By Jason M. White
April 24, 2008 06:48 am
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PENDLETON — A church may need to step in to settle the dispute between MyTime Fitness club owners and their landlord.
Even if MyTime Fitness raises enough money to pay back a loan, the club cannot keep its fitness equipment, building owner Chuck Clevenger said.
Clevenger has criticized club owner Phil Holden for accepting money from club members, who have been trying to raise money so the club could relocate instead of close down.
“It’s unethical and un-biblical,” Clevenger said. “To accept people’s money like this without them knowing all the facts, I consider deception.”
At issue is an outstanding $85,000 loan for fitness equipment at the club gym. Clevenger said the equipment belongs to him, and he plans to auction off the equipment to pay back the loan.
Currently, he does not plan to let club members pay off the loan, buy the equipment or participate in the auction. However, he said he was willing to talk about the possibility with Holden through a conversation mediated by their church leaders.
MyTime Fitness is scheduled to close May 24, because Clevenger is ending the lease agreement more than eight years early. Holden made the official announcement on April 7.
Shortly afterward, club members organized to help the business relocate. Members are asking 170 people to commit to $500 one-year memberships and pay in advance. This would generate enough money to pay back the $85,000 loan. Members had pledged about $50,000 as of earlier in the week, Holden said.
Anyone who pays for a one-year membership will get his money back if the club cannot reopen at a new location, Holden said.
Clevenger has criticized this plan because it is not the arrangement he and Holden reached after meeting with leaders of their church to facilitate a discussion several months ago.
They agreed to auction off the equipment to pay back the loan. They did not mention the possibility of letting club members raise money to pay back the loan so Holden could keep the equipment, Clevenger said.
When asked what the difference would be if club members bought the equipment or if another company bought the equipment, Clevenger reiterated that the church agreement was to auction off the equipment, and the agreement did not mention the possibility of club members raising money.
Holden should not accept money from people who do not know all the facts, Clevenger said. MyTime Fitness was late on many of its lease payments and owed back rent, he said.
Clevenger has accused the fitness club of owing money but has not said how much and has not made any attempt to collect the money. Last week, Clevenger did not want to discuss any financial aspects of his business arrangement with the club but has since changed his mind. He just refuses to mention specifics.
Holden has admitted he got a little behind with some lease payments during the few years after the club’s 2001 opening.
“It was your typical growing pains of a new business,” he said.
MyTime Fitness was capable of catching up, Holden said, as the club’s membership had grown to 1,400.
However, Clevenger decided to waive all back rent to give the club a chance to start over, Holden said.
“He basically said he felt moved by the Lord to do this,” Holden said. “His offer was totally unexpected.”
Clevenger has not asked for any of the rent money and has apparently not attempted any legal action to get it, he said.
“I would never sue a Christian brother,” Clevenger said. “I don’t expect to ever get a dime of that money, and that’s OK. I just want him to leave the building by June 1.”
He said he believes God wants the fitness club to close so a Christian school could open in its place, which was the main reason for terminating the club’s lease agreement about eight years early, he said.
Clevenger always intended to use the building as a Christian school, but signed a 15-year lease agreement with MyTime Fitness anyway, because he did not know when God would want the building turned into a school, he said.
“I didn’t know what the Lord’s timing was,” Clevenger said. “He’s decided now’s the time.”
Holden said he and his wife welcome a Christian school into the community. He questions, however, whether the building was always intended for a school. Clevenger allowed Holden active involvement with the planning and design of the building for a fitness club, he said.
Clevenger offered to help Holden after overhearing him speak about his dreams to open a fitness center in town.
“I trusted him,” Holden said.
Then last year, Clevenger learned that a Christian school in Fortville was in danger of closing and displacing more than 40 students. Clevenger decided to remove MyTime Fitness from his building and make a school for those students.
Fortville Community Christian School has 10 teachers and staff who will move into the new Pendleton school, which will charge tuition. The school is scheduled to open for the 2008-09 school year.
School administrator Tony McCrary declined to comment because of issues between the landowner, Clevenger, and current tenant, MyTime Fitness.
Clevenger did not want to discuss any financial information about the school, but said he believed God would provide for the project.
“I’m putting faith in the Lord that income will come,” he said. “The Lord has always provided for me.”
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At a glance
MyTime Fitness equipment dispute
AT ISSUE: An outstanding $85,000 loan for fitness equipment at the club gym.
CLUB OWNER PHIL HOLDEN SAYS: Club members took it upon themselves to help the business relocate instead of shut down. Members are asking 170 people to commit to $500 one-year memberships and pay in advance. This would generate enough money to pay back the $85,000 loan and let Holden keep the equipment.
BUILDING OWNER CHUCK CLEVENGER SAYS: The equipment belongs to him, and he will auction it off, according to an agreement he reached with Holden after a discussion facilitated by the leadership of their church. The agreement did not mention the possibility of club members raising money. So he does not plan to let club members pay off the loan, buy the equipment or participate in the auction.
POSSIBLE SOLUTION: Clevenger is willing to have another meeting with Holden and the church leadership to discuss the possibility of letting MyTime Fitness pay off the loan and keep its equipment.
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