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File #:
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22-188
Version:
1
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Name:
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Type:
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Resolution
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Status:
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Approved
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On agenda:
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6/14/2022
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Final action:
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6/14/2022
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Title:
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Communication from the City Manager and Interim Corporation Counsel with a Request to APPROVE a RESOLUTION Authorizing Intervention in a Pending PROPERTY TAX ASSESSMENT APPEAL, Before the Illinois Property Tax Appeal Board (BEST BUY #207, 5001 N. BIG HOLLOW ROAD, PEORIA, IL).
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ACTION REQUESTED:
Title
Communication from the City Manager and Interim Corporation Counsel with a Request to APPROVE a RESOLUTION Authorizing Intervention in a Pending PROPERTY TAX ASSESSMENT APPEAL, Before the Illinois Property Tax Appeal Board (BEST BUY #207, 5001 N. BIG HOLLOW ROAD, PEORIA, IL).
Body
BACKGROUND: Premiere Real Property, LLC, owner of Best Buy Store No. 207 at 5001 N. Big Hollow Road, filed an appeal of the 2021 property tax assessment claiming that the assessment should be reduced from $1,178,200.00 to $599,940.00. As in background on this property, between 2003 and 2019, this parcel averaged a net taxable value of $1,049,957.65. That yielded an average total tax in the same timeframe of $93,678.39. This resulted in the City’s portion of the overall real estate tax liability averaging $10,552.83 per year.
In 2020, parcel #14-19-151-070 (an almost 9 acre parcel where the Best Buy store is located) was actually split into two parcels. Parcel #14-19-151-071 contains 3.82 acres and is owned by Glen Hollow, LLC. Parcel #14-19-151-072 is 5.922 acres and is owned by Premier Real Property, LLC. For the smaller parcel, owned by Glen Hollow, LLC, the net taxable value in 2020 was $4,990.00 which yielded a total tax of $500.02 with the City’s portion being $55.87.
For the larger parcel, owned by Premiere Real Property, LLC, the net taxable value in 2020 was $1,318,540.00 with the total tax liability of $132,119.96 with the City’s portion being equal to $14,761.98.
For 2021, the assessed net taxable value on the larger parcel owned by Premier Real Property, LLC, has been reduced to $1,178,200.00 and the total tax liability reduced from $132,000 to $117,000. This will reduce the City’s portion of the real estate taxes to approximately $13,256.52.
Earlier this year, Premier Real Property, LLC filed an appeal with PTAB alleging that the larger parcel should have a net taxable value of $599,940.00. This would result in tax liability of approximately $60,115.01 with the City’s portion being $6,716.75. In effect, this cuts the City’s property taxes on this parcel by 50%.
On March 23, 2022, the larger parcel was sold from American Textile Systems, LLC to Premier Real Property, LLC. The sale price is listed as $7,970,000. On the same date, Premier Real Property, LLC took out a mortgage from Busey Bank for this location in the amount of $12,752,000. There is nothing in the tax records or in the chain of title that would immediately substantiate a 50% reduction in the assessed value. We have requested a copy of the appraisal that was filed with PTAB and will review upon receipt.
Additional financial analysis of the parcels in question are as follows:
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Parcel Number |
14-19-151-070 |
9.750 acres |
GLEN HOLLOW LLC |
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Tax Year |
Net Taxable Value |
Total Tax |
City's Tax |
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2003 |
$ 382,460.00 |
$ 30,495.08 |
$ 3,746.20 |
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2004 |
$ 1,166,670.00 |
$ 94,984.44 |
$ 11,272.37 |
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2005 |
$ 1,166,670.00 |
$ 97,259.68 |
$ 11,042.06 |
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2006 |
$ 1,134,560.00 |
$ 94,836.18 |
$ 10,692.66 |
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2007 |
$ 1,111,920.00 |
$ 91,477.22 |
$ 10,385.22 |
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2008 |
$ 1,161,840.00 |
$ 97,669.74 |
$ 11,001.23 |
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2009 |
$ 1,111,920.00 |
$ 97,346.82 |
$ 11,091.74 |
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2010 |
$ 1,135,830.00 |
$ 99,810.28 |
$ 10,906.47 |
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2011 |
$ 1,170,650.00 |
$ 103,587.20 |
$ 11,348.40 |
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2012 |
$ 1,148,400.00 |
$ 102,844.86 |
$ 11,046.34 |
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2013 |
$ 1,131,180.00 |
$ 102,886.02 |
$ 10,929.23 |
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2014 |
$ 1,131,180.00 |
$ 104,128.86 |
$ 10,819.85 |
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2015 |
$ 935,000.00 |
$ 89,379.18 |
$ 10,492.85 |
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2016 |
$ 935,000.00 |
$ 89,466.32 |
$ 10,482.00 |
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2017 |
$ 935,000.00 |
$ 90,137.38 |
$ 10,497.71 |
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2018 |
$ 935,000.00 |
$ 91,060.30 |
$ 10,629.36 |
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2019 |
$ 1,156,000.00 |
$ 115,163.04 |
$ 13,014.36 |
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2020 - Parcel Split |
$ 1,049,957.65 |
$ 93,678.39 |
$ 10,552.83 |
average |
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Parcel Number |
14-19-151-071 |
3.8280 acres |
GLEN HOLLOW LLC |
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Tax Year |
Net Taxable Value |
Total Tax |
City's Tax |
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2020 |
$ 4,990.00 |
$ 500.02 |
$ 55.87 |
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2021 |
$ 4,990.00 |
$ 496.08 |
$ 56.14 |
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Parcel Number |
14-19-151-072 |
5.922 |
PREMIERE REAL PROPERTY LLC |
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Tax Year |
Net Taxable Value |
Total Tax |
City's Tax |
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2020 |
$ 1,318,540.00 |
$ 132,119.96 |
$ 14,761.98 |
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2021 |
$ 1,178,200.00 |
$ 117,131.12 |
$ 13,256.52 |
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Appeal |
14-19-151-071 |
5.922 |
PREMIERE REAL PROPERTY LLC |
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2021 |
$599,940.00 |
$60,115.01 |
$6,716.75 |
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Reduction from 2021 assessment |
$578,260.00 |
$57,016.11 |
$6,539.77 |
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We respectfully request that the Council authorize the Resolution allowing the Legal Department to intervene in this matter to protect the City’s financial interest in these real estate taxes.
FINANCIAL IMPACT: Approximately $6,500 annually.
NEIGHBORHOOD CONCERNS: N/A
IMPACT IF APPROVED: City Legal Department will intervene in the PTAB appeal filed by Best Buy Store #207.
IMPACT IF DENIED: The City Legal Department will not intervene in the PTAB tax appeal filed by Best Buy Store #207
ALTERNATIVES: N/A
EEO CERTIFICATION NUMBER: N/A
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL’S 2017 - 2032 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Financially Sound City
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Keep taxes and fees competitive.
DEPARTMENT: Legal
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