SACRED SPACES UPDATE

November 20, 2011

11/20/11 1

AGENDA / OVERVIEW

• Review of Sacred Spaces Task Force Findings– Three Facility Options– “Unified Modules”– Module pricing from Hollister Construction

• Implications from a financial standpoint• What about the “other” factors?• Next Steps - Getting to a decision

11/20/11 2

Role of Sacred Spaces Task Force

• 9 Member Team; Fall 2010 – Summer 2011• Impartial - No agenda – “Just the facts…”• Explore 3 options• Move from the 10,000 foot view to 1,000 feet

11/20/11 3

The Three Options

• Option 1 – “Stay and renovate”• Option 2 – “Buy raw land and build from scratch”• Option 3 – “Buy an existing building and

re-purpose for church use”

• For ease of comparison, SSTF developed specifications for “Unified Modules”

11/20/11 4

Unified Building Module Concept

As much as possible, provide “apples to apples” comparisons for each option. Key components:•The Sanctuary – seating for up to 450•The “church basement”, i.e., public gathering space and large kitchen facility•RE and Admin Building - ~10,000 s.f. total•Key Infrastructure -Lobby, restrooms, fire stairwells and elevators

11/20/11 5

Module 1SanctuarySecond Floor

Module 1SanctuaryFirst Floor

Module 2Fwp. HallBasement

Module 3Lobby, AccessToiletsThree Floors

Module 5RE, AdminTwo Floors

Module 4ParkingNot Shown

11/20/11 6

Unified Module PricingCost Estimating from Hollister Construction

Module Element Total Cost Price Per S.F.

1 Sanctuary $1,000,000 $170/sf

2 Public Gathering Space $425,000 $70/sf

3 Lobby, Bathrooms, Elevators $850,000 $140/sf

4 Parking, Lighting, Curbs, Drainage $500,000* 150 parking spaces

5 Religious Education + Admin. $1,100,000 $110/sf

Other costs (Professional fees, insurance, contingency)

$500,000 - 700,000

11/20/11 7* Could be larger/smaller

Gross Cost By OptionElement Cost Option 1

Stay/RenovateOption 2 –Raw Land

Option 3 -Buy/Renovate

Land + Site Improvements

Est. $1,100,000 No Yes Included

Renovate Existing Space

Depends $600,000* No Depends

Sanctuary $1,000,000 Yes Yes Depends

Public Space $450,000 Yes Yes Depends

Lobby $850,000 Yes Yes No

Parking $500,000* Yes Yes No

RE + Admin $1,100,000 $300,000 Yes Depends

Other Costs $5-700,000 Yes Yes Yes

Gross Cost $4.4 million $5.7 million $3.5 – 5 million

11/20/11 8* Could be larger/smaller

Total Net Cost By OptionElement Cost Option 1

Stay/RenovateOption 2 –Raw Land

Option 3 -Buy/Renovate

Gross Cost $4.4 million $5.7 million $3.5 – 5 million

Less: Sale of 21 Normandy Hts Rd.

<$2 million> No Yes Yes

Total Net Cost $4.4 million $3.7 million $1.5 – 3 million

11/20/11 9

Implications of Financial Information

Option 2 (Raw Land) cannot be phased and @ $3.7 million (net) is probably financially unfeasible.

Option 3 (Repurpose) most likely requires a 5 – 10 mile Relocation to capitalize on lower property values – see next slide.

Option 1 - the crucial repairs are so expensive that any expansion might need to be deferred for a significant period of time.

11/20/11 10

Cost of Option 3 is LOCATION Dependent – Compare the Following:

• 13 Emory Ave. – North-Western Randolph – 25,000 SF Office Building– Acquisition cost is $1.5 million– Total estimated gross cost is $3.25 million

• 300 Webro – Parsippany– 34,000 SF Warehouse Building– Acquisition cost is $3+ million– Total estimated gross cost is $4.5 million

11/20/11 11

Membership By Zip Code

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Relocation probably means North and West off the I-80 corridor

• Are there benefits to be gained?• What are the ‘costs’?• What do the demographics suggest?• Where is our membership located now?• Where will our future members come from?• How are drive times affected?

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A Final Decision is Highly Nuanced “What else would you need to have/consider in order to make an informed decision”?Total Cost Total Time Aesthetics of BuildingsGrounds Accessibility & Safety Ease of Funding “Flow” and layout of space Legal approvals Neighborhood resistanceTransactional complexity Availability of suitable property “Green”

Efficient energy use Cost of maintenance Incorporates “green” building features Contributes to landfill

Location Area demographics Overlap with SummitEffect on current membership drive times Good highway

access Visibility Access to public transportation Character of neighborhood

11/20/11 14

A Word about the Capital Campaign

• Regardless of the option we select, a capital campaign will be required

• “Best practices” = every ten years• We are about 20 years overdue!• The Board is beginning the investigative phase

now• Dovetail fund raising with facilities decision

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What’s Next• Sacred Conversations between now and April.

1. Team to assemble and explore factors with congregational input.

2. Expand analysis of Options 1 and 3 – timing, phasing.3. Team builds range of options based on all factors and potential

size range of Capital Campaign.

• Board to bring a vote before the congregation – Earliest in June, latest in October– Vote is to affirm direction and charter a financial feasibility

study for capital campaign. – Board will not be seeking spending authorization at this time.

1611/20/11

Our Legacy

• 50 years ago a small group made a brave decision to acquire a building

• Now is the time for us to make another brave decision about our future

• We will hold the Sacred Conversations• We will find the correct answer for our

community• 50 years from now, it will be your legacy

1711/20/11

Primary Factor Analysis Table (PFAT)

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PFAT, continued

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