The URL can be used to link to this page

Home My WebLink About06. 15-48 FEBRUARY 10, 2015 15-48 RESOLUTION (CARRIED __7-0_____ LOST _______ LAID OVER _______ WITHDRAWN _______) PURPOSE: PARTIAL ALLOWANCE OF CLAIM / REFUND OF PROPERTY TAXES / PARTIAL RESCISSION OF PROPERTY TAXES WALGREEN CO. FOR PROPERTY LOCATED AT 950 SOUTH KOELLER STREET & 315 WEST MURDOCK AVENUE INITIATED BY: CITY ADMINISTRATION WHEREAS, the below noted business filed claims for recovery of excessive taxes for two properties within the City of Oshkosh; and WHEREAS, although the properties were not overvalued to the extent of the claims submitted, based upon previous litigation the City believes that both of the properties were overvalued for the current year and staff recommends a partial rescission and refund of property tax carrying forward the values as determined by the circuit court in the previous litigation; 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) Rescission/Refund: $ 32,007.53 Partial Reduction: $1,288,600.00 New Assessment: $2,111,800.00 Walgreen Co. 315 W. Murdock Avenue Oshkosh, WI 54902 (Property ID #1501840000) Rescission/Refund: $ 32,554.39 Partial Reduction: $1,310,616.00 New Assessment: $2,038,284.00 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 $32,007.53 and $32,554.39 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 FEBRUARY 10, 2015 15-48 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: Acct. 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 oshk°S",W�S�°ns�n City of Oshkosh 54903-1 130 � � QIHKQIH TO: Honorable Mayor and Members of the Common Council FROM: Lynn A. Lorenson, City Attorney DATE: February 5, 2015 RE: Partial Allowance of Claim / Refund of Property Taxes / Partial Rescission of Property Taxes — Walgreen Co. for Property Located at 950 Koeller Street and 315 West Murdock Avenue BACKGROUND Walgreen Co. has filed claims for excessive assessments for properties which it leases located at 950 South Koeller Street and 315 Murdock Avenue. Walgreens seeks a refund of taxes paid in relation to each property for last year. For 2014, the Koeller Street Walgreens had an assessed value of $3,400,400. The Murdock Avenue property had an assessed value of$3,348,900. The City and Walgreen Co. have been involved in disputes over assessments for the past several years. In December 2014, the Court of Appeals issued its decision in the appeal of the 2009 and 2010 Walgreens cases upholding the decision of the Circuit Court setting the fair market values of the Koeller Street Walgreens at $2,200,000 for 2009 and $2,097,000 for 2010 and the Murdock Avenue Walgreens at $2,131,000 for 2009 and $2,024,000 for 2010. The City has not petitioned for review of the Court of Appeals decision and has issued a refund check to Walgreens based upon the Circuit CourYs judgment for the two properties for 2009 and 2010. In the litigation covering the years 2011-2013, the City consented to judgment carrying forward the 2010 judgment amount and has issued a refund check to Walgreens for those years. ANALYSIS In consideration of the prior litigation regarding these specific parcels, staff is recommending that the Council partially allow the claim brought by Walgreens and carry forward the 2010 property values as determined by the Circuit Court. It should be noted that the Circuit Court determined the fair market values of the properties and so an adjustment was required to determine the assessed value on the attached resolution. In speaking with the attorney for Walgreens, Walgreens has agreed that they will not file suit or contest the City's carrying forward of the 2010 amounts as determined by the Circuit Court decision for 2014 and 2015. Since the 2014 assessments have already been established and tax bills sent out, this requires the Council to partially allow the claim for excessive assessment +CJ filed by Walgreens and rescind a portion of the property tax assessed for these parcels. For 2015, the Assessor's office will set the property values at the 2010 values as determined by the Circuit Court. FISCAL IMPACT The partial allowance results in a rescission of $32,007.53 for the Koeller Street property and $32,554.39 for the Murdock Avenue property for a total of$64,561.92. The City's portion of the rescinded amount would be $12,321.59 for the Koeller Street property and $12,532.11 for the Murdock Avenue property for a total of $24,853.70. Attached to this memo is a spreadsheet showing the financial impact for each of the taxing jurisdictions. The impact of the rescission 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 prior court decisions and 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. Respectfully Submitted, Approved: c+---/0� , �� Lyn A. Lore Mark A. Rohloff City Attorney City Manager u C N C�' n n n ON1 4J 01 O M i� C r-1 � 'md' 'NV O�0 Q�1 O�i V�1 Q ��-1 N N N l�0 N V � � I 01 O N d� Il1 Q1 ' v m r+ oo �o m � '-1 .-1 N tC N ef � N N t�11 O d�' t�l1 � ^ a�N-1 .-�-1 ~ M � i I d j � O � �f 1� O f� 1� O I� N M a O O n 00 � d� O f� tn N 1� O1 v Q Q 111 N � 00 O tD If1 �-i d 00 ` p O � O 00 V O 61 R M a-f I� N Q N ^ M (Y1 M ti 00 l0 N fV l0 ; � t} �.�y 7 O O O rj Qj Vj N I� N O i 7 � N u �.j � ry ci e-1 �-1 `-' r1 Ifl � 4 3 �, � � � M �� O � O Q1 n � N .m-f rl M M � u1 4 00 lN0 ^ N O M � M � W �� C N f� d t!1 Vl O �O n'1 N f� �-1 � M � f�'1 s'�'1 M M � N M 00 0 � n �-�t � QM1 O VtY11 v e-� a' N o0 M O C N ri M 00 �t O � ^ � O � M � N �j O O � O 00 N O t0 �A O I� O O 00 G/ �ry I� O.'H-i M I� ��-1 1!� � OmO� M �f YpQp •"� 7 � � ~ rl O O N 1� N N a � � N � N � (V N `-' a-1 V1 N Q O M � � Q1 N O ^ O c0 ef c0 t�A 1� O�t 00 V1 l0 O O n t�D ti o O�i .-�i Q�i cND � M O � v1 oO t1� H M I� n � � fi'1 � M � M M � N m 00 � � pl 00 N 1� M l0 � c�l V1 �fl h N '�-f W G� N O ti') Ol O] v rl N . N � Q W a � � Y � � z v � � " Q m > y a� � � o w � � y ° u t o � u- vi Q �' V a � m ° � «° � � .� .c° � u `w° a` a } F�- Q I-� s i V V v`� vf Z F�- F�-