Page 1

SrarB or WtscoNsrx

KpwluNBB CouNrv

Crncurr Counr

DotvttNloN ENrRcv KBwauNBE, INC., PLe,INTTFp,

casBNo. 15-CV-77

V.

TowN or Ca.nr-roN, DEFENDANT.

JUN 0 7

?afi

ffifmrffi"

DovrrNroN ENBncv KBweuNnE, INC., PLemupp,

Casr No. 16-CV-60

.v.

TowN on ClRrroN, DBpeNoeNr.

Frxal OnoBn

The Court issues the following as its Final Order in these consolidated cases:

1.

These excessive assessment actions under WIs. Srer.574.37 were brought by

DoumroN ENeRcy KnweuNne,INc. (DEK) against the TowN on CeRI-roN (Town) for tax years 2015 and 2016. Those actions are now consolidated before this Court.

2.

The property at issue consists of five parcels of real property plus personal property

that DEK owns in the Town, which collectively comprise the former Kewaunee Power Station that DEK closed in 2013 (collectively, the Property). The real property at issue is identified on

the Town's records as Tax Parcels 31 004 25.GLz,

31 004

31 004 36.GL1 and 31 004 36.GL2; and the personal property

25.GL3,

31 004 25.GL4,

is identified on the Town's

records as Account No. 31 004 PP 24 (formerly Account No. 0017).


3.

The Town's aggregate assessment of the Property for 2015, as corrected, was

$451,322,600, and the Town's aggregate assessment of the Property for 2016, as corrected, $468,894.500.

4.

DEK and the Town have resolved their dispute over the 2015 and 2016

assessments

of the Property. That resolution is set forth in a binding Settlement Agreement which was approved by the Town Board on January 14,2017 and filed with this Court on January 31,2017

(Settlement Agreement). Under the Settlement Agreement, both the 2015 and 2016 aggregate assessments of the Property were reduced to $15,000,000.

5.

DEK and the Town have agreed that the $15,000,000 aggregate assessments for both

2015 and 2016 shall be allocated among the real property parcels and personal property account comprising the Property as follows: ParceUAccount

Assessment

31 004 25.GL2

$528,800

31 004 25.GL3

$555,900

31 004 25.GL4

$12,604,600

31 004 36.GL1

$748,400

31 004 36.GL2

$s62,300

31 004 PP24

6.

$o

The Court approves and adopts the 2015 and 2016 assessments of the Property

agreed to by

DEK and the Town, and the Court

sets those assessments as the

as

final assessments of

the Property for each of those years, as previously set forth in the Court's Order entered on April

20,20t7.

7.

As a result of the reduction of the 2015 and 2016 aggregate

assessments

of

the

Property to $15,000,000, DEK has overpaid 2015 tax on the Property in the aggregate amount of


$5,908,560.73,and DEK has (or will have) overpaid 2016tax on the Property in the aggregate amount of $5,999,051.29, for a total overpayment of $11,907,612.02.The parties agree, and the

Court finds, that the overpayment amounts set forth in this paragraph are the coffect amounts, notwithstanding the slightly different amounts set forth

in paragraph 3 of the Settlement

Agreement.

8.

As a result of the overpayments described in paragraph 7 of this Final Order, DEK is

due a refund from the Town of $1 1,907 ,612.02.

9,

DEK and the Town have agreed, as part of the resolution of these actions, on

a

procedure for the Town's payment of the $11,907,612.02 refund to DEK identified in paragraph 8 of this Final Order, consistent with the Settlement Agreement, DEK and the Town have further agreed as part of the resolution of these actions for certain supplemental payments to be made by

DEK, to mitigate the fiscal stress to the Town and to Kewaunee County occasioned by the loss of

tax revenue, and by the cessation of public utility distribution payments to the Town and to Kewaunee County under Wts.

Srer. $79.04 resulting from the closing of the former Kewaunee

Power Station. The procedures to implement these agreements, which the Court hereby approves and orders, are set forth in paragraphs

l0 through 20 of this Final

Order.

INapLsNasNreuou Op RpnuNo To DEK

10. The $1I,907,612.02 refund to DEK shall be paid by the Town in ten installments between 20T7 and 2026 (Partial Refund), under the procedures set forth in

l1 through

13

of this

Final Order, which apply for each of the years 2017 through 2026. DEK and the Town have agreed, and the Court finds, that

forthe years 2017 through2O2l, the Partial Refund shall be in

the amount of $i, I8t,712.15; and for the years 2022 through 2026 the Partial Refund shall be in the amount of $1,199,8t0.26.


