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Post by Pakachoag Phreek on Sept 15, 2023 7:46:10 GMT -5
After a quick read, Prior seems to be particularly pissed that the inaugural concert, a composition which he paid for, was cancelled. He lists his invitees to the concert, including three Supreme Court justices (presumably Roberts, Thomas, and Kagan(?)), former deans of the Harvard Law School, current professors at Harvard, Cardinal O'Malley, and others. After the cancellation, the relationship between Prior and the College all went downhill.
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Post by alum on Sept 15, 2023 8:02:03 GMT -5
Prior says the College breached his gift agreement which is a contract. He wants his money back to give to a different charity. There are lots of twists and turns all the way up to a concert that didn’t happen last fall. I’ll try to give more detail tomorrow when I’m at a computer. This is a breach of contract case at its essence. My wife and daughter both work in higher education advancement so I have a basic understanding of how this work. When endowment or other large gifts are made to a college, the donor and the institution enter into a written agreement setting forth the amount of the gift, how it is to be paid, how the gift is to be used and any other terms which the parties negotiate. I know that for restricted endowment gifts for which only income is to be utilized, the gifts even include provisions for what would happen to the principal in the event that the non profit ceased to exist. The complaint's allegations are, in summary: 1. A presentation was made to him and others about the need for a performing arts center some time before 2012. 2. He pledged $25 million for the project and made an $18 million gift and then, if I am reading it correctly, another $2 million gift. 3. The College did not start the project right away in breach of the agrement. 4. The College told him they couldn't start the project until they got the remainder of the funding for Luth so he made a $3 million plus gift to get that finished. 5. The College was supposed to segregate his $18 million and allocate income/growth of those funds to build Luth. He claims that they won't show him whether they did it or not. 6. He alleges that the College did not segregate his funds and when asked about the income that only a small amount of money was attributed to it,. 7. He alleges that the College placed the performing arts center behind the retreat center delaying it further. 8. Finally, he alleges that in 2022, an opening concert to honor him and perform a piece he paid to have composed was cancelled because he would not pay $7 million more. On the basis of these facts, he says that the College breached its contract with him and that he is entitled to an accouting and to get his money back. He also claims that the facts support a claim that the College assumed the role of a fiduciary while holding his funds and breached their responsiblities in that regard. My practice does not regularly involve anything approaching this kind of stuff but I did take contracts a long time ago. Even if we assume that all of the allegations are true, there will be a debate about whether any of these breaches were material and whether the College substantially completed its obligations under the contract. As I noted above, there will be a question of whether Prior sat on his rights as to an accounting for too long during which the College relied on the gift to expend millions of dollars to contruct the building. All in all, this is a horrible situation. These things happen. UConn got into a dispute with the Burton family who gave $3 million toward their football practice facility because they were not consulted about the hiring of Paul Pasqualoni. www.espn.com/college-football/news/story?id=6057094Here is a story with other disputes www.philanthropyroundtable.org/resource/seven-stories-of-donor-intent-violations-in-higher-education-giving/
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Post by KY Crusader 75 on Sept 15, 2023 8:14:00 GMT -5
Great recap-I think I now have a good understanding of the issues. It is a profoundly sad situation
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Post by mm67 on Sept 15, 2023 8:23:30 GMT -5
Why did HC back out of the previously planned inaugural concert? This whole episode is very sad. Hate to see a fellow alum & HC go through this.
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Post by matunuck on Sept 15, 2023 8:25:20 GMT -5
Was there a formal ceremony celebrating the completion of the PAC? If so, did Prior attend?
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Post by sader1970 on Sept 15, 2023 8:46:04 GMT -5
Excellent recap except to add to what you wrote:
In paragraph 34, he "the learned that the College never even intended to honor the terms of its shocking five day demand for $7,000,000.00. Specifically, Mr. Prior learned that Holy Cross in fact cancelled the Knight Orchestra's engagement shortly after making its demand, effectively cancelling the planned Opening Concert without even waiting its unilaterally imposed five-day deadline, while still holding out to Mr. Prior that he had to pay $7,000,000.00 in order to prevent that very action."
