Master Plan

Master Plan Phase I: Additional Parking Financing

The Building/Finance Subcommittee Plan
Master Plan Phase I: The Waldo Street Parking Project

The Building and Finance Subcommittee recommends a financing plan as detailed below to fund the construction of Phase I of the Master Plan. The approval is subject to the following conditions:

Approval by the Raleigh District Committee on Church and Location as required by the Discipline
Approval by Church Conference
Securing of adequate financing commitment from a commercial lending source with acceptable rate, collateral, curtailment, and maturity terms. The specifics of these terms will be developed over the pre-project period.
Securing acceptable cost bids and subsequent binding contracts from qualified contractors for the project at costs consistent with our preliminary budget with a reserve for contingencies. Such bids and contracts to have terms consistent with good construction management practices such as holdback reserves, penalties for delay, etc. The specifics of these terms will be developed over the pre-project period.
A preliminary underwriting by at least $50,000 in commitments of special gifts.

The project will be financed as follows:

The preliminary budget estimates are that the project will cost $800,000.
We will arrange construction financing approval for that amount plus 10% for a contingency and 6% for construction period interest. This commitment will guarantee us that we can build the project without delays and that we can receive best pricing because contractors will not be at risk for the timing of fund raising.
The construction financing will be backed by conversion to a longer period of financing at the completion of construction. The expected terms would be that we could carry the entire amount borrowed at interest only for a period of time. We will seek 5 years. The purpose of this feature is to protect the Church against any short term spikes or valleys in giving or if fund raising is not ratable but rather is in pulse of give and wait. The land itself is more than adequate collateral for the lending such that there will be no risk to the current Church facilities.
The loans will provide for a principle pay down at any time so that funds can be applied when any gifts are made.
The Finance Committee will work with the various Church communities to come up with ideas for gifting to the project.
We believe there are a number of people who want to contribute in advance.
We believe that we can make a voluntary request for gifts to the project. By spreading out the financing, members may spread their gifts thereby allowing more people to participate.
We believe there will be significant possibilities for memorial and honorarium gifts including naming opportunities. This process is expected to produce a significant portion of the ultimate costs.
We believe there are endowment opportunities with current members through the use of life insurance policies, etc.

With appropriate time to plan and implement the many ideas, we believe there will be better quality and fit to our fund raising so that members are not burdened and, indeed, feel they have opportunities to help.