CICLSAL, Leasing and Alienation of Property, 1990. Private.
An apostolic institute of women religious petitioned CICLSAL for two actions. The institute asked permission to lease a sizeable portion of its property to a Catholic university in the same diocese for eight and one-half years. Should the lease prove mutually beneficial for both the religious institute and the university, the religious further requested permission to sell the same property to the university with the expiration of the lease. Since it was impossible to determine the fair market value of the property in 1998, a formula for determining a satisfactory sale price at that time was mutually agreed upon by both the religious institute and the university.
Each party would choose an appraiser with M.A.I. qualifications. These appraisers would determine the fair market value of the property which would be the average of the two appraisals if the lower of the two was 90% or more of the higher appraisal. If the lower appraisal was lower than 90% of the higher appraisal, a third appraiser having equal qualifications and acceptable to both parties would determine conclusively the fair market value of the property.
The reason for seeking such approval was the willingness of the university to make major capital expenditures on the property and buildings under discussion. The lessee wished some guarantee that the use of the property and buildings would extend beyond eight and one-half years. The petition had the recommendation or votum of the diocesan bishop who had studied the transactions and recognized them as favorable for the well-being of the religious institute and the educational ministry of the Catholic university.
The rescript from CICLSAL received in 1990 did not require the bishop of the diocese as executor. It granted permission for the lease and the sale of the property according to the petition. Everything prescribed in canons 1292, 1293, 1294 was to be observed.
CICLSAL, 1990, Maximum Amount for Alienation of Goods, RRAO (1992): 15-16.