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  Bankruptcy Judge OKs Sale of Diocese Properties

By Shirley Ragsdale
Des Moines Register [Davenport IA]
May 30, 2007

http://desmoinesregister.com/apps/pbcs.dll/article?AID=/20070530/NEWS/70530036/1001/NEWS

A federal bankruptcy judge on Wednesday approved the sale of three properties by the Diocese of Davenport to pay its major creditors — individuals with claims of child sexual abuse by priests.

The diocese filed for Chapter 11 bankruptcy Oct. 10, 2006, because it said settlement demands by victims of abuse exceeded the diocese's ability to pay current and future claims.

Southern District Bankruptcy Judge Lee M. Jackwig approved the sale of:

• A farm at 3718 Telegraph Road., Davenport, to Charles Van Fossen of Davenport for $310,000.

• A residence at 803 E. 39th St., Davenport, to Mr. and Mrs. James Ridge of Long Grove for $70,125.

During the hearing something of a bidding war broke out over the bishop's residence, a brick duplex located at 2761 Scott St., Davenport, when Richard Davidson, attorney for the diocese, received another, higher, bid.

St. Ambrose University had bid on the parcel earlier, with the intention of housing its president there. But Charles Diestelkamp, an IPSCO Steel employee relocating from Alabama to Davenport bid $178,500. And a university representative said they would match it.

"The judge approved the sale of all three properties," Davidson said. "I suggested that we negotiate with both interested parties and then sell to the highest bidder. They have until 5 p.m. tomorrow to revise their offers. We won't have to go back to the bankruptcy court for further approval."

Attorneys for the abuse victims did not oppose the sale of the diocese's major holdings. They did, however, ask for more information regarding the sales, according to Craig Levien, the Davenport attorney who represented the abuse victims in civil court and negotiations with the diocese.

"The diocese assured the court that the buyers of the Telegraph Road and the East 39th Street properties have no connection with the diocese," Levien said.

Another remaining asset to be sold is the St. Vincent Center, where the diocese chancery is located.

"The judge inquired about the disposition of the chancery," Davidson said. "The diocese is investigating the possibility of relocating to less expensive office space. It would sell that property as soon as that is done, which may be as soon as the next two weeks." However, the property is not yet listed for sale.

Included in the agreement was payment of $21,700 to Ruhl & Ruhl Commercial, a Quad-Cities real estate firm, commission on the sale of the Telegraph Road property.

Hamid R. Rafatjoo, the Los Angeles attorney representing abuse victims, did not return phone calls seeking for comment.

 
 

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