Lake of the Isles Lutheran Church
The Mission Project - Resources Group

Note:  All dollar amounts have been removed from this document.  To get those amounts, please contact Ross Bartels or attend the Parsonage Meeting on November 18 or December 2.

The Resources Group was formed to inventory all resources of our congregation, tangible and intangible, which may be utilized in our mission.

Identified Resources of Our Congregation

-  Faith, time and talent of our members - a lot is already being done by our members in God's mission but our individual efforts are not well known/communicated; collectively, we could accomplish more in God's mission;

-  Stewardship - actual and potential financial gifts from our members and others; a much stronger stewardship response is needed;

-  Church land, building and contents - our building space is underutilized;

-  Former parsonage property; and

-  External resources - alliances with community organizations, other faith-based organizations, neighbors, and potential members.

Former Parsonage Property

- acquired in 1960 to gain control of the property and to provide a home for our pastor

- replaced an existing parsonage owned by our Church

- appreciated significantly since it was acquired

- currently unoccupied and in need of significant repairs

Our congregation needs to decide whether to retain or sell the property.  

Retention and related considerations:

Pros

• Retain for use as a future parsonage or a multi-use facility;
• Retention keeps our future options open and may provide for further substantial appreciation in value of the property;
• Parsonages are uncommon but our property has been utilized as such for a very long time (perhaps because of its location); and
• Temporary rental and future occupancy by a pastor will require significant renovations but rental could yield positive annual cash flow assuming renovations are fully financed.

  Cons

• Depending on the nature of a multi-use facility, the cost of renovations could far exceed $X without a source for funding the investment or operating costs;
• Future use as a parsonage would cost about $X, mainly to service the debt related to renovations;
• Home ownership by a pastor is financially more efficient compared to occupying a parsonage, but a parsonage could be beneficial for a younger pastor;
• Demolition and land banking of the property minimizes current investment cost ($X to demolish the building and landscape the property) and avoids ongoing maintenance but idle use provides no cash flow to fund mission; and
• Sufficient unutilized space exists in the Church building indicating the property may not be needed for mission or future expansion.

Sale and related considerations:

Pros

• Estimated net realizable value is $X;
• Proceeds could be used to eliminate mortgage (which would reduce our operating expenses) and make necessary repairs to our Church building (estimated cost for tuck-pointing, window repair, refurbishment of stained glass windows, restroom renovation and relocation of HVAC units is approximately $X);
• An endowment fund could be created with the remaining proceeds and income could be used to fund mission; an endowment would permit our congregation to match sustained mission spending with sustained member involvement in mission;
• Alternatively, the remaining proceeds could be immediately expended to create a significant and immediate impact in our community and rally our members to such impact (recall the success of our Habitat for Humanity project); however, immediate expenditure of proceeds may not lead to an enduring sense of mission for our congregation; and
• Cash resources permit wider possibilities for mission compared to property use.

 Cons

• Real estate prices are currently depressed and properties are taking long time to sell;
• We would forever lose control over the use of the property;
• Sale of the property might reduce our stewardship as members may believe our financial needs will diminish due to our liquidity; and
• We could borrow against the Church property should a future need arise but such financing is generally more difficult to negotiate.