We are about to make the final draw on our construction loan to complete the facility project. The initial projection for the cost of construction was $1,965,000.00. When we make our final payment, we will have spent $2,219,086.53 on the construction of the sanctuary and renovation of the pre-existing facility.
While finishing over budget was not unexpected, this increase did exceed our pre-pandemic projections. Much of the increase has to do with increases we see everywhere for materials and labor.
While building at this time did cause overage, finishing when we did was ultimately a blessing. It was recently estimated that if we were starting construction now, the price of the new sanctuary would be $3.5 million or more, a number that appears to be beyond of our financial capacity. Frankly, if we had not started and finished when we did, it is hard to foresee a season when this project would have been a financial option for Southminster.
During this time, we have received $531,431.00 in support of the Joshua Initiative Capital Campaign. This number is less than our projections, but we also haven't had a "normal" offering or attendance for over 18 months now. We are grateful and blessed by those who've shown EXTRA INTENTIONALITY in supporting the church and the campaign in this unexpected season.
Between the amount received in campaign contributions, our $1.3 million dollar construction loan and the resources dedicated to this project from the sale of the Armstrong property; we expect to be able to complete construction and expenses with what we have available, and then start paying down our loan amount as quickly and effectively as possible.
However, these realities have consumed a significant majority of our financial reserves. Especially when we factor in design fees, permits, audio/visual equipment and furnishings that are expenses above and beyond the construction of the facility.
Our post-construction financial objectives will be paying down our mortgage and replenishing our financial reserves. We also need to start planning for a new roof on the existing building, which we project as a need in the next 2-5 years.
Our original goal; an admittedly ambitious one; was to build and pay off the construction project in 4 years. At this point, that seems like it would take a major act of God - and His people. We need to aggressively pay down our mortgage as we move into the second half of the Joshua capital campaign.
WE ASK YOU TO JOIN US NOW IN THIS EFFORT