Elk Grove Promenade Developer Gets Slapped In Minnesota Tax Appeal

Chicago-based General Growth Properties (GGP), developer of the half-constructed Elk Grove Promenade, got a rude awakening when a tax judge not only denied their request for a lower property assessment, but instead was slapped with a substantially higher appraisal.

GGP, which has been operating in the Chapter 11 bankruptcy follow its historic collapse in April, challenged the assessed value of its Eden Center Prairie mall in Eden Prairie, Minn. The developer claimed the value of the mall should have lower than it’s assessed value of $72.7 million in 2005 and $65.3 in 2006.

Not only did Judge Sheryl Ramstad disagree with GGP, she also reassessed the properties to $137.7 million in 2005 and $130.6 million for 2006. As a result, GGP’s tax bill increased by $1.8 million for both years.

GGP has not commented as to whether or not it will appeal the Tuesday ruling.
Tonight the Elk Grove City Council will discuss possible legal actions against GGP in their closed session.

Originally dubbed the Lent Ranch Mall after previous property owner and longtime Elk Grove resident Bob Lent, construction of the south Elk Grove mall has been stalled for over a year and has become a source of embarrassment and emblematic of the excesses the real estate bubble which has been particularly problematic for Elk Grove.