COURT OF APPEALS

DECISION

DATED AND FILED

July 28, 2021

Sheila T. Reiff

Clerk of Court of Appeals

NOTICE

This opinion is subject to further editing. If 

published, the official version will appear in 

the bound volume of the Official Reports. 

A party may file with the Supreme Court a 

petition to review an adverse decision by the 

Court of Appeals. See WIS. STAT. § 808.10 

and RULE 809.62. 

Appeal No. 2019AP1987 Cir. Ct. Nos. 2016CV589

2017CV432

STATE OF WISCONSIN IN COURT OF APPEALS

DISTRICT II

LOWE’S HOME CENTERS, LLC,

 PLAINTIFF-APPELLANT,

 V.

CITY OF DELAVAN,

 DEFENDANT-RESPONDENT.

APPEAL from an order of the circuit court for Walworth County: 

DANIEL STEVEN JOHNSON, Judge. Affirmed. 

Before Neubauer, C.J., Reilly, P.J., and Davis, J.

Per curiam opinions may not be cited in any court of this state as precedent 

or authority, except for the limited purposes specified in WIS. STAT. RULE 809.23(3). 

¶1 PER CURIAM. Lowe’s Home Centers, LLC (Lowe’s) appeals 

from an order of the circuit court dismissing its challenges to the City of Delavan’s 
No. 2019AP1987

2

(the City) 2016 and 2017 tax assessments. Lowe’s argues that the court erred in 

concluding that the assessments were not excessive. We affirm.

BACKGROUND

¶2 In 2005, Lowe’s completed construction of a big box store in 

Delavan (the subject property). In 2013, a market analysis of the subject property 

was done by the City’s assessor at the time, who arrived at an assessed value of 

$8,992,300. No changes were made to the subject property’s assessed value for 

2016 and 2017, which were maintenance years for tax assessment purposes.

¶3 Lowe’s, which owned and occupied the subject property in 2016 and 

2017, using it as a retail home improvement store, challenged the City’s tax 

assessments for those years. The City’s Board of Review waived the hearing on 

the claims and disallowed the claims. Lowe’s brought an action under WIS. STAT.

§ 74.37(3)(d) (2019-20)1challenging the 2016 tax assessment as excessive in 

Walworth County Circuit Court. About a year later, Lowe’s filed an action in 

circuit court challenging the 2017 assessment. The cases were consolidated.

¶4 A three-day court trial was held in April 2019. The circuit court 

heard testimony from Luke Mack, the City’s assessor; Lowe’s expert appraiser 

Michael MaRous; the City’s expert appraiser Scott Chapko; and Brett Harrington, 

another Lowe’s expert. The parties submitted pretrial and posttrial briefs.

¶5 In a written decision affirming the City’s assessments and dismissing 

Lowe’s complaints, the circuit court determined that Lowe’s did not overcome the 

 

1

 All references to the Wisconsin Statutes are to the 2019-20 version unless otherwise 

noted.
No. 2019AP1987

3

presumption of correctness afforded to tax assessments either by showing that 

Mack did not follow the Wisconsin Property Assessment Manual (2016)2(the 

manual) or by providing significant contrary evidence showing that the assessor’s 

value is wrong.

¶6 The circuit court analyzed the assessments under the three-tier 

hierarchy provided for in Wisconsin statutes and case law,3as well as in the 

manual. See WIS. STAT. § 70.32(1); State ex rel. Markarian v. City of Cudahy, 

45 Wis. 2d 683, 685-86, 173 N.W.2d 627 (1970); see also Bonstores Realty One, 

LLC v. City of Wauwatosa, 2013 WI App 131, ¶14, 351 Wis. 2d 439, 839 N.W.2d 

893.

¶7 As to the first challenge to the presumption of correctness, adherence 

to the manual, the circuit court rejected Lowe’s selective citation to one of the 

questions Mack answered when testifying, which indicated that Mack had merely 

carried over the 2013 assessment without conducting any analysis, and instead 

chose to review Mack’s answer to that one question in the context of his entire 

testimony. The court specifically found that Mack conducted “an independent 

analysis ... to arrive at the values for the 2016 and 2017 appraisals and that the 

 

2

 The parties rely on the 2016 Wisconsin Property Assessment Manual. All references to 

the manual will be to the 2016 edition. 

3

 Tier I considers a recent arm’s-length sale of the property in question and is not at issue 

here because there has not been a recent arm’s-length sale of the subject property. See Nestlé 

USA, Inc. v. DOR, 2011 WI 4, ¶28, 331 Wis. 2d 256, 795 N.W.2d 46. Tier II extrapolates fair 

market value based on recent sales of comparable properties and is only a viable methodology if 

the recent sales are of properties that are actually reasonably comparable. Regency W.

