City attorney outlines $3.1 million Walgreens settlement offer in first review

Monona — The City Attorney presented a proposed settlement in Walgreens’ suit challenging its 2025 property tax assessment and told the council the parties had negotiated toward a $3.1 million agreed valuation.

According to the attorney’s summary, the city assessor had placed the 2025 valuation at roughly $3.4 million; after negotiations Walgreens agreed to a settlement figure of $3.1 million. As part of the settlement, Walgreens would agree not to challenge assessments for 2026 and 2027 so long as the assessed value in those years is $3.1 million or below, barring major intervening events such as a fire or closure.

The city attorney said the negotiated figure was acceptable to the litigating attorney in the city attorney’s office and to Walgreens’ representatives. Councilors were briefed on the background and were told that detailed negotiation points and impacts could be discussed in closed session to avoid exposing strategy to the opposing party.

What happens next: The settlement was reviewed as a first reading; the council moved to a closed session to consult with counsel and may consider final approval after attorney guidance.