Information on Remodel

Rationale for remodel project: Currently we do not have adequate space for children or youth, nor do we have large enough adult SS rooms. Our children’s worship is held in the gym using portable dividers which provide no soundproofing. The atmosphere is not conducive to worship and the kids are subjected to frequent interruptions. The teens do not have any space that is dedicated for their use and purposes, be that worship space, Sunday School, or social activities. The plan we are presenting would meet our needs in each of these areas without the undue financial strain that a new building would create. We believe that the spiritual formation of our children and youth is a much higher priority than having a space where we can play volleyball a few times a year and the occasional all-church meal, and that this commitment should be reflected in our architecture as well as our budget and programming. After 11 months of discussion (started Jan 09), input from consultants (McKnight Group), and prayer, the church board believes that the proposed plan represents the best stewardship of our existing space and financial resources.

What we gain: 8 additional SS classes; children’s sanctuary; youth sanctuary; dedicated space for children, youth, and adults; café area; patio; remodeled kitchen

What we forfeit: gym that is infrequently used as a gym; space large enough for all-church meals. How will we compensate? All church meals for special occasions such as Faith Promise could be held at a local hotel or banquet facility. Wednesday night meals will continue in the remodeled foyer.

This project will include: Constructing and furnishing additional Sunday School Rooms, as well as children’s and youth worship areas in what is now our ‘gym’; Construction of a patio; relocation of nurseries; remodel of foyer with café; increasing size of adult classrooms; relocating offices; updating sanctuary with new lighting and platform flooring.

Financing: First Federal Bank . 2 years ago we refinanced our existing 2 mortgages (church and annex) into one loan at a rate of 6.25%. That saved Grace $3,000 a month in mortgage payments. We have 13 years left on our existing loan.

Details: Mr. Gene Whitfield has already given us a verbal that First Federal is prepared to finance whatever we need. In e-mail correspondence, this is what we have received:
Option# 1 $300,000 on a 10 year amortization. Rate of 6.25% fixed for 3 years.
Option #2 $300,000 on a 10 year amortization. Rate of 6.75% fixed for 5 years.
* These are estimated terms and rates.
Estimated payment $3375.00 on Option #1
$3445.00 on Option #2

Average Checking Balance $42,839 (2,500 Grace House, 6,700 Bus fund, 2,000 Benevolence Fund, 3,000 reserve, 2,500 miscellaneous that stays in the account)
Savings Money Market Account Balance $37,454
Green Bank Savings – $5,520 (Grace House)

Current indebtedness : $797,671 Total Indebtedness would become: $1,097,000
Current mortgage payment: $7,503 Projected Total Mortgage Payment: $10,948

HOW WE PLAN TO COVER INCREASED MORTGAGE:
Current building fund on hand: $37,454
With the new budget formula $28-30,000 now going out will stay here.
While adjustments will need to be made to meet this addition to the mortgage payment, we could handle it with our current income.
Vision Fund / Gifts in kind

Financial History – Raised for All Purposes:
2006-2007 $698,426
2007-2008- $647,867
2008-2009 $659,169
2009-2010 On pace to raise $665K-695K (avg. weekly income this yr. is $13,375)
June – November 2007 – $325,891
June – November 2008 – $344,436
June – November 2009 – $347,768

Contractor: Suggs Construction
Project Manager – Larry Cardwell, Two Rivers
Time of project – Jan-June, 2010

How it works in the Church of the Nazarene:
Approval Process: has to be affirmed by local church board (unanimous approval 12/2/09), 2/3rds vote of membership present at time of vote, and the district properties board (unanimous approval 12/5/09).

Manual, paragraph 103
“The local church considering the purchase of real estate, the erection of churches or church-related buildings, a major remodeling of either, or leasing real property for any reason, shall submit its proposal to the district superintendent and the District Church Properties Board for their consideration, advice, and approval. No indebtedness, whether involving a mortgage or not, shall be incurred in the purchase of real estate or the erection of buildings or a major remodeling of either, without the written approval of the district superintendent and the district properties board.”

Manual, paragraph 103.4
The local church may not purchase real estate, nor sell, mortgage, exchange, or otherwise dispose of real estate except by two-thirds vote of the members present at an annual meeting, or at a special meeting duly called for that purpose, except the church board may approve by two-thirds vote of its members present and voting, properties donated for the specific purpose of providing funds for the local church, and except upon the written approval of the district superintendent and District Properties Board.

In compliance with the Manual, we have received unanimous district approval for the remodel and financing necessary to complete it. This occurred on December 5th, 2009.
Only thing now needed is two-thirds vote of church members who vote on Jan. 10th.
Who votes? “Only those persons who are active members and have reached their 15th birthday shall be entitled to vote in church meetings.” (Manual, 113.1)

Grace is committed to maintaining financial integrity. While this proposal does involve a measure of faith and the expectation that we will continue to see increases in our annual income, it also represents a conservative approach to debt, remaining well below 2 years annual income for total indebtedness. We are committed to doing this project without compromising current ministries and believe that as we are faithful to carry out our financial affairs with due diligence, that God will honor the vision He has given us, and will provide what is needed.

Membership Vote – Sunday Morning, January 10, 2010

Any questions can be directed to Pastor Steve (647-7768, pastorsteve@clarksvillegrace.org) or a member of the church board.