Introduction to the Situation

Bally’s philanthropic foundation offered to buy the property of Preston High School in Throggs Neck for $8.5 million to prevent the school from permanently closing in June, but the Sisters of the Divine Compassion, who own the site, rejected the proposal, the Bronx Times has learned.

Background on the School and Bally’s Foundation

Despite support from local elected officials, the rejection means the all-girls Catholic school remains on track to close at the end of the school year. The offer came from Bally’s Foundation North America, Inc., a Delaware-based nonprofit funded by Bally’s Corporation. A company spokesperson said the foundation operates independently with its own governing board and a mission to support mental, physical, economic, and social well-being in communities where Bally’s does business.

Bally’s Corporate Arm and Controversies

Bally’s is more widely recognized for its corporate arm, which runs gambling venues nationwide and is currently pursuing a bid to transform its namesake Ferry Point Park golf course into a 3.1-million-square-foot casino, hotel and entertainment complex. The project faces community opposition and requires state and local approvals, as well as a state gaming license, to move forward.

The Sisters’ Decision to Sell the Property

The Sisters had been looking to sell the property that houses the all-girls’ private Catholic school since around 2019, when they decided to give up landlord duties and sell their portfolio of properties. They hoped the school would be able to buy the site, and after a year and a half of negotiations only with Preston, the parties landed on a deal in December 2024. But after the school could not pay its planned first installment, the Sisters announced Feb. 25 that the school will close, citing financial instability and declining enrollment over the past decade.

Community Reaction

The news devastated loyal families, alumni and community members who did not believe the Sisters’ contention that the school was failing financially and have since pressured the nuns to reconsider. The Sisters and Preston Principal Jennifer Connolly did not respond to Bronx Times’ request for comment.

The Deal That Wasn’t

Photo courtesy Bally’s
When Bally’s chairperson Soo Kim learned last month of the impending closure, he immediately reached out on behalf of the foundation and expressed eagerness to buy the property, he said in an interview with the Bronx Times. To Kim, saving Preston was an opportunity for his company to show that they could “be good neighbors” as they bid for the casino resort project.

Terms of the Deal

The foundation agreed to pay the Sisters $8.5 million — the same amount as Preston would have bought for — plus $1.5 million for a new roof and boilers, the spokesperson said. The foundation also agreed to a 25-year lease to Preston for $1 per year, with the option for the school to buy it in the future. Bally’s sought no control of Preston in terms of naming rights, branding, board of trustees positions or any other aspect of school identity and operations, the spokesperson said.

Community Support and Disappointment

All parties agreed to terms on March 4 and drew up a contract. “We thought we got this deal done,” said Kim. But for reasons unknown to him, the Sisters backed out. The spokesperson said that “when pressed for reasoning,” the Sisters’ attorney, Dan Berman, cited “doubts about the school’s long-term viability.” Elected officials, including Council Member and Majority Leader Amanda Farías, a 2007 Preston graduate, have explored several funding options to keep the school open. When they saw the Bally’s purchase offer, they supported it.

Reaction from Elected Officials

Assembly Member Michael Benedetto, who represents Throggs Neck, was also disappointed to see the Bally’s offer fall through. He told the Bronx Times that he’d been “hoping for a miracle” to prevent Preston’s closure, and when he got the call from Bally’s, it seemed like his wish had come true. Benedetto, Farías and State Senator Nathalia Fernandez all communicated with Bally’s about the potential deal and strongly supported it.

Uncertain Future

Even though the deal didn’t work out, Benedetto said that Bally’s effort to buy Preston “spoke volumes” about its commitment to the Bronx community amid the casino bid. With the deal now off the table, the lawmakers have talked with Attorney General Letitia James, “asking her to look into the matter and whether it has been conducted on the up and up,” said Benedetto.

Conclusion

The rejection of Bally’s offer by the Sisters of the Divine Compassion leaves the future of Preston High School uncertain. The school community remains hopeful that a solution can be found to keep the school open, but for now, it seems that the closure is final. The effort by Bally’s to save the school, however, has shown that there are still those who are willing to invest in the community and its institutions.

FAQs

• Q: Why did the Sisters of the Divine Compassion reject Bally’s offer to buy Preston High School?
  A: The reasons for the rejection are not entirely clear, but the Sisters’ attorney cited “doubts about the school’s long-term viability.”
• Q: How much did Bally’s offer to pay for the property?
  A: Bally’s offered $8.5 million for the property, plus $1.5 million for a new roof and boilers.
• Q: What was the reaction of the school community to the news of the closure?
  A: The news devastated loyal families, alumni, and community members, who have since pressured the Sisters to reconsider.
• Q: Are there any further efforts to save the school?
  A: Elected officials have talked with Attorney General Letitia James about looking into the matter, and the community remains hopeful that a solution can be found.