Results
$0
Total Reduction
$0
Total Tax Savings
Overview
A Food4Less supermarket in Corona faced a significant decline in business due to the city’s exercise of eminent domain. The city’s plan to elevate the property’s street frontage reduced both its access and visibility along the busiest commercial corridor in the area, adversely impacting the property’s market value even before the new improvements were initiated.
Challenge
The loss of visibility and access meant that the tenant would eventually be forced to vacate the premises. Despite this, the county opposed a reduction in the property’s taxable value, citing the market listing price, which exceeded the current taxable value. According to Section 402.1 of the Revenue & Taxation Code, all enforceable governmental restrictions on property value must be taken into consideration.
Solution
At the formal appeal hearing, Protax LLC presented a comprehensive case demonstrating the property’s diminished value. This included:
- Comparable sales of similar vacant big-box properties.
- A discounted cash flow analysis that accounted for the future loss of income due to vacancy, lower estimated market rental rates, and additional holding and lease-up costs.
Results
Protax LLC secured over $25,000 in refunds, providing critical financial relief to the client during a period of declining business.