The Iowa Court of Appeals has affirmed a property valuation of $50,102,085 for Arconic US, LLC's aluminum rolling mill located in Scott County. This decision affects how the property will be taxed and sets a precedent for future assessments of large industrial properties in Iowa.

Arconic, a major player in the aluminum industry, owns a sprawling facility that spans over five million square feet and operates as a single economic unit despite being assessed as two separate parcels. The court's ruling comes after Arconic contested the 2023 property assessment of $52,889,200, arguing that the valuation was excessively high.

Background

Arconic US, LLC operates one of the largest aluminum rolling mills in the United States, located in Scott County, Iowa. The facility straddles the boundary between the cities of Riverdale and Bettendorf. The property is divided into two parcels for assessment purposes, with the Riverdale parcel being significantly larger than the Bettendorf parcel.

The Scott County Assessor initially valued the two parcels at a combined total of $52,889,200. This figure represented a substantial increase from previous assessments, which had locked in a value of $42,508,000. Following the denial of Arconic's protest by the Scott County Board of Review, the case moved to the Iowa District Court, where the valuation was re-evaluated during a three-day bench trial.

The Ruling

The Iowa Court of Appeals, in a decision filed on October 7, 2026, upheld the district court's valuation of $50,102,085 for the property. The court noted that the district court had carefully considered the testimonies of four appraisers, whose valuations ranged from $35 million to over $103 million.

The court ruled, "The district court applied the appropriate governing framework, made a permissible independent determination of the property’s actual value, and did not clothe the assessment with any presumption of correctness."

Judge Sandy, along with Judges Chicchelly and Buller, reviewed the case and concluded that the district court's findings were credible and supported by the record. The court found that the assessor had met the burden of proof regarding the Riverdale parcel's valuation but had not done so for the Bettendorf parcel, leading to a revised valuation for the latter.

Impact

This ruling has significant implications for Arconic and the local community. The affirmed valuation means that Arconic will be taxed based on the court's determined value rather than the higher assessed value proposed by the Scott County Assessor. This decision may also influence how similar large industrial properties are assessed in the future, particularly in terms of how appraisers consider factors like obsolescence and market conditions.

Moreover, the court's ruling emphasizes the importance of credible appraisal practices and the need for thorough evaluations in property tax disputes. The decision may serve as a reference point for future cases involving large commercial properties, particularly those that operate across multiple jurisdictions.

What's Next

Arconic has the option to appeal the ruling, but details regarding any potential appeal were not available in the court filing. There are no related cases pending that could affect this decision at this time.