Where We are At!
Stage one is 99% complete. ✔
Stage two is on hold onto we get Northern Presbytery and Presbyterian Church Property Trustees' permission and a robust financial plan in place.
Our key goal this year is to ensure we have a financial plan in place.
We have decided not to draw on a loan unless the sale/ long-term lease of the land is a definite reality. However, sitting in the background is the messy situation of some of our existing grants. Some grants require proof that we can finish stage 2 before the funds will be released.
Specifically, we have a $300,000 grant from Lotteries Heritage, who are waiting for financial proof that we can complete stage 2. We have already pushed that deadline twice. Our current deadline is May 31 2023. If we don't have proof by then, or if we can't get another extension we risk losing that $300,000!
This is why we initially suggested a bridging loan. But as mentioned we realize that drawing on a loan before having the certainty of a sale/ lease of land is a big risk. It is a bit of a messy web. There are risks on both sides of drawing on a loan:
1) If we draw on a loan, but then find out that we can't sub-divide, we will find ourselves in a fatal financial position. We will be lumped with a $1.5 million dollar loan and no means to service it.
However,
2) If we don't draw on a bridging loan then we could risk losing the $300,000+ from heritage because we have no proof of finances to complete stage 2.
Looking at the figures it makes sense to risk losing $300,000 rather than being lumped with $1.5 million that we can't repay. Hopefully, things pan out so that neither happens. But at this stage we have no intention of drawing on a loan until we know for sure that we can service it.
We are open to other suggestions about how to solve this predicament.
All of this means that the project may be in limbo until we are sure that the sale/ lease of the property can be a definite reality. We have had a land valuation from Telfer Young, and a 'potential development report' from David Wren: Planning, Policy and Research.
Although our land is worth good money, the development report has shed light on our first hurdle. Being, the heritage overlay on our site. Although only our worship building is officially heritage the whole site has this heritage overlay -which may affect what can happen on it.
We have talked to our heritage architect and he is willing to help us persuade Auckland Council that sub-dividing is in the best interest of the actual heritage component on our site i.e. the worship space. He thinks that it is doable, but the council can be unpredictable. With this in mind our next steps will be:
Step 1: Antony will help us to get permission to sublease/ sub-divide.
Step 2: If step 1 is successful then we will need to get Northern Presbytery and Presbyterian Church Properties Trustees permission to sub-lease/ sub-divide.
Step 3: If step 2 is successful then we will need to engage with real estate agents/ property developers.
If these steps are completed it will make the rest of the 'red tape' a lot easier to navigate.
Alongside these steps we will also continue to apply for other grants.
So this is where we are at. It's pretty heavy news and this could take some time. The ultimate outcome will be to have the Lotteries give us another extension. Then if we have the sale/ lease of land tied down before that extension date ends we can prove that we can finish stage 2. That way, we maintain that money without the risk of a premature bridging loan. However, if we don't have that proof in time we risk losing that $300,000.
So please pray:
1) That God's will be done
2) That Auckland Council, Presbytery and the Presbyterian Property Trustee's all give swift permission for the sub-division/ sub-lease of land.
3) That we find the right agent and purchaser/ lease holder in a timely and well organised fashion
4) That we do not lose the $300, 000 Heritage lotteries grant (either we get an extension or have proof in time).
5) Something miraculous and/ or ingenious happens to bring everything together easily.
In all of this, it's important to realise that this is a building. God's Kingdom is not contained by buildings and is not limited by them. Let's trust that what God wills is what happens.
Arohahui the St St team....
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