Anglican Diocese on the ropes
St. Jude’s Cathedral could be lost due to outstanding debt
Myles Dolphin
Northern News Services
Published Monday, October 14, 2013
IQALUIT
A serious financial crisis is threatening the existence of St. Jude's Cathedral in Iqaluit.
Dean of the Cathedral Jonas Allooloo, left, and Bishop of the Arctic David Parsons addressed the media on Oct. 7 to help raise awareness of their outstanding debt. The Anglican Diocese of the Arctic needs to raise more than $3 million it owes creditors for the building’ construction. - Myles Dolphin/NNSL photo |
The Anglican Diocese of the Arctic held an impassioned press conference on Oct. 7, pleading for assistance with its efforts to raise the more than $3 million it still owes creditors for the building's construction.
Despite already paying more than $7.5 million to rebuild the cathedral after an arsonist destroyed it in 2005, the diocese is now facing an immediate demand for payment from the builder's receiver, Alvarez and Marsal Canada Inc.
Dowland Contracting, which joined the rebuilding process midway, was put into receivership in May, filing for bankruptcy protection after owing the Royal Bank of Canada more than $83 million.
The company left several projects unfinished, including renovations to the Qikiqtani General Hospital in Iqaluit.
The diocese said an "informal agreement" reached with Dowland - a pay-as-you-go arrangement - allowed the diocese more flexibility and to make payments as funds were collected.
When Dowland went into receivership, a sum of $2,652,518 was still owed to them, which Alvarez and Marsal Canada Inc. is now requesting, as well as $30,000 per month in interest.
Bishop David Parsons said the request is unrealistic.
"The money is still coming in but we don't have that sum up front right now," he said.
"If we did, we'd pay it right away. This crisis not only threatens the building, but the social ministry."
The cathedral is a spiritual centre for roughly 450 people every Sunday, and the ministry also provides other services such as Sunday school, funerals, weddings, a thrift shop and a food bank.
Parsons said the diocese wants to continue its plan of raising money and fully intends to pay the outstanding sum.
"Today we're sharing with you that we don't have the money, but we're still fundraising," he said.
"We wish to continue with that plan. We're appealing to everyone for help as the unfortunate third party in this situation."
Parsons couldn't comment on whether negotiations had taken place between the diocese and the receiver, referring questions of that nature to the receiver.
There was no response to requests for more information made to Alvarez and Marsal Canada Inc., by press deadline.
