What are we proposing to build right now?

A:

We are proposing a phased approach to achieve our ultimate goal of a building that can be utilized for the coming decades.

Phase 1:

The proposed project is a new 3 full level building of approximately 36,000 sq. ft. At today’s construction price, the cost is about $16MM.

Phase 2:

The second phase would add 2 additional levels on top of the then3 stories building for a total of five levels.  The details of the 2nd phase will be planned later.

Q:

Is Phase 1 (3 stories, 36k sq ft) enough for our ministry needs?

A:

Based on our initial usage study, the new building should provide sufficient coverage for our current ministries with some room to grow.

We will keep 237 building as our staff office building.

Q:

When can we start phase 2?

A:

We currently have no specific plan and schedule on the phase 2 project.

Q:

Are we going to make our main sanctuary multi-purposes?

A:

The main sanctuary has a high ceiling and can accommodate up to 700 movable seats.  There will be a large lobby that can add more space to accommodate bigger joint services.

It will not be used for recreation.

Q:

Is the design/floor plan final?  If not how we are going to finalize it?

A:

The plan is not final.  It only serves as a guideline for future design. We will hire an architect to prepare a cost effective design as we continue to study the future ministry need and usage need.

Q:

Is the soil contaminated?

A:

We expect that there will be some amount of hazardous materials in the soil. This is a phenomenon that is very common in big cities with a lot of automobiles. Much of such contamination is expected to be petroleum based.

Q:

If the soil shows no contamination, can we have a full basement?

A:

Yes, we have kept this option open.  We have also planned for different possibilities.  Once we know more about the soil condition, we will be better able to decide.

Q:

Can the current proposed 3 story building be expanded?

A:

Yes, phase 1 anticipates a structure that permits two additional floors to be added in the future.

Q:

When are we expecting to start our construction?

A:

Our plan is to begin construction in 2013.

Q:

In the current proposed model, will there be any offices?

A:

With the phase 1 design, we don’t have enough rooms for all the offices, so we have to keep the 237 building for office space.

Q:

What are the thoughts on 2 sanctuaries?

A:

Currently we have two services at 9:15 AM:

• Mandarin at 249 Harrison
• English at JQES

• We also have two Cantonese services, one in JQES (at 11:15 AM) and the other at 249 Sanctuary (at 11 AM)
• There are some discussions that the two Cantonese services could be combined since they use the same language.
• The combined Cantonese Service can use the main sanctuary at 11 AM
• If we combine the 2 Cantonese services, we could use the other space for Sunday School.

• At 9:15 AM we still have the English (approx 300 people) and the Mandarin Service (approx 140 people).  So one could occupy the main sanctuary and the other could occupy the smaller sanctuary.

Q:

When do we expect QUS to move out?

A:

The site is presently occupied by the Quincy Upper School. We don’t know exactly when the school will move out.

Q:

What happens if QUS moves out next year?  Do we have a plan to deal with it?

A:

We will request a tentative designation extension in March 2011 for an additional year.  The Church leadership will prepare plan to deal with that scenario. 

Did we say the project will be cancelled if we didn’t get 10MM pledges from the stewardship campaign in 2009?

A:

10MM was the target goal.   Since the goal was not reached, BCEC’s leadership reevaluated the situation, came up with the alternate proposal (which is the Phase 1 proposal) and is now presenting it to the congregation. 
The recommendation is to continue to pursue the expansion building project but to plan for an affordable building that would meet our needs. This is the $16MM 3 story phase 1 proposal.

Q:

How much have we collected from the Stewardship campaign pledge as of Aug, 2010?

A:

$2.4 million total.

Q:

Has the demolition of our current building been factored into the cost?

A:

Yes, the demolition cost has been factored into our $16 million budget.

Q:

In one projected financial scenario, there is a 26% cost increase in the general fund to cover the mortgage, increased utilities, and possibly increased staffing.  Is that increase in cost expected to occur after the building is up and running?   When will that increase occur? Why is it coming out of the general fund and not the expansion fund? 

