HANDOUTSThere are 9 handouts for each member in a discussion group.

Print them out as an easy way for members to see what is being proposed and

questions to share their insights.

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HANDOUT #1: MAP OF GRAILVILLE WITH POTENTIAL BUYER PARCELS AND GRAIL HOME

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HANDOUT #2

FACT SHEETSOME FACTS about The Grail and Grailville at present.

1) Deficits: The Grail in the United States has always operated on a slim budget. We have benefited from generous donations and bequests. However, we have been operating under deficits for a long time to cover the costs of buildings, grounds, programs and staff. When examining our financial records it is important to note that our investments were affected by the world-wide recession in 2008 and 2009 when the markets overall lost value and our deficits from 2010-2013 reflect the investments in staff and buildings the membership committed to in the Movement Building Scenario. Since 2014, we have cut our deficit spending by eliminating staff positions and closing the Grailville Retreat Center.

2) The Grailville Endowment policy allows the annual release of 4.5% of the average of the balance over the past 3 years. This comes to $45,000 to $50,000 annually. Our current holding in this endowment is $1,057,514. The Health and Welfare Fund is a separate fund and is protected by policy and is only used for the designated purpose of caring for our elders. Other funds are also protected by policy and used for designated purposes. (See additional report from the Grail Finance Team).

3) The Finance Team projects that the anticipated income for 2016 for Grailville from donations and leases is $35,700. The projected bare bones expenses, assuming no program use or staff, is $70,152. These expenses include projected utility costs, insurance, and loan repayments. The current projected deficit for the 2016 operation of Grailville without programs or staff is $34,452. This deficit could be covered by the annual draw down from the Grailville Endowment, but we need to anticipate needing to hire a caretaker/staff to monitor the buildings and land. Additional funds may be needed for emergency maintenance and for any Grailville planning process that develops. (See additional report – handout # 9 from the Grail Finance Team for the bare bones Grailville budget estimates).

4) Sale of land with easements guarantees in perpetuity that the land will always remain as conservation area or as agriculture, NOT for housing development. Although the Grail may no longer “own” the land, the land remains in “trust” as open space and cannot be put into any use not allowed by the easement restrictions.

5) See original Grailville Future Committee Report for more details about:a) Clermont County Park Districtb) Turner Farmc) First Step Homed) Bloomfield/Schone) Finn Meadows Farmf) The Home Place, St. Columban, and the 1.8 acre plot to the Paumier family.

6) All ‘sale prices’ will still need to be negotiated. These are rough estimates.7) Note that the Implementation Committee had earlier decided to put Finn Meadow Farm [99 agricultural acres]

on the back burner at this stage, partially as the potential buyer's current lease wasn't to run through 2018. However, their current landlord is now looking to sell this land to a developer so the Luff's are ready to move forward now. They plan a 1- to 2-year transition period where they would operate at both locations, moving animals and preparing soil for crops. In this transition period, they would be interested in discussion with the CSA and the Hill's about leasing pasture and garden space.

DISCUSSION QUESTIONS1) Is the MAP and the financial situation at Grailville clear?2) How does this overall picture make you feel?3) Write 3 things on a piece of paper that you wish could have been different.4) Fold your paper, and put it aside. Can we be open to new life, in a different form?5) A Grailville on a smaller footprint is what we now face in the future.

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HANDOUT #3

GRAIL AT GRAILVILLE IN THE FUTURE

Area: Section A (yellow) roughly 8.6 acres.

Note: As Grailville is a national asset, a planning group will be asked to form during the National Meeting October 31-November 2, 2015. Council and the Implementation Team recognize that, as has been done in the past, a team of local and non-local Grail members need to address what The Grail at Grailville will include, things such as programming, outreach, community. The local Grail around Grailville has put many hours in developing a provisional plan. It is hoped that this plan can be built on during the National Meeting, and worked on into the future.