Paragraphs 35, 36 and 37 elaborate more but in sum, he alleges they demanded $7M or cancel the opening; they cancelled anyway; but still tried to shake him down for the money despite cancelling the concert that was, in his mind, at least partially to honor him.
I do recall seeing communications about some grand opening concert that I thought I'd attend and then . . . . . nothing. Thought my invitation was lost in the mail.
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Post by alum on Sept 15, 2023 9:03:45 GMT -5
Excellent recap except to add to what you wrote: In paragraph 34, he "the learned that the College never even intended to honor the terms of its shocking five day demand for $7,000,000.00. Specifically, Mr. Prior learned that Holy Cross in fact cancelled the Knight Orchestra's engagement shortly after making its demand, effectively cancelling the planned Opening Concert without even waiting its unilaterally imposed five-day deadline, while still holding out to Mr. Prior that he had to pay $7,000,000.00 in order to prevent that very action." Paragraphs 35, 36 and 37 elaborate more but in sum, he alleges they demanded $7M or cancel the opening; they cancelled anyway; but still tried to shake him down for the money despite cancelling the concert that was, in his mind, at least partially to honor him. I do recall seeing communications about some grand opening concert that I thought I'd attend and then . . . . . nothing. Thought my invitation was lost in the mail. FWIW, I assume the $7 million is the remainder of the original $25 million pledge. It would appear Mr. Prior believes that income from the original $18 million during the time between when it was given and it was spent should have counted toward this as well as the additional $2 million gift.
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Post by sader1970 on Sept 15, 2023 9:24:58 GMT -5
I'd really like to know why the concert in Prior's honor (really, after $18M or $25M) was cancelled. The tenor of the complaint leads me to believe had they had the concert as advertised and Prior got his deserved accolades, he would have accepted the delays, taken his bows, and none of this would have happened. This was obviously a big deal for him, not just the money, as he thought he was following what the faculty thought the school needed and put his money where his mouth was.
As great as this building is, this is not the only controversy but the most public now.
One of the theatres was to be named for Ken Happe and announced as such and his extended family informed of this. Then, without announcement, it was named for Fr. Boroughs instead. No reason given but I have an extremely strong suspicion why, which I will not get into here. One of my Classmates who knew Ken and his extended family well is apoplectic. The official word is that an anonymous donor who was paying for that theatre's naming rights, changed his mind.
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Post by Pakachoag Phreek on Sept 15, 2023 9:25:25 GMT -5
Excellent recap except to add to what you wrote: In paragraph 34, he "the learned that the College never even intended to honor the terms of its shocking five day demand for $7,000,000.00. Specifically, Mr. Prior learned that Holy Cross in fact cancelled the Knight Orchestra's engagement shortly after making its demand, effectively cancelling the planned Opening Concert without even waiting its unilaterally imposed five-day deadline, while still holding out to Mr. Prior that he had to pay $7,000,000.00 in order to prevent that very action." Paragraphs 35, 36 and 37 elaborate more but in sum, he alleges they demanded $7M or cancel the opening; they cancelled anyway; but still tried to shake him down for the money despite cancelling the concert that was, in his mind, at least partially to honor him. I do recall seeing communications about some grand opening concert that I thought I'd attend and then . . . . . nothing. Thought my invitation was lost in the mail. The College publicized the opening day concert, featuring a new orchestral work by the renowned HC professor/composer. If I go back in this thread, I believe I even posted a link to a YouTube video of an earlier work by the HC professor performed by the NYC orchestra
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Post by sader1970 on Sept 15, 2023 9:27:47 GMT -5
So, they had the concert? I guess, like Prior, I was blackballed!
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Post by Pakachoag Phreek on Sept 15, 2023 9:34:55 GMT -5
crossports.freeforums.net/post/255145/threadThis is a post that references a poster here getting an invite to the concert, and the above-reference YouTube video. From October. I do not think the machinations about the $7 million and concert cancellation would have entirely been VR's. This would have been the BoT, or certain members of the BoT. Re: Happe, I suspect another poster and I are thinking the same reason, and I concur about best not to discuss our surmising.
