FYI...

---------- Forwarded message ----------
Date: Sun, 2 Sep 2007 19:47:14 -0700 (PDT)
From: Seth Grimes <grimes@...>
To: Kathy Porter <portertakoma@...>, Bruce Williams <brwilli@...>,
Joy Austin-Lane <joyaustinlane@...>,
Colleen Clay <colleen_clay@...>, Terry Seamens <TJSeamens@...>,
Doug Barry <dkbarry1@...>, Reuben Snipper <rsnipper@...>
Cc: Barbara Matthews <barbaram@...>,
Jessie Carpenter <jessiec@...>,
Suzanne Ludlow <suzannel@...>, Seth Grimes <grimes@...>
Subject: Please negotiate a WAH PILOT

Dear Council Members,

I had planned to comment Tuesday evening, but to avoid distracting
from expected public comment on the Piney Branch ES pool closing, I'll do
this by e-mail --

The city occasionally negotiates Payments in Lieu of Taxes
(PILOTs) with nonprofit organizations that are exempt from taxes. These
payments recognize the value of city services and of city facilities and
infrastructure used by the nonprofit.

I was a member of the city's Tax and Services Duplication Issues
(TASDI) Committee. The committee noted the possibilities of negotiating a
PILOT with large nonprofits located within the city such as Washington
Adventist Hospital (WAH). Please see page 19 of the TASDI report,
http://www.takomaparkmd.gov/admin/tax/document/tasdifi.pdf .

The city council discussed the TASDI recommendations at a
worksession on May, 15 2006. Staff recommended that the city "consider a
PILOT when appropriate situations occur concerning major Takoma Park
nonprofits." Staff noted, "Generally PILOTs are agreements that come as
part of negotiations in instances where the government has leverage over
the nonprofit on something that the nonprofit wants." See pages 15-16 of
http://www.takomaparkmd.gov/clerk/agenda/items/2006/051506-3.pdf . Those
circumstances currently apply.

I ask the council to simultaneously politely decline WAH/Adventist
Healthcare's offer of $150,000/year 5-year funding for a gym and request
that Adventist Healthcare (AH) commence a PILOT that reflects the value of
city services the hospital campus receives and city facilities the
hospital uses.

The July 1, 2007 assessed real property value of 7600 Carroll
Avenue is $44,104,533, set to rise to $48,037,466 next July 1. The city's
property-tax rate for real property is $.627/$100 assessed. Adventist
Healthcare would pay $276,535 in real property taxes for FY08 if the
property owner were not non-profit. The hospital surely owns millions of
dollars of "personal" property that would also be subject to taxes.

I further ask that the City Manager Matthews report on the
implementation of other TASDI recommendations discussed at the May, 2006
worksession, including to the extent possible the progress of the
Montgomery County 2007 Municipal Revenue Sharing Task Force on which she
sits, and that the council renew as soon as practical discussion of city
plans to promote state legislative changes regarding revenue sharing.

Lastly, I would support the city's allocating the collected amount
of an Adventist Healthcare PILOT up to $750,000 toward a gym should the
city decide to build a gym in the future.

Thank you for your attention to this matter.

Seth Grimes

7300 Willow Avenue
301-270-0795 (office)