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Winter 2019 Newsletter

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President's Letter

2019 North Star Chapter President Josh Folland, MAI (left),
with 2019 Appraisal Institute President, Stephen Wagner, MAI, SRA, AI-GRS

Hello North Star Chapter members,

There is a lot to love about the quiet and peacefulness of winter in Minnesota.  Life just seems to slow down, allowing us to catch our breath, look back on last year, and make plans for the coming year.  I wanted to use this message to highlight the successes of last year and set the stage for 2019.

Our Education Committee, chaired by Brett Hall, MAI, SRA, continues to expand our offerings to chapter members.  In 2018, we had courses in the Twin Cities and Duluth, and we plan to continue our outreach in the underserved outstate areas.  Brett and his committee have fostered a relationship with the Minnesota Association of Assessing Officers (MAAO), and the North Star Chapter is now the education provider for their Basic Appraisal Principles and Procedures courses.  The Chapter is also providing USPAP instruction at the MnDOT Right of Way conference in the fall.  Check out our full schedule of upcoming courses in 2019!

Our Scholarship Committee, chaired by Michelle Koeller, MAI, awarded the first Kurt Ophus Scholarship to Andrew Totzke at the November Chapter Meeting.  The committee also created a new scholarship opportunity for Practicing Affiliates that will provide opportunities for newer people to the field.  In 2019, the committee will be awarding three scholarships: the Kurt Ophus Scholarship, the Practicing Affiliate Scholarship, and the Tom Turner Grant.  Check out the Chapter Scholarships page on our website for more information!  Also, please be aware that the national Appraisal Institute Education & Relief Foundation offers a variety of scholarships to advance the industry.  (Continue Reading)

Sincerely,
Josh Folland, MAI
2019 North Star Chapter President

Registration is Now Open for the 2019 Spring Chapter Meeting

Wednesday, April 3, 2019
11:30am – 2:30pm
Pinstripes, 3489 Gallagher Drive, Edina, MN 55435 (MAP)

2040 Comprehensive Plan Update
This two-hour seminar – presented by Phil Carlson, AICP, and Beth Elliott, AICP, with Stantec – intends to inform attendees about the Twin Cities Metropolitan 2040 Comprehensive Plan Updates from the perspective of the urban and suburban communities in the metro area.  We will offer a historical look at how the Twin Cities metro area has developed and how cities’ comprehensive plans have played a role in guiding development.  The presentation will also focus on the various changes between the 2030 Comprehensive Plan Updates and the 2040 Comprehensive Plan Updates, which will include a discussion of planning theories/trends that are being implemented by the comprehensive plan updates.

Continuing Education Credits
Appraisal Institute – 2 hours CE approved.
MN CE – Appraiser and Real Estate – 2 hours applied for.

Register Now

2019 Winter Chapter Meeting Recap

     
  The 2019 Winter Chapter Meeting was held on Friday, February 22 at Jax Cafe in Minneapolis, Minnesota.  We had nearly 100 Chapter members in attendance, and they were treated to two insightful educational presentations and a delicious banquet!
     
Our first presenter was Tom O’Neil, Vice President of Market Development for  Dougherty Mortgage.  Tom provided an update of the Twin Cities multifamily market, including product types and geographic submarkets, development patterns, and a 2019 outlook.  
     
  Our second presenter was our very own Marsha Goff, MAI, Executive Vice President of Merchants Capital.  Marsha provided an update on financing and multifamily housing, focusing on interest rate stack, capital markets, and refinancing market rate and affordable housing projects.
     

Click here to download the speakers' presentation slides!

Committee Reports

Bylaws Committee - Submitted by Chair Jeff Warfield, MAI

We have made changes to the North Star Chapter Bylaws as requested by AI.  The changes ensure our local chapter bylaws are consistent with national Appraisal Institute Bylaws.  The changes removed specific dates for payment of Chapter dues, and non-payment dates for suspension and termination of membership.  The language is replaced with a general statement stating, "policy is set by the national board of directors."

