Stipulation of Settlement_AY McDonald Manufacturing Co. Property Tax Appeal Copyrighted
November 19, 2018
City of Dubuque Consent Items # 18.
ITEM TITLE: Stipulation of Settlement—AY McDonald Manufacturing Co.
Property Tax Appeal
SUMMARY: CityAttorney recommending approval of the Stipulation of
Settlement for a property tax appeal filed by AY McDonald
Manufacturing for their property at 4800 Chavenelle 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
Dubuque
Barry A.Lindahl, Esq. THE CTTY OF �
Senior Counsel �E�Mq6�h
Suite 330, Harbor View Place �� � �������''���
300 Main Street I I
Dubuque, lowa 5200f-6944
(563)583-4113 office • • 2007•2012
(�63)583-1040 fa;c Masterpieee on the Mississippi Zo13.Zo1,
balesq�citvofdubuque.orQ �
Oftice Hours: 8:00 AM—5:00 PM,T-W-Th
8:OOAM- 12:OOPM,F
AGENDA LETTER
November 1, 2018
Mayor and Members of the City Council President of the Board of Directors
of the City of Dubuque Northeast lowa 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
13t" & Central
Dubuque, IA 52001
RE: AY McDonald Manufacturing Co. vs. City of Dubuque Board of Review
2017 and 2018 Property Tax Appeals
Property Assessment Appeal Board Docket Nos. 2017-104-002841 and
2018-104-001301
Enclosed is a copy of the Stipulation of Settlement regarding tax assessment appeals
filed by AY McDonald Manufacturing Co. with the Property Assessment Appeal Board.
lowa Code Sec. 441.44 requires that the Stipulation of Settlement be served upon each
of you.
There is one parcel that is the subject of these appeals. However, there are two appeals.
One appeal is for the January 1 , 2017 assessed value. The other appeal is for the January
1, 2018 assessed value.
AY McDonald withdrew its appeal on another parcel.
The AY McDonald Property
The property which is the subject of these two appeals and proposed settlement is the
AY McDonald manufacturing facility located at 4800 Chavenelle Road, parcel number
1029402004. The property sits on 19.70 acres and has a 1-story concrete tilt-up steel
frame building with 214,221 square feet. The building is used as a manufacturing facility
and also has a 2-story office area included in the square footage. The building has
minimal finish except in the office area. The building was originally constructed in 1982
and additions were added in 1996 and 2012.
2017 Appeal
AY McDonald Manufacturing Co., represented by Josh Malancuk of JM Tax Advocates,
filed a protest with the City of Dubuque Board of Review in April of 2017 appealing the
2017 assessed value of $6,000,000. In the protest, AY McDonald Manufacturing Co.
claimed the assessed value should be $4,800,000. The Board of Review denied the
protest and AY McDonald appealed the denial to the Property Assessment Appeal Board.
2018 Appeal
AY McDonald Manufacturing Co., represented by Josh Malancuk of JM Tax Advocates,
filed a protest with the City of Dubuque Board of Review in April of 2018 appealing the
2018 assessed value of $6,000,000. In the protest, AY McDonald Manufacturing Co.
claimed the assessed value should be $5,250,000. The Board of Review denied the
protest and AY McDonald appealed the denial to the Property Assessment Appeal Board.
The Appraisals
An appraisal was completed for AY McDonald Manufacturing Co. by David Mark Nelson
of Roy R Fischer of Davenport, lowa. Nelson reached an appraised value conclusion of
$5,250,000 for the manufacturing site.
Tom Howe completed an appraisal for the Board of Review. Howe's conclusion of value
was $6,100,000 for the 2017 assessment year.
Proposed Settlement
The parties had several unsuccessful settlement discussions before reaching the
proposed settlement agreement. The Board of Review and AY McDonald Manufacturing
Co. have reached a tentative settlement for an assessed value for January 1, 2017 and
January 1 , 2018 of $5,675,000. The settlement also includes the January 1, 2019 and
2
January 1, 2020 assessed values being raised to $5,825,000, with a provision to allow
the value to be adjusted if new construction is added in 2018 or 2019.
