Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.

Kohl's Department Stores, Inc. v. County of Washington

Supreme Court of Minnesota

August 7, 2013

Kohl's Department Stores, Inc., Relator,
v.
County of Washington, Respondent.

Office of Appellate Courts Tax Court

Thomas R. Wilhelmy, Judy S. Engel, Fredrikson & Byron, P.A., Minneapolis, Minnesota, for relator.

Pete Orput, Washington County Attorney, James Zuleger, Assistant County Attorney, Stillwater, Minnesota, for respondent.

SYLLABUS

Because the relator has failed to meet its burden of demonstrating that the tax court's capitalization rate and calculation of market rent were clearly erroneous, we affirm.

Affirmed.

Considered and decided by the court without oral argument.

OPINION

ANDERSON, Justice.

Relator Kohl's Department Stores, Inc., challenged respondent Washington County's assessment of the value of one of its properties. On appeal from the tax court, Kohl's now argues that (1) the tax court erred by failing to adjust its capitalization rate to account for the property taxes paid by the owner on vacant space and for the neighborhood's excessive vacancy and perceived blight; and (2) the tax court erred by calculating the property's fair market rent using comparable leases rather than a percentage of retail sales method. Because we conclude that the relator has failed to meet its burden of demonstrating that the tax court's capitalization rate and calculation of market rent were clearly erroneous, we affirm.

I.

This case involves a challenge by Kohl's to the County's assessment of the value of one of its department stores for tax years 2007 to 2009. The store in question is located at 7990 Hardwood Avenue South in Cottage Grove, and its construction was completed in 2004. During 2008, an approximately 49, 100-square-foot portion of the property (the "Culver's Outlot") was sold. The parties agree that the fair market value of the Culver's Outlot was $700, 000 for both 2007 and 2008.

The relator challenged the respondent's valuation in the Minnesota Tax Court. Each party introduced an expert appraisal. Relator's expert was Michael F. Amundson, MAI, CCIM, MRICS, of Integra Realty Resources. Respondent's expert was Robin Swanson, AMA. Amundson conducted income capitalization, cost, and sales comparison approach analyses as part of his appraisal, while Swanson conducted income capitalization and cost approach analyses, though she gave the most weight to the income approach. The tax court also found that Swanson "considered but did not rely on a sales approach due to a lack of sufficient sales data."

The valuations of the initial county assessor, the opposing experts, and the tax court were as follows:

County Assessment

Relator’s Expert

County Expert

Initial Tax Court

Amended Tax Court

2007

$6, 322, 200

$5, 600, 000

$8, 038, 000

$6, 977, 800

$6, 834, 700

2008

$6, 455, 300

$5, 400, 000

$8, 038, 000

$6, 977, 800

$6, 834, 700

2009

$6, 455, 300

$4, 450, 000

$7, 338, 000

$5, 908, 500

$5, 773, 900


Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.