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PROPERTY PURCHASE-
Property Description Q&A We don’t yet have all the answers yet, but we appreciate your comments and questions to the project leaders at NewHome@uueugene.org as we seek those answers. BASIC SUMMARY The property is located at 1685 W. 13th Ave, Eugene, and consists of a single story building that is 17,630 square feet, located on a lot that is 1.532 acres. The building contains a commercial kitchen, a large lodge room, offices, and other large flexible spaces. The terms outlined in the amended purchase and sale agreement are that UUCE would purchase the building for $1,350,000 with $405,000 as a down payment and the option of the seller financing the balance for 30 years at 6% interest, or buyer paying cash for the building at closing. This could change based on the outcomes of the due diligence process, but these are the terms as they currently stand. Due Diligence Summary PRO FORMA BUDGET - 5 years out QUESTIONS AND ANSWERS 25. How will we pay for this? (See also items 27 and 28) If the congregation approves the sale, we will need $405,000 for a down payment, plus an additional $240,000 for several years of mortgage payments, which totals $645,000. This amount will be needed at the end of the due diligence period to provide financial assurances to the lender for closing. These funds will need to be identified through early contributions to the capital campaign and/or through loans, which would likely use our current property as security. The purchase price for the building and property is $1,350,000. Our goal is to be able to pay the total cost of the building within five years from the proceeds of the capital campaign and eventual sale of our current property. Retiring the debt will allow us to avoid paying the bulk of an additional $2,160,000 in interest and mortgage payments that would accrue over the life of a 30-year mortgage. The pledges for the capital campaign are payable over three to five years, and during that interim we will be responsible for the down payment of $405,000 and monthly mortgage payments of about $6,000. The BPOC and finance leaders estimate that the total building purchase and the necessary remodeling to occupy the property, could cost as much as $1,600,000. This includes the purchase price, expenses for due diligence, an architect to assist with creating RE space and accessible bathrooms, construction costs, and a minimum of five years of mortgage payments, minus the proceeds from the sale of our current property. The amount raised by the sale of the current property will depend on the real estate market at the time. Down the road, we may look to a second capital campaign after retiring the debt for the purchase of this property. That second campaign would raise money for major renovations to the property, which can be designed by the congregation during the next several years. 26. How many people will the new sanctuary seat? Since this building is not currently a church, there isn’t an existing sanctuary. However, there is a current “Lodge Room” that has a stage area and could serve as a sanctuary. The space is 56x56, and has another two large open spaces behind it. This area can seat approximately 475 people. 27. What about parking? The property currently includes 55 parking spots. The church is required to provide 1 space for 28 square feet of worship space, which would translate into 80-150 spots depending on how the main worship hall is configured. Other spaces in the building, such as the “Dine-Dance” room and classrooms are considered concurrent uses and they are not required to be included in parking calculations. There is the potential of adding approximately 15 spots on Scottish Rites site. There is also a joint easement with the adjoining property owner to allow parking on each other’s property (approximately 25 spots). The adjoining property owner is also willing to enter into a parking agreement to allow parking on Sundays and for special events. 28. Is the property handy to bus and bike routes? There are several bus routes that run west on 11th (2 blocks) and three that run east on 13th with stops adjacent to the church. According to the LTD website, the #30 runs very 20 minutes Monday through Friday, and at least once per hour on Saturday and Sunday. The #32 runs early morning and afternoons on weekdays. The #43 runs west on 11th from the Eugene Station, seven days a week every half hour. The #76 runs every half hour seven days a week, but has no summer service. The #93 runs hourly Monday through Saturday. There are significant bike routes handy to the property. 29. Is there an outdoor playground for children? There is not currently a playground on the property, although there is a yard area that the church may consider developing into a playground. 