1716 Progress Report

I am posting the report that Frank Harder gave at the congregational meeting. It presents the progress of the purchase of the 1716 (Alliance) building, which should be completed this week.

1716 Progress Report

Good evening.  My task this evening is to provide a status report on our efforts to acquire the Alliance building at 1716 Spruce. 

I can summarize this report by saying we are moving forward in faith to purchase 1716 Spruce in the face of considerable difficulty. 

My plan this evening is to review the key events up to the present and identify the next likely steps. 

On Feb 28 the board of The Alliance of Confessing Evangelicals (ACE) offered its building at 1716 Spruce Street for sale.  In response, the Session established a team to review the matter and make a recommendation.  Over the next month the team looked into important financial, facility, and operations matters related to the offer and unanimously recommended that the Tenth should acquire the building.  The Tenth team has grown over time and now includes Bryce Bartruff, Pat Canavan, Marion Clark, Brian Esterly, Ron & Beth Ferner, Liam Goligher, George Mc Farland, Paul Shultes, Nancy Siegel, and Terri Taylor.  I want to express my great thanks to this team.  Each member has contributed significantly to the advance of the project to this point

The session agreed with the team’s recommendation and on April 5 the trustees delivered and the Alliance accepted our formal offer to purchase 1716 Spruce from the Alliance of Confessing Evangelicals for $1.8 million.  The offer was contingent on obtaining financing, a positive vote of the congregation, and a number of technical/legal matters.  We anticipate that an additional $200,000 would be required for immediately required maintenance, so the total project cost is estimated at $ 2 Million.  Two of the three steps were able to be accomplished in good order.

·         On April 29 the congregation voted to acquire the building.

·         A financing commitment has been obtained.  Tenth church will borrow $1 million for 5 years at 3.02%.  The minimum monthly payment will be $ 5,555.99/mo to be paid initially from the property acquisition fund. 

Zoning has been much more difficult and is the remaining technical issue we have been working on since the spring.  The building is zoned to permit residential and religious administrative use.  We would like to be clearly authorized to use the building for regular church activities.

The initial zoning process was procedurally more difficult than initially anticipated.  The main reason is that the parking lot that 1714 and 1716 share was a handshake contract and the city required us to formalize the agreement.  As a result, we have had the additional task of writing a contract for the joint use of and shared responsibilities for the maintenance of the parking facility.  This delay extended to the end of August and required us to renegotiate the agreement of sale with the Alliance to permit a closing date as late as December 15.  Monthly extensions cost Tenth $50,000 each with the money applied to the purchase price.  

On August 28 we hit a more serious stumbling block in our effort to obtain the desired zoning variances. That evening, the Center City Residential Association zoning committee voted to oppose our purchase, which necessitated postponing our meeting with the city zoning board.  What came out of the CCRA zoning committee meeting was that in addition to concern over a number of technical building issues, our neighbors have a deep dissatisfaction with our Sunday parking practices.

The postponement was a joint action between Tenth and CCRA in order to provide an opportunity to work out a joint solution.  Since September, Marion has taken the lead in working with CCRA to resolve the parking issues.  Many here have been assisting in a variety of ways.  For those who have been so engaged, thank you very much. 

We are making progress in healing our relationship with CCRA but also understand that CCRA is looking for more than just a short term commitment to responsible parking practices.   As a demonstration of our commitment, we have requested that the parking authority now begin to give tickets to those who do not follow the parking rules. 

Where do we go from here?

·         First.  Session decided to proceed with purchase of the building; the closing is set for December 14.

·         Second.  Marion and his parking solutions team will continue to develop alternatives.  I am sure you will hear more about that in January and am hopeful for the result of the work.

·         Third.  We will continue to develop credibility with CCRA so that we might proceed together and in good order with the zoning variance with the city.  The current plan is also to proceed jointly with the 1714 Association in a manner that can resolve all the technical issues surrounding the gate and parking lot.

·         Fourth.  We will establish a formal capital campaign to raise funds for the building once the zoning matter is finally decided.

Finally, a logical question to ask is what will happen if we are ultimately unsuccessful in obtaining the zoning change we seek.  If that happens we will have two options and a decision will be required.

·         Sell the building and cut our losses/take or gains.

·         Use the facility as the church’s administrative center and repurpose the Delancey building for full time ministry activities.

From a spiritual perspective we need to acknowledge that in our efforts to purchase 1716, we have encountered a number of difficulties which are presently testing both our faith and our willingness to be a good neighbor.  In this aspect of the matter we rely on the Lord’s promise and encouragement in James 1. 

Count it all joy, my brothers, when you meet trials of various kinds,  for you know that the testing of your faith produces steadfastness.  And let steadfastness have its full effect, that you may be perfect and complete, lacking in nothing.

Please be in prayer for the ongoing work to bring this matter to resolution early in the New Year.