In late December 2018, the Bon Air Baptist Church (BABC) Church Council formed the Village Property Team to prayerfully discern a wise course of action for our property at 7250 Patterson Avenue.
The members of the team, Dave Fairchild (chair), Bob Bass, Matt Buckley, Brian Davis, Hal Hayes, Jan McNee, and Pastor Tom Stocks (ex officio), met every two weeks through March 2019. They met several times with dozens of parties interested in the property and had detailed, thoughtful, and deep discussions about which course of action would best serve the mission of BABC to “Proclaim the Grace of God and Grow Followers of Christ.”
In early March 2019, the Village Property Team brought forward a recommendation to Church Council that the property be sold to Ukrop’s Homestyle Foods for $2,000,000. Church Council carefully considered the recommendation and options and has brought forth a recommendation to church members for a vote:
CHURCH COUNCIL RECOMMENDATION
Church Council formed the Village Property Team shortly after the Village Campus closed at the end of 2018. Their charge was to prayerfully consider a prudent course of action for the property and to bring a recommendation to Church Council.
After receiving and reviewing all viable offers, Church Council recommends that Bon Air Baptist Church accept the offer from Ukrop’s Homestyle Foods in the amount of $2,000,000 for the purchase of our property at 7250 Patterson Avenue in Henrico County, Virginia.
SPECIAL CALLED BUSINESS MEETING AND VOTE
Wednesday, March 27, at 6 p.m. | Buford Road Campus
Members of all BABC campuses are encouraged to attend.
FREQUENTLY ASKED QUESTIONS (FAQ)
In the spirit of our culture of Emotionally Healthy Spirituality and Relationships, the following is a list of Frequently Asked Questions members might have about the recommendation in advance of the meeting. If, after reading this information, you have further questions, please send an email to:
FAQ: THE PROPERTY
1.
Does it make sense for us to continue to own the property and to lease or rent it?
Given the costs associated with the extensive facilities and system upgrades needed for the property to reach a generally accepted standard, the Village Property Team determined that it makes more sense to try to sell the property.
2.
What about the organizations still using the facility: R.A.I.N., Cardinal-Newman Academy, and the Kechin congregation?
We have leases in place that run through 7/31 and 8/31 with Cardinal-Newman and R.A.I.N., respectively, and no lease in place with Kechin. All are aware that these agreements will not be renewed with BABC. Any potential buyer was also made aware of the existing obligations and that they will need to uphold them.
3.
We received this property as a gift. Why don’t we give it away as a gift to another church?
BABC has invested over $700,000 in the Village Campus (operating and capital in nature) that were not offset from increased membership giving. In addition, the Buford Road Campus has sacrificed many needed upgrades and maintenance needs (roof repair, parking lot resurfacing, HVAC replacement) over the last five years. The sale of the property will help us to meet deferred needs and will act as a foundation for capital needs for the Buford Road and James River campuses.
4.
Does BABC have the right to sell the previous New Covenant property?
Yes. The deed was legally transferred to BABC with no future restrictions.
5.
Were there any restrictions to selling the property such as usage restrictions, zoning, or required improvements?
The property is currently zoned for light office use (medical, administrative, childcare, church). Henrico County indicated that any additional exterior expansion to the facilities would trigger new requirements on the site including additional lanes on Horsepen and Patterson, sidewalks, and storm water drainage with an estimated cost of $300,000-$800,000. This information was provided to all interested parties.
6.
Was continuing a church or other ministry on the site a priority?
Yes. We reached out to the Baptist General Association of Virginia (BGAV) and realtors that have church clients to ask for church leads.
See question 8 for their responses.
7.
What is to become of the contents of the Village Campus property?
The contents have been inventoried. Most of the contents will be used at the Buford Road and James River campuses as needed including furniture, audio/visual equipment, kitchen contents, landscaping equipment, and supplies. We have received a bid to remove the playground equipment from the Village Campus and reinstall it at the Buford Road Campus.
FAQ: THE PROCESS
8.
How did the various parties learn about the availability of the property? Did we advertise or use a commercial real estate firm?
Through the BGAV and the personal networks of members of the team, word quickly got out the property was available. In short order, we had inquiries from 8 churches, 1 school, 1 multi-family developer, 1 public organization (Henrico County Public Schools), 1 commercial, 1 family-owned business (Ukrop’s), and 3 real estate firms. We met with three highly qualified real estate firms to make them aware of the property availability. However, with so much interest in the property, we felt paying a large commission was not worthwhile.
