Vermillion council maintains Hy-Vee assessment despite appeal for reduction

Hy-Vee's property assessment sparked heated discussions during the April 15, 2025, Clay County Commission meeting, as officials weighed the grocery store's appeal for a significant reduction in its assessed value. The store, built in 1986 with an expansion in 2002, is currently valued at $2,000,005.96, but Hy-Vee is seeking a decrease to $1,000,009.97.

The crux of the debate centered on Hy-Vee's income analysis, which reported a rental rate of $5.50 per square foot, leading to a potential gross income of $2,218,887. However, concerns arose regarding the store's claimed 10% vacancy and collection loss, as well as another 10% in unspecified expenses. County officials expressed frustration over the lack of detailed financial information from Hy-Vee, despite multiple requests for audited income data.

Commissioners noted that local retail properties typically do not experience vacancy, with the last recorded vacancy occurring before a new tenant moved in. After removing the vacancy loss from Hy-Vee's calculations, officials estimated the property value at approximately $2,000,002.18, aligning with the market rate of $55 per square foot.

Ultimately, the commission voted to maintain Hy-Vee's original assessed value, with one commissioner highlighting the disparity between Hy-Vee's appeal and the assessed values of similar properties in neighboring counties, which are valued at over $4 million. The decision reflects a commitment to uphold fair property assessments based on market realities, despite the grocery chain's push for a lower valuation.