A circuit judge has ruled that The Glebe, an upscale retirement community in Botetourt County, does not meet state tax-exempt guidelines as a religious and benevolent organization and must pay taxes to Botetourt County.

That tax bill is significant. Botetourt County Administrator Jerry Burgess estimated that The Glebe should be paying the county about $235,000 annually in taxes. It was unclear Friday what the total bill would be for The Glebe, which opened in August 2005.

Judge Michael Irvine's ruling Friday concludes a March trial that resulted from a 2006 lawsuit filed by Botetourt County against The Glebe and its parent company, Virginia Baptist Homes.

The lawsuit argued that the nonprofit retirement facility in Daleville is a resort for wealthy retirees and should pay real estate taxes to the county rather than be exempt under guidelines that protect religious or benevolent organizations.

Virginia Baptist Homes received the tax-exempt status from the state in 1976. Under the designation, the company argued that any properties owned by the organization are exempt from paying state, local and inheritance taxes.

But Irvine ruled that such status for Virginia Baptist Homes "does not provide all VBH property with a tax exemption."

In addition to The Glebe, Virginia Baptist Homes has three other facilities in Newport News, Culpeper and Richmond.

It's unclear if they will be affected by the ruling. It was also unclear Friday if the ruling would be appealed.

The judge ruled that "the VBH's operation of The Glebe fails to satisfy the requirement of being exclusively for religious purposes," because it is open to residents regardless of religious beliefs, and its employees are not expected to adhere to any specific religion.

Irvine stated that the Virginia Baptist Homes contention at the trial that its care stems from its religious beliefs is insufficient to qualify for tax-exempt status.

"In its common usage, the term religion entails much more than good will towards others," Irvine wrote in his opinion.

Similarly, Irvine rejected Virginia Baptist Homes' argument that The Glebe was a benevolent organization.

Botetourt County Attorney William Heartwell had argued during the trial that The Glebe is not benevolent because it rejects those in poor health with lesser incomes. He referred to six-figure entrance fees in the range of $300,000 and monthly fees for some residents that exceed $4,000.

Officials with Virginia Baptist Homes testified that The Glebe initially could only accept residents who had the ability to pay for their entire stay at the facility. That was necessary to satisfy the terms of $55.5 million in bonds received from the Roanoke County Industrial Development Authority to build the facility.

By those terms, reservations for at least 70 percent of The Glebe's beds had to be purchased by residents who can afford to live there before the facility can accept residents who may need financial assistance.

With that condition met, The Glebe began to accept residents last fall whose life expectancy may exceed their ability to pay.

But Irvine ruled that benevolence cannot be based on a future act. He questioned whether The Glebe would be able to offer financial assistance anytime soon, stating "it is millions of dollars in debt" and that its fund to help residents "is so small as to be inconsequential."

Virginia Baptist Homes president Randall Robinson said the ruling would not interrupt operations at The Glebe or its plans for expansion. The facility has 153 apartments, 20 cottages, 32 assisted living slots and 32 nursing home slots.

"It is not an understatement to say we are disappointed, but we are going forward with The Glebe and we will continue to serve our mission and the people who are residing at The Glebe and the folks around the Roanoke Valley," he said.

Botetourt County officials say The Glebe is a worthwhile organization but does not deserve tax-exempt status.

"Botetourt County and its taxpayers are gratified by Judge Irvine's decision," Burgess said. "We welcome The Glebe as a corporate citizen of Botetourt County and are pleased that our differences over its tax status have been resolved."

Robinson said it was too soon to say if Virginia Baptist Homes would appeal the ruling. He said a decision would come after consultation with the organization's attorneys and board of directors.