Apartments LLC v. City of Racine, 2016 WI 99, ¶¶28, 70, 372 Wis. 2d 282, 888 N.W.2d 611. 

Tier III encompasses other valuation techniques, most prominently the cost and income 

approaches. Nestlé USA, Inc., 331 Wis. 2d 256, ¶29.
No. 2019AP1987

4

valuation arrived at is appropriate and in compliance with the provisions in the 

[m]anual.”

¶8 As to the second challenge to the presumption, the requirement of 

significant contrary evidence to rebut it, the circuit court found that MaRous did 

not provide sufficiently reliable testimony concerning the value of the subject 

property due to a variety of problems with his appraisal. MaRous testified that the 

value of the subject property was $4,600,000 for the 2016 and 2017 tax years. The 

court examined the evidence that Lowe’s presented in its attempt to show that the 

assessments were excessive, noting that none of the sales used by MaRous in his 

Tier II analysis qualified as reasonably comparable sales under the applicable law. 

This was due to the fact that MaRous attempted to compare the value of the 

subject property to sales of “dark” and “distressed” properties, neither of which 

the subject property was in 2016 or 2017. The court noted that “due to the 

significant deficiencies in Mr. MaRous’ appraisal” Lowe’s failed to put on 

“significant contrary evidence that the City’s value is incorrect.” The court went 

on to review the City’s evidence and found that the City’s expert appraiser,

Chapko, provided credible opinion testimony under a Tier II analysis on the value 

of the subject property.

¶9 Because the circuit court found that “the appraisal done by Mr. 

MaRous is not [sufficiently reliable], and the Tier II analysis done by Mr. Chapko 

is sufficient to determine value,” the court did not reach the issue of the Tier III 

analysis done by either appraiser. The court also noted that it “did not find Mr.

Harrington’s testimony or study particularly helpful” and, therefore, it did not rely 

on Harrington’s testimony in reaching its decision. Lowe’s appeals.
No. 2019AP1987

5

¶10 In addition to the parties’ briefs, an amicus brief was filed by the 

Wisconsin Manufacturers & Commerce. We include additional facts as necessary 

below.

DISCUSSION

¶11 This is a review of the circuit court’s decision rejecting Lowe’s’

claims of excessive tax assessments under WIS. STAT. § 74.37. “The question on 

appeal in a ... § 74.37 action is not whether the initial assessment was incorrect, 

but whether it was excessive.” Metropolitan Assocs. v. City of Milwaukee, 2018 

WI 4, ¶40, 379 Wis. 2d 141, 905 N.W.2d 784.

¶12 Pursuant to WIS. STAT. § 70.32(1), “[r]eal property shall be valued 

by the assessor in the manner specified in the Wisconsin property assessment 

manual.” A municipality’s assessment is presumed correct upon entry of the 

assessed value into the assessment roll and submission of the assessor’s affidavit:

The value of all real and personal property entered into the 

assessment roll to which such affidavit is attached by the 

assessor shall, in all actions and proceedings involving such

values, be presumptive evidence that all such properties 

have been justly and equitably assessed in proper 

relationship to each other.

WIS. STAT. § 70.49(2). Here, it is undisputed that the subject property was 

assessed at $8,992,300 in the challenged tax years. Thus, the assessments are 

“entitled to a presumption that [they were] ‘justly and equitably’ made, giving rise 

to a presumption of correctness.” Metropolitan Assocs., 379 Wis. 2d 141, ¶50; 

see also Bonstores, 351 Wis. 2d 439, ¶10 (“Because both parties agreed that the 

property was assessed at $25,593,300, the City has met its burden of establishing 

the presumptive fair market value of the property.”).
No. 2019AP1987

6

¶13 “The presumption can be overcome if the challenging party presents 

significant contrary evidence,” Metropolitan Associates, 379 Wis. 2d 141, ¶50, or 

shows that the assessment does not comply with Wisconsin law or the manual, see

Regency West Apartments LLC v. City of Racine, 2016 WI 99, ¶¶3-4, 22, 71, 73, 

372 Wis. 2d 282, 888 N.W.2d 611; see also Bonstores, 351 Wis. 2d 439, ¶5. 

“[W]hen a city assessor correctly applies the Property Assessment Manual and 

Wisconsin statutes, and there is no significant evidence to the contrary, courts will 

reject a party’s challenge to the assessment.” Allright Props., Inc. v. City of 

Milwaukee, 2009 WI App 46, ¶12, 317 Wis. 2d 228, 767 N.W.2d 567.

