Attorney General James Saves Preston High School in the Bronx

 

Following Public Hearing, AG James Brokered Lease Agreement Between Preston High School and Bally’s Foundation to Keep School Open for 25 Years with Option to Renew Lease

New York Attorney General Letitia James today announced that Preston High School in the Bronx will remain open for years to come. The Office of the Attorney General (OAG) facilitated an agreement between the Sisters of the Divine Compassion of the State of New York, which owned the property of Preston High School since 1947, Preston High School, and the Bally’s Foundation of North America, a charitable nonprofit organization. The Bally’s Foundation has purchased the property from the Sisters of the Divine Compassion and will lease the property to Preston High School for $1 per year for the next 25 years. The agreement gives Preston High School the option to renew its lease for successive five-year intervals at the end of the current 25-year lease term. Today’s agreement to keep Preston High School open follows a public hearing held by Attorney General James with teachers, students, parents, alumni, elected officials, and community members.

“Preston High School is a pillar of the Bronx community that has educated generations of young women and today I am proud to announce that the school will stay open for years to come,” said Attorney General James. “I want to thank all the students, teachers, parents, alumni, and elected officials who submitted testimony to my office and advocated to keep the school open. Today’s announcement would not have been possible without their relentless advocacy and leadership. Preston High School raises young women to become strong leaders, and I am thrilled that many more generations will benefit from this treasured school.”

Preston High School is an all-girls Catholic school that has served the Bronx community for 75 years. In late February, the Sisters of the Divine Compassion announced their plans to close the school and sell the property at the end of the 2025 academic year, citing financial hardship. On April 8, Attorney General James held a public hearing to gather input from students, teachers, parents, alumni, and community members on the impact of the closure. 

Today, Attorney General James announced that the Bally’s Foundation has purchased the property from the Sisters of the Divine Compassion for $8.5 million. The Bally’s Foundation will lease the property to Preston High School for $1 per year for the next 25 years, with the opportunity to renew the lease for five successive years at the end of the current 25-year term. The lease also gives Preston High School the option to purchase the property and a right of first refusal if the Bally’s Foundation seeks to sell the property in the future. Moreover, the Bally’s Foundation has agreed to fund up to $1 million in capital improvements for the school and to cover up to $600,000 in legal and closing costs that associated with the process.  

In addition, the Sisters of the Divine Compassion have agreed to establish independent governance of Preston High School that requires them to:

• Work with Preston High School to establish the school as an independent Catholic school as acceptable to the Archdiocese of New York;
• Help establish an independent board of trustees for Preston High School by appointing, with OAG approval, trustees to the board of trustees who are not affiliated with the Sisters of the Divine Compassion or employed at Preston High School; and
• Immediately relinquish all but one seat on the schools’ board of trustees and give up that seat once the school is fully independent.

Attorney General James thanks the Sisters of the Divine Compassion, the Bally’s Foundation, and Preston High School for working together with her office to find a financial and practical resolution for Preston High School to stay open for years to come.