(This is a transcript of what was shared in both worship services on 12/27/09.)
As I mentioned on Christmas Eve and in the E-update this week, we have some exciting news to share with you about the property we have been pursuing on Rt. 228 across from Myoma Rd.
Before I get to the exciting news, let me update you on what the Leadership Team has been up to over the last 8 months since we kicked off our Capital Campaign giving.
First and foremost, we have been hard at work trying to negotiate an agreement that would be favorable to Discovery and allow us to accomplish our goals as quickly and as prudently as possible. Tom Bice has helped lead the charge, coming into the office once a week (taking a personal day from his job) to work on property plans as well as other leadership goals. Besides frequent meetings together as a leadership team and frequent meetings with the owner to negotiate a contract we have also over the last 8 months done the following:
• Secured a local real estate attorney through Kim Ford (our corporate real estate representative and Discovery Member)
• Met with Adam’s Twp. Supervisors twice to determine feasibility of our project. (They have been very positive and helpful.)
• We had a preliminary meeting with Pen Dot to get a feel for future 228 development and to gage approval for an intersection and light. (so far so good)
• We had an appraisal done to determine the value of the property before agreeing to an asking price.
• We have done a phase 1 environmental survey and some initial work with engineers to lay out a feasibility for our master plan and check for major issues (all good so far)
• We have (through the owner) completed a re-subdivision of the property to prepare for purchase and submitted it to Adams for approval (initial look was favorable… no complications expected)
• We have begun investigation of the secondary house on the initial parcel across from Myoma Rd (known as Parcel B) to determine if it is feasible to use as office space (so far so good. This would provide 3 to 4 times the space we currently have and allow us to apply $2400 currently spent on rent to debt service.)
• We have met with 4 local banks and 1 non-profit lending institution about financing. While we received a loan approval from one entity, we were not happy with the stipulations and interest rate and decided to look for a better option. (We found one)
• Settled in on one of the banks as being our lender (will provide name as we get closer to closing). This local bank has given us two proposals and a favorable report after reviewing our finances (note… we are still subject to final loan approval)
• Brought in an outside credited accounting firm to look through our books to ensure accuracy and help for planning in the future (all checked out)
• Read through what seems like a million different purchase agreements with our attorney!
All of that brought us to last week. On Wednesday, December 23rd, (the day before Christmas Eve) we signed two land contracts and two sales agreements for all 4 parcels of property on Rt. 228 (a total of just over 21 acres)! We believe we have negotiated a really great position for the church. We also were able to exceed our original goal that was communicated in our Beyond My Life Campaign and our VIP Meetings by securing more than just one of the parcels now.
While we now have these properties under contract officially (you will notice the signs will read under contract), we still have 120 days that began on Christmas Eve to do some additional due diligence work and to finalize our financing.
The next 120 days will be extremely busy with traffic surveys, environmental reports and all the typical pieces that go into a commercial property purchase. We do not expect there to be any surprises and believe we will close on the property in April as planned… exactly one year after we kicked off our campaign giving!
We will also finalize our financing with our lender. This makes your continued general offering giving and honoring your Capital Campaign giving extremely important.
So what are the terms of the deal? (Refer to Parcel Division Graphic below this post)
Purchased now with closing in April (Sales Agreements)
Parcel B= $1.2 Million for 5.37 Acres (Remember that value is high because of traffic signal/interchange that will provide entrance to the property. This price includes Farm House and could triple our office space as well as allow us to use the $2,400 per month we currently pay in rent for debt reduction. PRICE WAS $1.879 Million (This was our singular goal of the campaign… to secure Parcel B at this amount)
Upper Parcel C = $516,000 for 2.58 Acres. PRICE WAS to be $600,000 + and we were not going to be able to purchase up front due to the original asking price for B. Acquiring this Parcel will help us to move up construction on our timeline significantly. (More to come on construction in the future).
Equity ownership now & held for 9 yrs at 2.64% int(Installment Sales Agreements)
Parcel D= $1,540,453 Million for 8.274 Acres (for $1,000 down and $1 a year we are able to use this property immediately for parking and sports fields for community. Principle plus minimal interest is due in year 9 in a balloon payment. The 2.64% interest rate is lowest allowable by IRS) PRICE WAS Same asking price, but carried much higher interest rate.
