The Archdiocese of New York has finalized a significant real estate deal, agreeing to sell the land beneath the Palace Hotel to Lotte New York Palace for $490 million. According to Gothamist, a portion of the proceeds from the sale will be directed to a $300 million fund for sexual abuse survivors, which Cardinal Timothy Dolan announced earlier this week.
A spokesperson for the Archdiocese confirmed to AMNY that the proceeds from the sale would be used to compensate victims. Most claims were filed in 2020 during the period allowed by the state’s Child Victims Act, which temporarily extended the statute of limitations for sexual assault. The sale of the land is part of the Archdiocese’s efforts to generate funds for victim compensation.
The Archdiocese previously sold its former headquarters at 1011 First Avenue for $103 million. These sales are part of a broader plan to fund a global settlement for 1,300 victims and to repay loans taken out to settle earlier claims under the Independent Reconciliation and Compensation Program, which began in 2016. Proceeds from the Palace Hotel land sale are being divided between loan repayment and the settlement fund.
The proposed $300 million allocation for the survivors fund has faced objections from some legal representatives of the victims. Mallory Allen of Pfau Cochran Vertetis Amala, representing 75 claimants, described the amount as insufficient, as reported by AMNY. Attorney Jeff Anderson, handling 300 cases, stated that there had been no prior discussion about that figure. The parties have entered a 60-day confidential mediation to resolve the claims, and if an agreement is not reached, the cases may proceed to trial.
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