During my years as Bishop, I have made no secret of my aversion to selling property. Our parishes and the diocesan administration today own but a small fraction of the real estate that has been in our possession, and in general we are the poorer for it. First, we no longer have the real estate, and second, in every instance of which I am aware, we have not kept the proceeds of the sale intact as an endowment for more than one generation.

These same two points concern me about sales of air rights or sales involving a parish's patrimony - the land on which the church, parish house and possibly the rectory sit, or the development rights over that property.

First, these are often what might be called "terminal sales." After this there may be nothing left that the parish can sell. A landmark church with no air rights may have little market value.

Second, because this transaction may represent the last chance the parish has to recapitalize its operation, it is imperative that the proceeds of the sale be protected so that future generations of parishioners can benefit from the transaction.

A review of history shows that this is something neither a parish nor the diocese can do alone. Once a fixed asset, real estate, has become a liquid asset, money, it gets spent. At a moment such as the one we are experiencing now, when the real estate market is going up so fast and when at least some indices of church life in some parishes are stagnant or in decline, the proceeds of property sales are particularly at risk of being spent down.

Parish vestries certainly have responsibilities as fiduciaries of parish assets. With regard to the alienation of the real property assets of parishes, the Canons and NYS law give the Bishop and the Standing Committee a fiduciary responsibility as well.

The Standing Committee and I have taken steps to ensure the preservation of the proceeds of patrimonial property sales by asking that parishes agree to invest them in the Parish Endowment Management Service of DIT so the funds can't be overdrawn, and the principal thereby dissipated, without the consent of the parties that had to approve the sale. This seems a more flexible and less restrictive alternative to a perpetual legal trust. It is a way of all of us working together to accomplish what history shows no one of us can accomplish alone.

This policy has elicited questions and concerns that I want to address. I invite clergy and lay leaders of our parishes to a meeting on Thursday, February 16 at 6 pm in Donegan Hall to discuss these matters, to hear concerns, and to explore any other options that will be both practical to administer over decades and effective in preserving these assets for succeeding generations. Members of the Standing Committee, the President of DIT, the Chancellor and I will be present.

I look forward to working together to strengthen the long-term future of the Episcopal Church in New York.

Faithfully,

The Rt. Rev. Mark S. Sisk,
Bishop of New York