Fiscal Note
The proposed resolution authorizes a $57,969.33 total tax refund pursuant to a settlement agreement and approves payment of $22,456.33 from City resources to represent the City’s share of the settlement. The subject property is a hotel located at 4402 East Washington Avenue in the City of Madison. The City’s share of the refund will be paid through a reduction in property tax revenue budgeted in the 2021 Adopted Operating Budget.
Title
Authorizing the settlement and payment of a tax refund for tax year 2019 for RSS WFCM2013LC12-WI CPM, LLC vs. City of Madison, Dane County Circuit Court Case number 2020CV001286. Authorizing entry into settlement agreement and approving payment of approximately $57,969.33 from City resources to effectuate the settlement $22,456.33 represents the City’s approximate portion of the settlement.
Body
Background
The subject property, parcel number 0810-284-0110-7 located at 4402 East Washington Avenue, which is now the DoubleTree by Hilton at Madison East. For tax year 2019, the property was in receivership in Dane County and was sold to RSS WFCM2013LC12-WI CPM, LLC ("RSS") in March, 2019. With no other data available, the City assessed the subject property at the sale price of $9,500,000. The City Board of Review reduced the assessment to $9,070,000. As a result, this suit was brought in Dane County Circuit Court pursuant to Wis. Stat. § 74.37 as a claim for excessive assessment.
Subsequently, the subject property sold for $6,500,000 in February, 2020 to Madison East DBL Lodging Investors, LLC. This sale price represents an arm’s length transaction that is indicative of fair market value. The Plaintiff in this matter is the owner at the time of the assessment and prior to the 2020 sale.
Settlement
Based on the additional sale information supplied to the City for the 2020 assessment, it is appropriate therefore to reduce the 2019 assessed value to the sale of the subject $6,500,000. The 2020 assessment is also ...
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