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Arena Sues Appraiser's Office: Ice Rink Owner Says County Overstated Value, Tax Roll of Ellenton Sports Complex

Posted on: Saturday, 31 December 2005, 12:00 CST

By Nicholas Azzara, The Bradenton Herald, Fla., The Bradenton Herald, Fla.

Dec. 31--MANATEE -- Only two months after assuming ownership of the ice arena formerly known as J.P. Igloo, MJ Squared has filed suit against the Manatee County Property Appraiser's Office, claiming the arena's value has been overstated.

In a lawsuit filed Dec. 2, MJ Squared claims Property Appraiser Charles Hackney "failed to properly consider the nature, character, use and condition of the property and the income of the property," therefore overstating the arena's value and tax roll.

The arena, renamed the Ellenton Ice and Sports Complex in November, has been appraised at $9.8 million and $181,000 is owed in taxes for the year. The suit claims the appraiser's method of assessment was "unrealistic, unjust or arbitrary." Also named as defendants in the suit are Florida Department of Revenue Executive Director Jim Zingale and Manatee County Tax Collector Ken Burton Jr.

In October, MJ Squared hired a private property appraiser who determined the arena was valued at $4.4 million. MJ Squared then paid $72,800 in taxes based on that property estimate. The difference between the two parties' tax estimates is $108,200.

The Igloo was built in 1999 at a cost of $12.8 million, according to Herald archives.

Marvin Kaplan, a managing partner with MJ Squared, said the arena has been "grossly over-taxed," adding that MJ Squared has paid $800,000 in back taxes and improvements to the arena since October.

"We're (being charged) over twice what we should be paying," Kaplan said. "It's been devalued tremendously, and it's in terrible shape. We paid what we feel the estimated 2005 tax should be."

Hackney said he has not yet received the private appraisal promised by state Sen. Mike Bennett, another MJ partner.

"I told Bennett to bring me an appraisal, and we'll look at it and talk about it and deal with it," Hackney said. "If it's appropriate we'll make a reduction. If it's not, and we feel like our assessment is correct, we'll defend our assessment."

Attempts to reach Bennett on Friday were unsuccessful.

Lawsuits must be filed within 60 days of a tax roll being issued, and MJ Squared filed the suit to "protect their standing," Hackney said.

"Where those numbers came from, I don't know," Hackney said about the private appraiser's amount. "It seems that the rule of thumb is that people take our (assessment) and cut it in half and file suit."

Bennett said the lawsuit is only in preliminary stages and said he did not know many details about the case.

"Typically what happens in these suits is that we'll settle it or go to mediation and get something worked out," Hackney said. "We've only been to court twice in 14 years."

Property owners may petition a Value Adjustment Board to review county appraisals, but they are not required to before filing a lawsuit.

Hackney said he hopes the suit does not end up in an expensive trial for taxpayers.

Nicholas Azzara, business reporter, can be reached at nazzara@HeraldToday.com [mailto:nazzara@HeraldToday.com] and 708-7908.

To see a copy of the lawsuit against the property appraiser, go to HeraldToday.com.

HeraldToday.com

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Copyright (c) 2005, The Bradenton Herald, Fla.

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Source: The Bradenton Herald (Bradenton, Fla.)

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