Since 1978

1. WHERE WE ARE2. WHERE WE’RE GOING3. HOW WE’RE GETTING THERE

Since 1978

1. WHERE WE ARE2. WHERE WE’RE GOING3. HOW WE’RE GETTING THERE

Since 1978

Proposed Purchase of Current Building:Why now?

• Owner actively marketing the property for sale and has attracted offers from several interested potential buyers– Owner interested in having the church to buy the building even if at lower

price than other offers• Good time to buy

– Low interest rates and property values– Both likely to increase in coming years

• Provides a permanent home for the church– Current lease expires in two years– New owners likely to raise rent or seek other tenants when lease expires– No moving expenses– No tenant improvements anticipated upon purchase by church

• Unexpected 1:1 matching gift of up to $500,000 from anonymous donor to assist in purchase of current building– Allows church to leverage additional gifts and contributions

Proposed Purchase of Current BuildingWhat will it cost?

• Purchase price = $2.5 million (agreed)– List price = $2.9 million– Leaders believe this is a fair price based on pricing of

comparable buildings • Mortgage = $1.5 million (needs to be obtained)– Leaders in process of determining loan availability and

terms with several banks• Contributions = $1 million (needs to be raised)

Proposed Purchase of Current BuildingWhat is the financial impact?

• Current monthly building payments – Monthly rent payment = $9,850 – Proportional share of utilities/other building expenses (approximately) =

$2,000• Changes in monthly cash flow over first three years:

– Estimated monthly mortgage payments = $8,050• Estimate based on $1.5 million 30 year fixed loan, at 5% interest• Loan availability and terms are being discussed with banks so this estimated

monthly mortgage payment could change

– Owner lease back rental income to church = $4,250• Owner has agreed to a 3 year lease on currently occupied premises as a condition

of sale (4250 sq. ft.)

– Proportional share of utilities/other building expenses = Same– Additional monthly ownership expenses = TBD

• Includes some taxes, increased utility and building expenses not included in owner lease. Actual amount being determined.

• Current assumption: Church should save $2,500-3,000 per month during this 3yr lease period

Proposed Purchase of Current BuildingWhat is the financial impact?

• After three years, owner lease agreement expires, – Rental income will stop and church will responsible for all building

expenses• Church will have two alternatives at that time:

– Expand into the remaining space• Will depend on the financial ability of the church to absorb the loss of rental income

and additional building ownership expenses included in lease• This will require an offsetting increase in church revenues through increased giving,

congregational growth, or both

– Seek a new renter for remaining space or extend owner lease back agreement • Continue receiving the estimated monthly cash flow savings • Ability to rent this space is uncertain and will depend on economic and rental market

conditions at the time

Proposed Purchase of Current BuildingWhat is needed?

• Commitments for $500,000 in new contributions are needed within the next 90 days– To be matched 1:1 by the anonymous gift to get to $1 million

required to complete the purchase

• Current church building fund ≈ $200,000 – To remain intact and available for future needs of the building

and property after the purchase

1. WHERE WE ARE2. WHERE WE’RE GOING3. HOW WE’RE GETTING THERE

Since 1978

MISSIONSYOUTHGENERATIONSGOD’S LEADING

Therefore Go… Matthew 28:19

International Ministry Partners

• Boy with a Ball– The Johnson family

• Gospel Relief Missions– The Northrup family

• CSM– The Simpson family

• International Outreach Ministries– The Coll and McCarty families

International Ministry Partners

• Campus Crusade for Christ– The Schenkel family

• North India Ministries– The Ibrahim family

• Kenya Ministry Training Institute– The Curtis family

• El Reino de los Niños– The Shockey family

International Ministry Partners• What more could we do with less monthly overhead?

MISSIONSYOUTHGENERATIONSGOD’S LEADING

“To SERVE the Emerging

Generation”

“To SERVE the Emerging Generation”• Sunday School• VBS

VBS 2005

VBS 2012

“To SERVE the Emerging Generation”• Sunday School• VBS• Jr. High & High School• YOUTH GROUP!

Owning this building:• Several options to reconfigure

classrooms for all age groups.• Permanent home for VBS.• Outside Area!

“To SERVE the Emerging

Generation”

THIS is for THEM!

MISSIONSYOUTHGENERATIONSGOD’S LEADING

One plants, another waters, but God gives the increase

GENERATIONSWORSHIPCOVENANT

MISSIONSYOUTHGENERATIONSGOD’S LEADING

Unless the LORD builds the house, its builders labor in vain. Psalm 127:1

• Our History, Our Mission, Our Church

• The Lord Leads and the Devil Pushes – Psalm 1:6

• We have been led into this Purchase Opportunity

Our History • Saddleback Covenant Church

was founded in 1978 with the expressed purpose of gathering people and resources to establish a local church and provide a platform to extend the kingdom of God.

This Building helps facilitate our Mission

• The mission of Saddleback Covenant Church is to SERVE the emerging generation by SHARING the victorious message of God’s love, DEMONSTRATING His power, and MODELING His care. To be a people GROWING in Christ, EFFECTIVE in service, and COMMITTED to Biblical principles & values. To focus on STRENGTHENING family life & relationships, BUILDING young people, and PROVIDING individuals with TRAINING & EQUIPPING to carry their ministry into the Community, State, Nation and World.

Our Building

• This building is about extending the Kingdom of God not about increasing the population of the church

• This building is meant to serve the body not to be a burden.

• Combination of Leadership, Membership, Economy, Energy, Interest Rates, Prayer, Unity, Vision, Matching Fund, History of the Building and Room for growth

1. WHERE WE ARE2. WHERE WE’RE GOING3. HOW WE’RE GETTING THERE

Since 1978

Don’t allow this decision to become a burden.

How Are WE Going To Get There

I would venture to guess that not many of us are sitting on a surplus of wealth and

treasures that we just don’t know what to do with.If God doesn’t put an amount on your heart

today be at peace with that.We would suggest that you open your heart and your mind and listen to see where God

is directing you.

How Are WE Going To Get There

No one will be judged on how much you give.

Just know that every dollar you give is doubled.

This opportunity will serve to bring us closer together as a church family.

How Are WE Going To Get There

One of my favorite lessons from Pastor Kevin’s is

How Are WE Going To Get There

“what ever happens don’t take your ball and go home”

UPDATED WEEKLY Raised To Date: $11

Since 1978