30. How soon could we move to the new property? The answer to this question depends on the due diligence process that is currently underway, the results of which will determine if any remediation is necessary and the timeline for any repairs. Additionally, the congregation has not yet sold our current property, so for the time being there is some flexibility about when a move might occur. Unless inspections show otherwise, the building would be able to be occupied soon after purchase without requiring any major remodeling. The agreement with the seller allows them to occupy the building for 60 days after closing, and a move could be scheduled any time after that date. 31. Is the church wheelchair accessible? The building is single story and the doorways are wide enough for wheelchairs, with all the meeting rooms, offices, and kitchen accessible. The bathrooms are not currently accessible, but if the congregation chooses to purchase the property accessible bathrooms will be added immediately. Two of the current large rooms include a small raised stage area, and if those areas are retained in the remodel then accessibility to those will need to be addressed. 32. Will we still need to have two services? If we were to move today we would only need one service, but the number of services we hold will depend upon the size of our congregation at the time of the move, as well as decisions about how to design the worship program. 33. Is there adequate office space for an expanded staff? Yes. There are currently a number spaces used as offices, as well as the potential to remodel other space to create more offices. 34. Is the proposed new property centrally located for our congregation? Yes. There is a map posted on the bulletin board that indicates where our current congregation lives, and the relative position of this property. 35. Will I be able to see the inside of the building before the congregational vote? Yes. The BPOC continues to schedule tour opportunities and to publicize the dates and times. Additionally, there are photos and other information about the building posted on the BPOC bulletin board at church, and additional displays available in conjunction with town hall meetings about the property. The remaining date for tours: October 31 at 11:00am and 1:00pm. Photos may be seen here: Photos - exterior Photos - Interior Current Floor Plan 36. Were other properties considered? Yes. During the last two years the Property Search Working Group of the BPOC conducted a wide search for suitable properties, including running an ad in the Register-Guard, contacting the Cities of Eugene and Springfield (including Glenwood), 4J School district, and 140 churches in the area to solicit any properties that might be available. The group followed up on leads given by members of the church or properties that otherwise came to their attention, did "on the ground" exploration of those, and then followed up on likely prospects with a search of County records on about 250 properties. Members of the group then did on-site inspections of more than 20 properties that met the tier one values: suitable, available, and affordable. The group worked with an experienced commercial broker helping us identify other properties that were not formally on the market. Ultimately, formal offers were made on two properties prior to this one, one of which was then taken off the market and the other has yet to be formally placed on the market. 37. Will I have an opportunity to learn more about this property prior to the vote? Yes. Town Hall meetings have been scheduled as an opportunity to hear the latest information about the property and to get answers to questions. The fourth and final Town Hall meeting prior to the congregational vote was scheduled for October 25th at 12:30pm. This is one of the most important decisions to be made by our congregation, and the BPOC is committed to providing ample information and opportunities for discussion prior to a vote. 38. Will we need to hire additional staff to maintain such a large property? Given the size of the facility it’s reasonable to expect we would need a full time custodian rather than the part time position we currently have. In some churches with more rental opportunities, the rental income helps to offset some of this increased expense. 39. What are the Religious Education classrooms like? There are some current rooms that could be used for Religious Education, but more will need to be created out of some of the currently open space. Once the building is purchased, a next step for the BPOC is to hire an architect to work with the congregation to develop a short term and long term vision for how to best use the space, including plans for additional RE classrooms. 40. Where will the choir be located? On the main floor in the sanctuary. Once the building is purchased, a next step for the BPOC is to hire an architect to work with the congregation to develop a short and long term vision for how best to use the space, including plans for the music program. 41. Are photos of the property available? Yes. Some photos are posted on the BPOC bulletin board at church, as well as at www.uueugene.org on the BPOC page. During the next month we will be taking more photos and adding them to both places. 