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Stipulation of Settlement for Property Tax Appeal - HyVee Asbury Road Copyrighted March 20, 2017 City of Dubuque Consent Items # 10. ITEM TITLE: Stipulation of Settlement for Property Tax Appeal - HyVee Food Stores, 4800 Asbury Road SUMMARY: City Attorney recommending approval of the Stipulation of Settlement for a property tax appeal filed by HyVee Food Stores, I nc. for property located at 4800 Asbury Road. 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.Undahl, Esq. Dubuque THE CF City Attorney Suite 330, Harbor View Place DU6B 300 Main Street AII-Amedeality Dubuque, Iowa 52001-6944 (563)583-41 13 office Masterpiece on the Mississippi (563)583-1040 fax balesgCtcityofdubuque.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: 4800 Asbury Road Dubuque IA LLC vs. City of Dubuque Board of Review (NW Arterial) / Docket No. 2015-104-00005C - Parcel No. 10-17-476-005 Enclosed is a copy of a Stipulation of Settlement regarding a tax assessment appeal filed by 4800 Asbury Road Dubuque-IA LLC (Hy-Vee). Iowa Code 441.44 requires that the Stipulation of Settlement be served upon each of you. The property is located at 2395 Northwest Arterial and is owned and operated by 4800 Asbury Road Dubuque IA LLC. The parcel number 1017476005. The property sits on 9.56 acres and has a one-story decorative concrete block steel frame, building with 78,134 square feet. The building is a large big box retail building used as a grocery store by Hy-Vee. The building has normal finish with an office mezzanine of 4,000 square feet. The building was originally built in 1999 and an addition of 11,792 was added in 2006. The assessed value for January 1, 2015 was $5,000,000 based on a 2013 court settlement in a previous appeal. The value was raised by 12% by the Iowa Department of Revenue to $5,600,000 based on a 2015 equalization order for all commercial property in the city of Dubuque. 4800 Asbury Road Dubuque IA LLC timely protested that increase to the Board of Review in the Fall of 2015. The Board of Review reduced the assessed value to $5,400,000. 4800 Asbury Road Dubuque IA LLC then protested the assessed value to the Property Assessment Appeal Board claiming that the property value was $5,000,000. 4800 Asbury Road Dubuque IA LLC also filed a protest to the Board of Review on the January 1, 2016 value claiming a value of $3,240,000. The Board denied the protest. In an appraisal that was completed for the Board of Review, Tom Howe of Kane Appraisals concluded that the value of the property as of January 1, 2015, was $6,900,000. Two appraisals by the appraisers for 4800 Asbury Road Dubuque IA LLC concluded that the 2015 value of the property was $4,690,000. The parties have reached a tentative settlement value of $5,300,000 for the Arterial property. The following is a summary of the appraisals and the assessed value: Howe (Board Appraiser) $6,900,000 Settlement $5,300,000 Assessed Value $5,400,000 Nunn (HyVee Appraiser) $4,750,000 Scaletty (HyVee Appraiser) $4,690,000 The settlement will result in a reduction in assessed value of $100,000 for the 2015 assessment year from the 2015 assessed value. This settlement will result in a total tax loss to all of the taxing bodies of $3,060 for the current fiscal year. The 2015 settlement value is an increase of $300,000 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 $5,300,000 for the 2015 and 2016 assessed values. 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 2 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. V7rr�yA. cerely, tj BLindahl, Esq. Senior Counsel Enclosure cc: Michael C. Van Milligen, City Manager Kevin Firnstahl, City Clerk Rick Engelken, City Assessor FAUSERS\tsteckle\l-indahkTax Appeals\HyVee 2015\Settlement Docs\ChairperMayorPres_AgendaMemo-5C-NWArterial_030817.doc 3 IOWA PROPERTY ASSESSMENT APPEAL BOARD PAAB Docket No. 2015-104-00005C Parcel No. 10-17-476-005 4800 ASBURY ROAD DUBUQUE la LLC, Appellant, vs. CITY OF DUBUQUE BOARD OF REVIEW, Appellee, STIPULATION OF SETTLEMENT Appellant 4800 Asbury Road Dubuque la LLC, 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. 10-17-476-005 has been settled and agreed upon as follows: Valuation: Land $1,354,320 Building $3,945,680 Total $5,300,000 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 a- n_ day of 1 aen� _, 2017. 4800 ASBURY ROAD DUBUQUE CITY OF DUBUQUE BOARD OF REVIEW la LLC By: By: Mark A. Roberts, Esq. B rry A. Lindahl, rzsq. SIMMONS PERRINE MOYER Site 330, 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. 2015-104-00005C Parcel No. 10-17-476-005 4800 ASBURY ROAD DUBUQUE IA LLC, 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 ofDub e Board of Review, Appellee By BaA. Lindahl, Esq., City Attorney Su e 330, Harbor View Place 30 Main Street Dubuque, IA 52001-6944 (563) 583-4113