YOUR IDEAS and THINKING can be sent to any of the Grail members going to the national meeting, or to Noreen at the national office. We assume that this work will not be completed this year.

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HANDOUT #4

CLERMONT COUNTY PARK DISTRICT AREA: Section B, 82 acres as measured off recent map: 18.7 acres on northeast woods; 46.2

acres on southeast wood, and 17 acres on southwest woods.

Purpose: to hold 82 acres in perpetuity with a deed restriction (No future agricultural or housing development use) owned by the Clermont County Park District who, as owners, will maintain paths, and property. Public access allowed.

Conditions: park area for hiking clearly marked

Sale price: roughly $1,700,000 - $2,200,000[includes land sale price and government grants for easement]

Timing: Grail needs to agree to move ahead by December 2, 2015 so the application for government grants can be filed by February 5, 2016.Disbursement of these funds is 6 to 9 months after the application is approved.

Process: An application to government agencies needs to be sent by February 2.The application needs to include a survey, boundaries agreed to by the Grail, and necessary paperwork need to be done.

Note: Deed restrictions put in place and are permanent [in perpetuity] and restrict the land use: housing developments or agricultural uses would not be allowed.

Funds to Grail: Money after application and approval [if approved], will come to the Grail in approximately 6-9 months.

Agent: Trust for Public Land [TPL]

Clermont County Park Discussion questions:1) Is this clear?2) What are the pros and cons of this proposal?3) Would you add any other conditions?4) Would you recommend we go ahead with the Clermont county park sale?

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HANDOUT #5

TURNER FARM

Area: Section C, 42 acres and Ark

Purpose: Turner Farm (a non-profit foundation) would own and hold 42 acres for agriculture, to be used for organic farming, with the Ark used for interns. Their work of organic farming and educational programs is very much in line with the agricultural work and education that has been part of the Grailville program in the past, and envisioned for the future. The land would be protected in perpetuity for agricultural use by easements at or before the time of sale.

Conditions:

o A contract drawn up by our lawyer.

o The Grail will have legal rights of access and use of the driveway, space in the P, and trails to the cemetery and Shangri-La in perpetuity but Turner Farm will own and maintain these.

An AGRICULTURE EASEMENT be put on this land by the Trust for Public Lands meaning land is protected for only agricultural use in the future.

Sale price: Roughly $404,000[includes a grant for agriculture easement] and dependent on appraisal.

Process of Sale: A preliminary letter of intent is prepared and seen by all parties. A final vote by all members settled by December1. If members agree to this sale, a revised contract signed by Grail & Turner after the survey is complete.

Alternative: This parcel remains Grail owned and is either fallow or leased to others for agriculture.

Easement: Applications are prepared by Trust for Public Land [TPL]

Turner Farm discussion questions:1) Is this clear?2) What are the pros and cons of this proposal?3) Would you add any other conditions?4) Would you recommend we go ahead with the Turner Farm sale?

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HANDOUT #6

FIRST STEP HOME [HUB].

Area: Section E about 8 acres according to map measurements with Modicum, Benedicite, Caravansary, Hodie, Offices, House of Joy and dining room. Also the kitchen gardens, the orchard, the wetlands, lawn and specimen trees.

Purpose: First Step Home will use the HUB area as an addiction recovery center for pregnant women and women with children ages 0-12.The buildings will be renovated for First Step Home by the architect/developer Bloomfield/Schon. Grail members would be able to volunteer to work with First Step Home.

Sale price: Maybe $650,000 - $1.2 million [needs an assessment and appraisal]

Process of sale:o Contract/sale agreement drawn up between Dec. 2, 2015 and March 31, 2016o First Step will need one year after contract is signed to raise total funding and

collaboration with County agencies.o Bloomfield/Schon Developers will do the infrastructure work (such as roads and buildings).o In 2017, First Step engages Bloomfield/Schon to rehab all buildings.o The Grail gets paid at closing 1+ years after contract to sell.

