Fiscal Note
The proposed resolution authorizes a $76,036 total tax refund pursuant to a settlement agreement and approves payment of $30,360 from City resources to represent the City’s share of the settlement. The subject property is located at 1255 Fourier Drive. 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 year 2023 for 1255 Fourier LLC v. City of Madison, Dane County Circuit Court Case number 2024CV001488. Authorizing entry into settlement agreement and approving payment of approximately $76,036.22 from City resources to effectuate the settlement, $30,360.03 represents the City’s approximate portion of the settlement. (District 9)
Body
Background
The subject property is an office building with 129,782 square feet of rentable space which completed construction around 2018. Sauk Trails Plaza II, tax parcel number 0708-151-0310-9 located at 1255 Fourier Drive. The subject property is in excellent condition and is located in one of the most desirable office parks in the City of Madison. The assessment of this property was challenging given the effect of the pandemic and increase in remote working causing volatility in the demand for office space. The unique attributes and lack of comparable properties within the City of Madison required reliance on comparable properties from other jurisdictions where the comparable properties have higher vacancy rates, impacting the assessed value of the subject property.
The City set the assessment and the Board of Review sustained the assessment based on the best information practicably available at the time. The ...
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