¶14 “Whether a city has erroneously failed to follow statutory 

requirements in making an assessment is a question of law that we review de 

novo.” Walgreen Co. v. City of Madison, 2008 WI 80, ¶17, 311 Wis. 2d 158, 752 

N.W.2d 687; see also Bonstores, 351 Wis. 2d 439, ¶6 (“[W]e independently 

review whether a valuation complied with the statutes and the Wisconsin Property 

Assessment Manual.”). However, “we defer to the circuit court’s findings of fact 

when resolving conflicting evidence. We will not upset the court’s factual 

findings, including findings involving the credibility of witnesses, unless they are 

clearly erroneous.” Bonstores, 351 Wis. 2d 439, ¶6 (citation omitted); see WIS.

STAT. § 805.17(2). “In particular, it is within the province of the factfinder to 

determine the weight and credibility of expert witnesses’ opinions.” Bonstores, 

351 Wis. 2d 439, ¶6.

¶15 Lowe’s presents five arguments on appeal: (1) the 2016 and 2017 

assessments were not determined in compliance with the manual, (2) the circuit 

court erred in dismissing MaRous’ Tier II evidence, (3) the court erred in 

accepting Chapko’s Tier II evidence, (4) the court misapplied Wisconsin law in 

evaluating the Tier II evidence, and (5) the court erred in not accepting MaRous’ 
No. 2019AP1987

7

Tier III evidence as indicative of the value of the subject property. Based on our 

review of the briefs and the record, however, we conclude that Lowe’s arguments 

should actually be placed into three baskets rather than five. Specifically, we 

address Lowe’s arguments on the following terms: (1) whether the City’s 

assessments complied with the manual and are therefore entitled to a presumption 

of correctness, (2) whether Lowe’s overcame the presumption of correctness by 

presenting significant contrary evidence that the assessments were excessive, and 

(3) whether the circuit court’s findings and credibility assessments were clearly 

erroneous. We address each argument in turn below.

The City’s Assessments are Entitled to a Presumption of Correctness Because the 

Assessor Complied With the Manual

¶16 As stated above, the City is entitled to a presumption that the 

assessment was “justly and equitably” made, giving rise to a presumption of 

correctness. See WIS. STAT. § 70.49(2); see also Bonstores, 351 Wis. 2d 439, ¶10. 

Lowe’s argues that it has overcome the presumption because it contends that the 

assessor did not comply with the manual in arriving at his 2016 and 2017 

assessments. More specifically, Lowe’s argues that Mack violated the manual by 

carrying over the 2013 assessed value without conducting any independent

analysis.

¶17 Mack testified that he determined the assessments of the subject 

property for 2016 and 2017 using the cost approach, as he assumed his 

predecessor had done in 2013. Even if Mack did not make every calculation to 

perfection, the assessment must stand so long as the amount of the assessment is 

not excessive. See Metropolitan Assocs., 379 Wis. 2d 141, ¶40. “[T]he assessor 

does not have to have perfect information when setting an assessment, only ... the 
No. 2019AP1987

8

best information practically available.” Marathon Petroleum Co. LP v. City of 

Milwaukee, 2018 WI App 22, ¶53, 381 Wis. 2d 180, 912 N.W.2d 117. 

¶18 Mack further testified that the 2016 and 2017 assessments were 

maintenance assessments. Maintenance assessments are appropriate under the 

manual as long as the assessor completes an annual review of sales to determine if 

specific classes or types of property need to be adjusted to maintain equity in the 

assessments. Wisconsin Property Assessment Manual, at 19-19.4

¶19 Mack testified that the 2013 assessment of the subject property was 

based on a cost approach; replacement costs were based on “Marshall and Swift” 

cost data; and depreciation and additional obsolescence were applied. He testified 

that his challenged assessments complied with the manual because he did not

solely “carry over” the assessment, despite Lowe’s repeated assertion to the 

contrary in this appeal. Rather, Mack testified that he did the required annual 

review of sales in arriving at his valuation of the subject property for 2016 and 

2017. Moreover, the circuit court made an explicit finding that Mack conducted 

“an independent analysis ... to arrive at the values for the 2016 and 2017” 

assessments “and that the valuation arrived at is appropriate and in compliance 

with the provisions in the [m]anual.”

 

4

 For a discussion of the annual process of adjusting property values to maintain equity 

among assessments, including maintenance assessments, see Lowe’s Home Centers, LLC v. City 

of Wauwatosa, No. 2020AP393, unpublished slip op. ¶¶17-18 (WI App July 7, 2021). See WIS.

