by John Scott, Scott Long Construction
Building your building from scratch? Ouch! It is expensive, takes a long time and can be frustrating. Why is it that is what most churches want to do? The answer is simple. If a church can build exactly what it wants to fit the vision for ministry, in the perfect location, for an amount it can afford then it should!
Realistically, for many congregations this just isn’t realistic “right now”. Most churches will need to decide what it can afford and then try to get into an existing building or keep leasing space until growth or time facilitates a balance sheet that will allow a purchase.
That is happening with one congregation we have been working with. Together we have been looking for land for over a year with very few solid leads. In our urban situation land costs can reach over $1,000,000 per acre. In addition, our jurisdiction has a myriad of zoning restrictions that require a rezoning or variance to allow for church use for just about any piece of land. That rezoning could take over a year and comes with a six figure price tag. Did we mention marathon meetings with neighbors who don’t want traffic on their street? Only after zoning can this church then design and submit for site plans and building permits. All in all it could be a 5 year project. Talk about a frustrating experience.
Now the good news…purchasing an existing building is usually much more cost effective, takes a shorter period to develop, and potentially could have fewer zoning issues. That is what happened with our friends we mentioned above. They found an office building that is fully functioning, has zoning that works for a church, and is suitable for renovations. The timing of the design, permits and renovations is less than 2 years from start to move in. And the cost, that is the real story…
Renovating an existing building can easily be one half the cost of a new structure. Think about it. The building is up – the church may not have to pay for a new roof, new windows, foundations, etc. On many projects the cost of the building shell is $100 per square foot. The church may not have to pay for sanitary sewer lines, power company service, a water meter, sidewalks, etc! In our areas site work can cost $200,000 per acre. That is real savings! Of course, there are costs to pay such as a new HVAC system to allow for assembly usage, an A/V system, some façade improvements, and whatever it takes to make it “home” for your ministry. Bottom line there is a lot of savings in construction costs for purchasing an existing building.
A big issue in this decision for any church is parking. It is unlikely that an existing building can accommodate the vehicle load required for a church with existing parking. But, many churches develop parking agreements with neighbors to allow shared use for parking and even use a shuttle to offsite parking to make things work.
Will you pay more for a property that has a building on it? Maybe. But maybe, just maybe, with planning and grace that existing building could become your future….
If you found this article helpful, you can meet the author and learn more from ministry expansion experts during our Building On Purpose 2021 webinar. To register please visit: Building on Purpose