42. How does this property fulfill our values, and how does it not? Values Checklist, based on the congregational meetings in 2008: 43. What kind of social outreach programs could we do from that location? The location offers the opportunity to do on-site as well as off-site social justice programs. There is a large commercial kitchen and a visible, central location that provides opportunities to host programs at the church. Additionally, the space is large enough to provide space from which to organize and launch programs that would happen elsewhere, but for which we might host large trainings, or other support functions. 44. Are there any natural features around the church? There are some trees, particularly on the eastern edge of the property. There is also the opportunity to develop new landscaping features. 45. How does the size of the proposed building compare to our current UUCE building? The current UUCE building is 6,670 square feet total, on a lot that is 2.03 acres. The proposed building is 17,630 square feet, located on a lot that is 1.532 acres. 46. There are power lines that run down 13th Avenue across from the property. What is being done to assess any concerns related to those? As part of the due diligence process the BPOC contracted with ElectroMagnetic Investigations, LLC for an assessment of Extremely Low Frequency (ELF) electric and magnetic field measurements (60 HZ) at the proposed property. The contractor also assessed levels at the current property at 40th and Donald for comparison purposes. The purpose of the testing was to determine if the measured levels at the new property could be of concern for human exposure. The recommended maximum levels indicated by the ANSI C95.6 standard were used for reference. The electric field test results exceeded the electric field measurement capability of 1,000 volts/meter at certain locations within the property. The maximum ANSI C95.6 level is 5000 volts/meters. The magnetic field measured was 5 milli-Gauss, well below the recommended maximum of 9 Gauss. The specific levels in different parts of the property varied, and the details can be seen in the full report. The ELF levels at the proposed new property were higher than the levels at the current property at 40th and Donald. The report states that there are no regulations or standards in the US setting out hard exposure limits for low frequency magnetic fields. The guidelines differentiate for occupational and general public exposure levels for acute health symptoms and not for chronic illnesses. Because the concern is based upon both the level of exposure and the amount of time exposed, the occupational levels (the work day) are higher than for general public levels. 47. This property is much larger than our current property. Are there any figures on what the utilities and related cost might be? This property is significantly larger, and we would expect higher utility costs than at our current, smaller facility. At this point we haven’t made any determinations about what energy saving improvements we might make, so it’s difficult to estimate what our costs would be. However, the current owners have provided information on their expenses for operating the facility. Those figures are below: • NATURAL GAS: 2009 NW Natural: (total as of 7/8/09 = $5,059) $211 to $1,171 per month; 2008 NW Natural (total for year = $8,861) $81 to $1,255 48. There are lots of tables, chairs, and other things currently in the building. What items are included in the sale price? The currently agreed upon price includes items that are literally “nailed down.” This includes all fixed or installed items such as cabinets, appliances, shelving, mirrors in the restrooms, installed light fixtures, and window treatments. The sets of upholstered theater-style chairs in both lodge rooms that are attached to the flooring are included. Other items, such as the sets of chairs attached to boards, refrigerators and freezers, dishes, tables and chairs might be available for purchase if we chose to negotiate the sale of those separately with the sellers. 49. How does the size of our current sanctuary space compare with the size of the sanctuary in the proposed building? Our current sanctuary space is 1,598 square feet. The room at the Scottish Rite Lodge marked "large room" on the floor plan is located on the far east wall and is a likely candidate to be turned into a sanctuary. This space is 3,136 square feet. There is a room directly west of that room labeled “Dine-Dance” that is 1,886 square feet. 50. How does the timing for all of this work? When does due diligence start and end, and how does that connect with the financial feasibility study and the congregational vote? The current purchase and sale agreement contains a couple of key timelines that influence how the dates for planning and decision-making will be scheduled. While the agreement can always be amended, this answer is based on the current agreement. Because the sellers might be financing the mortgage, in order for the process to move forward they need to review our financial documents and determine that we are financially sound enough to qualify for the loan. The official "due diligence" period of 60 days will not begin until the sellers have accepted our financials. Because that is such an important milestone, UUCE is not conducting any inspections or other work that will require expenditure of funds until after we hear from the sellers about the financials. We