Conditions: First Step may only resell the HUB to another nonprofit organization; however The Grail will

maintain First Right of Refusal. All government approvals for First Step Home to purchase the HUB are verified prior to sale.

Agent: Bloomfield/Schon [architects and land developers]

First Step Home Discussion questions:1) Is this clear?2) What are the pros and cons of this proposal?3) Would you add any other conditions?4) Would you recommend we go ahead with the First Step Home [HUB] sale?

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HANDOUT #7

BLOOMFIELD/SCHON.

Area: Section F, 15 acres off rt. 48 and 17 acres in southwest woodlands

Purpose: Bloomfield/Schon is an architect/developer. They have three parts to their proposal.1. To be the renovator for First Step Home (see previous handout).2. To build innovative energy sustainable homes in the southwestern wooded area.3. To build homes for two different clients: Episcopal Retirement Homes and Angel Care Home for those suffering from Alzheimer’s managed by Angel Care.

Sale price: maybe between $900,000 - $1,080,000 [needs appraisal]

Process of sale:o Bloomfield/Schon and the Grail mark out all boundaries, mark trees, and work

together on a master plan between January-May, 2016-Bloomfield/Schon will develop the land with roads and utilities, design and build the buildings and sell to their clients.

o Surveys, legal work, and all infrastructure development will be done by Bloomfield/Schon completed by August, 2016

o Deed of Sale/Contract signed by November, 2016

Conditions:o Walking trail easement access to be granted to the Grail through residential and

retirement properties.o The large pond and its earth dam not to be disturbed.o Tree replace put in contract.o Contract from Grail includes that the parcel of land on Route 48 will be sold by

Bloomfield Schon to Episcopal Retirement and Angel Care, not to be sold for private residents. Episcopal Retirement and Angel Care are two different, independent organizations. Bloomfield Schon will sell the land to them for their projects.

Alternative:The southwest corner of woodlands could be kept as an conservation easement and not soldto Bloomfield/Schon for residential housing and other space negotiated withBloomfield/Schon.(see map B or F in this section)

Agent: Bloomfield/Schon

Bloomfield/Schon Discussion questions:1. Is this clear?2. What are the pros and cons of this proposal?3. Would you add any other conditions?4. Would you recommend we go ahead with the Bloomfield/Schon sale?

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HANDOUT #8

FINN MEADOWS FARM

Area: Section D (grey). About 110 acres of central agricultural land on the south side

Purpose: To keep this acreage in sustainable agricultural production. Finn Meadow Farm is privately owned by the Luffs. They plan to raise livestock and produce for sale. The Luffs would eventually build a home on the property.

Sale price: Roughly $440,000 land sale plus a grant for agriculture easement.

Process of sale: The Luffs current lease is tenuous and they are looking to begin transitioning to the south side property as soon as possible. They recognize that this transition period may take 1 – 2 years and that they will likely be working both farms for a period of time. They are open to discussions with the Hills and the CSA regarding leasing pasture land and garden plot during this time frame.

Conditions: The Luffs must have contract to take to USDA for loan application.

o An agriculture easement be put on this land by the Trust for Public Land prior to sale, being cognizant of their need to build future residence on property.

o Land will be worked in a way consistent with organic principles.

Agent: Private sale between the Grail and the Luffs or through Trust for Public Land.

Finn Meadows Farm Discussion questions:1. Is this clear?2. What are the pros and cons of this proposal?3. Would you add any other conditions?4. Would you recommend we go ahead with the Bloomfield/Schon sale?

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HANDOUT #9U.S. Grail Financials

September 2015

In consideration of the decisions U.S. Grail members face concerning the future use of Grailville, the Grail Finance Team has prepared a concise statement of the U.S. Grail financial situation as of September 30, 2015. It is our hope that this document will assist Grail members in their decision-making process regarding Grailville. This is not a simple task, but here are some facts that are relevant to our decision:

As we agreed at our General Assembly (GA) in June 2014, the investments we have made in the opera-tion of the Retreat Center at Grailville, while they have borne positive results for the people who used the Center, were ultimately unsustainable economically. The decision was made to close the Retreat Center effective June 30, 2015.

