Troy property values rank third-highest in Michigan — again

By: Terry Oparka | Troy Times | Published April 19, 2017


TROY — Troy’s assessed property values, at $5.24 billion, rank it third in the state — again, based on 2016 property values culled from the Michigan Department of Treasury. 

“We’ve been third for a couple years,” said Troy City Assessor Nino Licari. “We dropped to fourth behind Grand Rapids after the crash (of 2008),” he said. “Grand Rapids didn’t get hit as hard as the east side of the state.”

He said that taxable values (different from property values) are not expected to rise to 2008 levels until after 2028. 

Licari explained that taxable value increases are limited to the rate of inflation or 5 percent, whichever is less.

Since the passage of Proposal A in 1994, taxable values are calculated from the prior year’s tax value, minus losses, then multiplied by the current consumer price index, plus any improvements to the property, rather than from the assessed value.  

“We were at $5.5 billion (taxable value) in 2008, and we’re at $4.4 billion in 2017,” Licari said. “Assessed values will catch up much faster. We were at $6.2 billion in 2008, and are at almost $5.9 billion in 2017.

The assessed property value is determined by a property’s market value. Set by the assessor, the assessed value, when multiplied by two, will result in the approximate value of the property. 

Assessed property values for 2016 are as follows: Ann Arbor, at $6.39 billion, is ranked No. 1 followed by Detroit at $5.43 billion, Troy, Grand Rapids at $4.7 billion and Sterling Heights at $4.66 billion. 

“We’re definitely seeing an upswing in agenda items (projects) going before the Planning Commission,” said Troy Planning Director R. Brent Savidant. 

The Troy City Council unanimously approved an amendment at its April 10 meeting that will incorporate new design provisions in zoning ordinances.

These include increasing the variation in appearance of homes in residential districts, requiring a special-use approval for one-story buildings in the Big Beaver zoning district to encourage multifamily and mixed uses, more clearly defining transparency requirements in that district, and requiring special-use approval for hotels in all zoning districts. 

“It (the amendment) was initiated by the Planning Commission with the intent to improve the overall design of new projects, and (it was) unanimously approved for recommendation to the council,” Savidant told the council.

Licari said that residential assessed value is 68.2 percent, with the rest being commercial and industrial. 

“It used to be 50-50. The office market hasn’t recovered (from the recession),” he said. 

“Our market is strong,” Licari said. “A lot has to do with the school system. There’s more demand and higher prices.” 

Licari said that the “low Troy city tax — 10.40 mills” also factors into the strong market.