1

1.

On or before July 1 of each of the years 2017 through 2026, the Town shall issue to

DEK a check in the Partial Refund amount specified in paragraph 10 of this Final Order (Partial Refund Check). The Town shall make all good faith efforts to ensure that each Partial Refund Check is fully negotiable through and including the last day of February of the year following the

year the check is issued. In the event any Partial Refund Check is dishonored at the time DEK attempts to negotiate

it in accordance with paragraph 13 of this Final Order, the Town

shall,

within three business days after being notified of that fact by DEK, issue and send to DEK

a

replacement Partial Refund Check in the fulI amount of the original Partial Refund Check, which

DEK may immediately proceed to negotiate.

12. Upon issuance of the Partial Refund Check to DEK, the Town shall immediately apply to the Wisconsin Department of Revenue to charge back the Partial Refund for that year to

the other taxing jurisdictions for which the Town collects taxes, i.e., Kewaunee County, the Kewaunee School District, Northeast Wisconsin Technical College and the State of Wisconsin

(collectively, Other Jurisdictions) pursuant to Wts. Srar. $74.:41.

13. The Partial Refund Check shall be held in trust by DEK

and shall not be deposited or

disbursed by DEK until the earlier of (a) February 20 of the year following the year the Partial

Refund Check is issued, or (b) such earlier time as the Town advises DEK that all chargeback amounts

it

has requested under Wts.

Srer. *74.41 for the year for which the Partial Refund

Check was issued have been paid to the Town by the Other Jurisdictions.

14. In accordance with paragraph

4 of the Settlement

Agreement, and subject to

paragraphs 19 and 20 of this Final Order, during the year following the year in which each Partial Refund Check is issued, DEK shall pay to the Town an amount equal to the Town's share

of the Partial Refund for the year for which the Partial Refund Check was issued. DEK and

the


Town have agreed, and the Court finds, that for the years.2077 through 2021, this amount shall be $45,587.75; and for the yearc 2022 through 2026, this amount shall be $44,616.23. These amounts shall be paid by DEK under the procedures set forth in paragraph l8 of this Final Order.

15. During the year following the year in which each Partial Refund Check is

issued,

and subject to paragraphs 19 and20 of this Final Order, DEK shall pay to the Town an amount

equivalent to an annualized rate of 2Vo of the amount of the Partial Refund Check, for the period between July 1 of the year the Partial Refund Check is issued and February 20 of the following

year. DEK and the Town have agreed, and the Court finds, that for the years 2017 through2021,

this amount shall be $15,228.75; and for the years 2022 through 2026, this amount shall be $15,383.87. These amounts shall be paid by DEK under the procedures set forth in paragraph 18

of this Final Order. SUppI-SN4BNTAL PAYMENTS

To Trrs TowN ANn To KnwauNnB CouNry

16. For each ofthe years20t7 through 2024, and subject to paragraphs 19 and 20 ofthis Final Order, DEK will pay the Town $250,000 in accordance with paragraph 7 of the Settlement Agreement. These amounts shall be paid by DEK under the procedures set forth in paragraph 18

of this Final Order.

17. For each of the years 2017 through 2026, DEK will pay to Kewaunee County $500,000, payable

in two

equal installments on

or before the

respective dates on which

installment payments of property tax are due for that year, i.e., January

following year.

3l

and July 31 of the


PRoCEDURES FoR

PIyueNrs To Trm TowN

18. Subject to paragraphs

19 and 20 of this Final Order, the payments from DEK to the

Town specified in paragraphs 14, 15 and 16 shall be made in two equal installments, on or before January 31 and July 31 of the year those payments are due, according to the Payment Schedule

which is Exhibit A to this Final Order and is expressly made a part of this Final Order.

19. In accordance with paragraph 8 of the Settlement Agreement, between 2017 and 2024, the aggregate assessment

if, for any year

of the Property as computed under the

Settlement Agreement exceeds $15,000,000, paragraphs 14, 15 and 16 of this Final Order permanently become void and DEK

will

wili have no obligation to make the payments described in

paragraphs 14, 15 and 1 6 of this Final Order for that year or for any remaining year through and

including 2021.

