Since 1978
Since 1978
1. WHERE WE ARE
2. WHERE WE’RE GOING
3. HOW WE’RE GETTING THERE
Since 1978
1. WHERE WE ARE
2. WHERE WE’RE GOING
3. HOW WE’RE GETTING THERE
Proposed Purchase of Current Building:
Why now?
• Owner actively marketing the property for sale and has attracted
offers from several interested potential buyers
– Owner interested in having the church to buy the building even if at
lower price than other offers
• Good time to buy
– Low interest rates and property values
– Both likely to increase in coming years
• Provides a permanent home for the church
–
–
–
–
Current lease expires in two years
New owners likely to raise rent or seek other tenants when lease expires
No moving expenses
No tenant improvements anticipated upon purchase by church
• Unexpected 1:1 matching gift of up to $500,000 from anonymous
donor to assist in purchase of current building
– Allows church to leverage additional gifts and contributions
Proposed Purchase of Current Building
What will it cost?
• Purchase price = $2.5 million (agreed)
– List price = $2.9 million
– Leaders believe this is a fair price based on pricing of
comparable buildings
• Mortgage = $1.5 million (needs to be obtained)
– Leaders in process of determining loan availability and
terms with several banks
• Contributions = $1 million (needs to be raised)
Proposed Purchase of Current Building
What is the financial impact?
• Current monthly building payments
– Monthly rent payment
– Proportional share of utilities/other building expenses
(approximately)
= $9,850
= $2,000
• Changes in monthly cash flow over first three years:
– Estimated monthly mortgage payments
= $8,050
• Estimate based on $1.5 million 30 year fixed loan, at 5% interest
• Loan availability and terms are being discussed with banks so
this estimated monthly mortgage payment could change
– Owner lease back rental income to church
= $4,250
• Owner has agreed to a 3 year lease on currently occupied
premises as a condition of sale (4250 sq. ft.)
– Proportional share of utilities/other building expenses
– Additional monthly ownership expenses
= Same
= TBD
• Includes some taxes, increased utility and building expenses
not included in owner lease. Actual amount being determined.
• Current assumption: Church should save $2,500-3,000 per month
during this 3yr lease period
Proposed Purchase of Current Building
What is the financial impact?
• After three years, owner lease agreement expires,
– Rental income will stop and church will responsible for all building
expenses
• Church will have two alternatives at that time:
– Expand into the remaining space
• Will depend on the financial ability of the church to absorb the loss of rental income
and additional building ownership expenses included in lease
• This will require an offsetting increase in church revenues through increased giving,
congregational growth, or both
– Seek a new renter for remaining space or extend owner lease back
agreement
• Continue receiving the estimated monthly cash flow savings
• Ability to rent this space is uncertain and will depend on economic and rental market
conditions at the time
Proposed Purchase of Current Building
What is needed?
• Commitments for $500,000 in new contributions are
needed within the next 90 days
– To be matched 1:1 by the anonymous gift to get to $1 million
required to complete the purchase
• Current church building fund ≈ $200,000
– To remain intact and available for future needs of the building
and property after the purchase
Since 1978
1. WHERE WE ARE
2. WHERE WE’RE GOING
3. HOW WE’RE GETTING THERE
MISSIONS
YOUTH
GENERATIONS
GOD’S LEADING
Therefore Go…
Matthew 28:19
International Ministry Partners
• Boy with a Ball
– The Johnson family
• Gospel Relief Missions
– The Northrup family
• CSM
– The Simpson family
• International Outreach Ministries
– The Coll and McCarty families
International Ministry Partners
• Campus Crusade for Christ
– The Schenkel family
• North India Ministries
– The Ibrahim family
• Kenya Ministry Training Institute
– The Curtis family
• El Reino de los Niños
– The Shockey family
International Ministry Partners
• What more could we do with less monthly overhead?
MISSIONS
YOUTH
GENERATIONS
GOD’S LEADING
“To SERVE the
Emerging Generation”
“To SERVE the
Emerging Generation”
• Sunday School
• VBS
VBS 2005
VBS 2012
“To SERVE the
Emerging Generation”
• Sunday School
• VBS
• Jr. High & High School
• YOUTH GROUP!
Owning this building:
• Several options to reconfigure
classrooms for all age groups.
• Permanent home for VBS.
• Outside Area!
“To SERVE the
Emerging Generation”
THIS is for THEM!
MISSIONS
YOUTH
GENERATIONS
GOD’S LEADING
One plants, another waters, but God gives the increase
GENERATIONS
WORSHIP
COVENANT
MISSIONS
YOUTH
GENERATIONS
GOD’S LEADING
Unless the LORD
builds the house,
its builders labor
in vain. Psalm 127:1
• Our History, Our Mission, Our Church
• The Lord Leads and the Devil Pushes – Psalm 1:6
• We have been led into this Purchase Opportunity
Our History
• Saddleback Covenant Church was
founded in 1978 with the expressed
purpose of gathering people and
resources to establish a local church
and provide a platform to extend the
kingdom of God.
This Building helps facilitate our Mission
• The mission of Saddleback Covenant Church is to
SERVE the emerging generation by SHARING the
victorious message of God’s love,
DEMONSTRATING His power, and MODELING His
care. To be a people GROWING in Christ,
EFFECTIVE in service, and COMMITTED to Biblical
principles & values. To focus on
STRENGTHENING family life & relationships,
BUILDING young people, and PROVIDING
individuals with TRAINING & EQUIPPING to carry
their ministry into the Community, State, Nation
and World.
Our Building
• This building is about extending the Kingdom of God
not about increasing the population of the church
• This building is meant to serve the body not to be a
burden.
• Combination of Leadership, Membership, Economy,
Energy, Interest Rates, Prayer, Unity, Vision, Matching
Fund, History of the Building and Room for growth
Since 1978
1. WHERE WE ARE
2. WHERE WE’RE GOING
3. HOW WE’RE GETTING THERE
How Are WE Going To Get There
Don’t allow this decision to become a burden.
I would venture to guess that not many of us are
sitting on a surplus of wealth and treasures that we
just don’t know what to do with.
If God doesn’t put an amount on your heart today be at
peace with that.
We would suggest that you open your heart and your mind
and listen to see where God is directing you.
How Are WE Going To Get There
No one will be judged on how much you give.
Just know that every dollar you give is doubled.
This opportunity will serve to bring us closer
together as a church family.
How Are WE Going To Get There
How Are WE Going To Get There
One of my favorite lessons from Pastor Kevin’s is
“what ever happens don’t take your ball and go home”
Raised To Date: $11
UPDATED WEEKLY
Since 1978