Education Committee - Submitted by Chair Brett Hall, MAI, SRA

Education is booming for the North Star Chapter in 2019.  We have over 12 qualifying and continuing education offerings planned for 2019.  We will be offering another CE class in Duluth in the spring, and we will be offering the 7-Hour USPAP update course as part of the MNDoT Right of Way conference at Breezy Point Resort in October.  Additionally we have partnered with the Minnesota Association of Assessing Officials (MAAO) to offer the Appraisal Principles and Procedures classes, not once, but twice this year.  Make sure to sign up and come join the fun!

2018 Chapter Honorary Award

The Honorary Award recognizes one or more Chapter members for their outstanding service, dedication, and commitment to the Chapter throughout the year. The Chapter President (in consultation with the Board of Directors) selects the recipient(s) who have gone above and beyond to contribute to helping the Chapter membership and ultimately the whole organization grow and flourish.

Congratulations to 2019 North Star Chapter Secretary Christine Mackaman, MAI, AI-GRS!

Click here to see all the past winners of this award.

2018 November Chapter Meeting Highlights

   

It was a full house for the address by 2019 AI President, Stephen Wagner, MAI, SRA, AI-GRS.

2018 AI Lifetime Achievement Award recipient Craig Harrington, SRA, AI-RRS, was recognized during the ceremony.
   

2018 Chapter President Chapter Justin Reed, MAI (right), received his presidential gavel from Stephen Wagner.

The 2019 Chapter Board of Directors were officially installed at the meeting and took their oath of office.

Member Updates: Sept. 11, 2018 - Feb. 28, 2019

 
New MAI Designated Members:
  • Brent D. Pederson, MAI - Patchin Messner Dodd & Brumm, Burnsville, MN
  • Mark A. Warren, MAI - BRKW Appraisals, St. Paul, MN
New AI-GRS Designated Members:
  • Reid P. Loidolt, MAI, AI-GRS - TCF National Bank, Minnetonka, MN
  • Christine L. Mackaman, MAI, AI-GRS - Patchin Messner Dodd & Brumm, Burnsville, MN
New Candidates for Designation:
  • Craig A. Christianson - Chadwick Appraisals, Minneapolis, MN (MAI)
  • Kari K. Rageth - Integra Realty Resources, Minneapolis, MN (MAI)
  • Michael Toates - Toates Appraisals, Inc., Brandon, SD (SRA)
  • Jeremy J. Wicker - Diversified Real Estate Services, Inc., Minneapolis, MN (MAI)
New Practicing Affiliates: 
  • Ben P. Dahl-McGlone - Patchin Messner Dodd & Brumm, Burnsville, MN
  • Jermaine C. Fritz, Jr. - Newmark Knight Frank, Minneapolis, MN
  • Jack A. Jaeger - Newmark Knight Frank, Minneapolis, MN
  • Thomas Petzold, Jr. - Insight Realty Advisors, St. Paul, MN
  • Connor M. Reid - Nicollet Partners, Minneapolis, MN
  • Timothy Sletten - Meekins Appraisals, Huron, SD
  • Sarah G. Sweiven - Nicollet Partners, Minneapolis, MN
  • Erin Waytas - Nagell Appraisal, Plymouth, MN
New Affiliates:
  • Brian Ambuel - Prairie Rose Properties, Minneapolis, MN
  • Matthew Hagelin - Minnesota Power/ALLETE, Inc., Duluth, MN

The Designated Difference

"My appraisal career began in 2004, after graduating from St. Thomas University with a Bachelor of Science in Real Estate Studies.  The majority of my career has been with Patchin Messner Valuation Counselors; however, I also spent three years appraising natural resource land in the Pacific Northwest.  I chose to pursue the MAI designation in order to demonstrate a level of commitment and professionalism to potential clients.  Further, I occasionally receive RFPs that require a designation such as the MAI.  As such, I view this credential as a necessary achievement in order to take my career to the next level."

- Brent D. Pederson, MAI        

Ready to begin your own designation journey? Click the banner below to get started!

