HomeMy WebLinkAbout03. 19-589 NOVEMBER 26, 2019 19-589 RESOLUTION
(CARRIED LOST LAID OVER WITHDRAWN )
PURPOSE: APPROVE SETTLEMENT WITH WALMART FOR PROPERTY TAX
ASSESSMENTS FOR TAX YEARS 2017, 2018 AND 2019 FOR
PROPERTY LOCATED AT 351 SOUTH WASHBURN STREET
INITIATED BY: LEGAL DEPARTMENT
WHEREAS, Walmart Real Estate Business Trust ("Walmart") filed suit
challenging the property tax assessment for its property located at 351 South Washburn
Street in the City of Oshkosh; and
WHEREAS, the parties have reached a tentative settlement of this matter
contingent upon the approval of the Common Council compromising the claims for tax
years 2017, 2018 and 2019.
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of
Oshkosh that the proper City officials are hereby authorized to enter into an appropriate
settlement agreement with Walmart pertaining to property located at 351 South
Washburn Street in the City of Oshkosh in resolution of current litigation between the
parties, 17-CV-746, 18-CV-542 and 19-CV-572 in Winnebago County Circuit Court,
according to the following terms and conditions:
➢ City staff will adjust the 2017 assessment on the parcel to reflect a total assessed
value amount of$15,620,900.00.
➢ City staff will adjust the 2018 assessment on the parcel to reflect a total assessed
value amount of$14,579,500.00.
➢ City staff will adjust the 2019 assessment on the parcel to reflect a total assessed
value amount of$13,017,400.00.
➢ The City will refund taxes as shown on the attachment to this resolution.
NOVEMBER 26, 2019 19-589 RESOLUTION
CONT'D
➢ Walmart will dismiss the lawsuits against the City without costs or interest and with
prejudice.
BE IT FURTHER RESOLVED that the proper City Officials are hereby authorized
and directed to execute and deliver an agreement substantially in compliance with the
terms listed above, any changes in the execution copy being deemed approved by their
respective signatures, and said City officials are authorized and directed to take those
steps necessary to implement the terms and conditions of the Agreement. Money for this
purpose is hereby appropriated from:
Acct. No. 0100-0908-6469-00000 Uncollectible Accounts
city
Oshkosh
TO: Mayor and Members of the Common Council
FROM: Lynn A. Lorenson, City Attorney
DATE: August 10, 2018
RE: Approve Settlement with Walmart for Property Tax Assessments for Tax Years
2017, 2018 and 2019 for Property Located at 351 South Washburn Street
BACKGROUND
Walmart Real Estate Business Trust filed suits claiming excessive assessment for property
occupied by a Walmart store located at 351 South Washburn Street in the City of Oshkosh
seeking a refund of taxes paid in 2017 and 2018 and a reduction in assessment for 2019. The City
was represented in this action by outside counsel,Adam Marshall, appointed through the City's
insurance carrier, and participated in mediation with Attorney Stan Riffle who has extensive
experience with tax litigation and mediation throughout the State of Wisconsin.
ANALYSIS
The Total Assessed Value of the Walmart property for all three years was set at $16,592,000 by
the City Assessor. Walmart challenged the assessment in all three years with their asserted
values ranging from $8,500,000 to $10,400,000. The proposed settlement sets the value at
$15,620,900 for 2017, $14,579,500 for 2018 and $13,017,400 for 2019.
Based upon a review of the property; the appraisal done by Walmart; the review by an expert
retained by the City of the assessment and Walmart appraisal; recent settlements and other
relevant information; the City Assessor, City Attorney and outside counsel believe that a
reduction in value is reasonable and equitable in this case. Working with the mediator, the
attorneys for the parties had extensive conversations and negotiations on value and have agreed
to recommend a three year settlement to their respective clients based upon a per square foot
assessment which is commonly used in the market for valuation of these types of parcels.
