Fate of the Birmingham Community House

Most likely the majority of residents in Birmingham would agree on one thing about The Community House (TCH) in the city: It would be ideal if the iconic building on Bates Street in the city remains as is and continues to serve as a gathering place for the community.

The only question is who will own the building, a decision that will most likely be made by Oakland County Circuit Court Judge Michael Warren of the business court division where the case is pending. So it could be weeks or months before a final judgement.

As capsulized background, the City of Birmingham filed suit against The Community House Association following an announcement by TCH officials in early November that the group was changing its name to the Birmingham Community Foundation, would be continuing with its normal outreach to nonprofit groups and residents to fulfill the original mission of the association as dictated by its founders and would be selling the building, recently appraised at over $7 million. Proceeds from the building, they said, would be used to retire debt and serve as seed money for the community foundation.

The main objection by the city has to do with deed restrictions for the property and the original intent of TCH founders who envisioned the building to remain as a community center. As for the deed restrictions, they specifically say that if the TCH Association was ever dissolved, then the building had to be given (i.e. at no charge) to another non-profit or failing that, rented at a nominal rate to the city.

Technically, the association has not been dissolved, simply renamed so it would seem that sale of the building would be allowed – which on the surface seems like a shell-and-pea game but that will be decided by the court.

Should the court determine that the deed restrictions and founders’ original intent prevent sale of the building, then it would seem the city would be able to finally meet with TCH officials. Both sides in this dispute have a different version of why city officials have not met with TCH folk and been allowed to tour the building. Putting that issue aside, a meeting of the two parties could benefit the community by allowing the city see the condition of the facility and be given numbers that show operational costs of the building.

There are numerous questions surrounding the issue of city ownership or low-cost leasing of the building. To repeat what we have raised in the past, would the city be able and willing to pay off the debts of the current TCH Association to make transfer of the building ownership or a long-term lease arrangement more acceptable?

We assume there would have to be at least minimal staffing at a community center, so what would that cost be and would the city be willing to underwrite that expense and for how long?

Because the court decision could be many weeks down the road, the city should immediately chart a plan of action in case it wins the court case and ends up acquiring the building one way or another. It would seem the city should establish a non-profit foundation and a board of directors who ultimately would manage the facility.

Meanwhile, the city commission needs to get serious – stop with the nonsensical talk we have heard of people volunteering to run the childhood education program or the overall facility. Let’s see (soon) a concrete plan for the city taking over the community center.

If the court ultimately decides that TCH officials can sell the building, then it would appear the city would have to match or beat an offer that supposedly is pending from what we have learned is the Jewish Federation of Detroit, reportedly more than the $7 million appraisal. Money talks.

We happen to think that the offer from the Jewish Federation of Detroit is an ideal situation. Based on what we have been told, the purchase agreement for the sale, which was to have been hammered out weeks ago, will include the original deed restrictions for the building and a codified acceptance that the building will still remain a community center serving residents for meetings and activities, as well as paid events like weddings, for example. Also part of the purchase agreement is that the new owners would continue with the early childhood education program that operates there now.

We have shared this privately with city officials and now say so publicly. While we support what the city did in slowing down the sale of The Community House so critical questions could be decided, if there is going to be a sale, The Jewish Federation of Detroit offer would seem to check all the boxes and answer the concerns expressed by the city.

So now all that is needed is a decision by the judge.