In Memoriam: Raymond "Ray" W. Kirchner

Raymond "Ray" Kirchner, a longtime real estate appraiser, passed away unexpectedly on October 6, 2018.  Ray earned his SRA Designation in 1971 and went on to become an SRPA as a member of St. Paul Chapter #16 of the Society of Real Estate Appraisers.  He was an active member who served on and contributed to many committees.  After the merger, he enthusiastically continued to attend the Appraisal Institute meetings and educational offerings, always with a big smile and a great story to share with all.  Ray semi-retired and received Life status in 2010.  He has been and will be missed by all.

Upcoming Chapter Education

Full Schedule

2018 Kurt Ophus Scholarship

Kurt Ophus, MAI, was a dedicated leader within the North Star Chapter and Education Committee Chair for many years.  As a memorial of his commitment to education, funds have been generously awarded by Kurt's family, businesses, and individuals for the benefit of Chapter members wishing to further their appraisal-related education.  

Congratulations to the 2018 Kurt Ophus Scholarship recipient, Andrew Totzke!

Andrew is an associate appraiser at Patchin Messner Dodd & Brumm and an active Candidate for Designation, Appraisal Institute (MAI).  This year, he joined the North Star Chapter Board of Directors for a three-year term. 

Interested in applying for the next Kurt Ophus Scholarship?  Visit the North Star Chapter website to learn more!

Tom Turner Grant

Candidates for Designation (MAI and SRA) are eligible to receive the Tom Turner Grant.  The recipient will be determined by attendance at the most North Star Chapter-sponsored education courses and accrual of the most course hours between the time period of September 1 to August 31 of the following year (the Minnesota licensing year).

In the event that there is a tie, the Scholarship Committee will consider the following criteria:

  • Number of membership years with the North Star Chapter
  • Chapter committee service and/or service on the Board of Directors

At the Turner family's request, the grant may be used by the recipient however the individual sees fit to continue their appraisal career advancement.  It does not have to be applied to Chapter or AI education.  A Chapter check will be awarded to the individual in the amount of $500.

Award Cycle: September 1, 2018 - August 31, 2019

For more information, check out the Chapter website.

Learn at your own pace anytime, anywhere.  Top-notch Appraisal Institute courses and seminars come straight to your desktop with online education!  Learn from any computer anywhere, whenever you have time.  It’s easy, convenient and a great way to get the education you want.  Check out the current course listing now!

Have you discovered the new northstarai.org?

The North Star Chapter recently launched our redesigned website!  The new site has a clean and updated look, improved navigation, and increased functionality.  Our new Chapter directory makes it easy for your fellow appraisers, colleagues, and clients to find you and your business!  We have also improved the news section and legislative updates so you are always in-the-know about news that affects you.  The full site is now also mobile responsive and fully accessible from any device!

Legislative Updates

Opportunity Zones Create Numerous Questions for Valuation Professionals

The Appraisal Institute recommends that its professionals pay close attention to investment trends associated with the Opportunity Zones that were created through last year’s tax reform legislation. The U.S. Department of the Treasury has certified 8,700 Opportunity Zones — a process performed in conjunction with state and local government agencies. 
 
Opportunity Zones are designed to spur economic development by providing tax benefits to investors by allowing them to defer tax on any prior gains invested in a Qualified Opportunity Fund until the date on which the investment in a QOF is sold or exchanged, or until Dec. 31, 2026 — whichever comes first. There is a 10 percent exclusion of the deferred gain for QOF investments held for more than five years; when held for more than seven years, the exclusion is 15 percent and when held for 10 or more years, the investor is eligible for an increase in basis of the QOF investment equal to its fair market value on the date the QOF investment is sold or exchanged.
 
The rules and regulations for this economic development tool are trickling out, including materials from the IRS. As a result, valuation-related questions are materializing as market activity within Opportunity Zones begins. One issue is the use of a sale from outside an Opportunity Zone as a comparable for one inside an Opportunity Zone, and vice versa. Additionally, data lags may necessitate fully informed market conditions adjustments. Appraisers likely also will be asked to segregate building and land values for tax planning purposes.
 
The IRS offers more information on tax issues with Opportunity Zones. 
 
The Treasury Department provides a complete list of Opportunity Zones through its Community Development Financial Institutions Fund site. Many states offer information on local Opportunity Zones through their departments of commerce and economic development.

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