SANDWICH – Taxing bodies may see a decrease in tax revenue if area businesses are granted decreases in recent property assessment appeals.
Hall St. Lofts at 413 E. Hall St., Walgreen’s at 30 W. Church St., Fox Valley Family YMCA at 707 S. Main St. and Timber Creek Hotel at 3300 Drew St. each are looking to reduce their property value assessments by more than $100,000, according to Sandwich City Clerk Denise Ii.
Ii said Illinois House Speaker Mike Madigan’s Chicago law firm, Madigan & Getzendanner, is requesting to lower the assessment for Hall St. Lofts from $581,425 to $296,637, according to paperwork sent to the city from the state’s property tax appeal board. If granted, it could mean the property tax bill would be reduced by about $26,000, according to 2018 DeKalb County tax data.
Ii said the Mullen Law Office, also of Chicago, is looking to lower the assessment for Walgreen’s from $548,075 to $433,290, according to paperwork sent to the city from the state’s property tax appeal board. If granted, it could mean the property tax bill would be reduced by about $11,000, according to county tax data.
Ii said the city also recently received similar paperwork from the state’s appeal board for the YMCA and hotel, saying they would like to reduce their assessments by more than $100,000. She said that paperwork was not available for reference on Wednesday, July 17.
According to 2018 DeKalb County property tax data, Sandwich School District 430 gets about 50% of property tax revenue. The city of Sandwich gets about 10% of that revenue.
Sandwich Ward 1 Alderman Les Redden said this type of potential property tax revenue reduction, which is a nearly 50% reduction with the Hall St. Lofts appeal, hurts all taxing bodies, especially the school district.
“It is quite a bit of money,” Redden said.
Redden said the city gives companies approval to locate in Sandwich with the promise of additional property tax revenue. Then all of the sudden, he said, those companies want huge reductions in property assessments and a decrease in property taxes.
“It’s almost like a stabbing in the back later on,” Redden said.
Sandwich School District 430 Superintendent Rick Schmitt did not respond to a request for comment Thursday, July 18, from Record Newspapers.
Timber Creek Hotel is in the Kendall County part of the city. The other three properties are in the DeKalb County part of the city.
Andy Nicoletti, chief assessor for Kendall County, said the county’s board of review has 90 days from the date the county office receives the appeal file to submit evidence defending the county’s assessment to the state. Barring any potential time extensions, he said, the party filing the appeal would have 30 days to respond to the county’s evidence once they receive it, and the county would have 30 days to respond to the their response.
Nicoletti said there’s currently a five- to six-month lag in the state sending out appeals to the county.
“From the time that [the appeal]’s filed with the state, it can be up to three years,” Nicoletti said.
Ii said the city submitted a request to intervene to the state about a year ago for Walgreens. She said she is not anticipating the city to file a request to intervene for the four recent appeals.
“We’ll just leave it with the respective counties’ boards of review,” Ii said.