H.Y.P.E CEO Talking..

Reading the story in the Arab American News few things stood out the first is this statement made by the CEO of H.Y.P.E

Sayed says that when it came time to choose a facility for the organization, he had over 30 locations that he could have chosen from, but settled on the location in Dearborn Heights after Mayor Dan Paletko was very supportive of the idea of opening up the facility in the city, verbally telling the organization that the city would do their best to recognize them as a non-profit charity. However, the tone from the city began to change when they billed H.Y.P.E. with $26,000 in property taxes in December 2011, while the building was still under construction. The organization is currently in the process of appealing that bill

That was the first mistake made having the Mayor of this City tell you anything verbally. Those of us who have had dealings with the Mayor in the past understand his words are cheap.

But despite the organization’s certification by the Department of Energy, Labor & Economic Growth as a non profit organization in 2006, as well as being exempt from federal income tax by the Internal Revenue Service since 2008, the city is still giving the organization a hard time. According to Sayed, one of the main issues the city has with the organization is the membership rates that they charge individuals to use the facility. Adults for example are charged $29 a month for a membership, but Sayed says the costs are to maintain a staff of over 20 as well as provide equipment and uniforms for the facility. When comparing the membership rates to other venues, H.Y.P.E.’s rates are actually on the lower end. The YMCA, a tax exempt non profit charity for example, charges $59 a month for a membership.

Read full story here

This battle is far from over when the dust settles I hope we don’t find our City with an empty building or a rec center taken over by Wayne County.

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6 thoughts on “H.Y.P.E CEO Talking..”

  1. I agree with you Anonymous 1000. Also, most people seem to confuse non-profit with tax-exempt. They are not one and the same. IRS will follow federal regulations for granting non-profit status which means the organization doesn’t have to pay income tax. Tax-empt status is determined by state laws and refers to the paying of property tax on buildings and land the non-profit may own. Neither the mayor nor the council can determine tax-exempt status – only the city assessor. The State Department of Treasury told me that an assessor could lose his or her state certification (which means they could never work as an assessor again) if they purposely failed to follow the law.

    As for the 30 or more sites HYPE could have had — how many of them were available with the sweet deal the County gave HYPE of just $1 for the land? Was any other organization interested in the land? Was the availability of the land made public? Could the County have sold it for real money and which would help pay down the deficit the County is facing? Also, federal law strictly prohibits HUD funds from being used for recreational facilities. If the charity, Zaman, that Anonymous 1000 was talking about is no longer part of the building, will the money have to go back to HUD?

    There’s a legal process going on now and I think it would be a good idea to let this issue play out in court. The State will decide and then both the City and HYPE will have to abide by the decision. Making this a political issue and trying to put political pressure on anyone just doesn’t seem to be the right thing to do. Why not let the legal system do what it’s supposed to do?

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  2. HYPE should have done their homework ahead of time and not taken the word of a politician that they would be exempt. On top of it you have to file an application to be exempt and HYPE didn’t do that until after the deadline and after our assessor advised them to. HYPE needs to stop placing the blame on others and step up to the fact they didn’t do their homework and thought they would get a free ride. By the way…what happened to Zaman? From what I’ve hear HYPE forced them out and took the grant money that was supposed to be allocated to them.

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  3. I think the H.y.p.e should
    Pay theirs taxes…its funny how everytime something goes wrong you all blame the Mayor come in people ..CEO if the hype
    Should of had something in writing I think it’s Bs but it is easier to blame
    The Mayor …pay your taxes people we all have too …

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