9.
Was an appraisal done on the property?:
Yes. The property was appraised as a church for $1,960,000; however, because of so few church sales in the area, most of the comparable sales were in northern Virginia and Tidewater.
10.
Did the team approach real estate or zoning experts to gain knowledge of the potential of the property?
Through real estate contacts and third-party discussions with the county, we recognized the highest potential value would be if the property were to be “up zoned” to dense use (more development/tenants per acre). However, the county suggested that because of the surrounding residential area, any “up zoning” would be difficult and most likely a long and expensive process.
11.
Did all interested parties visit the property, and did we disclose all of the issues with the facilities?
Yes. All had at least one site visit; five had multiple visits. We were completely transparent and forthright in sharing all known issues with the property and the newly discovered issue that the county could require roadwork should any modifications be made.
12.
What viable offers did we get?
Three entities made offers ranging from $250,000 to $2,000,000 with various closing contingencies. The offer from Ukrop’s was 20% higher than others and has no unusual contingencies.
13.
Did any churches make an offer?
Yes. A small congregation church made an offer of $250,000. Another offer came from a non-denominational multi-site church headquartered in Virginia Beach in the amount of $1.6 million. That offer would require an extended closing period for bank loan funding.
14.
Did you consider selling the property for any commercial use?
No. Our preference was to find a church or school. Ukrop’s has a long and respected tradition of demonstrating Christian business values (not being open on Sunday, no selling of alcohol or tobacco, great relationship with Baptists in Virginia) and thus was not considered just “any” commercial buyer. We did not actively seek out commercial buyers.
15.
Are there any contingencies in the offer from Ukrop’s?
There are no contingencies (financing or county approvals) — only normal title, survey, and environmental report contingencies.
16.
What costs did the church incur in marketing and selling the property?
The proposed sale has no realtor or other fees. Appraisal and environmental assessment fees have totaled $5,500, and legal fees were pro bono. No additional costs are anticipated.
FAQ: THE RATIONALE
15.
Why sell to Ukrop’s over the church offer?
The decision to recommend selling to Ukrop’s was not made easily and without thoughtful and prayerful discernment. Some of the factors considered:
— BABC is the third church to not be able to reach followers of Christ at that location. Just like some locations are not ideal for retailers or restaurants, this site could be problematic for churches.
— There are 12 other Christian churches within 2.5 miles of this property. Hope Church, one of the fastest growing in the area, is 5.9 miles away.
— The price difference is significant and can have a dramatic impact on the mission of BABC and our current footprint.
— The Ukrop’s offer comes without any contingencies, with a fast close, and with financing already available.
— Ukrop’s is one of the only commercial enterprises we would even consider for the property as they have deep roots as a Christian-based, family-run organization.
16.
How does selling this property to Ukrop’s help BABC forward its mission?
Proceeds from the sale will be invested in facilities and infrastructure at BABC at both the Buford Road and James River campuses.
— Significant maintenance and necessary improvements have been deferred at the Buford Road Campus during these years of investing in launching the Village Campus and relaunching the James River Campus.
— The James River Campus has experienced remarkable growth over the last 6-9 months and is at full capacity at their 11:00 a.m. service and seeing upticks at their 9:30 a.m. service. Investment in expanding our presence on those 9 acres will enable BABC to reach the unchurched in western Chesterfield and eastern Powhatan counties.
17.
Will the sanctuary and education buildings continue to be used?
Our understanding is that Ukrop’s intention is to use the main sanctuary building as a retail center for its bakery and prepared foods products. The future of the education building remains unknown as it has many limitations and antiquated mechanical systems. It likely would need to be replaced.
FAQ: NEXT STEPS
What if the recommendation is not approved?
If the current recommendation is not approved, the Village Property Team will reach out to those organizations that made offers to see if they are still interested with the
anticipation that offers may be lowered.
If the recommendation is accepted, how long will it take to close?
The offer has a closing period of not more than 75 days. Also, Ukrop’s would keep the leases in force with R.A.I.N. and Cardinal-Newman and has indicated a willingness to work with these entities during rezoning and through development.
FOR MORE INFORMATION
Email additional questions prior to the Special Called Business Meeting on Wednesday, March 27, at 6 p.m. to:
