FIRST UNITED METHODIST CHURCH

LEXNGTON, KENTUCKY

CHARGE CONFERENCE MINUTES

May 12, 2003

 


At 7:05 p.m. Dr. Al Gwinn called the First United Methodist Church Charge Conference to order.  Dr. Gwinn introduced Tony Antonelli.  Tony is an Asbury Seminary student who has been providing assistance to the people at Andover.  Dr. Gwinn reported to the membership Dr. Thomas Eblen, District Superintendent requested Dr. Gwinn chair this Charge Conference regarding the Andover/Todds Road property.

 

CALL TO ORDER

 

 

 

Dr. Al Gwinn opened the Charge Conference by reading from Paul’s writing to Timothy and offered a prayer asking God’s guidance in the evening’s business.

 

OPENING PRAYER

 

 

 

Dr. Gwinn gave a brief overview of the recent Administrative Council meeting regarding the Andover/Todds Road property acquisition with the recommendation from the Administrative Council to convene a Charge Conference. 

 

Foster Ockerman, Jr. provided a presentation of the Andover/Todds Road facility interior, exterior views and several site maps.  Foster also pointed out the location of the cell tower on the property and reported that the tower monthly generates $1,000 in revenue to Andover. 

 

Dr. Al Gwinn added that the original church facility plan on Todds Road called for the present structure to eventually be the fellowship hall with the sanctuary to be built at a later time.  The original 11-acre tract is just inside the inner-service boundary and after the sale of the right of way will leave a tract of 9 acres, net.  It was also reported that currently there are 44 new house starts just across from the church facility.  The new Polo Blvd. is slated to be built near the present rear of the property, when completed the building will no longer appear backward to Todds Road but actually facing the new Polo Blvd.  The current parking lot is 40% of the approved parking plan.  Dr. Gwinn and Foster Ockerman, Jr. both emphasized to the Charge Conference the acquisition of the Andover/Todds Road property is in no way to be construed that we are moving our congregation.  Andover is just part of the answer for green space for 1st UMC out-door events.  Foster Ockerman, Jr. added he estimated at least 800 children could play soccer on the grounds.  Ken Klemme added there are currently 800

 

kids in the basketball program at Crossroads Christian across the road from Andover/Todds Road property.

 

ANDOVER/TODDS ROAD PROPERTY OVERVIEW

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ANDOVER/TODDS ROAD PROPERTY OVERVIEW continued…

 

 

 

Foster Ockerman, Jr. called attention to the Financial Summary handout and reviewed the following:

 

·     Appraised value (ave. of 3 methods)     $1.1 million (July, 2002)

·     Approximate debt to be assumed          $    546,000

·     Net cash from sale of right-of-way        $      50,000

·     Annual income from cell tower              $      12,000

·     Total first year income available             $      62,000 or $5,167/mo

·     Monthly debt service

           Principle & interest only, 7%/25 yr.:        $3,860 per month

           Insurance quote (2400/yr)                           200 per month

           Average utilities (elec., phone, gas

                 Water, dumpster)                                  807 per month

                                                                        $4,867

 

Foster Ockerman, Jr. included the following:

·     The cell tower lease is probably a long-term lease – about 20 years.

·     Presently, there aren’t any figures for additional staff.

·     Most of the $50,000 will go to the present debt service with maintenance charges such as mowing/snow removal being extra.

 

Dr. Al Gwinn asked Scooter Leonard the amount of income the present Andover small group generates?  Scooter reported approximately $700 per week is received with about $10,000 +/- being received thus far for the year.  Dr. Gwinn explained the small group meets on Sunday for a worship experience but not an actual church service.

 

ANDOVER FINANCIAL SUMMARY

 

 

 

 

 

Dr. Al Gwinn explained that the ground was originally purchased by the Lexington District and was later transferred to the Annual Conference.   1st UMC would take charge of the entire property including the debt and assume the refinanced debt or we could refinance after closing.  The debt is a result of the original construction.  Annual Conference has agreed to item 3a of the Proposed Terms of Agreement:

      3.   Quantify the capital investments (only) of the Annual            Conference, Lexington District and 1st UMC which will             become “charges” against the property, subject to:

            a.   if we sell the property in less than 5 years from closing                   and there are excess proceeds over debt, 1st UMC is                   repaid its capital investment first, then the District, then                   the Annual Conference to the extent of funds available.

