CEF: The Prince of Peace Church and School Settlement and Recovery

Writing about these topics as much as I do, it’s only a matter of time before something I write doesn’t line up with what I want my readers to “hear” and the end result is a mistaken impression about some aspect of this tragic comedy.

Such was the case with my piece CEF: Another Shoe Drops. My intended subject was District handing over millions of depositor money to the POP Church and School and how recklessly inappropriate these loans were. One comment I received was to the effect that people might’ve gotten the impression that the full $11M of the debt had been lost.

Well….not entirely. Let me explain –

Here’s the original math:

  •  $11.3M total indebtedness
  •    -$4.6M to build the church and school
  •    -$3.5M in unpaid interest
  • =  $3.1M to “fund other church activities”

Of all those line items,  only the $4.6M was directly spent on something that resulted in the creation of a tangible asset – the church and school property and buildings. In this settlement  POP surrendered ownership of this property plus some other minor assets as full resolution of what they owed.

If the property is sold for what it cost to build, then $4.6M or ~4.6% of the total loss would be returned to the depositors thus making the overall loss due to the POP “loans”

$11.3M – $4.6M = $6.7M

This is still a big number, but not as big as the total outstanding due of $11M.

The Monitor’s 35th report also notes that a “Tuscany” property in north-west Calgary that’s up for sale with an asking price of ~$4.M. If the “Tuscany” property attracts its asking price the combined estimated return to depositors is ~$8.3M less expenses plus the outstanding Sage shares.

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