Fiscal Note
The proposed resolution authorizes a $217,168 total tax refund pursuant to a settlement agreement and approves payment of $81,606 from City resources to represent the City’s share of the settlement. The subject property is located at 4750 S. Biltmore Lane. The city's share of the refund will be paid through a reduction in property tax revenue budgeted in the 2025 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
Authorizing the settlement and payment of a tax refund for tax years 2022 and 2023 for SLJ-II LLC v. City of Madison, Dane County Circuit Court Case number 2023CV001685. Authorizing entry into settlement agreement and approving payment of approximately $217,168 from City resources to effectuate the settlement, $81,606 represents the City’s approximate portion of the settlement for both tax years. (District 17)
Body
Background
The subject property is a custom-built facility for the headquarters of a single tenant. Fairway Mortgage, tax parcel number 0810-221-0607-6 located at 4750 S. Biltmore Lane. The subject property is an anomaly for Madison as it contains four floors with high end amenities and is considered a premium office space. The assessment of this property was particularly challenging given the limited information and unique nature of the property.
The City set the assessments and the Board of Review sustained the assessments based on the best and current available information available at the time with limited sales that were comparable to the property in close proximity. The property owner brought suit in Dane County Circuit Court pursuant to Wis. Stat. § 74.37 as a claim for excessive assessment for both tax years 2022 and 2023. Both parties hired experts to conduct retroactive appraisals ...
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