VILLAGE CHURCH

New Ministry Centre

In 2013 we started working alongside the City of Surrey looking at various options, initially searching for an existing structure that could be leased and/or bought and renovated. As we continued to grow, we eclipsed zoning allowances which ultimately resulted in the search for land. A thorough Lease vs. Build Analysis was conducted that led us to the decision to build. A summary of some of the highlights follow.

The Build Decision

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Lease vs. Build

WEAKNESSES

unavailability of suitable space for our unique needs and size
lease costs are more expensive over the long term
vulnerability to potential intolerance from government-controlled buildings
unavailability of an alternative venue similar to Bell Performing Arts Centre (rental only available until June 2027)
vulnerability to short 3-6 month cancellation clauses
inability to hold regular weeknight events
unpredictable rates and rising costs
current ministry centre cannot take advantage of property tax breaks as a primary worship space (cost of over $135K annually)
high costs of mobile infrastructure and technology
zero equity appreciation

STRENGTHS

less up front capital
no responsibility of ownership and maintenance
ability to move or change quickly
in the event of a catastrophic failure, only lease costs are paid out

Lease

Build

WEAKNESSES

high up front costs
maintenance costs/responsibility
catastrophic failure may require selling the asset

STRENGTHS

the better financial decision when considering the costs over the long term
an intact investment with appreciating land value
a building specifically designed for our needs
the ability to capture video content in a controlled environment which is mission-critical for our church
we would own and control the venue
a new facility attracts more people and thus a larger financial base to fund it
a potential mortgage payment (if necessary) would be less than or equal to what we presently pay in rental costs (assuming the land is owned)
better use of staff resources and equipment than a mobile infrastructure
take advantage of significant tax savings
opportunities to engage the community for concerts, graduations, and other rentals

The costs savings over 25 years clearly favours the Build solution over Leasing. Minimizing the % of the build needing financing as well as lower interest rates are key factors in maximizing savings. However, the fatal flaw of the Lease option is that there is no available solution in the market that would satisfy the needs of Village Church anyway, even when considering multiple buildings. Note: the costs in the analysis only applies to replacing the rentals and costs associated with the current Village Church Ministry Centre, Village Church Surrey location (Bell), and weekly program rentals in other venues. Rental costs associated with all other sites continue on as is.

The analysis exposed three key factors that favour a “Build” over “Lease” decision:

The high level of vulnerability in relying on a Lease solution from public and government facilities given 6-month cancelation clauses as well as growing intolerance;
The Bell Performing Arts Centre wishes to conclude our agreement by June 2027. We are thankful they are willing to work with us to coordinate an exit that coincides with our new building.
The lack of suitable options to lease that fit our needs, even when considering a multi-building/locations solution.
The financial analysis showing cost savings of a Build solution over a Lease solution (if one was available) over 25 years.

The precarious position we are in now demands a more secure solution within the next 3 years.

We are excited about this stable and permanent Ministry Centre in which ministry will be done on a daily basis. A 3-storey building that includes an auditorium with 1,000+ seats to accommodate many events including weekend services. It will be used for our Canada-wide operations – reaching out to the city, region and nation with the transforming power of the gospel. It also includes developing leaders, holding conferences/classes, mid-week kids/youth/young adult programs, counselling, local mission, and our School of Ministry.