On June 12, 2017, the Church Council agreed to extend the deadline for pledge forms for the building program by three months to October 1, 2017. This decision was presented to the congregation at the June 25th voters’ meeting. The building committee and fundraising sub-committee undertook additional efforts to contact members who had not responded regarding the program as well as providing a “Project Overview” document to the congregation on September 27, 2017.
The building committee convened on October 4, 2017 to review the final pledge information. After reviewing that information the committee’s recommendation to the Council was that it would not be advisable to move forward in recommending the current plan to the voters of the congregation.
HOWEVER, considering the amount of support that had been shown by the congregation to address current and future facility challenges, the building committee also made a recommendation to the Council to reengage with ISG on the possibility of a revised plan. The purpose of that revised plan would be to lower the estimated costs and still keep all of identified needs intact. Costs would need to be reduced to a point where the sum of pledged amounts, current funds available, and a lower amount of additional financing would allow us to extend our current mortgage length, which is currently 10 years, to 20 to 25 years and keep our monthly mortgage payment the same as it is today. Reasons noted for considering a revised plan include the following:
- $2,200 of the $10,000 that the voters approved to be used for the architectural design phase of the project is still available to reengage ISG in the revision process.
- A significant number (a simple majority) of the estimated number of “active giving” households have expressed support for a building project.
- $463,000 has been pledged toward the proposed building project already.
- We currently have $317,000 in funds available in the Capital Campaign Fund.
- The current building plan, though presumably beyond our current financial capabilities, does address the most highly rated concerns of the broad-based user groups that were identified and surveyed.
- Based on financial information received in September of 2017, Mt. Olive could borrow an additional $1,000,000, include the additional funds necessary for the purchase of two additional houses (pre-authorized by the Church Council), and still keep our current monthly mortgage payment the same by extending the current 10 years left on our current loan 20 to 25 years, depending on what direction interest rates go over the next few months.
- From research done by committee members, a maximum of $100,000 in grant/subsidy money may be available for the project ($50,000 from Antioch Foundation and $50,000 from Lutheran Schools Subsidy). These are the only potential sources out of many that were researched where additional funding may be possible. However, applications for these grants/subsidies cannot be submitted until an actual project has been approved by the voters of the congregation.
After discussion, the Council approved moving forward with utilizing the remaining $2,200 to reengage with ISG to see what possibilities may exist for cost reductions. Chairman Bohning contacted ISG and they agreed to engage in a process they call Value Engineering, which is a process their engineering team utilizes to examine the current plan and identify potential changes that may better meet our financial capabilities. ISG has completed this process and the revised building plan, including revised estimated costs and revised architectural designs/rendering have all been completed. The revised architectural renderings are now on display in the church narthex.
COMPONENTS OF THE ORIGINAL DESIGN THAT WERE CHANGED:
WHY? Reduction in costs as this was not identified as an official “need”, but had been added as a “would be nice to have if possible.”
- The square footage of the new basement under the new administration area has been reduced significantly. It was 2,030 square feet in the original plan and has been reduced to 946 square feet. Per ISG, we must have a basement to house the utilities for the new construction. This accomplishes that and still leaves a little room for storage, but certainly not the square footage that existed in the original design.
WHY? Reductions in square footage reduces overall costs.
- The new kindergarten room remains in the same location, but the square footage actually increases from the original 1,163 square feet (including bathroom) to 1,553 square feet (including bathroom) to accommodate up to 25 or 30 children.
WHY? Our current kindergarten class utilizes two classrooms with 785 square feet per room, for a total of 1,560 SF and ISG recommends 1,500 square feet for 25 to 30 kindergarten students.
- The new music room, music storage, and music office are no longer new construction. These spaces were moved to the current space that will be vacated due to the construction of the new administration area.
WHY? We can accommodate our music needs with less square footage, which reduces overall costs.
- The physical demo/remodel of the all areas noted in the new design with X’s throughout the spaces, along with the related material costs, are now the sole responsibility of our congregation.
