Several Archdiocese of St. Paul and Minneapolis Properties Up for Sale

By Beth Mcdonough
KSTP
May 27, 2015

http://kstp.com/news/stories/S3807807.shtml?cat=1

"For sale" signs have gone up in front of several properties owned by the Archdiocese of St. Paul and Minneapolis.

The properties include the 244 Dayton Avenue location, home to the office of The Catholic Spirit; the Archbishops' residence and chancery offices at 226 Summit Avenue; the Hayden Center at 328 West Kellogg Boulevard and a vacant lot at 250 Dayton Avenue. There's another property in Northfield for sale as well.

The sales are part of an effort to provide a chunk of cash at a time when the Archdiocese desperately needs it. 

5 EYEWITNESS NEWS asked Tom Mertens, the chief financial officer for the Archdiocese, if this was a hard move to make.

"I think it was a difficult move for us because of the significance and history of the properties," he said.

Dr. Charles Reid, with the University of St. Thomas, elaborated: "The Archbishops' residence, the chancery building, these are important buildings in the institutional life in the Catholic Church."

They are prime properties given their proximity to the cathedral and downtown St. Paul. In a January bankruptcy filing, the current value of all the properties combined was listed as $10.5 million. 

The Chancery Building is worth $6.3 million, the Hayden Center $2.4 million, the Dayton Building $1.4 million, plus there's the Northfield site. 

The move is symbolic according to Reid.

"It's a sad day; on the other hand it's a vindication for the victims so it's both of those events."

And it's a cost saving move. 

Mertens said Monday the cost to own the buildings, as well as the cost of maintenance and repairs, exceeds the estimated costs to lease a building.

"The need to sell the buildings and get into space somewhere certainly would make our operation much more efficient and save us some money." 

Mertens said there haven't been any offers so far. The bankruptcy court has to approve the deals. Proceeds from the sales would go to court to pay creditors, meaning the victims suing for sex abuse allegedly by priests. 

While the buildings are valued at more than $10 million, Reid said that's nowhere near enough to cover all the sex abuse settlements. Plus, victims have until August to file a claim, so even more could come forward. Since the settlements are private, it is unknown exactly how much money is at stake.