A vote in the affirmative for the proposal accomplishes the following:

1. Authorizes our Trustees to sell this parcel of land, as stated in section 3.02 of our bylaws. This authorization includes granting our Trustees the authority, with the guidance of the Pastors and other relevant leadership, to determine the listing/for sale price, engage in negotiations with potential buyers, enter into a contractual agreement with the buyer, oversee the due-diligence period, complete the final closing of the sale, and handle all necessary legal documentation.
2. Apply all net proceeds from the sale toward our outstanding debt.

$1.5 million

There are always costs associated with the selling of property. It is estimated that the cost (commissions plus fees) associated with the sale of this property will be approximately 5% of the negotiated sale price. This is at a considerable discount as commissions alone are typically 6%. Our listing agent has and will continue to work diligently to limit costs as a service to Fairview Church.

It is the strong consensus of the Pastors, Trustees, Finance Team, Chairman of Deacons, and Chairman of the Building/Grounds Team to apply all proceeds from the sale of the property towards the outstanding debt owed on our building and remaining property.

Currently, we owe $3.62 million.

The selling of commercial property is a lengthy process. It can take many months of negotiation to arrive at a legal agreement, at which point the "due diligence" period begins. Due diligence itself can last 18-24 months. All told, from the time of listing the property to sale, it could take 2-3 years until closing.

Under the oversight and direction of the Pastors, the process to this point has been guided by representatives of our Building and Grounds team, the Finance Team, and the Trustees. All are in agreement to move forward with the sale of this unused property.

At the present rate, the entire debt is projected to be fully paid off within the next fifteen years. If we allocate the proceeds from selling this property towards our debt, it could potentially accelerate the debt payoff by approximately four to six years saving tens-of-thousands of dollars. The precise duration will be contingent upon numerous factors, such as the prevailing interest rates during future renegotiations and any supplementary principal payments made in the future.

Unlike residential mortgages that typically feature fixed terms, such as a 30-year duration with matching amortization schedule and fixed interest rates, commercial mortgages operate differently. For example, our primary mortgage has a 5-year term, a 15-year amortization schedule, and an interest rate of 4.05%. Upon the conclusion of the 5-year term, the loan must be repaid in full. Generally, a new mortgage is then negotiated for another 5-year term/15-year amortization schedule, with the interest rate determined by the prevailing market rates at that time. This cycle continues to repeat until the debt is paid in full.

The land is zoned for commercial use, and the main focus of our listing agent will be options including retail strip mall, hotel, medical or general office space. Additionally, the church can include deed restrictions to exclude business types/endeavors that do not align with our convictions. It will be the responsibility of the Trustees with pastoral oversight as to what deed restrictions to include.