A:

The Expansion Fund would be used to construct the building.  Once the building is finished, there should not be any money left (barring any surprised contribution that would exceed the cost of the building)
The 26% increase would occur after the building is constructed.  If construction is started in 2013, we expect the building construction to be finish in 2014 which is when the general fund will be increased.  This increase does not factor in any growth in terms of giving units. Assuming that there are more giving units, the increase would be less than the anticipated 26%. 
(Note: the ’08-‘09 average of General Fund annual income (1.6MM) was uses as a base of the all the % increases in this document)

Q:

Have we ever considered a personal loan from among congregation members?  Congregation members may have resources from personal savings, IRA, or 401K.  Could we let the church borrow it at a lower interest rate than the 6.5% resulting in some savings?

A:

We have considered the concept of church bonds. There are some legal ramifications if we raise money from church bonds.  Based on our research, it is not likely that a financial institution would be willing to underwrite this because of its small size.  We will, however, continue to evaluate different alternatives due to the changing nature of the financing environment. 

Q:

The last campaign raised $8.4 million, how do we raise the additional funds?

A:

The main source of funding will be our own congregations.  We have new giving units since 2009. We plan to extend our fund raising period by having a second fund raising pledge next year (our 50th anniversary) to be fulfilled in 2012--2013. This will provide an opportunity for those who did not participate in the 2009 campaign, or those who want to increase their contribution to this worthy project.   Of course, we will also explore other potential sources of funding (including alumnae contributions, estate giving and grants).

Q:

Why are we are we looking at a variable mortgage rate?  Why not a fixed low rate?

A:

We have contacted 3 banks.  Although we are a non-profit organization, banks consider this to be a commercial (as opposed to a residential) loan. Commercial loans usually do not have long fixed rate terms, and more commonly have either floating interest rates or rates fixed for 3-5 years and then adjusted. 

Q:

Can we afford the increase of the general fund up to 38%? 

A:

38% increase in General Fund giving would be a stretch in the beginning.  We hope and pray we can raise at least $4 million in the next pledge so that the mortgage will be no more than $4 million.  This would mean giving to the General Fund would have to increase by about 31% (note: we are comparing this % to the 38% total increase).  Some lending institutions use a general rule of thumb of lending to churches no more than 4 times the general fund income. Our general fund income is about $1.6 million so the maximum loan would be about $6.4 million.  Certainly over time as property values and rents generally increase, the mortgage payments will seem less imposing.   

Q:

What does the 11% "operating cost increase" include?

A:

The 11% increase in operating costs takes into account additional costs of operating and managing a bigger building.  It takes into account some inflation, additional staff, and increased price of energy and other building operating costs.  Some of these increases are inevitable even if we do not build.  It also includes a 7% saving on rental (this % may increase assuming future rental cost will also increase).  We hope a bigger building would accommodate new members, thus spreading out the financial burden among more giving units.  The 11% figure is also based on a very conservative assumption of no numerical growth in church membership for the first two year after the completion of the new building. Any actual increase in congregational size will bring this percentage lower.

Q:

What are we doing with the pledges we collected?  Are we investing this money?

A:

There is a team of financial advisors, all volunteers, who are managing your pledge.  They have invested it in diversified portfolio of short-term CDs and short term fixed income funds that are very safe, low-risk, and liquid investments.  Our strategy is principal preservation. 

Q:

What is the basis for the mortgage estimate?

A:

The mortgage estimate is based on an interest rate of 6.25%, with a variable rate reset after the first five years.  This interest rate is an estimate based on current commercial loan practice and information that we have received from some potential lenders. 

Q:

Are we saying that people will have to increase giving to the General Fund by 26%, in addition to the new pledge?

A:

The giving increase presented assumes that there is no growth in giving units, which is a conservative assumption.  Also, the increased giving would take place after the building is built (around 2014), and after the pledges have been fulfilled.  We would expect the new 2011 pledge amount to be collected over a one year period of 2012-2013.

Q:

What happens if we don’t meet the 2nd pledge target?

