The Village of Pleasant Prairie will refund Target Corp. $118,946 within 60 days after entering into a settlement with the company over a property tax assessment dispute.
Target Corp. opened a 126,842-square-foot store at 9777 76th St. in 2008. For 2012 and 2013, the Village calculated the assessed value of Target’s Pleasant Prairie location to be $12,181,300. In 2014, the assessed value was calculated at $13,715,200.
Target Corp. had an appraisal completed claiming the value of its Pleasant Prairie location to be $6,642,000 over the same three-year period. Target’s attorney compared its facility to abandoned Wal-Mart stores, including the former Wal-Mart in Kenosha to come up with its assessed value.
While Pleasant Prairie disagreed with this method, saying it is not equitable, the Village Board voted Sept. 21 to settle the claim and avoid any further legal expenses. The settlement agreement reached between the Village and Target Corporation recognizes an assessed value of $10,781,000 for each year of the three-year period (2012 through 2014).
Village Administrator Michael Pollocoff said the settlement will put residential property owners and small business owners at a disadvantage.
“As tax attorneys solicit more large national clients to challenge assessed values based upon the value of “dark” or vacant stores as opposed to sales of comparable properties or acquisition costs, the equity in the property tax system will erode,” Pollocoff said.