Fiscal Note
This resolution authorizes a tax refund pursuant to a settlement agreement. The properties are located in Tax Increment District (TID) 42 and the refund will be paid through a reduction in revenue of $33,908.19 to that TID.
Title
SUBSTITUTE - Authorizing the settlement and payment of a tax refund for tax year 2016 for Peloton Residences, LLC v. City of Madison, Dane County Circuit Court Case number 17CV1416. Authorizing entry into settlement agreement and approving payment of $33,908.19 from City resources to effectuate the settlement. $13,099.96 represents the City’s estimated portion of the settlement.
Body
Background
The subject properties consist of two vacant parcels located at 1004 and 1032 S Park Street in the City of Madison. The properties were sold in 2015, property 1 (1004 S Park Street) had a sale price of $1,113,000 and Property 2 (1032 S Park Street) had a sale price of $2,370,500. Subsequently the 2016 assessments of the two parcels were set at their respective sale prices. Peloton Residences filed an objection with the Board of Review, which was sustained and subsequently brought this suit.
After bringing this suit, Peloton Residences informed the City Assessor’s Office that the sales price of the subject properties was not a reliable indicator of value as of January 1 2016, because as the owner began the process to develop the properties his original plan was not approved and the subsequent plan required additional contamination clean-up costs and the overall useable square footage of the properties was reduced.
Settlement
Based on the additional information the assessor re-calculated the 2016 assessments of the subject properties and came to a value for property 1 of $661,000 and property 2 of $1,408,000. This would result in a total refund for both properties of $33,908.19. The parties have reached this tentative settlement based on the recalculated assessment. This resolution seeks approval of the settlement...
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