GRAND RAPIDS, Mich. — A Grand Rapids organization may soon lose its building because of an outstanding property tax bill.
“I would rather die here than give it up,” said Dino Newville, founder and owner of Blue’s Gym. The gym provides free lessons and other services to local children, with the hope that it keeps them out of trouble.
According to Garrett Tenhave-Chapman, it stems from the purchase of Blue’s Gym’s building along Kalamazoo Avenue in December 2020. He serves as Newville’s attorney and serves on the organization’s board of directors.
“For the problems of how Blue’s Gym will have to handle this, is we're going to have to look at all our options,” said Tenhave-Chapman.
The gym's nonprofit status exempts them from property taxes. However, the summer after they got their building, the organization received a notice which said they owed tens of thousands of dollars for it.
According to the city, Blue’s Gym failed to properly complete an application a few months earlier, in February 2021, which would absolve them from any payments, and they did not appeal it at a Grand Rapids Board of Review meeting.
Later that year, in November, Blue’s Gym submitted another, finished application that led to a partial exemption for the following tax year. However, the city says they could not retroactively apply it, which left the outstanding debt.
In the months after, Blue’s Gym still did not pay it.
Eventually in March 2022, the amount owed got handed over to the Kent County Treasurer’s Office.
“I wish I could grant them that exemption, but I can’t,” said Peter MacGregor, the Kent County treasurer.
MacGregor says that while sympathetic to their outreach, under state law, he cannot wipe away the gym's debt.
The amount currently totals $29,441.62.
According to MacGregor, Blue’s Gym can take the following steps to try and resolve the issue:
- Appeal to the Grand Rapid Board of Review
- Appeal to the Michigan Tax Tribunal
- File a lawsuit
- Pay the debt and win an appeal to get a refund
If Blue’s Gym does nothing by March 31, 2024, the county could take the building.
“If I know that they’re working through the process, I'm going to give some grace and time there,” said MacGregor. “I’m going to do everything in my power to make sure that we not foreclose, but again, I don't have the power to grant that exemption. It either has come from the city, or the Michigan Tax Tribunal, or a court saying, 'They should be exempt.'”
Tenhave-Chapman says that they lack the required funds to resolve the issue. He also worries about the amount of time needed for the other options.
“Money in then is money out as we use it to help people,” said Tenhave-Chapman.
Newville hopes people provide donations or offer other ways to help. He promised to put up a fight to ensure Blue’s Gym does not close.
“We're gonna overcome it,” said Newville. “I tell you, we will.”