20. In

accordance

with paragraph 9 of the Settlement Agreement, if, for any year

between 2017 and2024, the Town enacts or implements a fee in violation of paragraph 9 of the Settlement Agreement, paragraphs 14, 15 and 16 of this Final Order

will

permanently become

void and DEK will have no obligation to make the payments described in paragraphs 14, 15 and 16 of this Final Order

for that year or for any remaining year through and including

Based on the foregoing,

Z0Z1

.

IT IS IIEREBY ORDERED

A.

That the aggregate assessment of the Property for 2015 is set at $ 15,000,000;

B.

That the aggregate assessment of the Property for 2016 is set at 915,000,000;

C.

That the individual assessments of the real property parcels and personal property

account comprising the Property are set at the following amounts for both 2015 and 2016:


ParceUAccount

Assessment

31 004 25.GL2

$528,800

31 004 25.GL3

$555,900

3r 004 25.GL4

$12,604,600

31 004 36.GL1

$748,400

31 004 36.GL2

$562,300

31 004 PP24

$0

D.

That DEK is due a refund from the Town of $ I 1,907,612.02:

E.

That the parties shall comply with the procedures set forth in paragraphs 10 through

20 of this Final Order with respect to implementation of the refund of overpaid 2015 and 2016 tax to DEK, and all payments from DEK to the Town and Kewaunee County;

F.

That these actions are hereby DISMISSED WITH PREJUDICE, subject to the right

of either party to move to reopen these matters in the event of a violation or alleged violation of this Final Order or of the Settlement Agreement.

This constitutes a Final Order for purposes of appeal under Wls. Srar. $808.03(1).

SO ORDERED THIS

HoN. D. Tono Em-Bns BRnNcu I, DooR Corxrv

02't

3

I

1

-OO24U1098390. I

CrncurCounr


SCH'

Tax

Payment

Year Payment Date 2017 tl3tlz0Lg 2018 2019 2020 2021. 2022 2023 2024

7l3u2it8 tl3ll2ote

7lltlztte

under

11 14

UNDER FINAL ORI'

Payment

under

11 15

Payment

under

11

Total Payment

16

$7,614.37

s125,000.00

s22,793.88

57,61,4.37

S22,793.88

5z,atq.y

s125,o0o.oo s125,000.00

$22,793.88

$tss,aog.zs $tss,cog.zs S155,408.25

522,793.88

57,6'1.4.37

5125,000.00

Stss,cog.zs

Ll}Ll2O2O 7l3Ll2o2o

S2z,zgg.8g

$7,61,4.37

5125,000.00

S155,408.25

S22,793.88

57,61,4.37

$125,000,00

$tss,cog.z5

u3tl2021 7l3ll2o2l

S22,793.88

57,6L4.37 57,61,4.37

s125,000.00 s125,000,00

$155,408.25

S22,793.88

tl31-l2022 7l3Ll2022 !3r12O23

s22,793.88

57,6L4.31

S125,ooo.oo

s22,793.88

$7,61,4.37

Sz,ogr.gg

s125,000.00 s125,000.00

S155,408.25

S22,308.12

7l3tl2o23

$22,308.12

s7,691.93

S125,ooo.oo

S155,ooo.o5

Ll3Ll2O24 7l3Ll2O24

522,308.12

S7,691.93

$125,ooo.oo

S22,308.12

s7,691.93

u3Ll202s

$22,308.12

s7,691,93

s125,000.00 s125,000.00

$tss,ooo.os Stss,ooo.os

7l3Ll2O2s

s22,308.12

57,691.93

s

522,308.t2

2O2s u3tl2l26 2026

}JLE OF PAYMENTS

Stss,cog.zs Stss,qog.zs Stss,ooo,os

S155,ooo.o5

125,000.00

s155,000.05

$7,691.93

0

S3o,ooo.o5

s30,000.05

7l3Ll2O26

s22,308.12

s7,691.93

0

tlsL/2027 7l3t/2027

522,308,12

S7,691.93

0

Sgo,ooo.os

522,308.12

s7,691.93

0

Sgo,ooo.os

EXHIBIT A TO FINAL ORDER - Nos. L5-CV-77 and 15-CV-60

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