Fiscal Note
This resolution authorizes the City, pursuant to the proposed settlement agreement, to make a payment of $27,500 to Greentree Glen, LLC and Midwest Affordable Housing Corp. as a refund of tax overpayments originally made to all taxing jurisdictions for tax year 2008. The City’s share of the tax overpayments, $10,239, must be budgeted as an expenditure in 2010. The remaining $17,261 will be recognized as a receivable from the other taxing jurisdictions and is expected to be repaid to the City in 2011 in accordance with Wisconsin Department of Revenue procedures governing such property tax adjustments.
Title
Approving settlement of tax refund litigation with Greentree Glen, LLC and Midwest Affordable Housing Corp. for 2008, authorizing a refund in the amount of $27,500.00 (without interest) from $71,922.54 paid in real property taxes for 2008, pursuant to Greentree Glen, LLC and Midwest Affordable Housing Corp. v. City of Madison, Case No. 09CV3791, and amending the 2010 Operating Budget to appropriate $10,239 from Contingent Reserve, to recognize the City's share of settlement costs.
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BACKGROUND
The City of Madison was sued by Greentree Glen, LLC and Midwest Affordable Housing Corp. (“Greentree Glen”) for unlawful tax, claiming the apartments they own located at 732 Struck Street in the City of Madison are exempt from taxation. This apartment complex primarily consists of elderly residents. The City Assessor’s Office has denied the property tax exemption for this location since 2006. Two previous lawsuits with Greentree Glen Case Nos. 08CV2514 and 07CV2749 were dismissed by stipulation. Our position has been that Greentree Glen does not meet the requirement of “benevolence” under the law and does not use the leasehold income (rent) for maintenance of the leased property, or reduction of construction debt of the property, or both as required under the exemption statute.
THE PROPOSED SETTLEMENT
The City of Madison and Greentree Glen have te...
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