As a result of the discussions at the GA, a committee [the Grailville Future Committee] was formed from member volunteers to solicit proposals for the use of the resources at Grailville. A Request for Proposals was drafted, approved by Council and circulated to the entire membership as well as to other commercial and compatible entities, many identified by members.

We are now considering the recommendation of the Grailville Future Committee concerning the pro-posals that emerged from that process. Some of the proposals involve the option of selling land that has been part of Grailville for many years. Members are questioning why we should consider such op-tions.

The following pages display some facts about our current financial situation. We know that for the U.S. Grail, we have investments, all owned by the Grail, and segregated into separate accounts for specific purposes. The value of these investments changes day to day because they are invested in the stock market. We receive an accounting of their value each month. Over the years, we have used these holdings to invest in the Grail National Operations, Cornwall and Grailville. The table on the next page displays the most recent data available on the balances in these categories of investments.

Footnote: The membership decided when the Grailville Endowment was established that it would not be tapped until its value reached more than a million dollars. Since that point was reached in 2005, policies have been put in place to ensure the Endowment remains at or over that level.

While it is true that there are other funds in portfolios to tap, Grailville is not the only place or project in which we invest in our mission. If the Grail – US is to continue in the future we need to generate income. The proposals recommended by the Grailville Future Team provide opportunities for income generation.

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Portfolio 30-Sep-15Health & Welfare: Used only to support Grail members who have given 10 years or more in service to the Grail at subsistence compensation and whose retirement income is inadequate to support their needs. Fewer than 20 members qualify for these benefits now. An actuarial study is done every 3 years to assure the adequacy of these funds. $966,201

Grailville Funds-Endowment and Other: Funds designated for the support of Grailville, some for specific projects, others more general. The Endowment has specific restrictions set by Council. $ 1,057,514Grail General Fund: For use generally to support the operations of the Grail in the U.S. $140,153Major Maintenance Fund: available for needed capital expenditures, for repairs or improvements at Centers $91,405Special Projects: Funds donated for specific purposes to be used by the Grail for those purposes. $31,514New York Region: Funds from the sale of the Brooklyn Center on Clinton Ave., designated for growth of the Grail in the NY Region. $109,111Cornwall: Funds donated to and sustained by the Cornwall Center, available to support its operation and sustenance. $ 36,859Total Investment Holdings: $ 2,432,756Recognizing that the Health & Welfare Fund is not available to support other Grail activities, the balance excluding Health & Welfare is: $1,466,554At the end of September 2014 the Total Investment Holdings were $ 2,843,342The balance excluding Health & Welfare was $ 1,726,045The changes in value over the past year reflects both spending and the changes in market values.

Given that we have such abundance of resources available, why are we contemplating sale of any of our land at Grailville?We have closed the Retreat Center and laid off staff at Grailville. If we look at what the income and costs are to “operate” Grailville, with no new program initiatives and no staff, we can identify the following sources of income and expense at Grailville:

2016Income per year

Donations [assume $1250/month from membersand $300/month from others] $18,600Leases agreed to:

Children’s Meeting House $ 3,600Land leases [cattle, CSA, chickens] $ 13,500

Total Income Grailville: $ 35,700

ExpensesUtilities [Water, electricity, heat] $36,144Insurance [costed for buildings as used; predominantlyfor residence, storage or vacant] $22,284Loan repayments $11,724Total Expenses, assuming no program use or staff $70,152

Deficit for 2016 Operation of Grailville without programs: ($34,452)

Please note that there is also an annual Grailville Endowment draw of approx. $45,000 that can be counted on but purpose to be decided. Also note that some staff will be needed.

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