SrarB or WtscoNsrx
KpwluNBB CouNrv
Crncurr Counr
DotvttNloN ENrRcv KBwauNBE, INC., PLe,INTTFp,
casBNo. 15-CV-77
V.
TowN or Ca.nr-roN, DEFENDANT.
JUN 0 7
?afi
ffifmrffi"
DovrrNroN ENBncv KBweuNnE, INC., PLemupp,
Casr No. 16-CV-60
.v.
TowN on ClRrroN, DBpeNoeNr.
Frxal OnoBn
The Court issues the following as its Final Order in these consolidated cases:
1.
These excessive assessment actions under WIs. Srer.574.37 were brought by
DoumroN ENeRcy KnweuNne,INc. (DEK) against the TowN on CeRI-roN (Town) for tax years 2015 and 2016. Those actions are now consolidated before this Court.
2.
The property at issue consists of five parcels of real property plus personal property
that DEK owns in the Town, which collectively comprise the former Kewaunee Power Station that DEK closed in 2013 (collectively, the Property). The real property at issue is identified on
the Town's records as Tax Parcels 31 004 25.GLz,
31 004
31 004 36.GL1 and 31 004 36.GL2; and the personal property
25.GL3,
31 004 25.GL4,
is identified on the Town's
records as Account No. 31 004 PP 24 (formerly Account No. 0017).
3.
The Town's aggregate assessment of the Property for 2015, as corrected, was
$451,322,600, and the Town's aggregate assessment of the Property for 2016, as corrected, $468,894.500.
4.
DEK and the Town have resolved their dispute over the 2015 and 2016
assessments
of the Property. That resolution is set forth in a binding Settlement Agreement which was approved by the Town Board on January 14,2017 and filed with this Court on January 31,2017
(Settlement Agreement). Under the Settlement Agreement, both the 2015 and 2016 aggregate assessments of the Property were reduced to $15,000,000.
5.
DEK and the Town have agreed that the $15,000,000 aggregate assessments for both
2015 and 2016 shall be allocated among the real property parcels and personal property account comprising the Property as follows: ParceUAccount
Assessment
31 004 25.GL2
$528,800
31 004 25.GL3
$555,900
31 004 25.GL4
$12,604,600
31 004 36.GL1
$748,400
31 004 36.GL2
$s62,300
31 004 PP24
6.
$o
The Court approves and adopts the 2015 and 2016 assessments of the Property
agreed to by
DEK and the Town, and the Court
sets those assessments as the
as
final assessments of
the Property for each of those years, as previously set forth in the Court's Order entered on April
20,20t7.
7.
As a result of the reduction of the 2015 and 2016 aggregate
assessments
of
the
Property to $15,000,000, DEK has overpaid 2015 tax on the Property in the aggregate amount of
$5,908,560.73,and DEK has (or will have) overpaid 2016tax on the Property in the aggregate amount of $5,999,051.29, for a total overpayment of $11,907,612.02.The parties agree, and the
Court finds, that the overpayment amounts set forth in this paragraph are the coffect amounts, notwithstanding the slightly different amounts set forth
in paragraph 3 of the Settlement
Agreement.
8.
As a result of the overpayments described in paragraph 7 of this Final Order, DEK is
due a refund from the Town of $1 1,907 ,612.02.
9,
DEK and the Town have agreed, as part of the resolution of these actions, on
a
procedure for the Town's payment of the $11,907,612.02 refund to DEK identified in paragraph 8 of this Final Order, consistent with the Settlement Agreement, DEK and the Town have further agreed as part of the resolution of these actions for certain supplemental payments to be made by
DEK, to mitigate the fiscal stress to the Town and to Kewaunee County occasioned by the loss of
tax revenue, and by the cessation of public utility distribution payments to the Town and to Kewaunee County under Wts.
Srer. $79.04 resulting from the closing of the former Kewaunee
Power Station. The procedures to implement these agreements, which the Court hereby approves and orders, are set forth in paragraphs
l0 through 20 of this Final
Order.
INapLsNasNreuou Op RpnuNo To DEK
10. The $1I,907,612.02 refund to DEK shall be paid by the Town in ten installments between 20T7 and 2026 (Partial Refund), under the procedures set forth in
l1 through
13
of this
Final Order, which apply for each of the years 2017 through 2026. DEK and the Town have agreed, and the Court finds, that
forthe years 2017 through2O2l, the Partial Refund shall be in
the amount of $i, I8t,712.15; and for the years 2022 through 2026 the Partial Refund shall be in the amount of $1,199,8t0.26.
