October 16 Building Update 028
As the Project Leader, it seems I spend most of my time either promoting fundraising in some fashion or executing difference aspects of the financing plan. I believe this is because the building project is as much about how to pay for it as actual construction.
We were able to assemble a quality team of key players in an amazingly short period of time! Equip Studio, Trident Construction, Cypress Engineering are all ready to go to work as soon as funds are available.
We have been moving the ball down the field using cost savings and margin in the Operating Account. We cannot continue to do this forever, but it is advantageous to do so as long as we can. This strategy has got us to where we are now ready for the initial civil engineering work and geotec soil borings to begin.
Our plan is to NOT seek bank financing until early next year. This is for several reasons: 1) allow sufficient time to pay-off the remaining land loan balance, 2) establish a reserve fund, 3) generate sufficient working capital for pre-construction expenses, 4) not have to pay interest on a construction loan until it was absolutely necessary, and 5) raise as much internally as we can to reduce the amount required for bank financing and debt service.
The pandemic greatly affected our ability to generate the necessary capital in the timeframe originally thought. So, we have had to stretch the Building Surge and make other necessary changes to the plan.
The current hurdle for Ashley Ridge Church is to raise the required funds to pay-off the remaining 125K balance on the land. This will keep the ball moving forward until early next year and answer the remaining unknowns on land preparation requirements and costs.
We have seen things continually made possible during this project which would have seemed impossible! I believe the following verse from the Book of Mark says it all: “Jesus looked at them and said, “With man it is impossible, but not with God. For all things are possible with God.”– Mark 10:27
If you would like to make a contribution to the General Fund or Building Surge, you can do so here.
Derrick Horres, Project Leader