Catholic Church Takes Loss in Loan Settlement With Burlington College.
BURLINGTON — The Roman Catholic Diocese of Burlington lost at least $1.5 million and perhaps as much as $2 million on a $3.65 million loan to Burlington College, according to financial statements from the church.
In 2010, Burlington College bought the former diocese headquarters on North Avenue for $10 million. The diocese sold the property to help cover the cost of a $17 million settlement with victims of priest sex abuse in Vermont.
The college borrowed heavily to buy the 33-acre prime Lake Champlain waterfront property. The purchase was part of an ambitious expansion plan for the school, led by Jane Sanders, the former Burlington College president and the wife of presidential candidate Sen. Bernie Sanders. In August 2011, Jane Sanders resigned as doubts emerged about her plans and fundraising strategy. The college trustees gave her a $200,000 early exit package.
Sanders hoped to double the size of the college and create a new campus at the diocese location. When she signed off on a $6.7 million loan from People’s United Bank and a $3.65 million loan from the diocese in 2010, she was banking on pledged donations from supporters.
The diocese loan was settled earlier this year, and recently released documents show the diocese lost $1 million in principal payments, plus $500,000 to $1 million in interest accrued but never paid over a five-year period.
A VTDigger investigation in September showed that Sanders overstated pledged donations used to secure the People’s bank loan. Pledged donations never materialized, according to documents and statements from college officials. Ambitious plans to boost enrollments failed, pushing the college toward financial collapse.
http://vtdigger.org/2015/12/23/catholic-church-nailed-in-loan-settlement-with-burlington-college/