October 16 Building Update 063
Wanted to jump on today and share with you some thoughts and progress on the building project as we enter into the Pre-construction Phase. It has been two long years of planning, laying the groundwork and overcoming obstacles to get to this point in the process, but we’re there!
The goal of creating a permanent home base for Ashley Ridge Church doesn’t seem quite as far off as it once did. This is all due to the following progress:
- We received the boundary survey from Lennar (Praise the Lord) on Monday, and it depicts the new 12 acre building site (left property line contiguous to ARHS with front property line approximately 560 feet off Highway 165).
- Our attorney, Catherine LaFond, has completed her review of the Real Property Swap Agreement, and we’re putting the final touches on the contract before it is signed and ratified.
- The Business Line of Credit (LOC) has been activated and is ready for use when required. Groundwork has also been laid for the construction loan next year with several local financial institutions. The bank that will provide the loan is still TBD.
- Matt Halter, our in-house civil engineer, is completing the topographical & tree survey on the new site and should be done by the end of next week (Oct. 25th).
- Equip Studio is in the process of updating the design for Phase 1 & Master Plan build-out on the new site which will allow Cypress Engineering to move forward with the Schematic Design (SD) once the property has been closed.
NOTE: The above is not an all inclusive list as there are many more important actions items that have been completed or are in the process of being completed.
The biggest challenges I see at this time have to do with the financing & budgeting items below:
- In order to qualify for a construction loan in the amount required to start building the new AR facility in 2022, three important actions need to happen: a) Have total contributions this year meet or exceed those of 2020 in order to make comp and qualify for the construction loan in the amount needed. b) Raise a minimum of $100K for Pre-construction expenses to move forward with the building project until such time as the construction loan becomes available. c) Conduct a successful capital campaign in the spring of 2022 where pledges and future contributions can be leveraged for bank approval of the construction loan and subsequent permanent financing.
NOTE: While the Business LOC is available for use and will allow the project to move forward at a faster pace, it will also need to be kept paid-down and available for future Pre-construction expenses such as the building plans and documents produced by Equip Studio starting early next year.
- The project design & budget needs to be compatible with available project financing.The project budget has been greatly impacted by the COVID-19 pandemic and inflationary costs of building material and labor. The building design and cost must therefore not exceed what AR can finance by a financial institution and raise internally through various fundraising means.
Summary. The building project has come a long way, and we’re starting to see some light at the end of the tunnel. That being said, there is still important work remaining to be done, and it will require the total dedication and commitment of the church staff, leadership and congregation pulling together to accomplish.
We are currently having a Pre-construction expense fundraising “push” as part of the “SOME ASSEMBLE REQUIRED” message series which will go through November 7th. The goal is to raise $100K for the Building Fund to complete the civil engineering schematic design (SD) on the new building site along with other Pre-construction work. This will expedite the project moving forward in 2022.
“All the way to $100K!!!
If you would like to make a contribution to the Building Fund for Pre-construction expenses, you can do so here.
Derrick Horres, AR Building Project Leader