Stipulation of Settlement_AMC Showplace Theaters, Inc. Tax AppealBarry A. Lindahl, Esq.
City Attorney
Suite 330, Harbor View Place
300 Main Street
Dubuque, Iowa 52001-6944
(563) 583-4113 office
(563) 583-1040 fax
balesq@cityofdubuque.org
Mayor and Members of the City Council
of the City of Dubuque
City Hall
13th & Central Avenue
Dubuque, IA 52001
Chairperson of the
Dubuque County Board of Supervisors
Dubuque County Courthouse
720 Central Avenue
Dubuque, IA 52001
Chairperson of the School Board
Dubuque Community School District
Central Administration Offices
2300 Chaney Road
Dubuque, IA 52001
Chairperson of the Conference Board
of the City of Dubuque
City Hall
13th & Central
Dubuque, IA 52001
Dubuque
��d
THE CITY OF
DUB
1 1 1 I 54e-74-
2007
July 30, 2014
President of the Board of Directors
Northeast Iowa Community College
P.O. Box 400
Calmar, IA 52132
Chairperson of the Board of Trustees
Dubuque County Hospital
Sunnycrest Manor
2375 Roosevelt Street
Dubuque, IA 52001
Chairperson of the Council of the
Dubuque County Agricultural Extension
Service
14742 Hwy. 20 West, Suite 2
Dubuque, IA 52003
RE: Realty Income Corporation vs. Dubuque City Board of Review
2011 Tax Appeal—EQCV099734
2013 Tax Appeal—EQCV101065
2014 Tax Appeal—EQCV101589
Dear Chairpersons, Mayor and President:
Enclosed is a copy of a Stipulation of Settlement regarding the three tax assessment
appeals referenced above. Iowa Code § 441.44 requires that the Stipulation of
Settlement be served upon each of you.
The property that is the subject of this appeal is the AMC Theater located at 2835
Northwest Arterial. The assessed value for 2011 and 2012 was $7,531,970. The
assessed value for 2013 and 2014 is $8,134,527. The increase in assessed value was
due to an 8% equalization order from the Iowa Department of Revenue.
In protests to the Board of Review, the Petitioner requested a value of $4,405,235 for
2011, 2012, and 2013. The Petitioner requested a value of $4,000,000 for 2014. The
Board of Review denied each request for all four years. The Petitioner then filed an
appeal to District Court for 2011, 2013 and 2014. The interim year, 2012 would follow
the previous year assessment unless a settlement or court order specified a different
assessed value.
The property in question is a 66,842 square foot movie theater built in 2005. The lot size
is 10.257 acres; a substantial part of the lot is covered by building or parking lot. The
assessed value of $7,531,970 for 2011 and 2012 consists of land value of $1,899,430
and a building value of $5,632,540. The assessed value of $8,134,527 for 2013 and
2014 consists of land value of $2,051,384 and a building value of $6,083,143.
The Board of Review hired three appraisers: Robert Felderman, Kevin Pollard, and
Russ Manternach. The Felderman's appraisal resulted in a value of $5,390,000. The
Pollard appraisal reached a value of $6,000,000. The Manternach appraisal had a final
value of $5,800,000.
The Petitioner hired two appraisers: Tom Scaletty and Ken Riggs. The Scaletty
appraisal was $4,480,000 for 2011 and $4,620,000 for 2013. The Rigg's appraisal was
$4,000,000.
The range of the five appraisals is as follows:
$ 6,000,000 Board of Review
$ 5,800,000 Board of Review
$ 5,390,000 Board of Review
$ 4,480,000 Petitioner
$ 4,000,000 Petitioner
The primary difference between the assessed value and the appraised values is a
functional obsolescence that comes from a severe downturn in movie theater revenue
as the result of other sources of movie entertainment, such as streaming video and on -
demand cable television, a lack of population for the number of movie screens in the
Dubuque market, and a large amount of square footage that is in the theater lobby area
which produces income not associated with the building. It is a consensus of the
appraisers that the Dubuque theater is over -built: too many screens, too many seats for
each screen, and a large non -theater area. This has a significant impact on the value of
the theater.
2
Following mediation, a tentative agreement was reached for an assessed value of
$5,150,000 for the assessment years of 2011 through 2014.
