Docket No. 03-22636.001-C-3 & 04-21196.001-C-3
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accurately reflected in its assessed value. The appellant argues
that, based upon its correct market value, the subject is over
assessed.
In support of its market value arguments, the appellant submitted
two appraisals in complete summary reporting format prepared by
Joseph Ryan of LaSalle Appraisal Group (LaSalle). The taxpayer
presented its appraiser, Joseph Ryan, to testify in support of
the appraisals. Ryan is the president of LaSalle. He is a
Member of the Appraisal Institute (MAI) and is also a Certified
General Real Estate Appraiser for the State of Illinois. The
PTAB accepted Ryan's qualifications as an expert in the field of
appraisals of department store properties including the subject.
Ryan testified that he had prepared complete appraisal reports in
summary format on the subject property with effective dates of
January 1, 2003 and January 1, 2004. Ryan estimated the subject
property had a market value of $5,700,000 as of both January 1,
2003 and January 1, 2004.
Thomas Grogan, MAI, of LaSalle, inspected the subject property on
July 4, 2004. Ryan inspected the property both prior to and
subsequent to that date. Ryan inspected the interior of the
property while Grogan inspected the back rooms and mechanical
systems. Ryan determined the highest and best use of the
subject, as vacant, was for commercial use and the highest and
best use, as improved, was for continued use as an anchor
department store.
Ryan valued the subject property using two of the three common
approaches to value, the income approach and the sales comparison
approach. Ryan testified the cost approach was not used since he
placed very little weight on this approach to value because
market participants for such properties as the subject place very
little weight on this approach.
In his income approach the witness testified he used four local
rentals of retail properties for the 2003 report. In the 2004
report the witness used eight rentals of anchor department
stores. The same comparables were not used for both reports.
The witness compared the rentals with the subject and analyzed
their leases. In the 2003 report, the witness testified that the
four comparables had rents that ranged from $4.50 to $10.50 per
square foot on properties that ranged in size from 105,000 to
115,000 square feet. Lease dates ranged from 1999 to 2003. The
witness estimated a market rent of $6.00 per square foot for the
subject for the year 2003.
In estimating market rent, the witness also considered the annual
retail sales of the subject property. Retail sales in 1998, 1999
