IRON MOUNTAIN — A property tax appeal filed by Flagstar Bank has led Iron Mountain officials to seek legal help to settle the case.

A Michigan Tax Tribunal petition filed in May 2025 shows Flagstar seeking a reduction in taxable value from $730,721 to $350,000. The tribunal last month permitted Flagstar to also include a 2026 reduction in its appeal.

At a possible reduction to just $500,000, Flagstar’s protest would result in a loss of about $5,500 in annual city tax revenues, according to City Manager Jordan Stanchina.

Flagstar acquired 52 Wells Fargo branches in the Midwest in late 2018, including 14 in the Upper Peninsula. In an assessment appeal filed with the Michigan Tax Tribunal in 2020, Flagstar had sought a taxable value of $350,000 for its bank branch at 1805 S. Stephenson Ave.

The city at that time had set a 2020 taxable value of $840,200, which it said reflected what Flagstar paid for the property.

Taxable values in Michigan are set at half the true cash value, which can be based on a number of factors, including comparable sales. The purchase price for the bank property in November 2018 was $1,609,083, according to the city.

Flagstar’s new appeal comes “during a period of rising property values,” Stanchina said.

The city council on Monday approved hiring attorney Thomas Dillon of Foster, Swift, Collins & Smith at a rate capped at $330 per hour. In past tax cases where the city has hired outside legal help, total fees have been under $10,000, Stanchina said. There may also be an appraisal cost, he noted.

In other action, the council:

— Renewed its water and sewer systems telemetry service agreement with P.J. Kortens and Company Inc. of Appleton, Wis., at a quarterly fee of $1,860, up from $1,760.

— Agreed to hire PK Contracting Inc. of Troy for line striping on major streets and pavement markings, including railroad crossings and crosswalks. The estimated cost is upwards of $25,000. Currently, PK is the only contractor qualified to perform this type of work, Stanchina noted.

— Approved a partial closure and use of the city parking lot at the intersection of East Hughitt and Iron Mountain streets from noon to 4 p.m. Sunday, Sept. 13, for the Hope 2 Help Suicide Awareness The event is organized by Dickinson-Iron Communities That Care.

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Jim Anderson can be reached at 906-774-2772, ext. 85226, or janderson@ironmountaindailynews.com.