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Post by bowling alone on Sept 15, 2023 10:28:48 GMT -5
I was at the first theatrical performance at the PAC on November 3, 2022 referenced in paragraph 32 of the Complaint (Iphigenia in the black box theater). At the conclusion of the show the cast gestured to Mr. Prior who was in attendance. From what I saw, there were no public acknowledgments of his contributions -- no announcement, reception, etc. The audience was also primarily students required to attend by their Monserrat classes; there seemed to be few if any College administrators, and certainly PVR was not there. I recall thinking at the time that it was odd the College wasn't doing more (or, frankly, anything) to celebrate the first show at the PAC or his contribution. Perhaps the complaint gives some reasons why that was.
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Post by newfieguy74 on Sept 15, 2023 10:34:49 GMT -5
Pres. Rougeau and Neil Prior need to get in a room and work this out.
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Post by KY Crusader 75 on Sept 15, 2023 11:30:09 GMT -5
One wonders it that has been attempted without a satisfactory result....
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Post by Chu Chu on Sept 15, 2023 11:54:34 GMT -5
This is an unbelievable and very sad development. I just toured the Prior Performing Arts Center last week. It is magnificent! It is hard for me to imagine how this major benefactor could be so estranged from the college after being motivated to make such an historic gift. His complaint makes it sound as though he was dealt with in a very tone deaf manner. It is hard to understand.
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Post by rgs318 on Sept 15, 2023 12:05:57 GMT -5
From what has been shared here, I certainly agree with you. What are we still unaware of that would shed light on how things went this far?
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Post by sader1970 on Sept 15, 2023 12:35:06 GMT -5
I do know that when Fr. Boroughs arrived as president, having already been on the Board, he was really focused on getting a contemplative center up and running and can certainly see him putting the PPAC on the back burner to simmer.
The Luth, from memory, was an idea that pre-dated any PPAC.
The issue, of course, is that Prior was giving a large chunk of money so that theoretically, the College could do more than one construction simultaneously.
Our friend Phreek has posted about all the proposed construction/renovation projects on the College's wish list. That can't happen with nickels, dimes and silver dollar donations. You have to have a number of donors that'll believe enough to drop tens of millions. This will eventually come out to the general public and will likely torpedo any large donor's desire to help unless and until peace is made between Prior and the College. Vince & Co. just can't play hardball here IMHO.
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Post by mm67 on Sept 15, 2023 14:09:50 GMT -5
Apparently this was an avoidable controversy. My heart is with my fellow alum but I do not have all the facts. Why not return the money to Mr. Prior?
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Post by alum on Sept 15, 2023 14:45:09 GMT -5
I do know that when Fr. Boroughs arrived as president, having already been on the Board, he was really focused on getting a contemplative center up and running and can certainly see him putting the PPAC on the back burner to simmer. The Luth, from memory, was an idea that pre-dated any PPAC. The issue, of course, is that Prior was giving a large chunk of money so that theoretically, the College could do more than one construction simultaneously. Our friend Phreek has posted about all the proposed construction/renovation projects on the College's wish list. That can't happen with nickels, dimes and silver dollar donations. Yo u have to have a number of donors that'll believe enough to drop tens of millions. This will eventually come out to the general public and will likely torpedo any large donor's desire to help unless and until peace is made between Prior and the College. Vince & Co. just can't play hardball here IMHO. I agree that this is problematic from a PR standpoint, but the kind of people who make these kinds of gifts are sophisticated, have experience in suing people and being sued, and recognize that sometimes these things happen, even among friends.
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Post by sader1970 on Sept 15, 2023 15:21:39 GMT -5
I understand you are a lawyer and so is Mr. Prior. That said, while I respect your opinion, I disagree that there will be little impact on donations from large/sophisticated donors unless and until the College can get this right with Mr. Prior who sounds like he was smart enough with his legal and investing background to have things in writing.
I'm appalled if what is in the complaint is factual, that the College's return on his funds over the years was a half a percent (.5%) average per year (paragraph 4). That would go a long way to explain/corroborate that the endowment is underperforming (big time!) and why there was likely a change in investment leadership.
