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GILBERT Mission of DCLC

GILBERT Mission of DCLC. 08/21/07 DCLC purchased 4.15 acres of land in Gilbert for $935,300.00 10/30/07 DCLC signed a 5 Year Lease for Worship Space. 06/01/08 DCLC began worship in the Professional Plaza.

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GILBERT Mission of DCLC

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  1. GILBERT Mission of DCLC

  2. 08/21/07 DCLC purchased 4.15 acres of land in Gilbert for $935,300.00 10/30/07 DCLC signed a 5 Year Lease for Worship Space. 06/01/08 DCLC began worship in the Professional Plaza. 04/09/09 DCLC received Notice of Trustee Sale for the Professional Plaza and an Estoppel Certificate was put in place to prevent foreclosure. 04/01/10 DCLC notified that New York Community Bank purchased Desert Hills Bank holdings from the FDIC and to henceforth pay rent to NYCB. 12/30/10 New York Community Bank foreclosed on Owner of the Professional Plaza.

  3. 01/17/11 DCLC Council opened conversations about options in Gilbert. 02/21/11 DCLC Council voted to explore funding options with Mission Investment Fund (MIF) and to let NYCB know of our interest to purchase the Professional Plaza. In addition, DCLC Council called for an Informational Meeting and a Congregational Meeting and Vote. 03/02/11 NYCB agreed to sell Professional Plaza to DCLC for $1.05 Million. 03/03/11 MIF conditionally approved $1.1 Million to DCLC. 03/12/11 Informative Meeting held. 03/20/11 Pending Congregational Meeting and Vote

  4. MIF Conditional Loan Approval • Approval was for $1.1 Million plus they want us to pay off the Land loan, so the final Loan Approval is for $1.877 Million. • Current Rent in Gilbert for two Suites is $6,051.36 and the Land Loan is $4,715.00 per month. In August, our Lease is due for another adjustment up to $6,339.99. But for now, we are paying $10,766.36 in rent and mortgage. • At $1.877 our mortgage payment will be $9,960.00 with a monthly savings of $806.36 and we would be owning for less than build costs. • One Tenant is currently struggling in the Plaza and pays $1,617.00 per month in base rent. Our effective mortgage could be $8,343.00 from the $10,766.36 currently being paid in rent and mortgage.

  5. From the beginning, space was an issue in Gilbert. We were the first tenants to occupy space and we watched as a Preschool and Nail Salon moved into the Plaza. We wound up subleasing space from Sunrise Preschool who didn’t use their facility on Sundays so that we could offer Sunday School in a more inviting manner. When the Preschool closed, we approach the Landlord about leasing out the space. We were able to secure a month-to-month lease well below Market Rates provided we did our own repairs. Soon after the Preschool failed, so did the Nail Salon. A new Nail Salon is trying to make a go of it, but they are off to a slow start. The Lease for the Nail Salon will most likely have a non-disturbance clause allowing them to operate their business – we cannot see the lease until Escrow is opened. Fortunately, the IRS does understand Tax Exempt Business rent space to others. As long as Substantially All of the Property is used for the Tax Exempt Business (as defined by the IRS to be 85%); space can be rented and not jeopardize the Tax Exempt Status. Likewise, other Suites can be rented out, but Missional Functions would be preferred to keep within the 85% Rule. Still, we can always file an Unrelated Business Tax Return Form 990-T and not lose our Tax Exempt Status.

  6. Discussion

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