Big-box property tax assessment appeals could cost Merrillville millions

Big-box stores are basing appeals on the value of vacant stores. Swintz told town officials Meijer, Menards, Lowe's, and Costco all have pending appeals for their locations in Merrillville. Each of the appeals is in various stages and some go back several years.

If those appeals are successful and the assessed values of those properties drop by 35 percent, Merrillville would owe refunds of $1.3 million to Meijer, $747,000 to Menards, $1.06 million to Lowe's and $103,000 to Costco. Swintz said those amounts don't include interest.

It's unknown at this time if the appeals will be approved or how much the assessed values of the properties would decrease. The amounts associated with the 35 percent reductions are currently being viewed as worst case scenarios, town officials said.

Town Attorney John Bushemi said any potential refunds could be paid back over a five-year period.

The stores seeking appeals are located in the Merrillville Road and Mississippi Street tax increment financing districts, and the town has bonds associated with those districts.

Swintz said repaying debt in those TIF districts doesn't appear to be an issue if the appeals are successful, but it is questionable if the town would be able to pursue other projects it intends to fund with TIF money.

“You have to really look close at what you want to do, what your projects are,” Swintz said.

Successful appeals also could affect an educational program the Redevelopment Commission has in place because there would be less funding available in those districts.

Last year, the commission approved a plan to provide $310,000 grants each year through 2019 to the Merrillville Community School Corp. for college and career readiness programs in schools.

The town designated TIF district funding to pay for the grants. Municipal redevelopment commissions are allowed to commit up to 15 percent of the fund balance from TIF districts each year to education grants.

Schererville and St. John are among local communities also are facing big-box property tax assessment appeals. Merrillville is collaborating with those municipalities to fight the appeals. A meeting involving officials from the communities is expected to occur in early June to continue those efforts.