Petition 1071 N Ballenger.pdf
A.S.B. LLC Petitioner Vs. Township Of Flint Respondent · 26-000495-TT
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STATE OF MICHIGAN DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS MICHIGAN TAX TRIBUNAL A.S.B. LLC, Petitioner, v. MTT Docket No. 26-_________ Parcel ID 07-10-400-005 Charter Township of Flint, Respondent. ______________________________________________________________________________ PETITION A.S.B. LLC (“Petitioner”), through its attorney Eva Cantarella at the law firm Hertz Schram PC, petitions this Tribunal as follows: 1. Petitioner is a limited liability company whose business address is 1201 Flushing Rd, Flint MI 48504-4730. 2. The Subject Property is a three-story, nine-suite, office building built in 1973 containing 19,865 square feet of gross leaseable space, situated on 2.53 acres located at 1071 N. Ballenger Highway, Flint Township, Michigan, and further identified by Parcel ID No. 07-10-400- 005. 3. Petitioner is the party in interest, as Petitioner is responsible for paying the property taxes on the Subject Property. 4. Respondent Charter Township of Flint levies and collects the property taxes on the Subject Property. 5. The Subject Property is classified 201 Commercial Improved and was built for its current use as an office building. 1
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6. The Subject Property is located in Genesee County and is in the Carmen-Ainsworth Community Schools school district. 7. This Petition concerns issues relating to (a) valuation, (b) assessment, and (c) taxable value. 8. For the 2026 year, Respondent determined the following assessed, state-equalized, and taxable values for the Subject Property: Respondent’s 2026 Value Contentions Assessed Value State-Equalized Value Taxable Value Parcel ID 07-100-400-005 $1,758,700 $1,758,700 $1,690,031 9. Petitioner did not protest Respondent’s value contentions to the Charter Township of Flint Board of Review. 10. Based on Respondent’s contention of Assessed Value, Respondent determined the Subject Property’s true cash value to equal $3,517,400, which equates to $177.07/square foot [$3,517,400 / 19,865 SF = $177.07]. 11. For the following reasons, Petitioner contends Respondent has over-valued the Subject Property. 12. In an arms-length transaction, Petitioner paid $500,000 for the Subject Property on January 25, 2024. 13. Comparable sales indicate the Subject Property should be valued at approximately $86/square foot (= $1,700,000 rounded) minus the cost of major capital expenditures that were needed on tax day and are still needed (detailed in paragraphs 16-19). 14. Four of the nine suites, totaling 6,556 SF, were vacant on tax day, meaning the Subject Property was 33% vacant on that date. 2
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15. Many properties in the neighborhood, including one next to the Subject Property, are poorly maintained, a situation that factors into the Subject’s high vacancy rate and is not likely to change. 16. Petitioner has made no major improvements to the Subject Property but the elevator urgently needs to be replaced at a cost of approximately $200,000 for which Petitioner has already paid a $70,000 deposit. 17. Additionally, the entire parking lot including the entrance thereto is severely degraded and needs to be completely resurfaced/replaced (estimated cost: $150,000). 18. Various metal exterior building fixtures are old and rusty and should be replaced. 19. The building is heated and cooled with roof-top heat pumps believed to be the originals and therefore likely in need of replacement soon. Indeed, the property manager advises that it is difficult to get comfortable temperatures throughout the building. 20. The third floor suites have only one bath each but prospective tenants have all wanted at least two baths per suite. The entire third floor also needs to be painted and some ceiling tiles and flooring need to be replaced. 21. Given the foregoing, Petitioner contends the 2026 true cash value of the Subject Property is $1,350,000 [i.e., $1,700,000 based on the comparable sales minus $200,000 for an urgently needed new elevator and $150,000 to replace/resurface the parking lot] and therefore the 2026 assessed, state-equalized, and taxable values should be as follows: Petitioner’s 2026 Value Contentions Assessed Value State-Equalized Value Taxable Value Parcel ID 07-10-400-005 $675,000 $675,000 $675,000 3
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22. Petitioner is unaware of any dispute concerning the value of a statutory “addition” or “loss” in determining the Subject Property’s taxable value. 23. Should Petitioner hereafter become aware of any such dispute, Petitioner reserves the right to amend this Petition to reflect the dispute. 24. Petitioner requests that the Tax Tribunal enter an Order (i) reducing the 2026 assessed, state-equalized and taxable values of the Subject Property to the amounts contended by Petitioner, and (ii) require Respondent to pay Petitioner any refunds attributable to such reductions, plus allowable interest and costs. Respectfully submitted Hertz Schram PC /s/ Eva T. Cantarella Eva T. Cantarella (P51917) Attorney for Petitioners 1760 S. Telegraph Road Bloomfield Hills, MI 48302-0183 off. (248) 335-5000; fax. (248) 335-3346 ecantarella@hertzschram.com 4