Alumni group says it would buy, reopen Cardinal Dougherty

A new alumni group yesterday announced plans to save Cardinal Dougherty High School in Olney by buying the building from the Archdiocese of Philadelphia for $20 million and reopening it as a private Catholic academy.

Steve Schmidt, chairman of the We Are CD Foundation, said he hand-delivered a letter of intent to the archdiocese's offices in Center City yesterday notifying it of the group's interest in buying the campus at 6201 N. Second St.

He declined to reveal names, but said his organization had spoken with an individual and two banks that are interested in providing $10 million, $5 million and $5 million, respectively, to cover the purchase price.

"It is not made up," said Schmidt, a former teacher at Mercy Vocational High School who now works as a supervisor of a city Recreation Department center in Logan. "We have factual information. We do have an appointment with a bank next Thursday."

The announcement not only stunned the archdiocese but also several business leaders who raise funds for Catholic schools in the archdiocese.

A spokeswoman for Michael O'Neill, chairman of the Business Leadership Organized for Catholic Schools (BLOCS), a nonprofit that raises funds for Catholic schools, said the developer had no knowledge of the We Are CD Foundation or its plans.

Some active in Catholic education privately expressed skepticism.

Marco Ferreira, a 1990 Dougherty grad who works in the mortgage industry, said the group, which was established Nov. 14, could not disclose prospective financial backers yet.

"We are not at liberty to say anything," said Ferreira, who is assisting Schmidt with the plan.

Church officials said the archdiocese was proceeding with plans to close the school in June.

"This was a complete surprise to us," said Donna Farrell, archdiocese communications director, who accepted the three-paragraph letter on behalf of Bishop Joseph P. McFadden, the auxiliary bishop who oversees Catholic education.

"As heartbreaking as it is, Cardinal Dougherty is going to close in June," she said. "This does not change that and won't change that. . . . It would be a real shame if people had false hope."

She said the archdiocese was continuing to assist students who were making plans to transfer to other schools in the fall.

Farrell said that while Schmidt had met with McFadden Tuesday to discuss Dougherty, the archdiocese thought Schmidt's organization planned to raise money to help cover students' tuition.

Schmidt maintained that at the end of Tuesday's meeting, when he told McFadden that his group was lining up financing totaling $20 million, McFadden said that if Schmidt had those funds, he'd hand him the keys.

"I called his bluff this morning," Schmidt said.

"It's a lot of money," he said, "and I don't believe that is how much it would cost to buy the building."

Once an appraisal of the property is completed, Schmidt said, he expects the purchase price will be less.

Schmidt, a 1985 Dougherty graduate, has been a vocal leader in efforts to save the school since Oct. 8, when Cardinal Justin Rigali announced that the archdiocese would close Dougherty and Northeast Catholic High School in June because of sharp enrollment declines.

Dougherty's enrollment has plunged by more than 43 percent over the last decade and was projected to fall by an additional 34 percent in the next three years. The school, which has space for more than 2,000 students, has 642 this year.

North Catholic, a boys' school, has seen enrollment drop 29 percent in the last decade and was forecast to decline by an additional 24 percent in three years. The school has space for 1,700 students but enrolls only 551 this year.

Rumors that a wealthy donor might help North Catholic avert closure by turning it into a private Catholic school have been circulating for weeks.

For the purposes of arranging financing, Schmidt's organization has asked the archdiocese for the opportunity to review "current and past operational reports along with any supporting documentation tied to the value of Cardinal Dougherty High School and its personal assets," the letter said.

The group has asked the archdiocese to respond within five business days, "since there are several investment firms and banks waiting upon our information to proceed with the necessary steps of financing."

Farrell said the archdiocese would review the matter.

"We will take a look at it," she said. "There are no details in the letter. We will go through our normal channels of how we sell property."

Schmidt said his organization would like to reopen Dougherty in the fall as a private school with four career academies focusing on science, medicine, technology, and teaching.

He said he believed the school would be able to offer top academic instruction that would prepare students for the 21st century at a tuition rate at least $1,500 below the current $5,800 set by the archdiocese.

Among other things, Schmidt said that if Cardinal Dougherty's 25,000 living alumni each contributed $100 annually, the school would have $2.5 million.

"That's $1 million more than the current operating budget," he said.

Ferreira said the We Are CD Foundation had filed the necessary paperwork to be recognized as a nonprofit, and Schmidt said it had obtained a tax number from the IRS.

However, a spokeswoman for the Pennsylvania Department of State, which registers nonprofits, said it had "no record of this foundation."