Smigiel was shocked to learn that the Episcopal Diocese of Pennsylvania, ostensibly in the business to help people, was trying to rip off the state by pretending to have intentions to build on a 501Copyright3 property, when all it was trying to do was to preserve Wapiti easements, increase their value, and increase the asking price from the State of Maryland.

"When we began to do the research I found that the Maryland Agricultural Land Preservation Foundation, a conservation group which pays landowners for their property's development rights had joined with the Diocese of Pennsylvania and given them $3 million to purchase it from the State. They then offered to kick back $1 million to the diocese," he told VOL.

"What got me interested was an article in the Cecil Whig newspaper wherein the representatives of Wapiti had applied for a zoning change through the property to add six new homes. They indicated to the public at the hearing that there was no need to worry they were only trying to increase the value of the property so that the State of Maryland would have to pay more for the development rights."

"It doesn't seem a very Christian thing to do to artificially inflate the price of the property and then stick it to the taxpayers. If the Conservation group is acting for the state of Maryland and the Episcopal Church is trying to overestimate the value of these rights that is wrong. Then I find out they are seeking to get several million additional dollars from the State of Maryland to purchase these development rights. There wasn't an agreement for a set amount."

Then Smigiel ripped the deal. "How would the church react if the state went in and sued for eminent domain and then took those development rights? Would that be appropriate?"

"They want tax free status - a separation of church and state - and then publicly flaunt it to the detriment of the tax payers. When I learned what Bishop Bennison has done with his diocese...the missing $10 million, the sex charges and more, I was outraged," said Smigiel, himself an Episcopalian living in Maryland.

"If the Wapiti deal goes through and the Diocese of Pennsylvania tries to get out of the agreement or do anything to increase the price I will personally get the Attorney General of Maryland to punish those who are trying to rip off the taxpayers," he told VOL.

Smigiel also said the tactics being used by Bill Bullitt, the former diocesan chancellor, now apparently Bennison's attorney and Mark Retz, chairman of the Wapiti committee to intimidate neighbors and the State about the road (ownership and maintenance) was also outrageous.

"The Diocese is supposed to take care of the road and now they want the homeowners to take over the responsibility of the road."

An internal memo written by Bullitt written to the Diocesan Council tried to explain the Wapiti transaction, but it fell short, said Smigiel. "I see a conflict of interest here. Bullitt is Bishop Bennison's attorney and he is also on the committee negotiating the Camp Wapiti deal to the State of Maryland."

Smiegel described the actions of the diocese as "strong handed" in dealing with the landowners in trying to make them take ownership of the road.

At a recent special Pennsylvania Diocesan Convention the delegate from the Merion Deanery Jack Henn noted that Bishop Bennison and attorney Bullitt prevented any discussion of the budget re Camp Wapiti. "A proposed amendment reflecting a possible State of Maryland investigation and proposed corrective action was never able to be offered, said Henn, who is also on Diocesan Council.

"This was an egregious but successful move to stifle conversation and discussion that could affect the financial future of this diocese," said Ray Kraftson, an activist orthodox episcopal layman who worships at St. David's, Radnor PA.

END

WAPITI TRANSACTION AGREEMENT

The Agreement

1. Purchase of 616 +/- acres by The Conservation Fund (TCF) for $7,000,000 from Chapman. TCF paid cash of $3,000,0000 and Chapman contributed $1,000,000 to TCF.

2. The Diocese contributed $3,000,000 ("Prepaid Portion of the Option Price") to the purchase pursuant to an Option Agreement, giving the Diocese a 3/7 interest in the property.

3. Under the Option Agreement, the Diocese has an immediate equitable interest in:

(a) 30 +/- acre "West Parcel," subject to reimbursement of certain expenses incurred by TCF. The "West" parcel is actually north of Turkey Point Road, across the road from the main Wapiti parcel. (b) A portion of the remaining property worth $3,000,000, to include the "Program Area" which includes existing dwelling and dock area and the camp and retreat center. (c) The Diocese can "compel" conveyance of this property to the Diocese for no additional consideration to TCF at any time up to 3 years after the original purchase, a date that has now been extended to 12/31/06.

4. The Program Area includes the area on which improvements have been made by the Diocese in the past 3 years. As a result of 3(b) and 3(c), the capital improvements made by the Diocese are included in the Diocese's audited financial statements as assets of the Diocese.1

5. The Diocese can compel TCF to convey to the Diocese the remainder of the property upon payment of an additional sum. If the Diocese pays $4,000,000, it gets everything. If it pays $2,000,000 it gets one half of the remaining portion.

6. The Diocese must exercise its rights by 12/31/06.

7. If the Diocese doesn't pay the full $4,000,000 within 60 days after 12/31/06, TCF has the right to require the Diocese to do so or, at the election of TCF, to sell the remaining property not acquired by the Diocese under 3 and 4. 1 See Note 5 on page 11 and the column headed "Diocese" on page 15 of the 2006 Audited Financial Statements. The column headed "Wapiti" on page 15 refers only to the assets held by the corporate entity known as Wapiti: The Wilderness Retreat.

Status and Next Steps

7. Contemplated that up to $6,000,000 will come from the State of Maryland. (a) Up to $4,000,000 from a grant of a conservation easement on 403 +/- acres. (b) Up to $2,000,000 from a sale of 182 +/- acres to be added to Elk Neck State Park.

8. Maryland DNR has finally presented a revised draft of a Conservation Easement to apply to the 403 acres. Received 9/6/06.

9. We approve -- or suggest final edits to -- the conservation easement in principle, but nothing gets signed.

10. Conservation Fund is currently obtaining two appraisals on the 403 acre piece that give a before easement and after easement value. The difference is the value of the easement for which the State will pay us.

11. CF submits the appraisals to the State and wait for them to get back to us with a cash offer, which has to be at least 4 million for us to proceed.

12. Only after CF gets the State's offer and accept it will anything be signed, etc.

13. No action on the sale of the 182 acres until we have reached agreement on the conservation easement and have a binding agreement to be paid for it.

14. When the Diocese takes title, it will hold Wapiti in a subsidiary of the Church Foundation. If proceeds of sales are more than required to buy-out CF, the proceeds will be paid to that subsidiary. The board of Wapiti: The Wilderness Retreat will present a plan for the use of those proceeds for the benefit of Wapiti, which could include proposed capital improvements or a proposed endowment to support camp operations. This plan should be presented to appropriate diocesan bodies for consideration.

END