New Pittsburgh YMCA Branch Approved Despite Protests Over Tax-Exempt Status

The YMCA of Greater Pittsburgh received approval to open a new branch last month despite objections from local fitness clubs about the Y's tax-exempt status.

The Y plans to renovate and expand an ice complex in Bethel Park, PA, to house a new 62,000-square-foot branch. The zoning application for the property was approved last month in a council meeting where representatives from two local clubs voiced concerns that the facility would harm their businesses because it is exempt from paying taxes, according to meeting footage.

Kevin Sanker, vice president of operations at Healthtrax Fitness and Wellness, Glastonbury, CT, and executive director of the Bethel Park Healthrax, spoke about his concerns during the meeting.

"There's no doubt that the distinctions between tax-exempt and tax-paying companies are increasingly unclear, especially when they are moving out of the neediest communities and relocating to suburban and other middle-to-upper-income areas," Sanker said. "It is no secret that many Ys now operate their fitness centers more like a business than a charity. The YMCA's exemption from property taxes creates an uneven playing field for tax-paying facilities. Bottom line, selling adult fitness is a business, and being tax-exempt is a privilege, not a right."

Ann Wilson, who owns a Curves less than a mile from the proposed Y location, also spoke out against the project. Wilson said she will be making a large investment in her business, which will increase Bethel Park's tax revenue, "provided that our area's small businesses are not undercut by a virtually identical business model that provides the same exact services, yet does not pay taxes to help support our community."

Several community members at the meeting questioned why the Y's services were needed in an area where similar programs were offered through the local recreation department. They also wondered whether the Y would detract from established nonprofit organizations that are helping community members.

Council members approved the Y's zoning application to use and develop the property but noted that the facility's tax-exempt status could be challenged with the county.

The new facility will be called the Spencer Family Y and will serve as a replacement for Y of Greater Pittsburgh's current South Hills branch. According to a statement from the Y, one of the ice complex's existing ice rinks will be retained and renovated. Other renovations will include the addition of a gym, an indoor pool, group fitness studios, locker rooms, a community all-purpose room and a child watch area.

The Y of Greater Pittsburgh also is in the process of expanding the existing East Suburban Family Y. After the 30,000-square-foot, $11.3 million renovation is completed next year, the facility will be known as the Sampson Family Y.