Building FAQ: Part 3 of 3

 In Featured, Land & Building

We’ve been collecting questions over the past several weeks in regards to the Land & Building process and will be answering them in a series of three posts. We are wrapping up our series with questions about financing.

Before moving forward, will there be an announcement defining what has been pledged to the One Church capital campaign and how much debt will be necessary to complete the project? How much debt will we take on and how will it be paid off? Lay out the plan on how the financial plans will work – like we saw at the early meetings; we also want to see more specific plans before we make a commitment.
Yes there will be an announcement of pledges, and ongoing communications about our finances. The Board of Directors will need to give approval at various stages of the project. There will be an announcement of what has been pledged by the end of May. We will have more firm construction numbers in July, which will allow us to make good financial decisions about how much of the project may be accomplished right away. We have capacity for approximately $3.5-$4M in long term debt, without impacting resources for ministry. This capacity would cover both principal and interest payments, so that there is a plan in place to repay that debt. Some debt may be covered by lease of the Christian Life Center building, or the sale of that building may pay off some additional debt. The balance of the construction approved would be covered by capital campaign contributions. The Board is committed to not taking on more debt than can be responsibly handled.

What will really determine the correct size of the facility?
Our architects will work closely with ministry leaders to identify the space needed for ministry today, with flexibility for the future, and how efficiencies may be found through sharing of space. There are many space efficiencies from simply being in a single facility.

Will the design of the new building happen concurrently with fundraising or after?
The design work is going on right now. We anticipate this phase of design development to be completed in July. At that point we will know what commitments have been made for the capital campaign and the Board of Directors can make decisions on how much of the project can be undertaken at this time. Once this is approved, the architects will begin working on construction documents.

How many giving units could possibly participate in the capital campaign?
We have over 1,500 households with recordable contributions. We will be encouraging families without a giving record to step into generosity with the opportunity to support such a tangible project. In addition, there are hundreds of families who have a connection to Prince of Peace but are not active members of the church at this time who will be invited to participate. This includes Mission Outpost volunteers and CDLC families who are not otherwise connected to Prince of Peace, and people who have been active members who have moved, but still have a heart for the ministry here. This project will be so transformative for our congregation that support may go much wider than a typical capital campaign.

What does the Board of Directors think we need to raise to make this project a success?
Ideally we’d raise enough in this three-year capital campaign that we could complete all of the work in a single phase. That would allow us to transition more quickly into one building, and could save over $1M in inflationary construction costs. This project, though, would be a success even if completed in two or more phases. The construction project will not only move all ministries under one roof, but will upgrade the current Worship Center building to greatly extend the life of the structure and replace all of the mechanical systems. It will enhance our Mission Outpost and create a welcome gathering space and clear front door. This is work that needs to be done, whether done all at one time, or taken on as we can responsibly afford to do so.

What are the key dates throughout the capital campaign? Are there deadlines for the committed costs?
We are committed only for architect/consultant fees for schematic design and design development work, which should be completed in July. The One Church capital campaign has already launched with communication pieces and extensive groups of volunteers. Commitments will be brought to worship the weekend of May 6-7 and announced May 20-21 with the first offering also being received at that time. This provides plenty of time to evaluate our financial resources before committing to the extent of construction at this time.

Can money donated to the Foundation be used for construction fundraising to allow corporate giving benefit?
Corporations that need to distribute funding to a non-profit that is not a church may deposit those funds in Foundation B, which is a separate federal tax ID number from Prince of Peace. However, it needs to be clear to them that funding will be used to support ministry of Prince of Peace.

Will Prince of Peace need to have all the funds for the total project cost committed by donors and lenders before construction can begin?
We will need to have all of the financing finalized prior to any construction, whether this project is done as a single phase or multiple phases. We will understand the total level of commitments prior to construction decisions being made. We are already working with lenders on construction and permanent financing and know that we are in a financial position to get favorable terms and have the capacity to borrow all that we’ll need.

How much do we need to raise up front to start the project?
Actually, it’s the reverse that we need to consider. The amount raised up front, plus the debt capacity we have in our operating budget will determine how much of the project is started. The more that we are able to raise the more of the project we will be able to tackle in a first or single phase.

What happens if we don’t get the appropriate commitments?
We still have several million dollars in capital upgrades that need to be done in the Worship Center, whether capital campaign dollars are committed or not. The Worship Center needs roof replacement, all HVAC systems replaced, and window, door and stucco repair. The parking lot and lot lights need to be replaced. This capital campaign not only would support the transformation of our space and bring ministries under one roof, it would also provide for upgrades of what we currently have to be best stewards of the resources that prior generations invested in for us.

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