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SpU TN BF <br />04 ,�••1�'�i�i,i��, 4O <br />\\ � <br />�� 2 <br />Department of <br />y <br />Community <br />R R <br />7865 <br />Investment <br />Memorandum <br />December 12, 2013 <br />TO: South Bend Redevelopment Commission <br />FROM: David Relos, Economic Resources <br />SUBJECT: Hotel La Salle Property Tax Appeal and Professional Services Agreement <br />R.E. Pitts & Associates Property Tax Appeal Appraisal <br />This staff report is for approval to move forward with a property tax appeal for the Hotel <br />La Salle. Though the Hotel does not currently pay taxes because of its government <br />ownership, it does have a current assessed value (AV) of $807,100 ($33,400 land + <br />$773,700 improvements). <br />In 2005, when the Hotel was taken through the disposition process, the average <br />appraised value was $400,500. Lowering the AV to be more in line with its market <br />value will assist the proposed developer in their property tax abatement, since the <br />abatement is based on the property's current AV. <br />Additionally, similar to the process we followed for the Hall of Fame tax appeal, Rick <br />Pitts, a MAI Certified Indiana Appraiser, has provided a Professional Services <br />Agreement to provide a Value In Use appraisal for the Hotel. This type of appraisal will <br />be needed for the property tax appeal if our initial request to lower the AV is denied. <br />Also included is a per hour charge to prepare for and appear before the Appeals Board. <br />This proposal will be utilized only if needed. <br />Value In Use is defined by the Real Property Assessment Manual as: <br />"The value of property for a specified use. The concept holds value to be <br />inherent in property itself, that is, the value is based on the ability of the asset to <br />produce revenue or utility through ownership. The value a specific property has <br />for a specific use." <br />Since the appeal would be for the 2013 pay 2014 taxes, the appraisal will value the <br />property as of its March 1, 2013 assessment date. <br />Staff requests approval to move forward with this tax appeal, and if necessary, to utilize <br />this Professional Services Agreement in the amount of $4,300 for the appraisal, and <br />$165 / hour to prepare and appear before the Appeals Board. <br />227 W. JEFFERSON BLVD. SOUTH BEND, IN 46601 1 P: 574 - 235 -93/1 1 FAX: b/4- 2.30 -`JU21 I ouuinocivum.uuv <br />