Scope of Work: To purchase and renovate the First Baptist building in its entirety will cost $12 million. We have divided the project into 2 phases. Purchasing and completing Phase 1 will cost $8 million. As of December 1st, we have raised $6.25 million leaving 1.75 million remaining to raise to complete Phase 1.
Phase 1 of the renovation work will include necessary updates on utilities (electric, bathrooms, kitchen, HVAC), ADA compliant updates (sprinkler system, handicap accessibility, elevator installation), remodeling meeting spaces and some children’s spaces, making repairs to the roof and other exterior TLC needs, refreshing some of the interior (e.g. paint, carpet), and completing our sale agreement requirements with First Baptist in relocating them to the second floor large meeting area.
Phase 2 of the renovation will include a remodeling of the gym in the lower level of the church for future mercy ministries, coffee hour and additional large group gathering space, additional children’s classes being added or remodeled, sanctuary repairs, and additional utility upgrades for the sanctuary wing of the building. Cost for Phase 2 will be 4 million.
*On the advice of our facility management team, architect, project manager and construction manager, the elder board has decided to move some of what we originally determined to be phase 2 work into phase 1. This increases the cost of Phase 1 by $1 million and decreases the cost of phase 2 by $1 million. The bottom line remains the same. Please also note that we had a donor that pledged $1million as a match to the first $5 million raised. Their matching grant will get us to $6million once we raise the additional 1.75 needed.
Some of Our Contracted Organization:
Project Management - Binswanger
Architect Firm - Wullf Architects
Construction Management - Erickson and Sons
The Elder Board decided to move forward with the FTC project for four key reasons:
1. New Ministry Opportunities: we’ve been excited about this project from the outset because of the ministry opportunities that a remodeled facility presents, and to realize that vision, provided that we can do so in a financially responsible manner.
2. Fiscal Responsibility: We have been offered a construction financing loan from our denomination’s Church Grown Fund, a favorable lender affiliated with our denomination with an interest in our success. The loan gives us the flexibility to borrow only what we need on very favorable terms while continuing to pursue grant funding options and having conversations with key donors. Taking the construction loan allows us to lock in current rates in the construction market while giving us 2-3 years to pursue additional funding sources. Completion of the project would also give us access to rental income opportunities that we do not have presently.
3. Risks of Delaying: By moving forward now, we can lock in a “Guaranteed Maximum Price” from the contractor which means our costs are “capped” based on the current market. If we delay, we would lose the ability to complete Phase I at 2015 rates, and would be subject to prevailing rates at time when we ultimately moved forward. Based on conversations with individuals in our congregation who have participated in commercial constructions in the past, we believe that we could reasonably expected to spend $250,000 to $600,000 more in project cost by delaying a year. That added cost would have to be raised in addition to the current project budget. In the meantime, we are already incurring maintenance costs associated with an aging facility (e.g., boiler, roof, etc.), that we may not ultimately be able to recover when we proceed with renovations. We believe that moving forward at present is a prudent way to avoid these risks.
4. Project Momentum: The congregation of Liberti are excited about the project and have pledged $4.25 million to make it a reality, and we want to harness that excitement by moving forward. Most of those pledges will be given during the first year of the project, and we think that moving forward gives us a strong platform to have conversations about further giving with people in the congregations and with friends of Liberti. We also think that moving forward with Phase I while raising the money from Phase II will help us tell a compelling story from a grant-writing perspective, and will help generate interest from grant-funding organizations.
If you have any further questions about this process, please email Scott Jennings.