Citing concerns about the effect on other country clubs, the Garland County prosecutor's office filed a motion Wednesday to set aside the mediation order entered in the Hot Springs Golf and Country Club Association's property tax lawsuit against the county.
Prosecuting Attorney Terri Harris said negotiating a lower appraisal could require the county assessor's office to lower assessments on other country clubs such as Diamondhead Golf and Country Club and those in Hot Springs Village. The county's contractor appraiser, Arkansas CAMA Technology Inc., raised the issue, Harris said.
"There's a concern that if we made any sort of agreement to reduced the assessed value of the two parcels at issue, it could very well necessitate a reduction for similarly situated properties," said Harris, who's representing the county in the lawsuit the country club filed in December.
Special Judge Tom Smitherman ordered the two sides into mediation in July. The county's motion has asked that a bench trial be scheduled.
Harris said a lower appraisal was negotiated during mediation ordered in the Hot Springs Mall's property tax lawsuit because there are no similar properties in the county that would've been affected. The mediation order entered in August lowered the mall's appraised market value by more than half, appraising it at $8.6 million.
"We had a different situation with the mall," Harris said. "Since there are no other indoor malls in the county, we didn't have to contend with that particular issue."
The country club appealed the county's $7,679,850 appraisal of the 100-acre parcel that includes the clubhouse and most of the Arlington Course and the $2,249,950 appraisal of the 147 acres that comprises the Park Course to the Garland County Equalization Board last September.
The country club appealed to County Judge Rick Davis after the equalization board upheld the county's appraisal on both parcels. Davis lowered the former to $7,582,400 and the latter to $2,202,600, reducing the country club's 2015 property taxes by $1,196 to $84,252. The 41.30 mills levied on the country club's six parcels are applied to 20 percent of their appraised market value.
The complaint filed last December called Davis' valuation "arbitrary" and "manifestly excessive," asserting that it didn't reflect true market value.
Local on 09/30/2016