Budgeting Recurring Church Facility Costs

Just like your personal home payment, Advisors recommend that a church’s total facility expenses should not exceed thirty-three percent (33%) of a church’s annual income. These facility costs include both debt service (principal and interest payments) and the costs to operate the property (utilities, exterior maintenance, mechanical system maintenance, interior cleaning, insurance, trash, snow removal, etc. Advisors generally figures that is costs approximately $3.50/SF to operate your church property.

If you would like assistance in figuring how much debt your church might be able to comfortably handle, or the payment for a specified loan amount, please give Scott McLean a call at 303-534-3344 or email him at scott@developco.com.

Costs to Create a new Church Facility

An expanding church’s goal is to create a fully functioning church facility at the lowest possible cost that will succeed in retaining existing members and capturing new attendees. By “fully functioning” we mean all project costs including formulating a strategic planning document, acquiring real property, retaining professionals for engineering, designing, fund raising, financing, construction, installation of audio, visual, lighting, security and outfitting with furniture, fixtures and equipment—all costs from A to Z.

Over the years, Development Advisor has been involved with every kind of church facility project—from renovating an existing church or retail box, to acquiring land and developing ground-up. The total project costs for these projects can vary widely.

Here is the spectrum:

Existing Church. Acquisition: $60-120/SF; Renovation Costs: $20-100/SF for same use. Total Costs: $80-$220/SF

Existing Big Box Retail. Acquisition: $60-100/SF; Renovation Costs: $80-$140/SF for adaptive reuse. Total Costs: $140-240/SF

Ground-Up Development. Total Costs: $265-$295/SF for a fully functioning church facility.

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Renovation of Existing Building—Minor Interior Renovations (2012)

Crossroads Community Church (Parker, Colorado) purchased the former Burt Chrysler, Jeep property that was originally constructed in 2006 and in excellent condition. Advisors coordinated minor renovations to convert this into a fully functioning church facility. Here are the details of the project:

Building Size. 45,000 SF on 8.7 acres.

Seating. 550 in Phase 1 up to 1,000 in later phases.

Total Project Costs. Maximum budget was $6,900,000 ($230/SF) for 30,000 SF (67% of building being renovated) including acquisition cost ($4,500,000) of the existing 45,000 SF automobile dealership building. Here are the details of the project:

• Renovation Costs: Fransen Pittman contract including all change orders - $950,000
• AVL, Acoustic treatments - $336K
• Furniture - $90K of furniture
• Cabling, Phone, Security - $50K
• Theming – ‘Wow’ factor and interior signage - $20K
• Exterior Signage - $12K
• Design, Project Management - $215K
• Due Diligence - $22K

Renovation of Existing Shell—Complete Interior Improvements (2011)

Stapleton Fellowship Church (Denver, Colorado) purchased a historic building (former aircraft hangar) that had all horizontal in-place and a renovated shell finished. Advisors coordinated all the renovations from this condition. The cost per SF was quite high for so much already in place because it’s amortized over a very small area. Here are the details of the project:

Building Size. 8,723 SF plus installed new mezzanine for additional 4,373 SF on second floor (with elevator). Total = 13,098 SF

Seating. 300-350 in auditorium. Christmas Eve (2012) had 400+ attendees.

Total Project Costs. $4,173,000 ($319/SF) as follows:

• Building Acquisition: purchase of existing renovated core & shell - $1,825,000
• Renovation Costs: Fransen Pittman GC contract including all change orders - $1,412,000
• AVL, Acoustic treatments - $350K
• Furniture - $55K
• Cabling, Phone System, Security - $32K
• Theming - ‘Wow’ factor and interior signage - $66K
• Exterior Signage - $12K
• Window treatments - $30K
• Building permit including increasing size of water tap - $42K
• Design, Project Management - $300K
• Due Diligence - $20K

Ground-Up Development—Development of a New Church Facility (2007)

Living Way Fellowship (Highlands Ranch, Colorado) purchased a 5 acre land parcel in Highlands Ranch at the corner of Broadway and Wildcat. Advisors represented the church through project planning, site acquisition, design, engineering, construction and outfitting of the building with audio, visual, lighting, furniture, fixtures and equipment. Here are the details of the project:

Building Size. 28,000 SF

Seating. 500 seats

Total Project Costs. $7,674,000 ($274/SF) as follows:

· Land Acquisition: 5 acres for $1.34 million

• Construction Costs: Waner Construction GC contract including all change orders - $4.63 million
• AVL/Acoustic treatments - $150,000
• Finance Fees/construction interest/bonds costs – $315,000
• Building permit/ water taps/testing - $300,000
• Professional Services (design, engineering, project management - $615,000
• Cabling, phone, security, window coverings - $75,000
• FF&E - $105,000
• Playground - $50,000

Ground-Up Development—Development of a New Church Facility (2009)

Mission Hills Church (Littleton, Colorado) purchased a vacant land parcel in SouthPark. Advisors was successful in changing the zoning to allow for a church use. Advisors then acted as the representative for the church through the design, engineering, construction and outfitting of the building with audio, visual, lighting, furniture, fixtures and equipment. Here are the details of the project:

Building Size. 100,000 SF

Seating. 1,100 expandable to 1,700

Total Project Costs. $28,372,000 ($284/SF) as follows:

· Land Acquisition: 20 acres for $5.88 million

• Construction Costs: Fransen Pittman GC contract including all change orders - $16.1 million
• AVL, Acoustic treatments - $1,800,000
• Finance Fees, construction interest, bonds costs – $1,100,000
• Building permit, water taps, materials testing - $1,065,000
• Design, Project Management - $1,722,000
• FF&E - $720,000 – included $55,000 of Theming

If you have questions, please don’t hesitate to email us at info@developco.com.

Parker Colorado Church Purchases Car Dealership

Development Advisors, LLC is pleased to announce that Crossroads Community Church purchased the former Burt Chrysler Jeep Dodge Automobile property, located at Lincoln Avenue and Twenty Mile Road in the Town of Parker, Colorado, on February 29, 2012, for $4.5 million. This 45,449 square foot building sits on a 8.7 acre site, was constructed in 2007, and appraised back in March, 2007 for $13.2 million. It will make an ideal church facility because of its’ prominent visibility, excellent egress and abundant existing parking. With 455 parking spaces on-site, CCC will ultimately be able to create a worship center of approximately 1,000 seats. Lincoln Avenue offers full-motion traffic signalization at the southeast and southwest corners of the site; and Dransfeldt Road and Twenty Mile Road offer the distance necessary and stacking needed to handle large traffic volumes between church services. DA will continue to orchestrate the renovation planning and execution. Lee Architects has been performing design and Fransen Pittman will be the general contractor. Construction will commence by April 1, 2012 allowing CCC to move in this summer.

For more information, please contact Mr. Scott McLean or Mr. Timothy Dreessen at Development Advisors at (303) 534-3344.

Class "A" Church Listed FOR SALE in Genesee, Colorado

Development Advisors is pleased to announce the availability of another Denver area Class “A” Church property. This 51,200 SF Church property, located along I-70 in Genesee (just west of Golden) at 24887 Genesee Trail Road, was previously home to Lookout Mountain Community Church. Constructed in 2002 for approximately $11.8 million, today it is being offered for sale for only $4.98 million. Along with the main church property, you may choose to purchase one or both of the detached office buildings for administrative offices and/or adult education space located at 526 Commons Drive (7,010 SF) and 534 Commons Drive (10,742 SF).

For more information, you may click here or you may contact Scott McLean at Development Advisors at (303) 534-3344 x103.