Property Tax Appeal Settlement for Nordstrom, Inc. Copyright 2014
City of Dubuque Consent Items # 17.
ITEM TITLE: Property Tax Appeal Settlement for Nordstrom, Inc.
SUMMARY: Senior Counsel recommending approval of the Stipulations
of Settlement regarding property tax assessment appeals
filed by Nordstrom, Inc., for property at 5050 Chavenelle
Road.
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Approve
ATTACHMENTS:
Description Type
Staff Memo Staff Memo
2015 Stipulation of Settlement Supporting Documentation
2015 Notice of Voluntary Settlement Supporting Documentation
2016 Stipulation of Settlement Supporting Documentation
2016 Notice of Voluntary Settlement Supporting Documentation
Bury A.Lindatil,Esq. DubuTH
lle E CITY OF
senior Coactq
Suite 330,Harbor View Place 'Y'� � ���
300 Main Street N
Dubuque,Iowa 52001-6944
(563)583-4113 office Masterpiece on the Mississippi
(563)583-1040 fax
balesq@c2tyofd�buque.ocg MW•=2.2av
October 14, 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: Nordstrom, Inc. vs. City of Dubuque Board of Review
2015 and 2016 Property Tax Appeals
Property Assessment Appeal Board Docket Nos. 2015-104-01132C and
2016-104-00062C
Enclosed are copies of the Stipulations of Settlement regarding tax assessment appeals
filed by Nordstrom, Inc. filed with the Property Assessment Appeal Board. Iowa Code
441.44 requires that the Stipulations of Settlement be served upon each of you.
There is one property which is the subject of these appeals. However, there are two
appeals. One appeal is from the 2015 equalization order which effected the January 1,
2015 assessed value. The other appeal is from the January 1, 2016 assessed value.
The Nordstrom Property
The property which is the subject of these two appeals is the Nordstrom property
located at 5050 Chavenelle Road, parcel number 1029300009. The property sits on
29.95 acres and has a one-story concrete tilt-up steel frame building with 477,474
square feet. It also has a one-story metal/steel unfinished warehouse area totaling 300
square feet. The building is used by Nordstrom as a distribution center. The building has
minimal finish except the office area, no ceiling finish and a concrete floor. The building
was built in 1991 and a large addition was added in 1996.
2015 Equalization Order Appeal
The assessed value for the Nordstrom property for January 1, 2015 was $15,559,430.
Nordstrom protested the assessed value of $15,559,430 to the City of Dubuque Board
of Review in the Spring of 2015 on the ground that the assessed value exceeded the
fair market value of the property, claiming the fair market value was $11,968,850.
Nordstrom based the protest on a uniformity analysis and some sales of properties that
Nordstrom claimed to be comparable properties.
The Board of Review rejected Nordstrom's protest, leaving the 2015 assessed value at
$15,559,430.
Nordstrom did not appeal from the denial of the protest. However, in the Fall of 2015, a
12% equalization order was placed on all commercial property in the City of Dubuque
by the Iowa Department of Revenue, raising the 2015 assessed value of the Nordstrom
property to $17,426,562. Nordstrom filed a protest with the Board of Review asking that
the value after the equalization order be reduced. The Board reduced the 2015
assessed value from $17,426,562 to $16,492,995. Nordstrom appealed from that
decision to the Property Assessment Appeal Board (PAAB). That appeal is one of the
two Nordstrom appeals which is the subject of this memorandum.
2016 Assessment Appeal
Nordstrom also filed an appeal with the Board of Review in the Spring of 2016 to reduce
the January 1, 2016 assessed value from $16,530,233 to $11,900,000. (The 2015
assessed value of $16,492,995 was increased on January 1, 2016 due to new
construction of a mezzanine in 2015). The Board of Review denied the protest.
Nordstrom then appealed from that decision to PAAB. That is the second appeal which
is the subject of this memorandum.
The Appraisals
An appraisal was completed for Nordstrom by Ted Frandson of Frandson and
Associates L.C. of Des Moines Iowa. Frandson reached a value conclusion of
$13,400,000 for January 1, 2015.
Tom Howe completed an appraisal for the Board of Review and reached a value
conclusion of$13,600,000 for January 1, 2015.
