Laurel Heights Church Building Committee Report to Church Board

1. Laurel Heights Church Building CommitteeReport to Church Board Dan Blake, Chair Church Building Committee November 21, 2013

2. Overview • Direction and Assessment • Courses of Action • Approach • Repair • Sell • Recommendation

3. Overall Purpose of Church Building • Primary mission of our church is to be a center of evangelism to share the gospel by making disciples who are making disciples • God has placed us where our community needs us • We are to be the light of the world to our neighbors • We are currently in a location that is a strategic beachhead for city ministry

4. Overall Direction and Assessment • 7 member Church Building Committee • Timothy Banks; Dan Blake; Dan Boskind; Stoney Brown; Patrick Flores; Radames Gonzalez; Pastor Jonakin • Initiated by Church Business Meeting and commissioned by Church Board • 84 man-hours (met on Sep 10, 17, 24; Oct 1, 8, 15, 22; Nov 5) • Reported to Church Board on Sep 19 and today (21 Nov) • Special church board mtgs in Oct and early Nov precluded earlier presentation • Direction • Explore structural damage from flooding, to include mold, mildew, window rot • Explore structural damage from termite infestation • Assess professional agencies and provide recommendation for repairs • Explore property valuation/potential for sale • Assessment • Insufficient information on the extent of repairs needed • Need expert research and firm estimates to take to church business meeting

5. Courses of Action - Approach • Assessed level of professional sophistication required • Volunteer (limited expertise) • Home inspector (limited focus) • General contractor (scope of work) • Architectural firm (expert opinion, coordination) • Determined that an expert consultation is necessary • Desired at least 3 competitive assessments/bids • Contacted 6 companies/individuals for assessment/repair • Contacted 1 company/individual for real estate perspective • Performed temporary shoring, exploratory demolition, etc. to preserve existing structure and enhance Building Committee discussion

6. Courses of Action • Repair

7. Courses of Action – Repair • COA 1: Gerloff Company, Inc. • A remediation/restoration contractor; specializes in fire and water reconstruction with controlled demolition/debris removal • Not interested in church renovation • COA 2: Blake Engineering • Provides commercial, lead, homebuyers and professional home real estate inspection services • Scope not compatible with church renovation • COA 3: Lopez Salas Architects, Inc. • Architect firm that offers programming, master planning and architectural/interior design • Not willing to do assessment/compete with Mainstreet

8. Courses of Action – Repair (cont) • COA 4: Fisher Heck Architects • Specialize in project management and business development for religious architecture, historic preservation, civic-institutional design, commercial and residential design • Focus is on new construction vs renovation • Provided outline of “investigative” services • Sources of water infiltration; define scope of work; give budget estimate of cost of remediation ($4,500) • Does not include cost of repairing exploratory finishes removal • Does not include any remediation expenses • Mold, hazmat (outsource to Terracon, unk$) • Termites (dogs to detect infestation), remove finishes (unk$) • Optional -- measured floor plans ($3,240) • Determined too expensive; consultants at extra cost

9. Courses of Action – Repair (cont) • COA 5: Mr. Chris Schultz • From Wills-Lipscomb|Shultz Architects • Focus on custom home design, master planning with some church architecture support • Provided resume; gave lengthy presentation following walkaround to look at church condition • Offered suggestions • Add metal flashing on window sills; epoxy fill wood rot • Test drywall sections; foam spray fillers for termite damage • Clean drains; repair with concrete caulk; reslope concrete • Seal old window frames with polysulfide • Committee was concerned with initial assessment of structural damage as “none observed” • Moving to Houston/limited availability (2 days/wk)

10. Courses of Action – Repair (cont) • COA 6: Mainstreet Architects • Extensive experience and expertise with historical renovation and preservation; predesign through construction documents, master planning and contract administration • Recommended by San Antonio Historical Society • Conducted preliminary walkthrough and provided outline of “investigative” services (fee of $6,750) • Field work, to include diagrammatic base drawings to identify work required, with photos • Investigate deterioration and sources of water penetration for further discussion and planning • Develop a report of findings, supplemented with photos

11. Courses of Action – Repair (cont) • COA 6: Mainstreet Architects, Inc. (cont) • Outline of “investigative” services (cont) • Outline site issues and drainage • Outline foundation/structural repair as necessary • Outline building envelope repair • Outline interior finish and wood trim repair • Outline window repair • Outline recommendations for eliminating water penetration • Prepare priority plan to outline a sequence of repairs identified as urgent or pending

12. Courses of Action – Repair (cont) • COA 6: Mainstreet Architects, Inc. (cont) • Outline of “investigative” services (cont) • Will engage services of appropriate consultants as necessary, to include: • Civil engineer for site and drainage issues ($1,500) • Structural engineer to evaluate condition of structural members ($1,500) • Waterproofing specialist (unk$) • Available for additional work when authorized by the church at preset rates • Architect ($160/hr); design ($80/hr); intern ($48.50/hr) • Committee impressed with scope/expertise

13. Courses of Action • Sell / Rebuild

14. Course of Action 8: Sell property • Evaluation completed by Chuck Christian, realtor • Same realtor who previously evaluated church property and represented our church at the sale of SAJA • Provided estimate of property valuation • Church is special purpose building (limited market) • Limits alternate uses (additional SAC parking lot; medical building, office building) • Would require retrofitting for ADA compliance and fire suppression (sprinklers) • Approximately 12,000 sq ft in current building • Low ceilings on North end (unfavorable) • Would need to level sanctuary floor and repair existing damages • On less favorable (lower valued) side of San Pedro Ave • Options • Demolish and rebuild on same site • Demolish and sell land only, then buy or build elsewhere • Sell as-is and buy or build elsewhere

15. Course of Action 8: Sell property (cont) • Valuation • Presumes buyer can be found in a limited market • Land only: $350,000 to $420,000 • Land plus building as-is: $320,000 to $360,000 • Does not include repairs or demolition expenses • New construction • Land only: $60,000 to $100,000 per acre • 5 acres of new land = $300,000 to $500,000 • Building only: $100 to $120 per sqft • New building at current size of 12,000 sqft = $1,200,000 to $1,440,000 • Furnishings not included (kitchen appliances, office furniture, sanctuary pews/pulpit, baptistry, security system, sound system, projector/screens, monitors, piano/organ, etc.) • Estimated at $250,000; new pews alone are $50 to $60 per foot • Asphalt parking lot not included (prep work/curbing/paving, striping, lighting, landscaping) • National average $15,552 per parking space x 150 parking spaces per acre = $2,332,800 per acre • Total: $1,750,000 to $2,190,000, plus parking lot

16. Course of Action 8: Sell property (cont) • Committee believes best case scenario is beyond our reach • Mortgage funding exceeds church membership’s ability to sustain at triple the current total combined budget; would require us to scale back to half the current size (only 6,000 sqft) • Prudent course is to repair existing building

17. Recommendation • Church Building Committee’s preferred COA

18. Recommendation • We recommend COA 6, Mainstreet Architects, Inc. • Most complete proposal • Highest rated architectural firm • Most inclusive of all directions/assessments • Most economical for comprehensive professional advice • Board authority for $9,750 (total under $10,000) • We make a motion that the Church Board approve the Aug 6, 2013 proposal from Mainstreet Architects and move for immediate funding

19. Way Ahead • Recommended next steps • Allow Mainstreet Architects to perform a professional and comprehensive assessment as described in their proposal and generate a report • Review their report at next Church Board meeting • Schedule next Church Business Meeting to share repair needs/options based on report • Retain Church Building Committee to follow repairs through to completion

20. Questions?