Worthy in line to get tax refund

If approved by the Spokane County commissioners today, Davenport Hotel owner Walt Worthy will receive a $225,000 refund in property taxes paid in 2003 and 2004 on his historic downtown property.

“We think it’s fair and reasonable now,” Worthy said Monday.

In June 2003, Worthy, through his company Davenport 2000 LLC, filed a lawsuit against Spokane County seeking to recover property taxes paid on the hotel that year, based on its 2002 valuation. He amended his complaint in June 2004 to protest the amount of taxes he paid this year, based on the 2003 valuation.

Worthy also retained the services of PKF Consulting, a nationally recognized hotel appraisal firm, to determine the value of the hotel, according to a resolution prepared for the commissioners’ consideration. The Spokane County assessor reviewed the appraisals and agreed on values of $13 million for 2002 and $18 million for 2003.

Worthy said previously the values had been set at about $28 million.

“It was way overvalued at the time,” Worthy said.

The Davenport reopened in July 2002 after more than $30 million in renovations. When it welcomed its first guests, much work remained to be done, including completing the basement spa and pool, the new ballroom, several retail shops and several floors of guest rooms, news reports said. Today, the hotel is valued at $28.5 million, according to the county Assessor’s Office.

County officials declined to talk Monday about the proposed settlement, saying to do so would be premature since the Board of County Commissioners hasn’t voted on the settlement yet.

“It’s a case in litigation, and it will stay in litigation until the commission does something about it tomorrow,” said county spokesman Ron Kole.

The resolution is scheduled to be discussed at a 2 p.m. meeting today.

The resolution calls for both sides to pay their own legal costs, including attorney’s fees and expert witnesses.