidentally, we also contacted your


Dear John...from page 20

“DearJohn,” is intended to be asatrical look at the multitude ofquestions answered by the Depart-ment of Revenue’s Informationand Education Posse. The under-lying situations are true but thenames and identifying details area bit embellished.

long-suffering wife and she stated shehas seasonal allergies which mayaggravate her asthma from time totime. The remainder of the ailmentsthat you mentioned in your letter areFICTIONAL - except for thedepression which you likely caused!!We find it disheartening that youwould stoop to such a level merely toobtain a small tax advantage. Ratherthan charge you with fraud, we suggestyou spend all of your potential bailmoney to buy your wife several caratsof large and sparkly diamonds in aneffort to make amends. In the absenceof a significant display of remorse onyour part, we have recommended toher that she drop about 200 pounds –that would be YOU!!! Good luckworming your way out of this one!

P.S. We have assured your wife thatshe will be able to retain her fullhomestead should you be temporarilysent to prison! Say “hi” to the pilots!!

Dear John –

I just found out my husband signed us upfor that ridiculous program called theSustainable Forest Incentive Actprogram. He did this without myknowledge and I want out of thatprogram. Someone just offered us$200,000 for our 40-acre tract of land inthe North Woods so that they can build acabin on it, but, no – we can’t sell itbecause of that stupid covenant that is onthe property for another six years.

Please help –

Twiggy

Dear Miss Twiggy –

Wow, the bonds of holy matrimony aretaking a beating around here thesedays! Unless you would like toprosecute your husband for fraud, wecannot help you. Actually, we can’thelp you prosecute him either becausewhen he signed the application for theSFIA program, he signed his nameattesting to the fact that he was theowner of the property and he wasfollowing all of the requirements of theSFIA program.

Just so you know – you can sell theproperty if you choose, but therecorded covenant stays with the landand the buyer will be expected to abideby it. The new owner can also applyfor enrollment in the program if theychoose. They would then receive theincentive payment.

Oh, and before you decide you shoulddo something so foolish as to let yourproperty taxes go delinquent on theproperty in an effort to get us to throwyou out of the program, that won’twork either. The covenant still stayswith the land for the minimum of eightyears!! You will just forfeit theremaining payments!

Dear John –

What’s the deal with a 50% residentialhomestead being more beneficial than afull homestead? Isn’t that a bitcounterintuitive??

I. N. Quisitive

Dear Mr. Quisitive -

Yes, property tax’s dirty little secretwas fixed during the most recent

legislative session!! Minnesota Statute273.1384 was amended to require thatthe credit be calculated on the entiretaxable market value. The amount ofthe credit is then divided in half for a50% homestead. Previously, thetaxable market value was divided inhalf and the credit calculated on thatvalue. This resulted in a larger creditdue to the phase-out provision.

Now, if we could just get that Twinsstadium provision passed, it just mighthelp restore a bit of our faith inhumanity around here!!


IAAO ItemsWritten by Bill Peterson, SAMA, CAEDakota CountyIAAO RepresentativeMAAO 1st Vice President

IAAO ELECTION RESULTS:Wayne N Trout, PresidentMarion R. Johnson, CAE, President ElectGuy Griscom, CAE, Vice PresidentBruce Woodzell, Executive BoardJames F. Todora, CAE, Executive BoardJ. Mark Hixon, Executive BoardDebra Asbury, Executive BoardKellianne M. Nagy, CAE, AssociateMember

2006 IAAO CONFERENCE –MILWAUKEE – MAKE PLANSNOW!!!:When you read this I’ll be recoveringfrom the 2005 IAAO Conference inAnchorage, Alaska. If I see you at theMAAO conference remind me to giveyou all the details. At the suggestion ofMAAO President Armstrong (who kilt aGrizzly Bar with his Number 2 earwarmer in Alaska), I am inviting you toattend next year’s conference inMilwaukee. This will be as close tohome as an IAAO conference will everbe during our mediocre careers (soundfamiliar Hagen). If you’ve never been,you won’t regret it! I’ll offer to buy abeverage for all first timers. Try to get itin your budget. It would be great to havea huge Minnesota contingent.

UPDATED IAAO CURRICULUM:IAAO needs to ensure that their coreeducational courses are AQB compliant.The Appraisal Foundation has proposedsignificant changes to complianceguidelines, and all IAAO courses need tobe reviewed, and perhaps rewritten. Thiswork is being done by Jim Tedora, CAE,and the Professional DevelopmentCommittee.

The IAAO Executive Board is taking thistask very seriously. They passed amotion directing the ProfessionalDevelopment Committee to review IAAO

courses and provide a plan to routinelyupdate them on an ongoing basis. TheBoard indicated that they require a longterm plan that ensures continuedimprovement of courses to meet theneeds of IAAO class participants(CONCEPT SOUND FAMILIAR TOANYONE?).

NEW MEMBERSHIP DISCOUNT:Since you’re all going to begin makingplans to go to Milwaukee and take me upon my beverage offer, I’d like to remindyou that it is cheaper if you’re an IAAOmember. First time members will receivea half price membership discount($87.50) if they contact a staterepresentative. If you’re interestedcontact: Jan Olsson, 763-509-5355; MarkKrupski, 507-281-6293; or Bill Peterson,651-438-4200. Sign up today!!!

FUTURE CONFERENCE SITES:

Milwaukee, WI October 8 – 12, 2006Atlanta, GA September 9 – 12, 2007Reno, NV September 7 – 10, 2008

BENEFITS OF IAAO MEMBERSHIPAccess to professional designationprograms recognized throughout theappraisal and assessment field as asymbol of professionalism and expertise.

Access to a fifteen-thousand volumeprofessional library, accessible throughthe Internet.

Access to “Members Only” section of theIAAO website, a resource loaded withvaluable, assessment-related information.

Free use of the IAAO Inquiry AnsweringService, which handles simple referencequestions about a particular fact ortechnique to broader surveys and

comparisons of alternative practices andpolicies.

Discounts on educational programsconducted by IAAO.

Discount on registration for the annualconference and other seminars andconferences.

Opportunity to join a special interestgroup, such as the Personal Propertysection.

Special discounts from selectedcompanies like Hertz, Avis, Alamo andmore.

A one-year subscription to the quarterlyAssessment Journal

Monthly Fair and Equitable trademagazine.

Employment services.

Discounted publications and textbooks

Recognition to an accredited professionalappraisal organization and sponsoringmember of the Appraisal Foundation.

FINALLY:

You should receive this prior to theMAAO fall conference. If so, please joinme in welcoming President Elect MarionR. Johnson, CAE to our great state.WELCOME MARION!!!

President Wayne Trout had a priorcommitment to attend the Iowaconference. Since next year’s MAAOconference is before IAAO, as MAAOPresident, I will invite President Trout toattend the 2006 MAAO conference. Seeya bye!


FeaturedResidentialPropertyProvided by Ben Thomas, CMASt. Louis County

The Betty Wilzbacher home located at1621 N Pioneer Rd in Ely was designedas a single person dwelling as opposed tothe standard single family dwelling. Thehome on Shagawa Lake was built in 1995and designed by architect CherylFosdick. The home is 16' x 16' and hasthree stories of living space. The mainfloor has an additional 32 square feet ofliving space in the form of a 4' x 8' mudroom. The home is built on a slab andhas an attached 8' x 10' screen porch.

The main floor of the home consists of anentry/mud room, utility room and kitchenwith dining counter facing the windowsoverlooking Shagawa Lake. The secondfloor has a 3/4 bath, built-in desk areaand living room. The third floor is abedroom with a walk-in closet. Theviews of Shagawa Lake get better as youascend each flight of stairs.

The only complaint Ms. Wilzbacher hadof her home was the lack of space forentertaining guests. That problem wasremedied in 2004 when she built a guesthouse. The guest house is 18' x 18' andfeatures the same architectural style androof pitch as her main house. Basically,the guest house is a great room with a 3/4bath and a small loft. Ms. Wilzbacherthinks of the guest house as an extensionof her home. The property is completedby a 10' x 12' storage building with an 18/12 roof pitch to match the main houseand guest house.


Fort Snelling A Jewel of

Written by Brenda Hansford andLeo S. Montes

Deputy AssessorsCity of Minneapolis

Imagine yourself on a hot Septemberafternoon; the year is 1827. You walkthrough a limestone gatehouse guardedby stoic soldiers shouldering muskets.The sound of gravel and sand crunching

beneath your footsteps is a whisperforeshadowing soldiers marching ahead.A cannon fires. You flinch at its suddenoutrage. Smoke bellows and the smell ofgun powder drifts through the air.

You are greeted by these same imagesand experiences today, almost 180 yearslater, at this same site: The historic FortSnelling, at the junction of theMississippi and Minnesota Rivers.

Fort Snelling dates back to theRevolutionary War era. After the U.S.Government took possession of the upper

Mississippi Valley, following the 1812Revolutionary War with Great Britainand the Louisiana Purchase from France,the government established a series ofcontrol posts and supporting forts from

Lake Michigan tothe Missouri River.

In 1819, thenorthwest link of thischain of posts wasbuilt at the junctionof the Mississippiand MinnesotaRivers, and in 1825Fort Snelling wascompleted on thissite where the trafficof two major riverscould be controlled.It was built under the

command ofColonel JosiahSnelling.

This fortress,located at the heartof the Twin CitiesMetropolitan area,was for many yearsthe most importantplace on the upperMississippi.

