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4 Principles of Facility Stewardship

Our team is not only committed to Facility Stewardship…we are fanatics about it.  We even have an eBook on the topic.  We have developed a FREE online community to support the premise. There is no doubt what we stand for!

We have been blessed to have established a lasting relationship with Dr. Thom Rainer and his staff.  We have participated in a number of podcasts where we have discussed topics around facility management, facility care, life cycle planning and right sizing of facilities when you have too much space. I love these opportunities.

Recently, we were recording another podcast discussing how planning is such a critical part of operating a church.  In particular we were discussing worship service and other event planning.  Dr. Rainer asked a compelling question to me that allowed me to articulate a believe we have, but have not done well with communicating.  He asked “Cool Solutions Group is facility and facility stewardship experts, so how does planning fit in that?”

I am SOOO glad he asked.

If you have ever been on our Cool Solutions Group website, you will see a graphic like this:

This has been a foundation belief for as long as we have been in business, and the foundation for our passion of Facility Stewardship. We tend to spend a great deal of time talking about issues related to the SUSTAIN phase (life cycle, capital reserve, maintenance, management, eSPACE Software, system integrations, etc). But that is not the crux of what true Facility Stewardship encompasses.

Here are the 4 Principles of Facility Stewardship:

  1. Properly initial planning, design and construction – If the facility is not planned correctly, design efficiently and built in a professional manner, then we are failing our Facility Stewardship initiative before we even get started….which is why we spend an inordinate amount of time addressing deferred maintenance and other facility “ownership” and operational issues.
  2. Utilization – If you are not going to use the facility to meet your vision and mission, then why have a building? A tent or a rental property would be far less expensive.  Intentional utilization of your facility starts with a focus on meeting your ministry objectives which leads to a need to properly PLAN all activities, utilization, events, worship services, etc. This component of Facility Stewardship is often swept under the rugs. Check out this eBook to help plan events and make sure to check out worshipplanning.com to use the most intentional worship planning and event management system on the market.
  3. Management and Maintenance – ALL facilities require both! Management is the art of planning, managing, being proactive, thinking to the future, vendor management, budgets, etc. Maintenance is the fulfillment of tasks needed to keep the facility operational.
  4. Life Cycle Planning – We have written many blog articles and eBooks on this topic…mainly because the church as a whole does an inadequate job planning ahead for the inevitable costs of capital renewal, replacement and reserves. I don’t need to reiterate what has been written prior.

I hope that clears things up for some.  Facility Stewardship is not just about caring for an existing facility.  All 4 tenets are critical.


Professional vs. Amateur

For the sake simplicity…let’s use the following as definitions of these 2 words:

PROFESSIONAL: A person engaged or qualified in a profession…someone intentional about their craft that is constantly learning and improving.

 AMATEUR: One who engages in a pursuit, study, science, or sport as a pastime rather than as a profession.

Those are pretty broad…so allow me to add some observances.

As a college student trying to master my craft, trumpet performance, I had a very wise teacher tell me the following:

“Amateurs and professionals both make mistakes. What differentiates them is that a professional does not make the same mistake twice.”

Noted!

Since that time, as I have lead people, organizations, projects and yes, myself, I have seen another stark difference:

Professionals accept responsibility…accept “blame” and rebuke. Learn. Collaborate. Improve.

Amateurs on the other hand make excuses. Shift blame. Avoid responsibility.

It is too common in business, leadership, church, etc. that someone is being “paid” for their profession…which automatically qualifies them to be classified a “professional.” HOWEVER…their actions, deliverables, mindset, etc. is more akin to that of an amateur.

As a final observation, I have found that this differentiation is more  of a mindset in lieu of a compensation or “title” issued (I could go on for days on how titles are meaningless if the role performed is not congruent with the title).

I have seen professionally minded people that were volunteers at church…the difference is not about what you get paid. In fact the more a person is compensated monetarily, there is a likelihood of entitlement and complacency…with is not professional.

