By Joe Ragusa
NORMAL – The Unit 5 school board has approved a settlement with Mitsubishi over a challenge the automaker filed against its property values.
The challenge was meant to lower Mitsubishi’s property tax obligation and Unit 5 stands to lose about $160,000 in tax revenue over the next two school years because of the settlement.
Unit 5 attorney Curt Richardson said fighting the appeal rather than settling would’ve cost at least $100,000.
“Considering the cost, the expense, the risk in that, we felt like we ended up in a pretty good situation and made the best out of a bad situation,” Richardson said.
Richardson said the district earned a victory by negotiating a two-year agreement instead of a one-year agreement.
“That was for budgeting purposes to provide some stability,” Richardson said.
Mitsubishi lowered its overall property tax obligation by about $205,000 in the settlement. It’s still pending a 30-day appeals period that expires early next month.
Richardson said Unit 5 could have lost $313,000 in property tax revenue under Mitsubishi’s original challenge.
Joe Ragusa can be reached at joe.ragusa@cumulus.com.
