West Loop Associates, LLC v. Property Tax Appeal Board
2017 IL App (1st) 151998
| Ill. App. Ct. | 2017Background
- West Loop Associates owned an 18-story, multi-tenant office building at 550 W. Jackson, Chicago, and appealed Cook County assessments for tax years 2009–2011 after the board of review reduced assessed value to $70.4M; West Loop sought a $58M valuation (Murphy), while intervenors (City and CBOE) submitted a $73.8M valuation (Dart).
- The three appeals were consolidated; PTAB held an administrative hearing after the City and CBOE intervened and submitted appraisals; PTAB must determine fair cash (market) value using appraisal evidence and accepted valuation approaches.
- Murphy (West Loop) relied primarily on an income approach (and used that approach to adjust his sales-comparison and cost approaches), producing ~$58M; his reports contained missing pages, boilerplate errors, undisclosed comparables, and above-the-line deductions for items customarily below-the-line.
- Dart (City) performed independent sales-comparison and income approaches (no cost approach), documented adjustments, used market data for CAP rates, and concluded $73.8M; Byrnes (CBOE) credibly critiqued Murphy’s methodology.
- Before the hearing, City moved in limine under PTAB rules to bar West Loop from disputing the City expert’s description/condition evidence because West Loop failed to respond to the expert’s written request for inspection; PTAB granted the motion; West Loop objected and appealed PTAB’s ultimate valuation increase to $73.8M.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Motion in limine timeliness (21‑day response rule) | West Loop: City filed motion 5 days before hearing; rule allows 21 days to respond; PTAB abused discretion by ruling so late. | City/PTAB: 21‑day response provision does not require 21‑day lead time for filing; PTAB may rule sooner and interpreted its rules reasonably. | PTAB did not abuse discretion; timing was reasonable and not plainly erroneous. |
| Motion in limine substance (denial of inspection under 86 Ill. Adm. Code 1910.94) | West Loop: Failure to respond to inspection request was not an affirmative denial; City’s motion lacked a detailed record of reasonable attempts to resolve access issues. | City/PTAB: Dart’s written request and certified receipt showed failed access; PTAB reasonably treated lack of response as equivalent to denial and motion complied with 1910.94. | PTAB properly applied 1910.94; the motion sufficiently documented the failed access and exclusion was narrow. |
| Evidentiary prejudice from limine ruling | West Loop: Ruling cast a pall and materially limited cross-examination and evidence, warranting reversal/remand. | City/PTAB: Ruling only barred evidence disputing basic description/condition (which was not seriously contested); no showing of excluded material evidence or offer of proof. | No demonstrable prejudice; West Loop failed to identify excluded evidence or make offer of proof; ruling did not result in substantial injustice. |
| Weight given to appraisal methodologies / manifest weight of evidence | West Loop: PTAB erred as a matter of law by giving Murphy’s valuation no weight and by improperly rejecting his methods; contends valuation approach questions require de novo review. | PTAB/Intervenors: PTAB evaluated credibility and methodology, found Murphy’s approaches self‑validating, internally inconsistent, and inadequately supported; Dart’s independent analyses were credible. | PTAB’s factual credibility findings are prima facie correct; the decision to credit Dart and reject Murphy was not against the manifest weight of the evidence. |
Key Cases Cited
- Chrysler Corp. v. Illinois Property Tax Appeal Board, 69 Ill. App. 3d 207 (Illinois App. Ct.) (fair cash value = fair market value; outlines three valuation approaches)
- Cook County Board of Review v. Property Tax Appeal Board (Omni), 384 Ill. App. 3d 472 (Ill. App. Ct.) (use of multiple valuation approaches and weighing disparate results)
- Residential Real Estate Co. v. Illinois Property Tax Appeal Board, 188 Ill. App. 3d 232 (Ill. App. Ct.) (agency factual findings are prima facie correct on review)
- Kankakee County Board of Review v. Property Tax Appeal Board, 316 Ill. App. 3d 148 (Ill. App. Ct.) (prejudice requires preservation by offer of proof when evidence is excluded)
- Schuler v. Mid-Central Cardiology, 313 Ill. App. 3d 326 (Ill. App. Ct.) (motion in limine is interlocutory and admissibility can be revisited at trial)
- McCleary v. Board of Fire & Police Commissioners, 251 Ill. App. 3d 988 (Ill. App. Ct.) (reversal for evidentiary rulings requires showing of prejudice)