For nearly threedecades following

its completion, Fort Snelling was the hubof Upper Mississippi. It was a center oftrade, government and commerce for theDakota and Ojibwa Indians and newEuropean settlers. The general site waspopulated by hundreds of workers of thefur companies in the area, army officers,government officials, Europeanimmigrants and tourists who later moveddown the river and formed a smallsettlement that went on to become theCity of Saint Paul.

Fort Snelling has a diverse history. Rightafter its apogee, Fort Snelling wasdemoted to a supply depot, and later wassold and platted as a town site. Theeruption of the Civil War changed thoseplans and the fort served as trainingcenter for thousands of volunteers of theUnion Army. During the following

The Historic Fort Snelling

Fort Snelling, a control post overlooking the traffic of two major rivers

Living History


decades many physical changes weremade to the fort’s facilities toaccommodate the army’s needs. It servedas training campfor soldiersduring WorldWar II. Whenthe war endedthe fort wasclosed andturned over tothe VeteransAdministration.

In 1960, FortSnelling wasdesignated asMinnesota’s firstNational Historic Landmark by the U.S.Department of Interior, and in 1965 itwas turned over to the MinnesotaHistorical Society. The original fort sitewas restored and opened to the public in1970.

Today Fort Snelling allows visitors toexperience life as it was in 1827 throughself-guided tours. Costumed guidesportraying soldiers, American Indians, furtraders and settlers of that region and

time period are available for discussionand questions. The adjacent FortSnelling History Center providesorientation films and changing exhibitson aspects of Minnesota’s past.

Every year, more than 85,000visitors step into this symbol ofliving history.

FortSnellingcontainseighteenstructureson or nearits diamondshapedperimeter,including agatehouse, Sutler’sstore, barracks,batteries, livingquarters, a school

and hospital. The two buildings thatremain most original include the RoundTower and South Battery.

The RoundTower is thefort’s bestknown building.Built around1820, this three-story tower isspeculated to be

Minnesota’soldest standingbuilding.Numerousmusket slitsare built withinthe limestone walls of both the RoundTower and South Battery.

Visitors of FortSnelling arepredestined togo through asoul searching

experience.

To me, thishistoric postlooks much like itdid when I first

visited as a child in the early 1970s. Whatchanged from my first to my second visitis the sense of pride, appreciation andrespect I felt for our history as I walkedbetween the impressive walls of thishistoric treasure: The historic FortSnelling.

Fort Snelling Fallvisiting hours areSept. 6-Oct. 30:Sat. 10 a.m.-5p.m.; Sun. noon-5p.m. Admissionis: $8 adults; $6college studentsand seniors; $4children 6-17 andFREE forchildren 5 andunder.

For additionalinformation call Fort Snelling at 612-726-1171, or e-mail

[email protected], orvisit www.mnhs.org/fortsnelling.

Some of theinformation containedin this article can befound in publicationsfrom the MinnesotaHistorical Society.

The Round Tower, built in 1820


IAAO 2OO5Anchorage, AlaskaWritten by Jan Olsson, AMA, RESCity of PlymouthAssociate Editor

Moose next 25 miles….here is a roadsign that isn’t seen in Minnesota.

The 71st Annual International Conferenceon Assessment Administration was heldSeptember 17-22, 2005 in Anchorage,Alaska. The Welcoming Reception washeld at the Anchorage Museum of Historyand Art. The museum offered a glimpseat the cultural heritage of Alaska and artwork depicting the grandeur and beautyof the state. Alaska Native Childrendrummers and piano music was providedthroughout the evening as guests sampledan array of Alaskan delicacies.

President Wayne Llewellyn greeted theattendees at the Opening Ceremony thefollowing morning held at the AlaskaCenter of Performing Arts EvangelineAtwood Concert Hall and laid out theconference agenda. Steve Van Sant, Co-chair of the LHC was the master ofceremonies. Martin Buser, four-timeIditarod champion, delivered the key notespeech. Following the opening ceremonythe exhibition hall was open. Martinjoined the attendees for a specialappearance of his sled dogs and puppiesfor viewing and photo opportunities.Many exhibiters were represented andthose present had an opportunity to viewnew assessment related technology. Themorning ended with the AnnualMembership Meeting at the EganConvention Center. Recognition wasgiven to 2005 Professional Designees,Committee Chairs, Instructors,Coordinators and Trust FundContributors.

The Conference Committeeput together an outstandingprogram that included atwo-part three-hour sessionpresented by the LincolnInstitute of Land Policy anda “Management & Policy”track covering currentassessment administrationissues. The “QualityAssurance and Performance Measures”track provided a wealth of statistical andquality assurance sessions regardingreview and discussion of two IAAOtechnical standards. “Valuation Trendsand Issues” provided new ways to look atold problems. The “Technology Trendsand Issues” track covered the latestdevices and software innovations. The“IAAO Spotlight” covers a multitude ofspecialty topics including tax collectors,a variety of international valuationpresentations, and a spotlight on Alaska.

A social event was held atthe world famous ChilkootCharlie’s. Thisestablishment has trulybecome an Alaskaninstitution. Entertainmentwas provided by Hobo Jimand an Alaskan BluegrassBand.

The conference ended withthe Installation Banquetheld at the Egan Center.Music provided by theBand of the Pacific. Wayne

Trout was installed as the new IAAOPresident and encouraged everyone toattend the 72nd Annual Conference whichwill be held in Milwaukee, Wisconsin,October 8 thru 11, 2006.

The Minnesotans in attendance tookadvantage of their free time and exploredthe surrounding areas around Anchorage.Some hiked, some bicycled, some touredand some flew around Mt. McKinley; butall came home with a feeling of awe ofexperiencing the beautiful state and allthat it has to offer!


A glimpse of Alaska’s beauty

Minnesotans on a mission to see a moose

Sunset in Anchorage


St. Cloud State University is a mid-sized,public university located 70 milesnorthwest of the Twin Cities along thebanks of the Mississippi River (website:http://www.stcloudstate.edu/). Theuniversity offers more than 175 majors,minors and pre-professional programsthrough five colleges: Business,Education, Fine Arts and Humanities,Science and Engineering, and SocialSciences. Undergraduate and graduatedegrees balance strong liberal artsprograms and foundations withspecialized career preparation.Opportunities and benefits are enhancedbecause SCSU combines the advantagesof a larger university with an emphasis onsmaller class sizes, personal attention andhands-on approaches to learning.

The G.R. Herberger College of Businessis a comprehensive Minnesota universitythat serves the state, Midwest region andattracts students from other states andnations. The mission of the HCOB is todevelop and deliver a qualityundergraduate and graduate businesseducation through the collaborativeefforts of an involved community ofstudents, faculty, staff and businessprofessionals.

The HCOB is accredited by AACSB, theAssociation to Advance CollegiateSchools of Business, at both theundergraduate and graduate levels.

St. Cloud State University andMAAO...a Winning Partnership!

AACSB accreditation establishesstandards for collegiate schools ofbusiness to promote high levels ofeducational quality.

One program that offers this quality isour outstanding Finance, Insurance andReal Estate (F.I.R.E.) department. TheSCSU Real Estate degree program wasthe first professional, four-year,university-level program in Minnesota.Dr. Steve Mooney is Professor of RealEstate and Finance in the F.I.R.E.department, and holder of the MN Chairin Real Estate. Dr. Mooney obtained hisB.S. degree from the University ofWisconsin-River Falls, his M.S. in RealEstate and Regional Science fromSouthern Methodist University and hisPh.D. in Finance/Real Estate from TexasA&M University. His duties as the MNChair include teaching and advisingstudents in the BS and MBA degreeprograms in real estate, advising thestudent Real Estate Association, workingwith the Real Estate Alumni Association,assisting in the placement of graduates,and interacting with professionalorganizations in the real estate industry.He also teaches Real Estate Principles,Real Estate Finance and Investments, andReal Estate Appraisal.

Dr. Mooney has published in a variety ofreal estate journals in the U.S., Australiaand the United Kingdom. He has

presented seminars in both the U.S. andAustralia on topics ranging fromappraisal techniques to the S&L crisisand its impact on the appraisal industry.Dr. Mooney has held Visiting Fellow andVisiting Research positions at theUniversity of Western Sydney inAustralia and the University of Ulster inNorthern Ireland.

Most people know of SCSU’s longhistory of providing quality highereducation opportunities in the area. Whatsome might not know is that many facultyand staff have also been applying theirknowledge and skills in the corporatetraining world. SCSU faculty and staffhave been conducting research, training,and providing assistance to the area’sbusiness community for many years. TheCenter for Continuing Studies at St.Cloud State University (SCSU) providescustomized training that helps businessesand industry stay competitive in today’saggressive economy.

Now, with an office devoted to thebusiness of customized training, it is eveneasier for companies to access theresources of the university. With a call tothe Center for Continuing Studies, anybusiness can engage a large variety ofresources and services. Services canrange from coordinating a single room toa complete conference. Groups that havetaken advantages of these services have


Gail M. RuhlandGail Ruhland serves as the Director ofTraining Program Development in theCenter for Continuing Studies at St.Cloud State University. She earned aBachelors in Arts in BusinessManagement and Communication fromConcordia College in St. Paul, and aMasters in Business Administration fromSt. Cloud State University; both whileworking full-time and raising a family.