don't want to spend money on due diligence if for some reason the seller is not going to approve our finances to purchase. The 60 day due diligence period is UUCE's opportunity to gather all the information it can about the new property and make a determination about whether it will work for our purposes through a congregational vote. This includes inspections, work with the City of Eugene, exploring parking and much more. It also includes determining if we believe our capital campaign can successfully raise the funds necessary, as well as having a congregational vote to officially determine that we want to purchase the property based on the information gathered during that 60 days. For that reason, we want to schedule the vote as near the end of the 60-day period as possible to allow maximum time for information gathering. During the 60-day period we will have additional opportunities for tours and town hall meetings. The 60 day due diligence period began when the final addendum to the agreement was signed on September 10 and runs out on November 9. 51. What were the results of the Capital Campaign Feasibility Study? How much money could we expect to raise in a campaign? In September Aggie Sweeney, UUA Congregational Stewardship Consultant, completed a Financial Feasibility Study to provide information on the potential for a capital campaign to purchase the property at 13th and Chambers. The complete text of the report is available along with other property information at In reviewing her recommendations with the BPOC and Board members, Ms. Sweeney felt confident that $1.1 million was achievable for this project, even taking into account concerns about the economy. She felt it was a conservative estimate of the potential for the campaign. The interviews included asking participants to identify what level of giving they would pledge in the event of this capital campaign, resulting in identifying donors for all but one of the top thirteen top gifts necessary in order to reach this goal. 52. What do the two capital campaigns cover besides purchase of the property? At this point there is planning underway for a first capital campaign that would have two phases, one in November and the other in conjunction with the annual stewardship in the spring. The idea for this first campaign is to cover as much as possible of the purchase of the building and some immediate changes to make the space livable. The exact elements of the remodel have not yet been determined, and if we vote to purchase the building we would be making those decisions after we complete design and bids for the projects that are most important to the congregation. If the campaign raises $1.1 million by the end of 3-4 years (the estimate from the feasibility study) and we sell our current property within that time frame, the property and initial remodel could be completely paid off. During that time design work could be completed for a more major overhaul along with a plan to finance those additional renovations, which could include a second capital campaign and/or taking out a mortgage to fund the improvements. 53. What is the general condition of the roof of the proposed building? Do we have estimates on costs for any required or desired improvements? As part of due diligence, UUCE contracted with River Roofing for an inspection. The type of roof is described as hot tar built up roof system with white mineral surface cap sheet. About 90% of the roof has a slight pitch and is described as in an average state of wear with three to five years of lifespan remaining. The flat south central portion (about 10% of roof surface) has more degeneration and only about one to three years of lifespan remaining. There are some voids around plumbing pipe penetrations. The comments and recommendations were to clean the roof, seal the penetrations and install cap flashings where currently missing with a bid price of $290. The suggestion is to clean the roof yearly, and monitor and repair as required. The bid to re-roof the flat south central portion was $2,325. The BPOC has arranged for an evaluation of the current sound system at the new property, including whether there will be any radio frequency interference. In addition we will explore options for a “loop” system. 55. What kind of environmental assessments have been done on the proposed property, what were the results, and what will any necessary remediation cost? The Scottish Rites Association contracted with Environmental Management Services to produce a Phase 1 Environmental Site Assessment (pdf), (also pdfs Appendices A-E and Appendix F) and the report was completed on June 26, 2009. For the Environmental Site Assessment, EMS reviewed all pertinent state and federal regulatory agency databases; reviewed historical aerial photographs; visited the site to observe conditions of the property and surrounding sites and conduct personal interviews; reviewed published information about the site’s environmental setting; and interviewed available site owners, tenants or people familiar with the site. Based upon their searches, they found the following:
