From AP - News Headlines -

City of Urbana, District 116, Park District Now Face Carle Suit over Property Taxes

The Carle Foundation is bringing more defendants into a lawsuit over the hospital's property tax status.

Carle has had to pay property taxes for several hospital buildings since 2002, when Champaign County and Cunningham Township officials ruled that Carle didn't provide enough charity care to be considered tax-exempt. The hospital appealed - that case is awaiting a ruling from state revenue officials. In the meantime, Carle sued the state, the county and the township claiming they improperly revoked Carle's tax exemption.

Now Carle's senior vice president for legal affairs, L.J. Fallon, says they've added the city of Urbana, the Urbana school district and the Urbana park district to the suit. He claims they should pay back their share of nearly $800,000 Carle agreed to put up in lieu of paying property taxes if Carle won its suit.

Fallon acknowledges this will put a crimp in talks over the tax exemption of several former Carle Clinic buildings - property that could also be taken off the tax rolls now that they're part of Carle Hospital under this year's merger.

"I can't imagine that the filing of this lawsuit -- although we tried to give them advance notice and prepare them -- I can't gauge whether or not they'll still want to have discussions about payment in lieu of taxes," said Fallon. "They, like us, probably want to see how this is going to resolve so that we can have some really meaningful discussions."

Earlier this year the Illinois Supreme Court ruled that another Urbana hospital, Provena Covenant Medical Center, was liable for property taxes. A Champaign County judge is set to hear Carle's latest motion Tuesday.

In a statement released late Thursday afternoon, Urbana Mayor Laurel Prussing said she was disappointed by Carle's decision to add defendants. Prussing contends that Carle never mentioned the concerns it outlined in the suit.