In her 5 years at SCSU, Gail has beencommitted to creating opportunities forprofessionals via credit and non-creditprofessional development programs.

included: Minneapolis FBI TrainingDepartment; Behavioral Institute forChildren, Arden Hills, MN; BroomeCommunity College, Binghamton, NY;Primevest Financial, St. Cloud, MN; ParkIndustries, St. Cloud, MN; numerousCounties in Minnesota; etc. It is theseservices, along with the connection to St.Cloud State University’s first-rate RealEstate Department that attracted theMinnesota Association of AssessorsOfficers (MAAO) to SCSU’s Center forContinuing Studies.

Of course, the desire to partner was notone sided. Dr. Mooney was alsoimpressed by the educational opportunityMAAO provides to its members. Seeingthe involvement of the MAAO with theeducation of their members, Dr. Mooney

Mooney, Steven P. (1986)Professor of Finance, Insurance and RealEstate; Chairperson; Holder of the MNChair in Real EstateB.S. 1971, University of Wisconsin-RiverFalls; M.S. 1982, Southern MethodistUniversity;Ph.D. 1989, Texas A & M University

and Ms. Gail Ruhland (Director ofTraining Program Development, SCSU,Center for Continuing Studies) met withsome members of the MAAO to see if apartnership could be made. After severalinformation gathering sessions, and apresentation to the MAAO EducationCommittee, St. Cloud State University ispleased to announce its selection as theacademic partner for MAAO’seducational needs.

By partnering with St. Cloud StateUniversity, Center for Continuing studies,MAAO will allow its members to dealwith one source when registering for acourse. SCSU, CCS will also beresponsible for promotional materials,room coordination, money collection, billpayment, etc. An added benefit bypartnering with SCSU is that Dr. Mooney

can bring his instructional expertise to thecourses provided … and in turn SCSUwill understand more fully what skillsand knowledge Assessing Officers needfor their field. Thus, this partnership is awin-win situation for both the MAAOand SCSU.

For further information on the SCSU,Center for Continuing Studies pleasecontact Gail Ruhland([email protected]) at 320-308-3081 or visit the center’s web site at:www.stcloudstate.edu/continuingstudies/customized. For further information onthe SCSU F.I.R.E. department contact Dr.Steve Mooney ([email protected])or visit the department’s website at: http://cob.stcloudstate.edu/fireweb/.

These programs have ranged from careerexploration for “at risk” youth from theSt. Cloud area to a week long LeadershipInstitute for Law Enforcement officersthroughout the Minnesota, South Dakota,North Dakota and Wisconsin states. Sheis committed to the mission of continuingeducation to provide outreach and accessto quality programs.

When Gail is not creating theseprofessional development opportunities,she enjoys spending time with herhusband, her 2 children, 2 step children,5 horses, 3 dogs and cat.

For the2006 Proposed

MAAO Course Calendarturn to Page 26

Meet the Staff


2006 MAAO PROPOSED COURSECALENDAR

Week A: Assessment Laws and ProceduresJuly 17 - 21, 2006Instructors: Department of Revenue

Week B: Appraisal PrinciplesJuly 24 - 28, 2006Instructor: Dr. Mooney

Week H: Appraisal ProceduresAugust 7 - 11, 2006Instructor: Dr. Mooney

Week J: Basic Income ApproachAugust 14 - 18, 2006Instructors: Bob Wilson and Steve Behrenbrinker

IAAO 400: Assessment Administration August 21 - 25, 2006 Instructor: Scott Renne

Questions/Comments:Please direct all questions regarding courses and/or schedule

to Steve Behrenbrinker. Steve is serving as the liaison betweenSCSU and MAAO.

Phone: (320) 650.3352Email: [email protected]


Let’s Get AcquaintedWritten by Michelle Cote, SAMA

Polk County Appraiser and Editorial Board Member

with Patrick Todd

Name: Patrick ToddJob title: City AssessorJurisdiction: City of MinneapolisAmount of time in current position:June 27, 2005 (2.5 months)Other Position held/worked, includingdates:

· Supervisor of Homestead andClassification Department 2002to 2005

· Real Estate Appraiser I and IIfrom 1990 to 2002

· Fee Appraiser with Chase-Brackett Company 1987 to 2000

How did you get into the assessmentfield?In 1987, I was encouraged byMinneapolis downtown appraiser DanBoris, who incidentally at the time, wasdoing freelance appraisal work forChase-Brackett Appraisal Company.There were a number of factors thatappealed to me about working for theCity of Minneapolis and moving from feeappraising to the assessing field. First,the opportunity to specialize inappraising real estate in Minneapolisoffered all the same challenges anddiversity as working as a fee appraiser inthe 7 county greater metropolitan area,

without the travel. Second, Minneapolishappened to be my hometown andworking here would give me theopportunity to get to know even moreabout the city than I already knew.Finally there was the appeal of regularwork hours, steady income, benefits anda pension.

Number of jurisdictions and parcelsyou are responsible for:

Minneapolis is the only jurisdiction I amresponsible for. There are approximately120,000 parcels in the City ofMinneapolis. Parcel breakdown is:

Group Market Value% Total

continued page 28

Commercial 4,646,614,700 15.1%Industrial 1,347,262,100 4.4%Residential 21,504,338,600 70.0%Apartment 3,199,757,300 10.4%Other 18,532,400 0.1%Total 30,716,505,100 100.0%

City of Minneapolis AssessorPatrick Todd

Office Info:Total Staff = 34.5 FTE + 3 temporarypart-time interns

City Assessor & Director of Assessment& Manager of Assessment Services

3 Supervisors

9 Commercial/Industrial/Apartment/Condo Staff

11 Residential Appraisers

8 Homestead & Classification staff


Let’s Get Acquainted...from page 27

History and other characteristics orinteresting facts about yourjurisdiction:

Minneapolis has a rich history as a rivertown, and the influences that history hashad over the years on the real estate asthe city grew and changed is fascinating.That however is a topic for a book!

Number of years as a MAAO Member:1998Number of years as a IAAO Member:Not a member yet, however, I will becompleting the application right after Ifinish this questionnaire!

Committee Served/Position Held:Assessor’s Business Process Re-Engineering (BPR) team 1995 to 1998

Limited English Proficiency Plan (LEP)team 2004 to present

Interactive Voice Recognition team (IVR)team 2003 to 2005

Labor-Management Team 1993 to 1995

Waite Park Community Council –Secretary 2002 to 2005

Married? YesNumber of Years: 20Spouses Name: TriciaChildren: Shannon age 19

Maureen age 15 Erin age 8

Hobbies/Activities:I spend much of my time cheering for mydaughters as they participate in theirrespective sporting events. When I’m nottraversing the upper Midwest attendingsoccer and volleyball tournaments, Ienjoy playing golf with family andfriends and trekking the many miles ofbike trails throughout the State. I alsohave a passion for work around the yardand house, or at least that’s what my wifetells me!

Interesting fact(s) about family/self:Probably the most interesting is that myfamily and my wife’s family are large, oldNortheast Minneapolis/St. Anthonyfamilies and many of our siblings stilllive very close in this area. At one timewhen two of my daughters were in gradeschool they had thirteen cousins in schoolwith them. That’s virtually unheard of intoday’s transient world.

Future plans:I’m interested in pursuing an MBAdegree and would like to teach real estatecourses in the future. I’d like to explorethe MBA/MAI degree program offeredthrough St.Thomas University.

An unusual/memorable situationencountered either on or off the job:In 2003, I attended the MinneapolisLeadership Development Programsponsored by the City of Minneapolisthat has had a positive and lastingimpression on me. The programconsisted of three-one week trainingsessions at a retreat center in Farmington,Minnesota. The program was designed togive the attendees the tools to buildstronger organizational, team andpersonal leadership skills in theworkplace. I met a lot of enthusiastic anddedicated City employees that werecommitted to making positive change inthe workplace and in the City. Ideveloped some great friendships and Istill keep in contact with many of themtoday.

Anything I would like to share: I’ve had the honor and the privilege towork with many very good appraisersfrom the Minneapolis Assessingdepartment, the Hennepin and RamseyCounty Assessors office and theindependent fee appraisers. I owe a lotof my achievements and successes tothose people, who took the time toeducate, train and mentor me as I grewand developed in this profession.

If you could change anything about theassessment field, what would it be?

I’d have the County Attorneys officereview, then approve or deny all exemptapplications. In my opinion, much of theexempt application process is interpretingthe tax exemption laws and courtdecisions, and then applying thoseguidelines to the applicant’s organization,therefore attorneys would be best suitedfor this work.

What do you find to be the biggestchallenge of the assessment field?Ongoing budget cuts have been one ofthe biggest challenges in our department.Since 1995, our office has lost 9.5 FTE’s,or 27% of the staff. Through the use oftechnology and process redesign we’vebeen able to successfully meet deadlinesannually, however, the pace and volumeof work will eventually takes it toll on thestaff unless additional appraisers andsupport staff are hired to lighten the load.

Finally, it would be great to see betterintegration of technologies andstandardization of business processesbetween jurisdictions. A commonplatform for data collection and storage,tax court appraisals and appraisaltemplates, and CAMA systems are allareas where standardizing systemsbetween jurisdictions could reap financialbenefits in addition to portraying acommon image and methodology to theour elected officials, policy makers,property owners and taxpayers.


From the 17th century forward the areawhich includes Minneapolis was underthe European rule of France, England andSpain until becoming part of the UnitedStates of American in 1784. France’soccupation of the area came from a visitmade by Father Louis Hennepin in 1680. The visit was to demonstrate the westernreach of the United States’ military powerat the established Fort Snelling. The landFort Snelling encompassed took in nearlythe complete area of the present dayMinneapolis and almost half of thepresent day City of St Paul. In 1852President Millard Fillmore approved anact of Congress reducing the area of FortSnelling, thereby opening the land westof the Mississippi River to settlers. Thename Minneapolis came from aderivative of laughing waters“Minnehaha” and the Greek suffix forcity “polis” The literal meaning is the cityof waters. Minneapolis was authorizedby the Minnesota Territorial Legislaturein 1856 as a town and incorporated in asa city in 1866.

