Stipulation of Settlement — Adams Company Property Tax Appeal Copyright 2014
City of Dubuque Consent Items # 10.
ITEM TITLE: Stipulation of Settlement—Adams Company Property Tax
Appeal
SUMMARY: City Attorney recommending approval of the Stipulation of
Settlement for a property tax appeal filed by the Adams
Company for property located at 8040 Chavenelle Road.
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Approve
ATTACHMENTS:
Description Type
Staff Letter Staff Memo
Stipulation of Settlement Staff Memo
Notice of Voluntary Settlement Staff Memo
Barry A.Lindahl, Esq. Dubuque THE C
City Attorney
—Wat—
Suite 330, Harbor View Place DUUB
E
300 Main Street All'AmencaCitY
Dubuque, Iowa 52001-6944
(563)583-4113 office Masterpiece on the Mississippi
(563)583-1040 fax
balesgr cityofdubuque.org 2007.2012•2013
March 10, 2016
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 14742 Hwy. 20 West, 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: The Adams Company vs. City of Dubuque Board of Review
2015 PAAB Property Tax — Docket No. 2015-104-004121
Enclosed is a copy of the Stipulation of Settlement regarding a tax assessment appeal
filed by The Adams Company. Iowa Code 441.44 requires that the Stipulation of
Settlement be served upon each of you.
There is one property that is the subject of the appeal, located at 8040 Chavenelle
Road, parcel number 0925427005. The property sits on 10.48 acres and has a 44,000
square foot one-story steel frame, metal clad building. The property also includes a
6,080 square foot one-story brick veneer office addition on the ground floor. The main
building has two finished areas totaling nearly 3,000 square feet of finished area. The
building was built in 2004 and has a land-to-building ratio of 9.12 to 1. The useable
portion of the land is approximately 80% of the parcel size. The assessed value for
2015 was $2,465,100.
The Adams Company, represented by Robert Wentzel of Alliance Property Consultants,
protested the 2015 assessed value to the Dubuque City Board of Review in the Spring
of 2015, claiming that the assessment was too high, arguing that the assessed value
should be $1,500,000. Mr. Wentzel based the protest on what he considered to be
comparable properties for sale to reach his value conclusion. The Board of Review
denied this request and The Adams Company appealed the assessment to the Property
Assessment Appeal Board (PAAB).
An appraisal was completed for The Adams Company by Chris Jenkins of CBRE
Valuation and Advisory Services of Des Moines. Mr. Jenkins concluded the assessed
value should be $1,950,000 for the January 1, 2015 assessment date. He used a set of
seven comparable sales properties and made adjustments to each of them to reach his
conclusion.
Dubuque appraiser Tom Howe completed an appraisal for the Board of Review. Mr.
Howe's appraisal using the comparable sales resulted in a value of $2,379,000 and
using the income approach his value was $2,540,000. Reconciling those two values, he
reached a final assessed value of$2,490,000.
Both The Adams Company appraiser and Mr. Howe used one common comparable in
their approaches. The property was a sale in Dubuque and resulted in both of them
reaching a very similar conclusion of $41.70 and 41.99 per square foot for the subject
property. Using that value per square foot would result in a total assessed value of
$2,100,000.
Mr. Wentzel suggested The Adams Company was open to reaching a settlement on the
property. The Dubuque City Attorney and the Dubuque City Assessor met to discuss
the options. They came to the conclusion they should offer a settlement of $2,300,000
and agreed to settle at a value of not less than $2,200,000. The Adams Company first
offered to settle at $2,150,000, but a final settlement was reached at $2,200,000 or
roughly one half of the difference between the assessed value and The Adams
Company's appraisal. That settlement value is higher than the assessed value that
would have resulted using the one comparable that both appraisers agreed on.
In summary, the values for the property are as follows:
Board Appraisal $2,490,000
Assessed value $2,465,100
Proposed Settlement $2,200,000
Adams Appraisal $1,950,000
2
The agreed upon assessed value of $2,200,000 is $700,000 higher than the petition
filed to the Board of Review and the Property Assessment Appeal Board.
The settlement will result in a reduction in assessed value of $265,100 for the 2015
assessment year from the 2014 assessment. Total taxes for the property are $71,176
per year. The settlement will mean a total tax loss to all of the taxing bodies of $7,878
for the upcoming year from the previous year.
Pursuant to the Stipulation of Settlement, this appeal will be dismissed and the tax
assessment will be adjusted to $2,200,000 for parcel 0925427005 for the 2015
assessment year, with a land value of $952,500 and a building value of $1,247,500.
The proposed settlement will be presented to the PAAB 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 PAAB prior to that time.
If you have any questions about the proposed settlement, please contact City Assessor,
Rick Engelken at (563)-589-7800.
7Verycerely,
Lindahl, Esq.
for City of Dubuque Board of Review
Enclosure
cc: Michael C. Van Milligen, City Manager
Kevin Firnstahl, City Clerk
Rick Engelken, City Assessor
3
IOWA PROPERTY ASSESSMENT APPEAL BOARD
PAAB Docket No. 2015-104-004121
Parcel No. 925427005
The Adams Company,
Appellant,
vs.
City of Dubuque Board of Review,
Appellee.
STIPULATION OF SETTLEMENT
Appellant The Adams Company, 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. 925427005
has been settled and agreed upon as follows:
Valuation:
Land $952,500.00
Building $1,247,500.00
Total $2,200,000.00
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 day of /69/Z�YJ , 2016.
THE A� CO ANY CITAAA,.
UE BOAftD OF REVIEW
By:� � �I�2- By:
Robert Wentzel �� hl, Esq.
Alliance Property C nsu antsnc. rbor View Place
11985 Technology Drive, Suite 260 300 Main Street
Eden Prairie, MN 55344 Dubuque, IA 52001
FAUSERSItsteckleWndahllTax Appeals\Adams Company 20151Stipulationofsetuement 022316.doc
IOWA PROPERTY ASSESSMENT APPEAL BOARD
PAAB Docket No. 2015-104-004121
Parcel No. 925427005
The Adams Company,
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 after fourteen days from the date of this
Notice.
Dated this 10th day of March, 2016.
City of Dubu e Board of Review,
Appellee
By
BOy A. Lindahl, Esq., City Attorney
Suite 330, Harbor View Place
300 Main Street
Dubuque, IA 52001-6944
(563) 583-4113
FAUSERS\tsteckle\Lindahl\Tax Appeals\Adams Company 2015\NoticeOfVoluntarySettlement_031016.doc