Tuesday, November 15, 2011

Diocese increases offer for Crystal Cathedral to $55.4 million

The Roman Catholic Diocese of Orange has once again increased its offer to buy the Crystal Cathedral -- by $1.8 million to $55.4 million.

Alan Martin, an attorney representing the diocese, made the announcement about the cash offer Wednesday in a bankruptcy court hearing that focused on issues that may arise during Monday's confirmation hearing. 

The diocese also promised to honor the legacy of Crystal Cathedral founder Robert H. Schuller, maintain a space in the tower for inter-faith worship and preserve the integrity of the Memorial Gardens.

At Monday's hearing, Judge Robert Kwan is expected to approve one of two proposals to buy the financially ailing cathedral – one by the diocese and a $51.5 million offer by Chapman University. 

The main difference between the two proposals is that Chapman is offering a 15-year leaseback plan so the ministry can continue as well as a buyback option so the ministry can purchase core buildings including the iconic glass sanctuary.

Last month, the cathedral's board picked Chapman as the preferred buyer to purchase the property.

The diocese is offering the option for the ministry to continue operating in the core buildings for a few years and then move to where St. Callistus Catholic Church is currently located – down the street at 12921 S. Lewis St.

Martin told the judge that officials at the diocese have been in discussion with the Schuller family over the last few days to find out more about their needs. 

Maria Rullo Schinderle, general counsel for the diocese, said if the sale goes through, the diocese will take every step to ensure that the legacy of the Crystal Cathedral is preserved.

The diocese had promised that there will be a library in the Visitor Center dedicated to founder Robert H. Schuller and his wife, Arvella, who began their ministry more than 55 years ago atop the roof of a snack shack in the Orange drive-in theater. 

The diocese has also promised that a chapel on the top floor of the Tower of Hope will remain untouched as an inter-faith place of worship.

Based on these discussions, Marc Winthrop, an attorney representing Crystal Cathedral Ministries, said the church's board is now leaving the door open to the diocese.

"Chapman is still their preferred buyer," he said. "But, now they are somewhat changing their decision to say that both the proposals (Chapman and the diocese) are acceptable."

Carol Schuller Milner, daughter of the founder who was present at the hearing, said her family is most concerned about getting the best value for the property.

"As a family, we just don't give up," she said. "But there's reality too. My parents are 85 years old."

Milner said she was heartened to hear that the diocese will not only retain the cathedral as a place of worship, but will also work to preserve the legacy her father will leave behind.

"On the other hand, with Chapman, new life will be breathed into the campus," she said.

Among other issues that were raised during Wednesday's hearing was that of the Memorial Gardens. Martin assured the judge that the diocese has significant experience operating cemeteries and will maintain the integrity of the grounds.

Martin also assured some of the congregants in the courtroom that the Memorial Gardens will continue to be a resting place for anyone who is already there or has purchased plots or niches there – regardless of whether they are Catholic.

Thomas Link, an attorney representing an ad-hoc committee of congregants, told the judge that the congregants would like to see it continue as a protestant ministry, which would not be possible if the diocese buys the property.

Michael Nason, a 39-year member of the church and producer of the "Hour of Power" broadcasts for 25 years, told the judge that the Crystal Cathedral is "the face of the ministry."
 
"I'd like to see it continue," he said, voicing his support for the Chapman proposal. "The only way for it to continue is at the Crystal Cathedral."