West Des Moines – The Iowa Court of Appeals issued a decision on Friday that leaves the $16 million property‑tax assessment on the Von Maur department store at Jordan Creek Town Center unchanged. The retailer had asked the court to lower the taxable value of the 202‑year‑old store, arguing that it was worth as little as $12.3 million.
Court’s reasoning
In a written opinion, the appellate panel found that Dallas County’s higher valuation was supported by more credible evidence. The court highlighted the $10 million renovation Von Maur completed in 2021‑2022, which upgraded the store’s interior, added new fixtures, and modernized its layout. Those improvements, the judges wrote, substantially increased the building’s market value.
The court also noted that the county’s assessment relied on recent comparable sales of similar retail spaces in the Des Moines‑West Des Moines market. By contrast, Von Maur’s own appraisal did not account for the recent upgrades or the current demand for large‑format retail locations in the area.
Impact on local taxes
Because the appellate court sided with Dallas County, the higher assessment remains in effect for both the 2023 and 2024 tax years. That means the store will continue to pay property taxes based on the $16 million valuation, contributing roughly $1.2 million annually to county revenues.
County officials said the tax dollars support essential services such as road maintenance, public safety, and community programs throughout Dallas County, including the West Des Moines area. “We appreciate the court’s thorough review and reaffirmation of a fair assessment that reflects the true value of this important commercial property,” said Dallas County Treasurer Jane Miller.
Von Maur’s response
Von Maur’s legal team expressed disappointment, maintaining that the store’s value was overstated. “Our client invested heavily in the 2021‑2022 renovation to improve the shopping experience for Iowa families, but that does not justify a $4 million increase in tax liability,” said attorney Mark Henderson. “We will continue to explore all legal avenues to ensure a fair tax burden for our business and the community we serve.”
The retailer emphasized its commitment to the West Des Moines community, noting that the store provides over 300 jobs and supports local suppliers.
What this means for other businesses
The ruling serves as a reminder to Iowa retailers that property‑tax assessments will consider recent capital improvements and market comparables. Business owners seeking lower valuations may need to present evidence that outweighs documented upgrades and current market trends.
Local chambers of commerce have urged businesses to stay informed about assessment processes and to engage with county assessors early in the valuation cycle.
Looking ahead
The decision does not preclude Von Maur from filing a further appeal to the Iowa Supreme Court, though such a move would extend the legal process into 2025. For now, the store will continue to operate under the existing tax obligations while serving shoppers from West Des Moines and the surrounding metro area.
Original reporting: KCCI Des Moines — read the source article.
