Financing Plan for the Purchase and Institution of a new Academy Building and Lutheran Ministry Center There will be three sources of funds to both purchase the building and safeguard the operations of the new property if funding falls short. These loan monies are based on the commercial value of the property ($150,000)
Cash Raised (Peace Funds and Donations)
Normal Mortgage
These Monies cover the Purchase and Renovation Costs - to total @$125,000
THIS SHEET IS A FOLLOW-UP TO THE PROPOSAL SHARED AT THE CONGREGATIONAL MEETING JANUARY 18, 2015. There were basically two issues that the congregation felt needed to be cleared up: 1. City Code issues. On Sunday we had not had conclusive word yet from the city whether we could occupy the building and operate a school without bringing it completely up to code. The answer has come back that, in fact, we are absolutely able to do this. We will make everything as safe as we possibly can, and we hope that someday we can install and elevator and sprinkler system. But presently we do not have to deal with the elevator and sprinkler. The city will be inspecting the building this Friday for any general safety issues that we will need to address in order to obtain an occupancy license. We do not believe this will present any problems for us, and we will on Sunday have the complete list of everything the city will require of us to move in. 2. Financing Issues. The congregation wants the Academy to have this building (and all the other opportunities it gives us) however there were serious questions about maintaining the income necessary to operate the building without impacting the general funds of Peace. The above financing plan we hope will help alleviate any concerns therein. The financial counselor will be meeting with us on Thursday to work out the specifics of this all. They will be presented by email asap, and also at the meeting.
Specially designed “line of credit” to be used as reserve fund. This “line of credit” ($75,000?) will be available as we need for any operational shortfalls we experience. This will eliminate any need to draw on Peace operational funds if things don’t work out any particular month or year. In this plan, when there is only $25,000 left to borrow, it triggers the process to sell the property. Those last $25,000 will be used to wrap up operations and finance the sale.
MAY THE LORD GIVE US ALL WISDOM TO KNOW WHAT IS BEST IN THE SERVICE OF HIS KINGDOM. President Chad Tyk will conduct the vote and he is hoping everyone present will agree that a 2/3rd majority will be the requirement for passage (and not just a simple majority). As well, please note that ballots are being prepared, as this vote will not be “by raise of hand”.