Alpena mall’s cash value set at $5.2 million
Sean HarkinsArticle Photos
By SEAN HARKINS
News Staff Writer
Alpena Township and the Alpena Mall have reached an agreement after the mall contested its taxable value.
The true cash value of the mall was set by the township at $5.2 million. Alpena Township Assessor Kris Lewis said the mall had a market analysis done by a company that buys and sells malls, and it showed the mall could have sold for $2.4-$2.8 million.
An appraisal paid for by the mall showed the property to be valued at $2.4 million, Lewis said.
In the end, the parties agreed to have the true cash value reduced to $2.85 million. The compromise was accepted by the state tax tribunal, which would have heard the case had the deal not been reached.
Alpena County Treasurer Joelyn McCallum said the mall's initial proposal to the tribunal would have resulted in a $1,184,800 reduction in the property's taxable value, resulting in a loss of $48,050 to local government - which includes Alpena County, Alpena Township, and any entities affected by millages.
The exact impact on those agencies after the compromise was reached had not been calculated, but would be slightly less than originally anticipated.
Lewis said settling the case before going to the tribunal was the right thing to do. He said the tribunal favors properties that rely on leasing in this economy, and the settlement could have been for less than the $2.85 million agreed upon.
"It just reflects what the commercial market is doing," he said.
Additionally, he said tribunal cases can cost $20,000-$30,000 after paying for a professional appraiser and legal fees.
Lewis said it has historically been uncommon for commercial properties to contest their assessments, but things have been changing with the economic climate.
"Down the line if the economy doesn't change we're going to see a lot more commercial properties going to the tribunal," he said.
Representatives from the Alpena Mall could not be reached for this article.
Sean Harkins can be reached via e-mail at sharkins@thealpenanews.com or by phone at 358-5688.
