$2 Million Loan Will Sustain King’s for Spring Semester
Graphic by Angelina Ispir
The King’s College will be able to finish the spring 2023 semester thanks to a $2 million loan from Peter Chung, although the future of the college remains uncertain.
As of the most recent community update, the college raised $251,000 of the $2.6 million funding gap needed to “finish the semester well.” In an email on Friday, March 3, King’s confirmed that “we received bridge financing that will provide us with funds to ensure that we can fulfill our financial obligations to faculty and staff through the end of the semester.”
“We still need to raise funds to fulfill all of our financial obligations and are grateful for the continued momentum we see with gifts coming in from alumni, parents, and friends,” the email read.
The “bridge financing” is a $2 million interest-free loan from Peter Chung, the CEO of Primarcorp Enterprises, according to five sources who spoke to the Empire State Tribune but asked to remain anonymous.
Two sources said that a staff and faculty meeting on Wednesday, March 1, confirmed that Primacorp is officially pulling out of King’s despite the fact that they “took over most of the board.” Primacorp appointees outnumber previous King’s appointees on the Board of Trustees by five to four as of April 2022.
At least three board members – Stockwell Day, Rodney Bergen and Rev. Dr. Soon Chung – have previous close business or personal ties with Peter Chung. Day and Bergen have worked as consultants on other projects with Chung. Rev. Dr. Chung is Peter Chung’s brother. TKC board members Jim Cunningham, Dr. Marvin Kehler and Bergen are also on the board of Coram Deo Foundation with Peter Chung.
Primacorp’s exit intends to improve King’s standing with other potential partnerships, as mentioned in the meeting.
The loan details have not been publicly released, but sources say the current terms outline that the $2 million will be paid back with the pending government grant. If King’s either does not get approval for the grant or closes before receiving it, the loan from Chung will convert to a grant instead, according to sources who attended the meeting.
The sources noted that the loan will cover payroll for staff and faculty, ensuring that staff receives payment through May and faculty through July 31. More recent layoffs were discussed at the Wednesday meeting, but an exact number was not disclosed.
The graduation ceremony will also proceed as planned on May 6. Christianity Today reported on Feb. 28 that Christopher Scalia, the son of the late Supreme Court Justice Antonin Scalia and a senior fellow at the American Enterprise Institute, will be the 2023 commencement speaker.
“There are potential, viable scenarios for King’s to remain open in the fall and beyond,” the email read. “We are engaging potential donors of every size, and are having serious conversations with other educational institutions about potential affiliations.”
The $2 million loan does not cover the overdue rent for the Albee on-campus housing. Three sources confirmed that the rent is another $1.2 million on top of the original $2.6 million, as addressed at the Wednesday meeting.
Parents, faculty and students were not informed that the Albee rent is a separate need from the funding gap King’s has advertised since January. Chief Financial Officer Jennifer Anderson said at the Feb. 13 community update, “That $2.6 million includes a lot of expenses that we’re trying to cover over the next few months, which includes the apartment rent… We are committed to paying Albee as soon as we are able and as we're continuously and currently working on fundraising efforts to meet that $2.6 million gap.”
“I don’t completely know the answer to that,” said Jeremy Story when asked if the Parents Advisory Committee – of which he is a member – was aware of the rent being separate from initial fundraising numbers. “It is my understanding that the $2.6 million has taken into consideration every expense and income source of King’s as of the calculation, and this would include the housing.”
King’s has yet to explain how they will raise the money for the rent and has instead focused on New York State tenant rights in which a tenant can dispute the eviction in court and remain on the premises. Tenant rights can allow the non-payer to reside on the premises for months.
“We feel it’s a bad example for the school to not pay rent and to show students that [it’s] okay to stiff the landlords,” said a meeting attendee who wished to remain anonymous.
Dean of Academic Affairs Dr. Kimberly Reeve said at the Community Update on Monday, Feb. 13, “The state of New York actually has laws that very much favor tenants,” and King’s has consistently reminded students via emails and Community Updates that the overdue rent notices pose no threat to their housing situation. Albee residents received multiple 14-day notices which stated that building management is continuing to pursue the possibility of eviction.
The college reassured on-campus students that they will not face eviction in a statement recently made to a WNBC reporter, who plans to interview students about the past-due rent.
“Thanks to the progress we are making on our fundraising overall, we are now starting to catch up on the rent that is due,” the statement read. “Students can be assured of being able to finish out the semester in their present apartments.”
King’s executive administration and Chung did not respond to multiple requests for comment from the Empire State Tribune.
Mandie-Beth Chau is the Campus Editor at the Empire State Tribune. She is a freshman studying Journalism, Culture and Society.