$600,000 Refund Due to Sparrow's Michigan Athletic Club, Result of Property Tax Settlement

$600,000 Refund Due to Sparrow's 
Michigan Athletic Club, Result of 
Property Tax Settlement

MERIDIAN TOWNSHIP - Sparrow Development, Inc. filed a property tax appeal against Meridian Township in 2011 for its Michigan Athletic Club at 2900 Hannah Blvd. The appeal resulted in a proposed settlement between the parties, and an estimated refund of more than $600,000 is due to the Sparrow corporation.

Tax-collecting public agencies like the Okemos Public Schools will fund the Michigan Athletic Club's Assessment.

However, Director of Finance for the Okemos School district, Bob Clark, says the return will not affect the district's general fund.

"We expect this activity, we plan for it, and so consequently, this will not have a direct impact on our levy in '13-'14," Clark said.

An assessment error made about 10 years ago contributed to the high valuation of the Michigan Athletic Club property. The basis of the error was an overassessment of the square footage of a temporary dome used to cover a pool and tennis courts at the club.

"This error deals with removable domes, and it's really a unique situation to this particular property, and it’s not an error that impacts the rest of the township.”

Sparrow Development, Inc. declined an interview about the settlement, but gave this statement:

"Sparrow and Meridian Township have worked together to reach a settlement after determining that the assessment of 2900 Hannah Blvd. was too high. We look forward to continuing to work with our community partners for the benefit of the people in Meridian Township and the surrounding areas."

The majority of the refund Sparrow will receive can be attributed to the general appeals process and the overall property value decline of recent years.

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