STAT. RULE 809.23(3)(a), (b) (generally, an “unpublished opinion may not be cited in any court 

of this state as precedent or authority,” but an “unpublished opinion issued on or after July 1, 

2009, that is authored by a member of a three-judge panel ... may be cited for its persuasive 

value”).
No. 2019AP1987

9

¶20 In further keeping with the manual’s requirements, Mack also 

compared the existing assessment of the subject property to the recent 

reevaluations he performed for other communities within the same county as 

Delavan. Mack explained at trial that he also used a Computer Assisted Mass 

Appraisal model to complete the 2016 and 2017 assessments, yet another 

methodology that the manual specifies as acceptable because it “provide[s] an 

opportunity to increase the efficiency and technical capabilities of the assessor’s 

office [and] also allow[s] the assessor to produce more accurate and equitable 

valuations.”5 Wisconsin Property Assessment Manual, at 7-40. Lowe’s concedes 

“that standardized mass appraisal techniques may be used by an assessor to 

estimate a property’s market value for a given assessment year” and, by extension, 

if a mass appraisal was done in 2016 and 2017, it was lawful for the City to use 

that mass appraisal to establish its initial assessment of the Lowe’s property. 

While Lowe’s questions Mack’s credibility regarding whether he conducted a 

mass appraisal, it did not present sufficient evidence to convince the circuit court 

otherwise. We do not disturb the circuit court’s factual findings, including 

findings involving the credibility and weight of witness testimony, unless they are 

clearly erroneous. See Bonstores, 351 Wis. 2d 439, ¶6.

¶21 Based on the foregoing evidence and findings, we conclude that 

Lowe’s has failed to prove that Mack did not comply with the manual. See Clear 

Channel Outdoor, Inc. v. City of Milwaukee, 2017 WI App 15, ¶4, 374 Wis. 2d 

348, 893 N.W.2d 24 (“If by any reasonable view of the evidence the assessment is 

 

5

 For a more detailed discussion of the process of conducting mass appraisals to assist in 

valuing properties, see Lowe’s/Wauwatosa, 2020AP393, ¶¶24-26.
No. 2019AP1987

10

valid, it must be upheld.”). The City’s assessments are entitled to a presumption 

of correctness on this ground.

Lowe’s Did Not Rebut the Presumption of Correctness by Presenting Significant 

Contrary Evidence That the Assessments Were Excessive 

¶22 Lowe’s next set of arguments are aimed at challenging the circuit 

court’s application of the three-tier Markarian hierarchy. See generally

Markarian, 45 Wis. 2d 683, 685-86. To summarize briefly, Lowe’s argues that 

the circuit court erred in rejecting MaRous’ Tier II and Tier III evidence as 

sufficient to rebut the presumption of correctness, while at the same time

embracing Chapko’s Tier II analysis as sufficient evidence of the value of the 

subject property. 

¶23 WISCONSIN STAT. § 70.32(1) provides a rubric for the three methods 

by which assessors may determine the value of real property. Our appellate courts 

have explained that these methods constitute a three-tier hierarchy:

Evidence of an arm[’]s-length sale of the subject property 

is the best evidence of true cash value. [Tier I] If there has 

been no recent sale of the subject property, an assessor 

must consider sales of reasonably comparable properties.

[Tier II] Only if there has been no arm[’]s-length sale and 

there are no reasonably comparable sales may an assessor 

use any of the third-tier assessment methodologies. [Tier 

III] 

Allright Props., 317 Wis. 2d 228, ¶11 (quoting Adams Outdoor Advert., Ltd. v. 

City of Madison, 2006 WI 104, ¶34, 294 Wis. 2d 441, 717 N.W.2d 803). The 

third tier is comprised of “all the factors collectively which have a bearing on 

value of the property in order to determine its fair market value.” Adams Outdoor 

Advert., 294 Wis. 2d 441, ¶35 (quoting Markarian, 45 Wis. 2d at 686). “These 

factors include ‘cost, depreciation, replacement value, income, industrial 
No. 2019AP1987

11

conditions, location and occupancy, sales of like property, book value, amount of 

insurance carried, value asserted in a prospectus and appraisals produced by the 

owner.’” Adams Outdoor Advert., 294 Wis. 2d 441, ¶35 (citation omitted).

¶24 It is undisputed in this case that the subject property had not been 

sold in the approximately fifteen years since its construction so as to enable a 

Tier I analysis. Thus, the circuit court appropriately began by examining the 

second tier.

Tier II Analyses

¶25 The Tier II sales comparison approach “relies on recent market sales 

of similar properties to predict the probable market price of the subject.” 

Wisconsin Property Assessment Manual, at 7-22. According to the manual, 

“[c]omparable sales refer to properties that are similar to the subject property in 

age, condition, use, type of construction, location, design, physical features and 

economic characteristics.” Id., at 7-24.

