August 10 Building Update 058
We are starting to get down to the “nitty-gritty,” and if you are like me, you are getting a little anxious to start seeing the fruits of all our efforts!
While we have had many successes to date i.e. Paying-off the 10 acres of land on Summers Drive, Establishing a Reserve Fund, Concept & Design (EquipLABS), REAL PROPERTY SWAP AGREEMENT (draft), etc., we are still a little ways out from seeing the completed new facility. SO, I thought it would be a good time to give you a deep dive “Project Report” on the following: 1) new tentative Project Timeline for Phase 1 Construction 2) Revised Project Financing Plan as it currently stands 3) Swap Agreement and 4) Summer Giving
- Project Timeline.
DATE TASK REMARKS
07/25/2021 Request for Proposal (RFP) Issued RFPs sent to local banks
08/15/2021 Deadline for Proposal Submission RFP responses due back
08/20/2021 Selection of Financial Institution Business LOC
09/01/2021 Business Line of Credit (Activated)
09/15/2021 Civil Engineering SD* & Permitting Cypress Engineering, LLC
01/01/2022 Architectural SD* & Building Plans Equip Studio
01/15/2022 Selection of Financial Institution Construction & Term Loan
03/01/2022 Construction Loan (Activated)
04/01/2022 Land Preparation Begins Trident Construction GC
06/01/2022 Vertical Construction Begins Trident Construction GC
TBD Vertical Construction Ends Certificate of Occupancy
TBD Building Project Complete!!! Move-in & First Service
*Civil Engineering and Architectural Schematic Design (SD)
- Project Financing Plan. The project will be financed by external and internal means (external by a bank or other lending institution and internal through various church fundraising efforts). While the bulk of the construction costs will be financed by the Construction Loan, Ashley Ridge will need to make-up the difference between what the project costs and what can be financed through a bank.
- External Financing – From the above timeline, you can see Request for Proposals (RFPs) have gone out to local banks. Church leadership has already met with three banks and initial reports are very positive. After we have met with all interested banks, one will be chosen to provide the financial products below:
- Business Line of Credit (LOC) – $300K
- Construction Loan – Amount TBD
- Permanent Financing (Term Loan) – Amount TBD
Internal Financing – Any shortfall in financing the overall cost of the project will be made-up using three key internal fundraising elements:
- Savings in Operating Budget by reduced Expenses
- Margin created from General Fund contributions over $50K per month
- Contributions made directly to the Building Fund
- Swap Agreement. Troy Powell continues to “iron out” details of the REAL PROPERTY SWAP AGREEMENT with Lennar representatives. We are also waiting patiently for the survey Lennar ordered last month to be completed on the new site next to ARHS. A ratified swap agreement and survey are necessary to start the due diligence process on the new site. Stay tuned for more swap details!
4. Summer Giving. In BU 057, I talked about the dip in giving we experienced during the month of June, which came in at $41,733.24, and asked for an extra gift in July or August to get us back on track. I am happy to report, we did see a nice bump at the end of July with the month coming in at $46,294.51. While this is still below the budgeted $50K per month, it was a big improvement, so thank you so much for your continued support!!!
Now that we are into August, I believe we will see a Surge in giving, providing the momentum we need going into the Fall Kick-off. The goal* this fall is to keep the LOC paid-down and available for future building expenses. More to come from Pastor Jenn!!!
*Keeping the Business LOC paid-down will allow the building project to move forward without pause until such time as the Construction Loan is activated.
If you would like to make a contribution to the Building, you can do so here.
Derrick Horres, AR Building Project Leader