Case Studies

The following is a representative sampling of the properties represented by John P. Fitzgerald, Ltd.

Automobile Dealership

Orland Township, Cook County, Illinois
The subject property is a one story- two story automobile dealership containing 35,185 square feet, on a parcel of land consisting of 239,613 square feet. The subject property is currently being leased by the client.

The 2001 market value of $2,045,000 was the result of the previous users' vigorous attempts to reduce the 1999 market value. Being of the opinion that the market value was still excessive, a complaint was filed before the Cook County Board of Appeals and a MAI appraiser was engaged. Pursuant to that complaint, the Board reduced the market value to $1,970,000 for an additional tax savings of over $5,700 during tax year 2001.

Suit was filed in the Circuit Court of Cook County on January 6, 2003 for the purpose of recovering the tax difference between the current market value and the appraisal value. The case is currently pending.

During the 2002 triennial reassessment, the market value was increased to $2,848,168, an increase of 44%. An appraisal with a market value of $1,850,000 was procured. Appeals with the Assessor and Board of Review have resulted in tax savings of $57,000 during each of the years 2002 - 2004. An increase in the market value of just 7.1% on one of the most desirable automobile strips in the country!

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Industrial Tax Incentive
Chicago, Cook County, Illinois
An industrial complex located in the Lake Calumet Industrial District on the southeast side of Chicago. The site is improved with a 250,000 sq. ft. building that formerly housed the General Mills cereal plant. The plant was vacant for approximately two years prior to our client's acquisition.

Immediately after the acquisition was completed we requested Class 6b status from the Chicago City Council. Our request was granted during the summer of 2003. Next, we filed a petition for Class 6b status with the Cook County Assessor. That request was granted during June 2004.
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Bulk-Transfer Warehouse

Chicago, Cook County, Illinois
The subject property is a bulk warehouse located in the Lake Calumet District of Chicago. The building area is approximately 81,200 square feet on a parcel consisting of approximately 488,000 square feet.

The Assessor increased the 2000 market value to $1,371,378. An MAI appraisal with a market value of $750,000 was procured. Complaints were filed with both the Assessor and the Cook County Board of Review. At the conclusion of each hearing, the market value had been reduced to $750,000 for a three-year tax savings of approximately $130,000.

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Commercial Strip-Center

Orland Township, Cook County, Illinois
The subject property consists of two separate masonry-constructed, strip centers located in Orland Park, Illinois. The buildings are twelve years old and consist of 52,000 square feet of retail space on a parcel approximately 211,100 square feet. The subject property was purchased in 1997 by the client, for a total consideration of $4,100,000. The acquisition was considered non-arms-length because of unique income tax considerations.

The Assessor increased the 1999 assessed valuation to $4,331,187, an increase of 57.7%. A complaint was filed before the Assessor. Among the items of evidence submitted was an MAI appraisal indicating a market value of $ 2,770,000 and an analysis capitalizing the Federal tax benefit's which served as the primary inducement for the client to pay the excessive purchase price. On March 6, 2000, the Assessor reduced the market value to $2,909,000 which resulted in a three-year tax savings of over $330,000. The new market value was merely 5.9% higher than the 1996 level. After a careful review of the facts and consultation with the client, it was decided not to file before the Cook County Board of Review.

During the 2002 triennial reassessment, market value was increased to $4,331,187. An increase of 48.9% since 1999. An MAI appraiser was engaged and a complaint was filed before the Assessor. Accordingly, the Assessor decreased the market value to $3,578,071. Re-review conferences were unsuccessful in obtaining additional relief. A decision was made to appeal to the Cook County Board of Review. The case was presented on May 6, 2003 and on May 30, 2003, the Board reduced the market value to $3,078,932 an increase of 5.8% over the 1999 market value. Through these reductions, the client will realize tax savings of over $100,000 during each of the tax years 2002, 2003 and 2004.

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Commercial-Warehouse Facility

Worth Township, Cook County, Illinois
The subject property, located in Alsip, Illinois, is a one story plus mezzanine, sprinkled, warehouse building with a large display area and consist of approximately 23,362 square feet, on 40,805 square foot parcel. The building was constructed in 1991 with an addition in 1996.

The Assessor increased the 1999 market value to $1,023,042, an increase of 21%. A complaint was filed before the Assessor and the Board of Review. Among the items of evidence submitted was a MAI appraisal indicating a market value of $640,000. Pursuant to those complaints, the Assessor reduced the market value to $836,114 and the Board of Review granted a further reduction to $686,103. The reduction granted by the Board reflected a reduction of 14.4 % below the 1996 market value of $845,489. Both of these contest together resulted in a total three-year tax savings of approximately $67,000.