The city’s infrastructure grew by leapsand bounds in the last twenty years of the19th century. The first hydroelectricstation in the United States begansupplying water power at St. AnthonyFalls in 1882. In the years from 1885 to1890, 150 miles of water mains werelaid. In 1889, the street railway systemelectrified its first line. In 1889 and 1890,145 miles of sidewalks were constructed.By 1908 there were about 125 miles ofpaved streets. Work began on the city’ssewer system as early as 1871, and by theearly 1900s, there were 225 miles ofsewers in the city. In 1884 the cityoccupied 24 square miles; by 1889 theboundaries had expanded to cover 53.5square miles. With the city’s last majorannexation of land in 1927, the total landarea of the city became 58.7 squaremiles. The first sizeable wave of settlersreached Minneapolis in the 1850’s. Theyrepresented town site developers, timberspeculators, small businessmen, andorganizers of churches and schools.

Influential early settlers included Johns S.Pillsbury, John H. Stevens, WilliamCheever, Caleb Dorr, Anson Northrup,and Henrietta Bishop. In 1890Minneapolis had about 60,000 foreignborn residents which was about a third ofthe total population. Unfortunately overthe course of the cities history, not allwere made to feel welcome. Immigrantsoften faced job, housing and racialdiscrimination. In 1946 Mayor HubertH. Humphrey established the city’s civilrights commission to combatsociologist’s claim that Minneapolis wasthe most anti-Semitic city in the UnitedStates. Today there is an effort amongthe public and private sectors to combatdiscrimination by offering services fornew arrivals to Minneapolis to void themistakes of the past. Minneapolis is a city rich in history,business, industry and people. Suburbscontinue to grow around thismetropolitan area because of the cultural,recreational opportunities and beautifulnatural surroundings.

City of Minneapolis


Out of the PastWritten by Nancy Wojcik, SAMACity of Brooklyn Center AssessorEditorial Board Member

5 Years Ago

Jerry Carlson (Retired) is rememberedfor his companion tours of the Dulutharea during the MAAO fall conferences.Patrick Valentine retired from St. LouisCounty after thirty-two years. Judy Doldretired after over 30 years in Assessing tomove to South Dakota. Duane Swensonretired after 15 years with Wright County.Robert Hanscom, Hennepin County, wasyour MAAO President. The DanFranklin Memorial Scholarship recipientswere Carolyn Wolf, Michelle Willford,Jeff Mueller and DavidHammerschmidt. WCMAP celebrated25 years. Ken Jagusch left CarverCounty to work in Anoka County. ScottBullock left the private sector and beganin Carver County. Rollie Huber leftAnoka for The City of Woodbury. ScottLindquist resurfaced in the City ofMinneapolis as Assessment Supervisor.Phil Jensen left Wabasha County forHennepin County. Loren Benz becameCounty Assessor in Wabasha County.Tracey Bartelson and Sandra Kuplysigned on as new Appraisers. JimHokenson left Becker County to workfor Wadena County. Irene Johnsonbecame Deputy Assessor for BeckerCounty Assessor’s making a showing atthe Sturgis motorcycle rally in SouthDakota were Pete and Diane Koole,Paul Knutson, Julie Roisen, SueMauderer, Harold Smith and RickPetersburg. Tom Dybing was awardedthe SAMA designation.

10 Years Ago

Peter Koole was MAAO President.Noreen Curry became the WatonwanCounty Assessor. Pete Caflisch leftindependent Assessing for Scott County.Brian Schultz began in Nicollet County.Jim Engblom retired from KanabecCounty as an Appraiser, continued doinglocal assessing in Hillman Township.Mark Parish left the City of BrooklynCenter to become Director of Real EstateTax with Taubman Company inBloomfield Hills, MI. Sally Zoller washired as an Appraiser for the City ofWoodbury.

15 Years Ago

Hotels tripled in value according to ananalysis of over 3,000 sales of lodgingfacilities.Kathryn Hepburn and 45 of herneighbors are suing the town of OldSaybrook because of property tax bills.Vern Johnson was your MAAOPresident. Three Minnesota Departmentof Revenue employees retired: JudyCarling, Pat Zentsis and Herb Duus.Vince Taffe retired from Big StoneCounty after 38 years and Arleen Ripleyretired from Chippewa County after 23years. Marv Anderson switchedBrooklyns’ from Brooklyn Park to anAppraiser at Brooklyn Center. Al Heimleft Moorhead and Laurie Keyeski leftGoodhue County, both to join theDepartment of Revenue.

20 Years Ago

Interest rates have dropped to a primerate of 9.5%. Farm loans were 12% with2 points and residential homes around11%. Real estate news of the time wasthe $1.2 billion proposed by Triple FiveCorporation for the 86 acre old MetStadium site. Richard Witanen was theMAAO President. Lake Pulaski inWright County rose in water level 8’over a nine year period. Dick Ward wasappointed Ramsey Co. Assessor. KeithAlbertson was appointed Mille Lacs Co.Assessor. Bill Krumholz, Assessor forKittson Co. retired.

25 Years Ago

The 34th Annual Assessor’s Conferencewas held at the Sheraton Ritz on NicolletMall in Minneapolis. Article III –Regions was amended to divide the stateinto nine regions.Combining of the Assess Minutes andEqual Eyes was discussed at the fallconference.

30 Years Ago

At a Minnesota Assessor’s Associationmeeting 16 Assessor’s becameAccredited: Leon Tacheny, JohnNordberg, Gordon Moe, CommissionerRufus Logan, Vern Anderson, JerryKallheim, William Slavin and CharlesMiller.


State Board of AssessorsMeeting MinutesProvided by Pam LundgrenMinnesota Department of Revenue

MN State Board of AssessorsMeeting MinutesMay 24, 2005St. Cloud Holiday Inn

Chairperson Keith Albertsen convenedthe meeting at 9:30.

Members in attendance were:

Keith Albertsen, ChairpersonDoreen Pehrson, Vice ChairpersonJan JacksonSteve SinellGary AmundsonMike AmoDeb VolkertGregg Larson

The Minutes of the March 21, 2005meeting were discussed. Mike Amomade a motion to approve the minutes asread. Gary Amundson seconded themotion. The motion carried.

Secretary’s Report:

· The FY 06 LicenseApplicationswere mailed out on April 11, 2005. Thereare 1013 names in the database and atotal of 987 applications were mailed out.To date 525 have been received andprocessed as: 495 renewals, 19 RecordRetention and 11 on “Hold” until theapplication is properly completed. {Thisis compared to 403 applications receivedand processed last year at the same time}.Twenty-seven names in the database willbe removed after July 1, 2005. These arethe individuals who did not relicense inFY 05 and did not apply for Record

Retention – therefore they could notreceive a renewal application for FY 06.Pursuant to MN Rules 1950.1080 Subp.4a, these names must be purged from therecords.

· Copies of the Statute regardingcompensation for members of boards arein the packets.

· Update on Board MemberVacancy: No applications have beenreceived.

· Update on the Rule Changes:The rules were approved on May 31,2005 and will be effective on June 1,2005. The Residential Case StudyExamination may be given beginning onJune 1, 2005.

Appointments With the Board:

Steve Behrenbrinker joined the Board fora discussion regarding the ResidentialCase Study Examination (RCSE). Theproctors for this examination will be thesame individuals as for the Income CaseStudy Examination (ICSE). Thosepersons are:

1. The members of the gradingcommittee: Steve Behrenbrinker, KimJensen and Bob Wilson.

2. Board of Assessor Members:Keith Albertsen, Deb Volkert, DoreenPehrson, Gary Amundson, Steve Sinelland Pam Lundgren.

3. Each proctor will receive a copyof the rules for proctoring examinationsfrom Steve.

4. Applications for the examinationand the request for a proctor will berequested from the Board office and thesecretary will send each applicant thenecessary information via e-mail or USMail. The completed application and thefee must be received at the Board officebefore the exam may be taken.

5. No interview will be conducteduntil all requirements for the AMAdesignation have been met.

6. Copies of the Form ReportGrading Sheets and Grader’s Commentsfor each passing Form Report will beforwarded to the Board members for useat each interview.

Announcements:

2005 Educational Offerings at theU of M:

IAAO 402: Tax Policy – July 11-15

Course B: Residential Appraisal – July25-29

Course A: Assessment Laws, History andProcedures – August 1 -5

Course H: Techniques of MassAppraisal – September 12-16

Course K: MN AssessmentAdministration – September 26-30

IAAO 102: Income Approach toValuation – October 17-21


State Board Minutes...from page 31· The MAAO will be hosting the2005 Summer Seminars on May 25th and26th, 2005 at the St. Cloud Holiday Inn.Per Board Policy, assessors who attendtwo (2) 4-hour seminars or one (1) 8 hourseminar and the Commissioners Sessionwill receive 1.0 BEU’s. All assessorsmust sign the rosters and provide their 4-digit license number to receive thecontinuing education credit.

Request for BEU’s/CEU’s

· Deanne Hollermann, MAAPPresident, requested BEU’s for theannual MAAP Summer Workshop beingheld on August 18 and 19, 2005 at GrandCasino Mille Lacs Conference Center.Topics to be covered include 2005Legislative Changes/Homestead Issueswith a Q & A session and Meth Labs.Per policy, 1.0 BEU’s is granted for thisannual workshop.

