Building Program Q & A

Do you have a question about the building program?  While we will host several building tours in January and gather feedback from the congregation, feel free to ask your question in the comments below.  Answers to several FAQ's we receive here and through email will appear on this post.  We will use these questions to guide our discussion of the building in the days ahead.

Question:  Exactly how much money is the current gap between what is absolutely needed for the down payment (excluding the repairs we need to make) and how much we have collected thus far? According to my calculation, we have a total of about $450K collected for the building fund ($200K from last year + $250K collected since December) leaving a $50K difference before we meet the $500K required for the down payment . Is this accurate, or am I missing something? 

Answer:  We will provide details at the Vision Nights this week, so be sure to attend one.  But here is an overview:  The way this goal was calculated was: $525,000 down payment + $175,000 for closing costs and immediate repairs = $700,000   We have $201,753 saved up from previous building fund offerings before 12/2013.  Subtract that from the $700,000 and you get the $500,000 goal.  Subtract the amount collected since 12/2013 and the amount still needed is $266,351.  We cannot exclude closing costs and immediate repairs, as the bank expects these repairs to be made right away.  3 furnaces are broken, and the roof is leaking badly.  Both of these problems could become major financial crises if not taken care of right away.  These problems are also decreasing the value of the building, which is effecting our borrowing capacity for an equity line.  We would like to bring the value back up to help finance the renovation project.      

Question: What happened to all the money we collected before December?  Does that count towards our goal of $500,000?

Answer:  We still have that money saved up, but it we need $500,000 more to purchase the building.  The bank wants a $525,000 down payment.  Subtract the $200,000 that we already have, and we need $325,000.  The bank also has concerns about the state of the building, as does our facility team.  We will need to take care of the roof and some of the HVAC immediately after the purchase.  Broken furnaces and ancient air conditioners need immediate attention.  We are allowing $175,000 for these repairs, though the actual amount could be higher.  $325,000 (down payment) + $175,000 (immediate repairs) = $500,000, our first goal we must hit by 2/15/2014.

Question:  Why now?  Why not wait?  

Answer: We've enjoyed a great rental relationship with Stagg High School for the past 3 years.  But they made it clear to us that they want this to be our last year there.  They did say they "might" give us another year if we absolutely needed it, but no guarantees.  Given this fact, we need a new facility sooner rather than later.  We could move the church to Chicago Christian High School beginning fall of 2014, but we feel that would be a step down from what Stagg has afforded us.

Question:  That's a lot of money for a building.  Is it wise to make such a purchase?

Answer:  While 1.5 million dollars is a lot of money, the price is a bargain.  The building was appraised at 2 million dollars just a few years ago.  Also, we are currently spending about $110,000 a year on rental costs for multiple ministries.  Since we are already spending a lot of money on a facility, it would be better to own a home that gives us a return on our investment.  As owners, we will have equity, we can pay down the principal, and the building can increase in value over time.  We can also generate revenue by renting our building out to other organizations for various uses.