Urbana Mayor is being proactive after lawsuit

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Presence Covenant Medical Center is moving forward with its fight to get back millions in property taxes. They were back in court yesterday asking for a 10 million dollar refund, plus interest on property taxes it paid over ten years.

Presence Hospital stopped paying taxes in 2012 after being deemed a charitable organization. Representatives are saying they’ve been charitable since 2003, and want their exemptions for those missing years. If this happens, the bottom line is, tax payers in Urbana could continue paying more.

“Tax payers in Urbana have been paying more since this law was passed in 2012” said the Mayor of Urbana, Diane Marlin.

Leaders in Urbana started collecting money to hold just in case things went south for the city. One of Marlins first actions as Mayor was to move more than 5 million dollars the city was holding.

“One of the things I wanted to do was move these disputed revenues out of the general funds and put it into a separate reserve so it was clear what was the hospital money and what was the spending money.”

The lawyer for Presence says the ten million dollars they’re asking for comes from different properties. They’re also asking for interest that would be at least 1.5 million dollars more.

“It has a direct impact on the tax rate and what property taxes people of Urbana pay and ultimately that’s the most important point “

While Marlin is being proactive, the continuation of the lawsuit is still in its beginning phases.

“We are a party to the lawsuit involving Carle, and the one with Presence, the parties engaged, at this point doesn’t involve the city of Urbana.”

The hospitals lawyer says they did try to settle the lawsuit.

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