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Archdiocese Considers Sale of Key Church Properties as Part of Bankruptcy
By Stephen Tellier
KAAL
February 24, 2015
http://www.kaaltv.com/article/stories/S3716154.shtml?cat=10151
[with video]
The Archdiocese of St. Paul and Minneapolis is exploring the possibility of selling four key church properties—a move that was revealed during a bankruptcy proceeding on Tuesday afternoon.
Three of the buildings in question are within walking distance from the Cathedral of St. Paul, and house most, if not all, archdiocese staff, as well as the Archbishop's own residence. But the church could offload them as it deals with the cost of claims connected to a slew of clergy sex abuse lawsuits.
"I'm very sad, but I'm not surprised, because we are looking at some massive, massive liabilities on the part of the Archdiocese," said Dr. Charles Reid, a law professor at the University of St. Thomas and an expert on the Catholic Church.
Reid said the properties are large assets with historic value—and prime real estate as well, all overlooking downtown St. Paul.
In its bankruptcy filing last month, the Archdiocese estimated the current value of all four properties it could potentially sell: The chancery building was valued at $6.3 million, the Hayden Center at $2.4 million, and the Dayton Building at $1.4 million. Add in a fourth property in Northfield, and the total jumps to $10.5 million.
Selling the properties would provide a large chunk of cash at a time the Archdiocese desperately needs it.
"You hate to see the Archdiocese decimated. On the other hand, it's a moral requirement, it's a legal requirement—the victims have to be made whole," Reid said.
At Tuesday's proceeding, an Archdiocese official said it plans to ask a judge overseeing the bankruptcy for permission to sell the buildings. It's unclear when that might happen.
The Archdiocese says talk of selling the properties is very preliminary, and that this is just the beginning of an exceedingly complex process. If the properties are eventually sold, it's unclear where Archdiocese staff offices would be located.
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