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Initial Questions about the Child Development Center
1. A bit of history:
Christine first approached the council in January 2005 regarding her idea. Council’s initial impression of the idea was very favorable. A child development center and a church are a common, natural fit:
It is a service to the community. There is a need for this in this community.
It is an opportunity to give small children a safe, Christian environment for their children.
It is a good way to build relationships in the community
We have a facility that sits empty much of the week. This is good stewardship of our facility.
At the same time the council was fully aware of the challenges in this project. We are a small church and this is not something entered into lightly. Beginning such an endeavor requires a lot of work, money, smarts and organization. This wasn’t something results from a few volunteers and a committee.
We told Christine that we were interested in the idea and that we were willing to discuss any proposals she would decide to bring forward to us. Since that time Christine has been developing her plan and the proposal. Finally at the April council meeting we thought the plan was sufficiently solid and developed to bring to the congregation for a decision.
2. What are some of the parameter’s of the relationship:
In March the council made a decision regarding two things:
Any child development center must have it’s own incorporation; it cannot simply exist under the church incorporation. This gives the church some protection in terms of finance and liability. It also insures that the ministry and attention of the church council and its staff will not be pulled away from their main calling (the ministry of this church) by the child development center.
The church was not willing to finance this new operation by mortgaging our facility. This church manages to keep its budget relatively low because we don’t have a large mortgage to pay off. A failed attempt at this project could saddle the congregation with an ongoing debt load that could jeopardize the church’s financial future. The council was unwilling to take this risk.
3. What then does the legal relationship look like?
Living Stones Center for Early Childhood Experiences (LSCECE or "the Center") will be a separate corporate entity with no official relationship with Living Stones Christian Reformed Church. Our only legal relationship will be a lease agreement between the two organizations.
Living Stones Center for Early Childhood Experiences will have its own governing board and that governing board will be responsible for all of their own decisions. There will be no overlap between officers of LSCRC (council members) and the officers of this new corporation.
4. What about improvements and/or changes to the facility required by the Center?
There are a number of changes that the center is discussing regarding our present facility:
Adding a gate to the entryway between the buildings so that the facility could be completely enclosed for security reasons
Adding a storage shed for chair and table storage instead of room 7
Building a play structure
Creating two larger classrooms in the north education building out of the 4 on the western end of the building
Converting room 7 from a storage room to an office for the Center
Adding phone and computer network access to the two buildings that don’t currently have them.
Converting the janitorial closet in the south education building into a children’s bathroom
The church would be rekeyed so that all buildings would have a common key.
Rebuilding the benches in the breezeway
All of these changes and additions would be paid for by the Center. Any changes that permanently benefit LSCRC could be used as "rent forgiveness". The exact details of any rent forgiveness and these costs will be worked out between the LSCRC Council and the Center.
5. What about utilities, wear and tear and maintenance?
The Center will pay 100% of the church’s utility bills.
The Center will take on the costs of maintaining and weeding the street frontage landscaping while the church continues to pay for the lawn service.
The Center will have its own janitor who will be responsible for cleaning and maintaining the two education buildings that they will use, as well as the sanctuary for any occasions in which they may use it.
6. Will the Center interfere with access to rooms the church uses for ministry during the week?
The Center will be using the classrooms (and nursery) in the two education buildings all during the week with the exception of the large room in the north building we currently use for Coffee Break, meetings, voting, cell groups, etc. They will use that room as a "music room" when it is available but the understanding will be that the church has priority over the center for that room. The Center will use the kitchen but will not normally use the Sanctuary building, leaving that available throughout the week for meetings and events as well.
Classrooms will be available in the evenings for meetings and Bible studies as they are now.
Classrooms that are used on Sundays for Sunday School will have a wall reserved solely for Sunday School’s use, and any craft material from the Center stored in classrooms may be used by Sunday School for their programming.
7. Will leasing our facility to the Center jeopardize our non-profit status and bring us some tax liability?
Possibly. Leasing to the Center may make us liable for additional property taxes. Our agreement with the Center will be such that any additional tax liability we incur because of their occupancy will be fully covered by the Center. In other words, they will pay the tax bill. It is also important to note that our expectation of the income the church will receive from the Center will be set to roughly balance out the church’s costs and the facilities improvements financed by the center. This will not be a large money making endeavor for the congregation, but rather an opportunity to host a needed service to the community.
8. Will this increase the church’s liability exposure?
The Center will carry it’s own liability insurance roughly double the liability insurance the church currently carries. We cannot guarantee that the church could not be sued (we never can) but the larger coverage held by the Center makes it the larger target in terms of exposure.
9. Why would the Council even entertain such an idea? It carries with it risk and might distract us from ministry?
Council throughout this process has worked very hard to protect the ministry and interests of the congregation. This process has been a rigorous one with the Council at each step asking hard questions. The Council also, however, is not losing sight of the fact that this is could be a very important opportunity for this congregation to serve and to grow. By housing the Center the church itself would have quite a bit more exposure in the community and an opportunity to build relationships with many new families, not to mention the new employees of the Center. We see this all as positive. The initial cost for the church is low and the risk for the church is low. The very large challenge of getting the center up and running (finance, staffing, management, governance) lies with the Center’s leadership and board. LSCRC’s only formal connection to the Center is that of landlord, hopefully protecting both entities to work effectively and pursue their challenging ministries.
10. What is the congregational meeting on May 1 for?
The Council thought it prudent to seek the approval of the congregation for such a major endeavor. The single question we bring to the congregation is "Should LSCRC enter into a 2 year lease agreement with the Living Stones Center for Early Childhood Experiences?" It will be a "yes" or "no" vote. If empowered by the congregation to enter into this agreement the council will negotiate the details and sign the lease on behalf of the congregation.
If you have any more comments or questions regarding the church side of this please address them to a council member. If you have any comments or questions regarding the Center itself please speak with one of its board members: those are Christine Dragics, Nina Holman, Jack De Wit, Raenette Earnest, and Forrest Barnes.
Last Modified 4/11/05 9:07 PM