WHY? It is far more cost effective for volunteers from our congregation to complete the demolition and remodel of these areas vs. paying a contractor to complete that work.
- New youth room – the location and size of this room will change due to the domino effect of relocating the music room, music storage, and music office. This room moves from its’ location in the original design to the space labeled Youth/Multi-Purpose room that is located between the narthex and the gymnasium in the new design.
WHY? Necessary for cost reduction. The Youth Room is reduced from 853 square feet in the original design to 566 square feet and we also lose one of the Multi-Purpose rooms from the original design with this revision.
- The Title 1 room is relocated to share a room with A/V just off the sanctuary.
WHY? Combining these two rooms maximizes usage and reduces square footage, which reduces costs.
COMPONENTS OF THE ORIGINAL DESIGN THAT REMAIN UNCHANGED:
- The new administration area remains as shown in the original design
WHY: The current admin area in our facility does not work well for the security of the building and the current configuration is not well arranged for work spaces and offices
- The two new handicap accessible restrooms located just off the new corridor along the gymnasium remain as shown in the original design
WHY? These are necessary to maximize security during after school events, offer easily accessible options for visitors, and provide easier handicap access.
- The new enclosed corridor along the gymnasium remains as shown in the original design, although it will be shorter.
WHY? The corridor is still there, but will be shorter due to changing the location of the Music Room as outlined earlier. The shortened corridor results in lower costs.
- The new narthex remains as shown in the original design
WHY? ISG feels it is very important to stay with the current design of the narthex if at all possible. They believe the openness of that design is critical in handling noise effectively.
- An additional classroom still becomes available as a result of the project
WHY? Building the new kindergarten room frees up two existing classrooms and only one of them is necessary to return to a 1 classroom per class environment, which will be needed in future years.
- Security – even with the proposed design changes listed earlier, the integrity of the security and the location of potential key checkpoints remain unchanged
WHY? Security is a high priority and the key checkpoints needed to stay intact to maximize security effectiveness.
CONDENSED SUMMARY OF THE PROPOSED CHANGES OUTLINED ABOVE
- We lose the cover over the drive up, the square footage of the new basement is reduced significantly, the Music Room/Music Office/Music Storage areas are moved and reduced in size, the square footage for the new kindergarten room is increased, the Youth Room is moved and reduced in size, we lose one space currently designated solely as Multi-Purpose, the Title 1 room is combined with the A/V room, and we lose some storage space.
- The physical demo, remodel, of the current space that will be vacated due to the construction of the new administration area (1,946 SF), along with associated costs, is now the responsibility of the congregation and is not included in ISG’s estimated project costs.
- All identified “needs” are still addressed although some are at a reduced level compared to the current design (along with associated costs). However, other key areas remain intact and we actually increased the space needed for the kindergarten room. We also retain one new multi-purpose room (the one next to the Teacher’s Workroom). The music room could also be used for multi-purpose when needed and we still have one additional classroom available.
HOW DO THESE CHAN
GES IMPACT THE ESTIMATED COSTS?
- Original design = $2,318,724
- Revised design = $1,707,514
- Reduction in estimated costs = $611,210
- NOTE – additional expense will be incurred for materials etc. for demo/remodel of spaces we are now responsible for (estimated at $72,000)
|Revised Design – Funding Summary|
|ISG Estimated Costs||$1,707,514|
|Total Estimated Costs||$1,780,000|
|Congregation Funds Available|
|Current Funds Available||$317,000|
|Total Funds Available||$780,000|
|Amount To Be Financed||$1,000,000|
A VERY IMPORTANT CONSIDERATION: The amount shown above that would need to be financed for the project can be REDUCED by additional gifts designated toward the building plan.
The building committee encourages all members to thoughtfully and prayerfully consider this information and attend an informational meeting that will be held between services on SUNDAY, JANUARY 7th in the social hall to update the congregation on this revised plan. That meeting will be followed by presenting the final design plan, estimated costs, and financing needs to the voters at the semi-annual voters meeting on SUNDAY, JANUARY 14th for a formal vote on whether to move forward with the actual construction process or not.