1
1.
On or before July 1 of each of the years 2017 through 2026, the Town shall issue to
DEK a check in the Partial Refund amount specified in paragraph 10 of this Final Order (Partial Refund Check). The Town shall make all good faith efforts to ensure that each Partial Refund Check is fully negotiable through and including the last day of February of the year following the
year the check is issued. In the event any Partial Refund Check is dishonored at the time DEK attempts to negotiate
it in accordance with paragraph 13 of this Final Order, the Town
shall,
within three business days after being notified of that fact by DEK, issue and send to DEK
a
replacement Partial Refund Check in the fulI amount of the original Partial Refund Check, which
DEK may immediately proceed to negotiate.
12. Upon issuance of the Partial Refund Check to DEK, the Town shall immediately apply to the Wisconsin Department of Revenue to charge back the Partial Refund for that year to
the other taxing jurisdictions for which the Town collects taxes, i.e., Kewaunee County, the Kewaunee School District, Northeast Wisconsin Technical College and the State of Wisconsin
(collectively, Other Jurisdictions) pursuant to Wts. Srar. $74.:41.
13. The Partial Refund Check shall be held in trust by DEK
and shall not be deposited or
disbursed by DEK until the earlier of (a) February 20 of the year following the year the Partial
Refund Check is issued, or (b) such earlier time as the Town advises DEK that all chargeback amounts
it
has requested under Wts.
Srer. *74.41 for the year for which the Partial Refund
Check was issued have been paid to the Town by the Other Jurisdictions.
14. In accordance with paragraph
4 of the Settlement
Agreement, and subject to
paragraphs 19 and 20 of this Final Order, during the year following the year in which each Partial Refund Check is issued, DEK shall pay to the Town an amount equal to the Town's share
of the Partial Refund for the year for which the Partial Refund Check was issued. DEK and
the
Town have agreed, and the Court finds, that for the years.2077 through 2021, this amount shall be $45,587.75; and for the yearc 2022 through 2026, this amount shall be $44,616.23. These amounts shall be paid by DEK under the procedures set forth in paragraph l8 of this Final Order.
15. During the year following the year in which each Partial Refund Check is
issued,
and subject to paragraphs 19 and20 of this Final Order, DEK shall pay to the Town an amount
equivalent to an annualized rate of 2Vo of the amount of the Partial Refund Check, for the period between July 1 of the year the Partial Refund Check is issued and February 20 of the following
year. DEK and the Town have agreed, and the Court finds, that for the years 2017 through2021,
this amount shall be $15,228.75; and for the years 2022 through 2026, this amount shall be $15,383.87. These amounts shall be paid by DEK under the procedures set forth in paragraph 18
of this Final Order. SUppI-SN4BNTAL PAYMENTS
To Trrs TowN ANn To KnwauNnB CouNry
16. For each ofthe years20t7 through 2024, and subject to paragraphs 19 and 20 ofthis Final Order, DEK will pay the Town $250,000 in accordance with paragraph 7 of the Settlement Agreement. These amounts shall be paid by DEK under the procedures set forth in paragraph 18
of this Final Order.
17. For each of the years 2017 through 2026, DEK will pay to Kewaunee County $500,000, payable
in two
equal installments on
or before the
respective dates on which
installment payments of property tax are due for that year, i.e., January
following year.
3l
and July 31 of the
PRoCEDURES FoR
PIyueNrs To Trm TowN
18. Subject to paragraphs
19 and 20 of this Final Order, the payments from DEK to the
Town specified in paragraphs 14, 15 and 16 shall be made in two equal installments, on or before January 31 and July 31 of the year those payments are due, according to the Payment Schedule
which is Exhibit A to this Final Order and is expressly made a part of this Final Order.
19. In accordance with paragraph 8 of the Settlement Agreement, between 2017 and 2024, the aggregate assessment
if, for any year
of the Property as computed under the
Settlement Agreement exceeds $15,000,000, paragraphs 14, 15 and 16 of this Final Order permanently become void and DEK
will
wili have no obligation to make the payments described in
paragraphs 14, 15 and 1 6 of this Final Order for that year or for any remaining year through and
including 2021.
