Northeast Community Lutheran Church

Sale of Lowry Avenue Building

Questions and Answers – Updated July 17, 2011

Q:  What is the sale price? 

A:  House of Refuge (Church of God in Christ) will purchase the building for $450,000 on a Contract for Deed.  The original list price was $675,000 in the summer of 2009.  The real estate and credit markets have continued to stagnate, however, and we’ve received no other offers on the building in the nearly two years since it was listed. 

Q:  How will the Contract for Deed work?

A:  House of Refuge (HoR) will make a lump sum down payment at the time of closing, then regular monthly payments over the course of the contract.  The contract will be due in five (5) years.  The interest rate on the contract is 5%.   At each anniversary date of the loan, HoR will make a lump sum payment of interest and additional principle, and a balloon payment for the full amount of the contract loan will be due in five years. 

Monthly payments of $1,500 will be received over the course of the contract beginning 8/1/11.  Additional payments from the sale of the building will be received as follows:

Earnest Money at signing of Purchase Agreement                 $10,000 (expected this week)

Additional down payment at Closing                                                $45,000 (closing expected 7/15/11)

First installment of Year One lump sum payment                  $12,500 (due 12/1/11)

Second installment of Year One lump sum payment             $12,500 (due 7/15/12)

Year Two lump sum payment                                                 $25,000 (due 7/15/13)

Year Three lump sum payment                                               $15,000 (due 7/15/14)

Year Four lump sum payment                                                 $15,000 (due 7/15/15)

Full principle balance due on Year Five anniversary date      $307,702 (due 7/15/16)                      

Q:  How much are realtor’s fees and closing costs, and how much will NEC actually receive at the closing?

A:  Our realtor, Tom Dunn, receives a 5% commission ($22,500).  Additional closing costs could run up to $7,500 but are not expected to be that much.  NEC will likely receive net proceeds of $25,000 - $30,000 at the closing.

Q:  What is the financial condition of House of Refuge?

A:  We have not had access to their financial records yet – the signing of the Purchase Agreement will allow us to do so.  They are about two years old as a church, and Tom Dunn has been very impressed with them.  Two of their members have put up personal guarantees on the contract, suggesting that they have the financial means to cover the contract adequately.

Q:  Who will manage the Contract for Deed and assure it gets paid?                            

A:  NEC is essentially the “banker” in this contract situation, so the Church Council becomes the manager.  In a practical sense it will be the Pastor and the Congregational Administrator who will be the main points of contact with House of Refuge.

Q:  What if they don’t or can’t keep paying on the contract?

A:  The Purchase Agreement will contain strict language saying that if HoR falls behind on their payments, they will be in default and will lose the building.  The building would then return to NEC’s ownership.  We would keep all payments made to us by HoR in this event.  

Q:  Where will we hold Community Dinners? 

A:  House of Refuge has agreed to let NEC use the kitchen at the Lowry building until we finish the kitchen renovation at Grace Center. 

Q:  What about the Sauerkraut Supper?

A:  Likewise, NEC can use the Lowry building to hold the Sauerkraut Supper until the kitchen at Grace Center has been renovated to accommodate that event and other large events.

Q:  What about the personal property items still at the Lowry building?  The kitchen supplies, dishware and cookware will stay at the Lowry building until we are ready to use them at Grace Center – HoR will have use of them.  All remaining office supplies, equipment and any other NEC items will be moved to Grace Center before the closing.

Q:  What about the piano and organ?

A:  The baby grand piano has been moved to Grace Center, and the organ that is currently in the Lowry sanctuary will be moved to Grace Center and will be used in our new sanctuary.

Q:  Will Giving in Grace stay at the Lowry building?

A:  UPDATE:  House of Refuge is in conversation with Giving in Grace about the possibility of them remaining as their tenant in the building. We do not have room at Grace Center on Sundays to accommodate Giving in Grace, so if it does not work out for them to stay at the Lowry building they will be looking for a new location. 

Q:  When will we be able to renovate the kitchen at Grace Center?

A:  While we will not have adequate funds right away based on this Contract for Deed sale, it may be possible to refinance our Grace Center loan within 1-2 years if House of Refuge remains faithful and current on their monthly and lump sum payments.  In addition, we may be able to partner with other Grace Center building users to purchase kitchen equipment and appliances.

Resources to grow deeper in your relationship with God and others:

Reading the Bible daily:

Links:

www.enterthebible.org

www.elca.org/What-We-Believe/The-Bible/Todays-Bible-Reading.aspx

http://www.sojo.net/index.cfm?action=sojomail.subscribe

Doing a daily devotion:

Upper Room booklets – available at church

Links:

http://revkerry.wordpress.com/

www.luthersem.edu/godpause

www.upperroom.org/devotional

Participating in a weekly Bible study:  Sundays, 9:00 a.m. in the office at church,

Wednesdays at 7:30 p.m. following Lenten worship

Links:

http://www.elca.org/Growing-In-Faith/Discipleship/Christian-Education/Daily-Discipleship/Year-C-Quarter-2.aspx

http://www.bookoffaith.org/bof_new/bible.htm

Praying regularly:

Links:

http://www.elca.org/What-We-Believe/Prayer-Center.aspx

Spending quiet time daily:

Fasting:

Reaching out and serving others:

At Northeast Community Lutheran, your neighborhood organization, school, Eastside Food Coop, hospital, nursing home, visit homebound residents, Meals on Wheels, donate money to important causes . . .