LEGACY PROJECT UPDATE
Dear Kingdomcity family,
As we continue together on this faith-filled mandate of establishing new territories for future generations throughout Perth, this page will provide periodic updates on the Perth Legacy Project, to keep you informed and included on our journey.
We celebrated the official opening of the new Mandurah building on 13 December 2019!
Further fit-out works are underway with regards to youth and kids’ facilities, acoustic management, landscaping and offices.
From a finance perspective the sale of Mandurah Terrace, as well as Legacy Pledges fulfilled, have provided sufficient capital to fund the initial 40% required for the project.
The balance of funding required to deliver the project has been secured through a third-party loan of $4.5M, that has now been fully drawn down.
Although Council has issued our building license, a major hurdle to the building design remains.
We have designed our new building with specific occupancy numbers in mind for the main and kids’ auditoriums. Based on the maximum number of car bays we have on-site, our project has, however, been approved with reduced occupancy numbers of 80% (main auditorium) and 50% (kids’ auditorium) of our respective occupancy targets.
Reducing the size (footprint) of the building in order to create more car bays can also adversely impact on occupancy rates and build cost if we need to add, for example, a second level.
Our board is currently considering the best way forward, which at this stage points to further required changes to the design to ensure that we can achieve our occupancy target and produce an outstanding space for our kids’ ministry.
As an alternative to reducing the footprint of the new building, we are also exploring the possibility of purchasing additional land to allow for more car bays so that we could achieve the ideal occupancy ratio. To this extent we have placed a hold on the adjoining block of land and are in the process of completing due diligence on this possibility. Purchasing additional land for car bays will also necessitate design changes in order to integrate the additional land with the building. We have received preliminary advice that the availability of additional land might reduce the building costs, which in part could offset some of the additional capital required to purchase additional land.
We are projecting to complete our due diligence by mid-April and will provide a further update then on an indicative building project timeline.
To date, we have invested over $1M in the project which covers 50% of the original land purchase price and consulting fees for engineering, council, etc.
We have secured a preliminary funding commitment of $2.3M from a “big 4” bank, which is less than we expected, due to changes in the bank’s loan to value ratios and other criteria they adopt for what they consider to be a specialised project of this nature.
We have received sufficient pledges to fund the Legacy Project, however, only $2.206M of those pledges have actually been received.
A further constraint being that we need to receive additional funds from the Legacy Pledges in the near future, in order to produce our share of funding first, before we can draw down on a loan and proceed with construction.
We have completed major renovations during 2019 to facilitate broadcasting and Greenhouse with our focus in 2020 turning towards upgrading our car parking, landscaping and toilet blocks.
Our Canning Vale property currently has a mortgage of $2M, which along with the cost of the renovations are envisioned to be funded from Legacy Pledges received and operational surplus.
Upgrades to our stage, broadcasting and sound are currently underway with our main focus remaining to pay off our $2.9M mortgage.
SUMMARY OF FINANCES
We have entered the last year of the Legacy Project:
Legacy Pledge funds received to date is $2,206,506.80
Overall, we need to raise approximately $12.6M to be debt free on all four campuses, based on current debt commitments and subject to change pending the outcome of the design decision for our new Butler building. We also need to secure campuses for our three newest locations in Midland, Western Suburbs and Rockingham.
While we are confident that once these projects are complete, we can service our loans with continued wisdom and good governance, we are believing to eradicate the debt as quickly as possible, as the church continues to grow and remain healthy in all areas.
This update relates only to the Legacy Project and it is important for context to know that the overall the state of our current finances (from both an asset and income point of view) is very healthy and always has been over the last 8 years. Our Board, finance team and those who administer our daily operations continue to do so with diligence, good governance and wisdom.
Sincere thanks to everyone who has commenced sowing into the Legacy Project. If you have pledged sometime in the past and can’t recall the number or would like to pledge to the Legacy Project, then please email us at firstname.lastname@example.org
In closing we would sincerely appreciate your heartfelt (and ongoing) prayer support to the Legacy Project in the following areas:-
- Wisdom for all involved in stewarding the building and financing of these projects at every level.
- God’s increased favour and financial blessing on all those who are giving sacrificially to this project.
- That God’s people would be overwhelmingly blessed, that these projects will be complete with excellence and we would be debt free in an unusually quick time.
Thank you for standing together in unity as we continue to bring the reality of God to our world.
Global General Manager
On behalf of
Kingdomcity Perth Eldership
HOW TO GIVE
AUTOMATED GIVING & DIRECT DEPOSIT
To transfer funds using your own online banking facility, please use the following bank details for the Legacy Project:
Bankwest BSB: 306 089 ACC: 2652295
Please type “Legacy Project” in the transaction description.
LEGACY PROJECT ENVELOPES
Simply place your giving into this Legacy Project giving envelope. If you need any assistance our friendly team at the Giving Station would love to help you out!
CREDIT CARD GIVING
If you would like to give via Credit Card we have a secure online giving portal just for you. Just click on the “GIVE HERE” button below.
You can give online using our secure online giving portal. Set up once by creating an account and easily give using your credit card. This can be used for one-off giving to The Legacy Project.