Arguments that luxury boxes and a naming-rights contract raise the arena's worth were rejected.
By BILL VARIAN
Published August 30, 2003
TAMPA - A Hillsborough circuit judge on Friday declined to reconsider his ruling that sharply reduced the property tax bill on the St. Pete Times Forum.
An attorney for Property Appraiser Rob Turner argued that Circuit Judge James Barton II failed to consider expert testimony on behalf of the arena operators that should have increased the value.
Motions for reconsideration are common when someone intends to appeal a judge's ruling, and they usually are rejected. Barton complimented Turner's attorney for his critique but denied his motion.
Will Shepherd, general counsel for the property appraiser's office, said Barton's ruling Aug. 12 neglected to consider the value of its naming-rights contract with the St. Petersburg Times. That contract pays Palace Sports & Entertainment, operators of the arena and owners of the Tampa Bay Lightning hockey team, $2.1-million annually over 12 years.
A suitor interested in purchasing the arena would factor the value of the contract into the price, Shepherd reasoned. But the naming-rights agreement wasn't included by a Palace Sports appraiser, whose analysis was the basis for Barton's ruling.
Shepherd said the judge also allowed a Palace Sports expert to compare the Times Forum to other arenas around the country that don't have luxury suites, though the Times Forum does. The other examples were used to bolster an argument that such sporting and concert arenas lose their value quickly, rendering them almost obsolete within a few years.
These might be among the issues that Turner now takes to an appellate court, Shepherd said afterward. He said a decision on whether to appeal Barton's ruling hasn't been made.
A trial in June dealt with Turner's tax assessments for three years ending in 2001. In the last year, Turner placed the value of the arena at $110-million, creating a tax bill of about $2.8-million annually.
Turner's estimate was based on the more than $150-million it cost to build the arena seven years ago, minus depreciation.
However, Palace Sports placed the value of the Times Forum at no more than $25.5-million in 2001 based on sales of arenas around the country that are home to sports franchises.
The judge agreed. His ruling knocked the 2001 property tax bill down to $650,000.