20. In
accordance
with paragraph 9 of the Settlement Agreement, if, for any year
between 2017 and2024, the Town enacts or implements a fee in violation of paragraph 9 of the Settlement Agreement, paragraphs 14, 15 and 16 of this Final Order
will
permanently become
void and DEK will have no obligation to make the payments described in paragraphs 14, 15 and 16 of this Final Order
for that year or for any remaining year through and including
Based on the foregoing,
Z0Z1
.
IT IS IIEREBY ORDERED
A.
That the aggregate assessment of the Property for 2015 is set at $ 15,000,000;
B.
That the aggregate assessment of the Property for 2016 is set at 915,000,000;
C.
That the individual assessments of the real property parcels and personal property
account comprising the Property are set at the following amounts for both 2015 and 2016:
ParceUAccount
Assessment
31 004 25.GL2
$528,800
31 004 25.GL3
$555,900
3r 004 25.GL4
$12,604,600
31 004 36.GL1
$748,400
31 004 36.GL2
$562,300
31 004 PP24
$0
D.
That DEK is due a refund from the Town of $ I 1,907,612.02:
E.
That the parties shall comply with the procedures set forth in paragraphs 10 through
20 of this Final Order with respect to implementation of the refund of overpaid 2015 and 2016 tax to DEK, and all payments from DEK to the Town and Kewaunee County;
F.
That these actions are hereby DISMISSED WITH PREJUDICE, subject to the right
of either party to move to reopen these matters in the event of a violation or alleged violation of this Final Order or of the Settlement Agreement.
This constitutes a Final Order for purposes of appeal under Wls. Srar. $808.03(1).
SO ORDERED THIS
HoN. D. Tono Em-Bns BRnNcu I, DooR Corxrv
02't
3
I
1
-OO24U1098390. I
CrncurCounr
SCH'
Tax
Payment
Year Payment Date 2017 tl3tlz0Lg 2018 2019 2020 2021. 2022 2023 2024
7l3u2it8 tl3ll2ote
7lltlztte
under
11 14
UNDER FINAL ORI'
Payment
under
11 15
Payment
under
11
Total Payment
16
$7,614.37
s125,000.00
s22,793.88
57,61,4.37
S22,793.88
5z,atq.y
s125,o0o.oo s125,000.00
$22,793.88
$tss,aog.zs $tss,cog.zs S155,408.25
522,793.88
57,6'1.4.37
5125,000.00
Stss,cog.zs
Ll}Ll2O2O 7l3Ll2o2o
S2z,zgg.8g
$7,61,4.37
5125,000.00
S155,408.25
S22,793.88
57,61,4.37
$125,000,00
$tss,cog.z5
u3tl2021 7l3ll2o2l
S22,793.88
57,6L4.37 57,61,4.37
s125,000.00 s125,000,00
$155,408.25
S22,793.88
tl31-l2022 7l3Ll2022 !3r12O23
s22,793.88
57,6L4.31
S125,ooo.oo
s22,793.88
$7,61,4.37
Sz,ogr.gg
s125,000.00 s125,000.00
S155,408.25
S22,308.12
7l3tl2o23
$22,308.12
s7,691.93
S125,ooo.oo
S155,ooo.o5
Ll3Ll2O24 7l3Ll2O24
522,308.12
S7,691.93
$125,ooo.oo
S22,308.12
s7,691.93
u3Ll202s
$22,308.12
s7,691,93
s125,000.00 s125,000.00
$tss,ooo.os Stss,ooo.os
7l3Ll2O2s
s22,308.12
57,691.93
s
522,308.t2
2O2s u3tl2l26 2026
}JLE OF PAYMENTS
Stss,cog.zs Stss,qog.zs Stss,ooo,os
S155,ooo.o5
125,000.00
s155,000.05
$7,691.93
0
S3o,ooo.o5
s30,000.05
7l3Ll2O26
s22,308.12
s7,691.93
0
tlsL/2027 7l3t/2027
522,308,12
S7,691.93
0
Sgo,ooo.os
522,308.12
s7,691.93
0
Sgo,ooo.os
EXHIBIT A TO FINAL ORDER - Nos. L5-CV-77 and 15-CV-60