As you look at your team, are you filling seats with professionals…or something less?

Be INTENTIONAL. Be PROFESSIONAL.


Is Sunday School Making a Comeback in 2019? Part-2

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In our post last week we left you hanging with questions about the trends we are seeing in Sunday AM education programs, such as:

  • Does it mean that every modern church that has worship space and only enough education for Preschool and Children up to 5th grade are going to rush out and buy Sunday School Curriculum?
  • Does it mean that all churches need to add 50% more space to accommodate what could be an insurgence of Sunday AM education offerings?

I don’t think so.

But I would suggest that we need to take note and keep watch. In talking to several church leaders on this matter, they believe that the 20-40 year old adults in their congregation are looking for more connected community.  They want to be in community with others, and given their time starved work and family weeks, Sunday is the best time to do that.  We have also seen more “large group” education environments suggesting a bent toward higher quality teaching and/or broader community may be desired.

I was able to get some additional input from Dr. Thom Rainer and Dr. Sam Rainer (As I type this, the 1984 song by the Thompson Twins – Doctor! Doctor!, keep playing in my mind…sorry for the rabbit trail)

What does this all mean? Where is Robert Raikes when you need him (Bet most of you don’t know who that is)? Here is some of what they shared.

THOM: Many churches are re-discovering on-campus open groups, what we once called Sunday school. Two primary factors contribute to this comeback: childcare is easily handled, and the participants can get their group and worship experience in one trip.

The challenge, of course, is space. Can a church really justify group/education space that is used only one day a week? Or how does a newer church afford to build such space?

The conundrum.

SAM: We (West Bradenton Baptist Church) will not allow off-campus groups to occur in which children are present. There are far too many stories of bad things happening to kids in off-campus groups. Child safety has always been, and will continue to be, a major problem in off-campus groups. If given the choice, I’d rather spend the money on poorly-used education space than risk something happening to a child.

The way we’ve handled our excess weekly space is to open our church to the community. We have a day school and many different groups that meet onsite during the week. We added doors in our hallways that get locked to protect the day school kids during the week.

Given the current times in our culture/society related to safety and security, the ability to have planned, organized and SAFE child care for these “group” education meetings is not to be taken lightly.  As a church, we are addressing issues that were unthinkable 10-20 years ago.  Child security and safety is clearly on the top of that list.

Here is what I believe…take it or not:

  1. God created us for community and fellowship, regardless if it is Sunday AM, Saturday AM, Thursday night or any other time and in any location.
  2. Discipleship…however you live that out…is a critical part of spiritual development and formation.
  3. Online church is great…I love it…but it cannot put its arm around me to pray with me.
  4. I can “self-learn” a lot…thank you Google.  But God has gifted some to be teachers and preachers…I need to learn from them as well.
  5. What we call it…Sunday AM education…is irrelevant.  What we DO and how it supports the WHY of your church is what really matters.
  6. Things change…it is inevitable.  So we need to always be considering the means and methods of impacting our community, our congregation, as well as those who are NOT “here yet”. This means that what once was…may be again, but for different reasons.
  7. Start with WHY – is one of my favorite books of all times by Simon Sinek. Really look deep into your systems, processes, means and the like to understand WHY you do them.  Avoid the 7 worlds of a dying church – “We have always done it this way.” The reason for doing somethings ebb and flow…come and go…are relevant, irrelevant and relevant again. I firmly believe that the Gospel NEVER CHANGES! But our means and methods MUST church.  That is a topic for another day.

Is Sunday School Making a Comeback in 2019? Part-1

I must admit that I never thought I would write a blog with that title. NEVER. And yet…here I am.

For many years from the late 1990’s to say a year or so ago, the pundits, church “leaders’, seminarians, and most of the church consultants…including yours truly…were convinced that Sunday School was like your “Father’s Oldsmobile”…irrelevant. That is how church used to be done.  That worked good for our parents, but modern culture does not support or embrace it (so we said).

