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Custer Road United Methodist Church

Called Church Conference – Motion to Approve

December 13, 2020

Whereas God has remained active and faithful in our ministry at Custer Road United Methodist Church (CRUMC”) for more than forty years;

Whereas the church is committed to its vision of Helping People Know the Love of Jesus;

Whereas the church currently owns approximately 17-acres located at the southeast corner of Custer Road and Legacy Drive (Property”); 

Whereas both unsolicited and solicited offers to purchase said property have been received; 

Whereas numerous unsolicited offers from various buyers increased to the point that the Board of Trustees authorized the establishment of a Transaction Team to accept, review and evaluate said offers and a 17 acres Vision-Strategy Team was formed to make a recommendation of the use of proceeds, including engaging third parties as necessary to provide legal counsel on behalf of the church; as well as engaging an independent broker (ESRP”) to market to potential buyers and to make a recommendation as to the highest and best buyer for the Property;

Whereas it comes before the members of CRUMC to vote on the following measures as stated below; and let it be known that the Board of Trustees, the Committee on Finance, Church Council and necessary Conference Committees have voted to approve and show support for the following measures. The following measures are presented to be voted on as a collective sum and not individually. The motion before us today is to approve the following measures:

1. To have CRUMC enter into a purchase and sales agreement (PSA”) to sell the Property for a $15.5 million gross sales price; and

2. To allocate and use 10% of the gross sales price, or $ 1.55 million for Mission Ministry activities of CRUMC. These funds to be placed in a sub-fund as provided for under CRUMCs Permanent Endowment and Planned Giving Ministry Charter (Permanent Endowment”). Mission Ministry activities shall include but are not limited to:  CRUMCs local mission field for mission related expenses including capital, off-premise leased space (up to ten years) and start-up expenses (up to three years). The specific Mission Ministry project(s) shall be defined and recommended by the Missions Advisory Committee (MAC”) and submitted for approval by the Church Council and Board of Trustees before any funds are distributed; and

3. To allocate and use 10% of the gross sales price, or $ 1.55 million for the support of our permanent Church facilities as specifically stated and provided for in the Permanent Endowment; and

4. To allocate and use such necessary amount of the gross sales proceeds  to extinguish all the existing and outstanding church debt owed to Inwood National Bank (as of December 31, 2020 the approximate amount owed will be $ 4.92 million) at the time of closing and final funding of the sale transaction; and

5. To allocate and use the remaining net sales proceeds (i.e.; gross sales price less expenses associated with sale of Property) funds (approximately $7 million net of the other uses described above) for capital projects that will contribute to the future growth of the church (Future Growth”). All of these funds are to be placed in a sub-fund of the existing Permanent Endowment.

 Future Growth shall mean and encompass: 

(1) Using up to $2 Million of these funds in the next 0-48 months for capital projects that enhance our existing facility including but not limited to improvements in the Sanctuary for audio-visual upgrades, refurbishing of pews, etc. to enhance or expand CRUMCs on-line ministry; to enhance and improve the Upper Room, youth area and Congregational Care space and other opportunities that would provide for the future expansion and growth of the church.     

Any Future Growth project or projects pursued within the initial $2 million maximum amount shall be defined  and  approved by the Board of Trustees; as well as, approved by the  Committee on Finance and Church Council as well as any other approvals required under the United Methodist Church Book of Discipline (”BOD”).

(2) Beyond the initial $2 million of designated Future Growth funds noted above, no additional Future Growth funds will be used or released until such time as CRUMCs Church Council reviews and approves a Future Growth Plan requiring the use of some or all of the remaining funds. Every request for funds to be distributed subsequent to the adoption of the approved Future Growth Plan from the then-remaining amount existing in the sub fund established for Future Growth will require approval by both the Church Council and the Board of Trustees; and shall follow the most current Book of Discipline guidelines; and include a future CALLED Church Conference, if required.