jQuery Slider

You are here

PENNSYLVANIA: State of Maryland Drops Land Deal with Diocese of PA

PENNSYLVANIA: State of Maryland Drops Land Deal with Diocese of PA
Diocese Announces Closure of Camp Wapiti. Losses in excess of $4 million

By David W. Virtue
www.virtueonline.org
10/6/2007

The Episcopal Diocese of Pennsylvania faces a financial crisis. It cannot come up with millions of dollars needed to finance a jointly held land deal in the State of Maryland resulting in staff layoffs and the closure of the wilderness retreat Camp Wapiti.

The diocese has spent more than $3 million to date to purchase the rights to buy the land. A Conservancy Fund group in Maryland spent another $4 million.

The Standing Committee has taken the position that the Diocese cannot afford Wapiti. It has given its canonically required consent for the Diocese to obtain a commercial mortgage to purchase the land from The Conservation Fund subject to the following stipulations: The Wapiti property is to be sold. All proceeds from the sale of the property in excess of the amount required to satisfy the mortgage are to be used to restore the endowment funds which were used to purchase, improve and maintain Wapiti. Camp Wapiti will cease operation as of October 15, 2007.

The Committee on Finance and Property called for the closing of Wapiti's operations under the current business plan. The Wapiti Board of Directors passed a resolution to "request that the Bishop and Standing Committee make available from the unrestricted net assets of the Diocese $290,000 to meet the expenses associated with closing the present business operation of Wapiti." Bishop Charles E. Bennison approved the request.

Jeff Moretzsohn, a delegate to diocesan convention told VirtueOnline that the diocese has spent more than $7 million dollars to improve land that they don't even own. "Now they find themselves backpedaling and actually trying to find the four million dollars to purchase the land with the intent being to sell the whole thing in hopes of recouping more than the 4 million necessary to buy!"

Moretzsohn said that where the $4 million comes from is the subject of much debate. I am not sure the banks will pony up when the diocese is losing money. Diocesan leaders could follow through with the bishops plan of shutting down churches and selling properties, he said.

One orthodox priest opined, "What do they need $290,000 for and for what expenses are they talking about?"

The state of Maryland has decided not to purchase any portion of the property at Wapiti. The Conservation Fund has decided, after five years and a number of extensions (the original agreement was for two years), that they wanted the diocese to purchase the property, as planned, and pay them the negotiated amount agreed to with no more extensions.

This has caused a financial crisis in the diocese forcing the Finance and Property Committee, along with members of the Standing Committee, the Executive Committee of Diocesan Council and the Chancellor of the diocese to jointly decide to abandon any claim to the property. Bishop Charles E. Bennison, who faces Presentment charges with the national church, has apparently agreed to the closure.

"In the interest of transparency, and in order to be an agent of rebuilding both confidence and trust in the Diocese of Pennsylvania and its governing bodies, the Standing Committee believes it is helpful for our diocesan family to understand the serious financial situation we are facing concerning Wapiti, and how the governing bodies have been addressing, and continue to address, the issues concerning this property and the assets of the Diocese of Pennsylvania," said a statement at the website.

An Open Forum is planned for Sunday, October 14, 2007, at St. Mary's Church, Wayne from 5 - 7 p.m.

However, a Maryland legislator, Michael D. Smigiel, said the whole deal by the diocese and Conservancy Fund fell apart because the Diocese of Pennsylvania, in an effort to keep a parcel of land valued at more than $7 million, had tried to develop it at tax-payer expense. He angrily called the whole deal "unconscionable" and "fraudulent".

Smigiel, who represents Cecil County in the 36th District that includes Camp Wapiti, said the deal involved attempts to increase the value of the land at taxpayer expense.

"The diocese joined with the Conservancy Fund to purchase the property and put in $3 million. The Conservancy Fund put in $4 million. Both organizations had hoped for easement rights for property development. I opposed this flagrant misuse of tax payer money," he told VirtueOnline in a phone call to his office.

"I find it unconscionable that the Episcopal Church was looking to maximize the amount of money it could get from the state by locking in a subdivision plan now, before the required acreage per home is increased. By doing so the church hoped it could keep the appraised value high," Smigiel told VirtueOnline. "We were concerned with how they were negotiating with the state."

Out of the deal, the Diocese got three-sevenths interest and the Conservancy got four-sevenths.

Under pressure from Smigiel, the Department of Natural Resources for the State of Maryland, and the attorneys involved with making the decisions where the money is spent for easements said they would not purchase the easement at the Wapiti. "It is no longer a priority."

Smigiel said he brought the whole issue to the attention of state attorneys saying that the latest "fraudulent" effort was an attempt to extort additional millions from the state of Md. by the Diocese and the Conservancy Fund working together to sell the easement priced at $2 million for $6 million. "We had no intention of letting them develop the land by getting the highest amount from the state. They would have been hard-pressed to develop that land.

"The Conservancy Fund is in the business of conserving land. They were working hand in hand with the diocese going before the Planning Commission called Wapiti to develop the land. That on its face is fraudulent. They should not have been allowed to develop the land. We had no intention of letting them build just to rip off the state for as much money as they could get.

"I am extremely offended that the church, which often comes before the legislature to do things to keep the state and Government out of church business, and then the church does something sleazy and unchristian like when they attempt to extort money from the state though as a threat I believe it is a hollow threat because they should not be doing it. I am taken aback at the behavior of the church and the board in allowing this to take place. You would think they would behave in such a manner as to set a good example and be above this kind of thing. They are serving mammon not God."

END

Subscribe
Get a bi-weekly summary of Anglican news from around the world.
comments powered by Disqus
Trinity School for Ministry
Go To Top