Cogun Industries, Inc s1

Meeting

Conference Call

CHURCH Palmetto Presbyterian DATE 12.19.07

LOCATION Mt. Pleasant, SC TIME 6:30 – 8:30 pm

JOB NO. BY P. Kase

CC: Brian Felder, TLC, BDM, SMC

Attendees Palmetto Presb Building Committee Cogun, Inc. Brian Felder Pat Kase

Palmetto Presbyterian Church – Agenda Development and Planning Meeting #3

I. Questions/Comments/Issues since last meeting?

II. Financial Feasibility A. Fundability assumptions B. Total Project Cost and Construction Cost C. Project Scope (our target)

III. Space Programming

IV. Site Planning A. Objectives B. Preliminary site concept

V. Other Items A. Capital Stewardship B. Site update

VI. Next Steps

Discussion

I. General  Committee is Reading Kevin Ford’s book, The Transforming Church  No discussion regarding last meeting report II. Space Programming and facility design  From the input gathered at our last meeting, Brian processed the “wish list” and comments about the vision for development at this site and produced a preliminary space program for Phase I worship facility. Brian also projected 10–year needs to include Fellowship Hall, Education Center and outside spaces, parking and circulation.  Phase I preliminary space program is 11,699 sf. This included 400 seat sanctuary, large narthex, catering kitchen, covered walk, 3 offices, restrooms, 3 classrooms and a nursery.  It was agreed that this was a good target for total space program for Phase I based on the financial assumptions we are using.  Committee affirmed their decision that worship facility would be the first phase no matter what else.  Committee affirmed radius seating configuration and pews vs. chairs. This is 8 rows of radius seating with the furthest seat approx 24’ from chancel – an intimate and engaging setting.  Worship facility capacity: 400 (320 at 80%), still seems the correct target. This will eventually require at least 3 services to deliver our vision of a 900+ average weekly worship church at capacity on this site. Building span, as proposed, is 125’ (70’, plus 25’ each transept, each side.  Large narthex will double as education space/other in phase I. This, plus worship area and 3 other classrooms will have to serve our education space requirements in the short- term. Question: About how many people can we fit in a 1400 sf narthex cafe style? Answer: Perhaps about 150-180.  Possibility that we could further build out the administrative space in Phase I, depending on available resources.  Central location of Administrative space is ideal.  Admin and narthex will share restrooms.  Long-term; 160-180 capacity in Education, 500+ capacity in Fellowship Hall.

III. Site Planning  Preliminary site plan was presented demonstrating our concept for 10-year plan as well as Phase I plan.  Phase I (Worship Facility) will be located the highest profile location of the site (on the northwest corner of site) and on some of the highest ground on the site. Objective is to keep development out of the wetlands and flood plain and condense development to one portion of the site to help mitigate site development costs.  Wetlands and flood plain are to the east, 75’ buffer required to the west (along Darrell Creek Trail), 50’ buffer required along the new road to the north.  Future site development will be directly to the south. Possibility of picnic shelter to the east of proposed parking area.

Committee Response to preliminary site plan  “Ring road” around site seems costly and inefficient use of “good soils” area to the west. Consider eliminating this.  Consider eliminating ½ row of parking (shown as furthest east on site plan) and pushing this south for better access to education and fellowship. Problem: This is the direction and location of future development.  Ensure this circulation pattern will get 350 people (or more) on and off site between services.  Playground on east side of facilities for security and out of line of sight from Darrell Creek Trail.  One primary access point to facility (“our front door”) is a good idea. Will also allow for better control.  Classroom and other spaces besides worship will be tight until Phase II. Anticipated short duration between Phase I and Phase II construction.  If there are plans for concurrent Sunday School and worship, parking areas will need to be larger.

IV. Financial Feasibility

Pat shared the mechanics of the Cogun financial feasibility tool and established that we are currently at a critical juncture in terms of identifying all available financial resources and support. This is important because the financial feasibility drives space program, which drives facility and site design for the work that the church can afford to do in Phase I. It is sometimes just as bad to build too small in the first phase as it is to build too large. We want our first facilities to be appropriately sized tools that support our ministry and our growth.

