County assessor asks Burns Harbor to commit up to $23,000 to fight Cleveland-Cliffs assessment appeal

County Assessor asked the Burns Harbor Town Council to prepare to contribute up to $23,000 toward defending a state-certified assessment that Cleveland-Cliffs has appealed, saying the town faces an estimated ongoing loss of about $77,000 in annual property tax revenue if the appeal succeeds.

The assessor told the council the Department of Local Government Finance revised cost factors this year and the change increased Cleveland-Cliffs' assessment statewide; that increase translates into about $350,000 in reduced revenue across local taxing units, and roughly $77,000 of that would fall on Burns Harbor. The assessor said defending an appeal before the Indiana Board of Tax Review (IBTR) typically requires an appraisal and expert testimony and estimated the total defense cost at about $100,000.

Why it matters: If the assessment is reduced on appeal, the reduction would permanently reduce annual property-tax revenue for the town, county, school corporation and library. The assessor said the county and school corporation have agreed in principle to share costs and that library trustees are considering participation.

What the assessor requested: The assessor outlined a two-phase appraisal approach. Phase 1 would be a site-focused review that he estimated at $25,000–$35,000 (he used $35,000 as a conservative upper estimate). If Phase 1 showed the state assessment differed materially, Phase 2 would produce a USPAP-compliant written appraisal and expert testimony for an IBTR hearing; associated court, travel and expert costs could bring total expenses to about $100,000. The assessor said the county would budget $20,000, the school corporation has been asked for up to $50,000, the library indicated it would contribute $10,000, and he requested Burns Harbor consider up to $23,000. He said the town would not be billed until invoices arrive and that a memorandum of understanding (MOU) would specify participation and limits.

Council response and next steps: Council members asked procedural and timing questions about public records, whether the assessor or the state had physically inspected the mill, and how evidence exchange with IBTR works. The assessor said evidence is exchanged 10 days before a scheduled IBTR hearing, and that his hope is to negotiate a settlement with Cleveland-Cliffs after receiving a Phase 1 appraisal rather than proceed to a contested hearing. He also said appraisals could show a higher value in some cases, but that cannot be guaranteed.

The council did not commit funds at the meeting. The assessor said he will provide a proposed MOU for the town attorney and council to review; council members asked to place the proposed MOU on a future agenda so their attorney can review it before any money is pledged.

Clarifying details from the meeting: the assessor named the Indiana Board of Tax Review (IBTR) and the Department of Local Government Finance (DLGF) as the administrative pathway for this matter; he estimated Phase 1 appraisal at roughly $25,000–$35,000 (used $35,000 as a working figure), total defense costs at about $100,000, Burns Harbor share requested up to $23,000, county $20,000, school corporation up to $50,000 and library $10,000. He said Cleveland-Cliffs' appeal covers 32 parcels and that the county’s projected direct annual revenue loss is about $60,000 if the state assessment stands as appealed.

Ending: The assessor said he will continue coordinating with Lake County Assessor Latonya Spearman and with state legislators about how large industrial assessments are handled; he asked the town to review the forthcoming MOU and consider participation within the timeline for the appraisal work, which he said he hopes can begin within about three months.