The Target store in West Ellicott is pictured. Submitted photo

The assessment on Target’s new West Ellicott store will remain unchanged.

Target Corporation had challenged the 2022 assessment on the former K-Mart parcel of $3.4 million. Negotiations between the attorneys resulted in a settlement that left the assessment unchanged, according to the order signed in late August by state Supreme Court Justice Grace Hanlon. The $3.4 million assessment will also be the agreed upon assessment for the property for 2023-24 and 2024-25.

Ellicott, meanwhile, has agreed to approve a 485-B tax exemption starting with the 2025 assessment on the building that will phase in 50% of any assessment increase over the original $3.4 million tax assessment due to physical changes to the property.

Section 485-b of the state Real Property Tax Law provides the basis for a 50% reduction of the increase in assessed value due to certain qualifying new construction, alterations, installations or improvements for the purpose of commercial, business or industrial activity.

According to a 2022 court filing by Marilyn Fiore-Lehman, attorney for the town of Ellicott in the case, Target purchased the building for $3.15 million and had obtained a building permit to make improvements estimated at $4.5 million.

The settlement means Ellicott, Chautauqua County and the Southwestern Central School District won’t have to send a tax rebate as they did in a similar recent tax assessment case involving the Chautauqua Mall. It also allows assessments on a large parcel to be set for at least two assessment cycles before another challenge can be made.

“This order hereby constitutes and represents full settlement of the tax review proceedings herein, and there are no costs or allowances awarded to, by or against any of the parties,” Hanlon wrote in her order. “Upon compliance of the terms of this order, the above-entitled proceedings be and the same are settled and discontinued.”