During this time churches all across the country said that the solution was “Small Groups” so scads of churches jumped on the Cell Group, Home Group, Small Group, Covenant Group, etc. model. Then we saw a trend toward calling Sunday School by names such a Grow Groups, Discipleship Group, Community Groups and the like.  They were still basically Sunday Morning educational classes.

When a church called us and said – “We are thinking of building a new building on a new site, how big should we build for?” (and we have been asked this question more times than I can count), we would respond with a question, “Do you have Sunday AM adult education.” That one question could swing the tide of space requirements by at least 50% (increased SF needs) and in some cases even more.  Not just that but the amount of parking required if you have more than one service and even more than one Sunday Adult Education would increase.

I am not ready to say we were wrong over the last 15-20 years…but I have a sense that things are changing (The Only Thing That Is Constant Is Change – Heraclitus). Allow me to elaborate.

Our team has developed a master plan process called an Intentional Workshop. The first step in our process is to gather information on attendance trends for that local church. From that data we develop what is referred to as a Program Study. This study looks at current attendance, considers how a church would “like” to do ministry in the future, past trends and a growth factor…usually 100%..with ratios of how many square feet is needed per person per space and function. It is a combination of art and science.

That provides the needed/desired amount of square footage to meet ministry objectives.  That, in turn, is compared to the existing square footage of the campus and the variance is the delta of potential net new space to be added. That is then extrapolated and run through a series of financial calculations and projections to determine a possible cost for the project.  This is then compared to the financial capability of the church.

OK….that is likely too deep in the weeds.  Sorry.

To my point.  We have had numerous clients over the past 24 months that are making us sit up and take note.  Here are the trends we have seen:

  1. All have an active Sunday School/AM Adult Education.
  2. All have educational attendance that is in the 80-90% of the largest AM Worship Service.
  3. Sunday School is embraced by all age groups…and particularly with the families with children.

This fascinates me. What does this mean?  Does it mean that every modern church that has worship space and only enough education for Preschool and Children up to 5th grade are going to rush out and buy Sunday School Curriculum?  Does it mean that all churches need to add 50% more space to accommodate what could be an insurgence of Sunday AM education offerings?

We will continue this conversation next time.

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If you don’t have time to do it right…

Let that quote sink in for a minute…

Ever do a task, and then have to do it again a short time later?

Why? Because you didn’t do it right the first time.

You left it half-done. You didn’t put it away. Or you didn’t give it your full effort.

The difference between doing something and doing it right is usually only a few seconds.

Here are 10 things you should do right the first time according to timemanagementninja.com :

  1. Putting Things Away – Most items take only a few moments to put away. Yet, we leave them out. Do that a few times, and suddenly you have a much bigger mess to clean up.
  2. Finishing a Task to Done – You almost complete a task. You take it to 99% done. But, then you leave it undone. Why?
  3. Cleaning Up – There is a big difference in doing the dishes right after dinner, and doing them the next morning. This simple analogy applies to most clean up jobs.
  4. Throwing Things Away – When in doubt, throw it out. That is a good motto to help prevent clutter buildup. Don’t keep things “just because you might need them again.”
  5. Preparing for a Meeting – How many meetings have you gone to only to discover that the organizer isn’t ready for the meeting? Before a meeting is held, make sure that all preparations are done. This includes the basics like booking a room, distributing materials (in advance!), and setting an agenda. Too many meetings end up creating secondary meetings because the first one wasn’t done right.
  6. Filing Paperwork – Paper continues to be one of the biggest disorganization issues most people face. It piles up so fast it seems like it is multiplying. Yet, if you file that piece of paper when you get, you won’t end up with piles on your desk. It could be as simple as putting it in a file, or scanning it, or throwing it away. Same applies to your email and digital docs.
  7. Addressing Bad Behavior – Don’t let poor behavior go unchecked. Whether it is sub-par performance or simply bad conduct, the longer it continues the more damage it does. Address bad behavior right the first time it happens, and you can avoid a repeat pattern from developing.
  8. Responding to Email – How many times do you open an email only to close it and leave it in your inbox? Don’t fall into this half-done trap. Answer it, file it, or delete. Otherwise, don’t bother reading your email.
  9. Saying No – If you clearly “Say No,” you won’t be forced to continue making up excuses later. Instead, of saying you can’t because of so-and-so, just directly Say No at the start.
  10. Fixing Something that is Broken – How often do you put up with something that doesn’t work? Not only do “broken” items waste time, they can be dangerous when safety is involved. When something is broken… fix it.

