Statement from Bishop John M. D’Arcy

Today, I wish to present the South Bend community, but more especially, to the family of Saint Joseph’s High School, my decision about the future of this school.

Why has this taken so long? This decision required many consultations. The building of a new high school at what is now the location of Saint Joseph Medical Center, so graciously offered to the diocese by the hospital, is quite attractive in some ways and yet presents many concerns.

Is it right to spend so much money on one institution? What are the ramifications of a decision? The bishop must be a good steward and cannot allow the financing of a totally new school building to be so excessive that it can only be accomplished by increasing tuition, so that a beautiful new school is built on the backs of families.

Indeed, I have to keep in mind my successor, and must not place an undue burden on him. The appointment of a new bishop cannot be too far away. I have made it clear that he will need to review this decision and, indeed, it will be his obligation to do so. But I always believed that, in light of my long tenure here, I had the obligation of making a firm decision while still bishop.

Is it right to leave this beautiful property in the midst of one of the finest settings of Catholic higher education in the world? Also, there was the consideration which needs to be given to Marian High School. The diocese is committed, and I am committed, to two excellent high schools in the Michiana area. All four of our diocesan high schools have achieved exemplary status according to the standards of the State of Indiana. We continue to be committed to four excellent high schools and to our large elementary school system, all achieved without benefit of tax funds.

It was also important to take into account the keen desire of many of the Saint Joseph’s High School family to proceed with the possibility of a new school building on a different site. Saint Joe, like Marian and our two Fort Wayne high schools, has a great tradition — Catholic, academic, cultural and athletic.

Also, it was necessary to take into account, the intense interest of the wider community of South Bend in such a project, including the University of Notre Dame. I have shared these concerns over many months with an ever-widening circle of educators, pastors, parents and others.

I have met with parents: with the Saint Joseph’s High School board; with the Saint Joseph’s High School faculty; with officials at the University of Notre Dame; with the Brothers of Holy Cross; members of the Marian High School board and faculty members at Marian High; the Council of Priests in the diocese, which is the major consulting body of the bishop, and also with the Diocesan Finance Council as required by canon law.

The Marian High School board had already advised me in a meeting with board members, the principal, Carl Loesch, and the faculty that I should do what I thought was best and right for Catholic secondary education in the South Bend area. Indeed, Marian is also considering a fund-raising effort, though on a much smaller scale.

On Aug. 13, we held a major meeting here with representatives of all these groups and others.

At this Aug. 13th meeting, the proposal was made that the Saint Joseph community be given permission from the bishop to see if it was able to raise the funds necessary to build a new school on the site of the Saint Joseph Medical Center within a certain timeframe; and if this proved not to be possible, that there be a fallback position which would be the restoration/renewal of the present building, also including some new construction. After prayer and further consultation, I have accepted this proposal with certain restrictions to preserve the fiscal integrity of the diocese and of Saint Joseph’s High School. Here are some of those conditions.

1. The cost of new construction must be raised — $35.5 million. The interest on any loans needed during construction must also be pledged. At the time construction begins, a reserve of 3 percent of outstanding pledges must also be funded so total pledges realized cover the total cost of the project.

2. Saint Joseph’s High School must be debt free to begin construction. Saint Joseph’s currently has a debt to the Diocese of Fort Wayne-South Bend, on which they are paying.

3. This new school must accommodate at least 850 students.

4. The construction must be of a quality that is acceptable to a Diocesan Review Committee.

5. Pledges must be paid over three years, while larger pledges ($200,000 or more) may be paid over five years.

6. The selection of the professional consulting fund-raising firm will be made by the diocese.

7. The cost of the professional consultants must be raised with the campaign.

8. Fundraising must be complete by June 2011, which includes 15 months of actual fundraising (December 2009 through July 2010 and December 2010 thru June 2011).

9. The diocese does not allow any other fundraising during the time of the Annual Bishop’s Appeal, which is Aug. 1 through Dec. 1 of each year.
10. Cash-on-hand needs to be $26,625,000 before construction can begin. This is in concert with diocesan requirements for any building: 75 percent must have been received in cash and the rest in pledges before construction can begin. A construction loan may need to be financed outside of the diocese, for example, by the Knights of Columbus or similar entities. The Knights of Columbus has recently assisted in financing the building of St. Pius X School, Granger, and also Bishop Dwenger High School, Fort Wayne, and St. Elizabeth Ann Seton Parish, Fort Wayne.

If these criteria and conditions are not entirely and completely met, planning for restoration and new construction at the current site will begin. Donors who have pledged for new construction at the new site will be contacted to ascertain if their pledge can be used for a restoration/new construction project at the current site.