Morningside Assembly Of God

1. Morningside AssemblyOfGod Building Expansion Informational Meeting

2. Development Task ForceMet regularly in the early phase of the planning to identify the best concept – plans were modified later by staff retaining the conceptMembers included: • Kent Claus – Chairman • Lee Crum – Staff Liaison • Bill Bradbury • Dave Larson • Brandon Reynolds • Dan VanderLinden

3. The Challenge • Began meeting about three years ago • Board direction given • Consider building expansion/modification to address the following concerns • Consolidation of Children’s Ministry to one area of building to improve security • Improve traffic flow in hallways • Increase restroom size, convenience, and access • Keep cost contained to $1,000,000 - $1,500,000

4. The Challenge - Continued • Options considered: • Expansion to existing Nursery – too limited for older children • Addition to North of building – too limited in space for older children • Add floor to gym and reallocate all space. The remolded gym to become Children’s Ministry area • Build new gym to south of existing building • Re-design east side of building to become new main entry

5. Options considered: Continued • Addition to west of existing gym adding about 5,794 square feet – space too limited for children’s ministry, expanded into office space • This necessitated moving the office to the north and west, an addition of about 2,775 square feet • With the addition of the new children's space the existing nursery is removed and the existing office space is removed to create a larger traffic friendly lobby. Lobby remodel includes about 4,324 Square feet. • Sent the plan to staff for evaluation, staff gave input and requested more space

6. Options considered: Continued • Added an additional 50’X50’ to the south of the addition bringing the total Children’s space to about 10,794 square feet. • Procured rough estimates for building arrived at about $2.6 million, $1 million over limit set by board • Presented concept to board and total leadership • General feeling - this was still not large enough • Committee consisting of Children’s Pastor and workers met and recommended adding 10’ to the west and 10’ to the east of the above bringing the total area for children’s ministry to about 14,371 including new rest room space.

7. Add Alternates 1 Sound barrier in RR, Offices $8,700 Classrooms, Mothers Room Play Areas 2 Top off Sound walls with $7,800 GWB from top to wall to Roof Deck 3 Sprinkler system update $100,000 in existing Sanctuary Total Potential cost $3,074,898 Options considered: Continued • Total square footage including remodeled areas is about 21,470 square feet • Procured estimates for building and arrived at $2.96 million or $3.08 million including 3 add alternates

10. Sample Play and Climbing Equipment for New Toddler Area

18. Financing Considerations • Security National Bank • Current rates are at 4.5% • Terms can be set at 15, 20, 25 or maybe 30 years • No loan origination fees • We may need an updated appraisal • Abstract update will be required • Total cost for those services about $5,100

19. Financing Considerations - Continued • Current cash available for construction • $420,000 in CD’s at AGFS • Additional $8,500 per month through Construction period = $85,000 for a total of $505,000 • Capital Campaign needs • $475,000 - $850,000….as much as possible to come in during construction period, the remaining to come in over a three year period

20. Financing Considerations - Continued $505,000+Cap Campaign Payment if Amortized over Loan Amount Down Pymt 15 Years 20 Years 25 Years $2,100,000 $960,000 $16,100 $13,300 $11,700 $2,300,000 $760,000 $17,600 $14,600 $12,800 $2,400,000 $660,000 $18,400 $15,200 $13,300 $2,500,000 $560,000 $19,100 $15,800 $13,900 *Payments are rounded to nearest $100 Highest previous mortgage amount = $1,500,000 Highest previous monthly payment = $12,800

21. Financing Considerations - Continued • The $400,000 to come in over the three year period would be used to subsidize the payments on a monthly basis, remainder would go to principal • Current General Fund Allocation - $8,500 • Remainder would be applied to principal • Example • If $11,100 came in from pledges and • Payment amount was $14,345 • $11,100+$8,500=$19,600 • $19,600 – $14,345 = $5,255 applied to principal

22. Next Step • To gain congregational approval to complete design phase and proceed to construction documents stage, then present Capital Campaign program for approval • Use construction documents and drawings to obtain actual bids and launch Capital Campaign • Upon receipt of actual bids meet with congregation to review final cost projections and answer questions

23. Next Step - Continued • Gain congregational approval to enter into a mortgage relationship with Security National Bank in Sioux City for a construction loan that will be converted to a long term mortgage upon completion of the project amount of loan not to exceed $2,750,000. Amount to be based on actual cost less the liquid funds we have plus money received on capital campaign up to time of construction loan closing • Set groundbreaking date • Begin construction in spring as soon as weather conditions permit

24. Next Step - Continued • Provide progress updates to congregation two – three times during construction • Recruit volunteer labor to demo and reconstruct new Youth Room in the vacated Royal Ranger/Children CE space

25. Youth Room Renovation

26. Youth Room Renovation Cost Estimates

27. Morningside Assembly of God General Fund and Missions Giving 2008-2011 General Fund Missions 2008 $1,029,087.00 $271,399.00 2009 $1,012,111.00 $293,498.00 2010 $1,016,474.00 $424,367.00 2011 $1,061,479.00 $501,955.00 Q & A

28. General Fund and Missions $1,200,000.00 $1,000,000.00 $800,000.00 Dollar $600,000.00 General Fund Missions $400,000.00 $200,000.00 $0.00 2008 2009 2010 2011 Year