Wednesday, June 27, 2012
Along with a few pictures of the continuing progress on the renovation project, here are some FAQs from the Chapel Renovation Task Force. We're still accepting pledges to make this New Beginning a reality for our congregation and community!
What is the overall budget for the project and why is it different from our original goal of $1,000,000?
The committee worked with the design team and developed a high-level cost estimate to define the $1,000,000 capital campaign target early in the process. As more time was spent in refining the project and fully exploring the existing conditions and required upgrades, the cost of the project increased. The committee value-engineered or eliminated numerous “nice to have” aspects from the project, but the final bids still exceeded cost estimates we received. Here are some further insights on major cost drivers:
Construction bids were $120,000 higher than expected primarily due to infrastructure upgrades such as electrical, fire protection sprinkler system (mandated by the fire marshal) and mechanical systems
Incremental requirement for a water line to service the sprinkler system of $60,000
Additional upgrades to electrical service provided to the building of $8,000
Asbestos abatement costs of $14,000
Incorporating these changes, we now expect the total project to be approximately $1.3 million. We are proactively working with the General Contractor to identify areas to reduce the budget without impacting the overall design and substance of the project. Considering the age and condition of the existing building, we are maintaining a contingency buffer to ensure we will complete the project within the $1.3 million budget.
Since the project will cost more than our campaign goal of $1,000,000, what will be the sources of additional funds?
Funding comes from either donations (pledged and unpledged) or a bank loan. To date, we have received $1,065,066 in pledges and unpledged contributions. The difference of the total project cost and the amount donated will be added to the church’s mortgage when it is renewed.
Based on donations received to date, we expect the maximum amount we will have to borrow temporarily to be $800,000, although we have approval from the bank to borrow $950,000. At the end of our campaign in 2015, we currently expect to have approximately $200,000 in borrowing remaining, which will be added to our mortgage.
How do I pay my pledge and will separate statements be sent for the Capital Campaign?
Separate statements will not be sent but, chapel pledges will be noted and tracked on your regular giving statements. When making a pledge payment, please note amounts designated toward your chapel pledge.
How long do I have to pay the amount pledged?
Members have been asked to complete payment of their pledges within 3 years, beginning on March 1, 2012. The task force realized that these are difficult times for many of us and that it would be best to have the option to spread out pledges over time.
If I am able, would it be helpful to pay my pledge more quickly than over the 3-year time span?
Yes, it would be helpful! If more money comes in early, we will borrow less from the bank.
Is it too late to make a pledge?
No! While we did make our original goal, we are hopeful that additional pledges and contributions will be received, enabling us to minimize the amount added to the mortgage.
The cross remains central as the renovation continues
Our youth space will be wide open and well-lit
For the first time, the chapel will include a gathering space for conversation before and after worship
What is the overall budget for the project and why is it different from our original goal of $1,000,000?
The committee worked with the design team and developed a high-level cost estimate to define the $1,000,000 capital campaign target early in the process. As more time was spent in refining the project and fully exploring the existing conditions and required upgrades, the cost of the project increased. The committee value-engineered or eliminated numerous “nice to have” aspects from the project, but the final bids still exceeded cost estimates we received. Here are some further insights on major cost drivers:
Construction bids were $120,000 higher than expected primarily due to infrastructure upgrades such as electrical, fire protection sprinkler system (mandated by the fire marshal) and mechanical systems
Incremental requirement for a water line to service the sprinkler system of $60,000
Additional upgrades to electrical service provided to the building of $8,000
Asbestos abatement costs of $14,000
Incorporating these changes, we now expect the total project to be approximately $1.3 million. We are proactively working with the General Contractor to identify areas to reduce the budget without impacting the overall design and substance of the project. Considering the age and condition of the existing building, we are maintaining a contingency buffer to ensure we will complete the project within the $1.3 million budget.
Since the project will cost more than our campaign goal of $1,000,000, what will be the sources of additional funds?
Funding comes from either donations (pledged and unpledged) or a bank loan. To date, we have received $1,065,066 in pledges and unpledged contributions. The difference of the total project cost and the amount donated will be added to the church’s mortgage when it is renewed.
Based on donations received to date, we expect the maximum amount we will have to borrow temporarily to be $800,000, although we have approval from the bank to borrow $950,000. At the end of our campaign in 2015, we currently expect to have approximately $200,000 in borrowing remaining, which will be added to our mortgage.
How do I pay my pledge and will separate statements be sent for the Capital Campaign?
Separate statements will not be sent but, chapel pledges will be noted and tracked on your regular giving statements. When making a pledge payment, please note amounts designated toward your chapel pledge.
How long do I have to pay the amount pledged?
Members have been asked to complete payment of their pledges within 3 years, beginning on March 1, 2012. The task force realized that these are difficult times for many of us and that it would be best to have the option to spread out pledges over time.
If I am able, would it be helpful to pay my pledge more quickly than over the 3-year time span?
Yes, it would be helpful! If more money comes in early, we will borrow less from the bank.
Is it too late to make a pledge?
No! While we did make our original goal, we are hopeful that additional pledges and contributions will be received, enabling us to minimize the amount added to the mortgage.
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