Render unto Caeser?
A similar situation that I am familiar with. I grew up in Dallas, TX a few decades ago. The YMCA had a 17 story building in the middle of Downtown Dallas (605 Ervay Street) that housed a major YMCA Facility, but also had low cost housing to the indigent. It was demolished a few years ago and was replaced with a modern mixed use complex. It became perhaps the most expensive real estate in Downtown Dallas. How much more could the YMCA (or the First Baptist Church across the street) have commanded if it had its tax exempt status preserved? How much lost revenue would the city of Dallas had?