Town Hall Meeting Q & A – 11-20-2010
23 Nov 2010 Leave a Comment
Questions Raised at 11/20/10 Informational Meeting
Has Ministry Council (MC) considered refinancing current debt?
Loans are with Lutheran Church Extension Fund (LCEF). Interest rate floats and is currently at 5 to 5-1/2%. Commercial Lender may have lower rate; they will want first position on our building which LCEF now has. LCEF supports our mission. Commercial Bank Loan will want a term of 5 to 10 years. LCEF will give us 20-30 years. LCEF works with us on payments in lean times. Refinancing would require a Supreme Court Approval process and associated fees.
Are costs for computers, screens, sound equipment and other multi media equipment included in basement renovation estimated costs?
Those items have not been itemized. They would be part of $18,500 Furniture & Fixtures line.
Can we afford to borrow that much money in overall budget of church for bridge loan to do construction now?
Yes, because we have commitments for that much money in capital campaign. This is separate from church operating budget. Cost to borrow is estimated at $25,000.
Capital campaign included a parking lot. What are estimated costs for putting in a parking lot and how do we plan to accomplish?
Today’s presentation shows $125,000 set aside to purchase the house next door. Estimates need to be gathered for parking lot. Demolition costs could be $50,000 and parking lot construction in the $125,000 to $130,000 range.
Capital campaign had 3 parts; $500,000 for basement renovation, $1,000,000 for debt reduction, $500,000 for property acquisition/parking lot construction. We raised $534,000 of $2,000,000 goal. If we want to do it all, then MC needs to go beyond 3 year plan to 5 or 6 year plan that may include a second capital campaign. What are the priorities for the timing of each project?
It took 2 capital campaigns to do the last building expansion and church experienced the cost of waiting.
Will town approve parking lot in residential area?
Residents objected when we previously applied to put in a parking lot across the street and we chose not to pursue it. The variance process may be easier with contiguous land.
Has RC looked at different options for build out of basement?
RC has worked for many months. The plan is more cosmetic than structural. Some of the basement work, such as electrical repairs, needs to be done no matter what. LBM will let us use sweat equity. That is already part of the estimate for the Jesus wall and could help reduce costs in other areas.
Bridge loan lets us take advantage of current low building costs. Construction period is estimated at 4 months and we will have the use of renovated space for much of the capital campaign.
Homeowner told Pastor she hoped we could wait a couple years to tear down her house because all was new.
The church is currently saving $1,684/month as a result of debt reduction. This will total over $50,000 during time of capital campaign.
Next steps:
Members of RC have offered to come to smaller group meetings for Q&A on the basement renovation.
MC to recommend long range plan to accomplish basement renovation, parking lot and debt reduction that includes priority/timing and recommended financing to support it.
Congregation voters meeting would be needed to secure loan and start basement renovations.
Comments after the meeting:
We need more closed meeting spaces especially during Education hour on Sunday.
Don’t buy the white folding chairs pictured in video.
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