Strategic Planning Committee History & Present Status Town Hall November 17, 2016

History Formed October 2014 as Ad Hoc Committee by Fr. Linh Changed name to Strategic Planning-December 2014 Began Analysis of three potential options Started debt reduction campaign Jan. 2015 Began Town Halls- February 2015 Analyzed Our Mission

History-Cont. Developed Strategic Plan- Sept. 2015 Debt Retired-Sept. 2015 Began Feasibility Discussions with City Tentative Site Selection- Oct. 2015 Presentation to Diocese- Oct. 2015 Approval to Proceed w/Cardome initiative & Due Diligence Negotiations w/City & Existing Tenant-Fall 2015/Winter 2016

History- Cont. April 2016-1) Existing Tenant withdraws 2) Short Term Lease negotiated Short Term Lease Terms 1) 6 Months 2) $1 month/We pay expenses 3) We operate 4) Due Diligence 5) Capital Lease Salient Terms 6) Use Grant

Short Term Lease Operations Continued Site Due Diligence Analyzed Operational Costs Restarted Operations Began Parish Site Based Activities Initiated Community Outreach Started Development Initiatives Identified Roof as Most Critical Expenditure for Grant

Fall 2016 Grant Not Expended by End of Short Term Lease (Oct. 2016) Short Term Lease Extended to Jan. 15, 2017 Capital Lease Negotiations w/ City Not For Profit to be Established Facility Review Continues for Update Committee Restructuring

Capital Lease Status Very Close on Final Terms Key Terms: 1) 20 years w/purchase option 2) $1,000,000 purchase price 2) $50 K ($50,100) rent per year w/ periodic Adjustments 3) Credit for $50 K per year toward purchase price 4) Prepayment Allowed w/ no penalty 5) We operate, pay expenses/keep revenue 6) Economic development plan

Capital Lease- Cont. Put Option but: 1) Credit (some) for capital expenditures 2) Two Year Safe Period 3) Credit for all paid @ $50 K per year 4) Price remains $1,000,000 adjusted for allowable credits 5) Time to Exercise (currently 90 days)

Current Status Still Waiting on Roof Grant completion Will Continue to Negotiate w/ City on Capital Lease w/ Put being biggest issue Operations Continue Short Term Lease Extension? Status of Structural Issues Needed Diocesan Approval Capital Lease Final Terms Follow Diocesan Building Commission Guidelines

Operations Review Organizations Parish Related Events Community Theater Boy Scouts Scott County Schools Georgetown College Parish Related Events Various Committee Meetings RCIA, Bible Study, Volunteer Picnic, etc. Knights of Columbus Events – Picnic, Meetings, Etc. St. John School Events – Graduation, Athletics, Robotics, Music, Etc. For-profit Rentals Weddings Receptions Parties

Financial Review Cardome Operations is part of our normal Parish and School Budgeting Process. Impact of Cardome was estimated to be Loss of $121K in CY 2017. 2016-17 Annual Budget is loss of $44K Current operations are running significant less and close to breakeven. Winter Months – anticipate higher costs related to heating and snow removal with reduced rental income. Anticipate Higher Rentals in the Spring due to Bridal Fairs and Shows (missed in 2016).

Financial Review Top Priority – Move SJS to Cardome First Step: Debt Reduction (Complete) Next Step: Execution of Capital Lease Third Step: Follow Diocesan Building Commission Flowchart

Financial Review Financial Cost Estimated to be: High: $1.4 million (Diocese Estimate) Low: $400K (SSFJ Estimate) How do we Fund the Capital investment: Sell Double Saints Property Solicit Additional Funding Timing of Project Dependent on Capital Lease August 2017 or December 2017 or August 2018

Establish Not-For-Profit Filed paperwork with support from the Diocese of Lexington, to form a 501(c)3 charitable organization within the state of Kentucky as a Limited Liability Company (LLC) Executed an operating agreement for The Cardome Renaissance Centre, LLC. Established guidelines for the relationship among Ss. Francis and John Catholic Parish, St. John School, and The Cardome Renaissance Centre, LLC. The buildings and grounds associated with Cardome are to be used by the Parish/School, and the Cardome Renaissance Centre, LLC in partnership and in furtherance of their respective and mutually compatible missions.

Parish Mission Guided by the Holy Spirit, we are an evangelizing community of faith sustained by the Eucharist. Through our commitment to stewardship, Catholic Education, and life-long formation, we welcome, nourish, and empower our family, challenging one another to live out the Gospel.

School Mission St. John Catholic School, as a mission of Ss. Francis and John Catholic Parish, provides pre-school through 8th grade, Catholic education to assist parishioners in fulfilling their duty to educate children in the Catholic faith, and to form children of all denominations with strong Christian values in an exceptional academic environment.

Not-For-Profit Mission The purposes for which The Cardome Renaissance Centre, LLC are formed are: to provide and maintain facilities for the interaction of religion with society; to provide opportunities for the exploration and appreciation of the arts, science, religion and the humanities; to provide outreach programs to the community to facilitate and to promote an understanding of the various interests, groups and societal segments through interaction within Cardome.

Purpose for Not-For-Profit Manage the property and buildings associated with Cardome including the maintenance of the historic structures associated with Cardome. Responsible for utilities, maintenance, insurance and renovations, deriving funds from: the Parish/School, the hosting of “for pay” events (rentals) as coordinated with the Parish and School, additional funding solicited in the form of donations, gifts, and grants from various private, public, and governmental institutions. Renovate and construct facilities as the first major renovation project of the LLC, to make feasible the operation of the school on the Cardome property.

Purpose for Not-for-Profit Seek funding specific to the renovation and restoration of Building 1 so that the historic nature of the building may be preserved and the meeting space contained within can be accessible and compliant for hosted events. Manage the operation of outside rental events hosted on the Cardome property in coordination with the parish and school. Manage the relationship with any tenants occupying space on the Cardome property including, but not limited to, handling maintenance requests, rental income and collection, contracts and negotiations. Seek out and manage the relationship with community partners to provide education and appreciation of the arts and sciences, specifically, the establishment of a Fine Arts Program, a Music Academy, and a Community Theatre.

Parish Obligations The operation and expenses incurred by the functions of the Church and the School in furtherance of meeting their respective missions as stated above and in the day to day operations of the facilities and equipment they occupy, maintain, or use. The Church maintains its obligation to meet those expenses through the offertory and through revenue generating enterprises like fundraising, leasing, and investment returns. The School maintains its obligation to generate revenue through the collection of tuition and fees, fundraising events, grant awards, federal and state assistance and the collection of donations and gifts.

QUESTIONS?