· Doug Knoer, local assessor inSt. Louis County, is requesting BEU’s for2 ProSource classes he attended onFebruary 22, 2005. You Be the Judge:Court’s in Session which covered casetestimony arguments, mortgage signed byone spouse, statutory cancellation, badpurchase agreement, boundary dispute,and landlord/tenant. Meth Labs inMinnesota: Your New DisclosureRequirement covered contaminates,potential health effects and risks, how torecognize an illegal drug lab, tell-talewarning signs, smells, odors, stains, whatto do if you discover a working orabandoned drug lab, disclosurestatement, requirement to disclose,ordinances and other crime-relatedagency issues. Per Board policy .4BEU’s per class will be awarded uponsubmission of a course completioncertificate.

· Shirley Saathoff, City of MapleGrove requested BEU’s for 2 separatethree and one half (3.5) hour sessions ofsupervisor communication trainingentitled The Practical Language of

Supervision, sponsored by the City ofMaple Grove. The sessions ran from7:30 am to 11:00 am on April 12 andMay 10, 2005. Topics covered wereclear communication expectations,examples of effective communication,basics of communication and examplesand feedback. Per Board Policy .4 BEU’sfor each session.

· Robert Turek, City ofBloomington requested BEU’s for a 4-hour seminar that he and other assessorsfrom his office attended on April 22,2005. The Twin Cities Business ObjectsUsers Group (TCBOUG). Topicscovered were Meta/Data Quality, DataIntegrator, Universe/Meta Data,Repository, and Changes to UnderlyingData Structures/Platforms. Per Boardpolicy .4 BEU’s per class will beawarded upon submission of a coursecompletion certificate.

· Pat Walters, Winona County isrequesting CEU’s for a 2-day classentitled, Crucial Conversations. Eachday was 8 hours of instruction (8:15 to4:15 with a 30 minute lunch break) andwas sponsored by the county. Instructionincluded the principles and skills ofconversation, looking for warning signsthat safety is at risk, being persuasivewithout being abrasive, diffusingviolence, taking action and producingresults. Per Board policy 1.5 CEU’s willbe awarded for the 2 days uponsubmission of a course completioncertificate.

Application for Certified MinnesotaAssessor:

Gregg Larson made a motion to awardthe Certified Minnesota Assessordesignation to the following individuals:

Jean Bresin, Wright County.Stephan Martynow, City of Minneapolis.Scott Stanley, City of Minneapolis.

Jan Jackson seconded the motion. Themotion carried.

Issues/Discussion Items:

· Parking changes at DOR – willhave impact on the July meeting.

· Topics for the Summer SeminarAssembly

· Board Meeting Minutes on theWebsite

· Policies and recent changes toadd to the manual

· Professional DevelopmentCommittee Update

· Draft of Policies Other ThanContinuing Education (for inclusion inthe FY 06 Manual)

· Minutes from the May 11, 2005Professional Development CommitteeMeeting.

· Law Changes to the fee structurefor inclusion of fees for the RCSE andICSE.

There being no further business thechairperson set the date for the nextmeeting as Monday, July 25, 2005 at theSt. Cloud Holiday Inn.

Jan Jackson made a motion to pay allmeeting expenses. Mike Amo secondedthe motion. The motion carried.

Steve Sinell made a motion to adjourn.Gregg Larson seconded the motion. Themotion carried and the meeting adjournedat 2:50 PM.


What You Need To Know About New AQBAppraiser Qualifications for Certification

Meeting Appraiser Qualifications

HistoryOut of the savings and loan crisis of the 1980s the United StatesCongress created the Financial Institutions Reform, Recovery,and Enforcement Act of 1989 (FIRREA). Title XI of FIRREAtriggered a unique complementary relationship between thestates, the private sector, and the Federal Government. Title XIrecognized that the states were in the best administrativeposition to certify and license real estate appraisers and tosupervise their activities. Title XI authorized a private sector,not-for-profit organization, The Appraisal Foundation (seefurther explanation of TAF below), through its two independentboards to establish uniform minimum appraiser qualificationsstandards and uniform standards of professional appraisalpractice which would apply to the states. Title XI then createdthe Appraisal Subcommittee (ASC) to oversee the activities ofthe states and The Appraisal Foundation.In 1986 the IAAO along with eight other leading appraisalorganizations formed an Ad Hoc Committee on the UniformStandards of Professional Appraisal Practice (USPAP). In 1987,the eight United States committee members adopted thesegenerally accepted standards and established The AppraisalFoundation.

The Appraisal Foundation in its present form was incorporatedin 1989 and is affiliated with over eighty organizations,corporations and government agencies. Today, while there are

sponsoring organizations (including the IAAO), there are noindividual members of The Appraisal Foundation.The Appraisal Foundation, through its Appraiser QualificationsBoard (AQB) establishes the minimum educational, experienceand examination requirements for real property appraisers toobtain a state certification. The Appraisal Foundation itself doesnot certify appraisers. Rather, each individual state hasestablished laws to regulate the certification and licensing ofappraisers. Although it is not required, or necessary, for allappraisers to be state-licensed or certified, some must be inorder to perform certain services and others voluntarily chooseto become certified.

Revised Appraiser QualificationsWhile revisions to the qualifications have been made in thepast, at its February 20, 2004 meeting the AQB made sweepingchanges to the educational segment of the requirements. Thechanges have an implementation date of January 1, 2008.Assuming all states adopt the new changes, anyone seeking anappraisal license or certification in 2008 must satisfy these newrequirements. Existing credential holders shall be considered incompliance and thus do not have to complete the revisedqualifying education. The new requirements apply toreciprocity, temporary practice, renewals, and applications forthe same credential in another jurisdiction.

The AQB has placed the requirements into three distinctsegments or components:1. Education2. Experience3. Examination

Although the major area of change is in the Education segment,

Written by: Jim Todora, CAE, MAI

The International Association of Assessing Officers (IAAO)is confronted with one of it’s most problematic decisions anddaunting challenges. The IAAO must decide if, and perhapshow, it will significantly alter its education program to meetthe new state appraisal licensing and certification require-ments. How has it come about that IAAO must make thisdetermination?

continued page 34


What effect will this have on the IAAOProfessional Designation Program?

the Examination component will be updated to be consistentwith the new education. No changes are being made to theExperience segment.

Appraiser ClassificationsThe AQB places real property appraisers into fourclassifications:• Trainee• Licensed• Certified Residential• Certified General

The Trainee classification was adopted in 1993, all of the otherclassifications were created in 1991. The scope of practice forindividuals is limited by their classification. The Trainee mustwork under the direct supervision of a licensed or certifiedappraiser. The Licensed Real Property Appraiser classificationapplies to the appraisal of non-complex one to four residentialunits having a transaction value less of than $1,000,000 andcomplex one to four residential units having a transaction valueless than $250,000. The Certified Residential Real PropertyAppraiser classification applies to the appraisal of one to fourresidential units without regard to transaction value orcomplexity. The Certified General Real Property Appraiserclassification applies to the appraisal of all types of realproperty.

Each of the classifications requires a certain number ofprerequisite hours of qualifying education. Some of the coursetopics covered are legal considerations, economic principles,the valuation process, highest and best use, and appraisal

standards and ethics. With the exception of the standards andethics program known as the national Uniform Standards ofProfessional Appraisal Practice (USPAP) course, the content ofthe qualifying education, currently, has been rather generallydefined.

Educational RequirementsThe AQB has established a Course Approval Program as aservice to state appraiser regulatory agencies and providers ofreal estate appraisal education. Participation in this program isentirely voluntary. Ultimately, it has been up to each state todetermine if the education satisfies its licensing program. Thishas created some inconsistency from state to state and fromschool to school. It is anticipated that with the January 2008changes more uniformity will become inevitable. The AQB hasnot only defined what content the courses must include butalso mandated a Required Core Curriculum. This curriculumstates specific program titles and the required number ofeducational hours from each. In addition to mandating theminimum number of creditable class hours, the new rules alsocall for a college degree for certified appraisers. The CertifiedResidential classification requires an Associate degree or higherand the Certified General classification requires a Bachelordegree or higher.

Tables 1 and 2 provide a summarized comparison of the currentand scheduled qualification requirements.

Table 1. Current course requirements

Table 2. Course requirements as of January 1, 2008


The Core Curriculum lists 16 distinctcourses totaling 395 hours. The coursesvary from 15 hours to 60 hours. Most are30 hours each.

Regardless of which credential is beingsought, three primary courses arerequired:

♦ Basic Appraisal Principles♦ Basic Appraisal Procedures♦ National USPAP Course.

