MEMPHIS, Tenn. — Swedish retailer IKEA is crunching numbers and hoping for the best after a tax issue put a pause, for now, on its project in Memphis.

Shelby County Property Assessor Cheyenne Johnson has appealed a land appraisal that could short the city and county more than $1 million in tax revenue in the next 10 to 12 years.

Johnson has talked before about the importance of consistency and fairness.

In September, the local Board of Equalization said it was okay to set the appraisal for the land at $1.25 million, the amount it appraised for in 2014.

Johnson’s office contended it should be closer to $5.1 million.

WREG spoke with Johnson over the phone Wednesday. She confirmed a hearing for her appeal has not been scheduled yet.

President and CEO of EDGE Reid Dulberger said the hold-up means IKEA has to reevaluate.

“This is the smallest store that they are considering in the United States. There’s less room for error, and so, they have now gone back to the drawing board to see how the numbers play out,” Dulberger said.

WREG spoke with IKEA Spokesperson Joseph Roth who confirmed the hiccup, saying the company is hoping for the best.

“Apparently, the assessor has now appealed to the state. Given the uncertain process and timing, we obviously are evaluating all options, and we remain cautiously optimistic,” Roth said.

The State Comptroller’s Office confirmed the state Board of Equalization received the appeal and handed it over to the Secretary of State’s Administrative Law Judge. Once there has been a hearing, he or she has 90 days to issue a decision.

IKEA is hoping to build on a 35-acre parcel off I-40 and Germantown Parkway. It paid $5.6 million for the property in July.

IKEA was granted $9.5 million in tax breaks to build in Memphis.