Introduction to the Crisis
A beloved Catholic high school in the Bronx has been spared from closure after the philanthropic arm of Bally’s Corporation reached a deal April 22 to purchase the property. Attorney General Letitia James announced that the Bally’s Foundation, affiliated with the gaming giant that seeks to develop a casino complex at nearby Ferry Point Park, will buy Preston High School in Throggs Neck, securing the future of the all-girls institution that has served the community since 1947.
The Deal
“Our commitment to Preston is not about business — it’s about doing what’s right. Supporting institutions like this is central to our belief in being a trusted, long-term partner to the communities we serve,” said Bally’s chair Soo Kim. The deal marks a dramatic reversal by the Sisters of the Divine Compassion, who own the property and previously rejected the same offer from Bally’s in March. The Sisters had insisted the school would close at the end of the academic year in June regardless of outside support, citing unsustainable financial pressures and declining enrollment.
Community Reaction
But following sustained public pressure from students, parents, alumnae and local officials — along with a high-profile public hearing on April 8 led by James — the Sisters changed course and accepted the deal. James’ office, which has oversight over nonprofit property sales, would not say whether the Sisters would have faced legal action for refusing the Bally’s offer. “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 James in a statement.
Terms of the Agreement
Under the April 22 agreement, Bally’s Foundation will purchase Preston’s waterfront property for $8.5 million, lease it back to the school for $1 per year on a 25-year lease with five-year renewals and pay up to $1.6 million for infrastructure repairs and legal and closing fees. Preston will have the opportunity to purchase in the future and right of first refusal if the foundation seeks to sell, and the school will continue to operate independently.
Governance Changes
Under the new agreement, the Sisters will also be required to ensure Preston’s independence by establishing a new board and relinquishing its current three of six seats on the school’s Board of Trustees. Elected officials who lobbied for Preston to stay open said they were relieved and grateful for the agreement.
Reaction from Elected Officials
“I want to extend my heartfelt thanks to Attorney General Letitia James for her swift and thoughtful action in helping to prevent Preston’s abrupt closure,” said City Council Majority Leader Amanda Farías, a 2007 Preston grad, in a statement. Assemblymember Michael Benedetto said he was “thrilled” that Preston will remain open. “This is a tremendous victory for the students, families, and the entire Throggs Neck community,” he said.
Background
The deal comes years after the Sisters tried unsuccessfully starting in 2019 to sell the property back to the school and determined Preston to be financially unviable due to declining enrollment and the high cost of property maintenance. To those who love Preston, the agreement is a hard-fought victory, Farias said. “We didn’t just preserve a beloved institution – we protected a legacy,” she said.
A Change of Course
The news that Preston will remain open — and will adopt changes in governance to ensure the school’s independence — was met with immediate celebration by those affiliated with the school. “This is more than just keeping a school open. It’s preserving a legacy,” said principal Jennifer Connolly in a statement.
Community Involvement
In recent months, Preston supporters have held several rallies and launched a “Save Preston” social media campaign, and hundreds attended James’ three-and-a-half hour public hearing that featured 25 speakers in support of the school. Preston’s famous alum Jennifer Lopez posted on her Instagram Story on April 15 in support of her alma mater, saying she was “deeply moved” by those advocating against the closure.
Casino Proposal
Although the 501(c)(3) Bally’s Foundation is separate from the corporation seeking to build the new casino, it remains to be seen whether the Preston purchase will significantly move the needle as the company advances through the ULURP process and other steps necessary to approve what would become the largest private development project in Bronx history. If the hotel-casino complex is approved, Bally’s has vowed substantial long-term investments in the East Bronx that go far beyond the Preston deal.
Conclusion
The purchase of Preston High School by Bally’s Foundation is a significant development for the Bronx community, ensuring the continuation of a beloved institution. While the deal has been met with relief and gratitude, it also raises questions about the future of the school and the potential impact of the proposed casino complex. As the community moves forward, it will be important to prioritize the needs and interests of the students, families, and educators who call Preston home.
FAQs
Q: Why was Preston High School in danger of closing?
A: Preston High School was in danger of closing due to declining enrollment and financial pressures.
Q: Who purchased the property and what are the terms of the agreement?
A: Bally’s Foundation purchased the property for $8.5 million and will lease it back to the school for $1 per year on a 25-year lease with five-year renewals.
Q: What changes will be made to the school’s governance?
A: The Sisters will be required to establish a new board and relinquish its current three of six seats on the school’s Board of Trustees.
Q: How did the community react to the news?
A: The community reacted with relief and gratitude, with many expressing thanks to Attorney General Letitia James for her role in preventing the school’s closure.
Q: What is the status of the proposed casino complex?
A: The proposed casino complex is still in the development stage, with Bally’s seeking to advance through the ULURP process and other necessary steps.
