The ACE Auction and Leadership
Monday, August 16, 2010 at 2:11PM Hey all you Radius partners out there,
Just wanted to post a follow up blog to yesterday's sermon so everyone has the facts. The former ACE Hardware building is going to be auctioned off on September 2nd, which is a very short window. We have spent the last week seeking preapproval for loan financing and working hard to schedule some due diligence activities pre-auction, such as asbestos audits, surveys, appraisals, structural/zoning reviews, etc., etc. As these processes move forward, we are also seeking to raise some capital funds to put us in a better position at auction. In today's environment, a very significant down payment is required to finance any piece of property and therefore we need additional capital to make us competitive at auction. Based on our best estimates of the building's potential selling price, we need an additional $110,000 of capital to add to our existing cash reserves in order to bid competitively for the building.
Of course, this is just an estimate. The actual amount needed may be either north or south of this number, as we are dealing with a live auction on a commercial piece of real estate that has been on the market for the last 2 tumultuous years. Therefore, no one will really know what it's worth until it sells. We, of course, have a ceiling price that we will not exceed on the property, which is based on appraised value, our financial position and our core value of extravagant generosity. We would love to share more financial information with you, but the reality is that in an auction scenario we have to keep our cards close to our chest and not let any information about our bid threshholds leak out, as that would be very harmful to us. Our elders have discussed all of this and we have sought good outside counsel as well, so we feel very comfortable with our decisions in this realm.
As for making capital contributions, we ask that all of you consider doing whatever you can to help us raise this capital over the next 18 days. We will provide envelopes for this purpose the next two weeks and you can also mail in contributions and simply note on the memo section of the check "ACE Auction" and we will designate it for that purpose. Our intention is to gather these capital funds and simply escrow them until we go to auction on September 18th. If we are successful and win the auction, we will invest all of this capital and then some more moving forward in making this empty warehouse our home for the next few decades. If we are not successful and someone else acquires the building at auction, it is our intention to refund to everyone their capital investments designated for the ACE building. It is an awkward situation, as we need the capital up front to go to the auction, as you have to close within 28 days, but we might not win it and in that case we don't want anyone feeling like we pulled a bait and switch with their capital designated gifts. It is perhaps the first and only time you will get a money back guarantee at church!!!
Finally, now that you know all the facts, we simply ask you to pray. We would love to have this property, but we are not and will not be defined by it. It would be an awesome tool for us and it would propel us forward in this community as a whole, but it is not indespensible to God's Kingdom or to Radius Church. So we will pursue it with zeal and energy, but let's not get out of balance. Our business is the business of souls, not buildings. Buildings are nice tools but are not absolute requirements in the pursuit of Kingdom initiatives, as evidenced by the current existence of Radius Church. So here is what we must do. We must follow in the footsteps of the persistent widow in the days to come, continually talking to our God about this opportunity and asking Him to provide it for us, but to provide it in such a way that we would all realize that He is ultimately the one that accomplished the task. I don't know what that looks like, but I want it to be clear.
If you have any questions or concerns, please feel free to talk to any of our elders about this scenario. They are Jerry Dominic, Chris Seeby, Lin Keesey, Brian Kirklan, Salim Khalil, and Jeremiah Jones. This is going to be yet another roller coaster ride for us as a church as there area lot of variables in the equation, but I hope and pray that we never become the church that longs to sit on a shaded bench instead of riding the 'Scream Machine' one more time!
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