Fiscal Note
The proposed resolution authorizes an $85,305 total tax refund pursuant to a settlement agreement and approves payment of $33,833 from City resources to represent the City’s share of the settlement. The subject property is located at 4601 Frey Street Unit 400. The city's share of the refund will be paid through a reduction in property tax revenue budgeted in the 2026 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 year 2023 and 2024 for Frey Street Office, LLC v. City of Madison, Dane County Circuit Court Case number 2024CV001804. Authorizing entry into settlement agreement and approving payment of approximately $85,304.80 from City resources to effectuate the settlement, $33,833.42 represents the City’s approximate portion of the settlement. (District 11)
Body
Background
The subject property is an office condominium unit within the Springhill Suites Hotel located at 4601 Frey Street Unit 400, parcel number 0709-202-2302-4. The Subject Property is 22,830 square feet of built-to-suit rented space on the 4th floor of the hotel serving as office space for the Raymond Management Company which develops hotel properties throughout the United States. The subject property includes conference space, designated parking and a patio area completed in 2018.
The subject property is in excellent condition and is located in one of the most desirable office areas near Hilldale Mall in the City of Madison. The assessment of this property was challenging given the built-to-suit space for a condominium office located within a full-service hotel. The unique attributes and lack of comparable properties within the City of Madison required reliance on comparable proper...
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