Lutheran Church of the Good Shepherd Building Committee Update May 2014

1. Lutheran Church of the Good ShepherdBuilding Committee UpdateMay 2014

2. Coordinated with AT Architecture to develop the Phase 1 construction documents • Contracted with SK Geotechnical firm for a soils analysis of the future building site • Committee toured the new Atonement Lutheran Church and discussed with them how that facility design was developed and constructed • Toured the new addition to Apostle Lutheran Church. Building Committee Activities

3. Geotechnical Report Bore 6 holes 4 of the holes were drilled in the approximate location of the new building corners 2 were drilled in the approximate location of the new parking lot

4. Good construction soils and complex foundation construction will not be required • Groundwater was found at an elevation roughly 10 feet below the parking lot • The groundwater will necessitate a continuous foundation drain and permanent sump pumps • The new south parking lot will not be paved for a year to allow for settling Geotechnical Report Continued

5. Construct the entire Education Building shell • Completely finish the first floor • Finish the majority of the basement • Complete the basement connection from the new addition to the existing building. • Demolish the A frame and the existing education wing to the Fireside room • Construct the new south parking lot (see note in Geotechnical report) Phase 1

6. The first floor will house the pre school • The first floor will provide temporary office space for the staff and pastors • The finished portion of the basement will be at a lower quality at this time to save money • The rough approximate median construction cost for this first phase is $2,660,600. Phase 1 continued

7. Additional Option Items will be constructed if funding is available: • Option 1 - Add Narthex - $440,000 • Option 2 - Finish 2nd Floor - $250,000 • Option 3 - Finish 3rd Floor - $120,000 • Option 4 - Finish Basement - $50,000 • Option 5 - Add South Entry - $30,000 • The above cost are budgetary and will be refined as the project proceeds. Inflationary pressures can change material costs in a very short time and have not been accounted for in these estimates. Additional Option Items

8. Acquisition Process • The building committee recommends that a Design-Build approach be utilized • This will involve developing criteria • Issue a Request for Proposal to potential contractors • Interview Potential Construction Contractors • Award the Contract

9. Timeline • Currently – continue raising funds through the capital campaign • Our current campaign has collected $566,000 • We have spent $82,863 • The current balance is $496,400 • Once there a $900,000 in the capital fund the building committee will send out the Request for Proposal to the Contractors • Once there is a $1,000,000 in the capital campaign fund we will begin construction. • Kick off a second capital campaign in September 2015

10. Building Fund Expenses • AT Architecture $28,678 • Bauer Group $15,415 • Hi Tech Construction $ 2,757 • Kairos/Fund Raising $30,031 • Rocky Mountain Doors $ 1,181 • SK Geotechnical $4,800

11. Mortgage Scenario • Projected amount of initial loan 1.5 million • Today’s rate 6% over 25 years (Thrivent’s current rate) • Projected monthly payments $10,300 • Our current capital appeal monthly income is $25,000 • Goal is to retire this debt and then plan Phase 2

12. Next Steps • Continue raising funds through the Capital Appeal. (Begin a second capital campaign in September 2015) • Explore Financing Options • ELCA’s Mission Investment Fund • Thrivent • Local options • Refine the design build and the Request for Proposal Information

13. Next Steps Continues • Communication Person(s) to join the Building Committee • Phase I - Space Use Task Force To Include but not be limited to: • Sunday School Teachers • Pastoral Staff • Office Staff • Music • Youth