Catch the Vision: An Update

1. Catch the Vision: An Update October 26, 2014

2. “Now to him who by the power at work within us is able to do far more abundantly than all that we ask or think, to him be glory in the church and in Christ Jesus to all generations, for ever and ever. “ (Eph. 3:20-21)

3. Where we have come from • 2011 – New Beginnings – Setting our future course • No support for continuing status quo • Greatest support for Mission Redevelopment for the future of Arlington Presbyterian Church • Everything put on the table • Planting New Churches adopted as the handbook • 2012-2013 – Vision Team • A Presbyterian witness in South Arlington • Mission Redevelopment vision for APC: • Develop our property for affordable housing • Be a crossroads in the community • Growing and nurturing discipleship inside and outside our walls

4. Where we have come from - 2013 • Affordable housing ground lease proposal approved by APC on November 17 • New worship space for APC • Retail space for new community crossroads ministry • Non-profit daycare • Discipleship Groups • Theology • Fun • Dinner • Moving forward the vision

5. Where we have come from - 2014 • Arlington County HALRB declines to recommend historic designation of APC property in January • APC affordable housing ground lease proposal rejected by Presbytery as too risky in February • New fee simple sale proposal developed based on guidance from Presbytery • No dedicated worship space owned by APC on the property • Possible lease of retail space under market terms

6. Affordable Housing – Current Status • Administrative Commission on Church Property approved the Letter of Intent (LOI) for the fee simple sale on September 30 • Leadership Council discussed the LOI on September 30 and raised concerns about: • The proposed price of the sale ($7.2 Million) versus the current market appraised value of the property ($10.6 million) • The plan for keeping the congregation viable during the period of construction and relocation • APC willingness to agree to an appropriate role for Presbytery in administering the funds from the sale • Leadership Council scheduled to act on approval of the LOI at October 29 meeting • APC congregational vote on approval of the sale scheduled for November 2

7. Affordable Housing – Current Deal • New sale price - $8.48 million • 80% of latest appraised value • After approved at Presbytery meeting on January 27, 2015, purchase and sale agreement will be signed on February 1 • $120,000 will be released to APC, of which $60,000 will be held in escrow. • APC will have naming rights for building, and APAH intends to honor APC by incorporating elements from the church in the building design • APAH will honor APC community mission by providing use of space • On July 1, 2015, APC will have to elect or decline to lease 5,000 – 10,000 sq. ft. retail space at market rate rent • Term sheet to APC on April 1 • On January 31, 2016 the second installment of $120,ooo will be paid to APC, of which $60,000 will be held in escrow • July 1, 2016 is the target settlement date and the time when APC moves to interim location • 2019 – End of 18 month construction timeline • APC moves into new space

8. Crossroads–Community Ministry – Keeping the Vision • We no longer have the luxury of addressing the issue of crossroads and the emerging ministry in community down the road • Under the LOI, we have been asked to commit whether we want to lease the retail space and the form we want the space to take by July 1, 2015 • The fee simple sale proposal will give us one leased space, not the two we would have built under the ground lease proposal • We have not been out engaging with the community since the Vision Team process in 2012 • Session and the Moving Forward discipleship group team has discerned that the present APC leadership are the senders, not the sent, into the community • Session has decided to hire a full-time Mission Developer to send into the community to help us form new community ministries and be ready for us to make the best decision on our future church space next summer • We are actively interviewing candidates • If we are able to hire someone this year, funding for the position is available from the memorial funds

9. Mission Developer • Will be the ground-floor, in-the-neighborhood person exploring starting a new worshiping community and the appropriate place and use of space for that mission • Elements of a Parallel Start (New Beginnings 2011) • Will be tasked with recruiting and developing a core team from APC members and the community for new ministries such as: God Talk on Tap events in local bars, communion in parks, etc. • Focus on serving outside the church building. No church office duties or responsibilities other than use as a periodic platform for sharing and interpreting the emerging mission of neighborhood ministry as appropriate • Will be expected to be in relationship with school guidance counselors, police officers, fire fighters, political officials, community health clinic staffers, etc. to figure out a) what the neighborhood needs and b) how we can pray for community leaders. • Will also be in regular conversation with all neighborhood church leaders • Will help us affirm (or not) our current vision. Are we on track? Do we need to rethink or refine? • Will work with and report to a support team from the congregation and New Worshiping Communities and communicate regularly with Session, the Pastor and the congregation on recommendations and strategies for a new worshiping community and partnership with the current congregation • Would lead grant application-writing and other efforts to seek funding to sustain the emerging mission

10. Budget Issues for 2015 • Total Budgeted Expenses for 2014 $380,705 • Projected Total Revenue for 2014 $324,126 • Deficit being covered in 2014 by use of memorial funds • How do we create room in the 2015 operating budget for Mission Developer and continuing use of consultant for the Affordable Housing redevelopment process? • Need to avoid exhausting or significantly depleting memorial funds next year.

11. Budget Issues for 2015 • Are we demonstrating good stewardship with our budget? • We are supporting staff and infrastructure appropriate for a much larger congregation of active members rather than the 30-35 we currently have • National benchmark budget expense per member - $1700 • Typical budget expense per active member in NCP - between $2,000 and $3,000 • Expense in the 2014 budget per active APC member (35) $10,877 • We are now heavily subsidizing Funshine Daycare • Funshine Daycare rent is $56,283 (7,000 sq. ft. @ $8.00 per sq. ft.) including utilities • Market rent is $140,000 to $175,000 ($20-$25 per sq. ft. for for-profit daycare) plus utilities • Generosity of congregation has allowed us to avoid the issue

12. Budget Issues for 2015 • In September, based on the information at the time, Session decided to proceed with following in preparation for final 2015 budget decisions in November –December. • Funshine • Choice of either: A) leaving the APC building on 4/1/15, or B) agreeing to rent increase to $140,000 annual rate not including utilities - Funshine has agreed to this alternative • Staff • Sharon to half-time effective 1/1/15 • Revising job description with focus on Sunday worship • Steve compensation reduced to half on 1/1/15 • Revising job description as needed • Maria – No change as Funshine has agreed to B) • Priority has been on letting affected people know immediately • Budget discussions will continue at November 16 Session meeting based on clearer information

13. Next Steps • 10/29/14 – National Capital Presbytery (NCP) Leadership Council approval of LOI for APC to enter into an agreement for the fee simple sale of the church property to the Arlington Partnership for Affordable Housing (APAH). • 11/1/14 – Session interview with candidate for Mission Developer position. • 11/2/14 – Congregational meeting and vote on approval of the fee simple sale of APC property to APAH. • 11/16/14 – Session meeting to address final decisions on the staff restructuring and budget for 2015, including decision on proposed terms of call for Pastor Sharon K. Core. • 11/18/14 – Meeting of the NCP. Second reading of and vote on a policy change regarding the treatment of liquid assets from the sale of real property where the congregation does not dissolve, outcome of which will be binding on treatment of APC assets from sale. • 12/14 – Mission Developer hired (?). APC and New Worshiping communities support teams formed and neighborhood support team under development. Review of Mission Developer efforts ongoing. • 12/14 – Session finishes 2015 budget and proposed terms of call for Pastor Sharon K. Core.

14. Summary • We are living into our vision • Affordable housing • Crossroads and community ministry and mission • Growing and nurturing discipleship inside and outside our walls • We are taking steps to demonstrate good stewardship along the journey Questions?