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Board sets Rushmore Plaza/Doubletree building assessment at $14.5 million pending appraisals
Summary
The Pennington County board agreed to an assessed value of $14,500,000 for the downtown Rushmore Plaza (formerly Holiday Inn) building for the current roll while county and owner‑hired appraisals are completed.
The Pennington County Equalization Board recorded an assessed value of $14,500,000 for the downtown Rushmore Plaza building (the former Holiday Inn, recently rebranded to a DoubleTree) after discussion about recent court rulings, prior settlements and pending independent appraisals.
County staff noted the property's 2023 litigation history: a court set the 2023 value at approximately $12,130,000 following a dispute with the property owner. For the 2024 roll the parties reached a settlement near $14,500,000. The county’s 2025 mailed assessment had been $19,737,400 (building only; the city owns the land under a separate parcel). The county and the owner have each contracted independent appraisers; county staff told the board both sides expect completed appraisal reports but that financial information exchange and non‑disclosure agreements have delayed final reports.
Shannon, the county director of equalization, explained the parcel under appeal is the building only because the land parcel is owned by the city. She said state law requires that city land leased to a taxable user for three years or more can be taxed, and that separate billing and payment‑in‑lieu arrangements affect how property and payments are treated on the rolls. The county stated an intention to use the hotel‑per‑door income model it applies to other local hotels, but the department also acknowledged the property owner is undertaking a substantial property improvement plan (PIP) that will take rooms out of service while work is done and could affect near‑term income figures.
After discussion about prior court outcomes and the timing of pending appraisals, the board voted to adopt an interim assessed building value of $14,500,000 for the current roll and to consider the independent appraisal(s) when they are delivered. County staff said if its contracted appraisal comes in lower the county will accept the lower value; if the owner's appraisal is higher, the county will continue to defend its model and values as necessary.
The board asked staff to record the action and to monitor incoming appraisal reports; parties may pursue further administrative or judicial review following delivery of the independent appraisals.
