HILLSBORO, N.D. -- Traill County Commissioners Tuesday rejected a request from American Crystal Sugar Co. to lower the value of its processing plant here.

Had the county sided with American Crystal, the value of the Hillsboro plant would have dropped about $20 million for 2001, 2002 and 2003, reducing its tax bill for those years by more than $1 million.

The Moorhead-based sugar beet processor is contesting the government-set values of all its property throughout the region, saying a sagging sugar industry has made its facilities less valuable.

Traill County commissioners heard about 10 hours of testimony earlier this month from American Crystal and county officials. The board Tuesday unanimously denied the tax abatement request.

"There is absolutely no evidence I can find, and believe me, I looked for it, to support their claims," said Commissioner Arne Osland. "This is the easiest decision I've made in years it was so obvious."

Wick Corwin, a Fargo attorney representing American Crystal, said the company will appeal the county's decision in district court. "It rejects what we deem to be compelling evidence."

Commissioner Ron Peterson, also an American Crystal shareholder, said the company's efforts to lower its tax bill trouble him, saying its board of directors has been "eerily silent" on the issue.

"It's got to be the ultimate in boorishness and gall I have seen," Peterson said.

American Crystal filed the tax abatement in October 2003, asking the county to reduce the value of its plant from:

• $25.9 million to $12.4 million in 2001.
• $25 million to $10.9 million in 2002.
• $25.2 million to $17.2 million in 2003.

American Crystal has since lowered those requests, asking for the plant's value for all years to be set at $5.7 million.

Corwin argued comparable sales of other plants and the increasingly uncertain nature of the sugar processing industry justify the lower values.

County Tax Director Jodi Buzick said the county cannot adjust the value based on the sagging sugar market because American Crystal did not provide information about its profits.

Pembina County commissioners on Tuesday will hear a similar request from American Crystal to lower the value of its plant in Drayton by about $10 million.

In Polk and Clay counties, American Crystal went directly to state tax court to seek a two-thirds reduction in the value of its properties for 2002 and 2003.

American Crystal is appealing a judge's decision to dismiss the challenge for the 2002 value of a plant in East Grand Forks. The rest of the case, which includes a plant in Crookston and four rural piling stations, is on hold until the appeal is settled, he said.

Officials expect a ruling soon on Clay County's Oct. 27 motion to dismiss the challenges.

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