Fiscal Note
The proposed resolution authorizes a $193,448.21 tax refund pursuant to a settlement agreement. The subject properties consist of property at 437 N. Frances Street in the City of Madison. The refund will be paid through a reduction in property tax revenue budgeted in the 2019 Adopted Operating Budget. The City's share of the refund is $77,284.33. The entire refund will be paid by the City and the non-city portion will be recovered from the other affected taxing jurisdictions (school district, county and technical college district).
Title
Authorizing the settlement and payment of a tax refund for tax year 2017 for Core Campus Madison, LLC. v. City of Madison, Dane County Circuit Court Case number 18CV1717. Authorizing entry into settlement agreement and approving payment of approximately $193,448.21 from City resources to effectuate the settlement. $77,284.43 represents the City’s approximate portion of the settlement.
Body
Background
The subject property, parcel number 0709-232-0222-3 is newer large multi-family apartment complex located at 437 N. Frances in the City of Madison, known as the HUB. For tax year 2017, the City assessed the subject property at $115,890,000 and the City Board of Assessors reduced the value to $97,320,000. Core Campus filed an objection. The assessment was sustained by the Board of Review. As a result, this suit was brought.
Subsequently, Core Campus produced the actual lease income and occupancy rates (as of January 1, 2017), significant tenant improvement allowances, and the City used more recent and accurate sales comparables to reduce the assessed value of subject property to $89,500,000 for tax year 2018.
Settlement
Based on the additional and accurate information supplied to the City for the 2017 and 2018 assessments it is appropriate therefore, to reduce the 2017 assessed value to $89,028,000, which reflects a slightly lower value than 2018 because as of January 1, 2017 the property was less occup...
Click here for full text