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.
With tilt-up walls in place and roof sheeting installed, we have reached a significant project milestone. Internal walls are now under construction as well as plumbing works underway. The current practical completion date is August 2019, following which our internal fit-out will commence.
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 $4.5M loan agreement for funding the balance of the construction project has been finalised, with the first draw down completed. We have also commenced with ordering some furnishings for delivery by the practical completion stage.
Currently, we are awaiting approval of our building license, with council deliberating on a cosmetic aspect of a street facing boundary wall. To date, we have invested over $1M in the project which covers 50% of the land purchase price and consulting fees for engineering, council, etc.
We are, however, yet to secure a third-party financier to finance approximately $3.6M of the project.
Our current constraint is that we need to receive additional funds from the Legacy Pledges now or in the near future, in order to produce our cash share of project funding first, before we can draw down on a loan.
We have received more than enough pledges to fund the Legacy Project, however only $1.373M (increase of $220k since our last update) of those pledges have actually been received. What we currently need is an additional $1.940M in cash, if we were to proceed with construction ASAP.
Important to note is that we have not paused the Butler project and are awaiting receipt of our building license. We do however need further pledges to come in before we can sign a finance offer and proceed with the construction agreement.
We have identified renovation works at Canning Vale to the extent of $798k which is estimated to be complete by December 2019. The work comprising 3 phases, includes improved Kids facilities, toilets, air-conditioning, security, production, audio and lighting.
We are currently outworking phase 2 of the identified renovation works, which includes air-conditioning of the main and youth auditoriums, as well as production items in the main auditorium.
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.
The main focus for our Wangara campus is to pay off our $2.84M mortgage.
SUMMARY OF FINANCES
During the lifecycle of the Legacy Project, we will have two further Miracle Offerings, that will contribute to the Legacy Project along with pledge funds received.
Legacy Project pledged to date is $5,392,947.33
Legacy Pledge funds received to date is $1,373,585.13
All numbers considered we are currently in need of raising cash of between $1.940M in the short term to start construction in Butler and $576k to complete renovations in Canning Vale.
Overall, we need to raise approximately $15.6M to be debt free on all four campuses.
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 7 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