Crystal Cathedral Sale Delayed to Thursday

The fate of the Crystal Cathedral remained in limbo Monday after a new bidding war erupted in federal bankruptcy court and the judge postponed his decision to Thursday.

After an unusual day of skirmishing among attorneys in the case, U.S. District Judge Robert Kwan said offers by Chapman University and the Orange County Roman Catholic Diocese were both feasible options to pay off the glass church's $50.7-million debt.

Kwan delayed his decision so the Crystal Cathedral board could review the new offers.

Over the weekend, the diocese boosted its $55.4-million bid to $57.5 million, saying the new figure would cover all projected debt, including a $300,000-a-year annuity to Crystal Cathedral founder Robert H. Schuller and his wife.

Crystal Cathedral Ministry's board had designated Chapman University as the preferred buyer, mostly based on its offer to give the debt-plagued church a chance to buy back the cathedral and maintain control over its cemetery.

However, Schuller favors the diocese offer, his lawyer said.

At Monday's hearing, several strange topics arose, from claims of possible copyright infringement to threats to dig up and relocate one of the church cemetery's most prominent corpses.

Much of the feuding focused on whether an extra $6.5 million should be set aside to pay off claims from the Schullers and other "insiders."

Financial expert Michael Vanderley testified that Chapman's $51.5-million bid wouldn't cover such claims.

Reacting to the diocese's increased bid, Chapman University President James Doti returned from a lunch break with an "alternative'' offer of his own.

Calling the Crystal Cathedral a "global beacon'' in Orange County, Doti pitched his new proposal as a way to make sure the ministry could stay on the Garden Grove campus for many more years. Although Chapman didn't raise its purchase offer -- $51.5 million -- Doti said the school would set aside $2 million to address any claims the Schullers might have. The university also offered to lower its rent on the church, the arboretum and other core buildings to $1 a month.

Chapman's original offer allowed the Crystal Cathedral to lease those buildings for up to 15 years with options to buy some of the property back. The new proposal would not allow any buy-back.

The diocese, in contrast, would allow the Crystal Cathedral to rent for three years, then relocate the congregation to one of the diocese's parishes in Garden Grove.

Cemetery Resident Threatens to Leave

Another difference between the two bidders: Chapman would let the Crystal Cathedral continue operating its cemetery, whereas the Diocese would assume that role itself.

Doti said the family of Orange County multimillionaire John Crean, who died in 2007 and is buried in the church's Garden of Memories, would have his remains relocated if the diocese took over the cemetery.

Carl Grumer, an attorney representing Schuller and his wife, said the ministry about six years ago pledged to pay the couple about $300,000 a year, with another $50,000 to cover health and other expenses.

The Schullers also have issues with the ministry's board over use of his sermons, books and image to raise money. Those intellectual property claims could also be headed to court, according to Carol Milner, one of Schuller's daughters.

Schuller and his wife wanted a cushion of at least $6.5 million built into the bankruptcy deal to cover their living expenses and intellectual property claims, Milner said. Grumer claimed Schuller's wife has a history of longevity in the family with some of the 82-year-old's relatives living into their upper 90s.

However, Kwan ruled that only $500,000 should be set aside for those claims.

Crystal Cathedral board members will meet at 5 p.m., Wednesday, to consider Chapman's new bid. Kwan set Thursday afternoon for a hearing to decide which bidder will get the property.

Schuller Feels Disrespected by Chapman U.

Schuller could not make today's hearing because he was looking after his wife, who has two fractured vertebrae, Milner said.

There's been a split in the Schuller family, with some of his children backing him while others, including Senior Pastor Sheila Schuller, back the ministry's board.

Milner said she and her parents feel disrespected by the ministry board and Chapman University, and she claimed her parents haven't been paid the annuity for two years. They sided with the diocese.

"They've been very gracious,'' Milner said of diocese officials. Meanwhile, Schuller has mounting legal costs and has allowed Crystal Cathedral Ministry to continue using his sermons, books and image to raise money while being "kept in the dark'' on how the material would be used and by whom, Milner said.

The diocese "called us and said, `How can we accommodate you?' '' Milner said. "I wish I could say the same thing about Chapman because I love Chapman. My son goes there.''

Originally, Milner said she favored Chapman's bid. But "there has been a lot the Catholic church has done to make my parents feel honored,'' Milner said.

Schuller favors the diocese's bid because it would ensure the mega-church remains a place of Christian worship instead of a university campus, Milner said. "My father's always been so ecumenical.''

 - City News Service