Mall In Manchester Seeks Lower Property Appraisal

Mar 9, 2010 — The Hartford Courant

Jesse Leavenworth

Mar. 9, 2010 (McClatchy-Tribune Regional News delivered by Newstex) -- MANCHESTER -- The owner of the Shoppes at Buckland Hills is seeking a reduction of about $21 million in the town's appraisal of the mall property.

The town has set the value of real estate at 194 Buckland Hills Drive at $150,392,700. Mall owner General Growth Properties (NYSE:GGP) of Chicago, however, estimated the value at $129,300,000 in a recent application to the board of assessment appeals.

The town taxes the mall based on 70 percent of the appraisal, or "fair market value," which is $105,274,900. Seventy percent of the owner's estimated appraisal of $129.3 million would be $90.3 million.

In the "reason for appeal" box on the application, the owner's representative wrote, "Income does not support value."

General Growth, which owns or runs about 200 shopping malls in 43 states, is in Chapter 11 bankruptcy. The U.S. Bankruptcy Court recently granted the company a four-month extension to decide how to emerge. General Growth's tax appeal, however, likely has more to do with property values than bankruptcy, said R. Michael Goman, a commercial real estate expert. The town's current assessment is based on a 2006 revaluation, and commercial real estate values across the state and nation have wilted since then.

"The reality is that every commercial property owner out there has seen the value of their property drop," said Goman, of Simsbury-based International Commercial Real Estate Investment. "If you're not asking for your property to be reassessed, you're probably in the minority."

The mall is the town's top taxpayer. On the October 2008 grand list, the owners paid real estate taxes of $2,821,367 on the property that is the subject of the appeal, according to John Rainaldi, the town's director of assessment and collection. Real estate taxes paid for the same period to the 8th Utilities District, a separate local taxing entity, totaled $170,545.34.

The assessment appeals board will hear the mall owners' case Thursday at 6:45 p.m. in town hall.

Newstex ID: KRTB-0083-42701527