I ask Coach Wooden’s question again –

If you don’t have time to do it right, when will you have time to do it again?

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Going, Going…Gone?: HVAC Replacement 201

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Last week we looked at the Going, Going…Gone?: HVAC Replacement 101

EVALUATING THE EQUIPMENT

Now that you have taken all the preceding into account, how do you evaluate the equipment itself? Obviously, if you can afford it, an evaluation from a mechanical engineer is a great approach.

However, that is not an option for many churches, nor is it always necessary. That is especially true if you have no structural changes and you have common systems in place.

As you look at all the system component data you have gathered, first evaluation point is the age of the unit.

That is not always the primary driver, but it is an important one. It should be weighted with the amount of run-time the unit has annually and if it serves a critical use area. For example, a 20-year-old unit would generally be a prime candidate for replacement. However, if it is still functioning and only serves a couple of classrooms that are scheduled infrequently, that would drop it lower in priority than a 12-year-old unit that runs 5-7 days a week and serves preschool classrooms. The ROI and functional return on operations is much lower on the 20-year-old unit.

The next evaluation point is a visual one.

How does the unit look? Is the paint and informational tags faded and illegible? Are the fins on the coils reminiscent of a braille sign? Is there a great deal of rust and oil marks in and around the unit? Does it look good or not? All of these can indicate a unit that is got some potential issues that are more than skin deep. Roof top units that are severely weathered can indicate that they are either old, or in an area that has environmental conditions that deteriorate mechanical equipment. Either condition increases the need to consider replacement, as well as making sure if you are near salt-water or industrial parks you consider coated coils and other parts specified for harsher environments.

Next, you should consider the type of refrigerant being used.

If it is R-22, make plans sooner rather than later. R-22 is no longer manufactured making the amount remaining very expensive. One suggestion is that if you have several units that utilize R-22 on your campus but cannot change them all out at once…have your HVAC contractor purchase recovery tanks for you, and when they pump down each unit (as you can replace them) store the used R-22 on your campus. Use it for your other units as you limp them along until you can replace them. The cost of a recovery tank is made back the first time you must add a pound of R-22 to one of your older units.

Finally, how is your HVAC controlled?

If it has a proprietary control system that can only be utilized with a specific thermostat or control system, it can be a problem.

If your HVAC company is not an authorized rep of that brand, getting parts or trouble-shooting issues can be problematic. Internal controls in the unit are great, but it should be able to be turned on or off through a readily available communicating thermostat.

When an older unit with proprietary controls starts to fail, it may save you money in the mid and long-term to replace it sooner. A unit that requires advanced controls to operate is a unit that is very inefficient when the controls are not operating correctly.

The preceding is intended to help get you started on the evaluation of your facility equipment. It always starts with data collection; what is it, how old is it, where does it serve, how often? Once you know that, you can start evaluating the rest of the physical conditions.

Trust your instincts, if it does not look right, it probably isn’t. There is a great deal of information on why changing a unit out is beneficial, this hopefully helps you begin to prioritize your investments.


Going, Going…Gone?: HVAC Replacement 101

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In less than a second, you get over 83 Million returns. That is what happens when you type in “How do I know when I should change out my HVAC” into a search engine.

You can get some interesting results as you head past the first, second and third pages…but who does that? Results past the third page in a search engine are like the third verse in a hymn…it may be there, but no one ever looks at it.

Regarding your facility, there are some basic things you need to know about your HVAC before you can really make an informed decision regarding replacement.

