District 95 wants to prevent reduction in Deer Park office building value

Lake Zurich Unit District 95 board members agree they should contest a possible reduction in the value of a Deer Park office building that could lead to a nearly $200,000 refund to the property owner.

District 95's assistant superintendent of business and operations, Vicky Cullinan, told the school board at a meeting Thursday that residents have a vested interest in the results of significant valuation reduction attempts for commercial properties.

"When they pay less, all of you as (residential) taxpayers pay more," Cullinan said.

At issue is the valuation of the building primarily occupied by Continental Automotive Systems, 21440 W. Lake-Cook Road in Deer Park. An investment group purchased the seven-story structure for $40.5 million in 2014, but Cullinan said a property tax appeal before a Lake County assessor's office panel places the value at roughly $35 million.

Should the office building wind up at the reduced $35 million value, District 95 would have to refund at least $192,023 to the owner based on property taxes paid this year, officials said. Cullinan said any refund would not immediately occur.

District 95 officials agreed they need to participate in the process that'll decide whether the reduced value for the Deer Park office building should be granted.

Board President Doug Goldberg said the chance of having a positive financial result outweighs a projected $15,000 to $20,000 in legal fees, plus $4,000 for an appraisal of the office building District 95 must have as part of a challenge.

"I can't imagine us not wanting to participate, given the magnitude of this," Goldberg said.

Cullinan said how much the district would spend depends on whether the case is settled in Lake County or goes to a hearing before the Illinois Property Tax Appeal Board. She said it would take several years before the state board makes a decision.

Motorola Inc. opened the seven-story, 280,000-square-foot building on Lake-Cook Road in 2001. Continental, based in Germany, bought Motorola's automotive electronics business, including the Deer Park structure, for $1 billion in 2006.