At our next meting, we will approve preliminary facility design that is based on the assumptions we are now making about available financial resources. One caveat; in addition to worship area and large narthex, our preliminary design concept may also offer the flexibility to build more administrative space in Phase I if it looks like we will have more resources than planned.

The financial feasibility demonstrates our current assumptions about the relationship between total project cost for Phase I and total construction cost for Phase I (in order to establish our target for the space program).

We reviewed 3 different scenarios at $2.9MM to demonstrate the effect of changes to assumptions about site costs and available financial support from other sources.

It was agreed that $2.9MM is a good target for total project budget at this time. One favorable scenario shows our ability to deliver the preliminary Phase I space program at 11,600 sf for this budget. We will continue to test this assumption as we obtain pricing for the site work and other costs.

2008 Budget = $310,000

Update from Mike

Presbytery support;  In 2008 we will get eighty thousand from the presbytery and then twenty thousand more from a guaranteed grant which is also coming from the presbytery. That totals 100 thousand in 2008, 80 thousand in 2009, 60 thousand in 2010 and 40 thousand in 2011.  Also next year in 2008, I will apply for a 50 thousand grant from the Walton Foundation (we won this in Greenville) it’s a Presbyterian grant given by the denomination each year for outstanding NCDs in the country.  Our presbytery has 1.9 million that is NOT committed to any other churches now, so they can co-sign our Loan.  We also have property for sale that will generate another million. I am writing the policy for this presbytery for NCDs. Our exec agrees with me that we have to have a “winner” before we can sell the presbytery on starting more churches, so he is committed to seeing palmetto up and running. In fact I just got a verbal commitment of 150 to 200 thousand to help with site work, but we can’t expect the presbytery to pay for OUR church. The property is paid for, so a bank loan is not going to be the issue. In how much we build, its how much can we AFFORD to build. From Mount Pleasant Presbyterian Church  Our parent church is on a June to June fiscal calendar. Their commitment to us is 60, 48, 36, 24, 12 over five years.  We also have two or three generous families who are CURRENTLY pledging money to Palmetto. I do think when it comes time to purchase furnishings most of that will come from “gifts” from individuals, many of whom are at MPPC.

Capital campaign  Generis has been contracted for the Capital Campaign.  Preliminary discussions suggest we may be able to generate $750,000 over three years. The question is how to use that money. There are several options.

More Update from Mike...

Palmetto Presb. Church Membership Growth Primary focus for the next 6-9 months is to really grow the church. I don’t think that growth is going to come from MPPC right now, so our best bet is to sell the 29466 community on Palmetto Presbyterian. Marketing is great but word of mouth and having a positive, good reputation is critical. It will happen

From Mike - Overall feedback on preliminary facility design  Agreed, try to keep the 11,600 sf and figure how to pay for it.  Push for some answers about the site work costs soon.  Forget that road going around the perimeter for now.  The oversized narthex will give us a good bit of flexible space to be used in a number of ways  It seems like for the big picture, the committee is in accord  I know and I hope you do too, that we are going into this with not enough CE space and as soon as we can afford to, we will build again.

V. Other Update  Mickey Seabrook plans to attend our next meeting to offer the team an update on site related issues.  Mickey reports that e can expect 4 months for permits. We can apply for permit with only the preliminary site plan.  More at our January meeting.

VI. Next Steps  Brian Felder to revise site plan as discussed, prepare preliminary floor plan and elevations to present on January 14th.  Once revised, Brian to forward preliminary site development plan to Mickey Seabrook to start conceptual pricing for the site work.  Once available, Pat will update the financial feasibility.  Pat to contact Dave Anderson at Generis to begin to share thoughts about; capital campaign, projected income, the other available financial support mentioned above, timing and related considerations.  SCHEDULE Next Meeting: Monday January 14th 6:30 -8:30. Then, subsequent meeting tentatively planned for Weds, January 30th – will confirm at January 14 meeting. The above constitutes Cogun’s understanding of the minutes of the meeting. Please advise Cogun, Inc. of any differences within three days of receipt of these minutes or they stand as part of the permanent record.