After these three, the required coursesfollow separate paths depending onwhich credential is being pursued. Belowis a listing of the Core CurriculumCourses as required for the respectivecredentials:

TraineeBasic Appraisal Principles; 30 Hours Basic Appraisal Procedures; 30 HoursThe 15-Hour National USPAP Course orits equivalent; 15 HoursTrainee Education Requirements 75Hours

LicensedBasic Appraisal Principles; 30 HoursBasic Appraisal Procedures; 30 HoursThe 15-Hour National USPAP Course orits equivalent; 15 HoursResidential Market Analysis and Highestand Best Use; 15 HoursResidential Appraiser Site Valuation andCost Approach; 15 HoursResidential Sales Comparison andIncome Approaches; 30 HoursResidential Report Writing and CaseStudies; 15 HoursLicensed Education Requirements 150Hours

Certified ResidentialBasic Appraisal Principles; 30 HoursBasic Appraisal Procedures; 30 HoursThe 15-Hour National USPAP Course orits equivalent; 15 HoursResidential Market Analysis and Highestand Best Use; 15 HoursResidential Appraiser Site Valuation andCost Approach; 15 HoursResidential Sales Comparison and IncomeApproaches; 30 HoursResidential Report Writing and CaseStudies; 15 Hours

Advanced Residential Applications andCase Studies; 15 HoursAppraisal Subject Matter Electives; 20HoursStatistics, Modeling and Finance; 15HoursCertified Residential 200 Hours

Certified GeneralBasic Appraisal Principles; 30 HoursBasic Appraisal Procedures; 30 HoursThe 15-Hour National USPAP Course orits equivalent; 15 HoursGeneral Appraiser Market Analysis andHighest and Best Use; 15 HoursStatistics, Modeling and Finance; 15HoursGeneral Appraiser Sales ComparisonApproach; 30 HoursGeneral Appraiser Site Valuation andCost Approach; 30 HoursGeneral Appraiser Income Approach; 60HoursGeneral Appraiser Report Writing andCase Studies; 30 Hours

Appraisal Subject Matter Electives; 30HoursCertified General 300 Hours

Table 3. Composite summary of course requirements for each credential


Table 3 provides a composite summary ofeach credential along with thecorresponding Core Curriculum CourseRequirement including the number ofhours.

Segmented versus Firm DateRealizing that the January 1, 2008deadline will present a dilemma for thoseaspiring appraisers that have completedsome, but not all, of the currentrequirements the AQB is offeringalternatives. States may choose toimplement the new criteria on a“Segmented” basis or a “Firm Date”basis. Under the Segmented approach astate determines when a component wascompleted and then determines whetherthe applicant conformed to the AQBcriteria in effect at the time. For example,an applicant may have completed allrequired education under the currentcriteria prior to January 1, 2008 but hadnot completed the examination. Thereforethe State could grant approval of theeducation under the older criteria butrequire successful completion of theexam under the new criteria. Under theFirm Date approach, an applicant mustconform to all components of the new2008 criteria in order to have thecredential issued after January 1, 2008.

Currently, of the 58 states, territories anddistricts employing the AQB standards,23 have decided to implement the Firmapproach, 12 have decided upon theSegmented approach and the balance areundecided or unknown.

Alternative Matrix ApproachAs an alternative to developing coursesthat specifically follow the CoreCurriculum outline listed in its guidenote, the AQB offered a matrix approach.This alternative permits an educationprovider to cross-reference its existingmaterial to the sub-topics listed in theguide note.

IAAO OptionsThe IAAO Executive Board directed theProfessional Development Committee

(PDC) to explore ways to meet the newAQB requirements. The PDC formulatedthree options to explore:1. Independently develop the 16 courses2. Partner with other education providers3. Purchase the courses from anothereducation provider

All three options are being investigatedby the PDC. The AQB matrix alternativeof cross-referencing courses wasconsidered but rejected for severalreasons. The current IAAO curriculumdoes not include enough hours ofqualifying education to meet the hourscalled for under the AQB requirements.Significant supplements would have tobe made in order to satisfy the newstandards. Furthermore, attempting to usethe IAAO basic courses “as is” for part ofthe AQB Qualifying Educationrequirements would likely not present acompetitive option in the marketplace.Students are inclined to partake inqualifying education, which offers themost direct path to completing therequirements. Therefore, the matrixoption was discarded.

To focus on option 1, independent coursedevelopment, the PDC has surveyedcourse developers to determine the likelycost to develop all 16 courses, if theIAAO were to develop themindependently. This option presents themost flexibility for the IAAO but alsopresents the largest immediate capitaloutlay.

As for option 2, partner with othereducation providers, during the latter partof 2004 the IAAO entered into amemorandum of understanding (MOU)with the American Society of Appraisers(ASA) and the National Association ofIndependent Fee Appraisers (NAIFA) toform an education alliance. The initialphases of the understanding called forthe organizations to see if an acceptableformal agreement could be developed toallow the alliance to collectively

complete a course curriculum to satisfynot only the AQB but also all threeorganizations. It was agreed to pool thecourse materials from the inventory of allthree groups and select the most suitablematerial to satisfy the AQB course topics.Two directors were selected from eachorganization as representatives on theEducation Alliance. After selecting andcorrelating the education material, thedirectors drafted the framework for anagreement to be presented to theirrespective governing bodies forconsideration.

Option 3, purchase the courses fromanother education provider, is beingconsidered in discussions with anotherappraisal organization. The AppraisalInstitute (AI) has approached the IAAOand offered the use of its courses byvarious means to IAAO students.Currently, final terms for a workingagreement have not been determined.

DecisionThe Executive Board will make the finaldecision as to adopting any of theseoptions. The IAAO could, of course,decide to do nothing and continue itseducation program as it now exists. IfIAAO does nothing, will it remain acompetitive force in appraisal education?If it decides to provide the courses ascalled for by the AQB Guide Note, whatwill it do with its current curriculum?Can it maintain its current curriculum infull as well as the new courses requiredby the AQB? What financial influencewill these decisions have on theassociation? What effect will this haveon the IAAO Professional Designationprogram?

If IAAO does nothing, willit remain a competitiveforce in appraisaleducation?


These are but a few of the questions thatmust be addressed in the decision-making process. The final choice must bemade in the best interests of the IAAOmembership, course providers, andstudents. The desire to continue as amajor supplier of education to thosepursuing state licensing or certification,coupled with a desire to remain thepreeminent leader of mass appraisal andassessment administration courses willweigh heavily in the selection.

Note. “Meeting Appraiser Qualifications” by James F. Todora, CAE, MAI, 2005, Fair & Equitable, Vol 3, Number 7, beginning onp. 5. © 2005 by International Association of Assessing Officers (IAAO), Reprinted with permission.

Jim Todora, CAE, MAI is the electedproperty appraiser of Sarasota countyFlorida. Jim has over 30 years ofappraisal and assessment experience.he has been a member of IAAO since1981 and he is a Senior Instructorspecializing in Mass AppraisalCourses.

Jim is currently the chairman of theIAAO Professional DevelopmentCommittee. He can be reached [email protected]

ConclusionThe future will show how the AQBchanges will affect the public, influencethe quality of appraisal services, andchange those working in the field.However, current appraisers, those usingappraisal services, and anyone planningto join the field should become familiarwith these scheduled changes.

ReferencesAppraisal Subcommittee,www.asc.govThe Appraisal Foundation,www.appraisalfoundation.orgThe International Association ofAssessing Officers, www.iaao.org

• Residential use propertiesincluding seasonal residential recreationaland residential homestead and non-homestead property; and

• Commercial/industrial property.

To develop these reports, we are workingwith MAAO to form workgroups for eachof the property types listed above. Theseworkgroups will begin by gathering facts.They will review the relevant statutoryprovisions and any pertinent bulletins,directives, etc., issued by the Department of

Revenue, as well as any other informationeach workgroup deems necessary.

After gathering the backgroundinformation, the committee will developrecommendations and guidelines forachieving greater uniformity.

Reviewing assessment practices is notsomething to be feared. In fact, this processis probably overdue. We believe thesereports will demonstrate that assessment

Views You Can Use...from page 14

practices are relatively consistent overall.However, we know there is always roomfor improvement. These reports willcontribute to greater uniformity ofassessment and classification practicesthroughout the state, which will alsoincrease the public’s confidence in theassessment process.

Questions or CommentsIf you have questions or commentsregarding the new legislation, please emailthe Information and Education Section [email protected].



Region 1 Kathy Frette

Region 2 Ken Skaare

On the Gowith MAAO

The August Region 1 meeting was hostedby Fillmore County and held at the OldBarn Resort by Preston. Owners Dougand Shirley Brenna gave a presentationand a tour of the facility. PresidentPeterson called the meeting to order andintroduced MAAO President DaveArmstrong as a guest.

Bob Pickett reported that the ExecutiveBoard had a joint meeting with theLegislative Committee planned. Tami

Paulson reminded everyone that theUSPAP course offered in November isapproved for commerce credits. DORRepresentative Lloyd McCormickannounced a Green Acres Committee hasbeen formed that consist of MAAOmembers and the DOR. They plan onlooking at creating more consistencyamong the counties. A CRV Committeehas been set up to develop web-basedCRV filing.

Steve Hacken asked for feedback on theelectronic format of Equal Eyes. TheEditorial Board is always looking forarticles.

MCCC is hosting a demo from Manatronat the MCCC office. Counties that arepart of MCCC are strongly urged toattend. The September meeting will behosted by Freeborn County.

Sue Wiltse called the June Region 2meeting to order. There are no newmembers. McLeod County is hiring asenior appraiser. Tom Mahoney talkedabout the tax court case in ChippewaCounty for CREP. It will take 2 to 3months before a decision is made. TheDNR will have new CREP along the DeMoines River Valley.

There is some interest in a USPAPcourse. If you are interested contact Sue.The 2006 IAAO conference will be inMilwaukee. It might be an opportunity toparticipate at an IAAO conference. JimHallstrom asked that recognition be givento the secretaries that have handled theMAAO courses through the U of M. Suesaid she would talk to the EducationCommittee. The handling of the core

classes would be the responsibility ofMAAO. Jim also suggested that theclasses have co-instructors and not a leadinstructor. The idea was seconded andapproved.

