Commercial Property Owners Write SAMA Requesting Secondary Audit
By Robert Thomas
Council's unanimous decision to request the Saskatchewan Assessment Management Agency (SAMA) conduct a preliminary investigation into commercial property assessments as part of the process towards a Secondary Audit may have sounded good to attendees but one of the presenters is now seemingly not so sure.
In a strongly worded January 16, 2023 letter to Betty Rodgers CEO of SAMA local commercial property owner Kristie Van Slyck requests a Secondary Audit take place.
Her letter states the process laid out by SAMA to trigger a secondary audit is unnecessary and not part of provincial legislation.
Additionally Van Slyck directly questions the competence of SAMA's assessment department.
SAMA is contracted to provide property assessment services for the City of Moose Jaw.
A copy of the letter was sent to MJ Independent. The full text of the letter is below.
The letter was also sent to other media, Mayor Clive Tolley, the City Manager, the Minister Responsible Don McMorris and other media.
Kristie Van Slyck addresses Council - MJ Independent file photo
The letter states a group of commercial property owners are requesting the Secondary Audit take place as a means to ensure quality assurance in the 2021 commercial assessment system.
The issue of the 2021 reassessment and its impact on commercial properties has been brewing both publicly and behind closed doors for close to a year.
A group, Property Assessment Watchdogs, was formed by a group of concerned commercial property owners to battle the issue.
They have held two public rallies.
Property Assessment Watchdogs recently made a presentation to Council. They are not referenced in the letter as supporters.
Van Slyck writes the very fact legislation was passed to allow secondary audits because the Legislature “had concerns about quality assurance in the province” and to reassure ratepayers that secondary audits would take place.
Van Slyck references Alberta, where they have the same audit system, she states that province defines a Secondary Audit as “a detailed audit.”
She points out SAMA's CEO Rodgers a Secondary Audit does not have to be triggered as SAMA has presented in its materials.
In response to questions from MJ Independent the assessment agency released a Moose Jaw Media Fact Sheet.
Van Slyck in her letter points out the process stated by SAMA does not have to occur.
She goes on to state that the reasons laid out by SAMA are not part of the legislation governing assessments.
Van Slyck goes further and states a group of commercial property owners - the commercial sector - was directly requesting the detailed secondary audit take place.
The letter goes on to state the reasons why the commercial property owners were requesting the audit take place.
She points out SAMA's assessors produced the “lowest capitalization rates in the province for our City, outpacing both Regina and Saskatoon.”
Capitalization Rates or Cap Rates are used to determine a properties value and in turn its assessment.
She states the cap rates assigned be SAMA's assessment “have no basis in reality and needs to be audited.”
Van Slyck charges that “SAMA's inconsistent models that come out year after year raises questions about the competence of the SAMA assessment department.”
The letter concludes SAMA has the authority but “the lack of follow through is unsettling.”
