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Davenport Farm and Fleet, Inc. Property Tax Appeal Settlement Copyrighted August 17, 2020 City of Dubuque Consent Items # 15. City Council Meeting ITEM TITLE: Davenport Farm and Fleet, Inc. PropertyTaxAppeal Settlement SUM MARY: Senior Counsel recommending approval of the Stipulation of Settlement with respect to a property tax appeal filed by Davenport Farm and Fleet, I nc., for property located at 2675 NW Arterial. SUGGESTED Suggested Disposition: Receive and File;Approve DISPOSITION: ATTACHMENTS: Description Type Staff Letter Staff Memo Stipulation of Settlement Supporting Documentation Notice of Voluntary Settlement Supporting Documentation Dubuque Barry A.Lindahl,Esq. THE GTY QF � Senior Counsel �IF�U1EIYp EIEy Suite 330,Harbor View Place � �... ..� 300 Main Street �� E ���� Dubuque,Iowa 52001-6944 (563)583-4113 office • 2007•2012 (563)583-1040 fax II�Iasterpiece an the Mississippi 2a13•2u17 bales cityofdubuque.arg Office Hours: 8:00 AM—5:00 PM,T-W-Th 8:00 AM—12:00 PM,F August 13, 2020 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: Davenport Farm and Fleet, Inc. vs. City of Dubuque Board of Review 2019 Property Tax Appeal • lowa District Court for Dubuque County Case No. CVCV109286 2020 Property Tax Appeal • lowa District Court for Dubuque County Case No. CVCV110896 Enclosed is a of the Stipulation of Settlement regarding a tax assessment appeal filed by Davenport Farm and Fleet, Inc. (Farm and Fleet) filed in lowa District Court for Dubuque County. 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 property being appealed is the Farm and Fleet property located at 2675 NW Arterial, Parcel no. 1017426006. The Farm and Fleet Property The property sits on 20.54 acres and has a one-story concrete tilt-up frame building built in 2014. The building is 114,945 square feet and is used as a big box retail store. The building includes an office mezzanine of 4,774 square feet, a sprinkler system throughout the entire building, and an automotive service area. The interior finish primarily has vinyl flooring, painted walls, and exposed ceilings. The land has a large amount of paving covering the surface. 2019 Appeal Farm and Fleet filed a protest with the City of Dubuque Board of Review in April of 2019 appealing the 2019 assessed value of $9,003,740. Farm and Fleet was represented at the Board of Review hearing by the property tax representatives, Savage and Browning. The initial protest claimed the assessed value to be $4,000,000 based on a market survey. Before the Board of Review hearing, an appraisal was submitted for Farm and Fleet by Donald DiNapoli and Edward Kling of RVG Commercial. Their conclusion of market value was $7,900,000. The Board of Review denied the protest and Farm and Fleet filed an appeal in lowa District Court for the 2019 assessment asking for a reduction to $7,900,000. The Appraisals The RVG Commercial appraisal from St. Charles, Illinois submitted by Farm and Fleet used the three approaches to value, which were $8,100,000, $7,900,000, and $7,800,000. Their conclusion of value for the 2019 assessment was $7,900,000. Dennis Cronk with Cook Appraisal of lowa City lowa completed an appraisal for the Dubuque City Board of Review. Cronk's values from the three approaches to value were $9,425,000, $9,095,000, and $8,625,000. Cronk's conclusion of value was $9,075,000 for the 2019 assessment. Proposed Settlement The City Board of Review and Davenport Farm and Fleet, Inc. have reached a tentative settlement of the assessed value for January 1, 2019 and January 1, 2020 of$8,800,000. To summarize: Cronk value (for City Board of Review) $9,075,000 Assessed value $9,003,740 Settlement $8,800,000 DiNapoli and Kling value (for Farm & Fleet) $7,900,000 2 The settlement will result in a total tax loss to all taxing bodies of $5,921 for each of 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 $8,800,000 for the 2019 and 2020 years. The value for 2019 and 2020 will be apportioned as follows: Land $2,233,350 Building $6,566,650 Total $8,800,000 The proposed settlement will be presented to the lowa District Court 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 lowa District Court at that time. If you have any questions about the proposed settlement, please contact City Assessor Troy Patzner at 563-589-4416. Very sincerely, . arry A. Lindahl, Esq. Senior Counsel Enclosure Attachment cc: Michael C. Van Milligen, City Manager Kevin Firnstahl, City Clerk Troy Patzner, City Assessor 3 IN THE IOWA DISTRICT COURT IN AND FOR DI�BUQUE COUNTY DAVENPORT FARM AND FLEET, INC. Appellant, vs. CASE NO. 01311 CVCV109286 CITY OF DUBUQUE BOARD OF REVIEW, Appellee. STIPULATION OF SETTLEMENT Appellant Davenport Farm and Fleet, Inc., and Appellee City of Dubuque Board of Review, state to the Court that the pending litigation with regard to the tax assessment for the following-described property as of January 1, 2019: Parcel No. 1017426006 (locally known as 2675 NW Arterial, Dubuque, lowa) has been settled and agreed upon as follows: Valuation: Land $2,233,350 Building $6,566,650 Total $8,800,000 It is further agreed that the Valuation of $8,800,000 shall also be effective for January 1, 2020. It is further agreed that upon entry of a Court Order confirming the above settlement, the above pending litigation shall be dismissed with prejudice and the costs shall be paid by Appellant. , ,� .� !�, Dated this >>�`� day of ������;I:IC����- , 2020. � DAVENPORT FARM AND FLEET, INC. CITY OF DUBUQUE BOARD OF REVIEW ��� � . By: � ,_� gy: An�,re J. Schneiderman Bar A. Lindahl, Esq. MOORE, HEFFERNAN, MOELLER, Suite 330, Harbor View Place JOHNSON & MEIS, LLP 300 Main Street 501 Pierce Street, Suite 300 Dubuque, IA 52001 PO Box 3207 Sioux City, IA 51102 IN THE IOWA DISTRICT COURT IN AND FOR DUBUQUE COUNTY DAVENPORT FARM AND FLEET, INC. Appellant, vs. CASE NO. 01311 CVCV109286 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 Plaintiff and the Dubuque City Board of Review, Defendant, 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 Court for approval no sooner than fourteen days from the date of this Notice. Dated this 13t" day of Au ust, 2020. CITY OF D BUQUE BOARD OF REVIEW . By:_ : B rry A. Lindahl, Esq. Suite 330, Harbor View Place 300 Main Street Dubuque, IA 52001