Woods to Net $315,000 for Lake Front Park Tax Refund

In a time when many cities are losing taxable revenue, Grosse Pointe Woods is in line for a big tax refund.

Grosse Pointe Woods city council Monday backed a settlement of the tax appeal case that will net the community just under $316,000 from St. Clair Shores.

“It was the biggest case we’ve had,” city attorney Don Berschback said at the special meeting. “I’m really happy for the city.”

The deal affects the amount paid on the taxable value on the park in 2006 through 2010.

The City of Grosse Pointe Woods had gone to trial over the park's 2006-07 value before the Michigan Tax Tribunal in 2009 and the city had appealed that decision.

But before the appeal was heard, the Woods and St. Clair Shores reached a deal.

Under the arrangement, the original taxable value for Lake Front Park in 2006 went from $2.40 million to $1.44 million, netting the city a tax refund of $53,414.10.

The revised tax value drops $25,000 in 2007, ’08, ’09, and ’10, and the full refund for the city will equal $315,934.10.

“Kudos,” said Grosse Pointe Woods Mayor Robert Novitke to Berschback.

Berschback said the St. Clair Shores city council approved the tentative agreement last week and with the unanimous decision from the Woods’ council on Monday, the deal is effectively formalized.

Berschback said the city should receive its first refund payment this summer, perhaps as early as June.