¶26 Lowe’s’ expert, MaRous, based his Tier II sales comparison 

approach on the sale of six properties that he concluded were reasonably 

comparable to the subject property.6 Based on this analysis, MaRous determined 

the value of the subject property to be $4,600,000 for the 2016 and 2017 

assessment periods, as compared to the City’s assessed value of $8,992,300. 

However, the circuit court agreed with the City’s expert, Chapko, that the six

properties were not reasonably comparable. The court also concluded that 

 

6

 MaRous’ appraisal also included fourteen sales of stores from around the country. The

circuit court did not address these other fourteen sales in its decision, and the parties do not 

develop arguments based on these sales on appeal. 
No. 2019AP1987

12

Chapko’s Tier II analysis was “reasonable, sufficient, and credible such as to 

render [Chapko’s comparable sales] usable in comparison to the subject” and 

“sufficient to determine value.”

¶27 The circuit court found “significant deficiencies” in MaRous’ 

proposed comparable sales and concluded that MaRous’ appraisal was, at least at 

times, “in apparent direct conflict with the principles outlined in the [m]anual.” 

To briefly summarize the problems the court found, it noted that two of the six 

MaRous’ comparables were improperly used “dark properties,” three were 

improperly used “distressed properties,” and the final sale involved such 

“abnormal” conditions, agreements, circumstances, and “significant adjustments” 

that it “raise[d] concerns about how comparable this property really is.”7 As such, 

 

7

 The following chart presents the data MaRous relied on in support of his Tier II 

appraisal:
No. 2019AP1987

13

the court concluded that Lowe’s failed to provide “significant contrary evidence 

that the City’s value is incorrect.”

¶28 We address in turn Lowe’s’ arguments that the circuit court erred in 

rejecting MaRous’ comparables based on vacancy status and exposure time (“dark 

properties”), as well as the court’s characterization of three of the comparables as 

“distressed properties,” and its alleged failure to consider one of MaRous’

comparables.

Dark Properties (MaRous’ Comparable Sales 2 and 5)

¶29 Lowe’s’ primary argument regarding MaRous’ proposed 

comparables is that it was improper for the circuit court to consider the vacancy 

status of these properties. Lowe’s argues that the court’s rejection of two of the 

sales based on their vacancy status is in violation of the manual and “unsupported 

by the record.”

¶30 In Bonstores, the owner of a department store challenged its tax 

assessment as excessive, and it relied on an appraiser’s analysis of purportedly 

comparable sales of other department stores that had gone “dark.” Bonstores, 351 

Wis. 2d 439, ¶21. We affirmed the circuit court, which rejected the appraiser’s 

opinion that the sales were reasonably comparable in light of the fact that the 

subject property had not gone “dark.” As we explained, it was appropriate for the 

circuit court to reject the appraiser’s comparative sales analysis as unreliable 

because it was based on properties that were not reasonably comparable. Id., ¶22. 

¶31 Our decision in Bonstores is consistent with the manual. 

Specifically, the manual cautions that “[t]he assessor should avoid using sales of 

improved properties that are vacant (‘dark’) or distressed as comparable sales 
No. 2019AP1987

14

unless the subject property is similarly dark or distressed.” Wisconsin Property 

Assessment Manual, at 9-12. The manual further provides that “[a] vacant store is 

considered dark when it is vacant beyond the normal time period for that 

commercial real estate marketplace and can vary from one municipality to 

another.” Id.

¶32 It is undisputed that as of the valuation dates, the Lowe’s property 

was not vacant, was not in transition to another use, and was operating in a stable

condition. Yet MaRous selected sales of properties to compare to the subject 

property in Delavan that were vacant or dark. His appraisal does not present an 

apples-to-apples comparison. Bonstores instructed against using these type of 

sales:

The court explained that it did not “see the apples-to-apples

comparison” between the subject property and the 

properties [Bonstores] relied on as comparable, and

concluded that [Bonstores] did not provide meaningful 

comparable properties because many of the properties had 

gone “dark.” [Bonstores] defined “dark” as “a period of 

time where the store is not operating.”...

 ....

[Bonstores] agreed that the subject property is not a “dark” 

store, has never gone dark, and there is no evidence it 

would go dark and be sold off as a single property. As 

such, the circuit court did not erroneously determine that 

[Bonstores’] reliance on the sales of properties [it] deemed 

comparable was unreliable. 

Bonstores, 351 Wis. 2d 439, ¶¶21-22.

