Special Assessment Appeal

A group of participating lenders funded a multi-use project that included the construction of a sewer treatment plant to provide sewer service to the total project. The treatment plant was constructed to state standards and approved by the state. However, plant management was delegated to the local county government to assess and collect the necessary funds to operate the system. The disputed assessments are based on water use and effluent discharge volumes that are derived from various engineering assumptions.

The original developer of the project eventually lost the project in foreclosure to the participating lenders, who were liable for $700,000 in property taxes and assessments.

The Tuxhorn Company was hired by the lenders to evaluate the assessment methodology, water use and taxes. The original developer had a long-running dispute over actual water usage and the allocation of sewer treatment and maintenance assessments. His case was never thoroughly presented to the county officials to lower the annual sewer fees.

The Tuxhorn Company's research provided the usage data to enable an appeal for a refund of nearly $350,000 in over charges from the district.