Findings and Conclusions: Based upon local topography and regional groundwater flow and direction, the groundwater flow direction is to the northwest and the depth to groundwater on the site is approximately 10 to 20 feet based on well log data. None of the facilities and/or orphan facilities identified in the Environmental Data Resources Report as being within the search radius are believed to pose a threat to the site based on either the location of the facility in relation to the site or the status of cleanup at the facilities. An executive summary of the EDR report is linked here. The entire document is very large and a copy is available for review in the lobby at church. The conclusion of the report is: “The ESA has revealed no evidence of recognizable environmental conditions in connection with the site.” The BPOC has a copy of a “No Further Action” letter from the DEQ which states that the Scottish Rite satisfactorily cleaned up the old leaking underground storage tank that was on the property. 56. What is the general condition of the heating, ventilation, and cooling (HVAC) system of the proposed building? Do we have estimates on costs for any required or desired improvements? As part of due diligence, UUCE contracted with Commercial Air, Inc to evaluate the HVAC system and make any recommendations. The report states that the equipment appears to be the original equipment installed around 1957. It was a “first class system” when installed, has been maintained, and is in good overall condition for its age. Because of the high temperatures during the inspection days, they were not able to fire off the boiler. The overall condition seems to be good and the burner has been upgraded in the last few years to natural gas from oil. There are some recommended repairs and upgrades in order to have the system fully running as per the original design, and ensure a few more years of faithful operation. Given the level of repairs, and the desire to ensure energy efficiency, a decision would need to be made about whether to repair the existing system or completely replace the HVAC. The repairs and upgrades recommended by Commercial Air, Inc. include: · Upgrade/repair of the Trane Water Cooled Condensing Unit--$30,000 A preliminary price from Commercial Air, Inc to replace the existing HVAC equipment with new Trane Package Units would be $100,000 to $120,000 depending on the complete scope of work. This would replace the 70-ton Trane Condensing Unit, 5 air handlers in attic spaces, the boiler, and controls. The ducting would remain as installed. A firm estimate would be established once a remodeling plan was developed with an architect, and the HVAC would be designed to best serve the space as UUCE would use it. 57. Is there asbestos in the building? If so, what are the costs for abatement? Given the age of the building, the BPOC assumed there was some asbestos in the building, and the agreed upon price assumed removal costs up to $50,000 (at our expense). As part of due diligence, UUCE contracted with ATEZ for this assessment and to provide a budget proposal for what expenses might be associated with abatement. To see a copy of the full report, click here for Part 1 and here for Part 2. ATEZ took 52 samples from throughout the building, and 18 of those tested positive. Of those 18, 9 were in the boiler room as expected. The floor tiles, sheet vinyl, mastic (under the carpet), carpet glue, and popcorn ceilings also tested positive, which was expected given when the building was constructed. Asbestos can either be removed or sealed, and the main issue will be in relation to any renovations where we might want to disturb these things and therefore merely sealing them will not be sufficient. Of immediate concern was pipes in the attic that tested positive and have been disturbed—these need to be abated right away. For budget purposes, ATEZ provided a cost estimate for properly removing and disposing of the materials that tested positive throughout the building, including the boiler room, the attic, flooring, and popcorn ceiling for a total of $37,441. The BPOC has selected local architect Gary Moye as part of the due diligence process to help assess the building and to provide some conceptual drawings about how the space might generally work for our needs. He has provided two different floor plans with broad estimates of costs. These are not intended as the ultimate options, but instead are focused on generating possibilities. If the congregation purchases the property, a later design phase will include opportunities for input from staff, committees, and the congregation about how the space could be best configured for our needs. Photos of his drawings are available by clicking here. Additionally, Gary has provided to us before and after photos from his recent remodel design work with the Christian Science Church in Eugene. Click here to view a “before” photo of their church, and click here to view an “after” photo (photos courtesy of John Clague, member of Christian Science Church.) While there may be some Sundays where the Sanctuary space has not been overflowing, there are many signs that UUCE has outgrown our lovely building designed to meet our needs 50 years ago. Much of the need goes beyond the