As I said last week, the right project delivery method can serve the team well, but no project delivery method is strong enough to overcome the wrong partners.  The reality is that the fees paid to the architect and contractor are relatively small compared to the total cost of the project. And they become miniscule when you consider the lifecycle cost of the facility. Yet, these are the people you are hiring to tell you how to spend your big dollars.

Here are seven characteristics for selecting the right industry professionals for your team:

1) Experience – Look for specific experience not only in the building industry, but also with the specific type and size of facility you may be considering. Also look for experience in the specific project delivery method you are using.

2) Familiarity with current trends – Over the next decade, the way we “do” church is going to change significantly. Work with people that understand those trends, and how you can maximize the development of your facilities to anticipate those trends.

3) Breadth & Depth – A building project is a huge change initiative that will impact your church in more ways than you can imagine. Visioning, branding, communication, generosity, strategic planning, leadership development, assimilation, etc. are all important facets. Work with partners that have competencies and connections that can address ALL aspects of the project. 

4) Flexibility – It requires patience and understanding to move with the ebb and flow of the variety of personalities and backgrounds in a church. A rigid position without regard for a global perspective will do damage to the people, the process and the product.

5) Fit – In most cases, you will be spending as much as two years or more with your industry partners. That’s longer than the average tenure of a youth pastor. If you wouldn’t hire an industry partner to be on your staff, don’t hire them to be on your team.

6) Collaboration – Collaboration is vital regardless of the project delivery method. Design/Build has overtaken Design/Bid/Build because it has been shown to be faster, less costly, less litigious and with better quality (per a Construction Industry Institute study). That certainly doesn’t mean it’s true in every circumstance, but what it does show is that working together in collaborative rather than adversarial roles will yield a better result. Work with people that know how to collaborate, not just cooperate. 

7) Character - There is no amount of experience that can overcome a lack of integrity. Every project has challenges. You want people on your side with character you can count on. Be sure you are comfortable in this area – you will be spending the next couple of years together.

The industry partners you select are critical to the success of your project, even though their fees are a small percentage of the overall costs. If you could select 10 different teams and approaches, you would get 10 dramatically different projects delivered via dramatically different processes with dramatically different consequences. Even project costs (total or per sq. ft.) are only part of the picture. The ultimate goal is a facility that best fits the ministry needs so it propels you forward. And it should be developed through a process that strengthens you and your church.

Challenges are inevitable, so ask yourself this question: “Who do you want to be with in rough water?” The bottom line…

Hire for Competence & Integrity

If you’re planning on building new or renovating facilities, you will likely use one of three general approaches to construction. The lack of understanding and even awareness of the different project delivery methods is certainly understandable in the world of ministry related facilities. It’s not something most churches will do often and it’s not taught in many seminaries. When the time arises, though, it’s important to at least have an awareness. Here’s a brief outline to get you started.

A) Traditional:

I had the privilege recently to tour the new facilities we just completed for Athens Church. Launching new facilities into mission is one of our most exciting times. That’s because we know that the new facilities will be a physical bridge to ministry opportunities that were not possible before. We painstakingly, diligently worked with the church to develop the facilities that will best serve their ministry. It’s far more than just providing affordable space. It’s about understanding the Code, Context and Calling of the church before Creating the Right Ministry Space. In this case, we used what has affectionately become known as the “big box build-out”. The church purchased over 100,000 sq. ft. of a strip center. We worked with them to develop nearly 1/2 of that space for use now and to provide for subsequent uses in the remaining area. See more here.

It was an honor to serve Pastor Sean Seay (@seanseay) and the ministry God planted in Athens, GA several years ago. Athens Church is a North Point Ministries strategic partner, and maintains a commitment to be a church that unchurched people can attend – relevance without compromising the Gospel. From the weekend services and Starting Point, to Waumba Land, UpStreet, Xtreme, & InsideOut, to small groups, you will find intentionality with Jesus at the heart of what they do. Check out “Our Dream” for an example of how one family, far from God, came to know how much God loves them – through the love they were shown by Athens Church.

Athens Church Does Indeed Love Athens, GA

More and more churches are finding that purchasing and repurposing existing buildings can be an effective way for developing the right ministry space. We asked the Cogun Project Consultants that are working directly with churches about what is driving this trend. Here are their Top Ten reasons why re-purposing buildings for ministry can be a good idea:

1. UNUSUAL MARKET CONDITIONS - More suitable buildings are empty and open in many areas. Commercial property is at unprecedented low prices.

2. DEVELOPED SITE – The parking lot, site lighting, and other site work is usually in place, so site approvals are usually significantly shorter. Site development fees are also minimal or non-existent.

3. TAX BENEFITS FOR SELLER - Many sellers can sell to churches cheaper since they may qualify for a tax break (discounted sale to non-profit).

4. REDEMPTION METAPHOR - “Redeeming” a decaying building is a powerful image to the community. The story of redemption can be told in renovation … renovation is restoration.

5. ADDITIONAL FUNDING POTENTIAL - Because renovation may be less costly than new construction, it has potential to allow more funds for Audio/Visual elements, thematic design, added staff, etc.

6. SPEED TO MINISTRY – Design and construction timelines are typically shorter giving more opportunity for ministry in the new facility.