Julie talked about the form report writingclass. The dates are July 19, August 9and August 30. It will be in Blue EarthCounty and will be $30 for Region 2members and $50 for non-Region 2members. When fees are paid a CD willbe sent and the student will have to printtheir own manual. The class is limited to30 people. Region 2 will get first choice.

There was discussion about the raffles atSummer Seminars. Some individuals hadexpressed that they thought there weretoo many. Region 2 members did not

agree. $1100 was made from the SilentAuction and $350 from the print raffle.

September 9 will be the golf outing inWautowan. July 22nd will be the nextRegion meeting to be held at WestwoodGolf off of Lake Washington. Julie andPaul attended the NCRAAO Conferencein Illinois. Paul attended as arepresentative and Julie spoke at theconference. They felt it was a goodconference with good class choices.

Mark Carlson is the new appraiser inNicollet County.

The Ag Committee report stated thatthere is no response yet from tax courtregarding CREP. The elevator schedulewill be updated due to new sales. One



Region 3 Gregory Kramber

Region 2 continuedCREP at $1400 an acre and one CRP at$2800 per acre.

Sue Wiltse will remain on the EducationCommittee. The committee is discussingways to recognize Theresa Washingtonand Lori Gravens for all their hard workover the years regarding appraisalclasses. Jim Hallstrom will remain on theLegislative Committee.

There will be a joint meeting August 5th.Watonwan County will host theSeptember meeting.

There were 27 members in attendance atthe May meeting. Dan Raboin wasintroduced as the new Chisago Countyappraiser. Jeanne Henderson reportedthat the Ag Committee is looking at thedevelopment of an agricultural course.Topics would include: valuation,classification, Special Ag homesteads,gravel pits, RIM, CRP, etc. StearnsCounty has been asked by the committeeto write an article on the administering ofthe Green Acres program.

Gary Grossinger reported that Jane hasresigned from ACS. Carla Patton hasfilled her vacancy. The MCCC AnnualConference will be held June 6-9, 2005 atthe Arrowwood Resort in Alexandria.One of the sessions will go over theMulti-Property Linkage changes. ACSand MCCC will be holding trainingsessions on the new adjustment program,MP usage, report models, and the 10largest taxpayers report. AVT will makea recommendation regarding the RFP atthe MCCC Annual Conference.

Steve Hurni announced the 2005 StateBoard of Equalization meeting date. Theformat will follow a more discussionbased meeting. They will be reviewingagricultural borders between counties forequalization. Agricultural border issuesdo exist. Region 3 voted to develop anequalized formula for the 2006assessment Green Acres valuation.

Mille Lacs County will host the annualfishing outing in June. The Olde TimersPicnic will be held in July. KurtBeckstrom will be catering the event.

The June meeting will be held at WalleyeDundee’s Resort.

Gary Grossinger reported at the Junemeeting that Manatron has beenrecommended to replace ACS. Thefollowing topics were discussedregarding regional uniformity: CellTower sites, Gravel Pits, Golf Courses,Bill Boards and Green Acres.

The Warner Park Nature Center was thesite of the July meeting. JeanneHenderson from the Ag Committeereported that the committee is looking atthe development of an agricultural courseand looking for instructors. A grainelevator seminar will be held at the 2005MAAO Fall Conference. Marty Schmidtis working on the course material for aconservation easement seminar. StearnsCounty is looking for true farmer tofarmer sales.

Brain Koester reported for the EducationCommittee. Jason Nord, Jacque Betz andJohn Hagen will be explaining the newproperty tax legislation at numerouslocations. Bob Wilson is the new Chairof the Education Committee.

Region 3 will be co-hosting thehospitality room at the Fall Conferencewith Region 7. Contact Gary Grossingeror Greg Kramber if you are able tovolunteer. The region conformity surveyswill be discussed at the August regionmeeting. The golf course results will bediscussed at the September meeting. TheAugust meeting will be held at the

Pokegama Lake supper Club located nearPine City.

Jeanne Henderson reported at the Augustmeeting that the Agricultural-Green AcresCommittee has been formed to satisfy the2005 legislation. The object is to bringuniformity within the state. SherburneCounty has been working on wetlandexemptions.

Gary Grossinger reported for MCCC/Taxadvisory. Angie Johnson was elected asCAMA Chairperson and Bob Moe waselected as a new CAMA member fromRegion 1. The contract with MarshallSwift is being reviewed. A standard taximport file will be created. This willremedy issues that develop using CAMAsystems and tax systems from differentvendors. There has been a request tohave Sequel training available forassessors. Some 4d information isavailable on the FMHA website.Counties will be notified of the 4dproperties in their county after the filingdate has passed.

The September meeting will be at theChisago Lakes Golf Course in Lindstrom.The joint Region 3 and Region 9Christmas party will be held December16, in Becker, MN.



Region 7 Cheryl WallRegion members met at the Detroit LakesCountry Club in Becker County Friday,May 20th, 2005.

Suzie Lohse reported that Vern Johnson’swife was in a car accident recently, but isrecovering well at a local nursing home.Larry Johnson sent out an email saying hewas doing better and was supposed to begoing home to Alexandria. We all wishhim well in his recovery.

The current count of different licenselevels per State Board of Assessors:CMA = 603 (229 Income Qualified)CMAS = 97 (73 Income Qualified)AMA = 47SAMA = 207

Cheryl reported that the registrationbrochures are out for the UofM coursesthis year. Bob M. reported thatoutsourcing went well this year. Ageneral discussion was held on this topic.

The group held discussion on somespecific classification issues from ourregion. Local Board of Appeal andEqualization training-Wheaton is hostinga training July 7th with one session in themorning and one in the afternoon.Another will be held in Ottertail Countysometime this year.

Region 6 Barb TrochlilThe September meeting of Region VIwas held at The After Five in Madison onFriday, September 9. President Pedersoncalled the meeting to order. Tim Fallkumhas a new employee, Valora Svor. AlHeim is the Grandpa of two girls.

Judi Thorstad reported for the LegislativeCommittee on the hiring of a lobbyist.The lobbyist would be a contact personand gather information and would be ableto contact the Legislative Committee ifthere would be an issue they need to beconcerned with. The cost would be$10,000 to $15,000 and would need to beapproved at the Annual Meeting. Howthis person would handle conflicts of

interest was also discussed. Judi alsoreported that in preparation for the EthicsCourse, Jacque Betz is in Los Angelesattending Ethics training.

Connie Erickson reported for theExecutive Board. She remindedeveryone to get their hotel room bySeptember 18th for the Fall Conference inMinnetonka. She discussed the nextdeadline for Equal Eyes, which will beDecember 1. $150 will be an incentive towrite articles for Equal Eyes (somerestrictions do apply). It was alsosuggested in order to resolve the problemwith views that legislators have about

assessors and other issues, that we inviteour legislator to our meeting.

The DOR Reps will be meetingSeptember 20 and 21. All Reps will meettogether the first day and then have a fulldivisional meeting the second day. It waspointed out that some lending institutionshave been adding in an extra amount fornew construction with the purchase priceon CRV’s.

The next meeting will be held in Olivia.The Annual Region VI Land Meeting willbe held October 5.

Region 5 Byron

Region 4 Debra DavisThe July meeting was held at Gunn Parkin Grand Rapids. Dale Smith reportedfor the Editorial Board and announcedthe PDF issue would be in the mail

shortly. Steve Kuha reported on the newtax bill. He went over some of the majorchanges.

John Gellatly is the new Assistant St.Louis County Assessor and Mel Hintz isthe new St. Louis County Assessor. TheAugust meeting will be at the Forest LakeRestaurant in Grand Rapids.

MINUTES NOT SUBMITTED



Region 8 Nancy AmbersonReuben Rydeen (former Regional Rep)and Mr. & Mrs. Harris Sachau (formerBeltrami County Assessor) were specialguests at the August meeting. Stevereported for the Ag Committee that theyare still looking for any and all sales thatinvolve easements or encumbrances.Steve will be on the Green AcresCommittee.

Michelle reported that the electronicissue of Equal Eyes was favorablereceived by some and not by others.Joann reported that the ExecutiveCommittee will be having a joint meetingwith the Legislative Committee in lateAugust.

Wayne reported that the new law are onthe Minnesota Department of Revenuesite. Note changes in the resort law, 4DDhousing and that Limited Market Valuehas been extended. Steve Kuha asked ifMAAO should hire a lobbyist. Region 8is not in support of a lobbyist at this time.

Professional Development Committee-This committee met May 11th in St.Cloud. One of the main topics thiscommittee has been working on is thepossibility of having St.Cloud StateUniversity develop, teach and orcoordinate MAAO weeklong corecourses. Steve Behrenbrinker recentlymet with SCSU in regards to this issue. Arecommendation will be made to theExecutive Board May 24th on behalf ofthe PDC. We’re recommending that weas an organization pursue the option tohave Dr. Mooney (of SCSU) develop acourse in line with core Course B andcore Course H and then teach thecourses, with or without an assessor co-instructor, at a rate of $2000 per week.These instructor costs would be blendedinto the overall course costs. Thesecourses are to be ready for the courseschedule 2006. Generally, income toMAAO will be based on the number ofattendees and MAAO subsidies, if any.Costs of the courses should be able toremain stable.*An MAAO copyright will beimplemented into this year’s core coursesthrough the UofM on the title page insideeach student reference manual.*The PDC is making a recommendationto the State Board of Assessors thatCourse H (once updated) or a massappraisal course be a requirement for aCMA. This would mean that course A, Band H would be the makeup of a CMArather than course A, B and an elective.A recommendation will also be made tothe State Board of Assessors that the

Region 7 continuedrequirement for CMAS read: Course A,B, H and two income courses (rather thantwo electives).*Another recommendation from the PDCto be made to the State Board ofAssessors is in regards to the AMAlicense level. We would like the words“One Elective course” under the AMAlevel to read “One Additional Incomecourse”.

