The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1995, Landmark Communications, Inc.

DATE: Friday, October 13, 1995               TAG: 9510110289
SECTION: PORTSMOUTH CURRENTS      PAGE: 17   EDITION: FINAL 
SOURCE: BY TONI WHITT, STAFF WRITER 
                                             LENGTH: Short :   46 lines

CITY ALLOWS CHURCH TO TAKE OVER BUS DEPOT

The City Council on Tuesday broke with its unofficial policy of prohibiting tax-exempt groups from taking over property zoned for business, when it voted to allow a church to expand into a former bus station.

The council voted 4-2 to allow St. Mark's Church of Deliverance on Washington Street to expand into an abandoned Trailways depot which abuts the church property.

The church has been wanting to expand for more than a year to add educational facilities by converting the old bus station to church use. Last year, the council denied the church's request in hopes that the bus station would become viable commercial property - one that would pay taxes to the financially-strapped city.

When the church renewed its request this year, it offered to pay the city $1,700 in lieu of taxes. By law, churches cannot be taxed. City Attorney G. Timothy Oksman said he didn't believe the city could make a binding agreement forcing the church to make annual payments on the bus station property.

The bus station has remained vacant and there don't appear to be any buyers other than the church.

The Rev. Marion Jones, the pastor of the church, said they hope to expand services and classes for teenagers into the space. The church also plans to improve the bus depot's facade so that it looks like part of the church, which was built in 1909.

Several council members said they were pleased with the proposed improvements and would vote for the expansion, even though the city could not collect the payment in lieu of taxes.

``I don't think we should try to force payment,'' said Councilman James C. Hawks. ``I don't think it's proper for the city to take the money. This is not a new church, it's been there since 1909. This congregation has been there 23 years. We simply ought to grant this.''

But Councilman Cameron C. Pitts said that without the annual payment, he could not support the church expansion.

``I think we're putting the city in terrible jeopardy,'' Pitts said. ``We've turned down three other properties that are similar.'' by CNB