7. LOCAL FAVOR - Local government agencies want to see these empty eyesores filled and are generally favorable to re-purposing existing buildings in the community.

8. FAMILIARITY – People in the area know about the building because it’s a recognizable location.

9. IT’S GREEN – Re-purposing existing buildings already have a footprint developed so there’s minimal added environmental impact.

10. CONTEXTUAL – Moving to an existing building potentially serves a population that otherwise would not have access to your ministry. It engages people where they are and in their context.

That’s never been truer than for the way churches finance capital expenditures today. Gone are the days when you could talk to your local banker and they would bend over backwards to make the loan work. Money is cheap but lending is tight. Capital remains constricted and there is reluctance on the part of many lending institutions to step out when they already have so many under-collateralized commercial loans. Cash is still king but cash flow is the emperor. Banks no longer rely on the pledge of funds and are requiring churches to have a 6 to 12 month history demonstrating the receipts of those pledges. And banks no longer assume the appreciation of real estate values so the Loan-to-Value Ratio (LTV) is more critical and will not likely be able to exceed 75%.

So what changes do churches need to secure the capital they need for expansion? Here are some key strategies financing under the new rules of the game:

1) Be clear: There has never been a more important time than now for churches to have clarity about their vision. The vision and mission must drive the decision as to whether or not new facilities are necessary.

2) Plan ahead: Begin now to develop margin between your income and expenses so you can demonstrate actual ability to carry debt. Even expenses you’re carrying now that you won’t need later can help. For instance, if you’re paying rent on facilities you won’t need when your new facilities are completed, that money can be used to amortize your new loan. NOTHING beats building for cash when you think far enough ahead.

3) Start early: Banks used to be impressed by what was pledged. Now they want to have six to twelve months evidence of the commitments so capital campaigns need to start earlier in the process.

4) Be prudent: It’s important to work with professionals that have adequate experience in serving churches. Missteps can be fatal to a building program. We continue to see projects abandoned because a church trusted a price from a builder or architect that turned out to be too low. At best it put them back to square one; at worst it killed the project and left lingering costs.

5) Consider alternatives: We are seeing an increase in churches funding their needs through bond programs. Bonds often carry higher initial fees but are less expensive for the life of the loan. Consider these and other alternatives for the one that best fit your comprehensive financial plan.

Money is not likely to ever be this cheap so it can be a great time to finance a building program. Use these strategies to move ahead successfully.

That's the question I was asking myself last Friday night as the Allman Brothers took the stage. They have played New York for 40 years and for the last 20 years the Beacon Theater had been their home for nearly 2 weeks of concerts held annually. Even though every show is a sellout, this year they were bumped by the Beacon in favor of Cirque du Soleil. Their search for a new venue took them north of Harlem to the Washington Heights area where they found Christ United Church. The church facility was built in the late 20's originally as a vaudeville theater and was later converted into a movie theater. It fell into disrepair in the 50's and 60's until 1969 when it was purchased by the church. I don't know much about the church but imagine the opportunities to connect with the community by hosting over 3,000 people a night for 12 nights.

Maybe you can't host the Allmans but what could you do with your current and planned facilities? I'm not sure we've even scratched the surface thinking about how to design, build and utilize our facilities to partner with our communities. I know of several churches that loan their facilities overnight to an organization that houses and cares for the homeless. Another built a community fine arts center used by both the church and community. Others operate retail outlets, commercial cafes or restaurants. But that’s just the beginning. What unique ways have you seen churches plan and use their facilities to connect their community to Jesus?

This is no time to bemoan a post-Christendom culture because our opportunities are everywhere. People crave the grace and peace and joy of a life in Jesus. They just need people to find new ways to express the kingdom of God and show them his love. It is time to think differently.

"People can you feel it? Love is everywhere." – from Revival

What an incredible time in Charlotte last week! The Cornerstone Knowledge Network (CKN) Conference; CKN Knowledge Partner Meeting; WFX; speaking; exhibiting; connecting with friends and partners AND winning the Solomon Award for “Best Building Contractor”. We were excited to receive this award for the second year in a row. The award was tied largely to our work with Elevation Church. Elevation is one of the top 5 fastest growing churches now with approximately 6,500 in weekly attendance. The lead pastor, Steven Furtick, at 28 years old combines innovative drama and video with bold music and powerful old time preaching. You can read more about the Elevation project in the Worship Facilities Magazine article. We were grateful to have the opportunity to serve Elevation along with some of our friends and partners at Visioneering, Design 2020, and Living Stones Architecture.

We were also deeply humbled to receive this award. We recognize the tremendous responsibility we have as we serve ministries across the country. There are two spiritual aspects to the work we do. The first is tied to Colossians 3:17 and applies to all people regardless of your occupation: “do it all in the name of the Lord Jesus, giving thanks to God the Father through him.” Secondly, we realize that our work is directly impacting the kingdom of God. We were reminded of that during the WFX sponsored tour of Elevation last Wednesday night. Many were in tears as they watched a video that told the unlikely story of how the church secured the property and, most importantly, showed the faces of people being baptized. Changed lives, a transformed world. Church buildings and facilities are ultimately pointless if they are not used to connect our world to Jesus.