Update on Purchase of 440 N Kirkwood

  • Dr. Tom Ricks
  • Sep 30, 2010
  • Series: 440 N Kirkwood

The elders of Greentree Community Church are happy to report that t440 N Kirkwood - Tom R signsoday, Thursday, September 30, we successfully closed on the purchase of 440 North Kirkwood.  As we shift our focus to next steps in the ownership of this land, we ask that the congregation pray for God's wisdom in all decisions.  Our strongest desire is to follow his leading.

440 N Kirkwood - Tom W signs

 

Here are a few important details:

  • As of today, September 30, 2010, we have cash and pledges amounting to $600,000 which allowed us to meet our cash obligation of $515,000 at closing without spending our reserves.  This also provides us dedicated funds for any initial expenses related to the property.  Thank you to everyone who helped us take this first all-important step.
  • Tom Holley, Kevin Voss and Michael Denckhoff will continue to oversee our responsibilities as landlord and will ensure our interaction with the present tenant, The Alpine Shop, is handled in an appropriate manner.
  • In the next few months, every member of the congregation will be able to contribute in significant ways regarding the development of our long-term plans.  Keep an eye on the website and other weekly announcements about the opportunities you will have to participate in this grass-roots effort to cultivate GTCC's roots deep into our community.     

 

440 N Kirkwood updates
August 23, 2010

I am pleased to report that all due diligence has been completed on the 440 North Kirkwood property.  The last step in this process was the Phase II Environmental Study which was conducted over the last two weeks. This review was necessary because there was a gas station on the site several decades ago.

We just received word from SCI engineering that the final report will be sent to us on Wednesday of this week. The report will state that there are no environmental concerns on the property.  This means all contingencies have been met and we will continue to move forward toward the closing and the purchase of the property. 

We continue to trust God’s direction in this process and will keep everyone updated as we move along!     

July 28, 2010

After soliciting and studying several financing proposals, the Greentree Session has chosen Montgomery Bank as its banking partner for the purchase of the property at 440 N. Kirkwood.  Montgomery Bank has agreed to lend us up to $2,060,000 to finance the purchase of the property, assuming the appraised value of the property is at least as much as the purchase price.

We have the option to choose a fixed three year interest rate, a fixed five year interest rate, or a five year floating interest rate.  Our monthly payments under these options range from $13,000 to $14,600, at the current interest rates, and depending on the rate option we choose.  The balance of the loan will be due at the end of either 3 years or 5 years, depending on the rate option we choose.  We hope to have a successful Capital Campaign, and be in a position by then to have paid off most, if not all, of the mortgage loan.  If not, we will have to negotiate a new rate structure for the balance of the loan.  There is no prepayment penalty, so we have the chance to save hundreds of thousands of dollars by paying this mortgage as quickly as possible.

Montgomery Bank has also provided us an outline for financing the renovation of the property when it comes time to finalize those plans.  We feel strongly that Montgomery Bank will be ready to finance the renovation if we have established a successful banking partnership for the purchase of the property.

The Session will work with Montgomery Bank as the closing nears to evaluate our best rate and repayment options.  We give God thanks and praise for bringing us this banking partner as we take more steps toward purchasing the property at 440 N. Kirkwood and putting it to use to build God’s kingdom.

Tuesday, July 6, 2010

Our due diligence is progressing nicely with no surprises to date. There have been a few developments that the session believes are important enough to bring to the congregation.  With this in mind I am calling a Congregational Meeting for Sunday, July 25 immediately following the 9:00 AM service.  We believe we can cover all of the business in 15-25 minutes.  Please mark your calendars and plan to attend.  The elders are also encouraging the congregation to continue in prayer about this opportunity!

Monday, June 28, 2010

We are in the “Due Diligence” phase of the project.  Here are the latest action packed, heart-stopping, exhilarating facts for your enjoyment! 

  1. The roof and parking lot have already been inspected and the results are on file at the church office.  No major structural damage.
  2. The title report and execution are in and look good having been reviewed by our council.
  3. Upon approval of council the title report and execution will be delivered to the surveyor to provide an ALTA-1 survey.  We are allowing 10 business days for this report.
  4. We have ordered a phase 1 environmental survey and the report will be processed in 15 business days. This study will include asbestos and lead paint studies. 
  5. Bob Seibel’s financing team is interviewing several banking proposals between now and June 30.
  6. Jim Schmidt is interviewing potential stewardship consultants and will bring two finalists to the elders for review on June 29th.

Your loving Pastor,   

Dr. Tom Ricks