Pipeline Church Future Building and Pipeline LLC Meeting

Purpose:

  • To follow God’s plan for Pipeline Church 

  • To move to a facility that can house our current size and needs

  • To find a facility and property that will allow Pipeline Church to expand and grow for years and years to come

** Disclosure Statement:  This is not the merging of two church bodies or ideologies.  This is two separate churches sharing a facility with goal of healthy growth for both. **  

Purchase Amount:

  • Property has been appraised for $2.5 and $3.5 million dollars

  • Purchase price is based on 50% of the average of the appraisal amounts

  • Purchase Price is $1.5 million dollars for 50% ownership of the property and buildings

Hurdles:

  • Raising $1.5 million dollars

  • Banks won’t lend to churches

  • Money borrowed from denomination or classes gives those organizations true ownership

    • Ownership that isn’t controlled by Pipeline Church and its members doesn’t protect Calvary Chapel if Pipeline Church defaults

  • Calvary Chapel doesn’t want any encumbrance/debt on the property

Proposal to Calvary Chapel for Purchase:

  • Create an LLC (Pipeline LLC) owned by partners of Pipeline that will purchase the property and rent back to Pipeline Church

  • Pipeline LLC will put up a 500k down payment to purchase the property and get a loan from the bank for 1 million dollars with Pipeline Church as the tenant

  • Pipeline Church on top of rent paid to Pipeline LLC, will have 5 years to pay down and clear the $1 million dollar debt

  • Calvary Chapel is assured that the encumbrance of the debt will be cleared in 5 years and no other encumbrances will be allowed unless voted on and approved by the Joint Steering Committee

Joint Steering Committee:

  • A Joint Steering Committee consisting of 3 members from each church will be established and meet once per month to agree on policy related to this agreement

  • There will initially be five Subcommittees established as follows:

      • Logistics & Scheduling

      • Facilities, Grounds, Maintenance

      • Worship

      • Design

      • Child Care

  • Each subcommittee will meet as needed but not less than once per month for the purpose of planning and making recommendations to the Joint Steering Committee (on major issues)

  • Expenses for utilities, grounds, janitorial, alarms and maintenance will be shared 50-50 unless explicitly discussed and agreed upon differently by the Joint Steering Committee based on unequal usage

Joint Usage:

  • Joint use of sanctuary: Calvary Chapel Sunday 8:30-10:00 and Wednesday evenings.  Pipeline Church Sunday 10:30-12:00 and Sunday evening.

  • Joint use of church office, classrooms, youth modules, and storage.

  • All other use coordinated through Scheduling & Logistics Committee including holidays and special events.

  • Both entities would have use of kitchen/café.  Calvary Chapel would continue to provide café service on Sunday morning.  Pipeline could continue to offer their donuts, coffee and dinner.

3 Options to get involved:

  • Become a member of Pipeline LLC

  • Make a gift towards the Christmas Offering portion that will go directly toward this project

  • Make a commitment to increased monthly giving going forward

Option 1

Becoming a member of Pipeline LLC:

  • Initial investment is a minimum of $10k

  • Initial investment is made into an LLC that owns an asset so the amount you initially invest will be an asset on your financial statement and balance sheet

  • Your % of ownership will be based on the amount of your initial investment

    • $10k investment = 2%

    • $25k investment = 5%

    • $50k investment = 10%

Purpose of the LLC:

  • The LLC is not designed to and will not make money for its members

  • The tenant (Pipeline Church) will pay a rental amount that will cover the loan payment that the LLC will pay the bank

  • Pipeline Church will also pay the property taxes, insurance, maintenance and utilities on the property or reimburse the LLC for said expenses

  • Once the initial loan has been paid off the LLC will then gift the property to Pipeline Church

Benefit of joining Pipeline LLC:

  • Your investment into Pipeline LLC will be backed by an asset

  • Pipeline Church will be paying rent to the LLC which will be paying down the debt that is being guaranteed by the LLC

  • When the debt is cleared the LLC will gift the property to Pipeline Church

    • At that time the property will be reappraised

    • The amount that will be recorded as a gift from the LLC to Pipeline Church will be the current appraised value

  • For this example we will use an appraised value of 2 million:

    • $10k original investment (2% Ownership) becomes a $25k-40k tax deduction

    • $25k original investment (5% Ownership) becomes a $62.5-100k tax deduction

    • $50k original investment (10% Ownership) becomes a $125-200k tax deduction

  • The gifting can be broken up into any number of years based on the desire of the LLC to spread out the tax deduction

Option 2

Make a gift towards initial costs of improvements and increased expenses:

  • With the LLC being a minimum of $10k it is understandable that that might not be feasible at this time for some partners

  • We estimate initial improvements to be $250k for this project

  • Pipeline Church has $100k saved up just for this project

  • So we are looking to raise another $150k to do all the new improvements to the property prior to the move and assist with increased new expenses

Option 3

Make a commitment to increased monthly giving:

  • Pipeline Churches new rent will be in the range of $6k a month for the new facility

  • With property taxes, insurance and maintenance there will be new monthly expenses

  • Please make a commitment for even the smallest amount in your monthly giving to assist in the next phase of Pipeline Church 

In conclusion:

  • This is a unique and incredible opportunity for Pipeline Church

  • Let’s all do everything we can to make this happen

  • Give till it hurts and see what God does in our lives and in the life of Pipeline Church