Lockport Union-Sun & Journal — The owner of Lockport Professional Park has been awarded a substantial assessment reduction.
A three-year settlement agreement between Lockport Professional Park LLC and the City of Lockport, approved June 27 by state Supreme Court Justice John A. Michalek, cuts the taxable value of the 27-parcel medical/office complex by $1.37 million or 14.8 percent by 2015.
The agreement reduces the combined assessment of all parcels in each of the next three tax years. The 2011-12 value, $9.3 million, stands, meaning the owner is not entitled to tax refunds by the city, the school district or the county.
The jurisdictions will have less value to tax going forward, however.
In 2012-13, Professional Park’s combined assessment is cut by almost $1 million, to $8.27 million; in 2013-14, it is reduced another $125,000, to $8.16 million; and in 2014-15 it’s reduced another $250,000, to $7.9 million.
Based on 2011-12 school, city and county tax rates, LPP’s first assessment reduction cuts its total property tax bill by nearly $50,000. By 2015, again based on current tax rates, it’ll save $66,000 a year.
Per the agreement, the city can’t alter Lockport Professional Park’s assessments through 2015 if it undertakes another partial or full revaluation project.
Also per the agreement, the owner dropped an earlier suit challenging the 2010 assessments on five of 27 parcels.
Professional Park LLC sued again last year in the wake of citywide revaluation, when the complex’s combined taxable value was raised to $9.3 million from $6.3 million in 2010.
The company claimed the proper combined assessment was $3.7 million, although it purchased the property for an estimated $11 million in 2008.
The sale price of commercial property isn’t necessarily its market value for taxing purposes, according to City Attorney John Ottaviano. The amount of income LPP generates as rental property has more influence on its assessment, he said.
With the LPP settlement, the city has cleared all outstanding 2011 assessment challenges by commercial property owners.