If approved by the taxing entities, the proposed settlement will result in a reduction of
value of $2,381,970 for the 2011 and 2012 assessments and a tax loss to all the taxing
entities of $80,313 per year. The settlement for 2013 and 2014 will result in a reduction
in value of $2,984,527 for 2013 and 2014 and a tax Toss to the taxing entities of $93,622
for the 2013 year and a similar loss for 2014 although taxes are not yet budgeted for the
2014 year.
Pursuant to the Stipulation of Settlement, this appeal will be dismissed and the
assessed value be adjusted to $5,150,000 for parcel 1017151017 for the years 2011
through 2014.
The proposed settlement will be presented to the Court after fourteen days from the
date indicated on the attached Notice of Voluntary Settlement. If there are any
objections to the proposed settlement, they should be made known to the Court prior to
that time.
If you have any questions about the proposed settlement, please contact City Assessor,
Rick Engelken at (563)-589-7800.
Very scerely
t
Barry A. Lindahl, Esq.
City Attorney
BAL/tls
Enclosure
cc: Michael C. Van Milligen, City Manager
Kevin Firnstahl, City Clerk
Rick Engelken, City Assessor
F:\USERS\tsteckle\Lindahl\Tax Appeals\AMC 2011, 2013 & 2014\ChairperMayorPres_AMC_Agenda_072214.doc
3
IN THE DISTRICT COURT FOR DUBUQUE COUNTY
AMC SHOWPLACE THEATRES, INC., )
Plaintiff,
Case No. 01311 EQCV099734
Case No. 01311 EQCV101065
vs. ) Case No. 01311 EQCV101589
DUBUQUE CITY BOARD OF REVIEW )
Defendant. )
ORDER
On this 3 day of - tkik ° , 2014, there is presented to the Court a
proposed Stipulation of Settlement of th6 parties in the above tax appeals.
Iowa Code Section 441.44 requires that written notice of the proposed settlement
be served upon each of the taxing bodies interested in the taxes derived from the
assessments that are the subject of these appeals.
The Court concludes that service upon each of the taxing bodies by ordinary mail
is sufficient to meet the requirements of the statute.
IT IS THEREFORE ORDERED that the Dubuque City Board of Review shall
serve a copy of the proposed Stipulation of Settlement upon each of the taxing bodies
interested in the taxes derived from the assessment by ordinary mail; and that proof of
said service be made by Affidavit of the person who actually mails such copies.
SO ORDERED.
MONICA AC LFX
Judge, First Judicial District
IN THE DISTRICT COURT FOR DUBUQUE COUNTY
)
AMC SHOWPLACE THEATRES, INC., )
Plaintiff, )
Case No. 01311 EQCV099734
Case No. 01311 EQCV101065
vs. ) Case No. 01311 EQCV101589
)
DUBUQUE CITY BOARD OF REVIEW )
Defendant. )
STIPULATION OF SETTLEMENT
Plaintiff, AMC Showplace Theatres, Inc., and Defendant, Dubuque City
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, 2011, January 1,
2012, January 1, 2013, and January 1, 2014:
Parcel ID 101715017: Lot 6 Asbury Plaza #12
has been settled and agreed upon as follows:
1. Valuation:
Land $1,899,430.00
Buildings $3,250,570.00
Total $5,150,000.00
It is further agreed that the Valuation of $5,150,000,00 shall be effective for
January 1, 2011, January 1, 2012, January 1, 2013, and January 1, 2014.
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 Plaintiffs.
Dated thisiii fk day of (-Jai
2014.
AMC SHOWPLACE TMATRES, INC D11DIQUg BOARD OF REVIEW
by: by:
Sam nes-Esq, B,rry A. Lindahl, Esq.
IN THE DISTRICT COURT FOR DUBUQUE COUNTY
AMC SHOWPLACE THEATRES, INC., )
Plaintiff, )
vs. )
DUBUQUE CITY BOARD OF REVIEW )
Defendant. )
Case No. 01311 EQCV099734
Case No. 01311 EQCV101065
Case No. 01311 EQCV101589
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 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 above-named Court for
approval after fourteen days from the date of this Notice.
Dated this .l\ day of l t1 , 2014.
DUBUQUE CITY BOARD OF REVIEW
By
Barf A. Lindahl, Esq.
City Attorney
Suite 330, Harbor View Place
300 Main Street
Dubuque, IA 52001-6944
(563) 583-4113
F:\USERS\tsteckle\Lindahl\Tax Appeals\AMC 2011, 2013 & 2014\NoticeOfVoluntarySettlement_070814.doc