Maine Mall appeal may end Monday

Nearly $1 million in property taxes for South Portland at stake

Undaunted by the December rejection of a 2006 tax appeal, the owners of the Maine Mall have gamely gone forward with an appeal of the sprawling complex’s property assessment for 2009.

A series of three meetings convened in late April by South Portland’s Board of Assessment Review will culminate in what’s described as an “all-day” meeting on Monday, May 23. According to City Assessor Elizabeth Sawyer, the board could decide on the case that day.

What’s at stake is nearly $1 million in property taxes that the mall owner, Chicago-based General Growth Properties (GCP), claims it was overbilled in 2009.

GCP, the second-largest owner of mall property in the United States, is contesting nine of 12 lots it owns on and around the Maine Mall. 

The city values those properties at $242.7 million, using a method of assessment for commercial revenue-producing property, which is based largely on gross revenue realized in each store. GCP claims those properties should only be assessed at $181.9 million, a difference of $60.9 million.

Complicating the case is the fact that Superior Court has sealed some records at GCP’s request, as it considered the per store revenue at the heart of the case to be proprietary information

Based on South Portland’s $14.70 per $1,000 valuation property tax rate for 2009, the city would have to return $896,465 if it losses the case. GCP paid $3.7 million in property taxes to South Portland in 2009.

“Every taxpayer in the city pays its fair share,” said City Manager James Gailey. “In the Mall's case they feel they are over assessed. If valuation is reduced, the budget is either cut due to the inability to raise funds at an appropriate level, or every taxpayer brunt's the impact and pays more to keep the same level of services.”

Even if the city wins, there are still costs involved. So far, the city has piled up more than $5,000 in legal fees beating back the abatement request, says Gailey, while the city council recently appropriated an additional $50,000 for legal fees.