Old Timers Picnic will be held in July.The Chippewa Park near Brandon hasbeen booked.

Brief discussion was held in regards tothe 110-day notice of submittingamendments to MAAO constitution andby-laws and proposed resolutions. Adiscussion on the State Board ofEqualization meeting coming up andsome of the topics that may be discussedat that meeting.

The County Corner Café in TraverseCounty was the location of the Junemeeting. Brad Averbeck reported that hewill be teaching a LBAE training sessionin Detroit Lakes July 20th. TheDepartment of Revenue website has beenupdated with the training sessionlocations, dates and times. The StateBoard changes should be out soon.

Keith Albertsen reported that the rulechange allowing a case study exam as analternative to a narrative becameeffective June 1. Approved proctors areDeb Volkert, Pan Lundgren, Gary

Amundson, Keith Albertsen, DoreenPehrson, Steve Sinell, SteveBehrenbrinker, Bob Wilson and KimJensen. To take the exam contact PamLundgren to get an exam application anda proctor. State Board minutes are nowavailable on the DOR website.

Cheryl Wall reported that those lookingto achieve their AMA designation wouldneed the 15 hour USPAP course. ScottRenne has agreed to instruct this courseNovember 15.

Region members met at Itasca State Parkfor the September meeting. CraigLiljegren, currently with Northern BorderPipeline, accompanied Loren Johnson asa guest. Course A in January has beencancelled. After reviewing the proposedcourse outline developed by Dr. Mooney,the DOR identified some areas of CourseA that should be revised to better relate tothe new Course B. The DOR hopes tohave the new revised Course A ready togo by the Spring of 2006.

Bob H. reported for the Executive Board.The Board commented positively on thesummer issue of Equal Eyes. Thecommittee will be looking to sending out2 issues a year electronically. The Boardapproved a preliminary budget for 2006.

The group discussed the 2006 RegionCost Schedule. Loren will make a minorchange in the plumbing fixtures sectionand will send the schedule out to allmembers again.


Region 9 Laura FridgenWashington County hosted the July jointmeeting with Region 1. Bruce Munneke,County Assessor, introduced his staff.President Jim Atchison reported for theEducation Committee. Workshop 151 istentatively scheduled for November 15and 16 at the Holiday Inn in St.Cloud.There is still space available in Course A,H, K and IAAO 102.

Jan Olsson reported that the current issueof Equal Eyes is available in a PDFformat on the MAAO website. BruceSanders thanked the Editorial Board for ajob well done. He reminded everyonehow to log in as a member on thewebsite.

Larry Austin reported for the Departmentof Revenue. Larry has a new cell phonenumber. Every county assessor shouldhave received a list of town board andcity council members who are currentlycertified for the 2006 local boards. PamLundgren recently sent out a listing of allcurrent licensed assessors. Please reviewthe list for accuracy.

Nancy Bye announced the Region 9directory will be updated and put on theMAAO website. The cost of the doorprizes given away at the Fall Conferencewill be taken from the conference budgeteach year. Nancy introduced PatrickTodd as the new Minneapolis CityAssessor. The next Region 9 meetingwill be held in August and will be hostedby the City of Maple Grove. It will also

be the election of officers. $88 wascollected in the 50/50 drawing and CurtPiepenburg walked away with $44 in hispocket.

Maple Grove was the host of the Augustmeeting. Acting City Assessor BruceSanders introduced the staff that waspresent. New attendees were TrishaSauer, new assessment technician for theCity of Minnetonka; and MikeVanderLinden, appraiser for the City ofPlymouth. Jerry Pedlar gave apresentation on North Memorial HealthCare proposal for a campus in MapleGrove.

Steve Baker, reporting for the LegislativeCommittee, discussed fees for providingcopies of government data, effectiveAugust 1, 2005. Standardized recordingfees were also discussed. Reminder thathome daycares should not have a splitcommercial/residential classification.

Jim Atchison reported for the Educationcommittee on the contract with St. CloudUniversity for educational needs. Thiswould include rewriting courses and co-teaching as well as registration. Therewas a recommendation to have a newcourse written entitled “Principles ofReal Estate”. Lori Graven and TheresaWashington will be presented plagues atthe Fall Conference for their contributionover the years with MAAO educationalneeds.

President Atchison thanked theInformation Systems Committee fordoing a great job. Larry Austin discusseda number of issues. To Maximize storagespace, the DOR is looking at thepossibility of proposing a rules change tothe CRV retention schedule. They areconsidering a two year schedule insteadof three. Larry discussed rejection codesfor the ACE exchange. The DOR isworking with Dakota and HennepinCounty as pilot counties on a E-CRVprocess.

Stephen Baker discussed the sample sizeissue. 1031 exchanges can be consideredopen market after careful salesverification.

Kim Jensen was reelected as the Region’srepresentative to the EducationCommittee. Steve Sinell was nominatedfor Vice President; motion carried. LeroyArnoldi was nominated for President andthe motion carried. Congratulations to allthree! A motion was made to supply$100 to both Bill Peterson’s and SteveBehrenbrinker’s campaigns.

It was discussed and agreed upon thatfrom hence forward $100 would becontributed to the Joint Xmas Party withRegion 3. Minneapolis will host theOctober meeting and the City ofPlymouth will host the Novembermeeting. Bill Peterson won the 50/50drawing and donated his share to thescholarship fund.

Brad reported that the Reps will bemeeting in September. Brad read anemail regarding the DOR law changesaffecting LBOE training. The deadlinehas been extended to December 2006.Duane Ebbighausen will be the Region’srepresentative on the Resort Committee.Brad suggested that we discuss our land

schedules for 2006 at the next meeting.The consensus was that not everyonewould be ready by then. It was alsosuggested to review farm buildingschedules and grain bin schedules at theSeptember meeting.

Several counties provided informationregarding small town commercial salesand what is happening out there. Thequestion regarding how counties areassessing mobile homes owned andparked in the owner’s mobile home parkwas addressed. The next meeting will bein September in Bemidji.

Region 8 continued


Written by Rebecca Malmquist, SAMACity of MinnetonkaEqual Eyes Managing EditorEditorial Board Chair

As I See It

Another issue is complete.

Putting the final touches, doing the lastedits and making sure nothing wasforgotten is a stressful stretch of days forme. I am so glad I have Jan to help mewith the proofing of articles and themagazine itself.

Since we are meeting in just over a weekat the 2005 Annual Conference, I wouldlike to say now that I am so grateful toMAAO, President Armstrong, theExecutive Board, my wonderful EditorialBoard Committee and membership forallowing me to serve as Equal EyesEditor and Editorial Board Chair. I amalso very thankful that my supervisor,Richard Toy has allowed me to be activein the organization and that mycoworkers Joe DaBruzzi, Amy Weber,Eric Johnson, Shelly Gelo, and TrishSauer are supportive. I am very fortunateto be able to serve as the Editor of thispublication. One of the most rewardingparts of the job is getting to meet, interactwith, and learn from the members. Manyof you I had not talked to before and nowI feel like I could call you on the phoneand ask (ok, maybe beg) you for anarticle. I enjoy getting to know more andmore of you as we work on each issue.

This year I attended the IAAOConference in Anchorage, Alaska alongwith about 13 others from Minnesota. Inaddition to all Alaska offers by way ofnatural beauty, the conference was wellattended, well organized and had goodeducational offerings. In addition, whichwas one of the highlights of my trip wasthat Equal Eyes was presented with theIAAO’s Zangerle Award. The Zangerlewas named in honor of IAAO’s thirdpresident John A. Zangerle. It ispresented to an outstanding periodical or

publication of an assessor’s organization.It was great to be able to walk up andaccept the award for the organization.

Looking ahead for the new year, theExecutive Board has brought forward aproposed budget that will be presented atthe Annual Conference. It is proposedthat we continue with one and perhapstwo electronic versions of Equal Eyesthis year. The last issue was in electronicformat only, and I received commentsboth in favor of this format and othersthat enjoy receiving a hard copy in themail. Please talk to your RegionDirector, a committee member or amember of the Executive Board if youhave any comments about the future ofthe publication.

Another piece ofexciting news for theupcoming year isthat the EditorialBoard is, for thefirst time since Ihave been amember, fullystaffed. We havesigned on ConnieErickson from YellowMedicine County.Connie is currently finishing up her termas the Region Director for Region 6. Thatbrings us to a group of seven. Themembers are Jan Olsson, City ofPlymouth; Michelle Cote, Polk County;Marci Moreland, Carlton County; SteveHacken, Winona County; Nancy Wojcik,City of Brooklyn Center; and ConnieErickson, Yellow Medicine County. Wehope that with some of the changes thatthe Executive Board is proposing, that wecan see some more great articles comeacross our desks.

Also at the Annual Conference this year,the Top Pen Award will be given. TheTop Pen Award is selected by the PastPresident’s Group. It will be awarded atthe Banquet on Tuesday evening.

The next issue deadline is December 1,2005. We look forward to your articles!

I could not help but share this photo. Itwas taken on our trip to Alaska President

Dave wanted it taken of MAAO’simmediate Past President Tom May

(right), current President Dave Armstrong(center), and future President Bill Peterson

(left).


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