Wednesday, August 26, 2009

Foyer Renovation and Expansion Project FAQ - Part 3

How will we be funding this project? We are thankful that we have over $1.2 million dollars in cash that we can use as the bulk of payment for this project. The Elder Board has voted unanimously to recommend to the church that we finance the remaining portion (up to $760,000.00 maximum) over the next 5 years at an interest rate not to exceed 5.75%. If not another penny came in to this project, we would be able to pay this amount off in 5 years using monies currently in our budget (we continue to pay a portion of our former mortgage to ourselves). It would be our prayer and our anticipation that through additional giving to the building fund we could pay this loan off within the next three years.

What bank will we be using for this financing? We are currently in negotiations with two institutions. One is local (Fulton Bank) and the other is through the Grace Brethren Investment Foundation (GBIF). Both of these institutions are eager to help us with this project and our offering very competitive rates and terms.

Why would we choose to expand the project and finance a portion of the cost? We feel that we are in a very good setting to do this for several reasons. First, we are very strong as a ministry financially at this point (which we praise the Lord for) and giving continues to increase. Second, interest rates are very low at this time. Third, there is likely to never be a time again in the near future when construction costs will be as low as they are now. With the rise of oil prices, pricing for paving will also be rising in the very near future as well. Fourth, beginning January 1st, building codes will be changing and if we wait until after that time to start construction we will most likely need to update our facility with a sprinkler system that would be very costly. And finally, because we have been paying ourselves in our yearly budget from the monies used for our previous mortgage, we can do this financing with monies that are already currently in our budget.

Will there be opportunity for our church family to give toward this project? Yes! The Building Fund remains open and can be given to at anytime. The more that comes into this fund, the less we will have to finance and the quicker we can pay off any financing we encounter. We do ask that all giving to the building fund be above and beyond your regular giving to the church so that our present ministry does not suffer financially during this project.

When will construction begin on this project and how long will it take? We have planned Sunday morning, August 30th, for there to be a ballot vote of the congregation to approve this project. All members and regular attenders who are age 16 or older are encouraged to participate. We are tentatively planning to hold a ground-breaking ceremony led by Pastor Tim on Sunday morning, September 6th. This brief ceremony would occur between our first and second service (9:45-9:55) and then be repeated in between our second and third services (11:15-11:25). Construction would then begin as soon as possible. The entire project could take up to 6-months to complete.

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