HomeMy WebLinkAbout10-145APRIL 27, 2010 10 -145 RESOLUTION
(CARRIED 7 -0 LOST LAID OVER WITHDRAWN )
PURPOSE: PARTIAL ALLOWANCE OF CLAIM / REFUND OF PROPERTY
TAXES / PARTIAL RESCISSSION OF PROPERTY TAXES
WALGREEN CO. FOR PROPERTY LOCATED AT 950 KOELLER
STREET AND 315 WEST MURDOCK STREET
INITIATED BY: CITY ADMINISTRATION
WHEREAS, the below noted business filed claims for recovery of excessive taxes
for two properties within the City of Oshkosh,
WHEREAS, although the properties were not overvalued to the extent of the claims
submitted, the City believes that both of the properties were overvalued for the current
year,
WHEREAS, the business has paid in installments the taxes based upon the current
assessment for both properties, and
WHEREAS, the property taxes were excessively assessed, in part, per Wisconsin
State Statutes 74.37, and partial allowance of claims, refunds, and partial rescissions of
the taxes due are appropriate as described in this Resolution:
Walgreen Co.
950 S. Koeller Street
Oshkosh, WI 54904
(Property ID #1308480200)
Walgreen Co.
315 W. Murdock Ave.
Oshkosh, WI 54901
(Property ID #1501840000)
Rescission /Refund: $ 23,300.92
Partial Reduction: $1,019,600.00
New assessment: $3,074,000.00
Rescission /Refund: $ 5,039.09
Partial Reduction: $ 220,000.00
New Assessment: $2,700,000.00
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of
Oshkosh that: (1) the two claims identified in this Resolution are partially allowed; (2) the
claimant will receive rescission or refunds of property taxes in the amounts of $23,300.00
and $5,039.00 as identified in this Resolution; and, (3) the property taxes for the two
properties subject to these two claims are partially reduced and new property values set as
identified in this Resolution;
APRIL 27, 2010 10 -145 RESOLUTION
CONT'D
BE IT FURTHER RESOLVED that the proper City Officials are authorized and
directed to seek compensation from the other taxing entities per Wisconsin State Statutes
74.41.
Funds for this purpose are appropriated from:
Account No. 100- 0908 - 6469 -00000 — Tax Refund Account
BE IT FURTHER RESOLVED that the City Clerk is hereby directed to inform the
above noted business by certified mail of the partial allowance of the claim and the fact
that the claimant has ninety (90) days from the date of service to appeal.
CITY HALL
215 Church Avenue
P.O. Box 1130
Oshkosh, Wisconsin
54903 -1130 City of Oshkosh
0
O.fHKOlH
TO: Honorable Mayor and Members of the Common Council
FROM: Lynn A. Lorenson, City Attorney
DATE: April 22, 2010
RE: Partial Allowance of Claim
Property Taxes — Walgreen
315 West Murdock Street
BACKGROUND
Refund of Property Taxes / Partial Rescission of
Co. for Property Located at 950 Koeller Street and
Walgreen Co. has filed claims for excessive assessments for properties which it leases located
at 950 South Koeller Street and 315 Murdock Street. Walgreens seeks a refund of taxes paid in
relation to each property for last year. The City and Walgreen Co. have been involved in
disputes over assessments for the past several years. In May of 2009, the City participated in
mediation with Walgreens and reached a settlement with regard to the property located at 950
South Koeller Street for the 2007 -2008 tax assessments. This settlement was presented to and
approved by the Council. During the course of this prior mediation, the parties also discussed
valuation of the property located at 315 Murdock for 2009 and 2010. However, Walgreens
wanted to further review the matters and limited the settlement to the 2007 and 2008
assessments.
An attorney appeared for Walgreens at the 2009 Board of Review, putting on the minimum case
necessary to meet the statutory requirements for appearance before the Board prior to filing a
claim with the City. The Board sustained the assessment placed on the property by the
Assessor's office prior to the settlement of the previous years' cases.
ANALYSIS
The Koeller Street Walgreens currently has an assessed value of $4,093,600.00. This
assessment took into consideration all relevant factors, but particularly relied upon the contract
rents for leasing the property which Walgreens alleges includes items in addition to the value of
the property. The Council had previously approved the settlement for the 2007 -2008 tax years
(1J
Walgreens Memo: 4/22/10: Pg. 2
for the Koeller Street property based upon the Assessor's review of the property and an
evaluation of the recent Supreme Court cases related to Walgreen's stores in particular. The
resolution before the Council would establish the 2009 assessed value of the Koeller Street
property at $3,074,000 which is the assessed value agreed upon for 2007 and 2008.
Statewide, there continues to be discussion regarding the proper valuation method for this type
of income - producing property; however, based upon the previous settlement and a review of the
market rents for this area, city staff believes that the assessed value of $3,074,000, a reduction
of $1,019,600 in assessed values and a partial rescission or refund of taxes in the amount of
$23,300.92, is reasonable.
During the settlement discussions related to the Murdock Walgreen's, the parties reviewed the
location, comparable market rents and other factors influencing the valuation. Based upon that
review and the prior recommendations of the mediator related to this property, it is our
recommendation that the assessed value for the Murdock properties be reduced to $2,700,000.
This change in the assessed value is a reduction of $220,500 and would result in a partial
rescission or refund in the amount of $5,039.09.
FISCAL IMPACT
The impact of the partial allowance resulting in a rescission of $28,340.01 in taxes is short term
only, since, in the year that the taxes are rescinded, the City notifies the Department of Revenue
(DOR) of the rescissions, and the DOR adjusts the equalized value for the following year to
account for the difference. These adjustments are built into the tax rate for all taxing authorities
for the following year.
RECOMMENDATION
Based upon all of the facts of this case and consideration of the law governing the assessment
process, the Staff recommends that the Council pass the proposed resolution partially allowing
the claims for excessive assessment for the Walgreen's properties located at 950 Koeller Street
and 315 Murdock Street within the City of Oshkosh.
ly Submitted, Approved:
,P.t. -fir
A. Lorenson 'J Mark A. Rohloff
attorney City Manager