Akron General and its ongoing debate over tax exempt status will go to mediation regarding the hospital’s Stow Facility. The appeal was filed by the Akron General Medical Center about a year ago in an attempt to seek property tax exemption status for a portion of its facility on Allen Road. The order for mediation follows the court giving approving a joint motion filed by both parties to use mediation to settle the dispute. The oral arguments hearing that was schedule for June 9^th has been cancelled as a result of the mediation order.

Court documents in the case state that Ohio Tax Commissioner Joseph Testa and the Stow-Munroe Falls City Schools Board of Education granted exempt status to portions of the facility that were used for “hospital purposes.” The remainder of the facility, which is approximately 55,000 square feet and used for Lifestyles Fitness Center, was denied tax exemption. The hospital wants the fitness center to be tax exempt as well because it is not-for-profit and “clinically integrated’ into the facility. The fees paid by patrons are funneled back into the facility.

Testa and the school district argue the fitness center is not necessarily charitable, so should not qualify for tax exempt status.

As of the beginning of 2015, Akron General owes approximately $612,500 in back taxes, about $387,000 of which is due to the school district. If the fitness center does not receive tax exempt status, the hospital would owe approximately $250,000 per year in property taxes on the space.