Amid the Archdiocese of New York's negotiations relating to approximately 1,300 instances of alleged child sex abuse, the archdiocese said that it will sell the land of the Lotte New York Palace hotel for $490 million to service a settlement fund.
As reported by the Gothamist, the archdiocese, which has an extensive property portfolio, will sell the land to cover the $300 million it has agreed to set aside for people who have accused priests and other church staff of sexual abuse.
Not all of the money from the sale will go to the fund, however, as some of the money will pay off loans that the archdiocese took out for previous settlements.
The news comes not long after the archdiocese announced the sale of the former archdiocesan headquarters last year, of which $100 million will go toward the settlement fund. In addition to the sale of property, the archdiocese is expected to lay off staff and lower the cost of operations.
Earlier this month, Cardinal Timothy Dolan addressed the settlement fund and the allegations against the Church.
“As we have repeatedly acknowledged, the sexual abuse of minors long ago has brought shame upon our Church. I once again ask forgiveness for the failing of those who betrayed the trust placed in them by failing to provide for the safety of our young people,” read the statement, which can be seen in full here. “A global settlement is one negotiated with the assistance of a third-party mediator who can help resolve cases more quickly and without the financial and emotional stresses of lengthy court proceedings.”
As reported by ABC 7 NY, attorney Mitchell Garabedian, who represented alleged victims of the church, addressed the latest developments.
“A settlement could come about, but it could also fall apart now or at the last minute," Garabedian said. "I would characterize it as a PR campaign, more stalling but at the same time, the Catholic Church is trying to portray itself as acting in good faith and maybe it will reach agreement with the victims' attorneys. … Any victim I've ever represented would say, if I could choose between $1 billion and getting my childhood back, I choose my childhood.”
