Living Way Fellowship (LWF) had merely 30 days after retaining Church Facility Solutions to re-evaluate a site contracted for and approved for purchase by their congregation. As suspected, CFS determined that LWF should seek an alternative site. CFS was hired to procure the new site, manage the development and the eventual relocation process from start to finish.
- CFS evaluated Client’s ability to purchase a 10-acre, $2.2 million site that Client procured directly in the City of Centennial.
- CFS determined Client could not afford to develop the initial 10-acre parcel and that the City may not approve a church use even though the use was allowed by zoning. Seller would not restructure the contract to a 5-acre purchase with option and or extend time of closing for entitlements.
- Located an alternative 5-acre site in Highlands Ranch for $1.3 million, obtained an option to purchase the adjacent 7 acres, and negotiated the time needed for the entitlement process with Douglas County/Highlands Ranch.
- CFS was selected to manage the Project Team through entitlement in Douglas County, fund raising, financing, sale/leaseback of existing facility and negotiation of a third-party day care provider.
- Managed construction and relocation of the approximately 500-member church.
- Instead of purchasing the entire 10-acre parcel, CFS saved the Client $1.3 million and assured its ability to relocate.
- Crafted a finance package/RFP for the land and the $4.9 million construction/permanent loan resulting in a five year, fixed interest rate of 5.9%, amortized over 30 years, with only a one-half percent fee to the lender.
- Saved Client $50,000 in mortgage broker fees.
- Negotiated the sale/lease-back of Client’s existing facility along with a lease to a third party day care provider without the use of an outside broker. Saved Client $55,000 in brokerage fees.
- Negotiated favorable terms with general contractor saving $400,000 and 2 months of construction schedule.
“Prior to officially hiring Tim Dreessen as our project manager for our $6 million relocation, Tim reviewed our existing land purchase contract and brought to our attention some serious development risks that we had not considered. These risks could have completely destroyed our project. Tim’s knowledge of the entire development process is invaluable.”
Wes Harding, Administrator