IRON MOUNTAIN — Settlements have been reached in two tax appeals from property owners in Dickinson County, closing out a total of six filed with the Michigan Tax Tribunal in 2018.

Under the latest settlements, Kingsford Broach & Tool will see the taxable value of its manufacturing facility on Maule Drive in Kingsford fall to $704,720, a reduction of about 48%.

Niagara Development, which operates a private landfill in Breitung Township, will see its taxable value sink to $390,600, a reduction of about 75%.

In earlier settlements, the taxable value for O’Reilly Auto Parts in Iron Mountain was reduced by 28%, dropping to $500,000; the taxable value for Tri-City Cinema 8 in Breitung Township dipped by 26%, falling to $800,000; and the taxable value for the Kmart Plaza complex in Iron Mountain was cut by 40%, dropping to $2.3 million.

An appeal for the Freeman Nursing and Rehabilitation Center in Kingsford has been dismissed by the tribunal after owner Orion Properties failed to answer the city’s legal motions. The city now seeks reimbursement for attorney fees and costs totaling $12,674.

Although the reduction for Niagara Development was dramatic, it was less than what was first sought. The owners had appealed for a total taxable value of $110,000 on numerous parcels, which would have been a reduction of more than $1.46 million, or about 92%.

Breitung Township assessor Mike Gillett said the municipality wasn’t in a strong bargaining position. The settlement reflects “basically what was on the land tables” for other properties, he said. The 557-acre site had been assessed on the value of 22 individual parcels.

Niagara Development, which is limited to accepting low-hazard industrial waste from within Dickinson County, has tried to broaden its operation but has been rebuffed by the county board over traffic concerns.

Kingsford Broach & Tool petitioned for a taxable

value of $205,000, so the city’s settlement in that case represents an improvement of nearly $500,000 over what had been requested from the tribunal.

Any property owner may contest their property values at the tribunal each year, even if they have received reductions in previous years.

Over the past decade, a “dark store” assessment approach has become common. Under the controversial theory, big-box retailers have been able to lower their property tax assessments by comparing the value of their facilities to empty, shuttered stores. The tribunal has also given weight to comparable property sales that include deed restrictions limiting potential reuses.

Tax appeals from Dickinson County property owners that are still being negotiated in 2019 include Wal-Mart Stores Inc., which has a supercenter in Iron Mountain, and PM Lodging LLC, owner of Pine Mountain Resort in Breitung Township and the neighboring Timberstone Golf Course in Iron Mountain.

In Dickinson County, massive settlements in 2017 saw the taxable value of Verso Corp.’s pulp and paper mill in Breitung Township fall by 61 percent from $28.1 million to $11 million, while Systems Control got a 62 percent reduction on the taxable value of its Iron Mountain complex, dropping from $10.3 million to $3.9 million.

Other settlements substantially reduced taxable values for MJ Electric, We Energies, Pine Grove Country Club and Northfield Restaurant Corp. (Pizza Hut).

In preparing a city budget in May, Iron Mountain City Manager Jordan Stanchina estimated that $14.5 million of taxable value had been lost in the previous two years, reducing general fund revenues by about $250,000.

Dickinson County’s budget alone took a $107,180 hit from Verso’s 2017 settlement with Breitung Township, with that loss now carrying forward year after year.

Jim Anderson can be reached at 906-774-3500, ext. 26, or janderson@ironmountaindailynews.com.