¶33 Bonstores provides sufficient support for the circuit court’s 

determination that the sales MaRous identified are not reasonably comparable to 
No. 2019AP1987

15

the Lowe’s store at issue, which undisputedly is not a “dark” store, has never 

closed, and there was no evidence that it is at risk of closing. See id.8 The circuit 

court observed that MaRous’ comparable sales two and five had been vacant for 

around four years by the time they sold, which was “beyond the [two-to-three-

]year window” that MaRous had identified “as the normal exposure time for the 

Delavan area.” The court’s finding that “[e]ven if adjustments could be made for 

these deficiencies[,] the deficiencies themselves are significant and call into 

question the value of the appraisal as a whole” is not clearly erroneous and is 

supported by the record.

Distressed Properties (MaRous’ Comparable Sales 1, 3, and 6)

¶34 Lowe’s asserts that none of MaRous’ proposed comparable sales 

were “‘distressed sale[s]’” like those at issue in Bonstores because the properties 

did not involve sellers acting under “undue duress.” However, this misses the 

main point of Bonstores that sales of “dark” properties are simply not appropriate 

comparables to non “dark” properties and nothing in that case suggests that there 

was a need to inquire into a particular seller’s “duress” in order to reach that 

conclusion. Indeed, given the inability to generate revenue in a darkened state, 

such properties are inherently a form of a “distress sale.” Id. (observing that the 

circuit court had “used the phrase ‘distressed property’ to refer to a ‘dark’ 

 

8

 Lowe’s does not address Bonstores’ dark store position in its principal brief, but in its 

reply asserts that “[t]he City relies heavily on an over-extrapolation and misinterpretation of the 

holding in ... Bonstores,” Bonstores Realty One, LLC v. City of Wauwatosa, 2013 WI App 131, 

351 Wis. 2d 439, 839 N.W.2d 893, and violates Walgreen Co. v. City of Oshkosh, 

No. 2013AP2818, unpublished slip op. (WI App Dec. 17, 2014). We rejected these same legal 

arguments made by Lowe’s relating to the proper consideration of vacancy status and exposure 

time when assessing property values, and for the same reasons articulated therein, we reject them 

here. See Lowe’s Home Ctrs., LLC v. Village of Plover, No. 2019AP974, unpublished slip op. 

¶¶39-45 (WI App Oct. 29, 2020); see also Lowe’s/Wauwatosa, 2020AP393, ¶¶66-70.
No. 2019AP1987

16

business,” and that “dark” referred to “a period of time where the store is not 

operating”). 

¶35 Regardless of whether any or all of MaRous’ proposed comparable 

sales were distressed sales, or involving “undue duress,” Lowe’s argument fails 

because it is contrary to the manual’s explicit directive that the assessor “should 

avoid using sales of improved properties that are vacant (‘dark’) or distressed as 

comparable sales unless the subject property is similarly dark or distressed.” See

Wisconsin Property Assessment Manual, at 9-12. Thus, whether distressed or 

vacant, such attributes are properly considered in determining if properties are 

reasonably comparable to the subject property. The subject property was neither

dark nor distressed, and, therefore, the circuit court did not err in finding it is not 

comparably valued to sales of such properties. Again, for the reasons articulated 

in Lowe’s other excessive assessment challenges involving the appropriate legal 

analysis of the same expert’s, MaRous’, reliance on “distressed” properties, we 

reject Lowe’s challenge here. Lowe’s Home Ctrs., LLC v. Village of Plover, 

No. 2019AP974, unpublished slip op. ¶¶42-43 (WI App Oct. 29, 2020); see also

Lowe’s Home Ctrs., LLC v. City of Wauwatosa, No. 2020AP393, unpublished 

slip op. ¶¶68-69 (WI App July 7, 2021).

¶36 Furthermore, regarding MaRous’ comparable sales one, three, and 

six (the American TV stores), the circuit court noted that the stores were “going 

out of business, subject to a receivership, and needed to liquidate their assets.” 

This, the court noted, meant that “half of the comparable sales used by Mr. 

MaRous were in receivership.” The circuit court recognized, as do we, that the

[c]ourt needs to look at the totality of the evidence together 

and not simply the subparts in isolation. In doing so, the 

fact remains that the above concerns pointing to the 

properties being distressed provides significant evidence 
No. 2019AP1987

17

for th[e] [c]ourt to find that there are concerns with the use 

of these comparable sales by Mr. MaRous and 

subsequently calling into doubt the overall validity of his 

opinion on the value of the Lowe’s property.

This further supports the court’s conclusion that “due to the significant 

deficiencies in Mr. MaRous’ appraisal [as] noted above, it can certainly not be 

said that [Lowe’s] has provided significant contrary evidence that the City’s value 

is incorrect.”

