Our Next Step
It’s go time!
We are now ready to move forward toward a shovel in the ground! On the weekend of June 16/17, and at a Congregational Voters’ Assembly Meeting at 7:00pm on Monday, June 18, we will vote on two important items:
- Approve moving forward into the Construction and Completion phase for the Center for Christian Education
- Approve a Financing Package which includes a permanent loan up to $3.8 million and a bridge loan up to $1.5 million. (The $3.8 million figure includes $2.1 million of new debt and $1.7 million refinancing of existing debt.)
- February 2016 - Congregation votes to move into Capital Campaign (81%)
- March 2017 - Capital Campaign completed
- April 2017 - Request for Proposal sent to three (3) design-build firms
- May 2017 - Korte Company and Arch Images selected as construction company & architect
- June 2017 - Congregation votes to move forward to Design phase (89%)
- January 2018 - Design completed
- February 2018 - City of Kirkwood final approval
- April 2018 - Final Construction Documents completed
- May 2018 - Final Guaranteed Maximum Price (GMP) delivered on budget
- June 2018 - Congregation Votes to move to Construction phase and approve Financing Package
- July 2018 - Construction begins
- June 2019 - Construction completed
- July 2019 - Move into Center for Christian Education
As we now have a final price from Korte Company, Concordia’s construction firm, we can finalize our budget and financing needs:
Project Total Budget
- Campaign Costs - $345,671 (paid, approved Dec. 2015)
- Design/Preconstruction/Soil Testing - $423,100 (paid, approved Jun. 2017)
- Construction Costs - $6,631,506
- Technology, Furniture Fixtures & Equipment - $490,000
- Loan Interest (during construction) - $85,000
- Insurance/Legal/Signage/Reimbursables/Utility - $185,000
- Contingency - $839,723 (10.3%)
- Total Project Budget - $9,000,000
- Total Project Budget - $9,000,000
- Amount Given to Date (5/15/18) - $(4,266,000)
- Expected Remaining Contributions (1) - $(2,685,000)
- Debt Needed for Our Next Step - $2,049,000
- Current Debt Refinanced (2) - $1,676,000
- Total Long-Term Debt Needed - $3,725,000
Loan Funding Needed
- Bridge Loan (during construction) (3) - $1,600,000
- Long-Term Loan - $3,725,000
(1) Assumes 75% of outstanding pledges are received.
(2) $1.4 million from 2002 Concordia Center & $276,000 from 2012 Clay Avenue homes purchase.
(3) Paid off as pledges are received. Short-term loan for when bills come in faster than pledge fulfillment.
We are comfortable based on forecasting models that Concordia can handle a debt load of $3.7 million without sacrificing current ministry. To give you some perspective, in 2002, our total debt was $3.2 million after the Concordia Center build when our overall budget was significantly less than it is today.
While the overall project budget is $9,000,000, we have a 10.3% contingency built in of $839,723. We do not intend to spend that entire amount. Contingencies are typical for projects in the event unforeseen circumstances occur. Our hope is that the final project comes in closer to $8.5 million.
Finally, any future capital campaign will include a stipulation that, at least, the first million dollars raised will be put toward debt reduction, further minimizing the debt load to the congregation.
These are exciting times for Concordia. Visioning for this actually began as far back as 2012. I understand this process has been long and that digesting all the numbers and communication can get complex. Please reach out to Kristin Anderson, 314-822-7772 x130, at any time for further clarification, discussion or suggestions. We are so eager to see what God has in store for our ministry!