The Vanderburgh County Property Tax Assessment Board of Appeals on Nov. 5 voted to table an appeal from La Posada Group LLC challenging the 2025 assessment for the Fairfield Inn and Suites at 7879 Eagle Crest Boulevard until the taxpayer provides a detailed breakdown and schedule for a planned improvement program (PIP).

The county told the board it had equalized hotel values across the class and set the new 2025 assessment at about $48,173 per room. County staff said they reviewed the motel's income and market indicators and were concerned the owner's reported expense ratio (about 85 percent) was substantially higher than market norms.

Brian (staff member) told the board that, while the county used market data and comparable sales in the area, the owner's reported expense ratio and the lack of a clear condition issue made it difficult to justify a reduction. "I didn't really... I mean, there could be more explanation today," Brian said during the presentation, noting the county had also consulted outside appraisers. Taxpayer representatives provided a broker opinion of value and a Jones Lang LaSalle appraisal that included a PIP and a discounted cash flow analysis.

Taxpayer representatives said the appraisal and broker opinion accounted for a PIP estimated at about $3,500,000 and argued that the cost and timing of those improvements should reduce the current market value. "Based on that PIP, they were anticipating a projected income to increase," the taxpayer's representative said, describing how the appraisal adjusted future income to reflect the improvement program. The broker further explained he stabilized the subject's expense ratio at 79 percent in his analysis and used a 9 percent capitalization rate to derive an indicated value lower than the county's assessment.

Board members pressed for more detail on the PIP. One member asked, "The $3,500,000 number, who developed that number? Where'd that number come from?" The taxpayer's representative said the estimate came from the client and that a line-item breakdown and the intended timing of the work were not yet in the record. County staff and board members made clear that whether the PIP cost should be applied all at once or allocated over multiple years is material to how it affects a discounted cash flow valuation.

After that exchange the board voted to table the appeal and requested the taxpayer provide a detailed breakdown of the PIP cost and the schedule for implementation so staff and the board can reassess the income and expense evidence.

The board did not change the assessment at the Nov. 5 hearing. The appeal will be re-opened when the requested documentation is received.