Special Business Meeting
August 22, 2021 @ 11:00am
Summary:
COTH currently has a loan for $1,061,761 that is due August 2021, which means that we will need to refinance that loan. Our new loan has been prepared through Bank of America. In addition to the current loan we will add $300,000 to the loan to resurface the soccer field that is in desperate need of repair. COTH is typically a financially conservative church, which means we already have established the means to pay off the refinanced loan. We have secured a tenant to rent our school classrooms on the lower campus, and we have a soccer club that has agreed to pay for the soccer field resurfacing. With this additional income we will not only be able to pay off the soccer field portion of the loan but also the original loan amount over the next five years. At this family meeting we also want to share additional information about the strength of our current financial health and the hope we have for our future.
The Agenda for the Special Business Meeting
COTH members will vote to approve the Bank of America refinance loan for $1.4M which is being used to cover our current loan that is due August of 2021 and is adding additional funds to also resurface the soccer field.
We will also use this opportunity to give our COTH family a better picture of our current financial health and future.
FAQ’s
1. Do we need a meeting of the members to vote on the refinance of the loan?
Article V, Section 4
b. Voting Members shall have the responsibility and right to vote on the following matters:
(1) Elder nominations
(2) The annual COTH budget
(3) The call and/or termination of the Lead Pastor
(4) Alteration or amendments to the Constitution and Bylaws
(5) Any transaction involving real estate or real property. Transactions may include the acquisition, purchase, indebtedness, or disposition related to said assets or property.
2. How to call a meeting?
Article V, Section 5 b (2) (c) Special Business Meetings.
Special meetings of the Membership may be requested by any of the following: the Lead Pastor plus at least two Elders, a two-thirds vote of the Board of Elders, or a written request of at least 50 voting Members. Such meetings must occur within 90 days of the request.
3. What is our current loan amount? $1,061,761
4. What will the new loan amount and terms be?
Amount: $1,400,000
Rate: 4% per year
Length: 5 years
5. What is the purpose of the new loan?
The new loan covers our current loan for $1,061,761, and will add $300,00 to resurface the soccer field.
6. Will the meeting be available online? Yes
7. How will COTH members vote?
There will be a text-in vote for both virtual and in-person participants. We will allow written voting for in-person participants if they don’t have the technology to text.
8. How will COTH pay for the loan?
We have recently secured a contract with Shu Ren International School to lease the lower campus of classrooms. The following amounts are secured income.
5 year Shu Ren rental income: $2,452,080
10 year Shu Ren rental income: $6,428228
We are currently securing a contract with a local soccer club that is agreeing to cover the $300,000 cost of the resurfaced field within a period of 4 years. That same soccer club has already been renting from us for the last twenty years.