Monday, June 7, 2010

Virginia Tech-Carilion School of Medicine will pay some real estate taxes

Negotiations between city finance personnel and Carilion Clinic have given birth to an arrangement that yields fractional real estate tax revenue for the city. The negotiated agreement will have Carilion, through its subsidiary Carilion Clinic Physicians, LLC pay one-sixth of the taxes on the building and the full tax amount on the land.

Carilion has agreed that this arrangement will remain in place as long as Carilion or one of its affiliates retains an ownership interest in the land and the indirect interest in the one-sixth portion of the facility.

In 2001 the agreement between Carilion Clinic and the City of Roanoke stated that all projects in the South Jefferson Redevelopment area owned or under the control of Carilion Biomedical Institute would be subject to real estate taxes. Subsequently Carilion partnered with Virginia Tech to garner state funding for startup of the medical school.

The partnership with Virginia Tech, a tax-exempt institution, resulted in the property and improvements subject to tax-exempt status. The tax assessed would adjust should Carilion’s fractional interest in the building or land change.

Council member David Trinkle as an employee of Carilion abstained from voting. With no discussion council unanimously approved the agreement at Monday’s 2:00 p.m. council meeting.

Posted By Valerie Garner

Categories: Business

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