To begin, what type of systems do you have?

Expected service life will vary based on the size and type of the system you are looking at. A 5-ton unit that you are accustomed to seeing in your home is vastly different (from a mechanical perspective) than a facility that has a cooling tower and chilled water pumped throughout.

Knowing what you have is the first step in being able to determine when you need to change it. It is easiest to identify the components in a life cycle calculator, CMMS, or a spreadsheet.

The next foundational element is to understand how your HVAC systems work and how the components go together.

Having a clear understanding of how the engineers originally designed the system to function is necessary when evaluating effectiveness. The mechanical engineering field is like any other field out there. There will always be certain designs and installations that are somewhat “tried and true” that you will see under specific conditions.

There are also, however, systems that get deployed that are considered cutting edge that do not make the cut long-term. Usually they do not make the cut because they are not the easiest to maintain, which means from a commercial standpoint they are not as profitable.

For churches there is a benefit for staying with more tried and true technology. If you have “cutting-edge” systems or special features that are not maintained correctly, or your service tech does not know all the components that need maintenance, you are not able to effectively evaluate everything.

Consider what subjective data you are going to use as part of the evaluation process.

As you are aware, church members are not slow to provide their opinion on how the system performs. While it is always beneficial to hear folks out and how they feel, it does not mean that it should carry the most weight in your decision. There will always be folks who think it is too hot, too cold, too windy, too loud, etc. Perceived comfort does not always match engineering specifications. A unit can be performing as designed and still not meeting current occupant needs.

Finally, know if there have been any changes to the layouts in the spaces you are evaluating the HVAC.

Many times, churches will open a wall here, close in a space there, make offices out of this large room, etc. Unfortunately, not all changes in room layout are combined with a mechanical engineering review. Your systems were designed to operate with a specific layout. Anytime you change it you can fundamentally change the effectiveness of a unit. It may be operating perfectly, but it is trying to condition a space layout that no longer exists.


In the Long Run…

We have all heard the phrase – “In the Long Run.” Leaders use it regularly to cast vision for what is potentially in the future as well as to muster up encouragement for their team to continue to being intentional with the tasks at hand. Wikipedia defines it as “over or after a long period of time; eventually.” There have been songs written with that title and lyrics.  There have been television shows and movies titles with these words.  It is common…but do we really grasp the implication and requirements to accomplish something “In the Long Run?”

In a recent blog by Seth Godin, he writes:

I hope we can all agree that the long run is made up of a bunch of short runs.
That seems obvious.
The surprising thing is that we live our short runs as if that isn’t true.

That may seem really obvious to you as you read that…but there is some very poignant realities that I fear many of us don’t grasp…especially as it relates to Facility Stewardship.

We have been the evangelists of the concept of Facility Stewardship for nearly 11 years. This is not some quip saying or marketing ploy.  This is reality (See our free eBook). We have written, spoken, and thumped the pulpit on what a church should be saving for capital reserves, and driven home the point what they should be investing in general maintenance, janitorial and utilities.

I understand that much of the things we have been trying to communicate can feel unattainable and overwhelming.  That is true….if you only look at the end of the journey.  But to accomplish any of the principles we promote…and deeply believe in, you have to start somewhere…with “small runs.”  Here are some examples of short runs:

  1. You may not have adequate Capital Reserves for the inevitable costs of capital replacement.  You are not alone.  While we recommend $1-3/square foot annually set-aside funds, you may need to start with $.25…then increase over time.
  2. Use our free Life Cycle Calculator to start to track the items in your facility that are at the greatest risk of failure or replacement.
  3. Your church may not have adequate staffing for facility operations.  We get it…but how can you assist your team to be more efficient by automating tasks that can be automated to free up your team to do what only they can do?
  4. You might need to solicit more volunteers to help until the church can sustain more staff.
  5. Adjusting your HVAC set points by 1-2 degrees can start to save energy/money.
  6. Add some occupancy sensors in rooms (i.e. restrooms) that are notorious for having lights and fans left on for days on end.
  7. Be intentional to do a complete facility walk-thru each month looking for initial signs of issues/failures, and address them before they get worse.

