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File #: 39936    Version: Name: Approving a Settlement of Outstanding Property Tax Litigation with Attic Angel Prairie Point and Authorizing a Refund of $2,703,425
Type: Resolution Status: Passed
File created: 8/26/2015 In control: BOARD OF ESTIMATES (ended 4/2017)
On agenda: 9/1/2015 Final action: 9/15/2015
Enactment date: 9/21/2015 Enactment #: RES-15-00777
Title: Approving a settlement of outstanding property tax litigation with Attic Angel Prairie Point, authorizing a refund of $2,703,435 to pay the tax refunds due, authorizing the City Attorney to sign the settlement agreement, and authorizing the Mayor and City Clerk to sign an Agreement with Attic Angel Prairie Point for the future payment for municipal services to the City.
Sponsors: Paul R. Soglin
Attachments: 1. Settlement Agreement, 2. Attic Angels 2015 PILOT Methodology -- 7-9-15, 3. 39936 v1.pdf
Fiscal Note
This resolution approves a settlement of outstanding property tax litigation with Attic Angels Prairie Point (AAPP). The City will refund $2,703,435 to AAPP for taxes paid in 2011 through 2014. The refund for tax year 2010 had already been paid into escrow by the City as part of a previous agreement to stop the accrual of interest costs. In response to the Appeals Court ruling against the City in early 2015, the 2011 through 2013 tax refund amounts were reflected in the City's 2014 financial statements. The City's share of the refund of 2014 taxes (paid in 2015) is $268,185, and will reduce estimated revenues in the 2015 budget by that amount.

The settlement waives payment of interest costs by the City of over $500,000 (which are solely the City's responsibility and would have been appropriated from the Contingent Reserve in the 2015 adopted budget). In addition, AAPP agrees to make a $175,000 payment for prior year payment-in-lieu of taxes (PILOT), and has agreed to make a voluntary PILOT of approximately $106,000 annually in future years, based on a per unit cost of certain City services to the development.

As the jurisdiction responsible for collecting all property taxes, the City will pay the entire refund and be reimbursed by the other taxing jurisdictions in the following proportions:

Madison School District: $1,198,718
Dane County: $305,773
MATC: $172,463
State of Wisconsin: $18,634

Payment of the refund prior to September 30, 2015, will allow the City to reflect the total amount of its refund over the previous four years in its levy limit calculation for 2016.


Title
Approving a settlement of outstanding property tax litigation with Attic Angel Prairie Point, authorizing a refund of $2,703,435 to pay the tax refunds due, authorizing the City Attorney to sign the settlement agreement, and authorizing the Mayor and City Clerk to sign an Agreement with Attic Angel Prairie Point for the future payment for municipal s...

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