Overview:
Simonson Appraisals recently assisted in a property tax appeal involving a 200+ room full-service hotel in the Minneapolis/St. Paul metropolitan area. Our client was the property owner, who was represented by local property tax appeal attorneys. Simonson Appraisals conducted an appraisal report and was prepared to testify at trial. The case settled shortly before the scheduled tax court date.
Background:
The subject property, a prominent hotel asset located between the Minneapolis/St. Paul International Airport and Mall of America had experienced several years of challenges stemming from pandemic-era recovery and shifting demand in the hospitality sector. These factors significantly impacted the property’s income-generating ability — considerations that were not fully reflected in the Assessor’s Estimated Market Values (AEMV) for Pay 2023 and 2024.
Assessed vs. Settlement Values:
Pay 2023:
Assessor’s Estimated Market Value (AEMV): $23,500,000
Settlement Value: $13,500,000
Percent Change in Value: -42.6%
Pay 2024:
Assessor’s Estimated Market Value (AEMV): $25,800,000
Settlement Value: $14,250,000
Percent Change in Value: -44.8%
Results:
The settlement resulted in a combined reduction of $21.55 million in taxable value across the two assessment years. This will lead to substantial property tax savings for the client. Our in-depth market analysis, credible valuation approaches, and readiness to defend our conclusions in court were instrumental in achieving this favorable outcome.
Client Feedback:
The client was satisfied with the results, recognizing the value of our detailed work and the impact on their bottom line.
Takeaway:
This case demonstrates the importance of engaging qualified valuation professionals when appealing complex commercial assessments — particularly in volatile sectors like hospitality. Simonson Appraisals works with property owners, attorneys, cities and counties. Our firm is committed to deliver independent, impartial and objective opinions of value by combining technical expertise with deep market insight.