You Can Call Me Reverand Little Merry Sunshine

You'll recall that last fall I attended a meeting with the Cook County Assessor's Office regarding the reassessment of my home (and all the others in my township). My assessment had increased 45% in 12 months and also included many inaccuracies about my home (1 1/2 car garage, 2 1/2 baths, etc.), but despite numerous appeals in past years, I could never get the County to change my assessments and inaccurate description of my home.

So I hired an attorney to do the job for me this year. And just moments ago, I learned that I had success. I'm gonna save $400 this year and $1200 over the next three years! Yeah! Of course, the attorney cost me $270 PLUS all the paperwork.

But evidently I didn't have to work that hard. In fact, it seems that if I'd simply spent 30 seconds to complete a form online I'd become an ordained minister and could then slap a cross on the front of my house - all for FREE mind you - and I could completely eliminate my property taxes!

Man's home is castle—and church
State gives Lake Bluff estate a religious break worth $80,000 in property tax, but village says not so fast to pastor-owner

By Susan Kuczka Chicago Tribune reporter
11:06 PM CDT, July 16, 2008

A Lake Bluff resident said he converted this $3 million estate into the Armenian Church of Lake Bluff so his ailing wife and daughter can worship. (Tribune photo by David Trotman-Wilkins)

When George Michael placed a cross on the side of his lakefront mansion, neighbors assumed the decoration was simply a display of the man's religious faith.What his neighbors didn't know is that Michael had decided to convert his $3 million residence into the Armenian Church of Lake Bluff, qualifying him for a nearly $80,000 break on his annual property tax bill.

Now, locals are questioning whether the property is a church at all. Village officials wonder how they'll be able to make up the lost revenue, and residents worry that their share of the tax burden will grow as a result.

Meanwhile, Lake Bluff officials notified Michael that if he is running a church, he'll need to pay more than $115,000 in fines for failing to get the village's permission, setting up a possible court battle.

"It's a honkin' house," said Shields Township Assessor Teresia Yakes, who recently appraised the Michael mansion.With "No Trespassing" and "Private Property" signs everywhere, the Shore Acres subdivision looks like an unlikely place to open a church.

Michael told state officials last month that he began his North Shore congregation more than a year ago after he got a pastor's degree from an online religious site.

While only a handful of close friends and family attend the church, Michael opened his house of worship to spare his disabled wife the hardship of having to travel to practice her religion, attorney Mark Belognia said.

"He's a devoutly religious man, as is his family, and this is the best and only way for them on a weekly basis to practice their faith," Belognia said.

Neighbors said they have never seen evidence of Sunday services held at the home. Village officials said Michael didn't approach them about special permits he would need to open a new church.

'I do find it a stretch'

And in February, the Lake County Board of Review rejected Michael's claim that he had converted his home into a church, ruling the property's use appeared more consistent with a residence than a church, said board Supervisor Martin Paulson.

"I do find it a stretch," Paulson said of the state's June 12 decision to grant Michael a property tax exemption.

Michael, owner of a Chicago real estate firm and a bank official, won the state exemption after he presented the Illinois Department of Revenue with a copy of his clergy license from the Church of Spiritual Humanism, photos of a church altar, the church's affidavit of organization from January 2007, church bylaws and copies of weekly church bulletins dating to December.

He also provided copies of a quitclaim deed from March 2007 that transferred ownership of the couple's 22,000-square-foot home—formerly listed in the name of his wife, Susan—to the Armenian Church of Lake Bluff, and an October 2007 church bank statement from Citizens Bank & Trust in Chicago. Michael is vice chairman of the bank, Belognia said.

Michael also provided a list of 10 members and officers of his parish council, including at least one who is an independent contractor with Michael's real estate firm, Michael Realty & Associates in Chicago, according to his attorney.

The information Michael supplied convinced state officials that the residence in the 1900 block of Shore Acres Drive was a church.

"We didn't go up on a Sunday morning and see if there were services, but we did require them to sign an affidavit and send us church bulletins about services," said Revenue Department spokesman Mike Klemens. "We did enough checking . . . to convince us that yes, even though the village doesn't want to grant the exemption, and the Board of Review didn't, it is a church, it's being used as a church, so we granted it."

Michael's attorney said his client jumped through the bureaucratic hoops so that his wife and daughter—both of whom are physically disabled—could avoid travel to attend Armenian church services elsewhere. Previously, the Michaels had regularly attended services at St. Gregory the Illuminator Church in Chicago, his attorney said.

"He believes he has a constitutional right to practice his faith, that he violated no zoning codes and that he properly received a property tax exemption for his church," Belognia said.

Michael purchased the home on a bluff overlooking Lake Michigan in 2004 for about $3 million. He built an addition that contains a playroom for his children and installed an electric lift so his wife could get down the bluff to the beach below his home. He was billed $79,758 for 2006 property taxes.

The Michaels live in the house but have set off a portion for the church, the attorney said.

Although Lake Bluff officials plan to appeal the state's decision, village manager Drew Irvin said officials on June 24 sent Michael a $115,000 bill for violating zoning ordinances, based on the very affidavits Michael provided to the state. Local ordinances do not allow for operation of a church in an area of town zoned as "country estate residence" without a special permit, Irvin said. Village code allows a fine of up to $500 per day, per violation. According to Michael's application, he had been operating a church for 460 days, but village officials levied a fine for half that much, Irvin said."The village is simply following up on zoning violations," he said.

$10.3 million in dispute

The zoning dispute is not the only financial matter Michael faces.

Last month, a Milwaukee bank—M&I Marshall & Ilsley Bank—filed a foreclosure lawsuit against Michael and his brother, Robert C. Michael, in Cook County Circuit Court, seeking $10.3 million in unpaid mortgage payments and loans on commercial buildings, storefronts and residential buildings in Chicago and nearby suburbs.

Michael declined an interview, but Belognia said he hoped to amicably resolve the zoning issues. He notified the village July 3 that Michael would suspend services.

The Diocese of the Armenian Church of America in New York, meanwhile, has no record that the Armenian Church of Lake Bluff exists—or that it has been consecrated as a house of worship.

Michael remains registered as a parishioner at St. Gregory, according to Rachel Goshgarian, director of the diocese's Zohrab Information Center.

UPDATE 7/19/2008: John Kass of the Chicago Tribune ran a column yesterday about what an upstanding guy Mr. Michael is (not).