TCH lawsuit months away from being heard

It appears that it will be at least several months before the Business Court division of the Oakland County Circuit Court hears arguments in the lawsuit filed by the City of Birmingham against The Community House Association over the proposed sale of the iconic building on Bates Street in the downtown area of the city.

Officials for The Community House Association on November 3 of last year announced plans to evolve into the Birmingham Area Community Foundation to carry on the original mission of group and the sale of the building. Proceeds from the sale will be used, according to officials from The Community House (TCH), to retire debt and provide seed money for the new community foundation.

The city filed suit and asked the court for injunctive relief and attorneys for The Community House have filed a motion to have the lawsuit dismissed. The main issue in the legal case is the long-standing deed restrictions governing The Community House.

A buyer for The Community House, The United Jewish Foundation of Detroit and the Jewish Federation of Detroit, in recent weeks had been working on an agreement to purchase the facility for above the $7 million appraised value. The agreement will reportedly incorporate the deed restrictions.

The Birmingham City Commission on Monday, February 9, held a closed door session about the lawsuit and mayor Clinton Baller issued a statement to update the public on the legal battle.

According to the statement, the two sides in the lawsuit held a required session on Friday, February 6, to look at scheduling arguments in the court and were informed by the judge that it will be at least June before any issues can be argued before the court.

Both parties have also discussed the lawsuit and, as part of the statement from Baller, the mayor said: “The city had presented in advance what it believes necessary for compliance with the deed restrictions and to protect the community’s interest in The Community House -- essentially a rough draft of the city’s vision for what The Community House should be under any ownership. The buyer gave us some insight into what it envisions for use of the building at 380 S. Bates Street.”

As a result of the discussion, we all feel confident in saying that all of the participants on both sides would agree that while there was some overlap between the two visions, much more discussion and movement would be necessary for all to feel comfortably aligned.”

Baller’s statement to the community also said, “In the meantime, while we continue to seek a possible resolution, the city will continue to pursue its case to ensure that the deed restrictions and use restrictions are complied with. The city will begin the process of seeking documents and information from The Community House about its past and current plans and actions that led to the current situation.”

Baller announced weeks ago that the city would provide ongoing updates on the issue.