New Jersey Assemblyman Chris Brown has called for a 5-year property tax freeze in Atlantic City along with an even further drop in casino tax assessments. According to NBC 40, Brown claims that businesses in Atlantic City have already endured a 52% increase in their taxes over the past two years, and that a 5-year tax freeze would allow time for Atlantic City to cut costs and bring stability.
A recent ruling from the U.S. Bankruptcy Court will allow Atlantic City, NJ to collect up to $30 million in unpaid property taxes from the former Revel Casino Hotel. According to The Wall Street Journal, Judge Gloria Burns lifted the bankruptcy code's shield on protecting Revel from litigation and creditor collections, with the caveat that the city wont be able to tack on penalties.
By Jack Nash, Northeast Area Leader / Principal, Philadelphia
Categories: Distribution Centers, Personal Property, New Jersey, Office, Industrial, Real Property, Resorts, Bankruptcies, Gaming / Casinos, Apartments, Hospitality, Retail, Paradigm Info, Hotels, Multi Family, Warehouse, Economy
Due to complaints of widespread over-assessments, the Michigan State Tax Commission, which is responsible for setting property taxes, approved plans to overhaul the troubled department. Detroit will go through a $10 million citywide reassessment of all 386,000 parcels, both commercial and residential, by December 2016 as a part of a corrective action plan, a reform the city announced it would implement last fall.
A U.S. bankruptcy judge in Detroit, Michigan confirmed on Thursday that property tax appeals will be heard, despite the city's bankruptcy and hundreds of refunds put on hold for property owners appealing their taxable values last month. This is good news for property owners; however, it is unclear when owners will receive their refunds if their assessment appeals are approved by state officials.
Detroit, Michigan has filed the largest municipality bankruptcy case in the nation's history, ultimately succumbing to the pressures of massive population loss, a shrinking tax base and financial problems. According to The Detroit News, Governor Rick Snyder justified approving the historic filing by reciting a litany of the city's ills, including more than $18 billion in debt, maxed-out tax rates, the highest murder rate in 40 years, 78,000 abandoned buildings and a half-century of residential flight.
A strategy by a Nevada real estate company may set a new precedent for investors attempting to reorganize under Chapter 11 bankruptcy protection. According to the National Real Estate Investor, by merging several single-asset operating companies, Whitton Corp. has avoided onerous restrictions that federal bankruptcy law places on property owners with only one asset. The U.S. bankruptcy court has allowed Whitton to file, even though most of its creditors claim they showed bad faith by merging the day before.
A lingering cloud of uncertainty remains as the economy entered a period of stagnation a few months back as confirmed by an August job report. According to GlobeSt.com, despite the disappointing job figures, drivers that make investing in commercial real estate favorable are still intact. The main reason for this is the fact that corporations are remaining cautious, but not panicking. Also, consumer spending habits have obviously changed in the past three years, but they are not pulling back on spending in a pattern that would cause for severe panic.
Borders Group has filed for reorganization relief under Chapter 11 of the Bankruptcy Code, a forgone solution for the company by many analysts in the commercial real estate industry. According to an article from the National Real Estate Investor, Borders lacks the capital resources essential for it to move forward with its business strategy to reposition itself successfully for the long-term. Chapter 11 will give the company a chance to infuse capital and reorganize itself into a new position in the market.
New data points, such as the delinquency rate for securitized commercial real estate loans falling in October for the first time in more than a year, are painting a picture of slowly moderating pain in commercial real estate. According to The Wall Street Journal, the drop came as distressed loans were being liquidated at a more rapid pace with the biggest reason for the decline being the exit from bankruptcy of hotel chain Extended Stay America Inc.