On July 1 The General Theological Seminary (GTS) reached agreement in principle with its chief lending institution, Manufacturers and Traders Trust Company (M&T Bank) on terms for a $5.3 million short term loan that will provide working capital for the upcoming school year, the Rev. Lang Lowrey, GTS Interim President, announced in a recent letter to trustees. While subject to definitive agreements and final approval by both institutions, the plan provides General with a $5.3 million line of credit on which it can draw for operating expenses until the Seminary proceeds as planned with the sale of four residential units in the building known as Chelsea 2,3,4. The loan will be repaid from the proceeds of the sale which could take up to a year. At a special meeting in March, 2010 Trustees were made aware of an impending cash shortfall that could affect Seminary operations as early as the fall of this year. At their meeting in May, 2010 the Board approved the sale of up to four apartments in Chelsea 2,3,4. Since the building was renovated six years ago, three of the four apartments to be sold have been leased to outside tenants.
Perhaps a sale of the entire General Seminary property, the remnant of the money endowing a fund for theological education grants, would be the most effective use of the assets.
Perhaps a sale of the entire General Seminary property, the proceeds going to Nashotah House and Trinity Seminary, would be the most effective use of the assets.
I don’t see much of a future for the liberal Episcopal seminaries.
Almost a century ago, GTS was facing precisely the same problem.
The Journals of the General Convention are full of references to the unwillingness of dioceses to stump up their share (and it wasn’t just Evangelical dioceses they were talking about).
[url=http://catholicandreformed.blogspot.com]Catholic and Reformed[/url]
Significant debt? ‘Scuse me?