Lower Parcel C = $706,884.93 for 4.585 Acres and Large Home ($1,000 down. We will allow Seller and Spouse to live in home for as long as they would like within the 9 years. Like Parcel D, principle plus minimal interest is due in year 9 in a balloon payment. If we cannot afford to pay off principal and interest in year 9 seller will accept prearranged payments). PRICE WAS Same asking price, but carried much higher interest rate.
This agreement as compared with original agreement is saving Discovery at least $1 million and is an incredible opportunity for us to say the least. God has continued to amaze us over the past few months. He continued to open and close doors all throughout the process! Not only did this agreement come in around $1 million below original offer… We also will not have to put $200,000 down as the owner has accepted $13,000 down! If that is not God’s provision I do not know what is!
I want to say thank you to Leadership team (long meetings), thank you to Tom Bice, Kim Ford and all of you for your diligence in giving through an economic crisis to ensure that more people in our region will continue to come to know Jesus Christ!
We will continue to update you on our progress over the next 120 days! Now that we have an agreement there will be more concrete things to share. Continue to pray for the church, the leadership and our community… there is no telling what God is going to choose to do through your efforts!
Wednesday, December 30, 2009
Parcel Division Pic
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This pic helps to define the parcels represented in our agreement. There are three structures on the land. The sellers home/bed and breakfast is located on Lower Parcel C. An older farm house (possible short term office location) is located on Parcel B and a large pole building is located on Upper Parcel C.
Master Plan Pic
This pic demonstrates what we will be able to build out on the full 21+ Acre property. This is a general pic and may not reflect the actual layout of the property. *The shape of the building is just a generic shape to show possible building placement and does not reflect any architectural renderings.
Discovery Christian Church has the desire to continue to grow and become more involved in the community. Our goal is to develop a prominent and modern facility that is frequently utilized throughout the week. Our vision is for a 1,000 seat auditorium equipped with state of the art lighting, sound and video projection capabilities, ample classroom and office space, youth complex, community space (coffee shop, resource center, day care/ preschool) and sports facilities (indoor gymnasium and outdoor softball and soccer fields). Our desire is to build in phases to meet the needs of our growing community.
Tuesday, December 29, 2009
Note About Giving
As you follow the giving updates on this blog, it is important to understand the ebbs and flows of the commitments coming in.
You may have noticed that there is a gap between the YTD commitments and the YTD received lines on the graphs posted each week. There appears to be more of a discrepancy than there actually is.
You see, while the pink commitments line on the graph is a very static and straight line, the purple YTD received line is fluid and sporadic. The reason for this can be largely explained by how people have chosen to give their commitments. Not everyone gives weekly or monthly. Many have chosen to give quarterly, bi-annually and annually. Some even have larger commitments later in the campaign in years two and three than in year one.
The purple line will be up and down every week and we know from looking at our commitment cards that there will be a few larger annual gifts that will come in over the next 4 months (completing the first full year of campaign giving) that will bring the lines closer together if not 'in line'.
That being said, all of your commitments (large or small) are vital to the success of our project. Remember that all funds in this campaign are being used to secure the property and are above and beyond our regular giving and tithes.
You may have noticed that there is a gap between the YTD commitments and the YTD received lines on the graphs posted each week. There appears to be more of a discrepancy than there actually is.
You see, while the pink commitments line on the graph is a very static and straight line, the purple YTD received line is fluid and sporadic. The reason for this can be largely explained by how people have chosen to give their commitments. Not everyone gives weekly or monthly. Many have chosen to give quarterly, bi-annually and annually. Some even have larger commitments later in the campaign in years two and three than in year one.
The purple line will be up and down every week and we know from looking at our commitment cards that there will be a few larger annual gifts that will come in over the next 4 months (completing the first full year of campaign giving) that will bring the lines closer together if not 'in line'.
That being said, all of your commitments (large or small) are vital to the success of our project. Remember that all funds in this campaign are being used to secure the property and are above and beyond our regular giving and tithes.
