Tuesday, July 26, 2011

building update

I've been gone the past week on our family vacation. But, the negotiations and search for a new location have gone forward.

Before I left, our broker, Barry Slotten, had me look at a building off Hibert St in Scripps Ranch. It's by the Chuck-E-Cheese and Jeromes Furniture. It is 2 seperate suites divided by one tenant between them. The first one is 3840 sq ft, which would be used for our sancuary and church offices. The second is 2773 sq ft, which would be used for nursary, Kidz Life, Youth and a kitchen. We have started negotiations with the owners - here’s a summary of the points:

· They agreed to a $.69 psf beginning rate plus the $.25 NNN’s (so, $.94 on a gross basis), with 4% annual increases.

· They agreed to the $3.00 psf tenant improvement allowance (total of $19,839 towards TI’s)l

· They agreed to 4 months of rental abatement.

They will give us a 6-month temporary lease, during which we can run any/all of our administration and other office functions, but not our actual church services. During this time, we will apply for and secure a Conditional Use Permit. If we are unsuccessful in obtaining the C.U.P., the lease will terminate and landlord will refund our security deposit.

· Upon obtaining the C.U.P., we will roll into a 5 year lease.

What we haven't agreed upon is who will pay for the C.U.P. process and how much rent we will pay during that 6 month period. We are also getting an estimate of what it will cost above the $20,000 they will give us to get this location ready for our use.

If you would like to drive by the location it is 9899 Hibert St suites C,D, F.

As always, please pray for our church as we continue to move forward.

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