Westfield Trumbull Mall, Southern Conn. Gas Co. Suing over Tax Increases

Flush with a $93 million boost to the Grand List, partly from Westfield Trumbull Mall renovations, the town is facing three suits charging overtaxation.

The mall, Digital 60 & 80 Merritt LLC and SCGC petitioned to the Board of Assessment Appeals and lost. 

First Selectman Tim Herbst said challenges to tax assessments are expected, adding that he trusts Tax Assessor Mark E. DeVestern, whom he appointed in early 2010.

Herbst said DeVestern is a veteran in his field with three decades of experience. DeVestern referred comment to a town attorney.

The mall, also known as Trumbull Shopping Center #2, LLC, claims, "As a result of certain improvements made to the property prior to Oct. 1, 2010, the assessor increased the assessment from $127,237,900 to $145,237,900, an increase of $18 million."

"The assessor has improperly determined the true and actual value of the property," the suit states. "The 'improvements' to the property resulted in a net reduction to retail square footage in the shopping center and did not substantially increase the rental income of the property."

The mall's lawyer in the matter, Peter V. Gelderman, said calculating commercial and residential assessments differs.

"Taxes on commercial property are typically related to income. The [improvements] didn't add income to the mall. As property gets older, you try to make it more attractive," he said.

"Anyone looking at buying that mall would look at the income," he added.

The mall's improvement costs came to $45 million, including construction of a dining terrace and changes in appearance. He estimated the suit could take several months to resolve.

The suit by Digital 60 & 80 Merritt LLC, at 60-80 Merritt Blvd — an office complex — charges that it bought the property for $45,000 on Jan. 22, 2010, while its "true and actual value" was $42,750.

On or before Feb. 1, the assessor reviewed the property and later valued it at $15.2 million. The assessed value, or 70 percent of market value, is $10.64 million, the suit states.

The value is "grossly excessive, disproportionate and unlawful." The suit also accuses the town of illegally adding property during its review.

The assessor also added a 25 percent penalty, claiming "the applicant did not timely file its declaration of personal property," bringing the total to $13.3 million, according to the suit. Digital is disputing the penalty.

Meanwhile, the Southern Connecticut Gas Co. is challenging the assessment of its personal property in town for its valuations in from Oct. 1, 2007 through Oct. 1, 2009.

Before 2009, the property's assessed values were $6.4 million in 2007, $6.4 million in 2008 and $5.1 million in 2009.

Then, on Jan. 24, 2011, an audit was conducted the values increased to $11.2 million in 2007, $11.4 million in 2008 and $11.2 million in 2009.

"During the audit, the assessor for the first time used a 30 percent floor on depreciation, which change in method resulted in the increased assessments," the suit states.

The assessor also added 25 percent of the increase to the taxes from 2007 to 2009 even though the company had complied with regulations.

New Britain Superior Court Judge George Levine hears assessment issues from all over state, according to Gelderman.