2
The Proposed Settlement
The City of Dubuque Board of Review and Nordstrom have reached a tentative
settlement for an assessment value of $15,559,430 for January 1, 2015. The 2015
value is almost $2,000,000 above the appraisal performed for the Board of Review for
the post-equalization order value.
The tentative settlement is $14,800,000 for January 1, 2016, which is $1,200,000 above
the appraisal performed for the Board of Review for the January 1, 2016 value.
The settlement will result in a reduction in assessed value of $933,565 for the 2015
assessment year. The 2015 value will remain the same as the 2014 value. The
settlement will mean a tax loss of $28,576 for the 2015 assessment year from the
previous 2015 assessment. The tax loss will be $23,246 for the 2016 assessment year
as compared with the 2015 assessment.
Pursuant to the Stipulation of Settlement, these appeals will be dismissed and the
assessed value will be adjusted to $15,559,430 for parcel 1029300009 for January 1,
2015. The assessed value will be reduced to $14,800,000 for January 1, 2016.
The value for 2015 will be apportioned as follows: land value of $1,560,940 and the
building value of$13,998,490 for a total of$15,559,430.
The 2016 value will be apportioned as follows: land value of $1,560,940 and
$13,239,060 for a total of $14,800,000.
The proposed settlements 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 settlements, please contact City
Assessor, Rick Engelken at (563)-589-7800.
Very si rely,
B ry A. Lindahl, Esq.
Senior Counsel
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. 2015-104.01132C
Parcel No, 10-29-300.009
NORDSTROM, INC.,
Appellant,
VS.
CITY OF DUBUQUE BOARD OF REVIEW,
Appellee,
STIPULATION OF SETTLEMENT
Appellant Nordstrom, Inc., 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. 10-29-300.009
has been settled and agreed upon as follows:
Valuation:
Land $1,560,940
Building $13,998,490
Total $15,559,430
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 L day of 6 C 107-6 (— . 2016.
NORDSTROM, INC. Q CITY OF DU QUE BOARD OF REVIEW
By: �. By, ~
Deborah M. Tharnis t, Esq. B rry A. Lindahl, Esq,
DAVIS BROWN LAW FRIM ita 330, Harbor View Place
The Davis Brown Tower
215 10th Street, Suite 1300 00 Main Street
Des Moines, IA 50309 Dubuque, IA 52001
IOWA PROPERTY ASSESSMENT APPEAL BOARD
PAAB Docket No. 2015-104-01132C
Parcel No. 10-29-300-009
NORDSTROM, INC.,
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 no sooner than fourteen days from the
date of this Notice.
Dated this 141'day of October, 2016.
City of Dubuque Board of Review,
Appellee
By
arty A. Lindahl, Esq., City Attorney
Suite 330, Harbor View Place
300 Main Street
Dubuque, IA 52001-6944
(563) 583-4113
IOWA PROPERTY ASSESSMENT APPEAL BOARD
PAAB Docket No. 2016.104.00062C
Parcel No. 10-29-300.009
NORDSTROM, INC.,
Appellant,
vs.
CITY OF DUBUQUE BOARD OF REVIEW,
Appellee.
STIPULATION OF SETTLEMENT
Appellant Nordstrom, Inc., 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, 2016:
Parcel No. 10-29-300-009
has been settled and agreed upon as follows:
Valuation:
Land $1,560,940
Building $13,239,060
Total $14,600,000
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_eday of ocl',� �'�'r- , 2016.
NORDSTROM,
,IINC.
I\I CITADUQUE OF BOARD OF REVIEW
By: 1. 1V` O`-'--�' By:Deborah M. Tharnish, Esq. Esq.
DAVIS BROWN LAW FRIM r View Place
The Davis Brown Tower 300 Main Street
21510th Street, Suite 1300 Dubuque, IA 52001
Des Moines, IA 50309
IOWA PROPERTY ASSESSMENT APPEAL BOARD
PAAB Docket No. 2016-104-00062C
Parcel No. 10-29-300.009
NORDSTROM, INC.,
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 no sooner than fourteen days from the
date of this Notice.
Dated this 14th day of October, 2016.
City of Du ue Board of Review,
Appelle
By
Barry A. Lindahl, Esq., City Attorney
Suite 330, Harbor View Place
300 Main Street
Dubuque, ]A 52001-6944
(563) 583-4113