Sunday, February 05, 2012
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Money MattersMONEY MATTERS FOR IMAGINE AND OUR NEW FACILITIES
Imagine Enables GFC to Move Forward in Faith!
In the spring of 2006, the people of GFC made three-year commitments over and above their regular giving in order to launch a building project that will serve as a tool for ministry for years to come. The commitment period is from April 1, 2006 through March 28, 2009. The following is a summary of financial results of Imagine as of August 1, 2006:
Number of commitments made: 587
Amount of commitments made: $6,518,984
Amount received as of 08/01/06: $925,217
GFC Elders Approve Financial Package
After months of prayer and planning, the elders have approved a new financial plan that will allow for the beginning of construction in September of 2006. As a part of that decision, the elders made the following affirmations:
1. A new loan agreement will be pursued that covers all of GFC's current and expected debts.
2. The $6.5 million in Imagine commitments will be used to pay as we go for as long as we can. Increased commitments and early giving will greatly enhance wise stewardship.
3. The next three annual budgets, while containing no debt service line item, will contain a reserves line item to set aside some funds to ensure that, when debt service arrives, our Ministry Fund will be healthy.
4. We will conduct another Imagine campaign in 2009-2010. At that point, we will have occupied our new facilities for some time, and this second campaign will enable all of us, including new people who are benefiting from the new facility, to participate in debt reduction.
5. Our goal is to be debt free within 10 years or less!
Loan Agreement Reached with 1st Tennessee Bank
GFC has entered into an agreement with 1st Tennessee Bank to help fund the
Imagine project. The total expenses related to the project are as follows:
Construction cost $ 10,700,000
Fixtures and Furnishings $ 1,200,000
Existing debt $ 2,250,000
(includes current facilities and
land purchase from 2005)
New land purchased in 2006 $ 220,000
Construction interest $ 700,000
(amount may vary)
TOTAL $15,100,000
As noted above, Imagine funds will be used first. Then we will borrow the rest according to the following agreement:
· There are no personal guarantors
· Floating rate (LIBOR + 1.8%)
· Rate can be fixed at any time -- our choice
· Loan cannot exceed 75% of appraised value or a maximum of $12 million.
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