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Post by alum on Sept 15, 2023 15:39:04 GMT -5
I think you will find the explanation for the poor return was that it was being held in what is essentially a checking account because it was going to be used promptly. The problem, of course, is that it wasn’t used promptly!! One more thought—Prior says the College was acting in a fiduciary capacity. Assuming that is so, the money would have to be held in a very conservative manner.
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Post by Pakachoag Phreek on Sept 15, 2023 16:01:11 GMT -5
Some of the delay for the Prior was the result of conducting an architectural competition for the design. And once an architect was chosen, these was a lot of interaction between the academic departments who would call the Prior home, and the architects. And this consumed more time. I will note that Mr. Prior stated that one of the individuals he wanted to invite to the concert was his friend Liz Diller. Liz Diller is the Diller of Diller, Scofidio + Renfro. I believe the lead architect for the Prior was Charles Renfro.
I will also note that Tracy Barlok departed HC at the end of June 2022, and that Rick Patterson's tenure as Chair of the BoT ended at the same time.
IMO, the College certainly seems petty and childish by not having the inaugural concert at a December dedication, a concert that Prior had paid for.
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Post by sader1970 on Sept 15, 2023 16:21:22 GMT -5
I have little doubt that the College will have a slightly different spin on all this but the fact that he filed a lawsuit that will be out in public, not just discovered by the sleuths of Crossports, will make alma mater look bad. 😩
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Post by Pakachoag Phreek on Sept 16, 2023 7:10:55 GMT -5
Sometimes in a half-sleep, and prowling through the long-ago precincts of the family history, questions appear in search of an answer: Like 'Why did the Duke of Normandy, the oldest son of William the Conqueror, besiege the family fortress-castle in Normandy, only to flee when the King of England, his younger brother, arrives in Normandy with his 'English' army. (The English army were Normans living in England, post-Conquest.) And occasionally there are epiphanies, which are possible answers to the 'Why?' ------------------------------ With regard to the Prior Center, and the accounting practices of HC,
By the fall of 2022, a Boston developer had purchased the three parcels of land on Kendig St. that was to become the site of the new Jesuit residence. It was thought that the developer, who was developing a large parcel of land next to Polar Park, might build and manage a new, off-campus residence hall near Polar Park. Holy Cross was in such a rush to build the new Jesuit residence and vacate Ciampi that the developer applied for and received the initial building permits for the construction of the residence. (HC apparently didn't have enough free cash on hand to get the project rolling and time was of the essence.)
Having commenced the construction of the City View town houses several months earlier, HC needed to have the townhouses ready for occupancy by the fall of 2023, and to have Ciampi Hall converted to a student residence in the same timeframe. It appears that the Worcester developer financed not only the land acquisition but the initial construction of the Jesuit residence as well. HC was short of available funds to finance it. However, by January 2023, HC had secured enough funds to purchase the Kendig St. site from the developer and pay for the construction. Also, in January 2023, HC in conjunction with said developer, bought several additional properties on College St., near Kendig, and on Kendig St. itself. And about this time, the College made a decision to build the next residence hall on-campus, near Figge, and abandoned the idea of a developer-owned and financed residence hall near Polar Park.
Questions one might ask are: How were the City View residences financed? How were the new Jesuit residence, and the additional property purchases on College Hill financed? (<< The cost of the latter is likely north of $10 million. The cost of the townhouses, probably about $25 million.)
There is precedent for HC using restricted gifts for other purposes. Park Smith auctioned off a portion of his extensive wine cellar to fund the renovation of the old field house. As I would jokingly say at the time, we should name the renovated building the Chateau d'Yquem Field House. .If one goes inside The Jo, and looks at the plaque with the names of major donors, no Park Smith. Where did the 'wine money' go?
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Post by newfieguy74 on Sept 16, 2023 7:50:14 GMT -5
I'm not going to pass judgment on either party without knowing more facts, but it's very distressing that things got to the point of litigation. Unless bridges have been burned beyond repair HC needs to fix this--before motion hearings, before discovery, before trial.
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