Bloomington Public Schools v. Illinois Property Tax Appeal Board

Filed 1/31/08 NO. 4-07-0405 IN THE APPELLATE COURT OF ILLINOIS FOURTH DISTRICT BLOOMINGTON PUBLIC SCHOOLS, DISTRICT ) Appeal from NO. 87, McLean County, Illinois, ) Illinois Property Petitioner-Appellant, ) Tax Appeal Board v. ) No. 04-00644-C-3 THE ILLINOIS PROPERTY TAX APPEAL ) BOARD, SEARS STORE No. 2840, and ) THE McLEAN COUNTY BOARD OF REVIEW, ) Respondents-Appellees. ) _________________________________________________________________ JUSTICE McCULLOUGH delivered the opinion of the court: The petitioner, Bloomington Public Schools, District No. 87, McLean County, Illinois (School District), appeals the final administrative decision of the Property Tax Appeal Board of the State of Illinois (PTAB). In February 2005, the Board of Review of McLean County found the 2004 assessed value for Sears Store No. 2840 (Sears) was $1,980,262. The respondent, Sears, appealed that assessment to PTAB; and in April 2007, PTAB found the assessed valuation was $1,265,400. The School District appeals, arguing that (1) PTAB should have considered the sale of the mall in determining the fair market value of Sear's property, (2) PTAB should have considered the value of the land in determining the fair market value of Sear's property, and (3) PTAB's decision to use the fair market value found by Sear's appraiser is against the manifest weight of the evidence. We disagree and affirm. Because the parties are familiar with the evidence presented at the June 2006 hearing, we present facts only to the extent necessary to provide context for the issues. Evidence showed the Sears property is a one-story retail store with an attached auto service center. The building is 117,234 square feet and sits on a 9.19-acre parcel. The land has been improved with a parking lot, sidewalks, lighting, and landscaping. The property has been leased to Sears since 1966 as part of Eastland Mall. In 1996, the lease was changed, allowing Sears to upgrade and expand the property. The 1996 lease runs through 2011 with an option of three five-year extensions. The City of Bloomington township assessor assessed the property for 2004 at $1,980,262. The Board of Review upheld that assessment. In McLean County, the assessed value is one-third of the fair cash value. Fair cash value has the same meaning as fair market value and is defined as "the price a willing buyer would pay a willing seller for the subject property, there being no collusion and neither party being under any compulsion." Residential Real Estate Co. v. Illinois Property Tax Appeal Board, 188 Ill. App. 3d 232, 242, 543 N.E.2d 1358, 1364 (1989). Sears is responsible for the property taxes. In April 2007, PTAB issued its written decision. PTAB concluded the best evidence of Sears' fair market value was the appraisal submitted by Sears estimating the January 1, 2004, fair market value at $3.8 million. PTAB stated: "[PTAB] finds the appellant's appraiser pro- vided competent, professional, and logical testimony in support of his appraisal method- - 2 - ology, the data used in the approaches to value, the adjustment process, and final value conclusion using two of three tradi- tional approaches to value. In contrast, [PTAB] finds the [school district