¶37 Under Wisconsin law, MaRous’ use of vacant, in transition, and 

distressed properties to value the occupied and stable subject Lowe’s property is a

fundamental and overarching fatal flaw in his Tier II valuation. A property’s full 

value “must reflect its ‘highest and best use’” which should not be speculative. 

Forest Cnty. Potawatomi Cmty. v. Township of Lincoln, 2008 WI App 156, ¶10, 

314 Wis. 2d 363, 761 N.W.2d 31 (citation omitted); Wisconsin Property 

Assessment Manual, at 7-12. A subject property’s highest and best use is “defined 

as that use which over a period of time produces the greatest net return to the 

property owner.” Nestlé USA, Inc. v. DOR, 2011 WI 4, ¶27, 331 Wis. 2d 256, 

795 N.W.2d 46 (citation omitted). Highest and best use “is a threshold issue 

because the properties an assessor identifies as ‘reasonably comparable’ to the 

subject property for assessment purposes must be reasonably comparable to the 

subject property’s highest and best use.” Id., ¶32 (citation omitted). Failure to do 

so will undervalue the property. None of MaRous’ comparable sales involve 

properties being put to a highest and best use that is similar to that of the stabilized 

and operating Lowe’s property.

¶38 There can only be one highest and best use for any given property. 

Wisconsin Property Assessment Manual, at 7-12. MaRous does not rely on a 

single highest and best use for both the comparable and subject properties, as 
No. 2019AP1987

18

Nestlé and the manual require. Instead, MaRous opines that the highest and best 

use may be as a single user retail property; however, his reliance on vacant or 

distressed properties or properties in transition is not reasonably comparable to the 

highest and best use of the Lowe’s property. As a result, MaRous valued the 

Lowe’s property in a condition that it is not in. 

¶39 MaRous further opines that if there is no demand for that single user 

retail property, Lowe’s could alternatively be converted to multi-tenant use 

property. This ignores the fact that the subject property’s current status as an 

operating store indicates that there is no such lack of demand, making this 

alternative analysis largely irrelevant. Indeed, MaRous’ alternative use, 

conversion into multi-tenant use, is not the use that would result in the greatest net 

return to the property owner due to the high cost to convert the property for this 

new use. MaRous assumes $30-$60 per sq. ft. of costs the owner would need to 

spend to convert the subject property into an alternative use. Given this cost to 

convert, MaRous’ alternative highest and best use conclusion cannot be accurate 

when continued use in its current form would not incur such high costs, thus 

yielding a greater net return to the property owner. MaRous’ highest and best use 

conclusion is contrary to Nestlé and the manual.9

The Final Comparable Sale (MaRous’ Comparable Sale 4)

¶40 The final sale that MaRous offered as comparable to the subject 

property was a former Lowe’s store that was converted into a Walmart store in 

Brown Deer, Wisconsin. As the circuit court explained it, Lowe’s and Brown 

 

9

 We rejected the same legal challenge discussed herein relating to MaRous’ attempts to 

offer alternative highest and best uses in Lowe’s/Wauwatosa, 2020AP393, ¶¶38-54.
No. 2019AP1987

19

Deer had special financial terms in an agreement at the time the store was built 

that Lowe’s did not have with the City here, and Walmart also received several 

perks from Brown Deer related to that sale. Moreover, the City’s expert testified 

that “per capita income in [the Brown Deer area] is one of the lowest of all of 

metropolitan Milwaukee, therefore, there’s much less buying power” in that area 

as opposed to the Delavan area. For those reasons, and the fact that the store had 

been vacant for two years before Walmart purchased it, this final sale was not 

comparable because it was not an “apples-to-apples comparison.” See Bonstores,

351 Wis. 2d 439, ¶¶21, 24.

¶41 For all these reasons, we conclude that the circuit court did not err

when it concluded that MaRous’ comparable sales analysis did not constitute 

significant contrary evidence that the 2016 and 2017 assessments were excessive.

The Circuit Court’s Findings and Credibility Assessments Were Not Clearly 

Erroneous 

¶42 The circuit court first found that Mack complied with the manual 

and, contrary to Lowe’s selective use of testimony, Mack conducted “an 

independent analysis done to arrive at the values for the 2016 and 2017 appraisals 

and that the valuation arrived at is appropriate.”10 The court also found that “the 

evidence presented by Lowe’s in this case is significantly less credible than that 

presented by the City when it comes to a proper value to be attached to this real 

estate for the years 2016 and 2017.” And, though noting that Chapko’s Tier II 

 

10

 The circuit court also found that “even if [Mack’s] appraised value was not in 

compliance with the [m]anual[,] [Lowe’s] would still not prevail in this case” due to the 

