HomeMy WebLinkAbout25. 18-428 AUGUST 15, 2018 18-428 RESOLUTION
(CARRIED 4-0 LOST LAID OVER WITHDRAWN )
PURPOSE: APPROVE SETTLEMENT AGREEMENT WITH LOWES, INC. FOR
PROPERTY TAX ASSESSMENTS FOR TAX YEARS 2016-2018 FOR
PROPERTY LOCATED AT 1075 NORTH WASHBURN STREET
INITIATED BY: LEGAL DEPARTMENT
WHEREAS, Lowes, Inc. filed suit challenging the property tax assessment for its
property located at 1075 North 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 2016 through 2018.
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 Lowes, Inc. pertaining to property located at 1075 North
Washburn Street in the City of Oshkosh in resolution of current litigation between the
parties, 16-CV-695, 17-CV-719 and 18-CV-518 in Winnebago County Circuit Court,
according to the following terms and conditions:
• City staff will adjust the 2016 assessment on the parcel to reflect a total assessed
value amount of$6,734,200.00.
• City staff will adjust the 2017 and 2018 assessment on the parcel to reflect a total
assessed value amount of$6,313,300.00.
• The City will refund taxes for 2016 and 2017 as shown on the attachment to this
resolution.
• The City will adjust the assessed value for 2018 based upon the settlement
agreement.
AUGUST 15, 2018 18-428 RESOLUTION
CONTD
• Lowes,Inc. 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.
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.
TO: Mayor and Members of the Common Council
FROM: Lynn A. Lorenson, City Attorney
DATE: August 10, 2018
RE: Approve Settlement Agreement with Lowes, Inc. for Property Tax Assessments
for Tax Years 2016-2018 for Property Located at 1075 North Washburn Street
BACKGROUND
Lowe's, Inc. has filed suit claiming excessive assessment for its property located at 1075 North
Washburn Street in the City of Oshkosh seeking a refund of taxes paid in 2016 and 2017 and a
reduced assessed value for 2018. The Lowes store is located on an approximately 13.5 acre site
on Washburn Street on the west side of Oshkosh near the interchange of Interstate 41 and
Highway 21. The site contains the Lowe's store building and other site improvements including
paved parking and lighting.
ANALYSIS
The 2016 Total Assessed Value of the property established by the Assessor was $9,065,300 and
$9,049,600 for 2017 and 2018. Lowe's hired an appraiser who has valued the property at
$4,750,000. As currently permitted by existing case law, Lowe's appraiser used all dark stores
for comparables. The attorneys for the parties have had extensive conversations and
negotiations on value and have agreed to recommend a three year settlement to their respective
clients in the amount of $48 per square foot for 2016 and $45 per square foot for 2017-18. The
resulting values are $6,734,200 for 2016 and $6,313,300 for 2017 and 2018. Lowe's has approved
the settlement.
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
building, its condition and the condition and structure of the outbuildings and other
improvements and the assessment of other similar properties both in Oshkosh and elsewhere
within the State of Wisconsin.
City Hall, 215 Church Avenue P.O. Box 1130 Oshkosh, WI 54903-1130 920.236.5000 http://www.ci.oshkosh.wi.us
FISCAL IMPACT
The reduced value will be applied to the 2018 tax bill. The appropriate amounts will be
calculated for chargebacks to each of the taxing jurisdictions. A copy of the Finance
Department's calculations is attached to this memorandum. Because the property tax roll has
not yet been set for the 2018 tax year, the assessor will mare an appropriate adjustment for 2018
as required by the agreement and the taxes will be calculated based on the adjusted amount
when tax bills are sent in December.
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 Lowes,
Inc. for the 2016-2018 tax years.
Rae Submitted,
Lynn A. Lorenson
City Attorney
Approved:
Mark A. Rohloff
City Manager
City Hall, 215 Church Avenue P.O. Box 1130 Oshkosh, WI 54903-1130 920.236.5000 http://www.ci.oshkosh.wi.us
Property
Parcel
Year
Total FMV
Assessment Ratio
Total Assessed Value
State
County
City
School District
School Credit
Net School District
Tech College
Algoma Sanitary District
Total
Year
Total FMV
Assessment Ratio
Total Assessed Value
State
County
City
School District
School Credit
Net School District
Tech College
Algoma Sanitary District
Total
Total Refund
Assessed
Rate
0.170
5.415
10.344
10.131
(1.563)
Lowe Home Centers LLC
1000 Lowes Blvd
16-2150-0000
2016
Original I Settlement I Difference
9,087,000
6,750,300
0.99761393
0.99761393
9,065,300
6,734,200
1,541.10
1,144.81
49,088.60
36,465.69
93,771.46
69,658.56
91,840.55
68,224.18
(14,169.06)
(10,525.55)
396.29
12,622.91
24,112.90
77,671.49
57,698.63
19,972.86
1.116 10,116.87
7,515.37
2,601.50
0.269 2,438.57
1,811.50
627.07
25.882 234,628.09
174,294.56
60,333.53
Assessed
Rate
5.369
10.558
9.774
(1.732)
2017
Original I Settlement I Difference
9,222,000 6,433,600
0.98130772 0.98130772
9,049,600 6,313,300
48,587.30
33,896.11 14,691.19
95,545.68
66,655.82 28,889.86
88,450.79
61,706.19
(15,673.91)
(10,934.64)
72,776.88
50,771.55
22,005.33
1.105 9,999.81
6,976.20
3,023.61
0.268 2,425.29
1,691.96
733.33
25.342 229,334.96
159,991.64
69,343.32
$
129,676.85