Kohl's Property Tax Appeal Stipulation of Settlement _Kohl's, 2592 NW Arterial Copyrighted
January 22, 2019
City of Dubuque Consent Items # 10.
ITEM TITLE: Kohl's PropertyTaxAppeal Stipulation of Settlement
SUMMARY: Senior Counsel recommending approval of a Stipulation of
Settlement for a property tax appeal filed by Kohl's for their
property at 2595 NW Arterial.
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 CITY OF , ,
Senior Counsel uf�oerle�6iry
Suite 330, Harbor View Place �� � �����������
300 Main Street � �� ��
Dubuque,[owa 52001-6944
(563)583-41 13 office Masterpiece on the Mississippi 2013•2oi7
(563)583-1040 fax
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Oftice Hours: 8:00 AM—5:00 PM,T-W-Th
8:00 AM— 12:00 PM,F
AGENDA LETTER
January 7, 2019
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
13t" & 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: Kohl's. vs. City of Dubuque Board of Review
2017 Property Tax Appeal
Property Assessment Appeal Board Docket No. 2017-104-00193C
Enclosed is a copy of the Stipulation of Settlement regarding a tax assessment appeal
filed by Kohl's 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 property that is the subject of this appeal. The appeal is for the January 1,
2017 assessed value.
The Kohl's Property
The property which is the subject of this appeal and proposed settlement is the Kohl's
store located at 2595 Northwest Arterial, parcel number 1017426003. The property sits
on 9.86 acres and has a 1 story concrete block retail building with 88,406 square feet.
The building is used as a big box retail store and also has an open mezzanine of 7042
square feet. The interior finish is a mix of carpet and ceramic tile floors, acoustic tile ceiling
tiles and drywall for interior partitions. The building was originally constructed in 2004.
The parking lot and roof are in need of repair at this time.
2017 Appeal
Kohl's represented by Rich Hermes of CBIZ MHM, LLC, of St. Louis filed a protest with
the City of Dubuque Board of Review in April of 2017, appealing the 2017 assessed value
of $5,824,000. In the protest Kohl's claimed the assessed value should be $5,050,000
based on all three appraisal approaches to value. The Board of Review denied the protest
and Kohl's appealed the denial to the Property Assessment Appeal Board.
The Appraisals
An appraisal was completed for Kohl's by Thomas M. Scaletty of Mainland Valuation
Services of Lenexa Kansas. The appraisal used nine different comparable sales from the
midwest and also included a cost and income approach. Mr. Scaletty's appraised value
was for $4,420,000, which is $1,404,000 below the current assessed value.
Dennis Cronk of Cook Appraisal LLC, of lowa City completed an appraisal for the Board
of Review. Mr. Cronk's appraisal also included all three approaches to value. Mr. Cronk's
conclusion of value was $6,300,000 for the 2017 assessment year.
The range between the two appraisals - Kohl's appraisal of $4,420,000 and the Board's
appraisal of $6,300,000 - is $1,880,000.
Proposed Settlement
The parties have reached a proposed settlement agreement. The tentative settlement is
for an assessed value for January 1, 2017 and January 1 , 2018 of $5,600,000. The
settlement also includes the January 1 , 2019 and January 1, 2020 assessed values being
kept at $5,600,000, with a provision to allow the 2020 value to be raised if improvements
are made to the property.
Pursuant to the Stipulation of Settlement the appeal will be dismissed and the assessed
value will be adjusted to $5,600,000 for the 2017, 2018, 2019, and 2020 years.
2
The value for 2017 will be apportioned as follows:
Land $1,561,146
Building $4,038,854
Total $5,600,000
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 sincerely,
�.� ,.. .
�� �,
�d`"` � _, - .�-
�'i� Barry A. Lindahl, Esq.
� Senior Counsel
Enclosure
Attachment
cc: Michael C. Van Milligen, City Manager
Kevin Firnstahl, City Clerk
Rick Engelken, City Assessor
F:\Users\tsteckle\Lindahl\Tax Appeals\Kohls 2017\Settlement Docs\TaxingBodiesLetter_AGENDA_010419.docx
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IOWA PROPERTY ASSESSMENT APPEAL BOARD
PAAB Docket No. 2017-104-00193C
Parcel No. 1017426003
KOHL'S,
Appellant,
vs.
CITY OF DUBUQUE BOARD OF REVIEW,
Appellee.
STIPULATION OF SETTLEMENT
Appellant Kohl's, and Appellee City of Dubuque Board of Review, state to the lowa
Property Assessment Appeal Board that the pending litigation with regard to the tax
assessment for the following-described property as of January 1, 2017:
Parcel No. 1017426003
has been settled and agreed upon as follows:
Valuation:
Land $1 ,561,146
Building $4,038,854
Total $5,600,000
It is further agreed that the Valuation of $5,600,000 shall be effective for January
1, 2018, January 1 , 2019, and January 1, 2020, subject to any improvements that would
result in a change in value during 2020.
It is further agreed that upon entry of an lowa Property Assessment Appeal Board
Order confirming the above settlement, the above pending litigation shall be dismissed
with prejudice. i
Dated this �_ day of �auu,+�2y , 2019.
KOHL'S CITY OF DUBUQUE BOARD OF REVIEW
Appellant Appellee
'S� .
BY' � BY� "�
� .�:�,, _, �,�>,�
� - -
Deborah M. Tharnish ,�Qarry A. Lindahl, Esq.
Davis Brown Law Firm �;Suite 330, Harbor View Place
215 10�" Street, Suite 1300 300 Main Street
Des Moines, IA 50309 Dubuque, IA 52001
F:\Users\tsteckle\Lindahl\Tax Appeals\Kohls 2017\Settlement Docs\StipulationOfSettlement_010319.docx
2
IOWA PROPERTY ASSESSMENT APPEAL BOARD
PAAB Docket No. 2017-104-00193C
Parcel No. 1017426003
KOHL'S,
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 this assessment appeal.
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 7t" day of January, 2019.
CITY OF DUBUQUE BOARD OF REVIEW
Appellee.
F���,f
By. ���-�,,�'��,,.,,e,�„�.T..
� arry A. Lindahl, Esq. ,
�Suite 330, Harbor View Place
300 Main Street
Dubuque, IA 52001-6944
(563) 583-4113
F:\Users\tsteckle\Lindahl\Tax Appeals\Kohls 2017\Settlement Docs\NoticeOfVoluntarySettlement_Proposed_010319.docx