Fiscal Note
The proposed resolution authorizes a $317,825.43 total tax refund pursuant to a settlement agreement and approves payment of $129,025.52 from City resources to represent the City’s share of the settlement. The subject properties are East Towne and West Towne malls in the City of Madison. The city's share of the refund will be paid through a reduction in property tax revenue budgeted in the 2021 Adopted Operating Budget. Other taxing jurisdictions (Dane County, Madison Metropolitan School District and Madison College) will pay their respective shares of the refund. If approved by the Wisconsin Department of Revenue, tax refunds can be recovered through levy limit adjustments.
Title
Resolution authorizing the settlement and payment of a tax refund for tax years 2019 and 2020 for Madison Joint Venture LLC #500 v. City of Madison, Dane County Circuit Court Case number 2020CV001071. Authorizing entry into settlement agreement and approving payment of approximately $317,825.43 from City resources to effectuate the settlement, $129,025.52 represents the City’s approximate portion of the settlement.
Body
Background
The subject properties are East Towne and West Towne Malls, parcel numbers 0708-261-0098-8 and 0810-273-0096-2. For both tax years 2019 and 2020, the subject properties experienced declining tenants and reduction of sales as a result of increased on-line shopping and closures related to the COVID-19 pandemic. The City set the assessments and the Board of Review sustained the assessments based on the best and current available information available. The Claimant brought suit in Dane County Circuit Court pursuant to Wis. Stat. § 74.37 as a claim for excessive assessment for both tax years 2019 and 2020.
Settlement
Based on the additional appraisal and income and expenses submitted to the City for both malls and tax years 2019 and 2020, it is appropriate therefore to reduce the 2019 and 2020 assessed values of both East Towne and West...
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