The meeting was called to order by Church Council Chair, Maureen Sawchak, who led the group in the opening prayer.
Rick Schuler, Building Financing Subcommittee Chair, presented to the Council a summary of the Building to Serve Project budget and pledges received to date.
- $11.5m cap for Phases I, II, III
- $7.05m bid for Phase I (new building and Templeton renovation)
- $7.8m commitments
- $3.7m forecasted borrowing need
- 2nd campaign to fully retire remaining debt planned for 2020
Rick proceeded to summarize loan proposals reviewed and terms recommended by FUMCC’s Building Financing Subcommittee.
Proposed loan terms
- Line of credit
- $6 million maximum
- Interest only for 3 years, P&I repayment details after year 3 to be negotiated
- Fixed interest rate under 4%
- Term – 72 or 96 months (6 or 8 years)
- No prepayment penalty
- Lending bank to also hold FUMC’s deposit relationship
- Collateral terms to be negotiated – either negative pledge or “abundance of caution”
Discernment by Church Council
The Church Council agreed the Building Financing Subcommittee should be responsible for proposal selection and negotiating final loan terms and financing details based on the information presented to the Church Council.
Post-meeting note: This information was to be presented at the Church Conference scheduled for January 4, 2018. As a result of inclement weather, the Church Conference has been rescheduled and will be held Sunday, January 14, 2018 at 2:00PM in the Fellowship Hall.
Church Council Chair, Maureen Sawchak led council members in a closing prayer, and the meeting was adjourned.