Tuesday, December 22, 2009
Tuesday, December 15, 2009
Tuesday, December 8, 2009
Tuesday, December 1, 2009
Tuesday, November 24, 2009
Friday, November 20, 2009
Tuesday, November 10, 2009
Tuesday, November 3, 2009
Tuesday, October 27, 2009
Tuesday, October 20, 2009
Tuesday, October 13, 2009
Tuesday, October 6, 2009
Tuesday, September 29, 2009
Tuesday, September 22, 2009
Tuesday, September 15, 2009
Tuesday, September 8, 2009
Tuesday, September 1, 2009
Tuesday, August 25, 2009
Monday, August 24, 2009
Meeting with Property Owner
The meeting with the property owner just ended and it was a very productive and positive meeting. The owner at first look through was agreeable to our initial terms on the 1st parcel. More work is still needed to form the entire plan on all three acres, but the initial look through was favorable.
The owner was also willing to extend our Letter of Intent for 30 more days moving the date of expiration to October 9th. We have until that date to come to an agreement and we feel confident that we are getting closer to a deal. The property will remain off the market until the LOI expires.
The leadership has several meetings with local banks arranged for next week.
The commercial real estate process is a time consuming one. Continue to be patient with us as we work through the finer points of the agreement and continue to pray for the team and the church.
The owner was also willing to extend our Letter of Intent for 30 more days moving the date of expiration to October 9th. We have until that date to come to an agreement and we feel confident that we are getting closer to a deal. The property will remain off the market until the LOI expires.
The leadership has several meetings with local banks arranged for next week.
The commercial real estate process is a time consuming one. Continue to be patient with us as we work through the finer points of the agreement and continue to pray for the team and the church.
Sunday, August 23, 2009
Property/ Leadership Meeting
We just concluded a very productive meeting. We are very positive about some of the new options regarding the securing of financing through other channels that will save Discovery money through interest rates in the long term.
A big thank you to our leadership and their dedication and diligence to coming up with a creative and sensible purchase plan. We have a lot of work ahead of us, but we are making progress.
A big thank you to our leadership and their dedication and diligence to coming up with a creative and sensible purchase plan. We have a lot of work ahead of us, but we are making progress.
Tuesday, August 18, 2009
CDF Meeting
Just wrapped up an afternoon and evening with Church Development Fund. After meeting with CDF representatives and discovering some "changes in the rules" regarding our loan process... the leadership of Discovery will be investigating alternate channels to secure lending.
Next week The leadership of Discovery will meet to talk through some intriguing options. We will also meet with the seller of the property to negotiate an extension on our Letter of Intent as well as a new Letter of Understanding.
We will keep you updated as we continue to try and come to an agreement with the seller that will be honoring to God and prudent with what the congregation has entrusted us.
Next week The leadership of Discovery will meet to talk through some intriguing options. We will also meet with the seller of the property to negotiate an extension on our Letter of Intent as well as a new Letter of Understanding.
We will keep you updated as we continue to try and come to an agreement with the seller that will be honoring to God and prudent with what the congregation has entrusted us.
Friday, August 14, 2009
Leadership Team Breakfast
The leadership of Discovery is meeting this morning to discuss alternative ideas regarding the structure of our agreement with the seller in light of new developments with our potential lender. Please be in prayer for wisdom.
Wednesday, August 12, 2009
Monday, August 10, 2009
Property Team Meeting
The team met this evening to discuss some potential issues with our lender. The lender has undergone some changes in recent months and has made some new requirements we do not believe would be in the best interest of the church. Be praying for this bump in the road.
Monday, August 3, 2009
Tuesday, July 28, 2009
Monday, July 27, 2009
Property Team Meeting
Just wrapped up a very productive property team meeting. We worked through our second offer (in the form of a letter of understanding) and will send it to the owner this week. The corporate real estate process is a long one, but we are making some headway. After receiving the appraisal for the property and doing some due diligence on the cost of site preparation, we were able to formulate this second offer with more data behind it.
Pray the owner will accept the offer and that everything continues to fall in place. We have begun to visit with Adams Township regarding some additional permitting issues as well as traffic light and intersection exploration with Pen Dot.
We will continue to keep you updated.
Pray the owner will accept the offer and that everything continues to fall in place. We have begun to visit with Adams Township regarding some additional permitting issues as well as traffic light and intersection exploration with Pen Dot.
We will continue to keep you updated.
Tuesday, July 21, 2009
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