HomeMy WebLinkAbout26. 15-459OCTOBER 13, 2015 15-459 RESOLUTION
(CARRIED___6-0___LOST________LAID OVER________WITHDRAWN________)
PURPOSE: APPROVE SETTLEMENT AGREEMENT WITH CONVENIENCE
STORE INVESTMENTS FOR EXCESSIVE ASSESSMENTS FOR
TAX YEARS 2013 AND 2014 FOR PROPERTIES LOCATED AT 215
TH
WEST 20 AVENUE, 2400 SOUTH WASHBURN STREET, 2115
TH
JACKSON STREET AND 1725 WEST 9 AVENUE (KWIK TRIP
PROPERTIES)
INITIATED BY: LEGAL DEPARTMENT
WHEREAS, Convenience Store Investments (owner of the Kwik Trip Properties)
filed claims for excessive assessments for tax year 2013 for its properties located at 215
th
West 20 Avenue, 2400 South Washburn Street, and 2115 Jackson Street and for tax year
th
2014 for its properties located at 215 West 20 Avenue, 2400 South Washburn Street,
th
2115 Jackson Street and 1725 West 9 Avenue in the City of Oshkosh; and
WHEREAS, the City Assessor reviewed and adjusted the assessments for these
properties for 2015;
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 2013 and 2014.
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 Convenience Store Investments pertaining to property located
th
at 215 West 20 Avenue, 2400 South Washburn Street, 2115 Jackson Street and 1725
th
West 9 Avenue in the City of Oshkosh in resolution of current litigation between the
parties, 14-CV-848 in Winnebago County Circuit Court, according to the following terms
and conditions:
The City will refund taxes in the amount of $42,085. City staff will adjust the 2013
and 2014 assessments on the parcels to reflect this total amount.
Convenience Store Investments will dismiss the lawsuit against the City and the
parties assert that they will release any claims against the other party and will not
file any further actions against the other party in relation to the subject matter of this
litigation.
OCTOBER 13, 2015 15-459 RESOLUTION
CONTD
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.
CITY HALL
215 Church Avenue
P O. Box 1130
Oshkosh, Wisconsin
54902-1130
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TO:
FROM:
DATE:
City of Oshkosh
Honorable Mayor and Members of the Common Council
Lynn A. Lorenson, City Attorney
October 8, 2015
RE: Approve Settlement Agreement with Convenience Store Investments for
Excessive Assessments for Tax Years 2013 and 2014 for Properties Located
at 215 West 20th Avenue, 2400 South Washburn Street, 2115 Jackson Street
and 1725 West 9t" Avenue (Kwik Trip properties)
BACKGROUND
Convenience Store Investments has filed suit for excessive assessments for properties
located at 215 West 20t" Avenue, 2400 South Washburn Street, 2115 Jackson Street
and 1725 West 9th Avenue (Kwik Trip properties) seeking a refund of taxes paid in 2013
and 2014 in relation to these properties. For 2015 the Assessor reviewed each of these
properties and adjusted their values on the tax roll based upon a review of the ratings
related to the construction materials and techniques used in building the site
improvements for these properties.
The properties subject to this litigation with the 2013-2014 and 2015 assessed values
are:
Address
For 2013 —
215 West 20th Avenue
2400 S. Washburn Street
2115 Jackson Street
For 2014 —
2013-2014 assessed value
$1,809,900
$3,488,700
$2,417,800
2015 assessed value
$1, 545,400
$2,791,300
$1,882,500
215 West 20t" Avenue $1,809,900 $1,545,400
2400 S. Washburn Street $3,488,700 $2,791,300
2115 Jackson Street $2,417,800 $1,882,500
1725 W. 9th Ave $1,901,500 $1,509,000
The 2015 adjusted assessments reflect an adjustment from the 2013 and 2014
assessment amounts but are greater than the assessed values that had been requested
by Convenience Store Investments in the court case. If the 2013 and 2014 assessed
values were reduced to the 2015 assessed value for each of the properties, the
estimated tax refund would be equal to $84,170.64. The proposed settlement is for
$42,085.00, so reflects a compromise from the 2015 assessments as well as from the
original requested values.
ANALYSIS
In consideration of the adjusted assessments for these specific parcels for 2015, staff is
recommending settlement of this matter at a compromised amount for the 2013 and
2014 tax years. The assessed values for 2015 reflect an adjustment from the
previously established amounts for 2013 and 2014 and the settlement amount reflects a
compromise from both the values requested by Convenience Store Investments in their
complaint before the circuit court and the 2015 assessed values. In speaking with
Convenience Store Investments representative, Convenience Store Investments has
agreed that they will not file suit or contest the City's 2015 assessment.
FISCAL IMPACT
As noted above, Convenience Store Investments requested greater reductions in the
assessed values than those established by the Assessor for the 2015 tax year. Using
the 2015 assessed values and estimated tax rates, the refund for 2013 would have
been $37,232.37 and the refund for 2014 would have been $46,938.27 for a total refund
of $84,170.64. The proposed settlement amount is $42,085.00. If the settlement is
approved, staff will adjust the 2013 and 2014 assessments roughly proportionately and
as necessary to achieve the agreed upon reduction. The appropriate amounts will then
be calculated for chargebacks to each of the taxing jurisdictions.
RECOMMENDATION
Based upon all of the facts of this case and consideration of the adjusted assessments
for 2015, the Staff recommends that the Council pass the proposed resolution and
authorize staff to enter into an appropriate settlement agreement for the four parcels
owned by Convenience Store Investments for the 2013 and 2014 tax years.
Re�pectfully Sub 'tted,
Lynn . Lorenson
City Attorney
Approved:
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Mark A. Rohloff
City Manager