A:

If we don’t meet the 2nd pledge target, we will need to work with the city to see if we can delay construction for a bit longer.  Each year we need to meet with the city to renew our tentative designation, and we need to present progress that we have made on our plan to build on the site.  Our construction timeline is determined mainly by when we can have the funds to build. We are aware that the availability of the site is determined by the city, so there is increased uncertainty about whether we can get the site as each year goes by.

Q:

How much general fund increase do we anticipate once the building is up and running?

A:

It will depend on the how much mortgage we finance:

Have you considered offsetting some of the costs by renting out the building during the weekdays?  How will the building be utilized during the week?  Is there a way for others to rent the space for community usage? 

A:

If God gives us a new building, we’d like to utilize it 7 days a week, and not just on weekends. 

• During the summer, we already use our facilities 7 days a week for Project Destiny.
• We have begun the Project Destiny After School (PDAS) program.  So far, about 25-30 students have been coming daily. 
• We offer ESL classes on Saturdays to over 250 students; we could potentially have ESL classes on weekdays also. 
• There are other ministries that we could envision for the new building such as The Service Ministry.
•  There is also the possibility of collaborating with other organizations to build or to rent our space out.  We would ideally like to build on our own so that we have more control.  If necessary we will consider this as an option. 

Q:

According to the expansion news the building is expected to start build in 2013.  Is there a date by which the project is go or no go?

A:

The present pledge will be end in 2012 August.  We need addition time to raise more money.  That’s why we anticipate building in 2013, but there is no fixed date.  In order to proceed, we need to develop our plans to get more concrete construction costs. The BCEC congregation will make the final decision about the project before the site is purchased, the construction is commenced and any loan is made. 

Q:

What is the rate of growth in attendance in Chinatown?

A:

The Cantonese 2nd service has not grown – there is no more space.  The English service at QES has been growing and is now at about 90% capacity.  The Mandarin congregation has been seeing high growth.  The staff estimates that attendance at the Mandarin service may reach 200 in the next year or so.  We are even considering a Mandarin service at Newton.

Q:

In addition to the new building options, were other options explored, such as different ministry options?

A:

The focus and direction over the past few years has been on a new building, however BCEC has been continuing to look at different options to address the space issue for many years now, including:

• Planting churches, such as the Newton Campus
• Looking at other spaces around Chinatown (Trinity Church, ABCD building, Teradyne, other properties in the South Station area) – there were no viable options
• Rental of spaces (Tufts, QES, QUS, Acorn, etc) – we have been doing this for years
• Exploring whether we could hold Sunday School or fellowship meetings at different days of the week
• Rebuilding at the current church location

The decision to focus on a new building to meet our space needs was driven by the need for stability in our space situation.  It is difficult to do long-term planning without a stable space situation.  The sense of urgency has been highlighted by:

• The imminent move of Quincy Upper School.  The recent basement flooding in 249 Harrison, which disrupted Project Destiny for a number of days.  Rental for an alternative space at QUS costs $500 per day.
• Growing concern that we may not be able to rent Quincy Elementary School at a reasonable cost for years to come, especially when there is a growing public sentiment for more separation of church and state.  This concern applies even more to churches that hold conservative social views (thus often deemed "politically incorrect"). It should be noted that our rental costs for the QES and QUS have increased annually, and for 2010, it is expected to be over $120,000.

Q:

What are we voting for at the annual meeting?

A:

The motion before the congregation is that: BCEC continues to work on acquiring, developing and building a church facility on Parcel 3A of at least 36,000 sq. ft. with the potential of further expansion, all with the understanding that the General Assembly’s approval will be sought before BCEC takes title to the Parcel, finalizes its financing or commences building construction. 

Q:

What is the purpose of the $270,000 expansion budget for the year 2010/11?

A:

In the event that funds for any one line item are not used, those funds could be applied to other items within the Expansion Budget.

Q:

How should we pray for the Expansion project?

A:

We should pray that more people will come to know God through the new ministry opportunities that a new building will help to facilitate.
We should pray for a church revival as we remember God's protection for BCEC in the past and as we look forward to His provision in the future.
We should pray that our congregation will witness and experience first-hand God's almighty power as we put our faith into Him who can do all things.