Sanctuary on Sunday mornings. We need bigger and better space for our R.E. classes (we have 130 children, including 30 high school youth enrolled this year). We need adequate space for our current (and future planned) staff—our wonderful Music Program Director doesn’t even have an office at the church. The social hall is uncomfortably crowded, and “mall like” as Rev. Carolyn Colbert used to say. We need more multi-use room and space if we want to increase our rental income. And, that is absolutely true for our kitchen space that does not meet our current needs, much less our vision for a social justice future. During our ministerial transition we may have lost some regular attendees—that shift is predicted by the UUA Transitions office, and experienced by congregations across the country. Overall, however, the trend at UUCE for many years has been one of growth. Data from the Alban Institute and others indicate that once a facility has reached an 80% capacity, it appears “full” for visitors, and appears unwelcoming. It looks like there is no room for anyone else to comfortably join the congregation. A little more than a year ago the congregation participated in a series of Listening Groups designed to identify hopes and dreams for the next chapter of UUCE history. Some of the themes from the discussion included:
The complete notes from the sessions are posted on the website under “Listening Groups,” and include many more examples of the vision congregants have for our future. The land is currently zoned R-4, but is designated commercial in both the Jefferson Westside neighborhood plan and Metro (regional) Plan. City staff recommended we apply for a zone change, and the BPOC submitted this application on October 15th. The decision is made by a hearings official within 60 to 90 days. We will also have to prepare a Traffic Impact Analysis (TIA), which is likely to cost $6,000-$8,000. We have requested a deferral of the TIA to the time of obtaining an occupancy permit, which means it would be based on a church use, rather than a commercial use. The TIA could identify mitigation costs, but the BPOC contacted a traffic engineer, who indicated these are usually minimal because churches operate at low traffic volume times. The BPOC contracted with Wisesteps Inc. in Salem to test for indoor air quality and mold. The complete report can be viewed by clicking here. The testing included visual observations, moisture testing, and sample results, all of which indicate there has not been any significant water damage that would result in mold growth in the building. According to the report, the acoustical ceiling tiles, older carpeting, and other textile materials likely contribute to the musty/dusty odors within the building. Since the acquisition plan includes extensive remodeling and replacement of most or all of these materials these odors should dissipate. The mold spores collected in the air samples are likely from outdoor air infiltrating through open doors and other air pathways into the building and/or from settled airborne spores accumulated over time. Though the test taken in the women’s restroom showed slightly elevated airborne Aspergillus/Penicillium spores and hyphal fragment counts, compared to the outdoor sample it is not significant. The test may indicate a past water leak that resulted in mold growth inside walls or the test more likely reflected infiltration and trapping of spores that have infiltrated the building since there was no visible mold growth. Based on this assessment there was no indication of major areas of mold growth that would require mitigation. Because the carpeting is a suspected source of a stale smell, the BPOC obtained rough quotes on new carpeting. The quote for Mill Classic carpet ($1.52 sq ft) is approximately $27,000. Green carpeting costs range from $1.50 to $5.00 per square foot, but labor costs are higher and the adhesive is not as good. Green carpets are also more susceptible to mold, because they do not contain mold and soil retardants. After meeting with several banks in town, UUCE has applied for a loan through Siuslaw Bank to borrow enough money to pay for the new building at closing. This loan would require us to use both the current property at 40th and Donald and the new property as security for the loan. Appraisals of both properties have been ordered, with preliminary valuation figures anticipated prior to the congregational meeting. On November 10, 2009, UUCE and the sellers officially removed all contingencies on the purchase of the property, except for the issue of zoning approval from the City of Eugene. This means we've taken the next step, and agreed that the property will meet our needs and that we will close the deal provided that the zoning change is approved. We have a loan commitment letter from Siuslaw Bank and anticipate that loan to cover the total cost of the purchase. The hearing with the city regarding zoning is scheduled for early December, and we should have more information after that time.
You are encouraged to offer your questions and/or comments to the project leaders at NewHome@uueugene.org Nov 2009 |
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