City Hall,215 Church Avenue P.O.Box 1 130 Oshkosh,WI 54903-1 130 920.236.5000 http//www ci oshkosh wi us
Oshkosh
The proposed settlement would step down the assessed value for the Walmart store as follows:
Year Assessed Value-Rounded to $/sq ft assessment
nearest$100 (208,278 sq ft)
Current assessment $16,592,000 $79.66
Settlement 2017 $15,620,900 $75.00
Settlement 2018 $14,579,500 $70.00
Settlement 2019 $13,017,400 $62.50
Stepping the assessment down over three years minimizes the impact on taxing jurisdictions
which will refund through the chargeback process the amounts previously paid while reaching
an assessed value more in line with regional values for comparable properties.
The City Assessor reviewed the property and recognizing that property valuation is a range of
value, believes that the proposed settlement is fair and equitable given the nature of the
property, the condition and structure of the buildings and other improvements and the
assessment of other similar properties both in Oshkosh and elsewhere within the State of
Wisconsin. Walmart has approved the settlement.
FISCAL IMPACT
A copy of the Finance Department's calculations is attached to this memorandum. Each of the
taxing jurisdictions will be charged back their share of the refunded amounts. Refunds for 2017
and 2018 will be made within 30 days of the date of dismissal of the court actions. Because the
2019 tax roll has already been set but not yet billed, the 2019 refund will be made within 45 days
of full payment of the 2019 taxes.
RECOMMENDATION
Based upon all of the facts of this case, the Staff recommends that the Council pass the proposed
resolution and authorize staff to enter into an appropriate settlement agreement with Walmart
for the 2017-2019 tax years.
Re ectfully Sub itted, Approved:
A. Lorenson ark A. Rohloff
City Attorney City Manager
City Hall,215 Church Avenue P 0 Box 1 130 Oshkosh,WI 54903-1130 920 236 5000 http//www.ci.oshkosh.wi.us
WALMART
Property 351 S Washburn St
Pa rce 1 06-1603-0000
Year 2017
Assessed
Rate Original Settlement Difference
Total FMV 16,.908,.100 15,.918,.500
Assessment Ratio 0.98130772 0.98130772
Total Assessed Value 16,.592,.000 15,.620,.900
State -
County 5.369 89,.082.45 83,.868.61 5,.213.84
City 10.558 175,.178.34 164,.925.46 10,.252.88
School District 9.774 162.1170.21 152,.678.68
School Credit (1.732) (28,.737.34) (27,.055.40)
Net School District 133,.432.87 125,.623.28 7,.809.59
Tech College 1.105 18,334.16 17.1261.09 1,.073.07
Total 25.074 416,.027.82 391,.678.44 24,349.38
J:\Temp\Council Agencla\19-589 Attachment Walmart Tax Assessment
WALMART
Property 351 S Washburn St
Pa rce 1 06-1603-0000
Year 2018
Assessed
Rate Original Settlement Difference
Total FMV 17.1483,300 15,.362,.700
Assessment Ratio 0.949022293 0.949022293
Total Assessed Value 16,.592,.000 14,579,500
State - -
County 5.352 88,.800.38 78,.029.48 10,.770.90
City 10.582 175,576.54 154.1280.27 21.1296.27
School District 9.424 156,363.01 137,397.21
School Credit (1.725) (28,.621.20) (25,.149.64)
Net School District 127.1741.81 112.1247.57 15,.494.24
Tech College 1.114 18,.483.49 16,.241.56 2.1241.93
Total 24.747 410,.602.22 360,.798.88 49,.803.34
J:\Temp\Council Agencla\19-589 Attachment Walmart Tax Assessment
WALMART
Property 351 S Washburn St
Pa rce 1 06-1603-0000
Year 2019
Assessed
Rate Original Settlement Difference
Total FMV 17,.917,.100 14,.057,.000
Assessment Ratio 0.926042213 0.926042213
Total Assessed Value 16,.592,.000 13,.017,.400
State -
County 5.284 87,.677.17 68,.787.90 18,.889.27
City 10.903 180,.897.33 141,.924.60 38,.972.73
School District 9.959 165,.247.63 129,.646.48
School Credit (1.719) (28,515.61) (22,372.17)
Net School District 136,.732.02 107.1274.31 29,.457.71
Tech College 1.105 18,333.58 14,383.77 3,.949.81
Total 25.533 423,.640.10 332,370.58 91.1269.52
Total Refund 141.,072.86
J:\Temp\Council Agencla\19-589 Attachment Walmart Tax Assessment