“deficiencies” that rendered MaRous’ appraisal unreliable.
No. 2019AP1987

20

analysis was not perfect, the court made the following findings with respect to 

Chapko’s valuation:

[T]he adjustments done by Mr. Chapko are reasonable, 

sufficient, and credible such as to render these properties 

usable in comparison to the subject. Maybe most 

importantly, he did not use any properties, much less half 

of his properties that were subject to a receivership or could 

otherwise be argued as being distressed. Nor did he use 

any “dark” properties. [Lowe’s] takes Mr. Chapko to task 

for his use of leased fee investment sales amongst other 

things. [Lowe’s] points to the [m]anual for the proposition 

that in order to use such properties you must analyze the 

underlying leases at issue and that diligent research must be 

conducted in that regard. This court finds that Mr. Chapko 

did in fact do diligent research. He looked into the leases 

and gathered information that was available pertaining to 

them. In some cases that information was limited but none 

the less he was able to determine, based on his professional 

experience that the leases were for market value. There is 

no requirement that he look at the written leases themselves 

if he can use other methods to form a professional opinion 

on the issue. He did that in this case and the [c]ourt finds 

his opinion credible under the circumstances.

In contrast, the court had the following to say: “MaRous[’] report cannot be relied 

on and there is really no evidence left to contradict the City’s value at that point.”

¶43 Where there is conflicting testimony the fact finder (here, the circuit 

court) is the ultimate arbiter of credibility. “The weight and credibility to be given 

to the opinions of expert witnesses is ‘uniquely within the province of the fact 

finder.’” Adams Outdoor, 294 Wis. 2d 441, ¶27 (citation omitted). The circuit 

court’s determinations that Mack valued the properties correctly and did not 

simply “carry over” the 2013 assessment without analysis and MaRous did not 

provide a credible opinion of value of the subject property are not clearly 

erroneous. See Bonstores, 351 Wis. 2d 439, ¶6 (“We will not upset the court’s 

factual findings, including findings involving the credibility of witnesses, unless 
No. 2019AP1987

21

they are clearly erroneous.”); WIS. STAT. § 805.17(2). Neither is its opinion that 

Chapko’s opinion was more credible than MaRous’.

¶44 Unlike MaRous, Chapko selected comparable sales of occupied 

properties, as the subject property in Delavan is occupied. With respect to all of 

the sales he selected, Chapko testified that each was an occupied property, similar 

to the subject, with a lease that was at market rent, and no duress involved in the 

sale. Lowe’s argues that an appraiser needs to have a copy of the lease to 

determine whether the rent of a sale subject to a lease is at market, but fails to 

identify any Wisconsin authority that so mandates, and Lowe’s offered no expert 

testimony that such requirement exists under generally accepted appraisal 

standards.

¶45 The circuit court determined that Chapko credibly testified that he 

contacted the brokers for the sales he used, and for several of the sales he was 

advised that the lease was at market rents. For sales where he could not get source 

information, he looked at the price per square foot, the cap rates that he received, 

and whether the buyer and seller were related parties. He concluded that to a 

reasonable degree of certainty, the leases were all at market rents. Lowe’s offered 

no testimony or evidence that contradicted Chapko’s testimony.

Tier III Analyses

¶46 The circuit court determined that because Chapko’s Tier II analysis 

was sufficient to value the subject property in 2016 and 2017, it need not reach

issues concerning the appraisers’ competing Tier III valuations. As we have 

concluded, the circuit court’s credibility determinations and findings were not 

clearly erroneous. Thus, like the circuit court, we also decline to explore the 

experts’ Tier III evidence on appeal.
No. 2019AP1987

22

¶47 Lowe’s argues that “[t]he Circuit Court erred in not even addressing 

[MaRous’] detailed, unrebutted [Tier III] cost approach as significant contrary 

evidence.” Lowe’s provides no legal authority in support of this statement—

which on its face is contrary to settled law concerning three tier appraisal 

methodology (see supra ¶23)—and does not sufficiently develop any argument in 

support thereof, instead making a series of conclusory statements. See State v. 

Pettit, 171 Wis. 2d 627, 646, 492 N.W.2d 633 (Ct. App. 1992) (“We may decline 

to review issues inadequately briefed.”). 

CONCLUSION

¶48 Based on the foregoing, we conclude that Lowe’s has not overcome 

the presumption of correctness that attached to the City’s assessments and that the 

record supports the circuit court’s determinations in this case. Accordingly, we 

affirm the circuit court’s order upholding the assessments.

By the Court.—Order affirmed.

This opinion will not be published. See WIS. STAT. RULE

809.23(1)(b)5.