Lutheran Church of the Good Shepherd Building Committee Update May 2014

Building Committee Activities 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.

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

Geotechnical Report Continued 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

Phase 1 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 continued 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.

Additional Option Items 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.

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

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

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

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

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

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