The settlement will result in a total tax loss to all taxing bodies of $9,628 for each of the
2017 and 2018 assessment years. The loss will be reduced to $5,184 for the 2019 and
2020 assessment years. This settlement will also avoid appeals for the 2019 and 2020
assessment years.
Pursuant to the Stipulation of Settlement these appeals will be dismissed and the
assessed value will be adjusted to $5,675,000 for the 2017 and 2018 years. The value
for 2019 and 2020 will be adjusted to $5,825,000. The value for 2017 will be apportioned
as follows:
Land $1,240,630
Building $4,434,370
Total $5,675,000
The proposed settlement will be presented to the Property Assessment Appeal Board
after fourteen days from the date indicated on the attached Notice of Voluntary
Settlement. If there are any objections to the settlement they should be made known to
the Property Assessment Appeal Board prior to that time. If you have any questions about
the proposed settlement, please contact City Assessor Rick Engelken at 563-589-7800.
Very s' c rely,
B rry A. Lindahl, Esq.
S nior Counsel
Enclosure
Attachment
cc: Michael C. Van Milligen, City Manager
Kevin Firnstahl, City Clerk
Rick Engelken, City Assessor
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3
IOWA PFiQPERTY �4SSESSiVfENT APPEAL BOARD
PAAB Docket No. 2017-1 Q4-OQ2841
�ND
PAAB Doc{cet No. 2018-'i 04-001301
Parcel fVo. 1029402004
AY MCDONALD MANUFACTURING CO,
Appeflant,
vs.
CITY 4F DUBUQUE BOARD OF REVIEUV,
Appel(ee.
STIPULATI�N OF SET1'LEMEI�T
Appellant AY McDonald Manufacturing Co., and Appellee City of Dubuque Board
af Revier+v, state to the Court that the pending litigation with regard to the tax assessment
for the fcliowing-d�scribed property as of January 1, 20�7 and Janua�y 1, 201$:
Parcel No. 10294Q2004
has been settled and agreed upon as folfows:
Valuation:
Land $1,240,630
Building $4,434,370 �
Total $5,675,000
It is fur�her agreed that, subject to adjustment for any new construction in 2418 or
2019, the Valuation of $5,825,000 sha(I be effective for January 1, 2419 and January 1,
202Q.
It is further agreed that upon entry of an fowa Property Assessment Appeai Board
Order cc�nfirming the above settlement, the above pending litigation shall be dismissed
with prej�adice.
Dated this �-� day of�,�_,,���r , 2018.
AY MCQC}NALD MANUFACTURtNG CC7. CITY �F DUBUQUE BOARD OF REVlEUV
Appallant Appellee
♦
�,
B : �` � 5 L�G Byi
Jos a J. Malancuk Barry A. Lindahl, Esq., Senior Counsel
OQ Olio Road Suite 330, Harbor View Place
Fishers, IN 46037 300 Main Street
Dubuque, IA 52001
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2
IOWA PROPERTY ASSESSMENT APPEAL BOARD
PAAB Docket No. 2017-104-002841
AND
PAAB Docket No. 2018-104-001301
Parcel No. 1029402004
AY MCDONALD MANUFACTURING CO,
Appellant,
vs.
CITY OF DUBUQUE BOARD OF REVIEW,
Appellee.
NOTICE OF VOLUNTARY SETTLEMENT
TO: City of Dubuque, lowa
County of Dubuque, lowa
Dubuque Community School District
Northeast lowa Community College
Dubuque County Hospital
Dubuque County Agricultural Extension Service
Conference Board of the City of Dubuque
YOU ARE HEREBY NOTIFIED, pursuant to lowa 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 these assessment appeals.
A copy of the proposed Stipulation of Settlement is attached hereto.
This Stipulation of Settlement will be presented to the lowa Property
Assessment Appeal Board for approval no sooner than fourteen days from the
date of this Notice.
Dated this 1st day of November, 2018.
CITY OF DUBU UE BOARD OF REVIEW
Appellee. ,�'
�
By:
B rry A. Lindahl, Esq.
ui#e 330, Harbor View Place
00 Main Street
Dubuque, IA 52001-6944
(563) 583-4113
F:\Users\tstecklelLindahl\Tax Appeals�AY McDonald\Settlement Docs\NoticeOtVoluntarySettlement_2017&2018_110118.docx