Kcp Hastings, LLC, Relator v. County of Dakota

Summary

The court upheld most aspects of the Minnesota Tax Court's valuation of KCP Hastings's shopping mall but found clear error in assigning development value to an outlot and in disregarding the parties' stipulated gross building area. The court also upheld the tax court's admission of the County's supplemental discounted-cash-flow analysis, rejection of KCP's appraisal assumptions, selection of capitalization and discount rates, and allocation of valuation weight between the income and sales-comparison approaches. The case was remanded for a revised valuation limited by the stipulated building area and by treating the outlot as additional parking rather than speculative commercial development.