What advantages does the proposed site at 569 Irish Lane in Winterville offer?
1. Great location with high visibility on a heavily traveled road between Winterville and Greenville.
2. Beautiful 5-acre site with lots of land for future growth – could meet the church’s needs for a long time including room to add a 7,500 to 10,000 square foot auditorium in the future.
3. By purchasing the property, we would begin to build equity in our own building versus paying rent to a third-party landlord.
4. We would have full access to the entire building at all times – allowing us to use the building more effectively as a tool to mature and multiply disciples and serve the community.
5. Location convenient and accessible for most of Integrity’s members and regular attendees.
6. Located in a very high growth area – makes the church accessible to lots of new members, especially families.
What are the estimated costs associated with this property?
Purchase price $830,000
Renovation costs 1,110,000
Construction interest/miscellaneous 40,000
How do we intend to fund the project?
Capital campaign $800,000
Settlement with JPII 65,000
Bank mortgage 1,125,000
Private loan 110,000
What will be included in the renovation?
What is our estimated monthly occupancy cost in the new facility?
The monthly payment on a 20-year mortgage for $1,125,000 at the contracted interest rate of 4.84% will be $7,303. Adding insurance, utilities and maintenance would likely bring the occupancy cost to $9,400 per month. Our monthly occupancy cost in our current co-tenancy with JPII, where we have access to the sanctuary and fellowship hall on Sunday’s only, is $3,750. The incremental monthly occupancy cost is only $5,650. In addition to this increased occupancy costs, we will have to repay the private loan of $110,000. We believe we can add this $110,000 loan to our bank mortgage beginning in year 3 and that will increase the mortgage payment by $775 per month.
Can we find another location in the area to rent so we don’t have to buy?
The elders spent several months looking at prospective facilities in the area. They could not find any suitable sites, with adequate parking, to rent on a long-term basis. Also, the cost to rent appropriate space as a single tenant would be about $12 per year per square foot. For 13,000 square feet, that would represent total occupancy costs of about $14,000 per month including utilities, assuming we could find something to rent.
How much will the church need to grow to pay for the incremental monthly occupancy costs?
Assuming the average family gives $5,000 per year, we will need to add approximately 15 families to cover our incremental costs. As many as five of those families have already started coming to Integrity over the last nine months so we need to add another 10 families. Over the life of Integrity, the faithful preaching of God’s Word has resulted in an average annual increase in membership of approximately 8%. The elders are optimistic that the church will grow much more than needed to support the increased occupancy costs given the historical trends, the increased visibility of the proposed location, and the advantages of owning and operating our own facility seven days a week.
How can you help?
The first thing you can do is make a 3-year commitment to the Gospel Legacy Campaign - if you haven’t done so already. Remember that the 3-year payment period runs from 2018 – 2020. Second, you need to pay your pledge on a timely basis. Paying your pledge on schedule, and especially paying it early if possible, will help us save interest during the construction period. Third, we need you to pray for the church, its elders, the new facility, and the campaign. Finally, we will likely have some volunteer opportunities for painting and landscaping as the construction nears completion.