Highest and Best Use Involved Its Current Use
In Palace Sports & Entertainment, Inc. v. City of Auburn Hills, Michigan Court of Appeals, Nos. 294051 and 294185, June 21, 2012, an appeal involving the local real property tax assessments of a company's property for the 2003, 2004, 2005, and 2006 tax years, the Michigan Court of Appeals remanded the case to the Tax Tribunal because the tribunal neglected to increase the property's taxable values beginning in 2004 and, therefore, it entered incorrect taxable values for the 2005 and 2006 tax years. The court also found that ample evidence reflected that the property's highest and best use involved its current use as an arena that hosted a professional basketball team, other sports teams, and entertainment events, and that the property received significant income from its lease agreement with the basketball team. However, none of the city's complaints that the tribunal made inadequate findings in other respects were supported by the evidence. Moreover, the court concluded that the city's contention that the tribunal in any respect improperly relied on the value of publicly owned arenas to value the company's property, a privately owned arena, lacked merit.