 

PROPOSED TERMS OF AGREEMENT

 

 

 

 

 

 

 

 

 

 

PROPOSED TERMS OF AGREEMENT continued…

 

 

 

After the 1st UMC Charge Conference heard the presented details regarding the Andover/Todds Road property acquisition the Conference entered into a hearty discussion:

·     The Athletics Committee would check into the feasibility of setting up various sporting fields.  There would be no zone changes needed for what 1st UMC wants to do at the present time.

·     Starr Clay asked about the additional liability insurance premium.  Foster Ockerman, Jr. said the 1st UMC insurance package would need to be reviewed to make that inclusion.

·     Charlie Solomon suggested that it would be difficult to make the Andover/Todds Road property work with existing staff and suggested an athletic director be figured into the initial package.

·     What does the Andover/Todds Road acquisition do to the expansion of our present High Street facility?  Foster Ockerman, Jr. explained that any new building would be a couple of years out.  The Andover/Todds Road property would provide us additional space right now.

·     Sue Weant added the Andover/Todds Road neighborhood is growing and the property would be a place to provide outreach ministry such as daycare and other revenue producing ministries.

·     Ernie Stamper said that programming is driven by vision and this property allows us to advance the time-line.

·     Starr Clay added this property will self perpetuate.

·     Dr. Al Gwinn stated that when we present our plan to the District Superintendent then the decision-making goes to the Board of Trustees of the Annual Conference.  The Kentucky Annual Conference will sell the Andover/Todds Road property if 1st UMC chooses not to act on the proposal presented to this Charge Conference.

·     Carolyn Purcell said this is a gift, so to speak, of green space and we should go ahead with this proposal. 

·     Foster Ockerman, Jr. reported that Partners and Associates are aware of this property but we have not asked Partners to include the Andover/Todds Road property to their study it at this time.  Also, there are approximately 69 1st UMC families presently living in the 40509 zip code.  Polo Blvd. will provide a much better access to the property than the present Todds Road. 

·     Ernie Stamper asked if he was correct in his thinking: We are following a recommendation from the Administrative Council to assume the property as stated in 3a of the Proposed Terms of Agreement.  We are not voting to buy but to take over the property and we will be initiating a letter of intent based upon the terms sheet?  Foster Ockerman, Jr. said that was correct.

·     Charlie Solomon added that 1st UMC athletics needs this property.

·     David Bratcher said, we are not starting a capital campaign at the present time and the Andover/Todds Road property allows us a bridge.

·     Carolyn Purcell added that God has given provision for our needs for right now.

·     Dr. Gwinn advised the Charge Conference that 1st UMC leadership has not forgotten the downtown facility.

·     Kathy Sullivan asked was the current status of the Winchester property gift?  Foster Ockerman, Jr. advised that Rev. Julian Lazar is still considering proposals and at this time nothing has been decided.

 

DISCUSSION OF THE ANDOVER/TODDS ROAD PROPERTY PROPOSAL

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DISCUSSION OF THE ANDOVER/TODDS ROAD PROPERTY PROPOSAL continued…

 

 

 

Starr Clay called for the question.  Approved.

 

Dr. Gwinn asked the 1st UMC Charge Conference for an Amen to approve the recommendation of the Administrative Council.  He then asked for an Amen of those who did not approve the recommendation.  Dr. Gwinn reported the majority ruled in approving the recommendation of the Administrative Council.

 

CALL FOR THE QUESTION

 

 

 

Dr. Gwinn closed the Charge Conference with prayer, the 1st UMC Charge Conference was adjourned at 8:40 p.m.

 

CLOSING PRAYER

 

 

 

Respectfully submitted,

 

 

 

Joyce Miller

Recording Secretary