During the 2002 triennial reassessment, the Assessor increased the market value 32.7% to $911,116. A petition was filed before the Assessor which reduced the market value to $862,597. Soon after that a MAI appraisal was procured and a complaint was filed with the Board of Review. On May 21, 2003, the Board reduced the market value to $715,787, an increase of only 4.3% since 1999. These decreases will total $48,000 during the tax years 2002 - 2004.

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Industrial

Barrington Township, Cook County, Illinois
The subject property, located in unincorporated Barrington Township, consists of an 11- and 29-year-old, masonry and metal panel, industrial facility containing approximately 25,364 square feet. The improvement is situated on a parcel of land containing approximately 301,000 square feet or 6.91 acres.

During the 2001 reassessment, the Assessor increased the market value from $1,224,675 to $1,261,144, an increase of about 3%. A complaint was filed at the Cook County Board of Review. Evidence of a market value of $900,000, via an MAI appraisal, was submitted at the hearing. On March 8, 2002, the Board of Review reduced the market value to $904,983 for a three-year tax savings of approximately $48,357.

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Hotel
Chicago, Cook County, Illinois
One of the larger hotels in Downtown Chicago and owned by a governmental pension fund. The property was purchased during 1997 for over $56,000,000 in a transaction which included land and building, a going concern and business equipment.

During 2002, the client was informed by their tax advisor that their appraiser was of the opinion that a lower assessed valuation could not be obtained. John P. Fitzgerald, Ltd. was then engaged and a new appraisal was commissioned. On June 12, 2003, the Cook County Board of Review set the assessed valuation at a level which was 3.8% lower than the 2001 level.

Industrial

Palatine Township, Cook County, Illinois
The property consists of a 32-year-old, single-story, masonry and metal panel, industrial building containing approximately 51,000 square feet. The property is situated on a parcel of land containing approximately 105,201 square feet.

During the 2001 reassessment, the Assessor increased the market value from $1,591,864 to $2,006,553, an increase of 26%. A complaint was filed with the Assessor along with evidence of market value in the form of an MAI appraisal indicating a market value of $1,420,000. On March 7, 2002, the Assessor reduced the market value to $ 1,420,000 for a 3-year tax savings of approximately $143,600. As a result of this approach, the 2002 market value is 10.8% below the 1998 market value.

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Industrial

Wheeling Township, Cook County, Illinois
The subject property consists of a seven-year-old, single-story, masonry, single-tenant industrial building containing approximately 30,125 square feet. The improvement is situated on a parcel of land containing approximately 136,385 square feet or 3.13 acres.

During the 2001 reassessment, the Assessor increased the market value from $1,431,641 to $1,548,455, an increase of 8%. Complaints were filed at both the Cook County Assessor and the Cook County Board of Review. Evidence was submitted at each hearing in the form of an MAI appraisal, which indicated a market value of $1,235, 000. The Assessor reduced the market value to $1,467,800 and on May 24, 2002, the Board reduced the market value to $1,332, 237 for a three-year tax savings of approximately $37,979.

In an effort to recover the remaining difference between the current market value and the appraisal value, a suit was filed in the Circuit Court of Cook County on January 6, 2003.

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Industrial

Worth Township, Cook County, Illinois
The subject property is a 42-year-old, one-story, sprinkled industrial building consisting of a 23,000 square feet building on a 36,000 square foot parcel of land.

The Assessor increased the 1999 market value by 17% to $900,292. Complaints were filed before the Assessor and the Board of Review. Evidence included an MAI appraisal indicating a market value of $650,000. The Assessor reduced the market value to $794,297 and on May 28, 2000, the Board granted a further reduction to $673,661, a decrease of 14.3% from the 1996 market value. These reductions resulted in a three-year tax savings of over $51,500.

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Leasehold

Chicago, Cook County, Illinois
The subject property is a 362,000 square foot aircraft hangar located on a parcel of land leased from the City of Chicago at O'Hare International Airport. The lease and leasehold improvements were purchased by the client during 1999 for $5,000,000. The transaction, premised upon income tax considerations was not arms-length.

The Assessor increased the 1999 market value to $7,132, 224. A complaint was filed before the Assessor and pursuant to that complaint, the market value was reduced to $4,279, 326 for a one-year tax savings of $209,000.

During tax year 2000, the Assessor increased the market value to $ 7,132,214. A tactical decision was made to bypass the Assessor and instead file only with the Board of Review. Pursuant to that appeal, the market value was reduced to $4,992,544 for a one-year tax savings of $156,000.