We could go on all day…but you get the point.  These “short run” tasks will compound over time…to the LONG RUN! And let’s be honest, as the Church…are we not in this for the long run?

To discover what COOL can do for you visit www.CoolSolutionsGroup.com


Don’t throw good money after…

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The above title was going to be “Don’t Throw Good Money after Bad” but I am not sure money given to a church for ministry can ever be considered “bad” money.

We have all heard that adage.  Most of us have probably used it when discussing financial prudence and not wanting to waste money. So let me explain how this applies to Facility Stewardship.

As we have written about several times recently, we strongly suggest that churches have a Facility Condition Assessment performed to understand the current condition of their facility, the presence of any deferred maintenance and to develop a plan for long term budgeting and capital reserve. We feel free strongly about this.

There are times that the above is not just good information that could improve your stewardships, but let me explain a time when it is imperative…non- negotiable…must-have…don’t pass Go and collect $200.  When is that time? Glad you asked.

Most of the churches that retain us to perform Facility Condition Assessments (FCA) are generally those with aging facilities. I am not sure we have yet done an assessment with a facility that was less than 25 years old….and most are 50+ years old. These are the most obvious facilities that need an FCA. But there is a growing trend and movement of churches revitalizing aging facilities.  In many cases it is a church that is on a path of ministry, community and vision revitalization and realize that their current facility is not congruent with their revitalization plans.  Others are facilities that have been “adopted” by another congregation as a merger…re-plant…multi-site initiative.

In both cases, it is prudent to understand the condition of these soon to be revitalized facilities. But the often overlooked consideration is the potential renovation/renewal of the facility.  In these cases, it is very important to do a combination of a FCA and “master plan” of the facility.  By doing them together you can avoid potential “double spending” during the process.  If the FAC identifies that the floor covering in an area of the building is past its Remaining Useful life…and that area is also going to have significant renovations, then it would not be prudent to change the carpet now….to only replace it again in 6-12 months.

Another example would be where there are HVAC systems that are inefficient and nearing their end of life, and that section of the building is going to have major systems overhaul.  In that case…keep using chewing gum and duct tape to keep the systems operational until the renovation is ready to go.

In many cases, where we have been involved in such dual assessments, we have saved the church hundreds of thousands of “deferred maintenance” dollars by delaying them slightly longer until the renovation was initiated.

This is not being slack…this is prudent. It is INTENTIONAL.


To Build, Buy, Lease or Rent…that IS the question

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To be or not to be…is no longer the question. For many churches, the burning question is what to do with facilities and do we even need to own a facility. This used to be a question that only church planters were asking.  When you are first starting out, the common question is how do we “house” our church?

Do we rent a school?

Do we rent a theater?

Do we find a store front?

What about using another church on an off night?

Given a number of factors, these conversations are no longer limited to church planters but are being asked in a whole host of church setting including established churches looking to get out from under a deteriorating facility that they cannot afford to churches needing to re-invent themselves. I have been involved in the planning, development and maintaining of church facilities and until recently, this topic was almost never discussed by churches that were more than 1-2 years old.

You may be saying…”Duh, Tim…we knew that.” Or this may be foreign territory for you…so let’s take a little time to explore as well as provide a very practical tool for your own evaluation.

