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How
To Plan Your Project |
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Are your Church facilities at full capacity? Are you experiencing
challenges which come with growth? If so, your Church may be faced
with a major building expansion or relocation in the near future.
Founded in 1989, Great Nation Investment Corporation has successfully
underwritten financing for over 350 Churches nation wide. Martin
Northern will consult with your Church to plan your project in
areas such as construction loans, as well as permanent financing
alternatives for new construction, real estate acquisition, renovation,
remodeling, and refinancing or consolidating existing debt. We
can provide a complete range of financing options, which are specifically
designed with your Church in mind.
You certainly want to make certain that each aspect of the project
is based on thorough decisions when your Church faces an important
and difficult task of beginning a building or relocation project.
Costly time delays as a result of improper planning can cause major
disappointments for your congregation and Church leadership. Therefore,
Church leadership should carry out three important aspects in planning
any major building or relocation project:
Long-term strategic planning
The first and most important phase of any project is long-term
strategic planning. Church leadership, assisted by a team of outside
professionals, should determine current facility requirements,
as well as long-term needs. A complete determination of facility
requirements will make a major difference in how your Church utilizes
its existing site, or how you would proceed in selecting property
for relocation. This determination will ultimately affect how the
project is funded over a longer period of time.
Questions to ask during long-term planning:
- What are the limitations of the Church's existing facility?
- Will the existing facility meet long-term needs?
- How will parking
be affected by expansion?
- If the Church were to relocate, can
you find a visible and accessible site?
- If you relocate, will
the new site be free of environmental problems?
- Would relocation
affect the Church's demographics?
- Would relocation be welcomed
by the surrounding neighborhood?
- How will the project be funded?
Beginning the project too soon due to overcrowding or pressure
from Church leadership can be counterproductive over the long term.
Therefore, all options should be thoroughly analyzed. This initial
phase can present your Church with its greatest challenges and
obstacles. Even though it may be a lengthy process, once you have
completed the long-term strategic planning phase, your Church will
have a clearer picture of where you are going and how you are going
to get there.
Establish a budget
The second and equally important phase of this process involves
establishing a budget. It is important to know what the Church
can afford to spend. It is not uncommon for a Church leadership
to engage an architect to begin the design process before consulting
a lender in order to determine a budget for the project. A lender
can provide important information about affordable financing options,
which may avoid costly delays and disappointments.
When working with a prospective lender, take the time to compile
a complete information package about the Church and the project.
The package should include the Church's last three years, and year-to-date
financial statements, last three years of attendance records, a
brief history of the Church and information about the Senior Pastor
and Church leadership, as well as a description of the building
project. This information will allow the lender to analyze in detail
certain factors as the Church's asset base, cash position, historical
cash flow and current borrowing capacity. If the project is scheduled
for up to two years in the future, ask the lender to establish
a potential borrowing capacity by using the historical financial
date provided. Great Nation provides this financial analysis to
the Churches that we work with, and will help set the foundation
for not only months but also years to come. We have found that
this information can be provided to other outside professionals,
such as architects and builders, so they can begin the process
and clearly understand the limits of the project budget. Since
the Church has grown on the strength of its program and ministry,
overextending the Church financially could have a dramatic impact
on its operations by causing cutbacks to programs and ministries.
If the sale of an existing facility is required, factor into the
budget a realistic timetable and sales price. Since Church property
is not always easily saleable, it is important to establish a project
budget early and to stay with it.
Assemble a project team
The third phase of the planning process is to assemble a project
team. Put the project team together at the beginning of the project.
Select someone from the Church to head up the project team and
delegate as much authority to that person as possible. In order
to keep the project moving, this person must not only be given
the responsibility for the day-to-day decisions of the project,
but also be given the authority to make those decisions without
Board or congregational approval. Include on the project team other
Church staff members who communicate well and are team players.
A common mistake some Churches make is to rely entirely on volunteers,
or non-staff to head the project team or to play an active role.
Once a project is announced, often a Church member with expertise
or contacts in a specific area will volunteer to help. On the other
hand, without a committed, full-time person dedicated to accomplish
specific tasks, major items may be overlooked. A volunteer Church
member may not give the attention to specific details of the project
as would a full-time staff member.
Once an in-house project team has been chosen, begin to select
the outside professionals. Now is the time to hire an architect.
If you are relocating, hire a consultant with expertise in land
development, and the permitting process with the city and/or county
real estate office. You will also need the services of an attorney,
auditor, environmental experts as well as other professions. Select
outside professionals who are not only experts in their field,
but are also team players and who come highly recommended.
Planning a building project involves a lot of time and effort.
It is critical that the staff person selected to oversee the project
team surround themselves with professionals who are committed to
work as a team. Proper planning, communication and commitment from
all concerned will help the Church deal with the challenges ahead.
We at Great Nation realize that each Church congregation, while
having a common need for funding, have unique needs which are specific
to reaching its goals. We can provide the resources that your Church
requires, while keeping in mind the individual needs of your congregation.
Get
Started Now!
If you have questions at any time, please don't
hesitate to contact us at:
GREAT NATION INVESTMENT
CORPORATION
Attn: Martin Northern Vice President and
Branch Manager
P. O. Box 1302
Benton, AR 72018-1302
Phone: (501) 316-3100 * (800) 468-3007
Fax: (501) 316-3110
Email: martin@martinnorthern.com
Great Nation is right for you! Our
professionals are standing by ready to serve. Meanwhile, we look
forward to becoming your financial partner in growing God's Kingdom…one
Church at a time…
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