Newport Beach Firm Gets Competitor for Crystal Cathedral

Lawyers for Chapman University filed papers Tuesday asking a bankruptcy judge to consider a $46-million deal for the school to buy
the Crystal Cathedral's property in Garden Grove with an option for the church to buy half of the land back.

The Chapman bid is competing with one from that intends to build homes on the property, according to court papers in the bankruptcy case.

"I really believe an educational branch of Chapman University on the
property is more in keeping with Crystal Cathedral's campus,'' Chapman University President James Doti told City News Service.

Doti said Crystal Cathedral founder the Rev. Robert H. Schuller also
refers to the property as a campus.

Related: Robert Schuller Ousted From Crystal Cathedral Board

"It's such a beautiful, iconic property in Orange County and it would really be sad to see it surrounded by more density,'' Doti said. "Our plans don't call for any more development han is already there.''

Chapman would acquire the Family Life Center and the Welcome Center, with the Crystal Cathedral allowed to continue using the other half of the property, including the high-rise office building and the landmark church, Doti said.

Chapman would pay off the debtors on closing, allowing the Crystal Cathedral four years to buy back half of the campus in a lease deal, Doti said.

Chapman doesn't have much room to expand in Orange and the Crystal Cathedral property is just 10 minutes away, Doti said.

The Crystal Cathedral officials involved in settling the church's debts
have had an exclusive negotiating deal with Greenlaw Partners.

Doti also argued Chapman's plan is better because the Crystal Cathedral would pay $150,000 a month in the buy-back lease deal, compared to the $212,000 a month church officials would pay back to Greenlaw. Ultimately, it would cost $30 million to buy back the property from Greenlaw, but $23.5 million to Chapman, Doti said.

Chapman officials started working on their plan a couple of months ago
when they started reading about the Greenlaw proposal, Doti said. Chapman's board of trustees approved the proposal June 27.

On July 12, there will be a hearing in federal court in Santa Ana to
consider any objections to the Chapman proposal. U.S. District Judge Robert Kwan, who is presiding over the bankruptcy, will consider whether the Chapman bid can move forward at a July 26 hearing.   Messages left with Greenlaw Acquisitions were not immediately returned.

Work to settle about $12.5 million in Crystal Cathedral's debt began in
April of 2010, but when those efforts failed bankruptcy was declared Oct. 18 of last year.

The 10,000-member church was founded by the Rev. Robert H. Schuller in 1955. But it fell on hard times in 2008 when the economy collapsed.

The Crystal Cathedral is on 40 acres at 12141 Lewis St. in Garden Grove. The church opened in 1980.

—City News Service