To get started, let’s look at some trends and realities:

  1. For most churches, the cost of owning a facility is the second or third largest expenditure in their budget…usually second to personnel but ahead of dollars actually spent on ministry.
  2. In most regions of the country, as of the writing of this post, they are seeing significant increases in construction costs.
  3. In many cities and towns, there are still a large amount of empty buildings that were vacated as part of the aftermath of the Great Recession.
  4. The life cycle cost of owning a building during a typical 40 year period of time will be about 80% of the total cost of ownership…it takes a great deal to own a building.
  5. In addition, if you own a building, then you…your church…has been tasked to be a steward of the facility entrusted to you by God.  That is no small responsibility.  In fact, in order to keep up with the natural rate of physical deterioration and be prepared for the inevitable life cycle costs, you need to set aside $1-3.00/Square Foot EVERY YEAR.  Do if you have a 50,000 SF, you need to set aside $50 – $150,000 annually.
  6. Things change…if you do not believe this, please stop reading here. Here are some examples:
    • Your church goes through a period of expansive growth or decline…how does your facility flex with those trends?
    • Culture around us changes…do our facilities also morph?
    • Demographics change…not just race and language, but also age and needs associated with those changes.
    • Ministry means and methods change.  Are any of you doing “church”exactly like you did 20 years ago? I am a firm believe that the Gospel NEVER changes…but our means and methods must change.  How many of your churches use Gregorian Chant?  That was mainstream at one time.  Winston Churchill said “We shape our buildings, thereafter they shape us.” If you have a building that is more than 20 years old (maybe even less), that space may actually be telling you how to do ministry.
  7. There is an alarming number of aging church facilities across the country that have declining congregations and deteriorating facilities. Church mergers are on an increase…which I think is really smart.  But what about the old buildings? Is an old building right for your congregation? Consider THIS first.
  8. Church building are hard to sell. As a rule, if your church is not in a commercial setting or prime for re-development, it will likely take 2-3 years to sell and you are most likely going to only net about 50 cents on the dollar of the appraised value.

How do we address these issues?  How do we set up our congregation for long term impact and engagement?

I am not going to advocate one option over another…but what I do want us to do is to consider the options.  The first and only option should not be to buy land and build a building.  The other deeply ingrained paradigm has been that once you own a building, that is it…that is where your church meets.

End of story.

Again, I am not saying that is wrong…but we need to stretch our thinking. Ask WHAT IF…?

We have developed a tool to assist churches vet out some of these options.  This is not the end-all and 100% inclusive evaluation tool, but it is a tremendous resource to do some initial side-by-side comparison of the options.

If you click HERE you can download this tool.  Now, let me walk you through how to best utilizing the tool and some of the methods to our madness:

First, we make the premise that there are 4 basic options (with a multitude of subsets):

  • Rent a school
  • Lease a commercial/retail building
  • Buy a building
  • Build a building

We then break costs down into 3 sections:

  • Operational Costs
  • Sticks and Bricks
  • FFE/AVL (Furniture, fixtures, equipment and audio, video, lighting)
  • Lease Agreement Considerations

There are some formulas built in to the spreadsheet such as:

  1. Cost of TI (Tenant Improvement) for the purchase of a building – we used $100/SF
  2. Cost of new construction – we used $200/SF
  3. Operational costs
  4. Capital reserve costs

Everything else needs to be added based on information gathered in your local context.

Again, this is not the only evaluation tool you should use.  The old adage in real estate is “Location, Location, Location.” That also needs to be factored into your comparison matrix.  Is the location in the right part of the community?  Will there be visibility and signage opportunities?  Is it properly zoned? Is there ample parking, etc.

To round out this, you also need to give serious attention to any leased (not rented…there is difference…renting is usually short term and leasing is long term) facilities or purchased facilities. you need to consider:

  1. If purchasing, is there deferred maintenance you are also inheriting? Learn more HERE.
  2. If you plan on more than 300 seats in worship, does the facility have a fire sprinkler system?
  3. Is the power adequate to support your AVL systems?
  4. How old is the HVAC system and is it adequate to cool an assembly occupancy?
  5. What is the condition of the roof?
  6. Are there enough restrooms?

OK…that probably has your head spinning….which is good.  You MUST consider all of the above before you make a serious financial decision.  Do not take this lightly.  Do your due diligence. Consider all the options.  Seek wise counsel.  Pray continuously.

ONWARD!


Cool Solutions Group helps churches with the planning, development, and management of their facilities!