During tax year 2001, the Assessor restored the previous market value of $7,132,214. A decision to file a complaint before the Assessor was made. Pursuant to that appeal, the market value was reduced to $4,493,000 for a one-year tax savings of $174,000.

During tax year 2002, the Assessor increased the market value to $7,132,203 again. A complaint was filed with the Assessor and the valuation was reduced to $2,952,721. It was then decided not to file an Appeal with the Board of Review.

During the past four years the client has realized a tax savings of over $815,000.

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Multifamily Housing

Bremen Township, Cook County, Illinois
The subject property, located in an unincorporated area near Tinley Park, Illinois is a multifamily housing complex, containing 192 units. The complex is approximately 40 years old.

During the 2002 triennial reassessment, the market value was increased by 36.8%. An MAI appraiser was engaged and a 2002 appeal was filed with the Cook County Board of Review. On March 28, 2003, the Board of Review reduced the market value to $5,275,573. An increase of 10.5%. When considering the assessment rate changes, the increase is about 1.5%. This strategy will result in a tax savings to the client of over $250,000 during tax years 2002 - 2004.

Multifamily Housing
Bremen Township, Cook County, Illinois
A 33-year-old, 165-unit apartment complex located in a stable area of suburban Oak Forest.

The Assessor increased the 2002 market value to $3,975,158, an increase of 42.6%. A MAI appraisal was procured and complaints were filed with the Cook County Assessor and Board of Review. As a result of this strategy, the market value was reduced to $2,824,203, an increase of just 1.3% for a tax savings of approximately $275,000 during tax years 2002 - 2004.

Multifamily Housing
Worth Township, Cook County, Illinois
The subject property is a 29-year-old apartment complex containing 144 residential units. It is located in Alsip, Illinois.

During the 2002 triennial reassessment, the Assessor increased the market value to $3,888,009 reflecting a 42.1% increase. Appeals were filed with the Cook County Assessor and the Board of Review. Our most most persuasive evidence was a MAI appraisal using actual income. After considering all of the evidence the County reduced the market value to $2,863,642, an increase of 4.6%. This strategy will result in a tax savings to the client of $230,000 during tax years 2002, 2003 and 2004.


Self-Storage Warehouse

Chicago, Cook County, Illinois
The subject property is a mill-constructed, self-storage warehouse, consisting of a 89,000 square foot, building on a 42,000 square foot parcel, located in the South Loop area of Chicago. The building is 105 years old. The property was purchased by the client and substantially rehabbed.

The Assessor increased the 2001 market value to $3,337,092. A complaint was filed with the Assessor on the basis that the market value of the property had diminished due to vacancy problems. The Assessor reduced the 2001 market value to $818,000 for a tax savings of $165,000.

During tax year 2002, the Assessor increased the market value to $3,355,418. A complaint was again filed with the Assessor premised upon diminished market value due to vacancy problems. Pursuant to that complaint, the 2002 market value was reduced to $1,275,059 for a tax savings of over $135,000.

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Special Purpose- Ice Arena
Worth Township, Cook County, Illinois
The subject property is a 30+ year-old special purpose building containing a full-sized ice arena and a lounge. The arena is leased out to various hockey clubs and local high school teams. The fact that my son learned to play and still plays hockey in this building, made the outcome of this case very significant to me personally.

Pursuant to the 2002 triennial reassessment, the Assessor increased the market value 74% to $1,419,350. I contacted the appraiser who had written reports on the property for the clients previous tax attorney. Surprisingly, he told me he could not write an appraisal for anywhere near a market value which would be beneficial to the client. Another appraiser was engaged. A complaint was filed before the Cook County Assessor and after a series of re-review conferences the market value was reduced to $1,035,032. Next, I filed before the Board of Review. A hearing was held on April 29, 2003 and on May 21, 2003, the Board of Review reduced the market value to $833,937, an increase of only 2.3% since 1999.

Warehouse

Elk Grove Township, Cook County, Illinois
The subject property is a warehouse containing 76,300 square feet, located in Elk Grove Village, a Chicago suburb which is adjacent to O'Hare Airport. The building is 3 years old,100% sprinkled and has clear ceiling spans of 42 feet.

The Assessor increased the 2001 market value to $2,838,036. An appeal was filed with the Cook County Board of Review and evidence of market value @ $2,200,000, in the form of an MAI appraisal, was introduced at the hearing. On June 5, 2002, the Board of Review reduced the market value to $2,228,000 for a three year tax savings of over $125,000.

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