Property Tax Appeal Settlement - Medical Associates Realty LLC Copyright 2014
City of Dubuque Consent Items # 18.
ITEM TITLE: Property Tax Appeal Settlement- Medical Associates
Realty, LLC
SUMMARY: Senior Counsel recommending approval of the Stipulation
of Settlement for a property tax appeal filed by Medical
Associates Realty, LLC for property located at 990
Langworthy Street.
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
Barry A.Lindahl,Esq. Dubuque THE C
Senior Counsel
Suite 330,Harbor View Place A�-ADUUB
300 Main Street �icaC"
Dubuque,Iowa 52001-6944
(563)583-4113 office Masterpiece on the Mississippi
(563)583-1040 fax
balesq@cityofdubuque.org 2007.2012•2013
December 9, 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: Medical Associates Realty LLC. vs. City of Dubuque Board of Review
2015 Property Tax Appeal — Docket No. 2015-104-01131C
Enclosed is a copy of the Stipulation of Settlement regarding the tax assessment appeal
filed by Medical Associates. 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.
The property is the Medical Associates property located at 990 Langworthy parcel
number 1025305014. The property sits on 5.057 acres and is a two-story brick building
with 74,520 square feet. The building is used by Medical Associates as a medical clinic.
The building has average office finish for a medical building, was built in 1972, and a
large addition was added in 1975. The assessed value for 2015 was $5,224,450 before
a 12% equalization order raised the property value to $5,851,384.
Medical Associates protested to the City of Dubuque Board of Review from the
equalization order in the Fall of 2015. Medical Associates protested that the assessed
value after the equalization order was too high because the property was not
comparable with the sales used by the Iowa Department of Revenue in setting the
equalization order, and because the property had just been reassessed during the 2014
revaluation by Vanguard Appraisals. The primary argument was that the property did
not increase 12% in value in one year following the 2014 revaluation. Medical
Associates presented information to the Board identifying each commercial sale used
by the Department of Revenue in its equalization process, and attempted to point out
the weak points for each sale, offering its own conclusions about the sales.
The Board of Review reduced the assessment from $5,851,384 to $5,642,406.
Medical Associates then filed this appeal with the Property Assessment Appeal Board.
An appraisal was completed for the Board of Review by Bob Felderman of Felderman
Appraisals, Dubuque. Mr. Felderman arrived at a value of $5,664,000 using the three
approaches to value for cost, income, and market comparison. Mr. Felderman offered a
range of values between $5,524,000 and $5,798,000 using these three approaches.
The Board of Review, after reviewing the Felderman appraisal, and weighing the
potential risks of a hearing before the Property Assessment Appeal Board, proposed a
settlement to reduce the assessed value to $5,537,917. A final agreement was reached
with Medical Associates for an assessed value of $5,511,794 for 2015. This value is
$287,344 above the 2014 assessed value but does represent a reduction of $130,612
from the 2015 assessed value after the Board of Review's original decision on the
equalization protest. This settlement will mean a total tax loss to all of the taxing bodies
of $3,998 for the 2015 assessment year.
Pursuant to the Stipulation of Settlement, this appeal will be dismissed and the
assessed value will be adjusted to $5,511,794 for parcel 1025305014 for the 2015
assessment year as follows: land value of $705,078, building value of $4,806,716. 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,
Barry A. Lindahl, Esq.
Senior Counsel
Enclosure
cc: Michael C. Van Milligen, City Manager
Kevin Firnstahl, City Clerk
Rick Engelken, City Assessor
IOWA PROPERTY ASSESSMENT APPEAL BOARD
PAAB Docket No. 2015-104-01131C
Parcel No. 10-25-305-014
MEDICAL ASSOCIATES REALTY, LLC,
Appellant,
vs.
CITY OF DUBUQUE BOARD OF REVIEW,
Appellee.
STIPULATION OF SETTLEMENT
Appellant Medical Associates Realty, LLC, 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. 10-25-305-014
has been settled and agreed upon as follows:
Valuation:
Land $705,078
Building $4,806,716
Total $5,511,794
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 2016.
MEDICAL ASSOCIATES REALTY, CITY OF DUBUQUE BOARD OF REVIEW
LLC
By / By:
a u I J. S ig'Wa pG(t S4.V 94�-r4. doili, . ,i��d w1CZ�i�VU'YI i.->Q �
O'CONN, HOMAS, PC Suite 330, Harbor View Place
1000 Main Street 300 Main Street
Dubuque, IA 52001 Dubuque, IA 52001
IOWA PROPERTY ASSESSMENT APPEAL BOARD
PAAB Docket No. 2015-104-01131C
Parcel No. 10-25-305-014
MEDICAL ASSOCIATES REALTY, LLC,
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 8t" day of December, 2016.
City of Dubuque Board of Review,
Appellee
Barry A. Lindahl, Esq., Senior Counsel
Suite 330, Harbor View Place
300 Main Street
Dubuque, IA 52001-6944
(563) 583-4113