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Stipulation of Settlement for Property Tax Appeal - HyVee S. Locust Copyrighted March 20, 2017 City of Dubuque Consent Items # 9. ITEM TITLE: Stipulation of Settlement for Property Tax Appeal - HyVee Food Stores, 300 S. Locust Street SUMMARY: City Attorney recommending approval of the Stipulation of Settlement for a property tax appeal filed by HyVee Food Stores, Inc. for property located at 300 S. Locust Street. SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Approve ATTACHMENTS: Description Type Staff Memo Staff Memo Stipulation of Settlement Supporting Documentation Notice of Voluntary Settlement Supporting Documentation Barry A. Lindahl, Esq. Dubuque THE CY OF E+ City Attorney Suite 330, Harbor View Place D�UB �+300 Main Street AII•Amedeaeity Dubuque, Iowa 52001-6944 (563)583-4113 office Masterpiece on the Mississippi (563)583-1040 fax balesq(_c-tcityofdubuque.org 2007.2012•2013 March 8, 2017 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 13th & Central Avenue Calmar, IA 52132 Dubuque, IA 52001 Chairperson of the Chairperson of the Board of Trustees Dubuque County Board of Supervisors Dubuque County Hospital Dubuque County Courthouse Sunnycrest Manor 720 Central Avenue 2375 Roosevelt Street Dubuque, IA 52001 Dubuque, IA 52001 Chairperson of the School Board Chairperson of the Council of the Dubuque Community School District Dubuque County Agricultural Extension Central Administration Offices Service 2300 Chaney Road 14858 West Ridge Lane, Suite 2 Dubuque, IA 52001 Dubuque, IA 52003 Chairperson of the Conference Board of the City of Dubuque City Hall 13th & Central Dubuque, IA 52001 RE: Hy-Vee Inc and Hy-Vee Food Stores vs. City of Dubuque Board of Review (South Locust) / Docket No. 2015-104-00006C - Parcel No. 10-25-477-006 Enclosed is a copy of a Stipulation of Settlement regarding a tax assessment appeal filed by Hy-Vee, Inc. Iowa Code 441 .44 requires that the Stipulation of Settlement be served upon each of you. The property is located at 300 South Locust. The parcel number is 1025477006. This property was built in 2005 and sits on a 6.97 acres of land. The property contains a 77,526 square foot grocery store and also has a 2,409 square foot convenience store. The assessed value for January 1, 2015 was $6,049,190 based on a 2013 court settlement in an earlier appeal. The value was raised 12% to $6,796,474 based on a 2015 equalization order by the Iowa Department of Revenue for all commercial property in the city of Dubuque. Hy-Vee protested the equalization order to the Board of Review in the Fall of 2015. The Board of Review denied the protest. Hy-Vee then protested the equalization order to the Property Assessment Appeal Board claiming that the value of the property was $6,049,190. Hy-Vee also filed a protest to the Board of Review from the January 1, 2016 value claiming a value of$4,077,884, which was denied by the Board. In an appraisal for the Board of Review by Tom Howe of Kane Appraisals, Mr. Howe concluded that the property value for January 1, 2015 was $7,425,000. Hy-Vee's two appraisers concluded that the value of the property was $5,250,000 and $5,230,000. After lengthy negotiations the parties have reached a tentative settlement value of $6,432,000. The following is a summary of the appraisals along with the assessed value: Howe (Board Appraiser) $7,425,000 Assessed value $6,796,474 Settlement $6,432,000 Nunn (HyVee Appraiser) $5,250,000 Scaletty (HyVee Appraiser) $5,230,000 The settlement will result in a reduction in assessed value of $364,474 for the January 1, 2015 assessment. This settlement will mean a total tax loss to all of the taxing bodies of $11,156 for the current fiscal year. The 2015 settlement value is an increase of $382,810 from the 2015 assessed value prior to the equalization order. Pursuant to the Stipulation of Settlement, this appeal will be dismissed and the assessed value will be adjusted to $6,432,000 for the 2015 and 2016 assessment years. The proposed settlement will be presented to the Property Assessment Appeal Board after fourteen 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, Rick Engelken at (563)-589-7800. Very icerely, rry A. Lindahl, Esq. enior Counsel Enclosure cc: Michael C. Van Milligen, City Manager Kevin Firnstahl, City Clerk Rick Engelken, City Assessor F:\USERS\tsteckle\Undahl\Tax Appeals\HyVee 2015\Settlement Docs\ChairperMayorPres_AgendaMemo-6C-SLocust_030817.doc IOWA PROPERTY ASSESSMENT APPEAL BOARD PAAB Docket No. 2015-104-00006C Parcel No. 10-25-477-006 HY-VEE INC AND HY-VEE FOOD STORES, Appellant, vs. CITY OF DUBUQUE BOARD OF REVIEW, Appellee. STIPULATION OF SETTLEMENT Appellant Hy-Vee Inc and Hy-Vee Food Stores, 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, 2015: Parcel No. 10-25-477-006 has been settled and agreed upon as follows: Valuation: Land $613,693 Building $5,818,307 Total $6,432,000 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 .%Il% day of M?yAl _ , 2017. HY-VEE INC AND HY-VEE FOOD CITY OF DUBU E BOARD OF REVIEW STORES By: <<- By: Mark A. Roberts, Esq. Barry . Lindahl, Esq, SIMMONS PERRINE MOYER Suite 30, Harbor View Place BERGMAN PLC 300 Main Street 115 Third Street SE, Suite 1200 Dubuque, IA 52001 Cedar Rapids, IA 52401 IOWA PROPERTY ASSESSMENT APPEAL BOARD PAAB Docket No. 2015-104-00006C Parcel No. 10-25-477-006 HY-VEE INC AND HY-VEE FOOD STORES, 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 days from the date of this Notice. Dated this 8t" day of March, 2017. City of Dubu e Board of Review, Appellee By Barry A. Lindahl, Esq., City Attorney Suite 330, Harbor View Place 300'Main Street Dubuque, IA 52001-6944 (563) 583-4113