September 27, 2002 - Statement of David W. Smith,
Chancellor, Archdiocese of Boston
Today the Archdiocese of Boston reached agreement with the Knights
of Columbus on a mortgage loan that will replace and supplement
the previous line of credit with Fleet Bank. This loan is part of
the Knights of Columbus Church Loan Program. That program makes
funds available, on a secured basis, to assist the Church in fulfilling
her mission.
The initial advance of $12.5 million will retire the $9 million
currently outstanding under the Fleet Bank line of credit, enable
the Archdiocese to provide interim financing to Catholic Charities
to complete the new Shaughnessy Family Center at Laboure and provide
funds to continue the many pastoral, educational and social service
endeavors in which the Archdiocese of Boston engages to fulfill
the mission of the Church.
The agreement provides for additional advances, as needed, over
a three-year period in amounts not to exceed $25.45 million, which,
in combination with the initial advance, is 75 percent of the appraised
value of the 16 acre Chancery grounds. All advances will be repaid
over a 20 year period from the date of the initial advance. It is
anticipated that any additional advances will be used to fund the
ongoing works of the Archdiocese.
A number of factors have converged in recent months to make even
more daunting the always challenging task of raising the necessary
money to fund the Church's mission of care and compassion. Our ability
to raise money in the short term continues to be impacted adversely
by the realities of the volatile stock market and the uncertain
economy. Although the Archdiocesan "Promise for Tomorrow Campaign"
continues to enjoy impressive results, its revised implementation
means that the day-to-day giving of many generous and faithful donors
is already stretched. Moreover, it is clear that some people who
have supported the Church's work in past years are withholding,
at least temporarily, their support financially due to their feelings
regarding the terrible scandal of sexual abuse of the young by clergy.
Nevertheless, we are grateful to all those members of the faithful
who continue to support the mission of the Church here in the Archdiocese
of Boston through their prayers, work and contributions.
(Other press releases and
statements)
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