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Kennedy Mall, Inc. 2023 Property Tax Appeal Stipulation of Settlement Approval - Parcel No. 1028276901City of Dubuque City Council Meeting ITEM TITLE SUMMARY: SUGGESTED DISPOSITION: ATTACHMENTS: Description Copyrighted December 18, 2023 Consent Items # 06. Kennedy Mall, Inc. 2023 Property Tax Appeal Stipulation of Settlement Approval - Parcel No. 1028276901 Senior Counsel recommending approval of the Stipulation of Settlement for a 2023 property tax appeal filed by Kennedy Mall, I nc. for their property located at Parcel No. 1028276901 Suggested Disposition: Receive and File; Approve Agenda Letter Notice of Voluntary Settlement Stipulation of Settlement Type Supporting Documentation Supporting Documentation Supporting Documentation Barry A. Lindahl, Esq. Senior Counsel Suite 330, harbor View Place 300 Main Street Dubuque, Iowa 52001-6944 (563) 583-41 13 office (563)583-1040 fax balesa a cityofdubuque.org Office Hours: 8:00 AM — 5:00 PM, T-W-Th 8:00 AM — 12:00 PM, F THE CITY OF D E Masterpiece on the Mississippi AGENDA LETTER Dubuque MI-mrMc" 2007.2012 2013.2017 November 28, 2023 Mayor and Members of the City Council President of the Board of Directors of the City of Dubuque Northeast Iowa Community College City Hall P.O. Box 400 50 West 13th Street Calmar, IA 52132 Dubuque, IA 52001 Chairperson of the Dubuque County Board of Supervisors Dubuque County Courthouse 720 Central Avenue Dubuque, lA 52001 Chairperson of the School Board Dubuque Community School District Central Administration Offices 2300 Chaney Road Dubuque, IA 52001 Chairperson of the Conference Board of the City of Dubuque City Hall 50 West 13th Street Dubuque, IA 52001 Chairperson of the Board of Trustees Dubuque County Hospital Sunnycrest Manor 2375 Roosevelt Street Dubuque, IA 52001 Chairperson of the Council of the Dubuque County Agricultural Extension Service 14858 West Ridge Lane, Suite 2 Dubuque, IA 52003 RE: Kennedy Mall, Inc. vs. City of Dubuque Board of Review 2023 Property Tax Appeal — Case No. 2023-104-00231 C Enclosed is a copy of the Stipulation of Settlement regarding a tax assessment appeal filed by Kennedy Mail, Inc. with the Property Assessment Appeal Board. Iowa Code Sec. 441.44 requires that the Stipulation of Settlement be served upon each of you. There is one property that is the subject of this appeal. The appeal is for the January 1, 2023assessed value. The Kennedy Mall Property This parcel is for the improvements only. The land was assessed as a separate parcel at the time of appeal. This property contains a regional mall, movie theater and automotive repair shop all constructed in 1969. In 2003 a retail store occupied by Best Buy was built on the property and in 2011 the restaurant built for Texas Roadhouse was constructed. This property contains 703,147 square feet of building area. 2023 Appeal Kennedy Mall filed a protest with the Dubuque City Board of Review in April 2023 protesting the January 1, 2023 value of $30,443,200. The prior years assessed value was $28,240,000. The protest claimed the assessed value should be $25,000,000. The Board of Review reduced the value from $30,443,200 to $28,240,000. Kennedy Mall filed an appeal to the Iowa Property Assessment Appeal Board for the 2023 valuation, requesting a reduction to $25,000,000. Proposed Settlement Kennedy Mall submitted an appraisal for the property which primarily used the income approach valuation methodology. Recent sales of malls in Cedar Rapids and Sioux City, which showed declines in value, were also considered by the City Assessor. Kenndy Mall has had a significant loss of revenue and tenants in the past few years. After reviewing the appraisal and mall sales, the loss of revenue and vacancy rate, the parties have reached a proposed settlement agreement. The tentative settlement is for an assessed value for January 1, 2023 of $25,512,400. Pursuant to the Stipulation of Settlement the appeal will be dismissed and the assessed value will be adjusted to $25,512,400 for the January 1, 2023 year. The value for 2023 will be apportioned as follows: Land $0 Building $25,512,400 Total $25,512,400 The total tax loss to all taxing bodies is estimated to be $77,455. The proposed settlement will be presented to the Property Assessment Appeal Board after fourteen (14) days from the date indicated on the attached Notice of Voluntary Settlement. If there are any objections to the settlement they should be made known to the Property Assessment Appeal Board prior to that time. If you have any questions about the proposed settlement, please contact City Assessor Troy Patzner at (563) 589-7800. 2 Very sincerely, n Ba ry A. t_indahl, Esq. S &or Counsel Enclosure Attachment cc: Michael C. Van Milligen, City Manager Adrienne N. Breitfelder, City Clerk Troy Patzner, City Assessor 3 IOWA PROPERTY ASSESSMENT APPEAL BOARD PAAB Docket No. 2023-104-00231 C Parcel No. 1028276901 KENNEDY MALL, INC. Appellant, vs. CITY OF DUBUQUE BOARD OF REVIEW, Appellee. NOTICE OF VOLUNTARY SETTLEMENT TO: City of Dubuque, Iowa County of Dubuque, Iowa Dubuque Community School District Northeast Iowa Community College Dubuque County Hospital Dubuque County Agricultural Extension Service Conference Board of the City of Dubuque YOU ARE HEREBY NOTIFIED, pursuant to Iowa Code Section 441.44, that the above -named Appellant and the City of Dubuque Board of Review, Appellee, have entered into a voluntary settlement of this assessment appeal. A copy of the proposed Stipulation of Settlement is attached hereto. This Stipulation of Settlement will be presented to the Iowa Property Assessment Appeal Board for approval no sooner than fourteen (14) days from the date of this Notice. Dated this sk day of QNQSy\be_C , 2023. CITY OF DUBUQUE BOARD OF REVIEW Appellee. By: Barry A. Lindahl, Esq. Suite 330, Harbor View Place 300 Main Street Dubuque, IA 52001-6944 (563) 583-4113 IOWA PROPERTY ASSESSMENT APPEAL BOARD PAAB Docket No. 2023-104-00231 C Parcel No. 1028276901 KENNEDY MALL, INC. Appellant, LIVRI CITY OF DUBUQUE BOARD OF REVIEW, Appellee, STIPULATION OF SETTLEMENT Appellant Kennedy Mall Inc. and Appellee City of Dubuque Board of Review state to the Iowa Property Assessment Appeal Board that the pending litigation with regard to the tax assessment for the following -described property as of January 1, 2023: Parcel No. 1028276901 has been settled and agreed upon as follows: Valuation: Land $0 Building $25,512,400 Total $25,512,400 It is further agreed that upon entry of an Iowa Property Assessment Appeal Board Order confirming the above settlement, the above pending litigation shall be dismissed with prejudice. Dated this 3� day of h1oV� -- 2023. KENNEDY MALL, INC. CITY OF DUBUQUE BOARD OF REVIEW Appellant Appellee By: 0J,_ ( , - Apthony M. Chili, k,, AethoidW Apet r By: B ry A. Lindahl, Esq.