CAMPUS REDEVELOPMENT UPDATE

(Para leer en español, haga clic aquí.)

On Tuesday, June 6, 2023, at 6:30pm, we gathered in the Sanctuary for a Special Church Conference. The purpose of the Conference was to ask church members to vote on a proposal to redevelop our church campus.

Over four years ago, First Coral Gables formed the "Exploratory Development Committee," whose task was to explore ways to potentially redevelop our church campus and to make a recommendation to the church on a path forward. Their proposal had been presented to and unanimously approved by the Board of Trustees, Leadership Committee, and our Church Council, and was now ready to present to the church body for discussion and vote. A document of “frequently asked questions” was given to the congregation the previous Sunday, posted on the church website, and made available at the Conference. (That document is provided for you below.)

Our District Superintendent, Rev. Dr. Cynthia Weems, was the Presiding Elder for the Conference, leading us through the evening. Presentations were given by Alex Morcate and representatives of the recommended development group, 13th Floor/Adler. Members of the congregation spoke, and questions were taken over the three-hour meeting. (Conference minutes can be seen here.)

At about 8:45pm, a motion was made by Joe Vaughn: “For First United Methodist Church of Coral Gables to accept the March 29, 2023 Partnership Proposal (referred to as the Letter of Intent) from 13th Floor/Adler, and to have the Board of Trustees sign the agreement.” The motion was seconded by Frank Brezina. Dr. Weems gave the opportunity for speeches for and against the motion. One person spoke in favor, none in opposition. All church members present were invited to vote.

The motion passed:
55 votes for (93%), 4 votes against (7%), and 1 abstention.

This was an important moment in securing the future of our church’s mission into the future…
but it was just one step.

So, what’s next?

Over the next few weeks we will be working to formalize a sales contract, and then will walk through the same process: presentation and approval by our Board of Trustees, Church Council, and then another Special Church Conference. If that contract is approved, then we will begin the design discussions for the new building for The Growing Place School, much needed renovations to our beautiful Sanctuary, and an attractive 2-story parking structure on our north lot. In other words: after four years of hard work, the hard work is just beginning!

We realize that this process may seem cumbersome and time-consuming, but our Book of Discipline lays out specific steps to safeguard the mission of the church. We appreciate the patience of all involved, including our new partners, 13th Floor/Adler!

If you have any questions, please reach out to Pastor Hedy by email or at 305-445-2578 x1003. And please continue to pray for this important project of the church!

Frequently Asked Questions

HOW WE GOT HERE

Why is our church looking to redevelop our campus?

Almost a decade ago, the leaders of our church recognized the growing concern that a smaller congregation would be required to maintain an aging campus too large for our membership into the future. An increasing percentage of our budget was allocated to maintaining/repairing our buildings and grounds, leaving a progressively smaller amount available for mission work or for growing existing and new ministries.

What is the Exploratory Development Committee (“EDC”) and what was its task?

The leaders of our church saw that our large, ideally located campus in the heart of Coral Gables presented a very unique opportunity. An opportunity to free up our resources to make a real difference in the lives of the people around us. And so, in 2017, the Exploratory Development Committee was formed. That team was tasked with researching options for redevelopment of our church property in a way that would allow the church and school to both function and flourish for generations to come.

The first task of the EDC was to develop an “RFP” (a Request for Proposals) that could be sent out to real estate developers. In 2020, that final RFP was approved by the congregation at our Church Conference meeting, and then released to the real estate development community. This proposal is a foundation from which to grow and provides a balance of new and upgraded buildings, maintains a large portion of our land holdings, and provides income to secure our church’s future ministry in our Coral Gables community.

The next task was to research and recommend a Qualified Commercial Real Estate Broker to represent the church and school in negotiations with potential developers responding to the RFP. After interviewing several groups, the EDC recommended and the Trustees approved The Stockton Group.

Who has been a part of the Exploratory Development Committee?

The EDC currently consists of five men and seven women. We have people deeply connected to our church, The Growing Place School, and our Coral Gables community. We have real estate professionals, architects, finance folks, we have young parents and grandparents.

The EDC team is: Molly Baumberger, Kay Brezina, Hedy Collver (Senior Pastor), Marlin Ebbert, Pete Fernandez, Tara Franco, Robert Gray, Heather Harris, Duff Matson (Chair), Ashley Thornburg, Joe Vaughn, Kris Wagner.

ADDRESSING SOME RUMORS

Have we already sold church property?

No. At this stage, offers have been received from qualified respondents to the RFP and one is being recommended by the EDC.

Is the church and/or The Growing Place School closing?

No. At no time will either close. No interruption in services and operations is an important condition of the agreement with the recommended respondent.

WHERE WE ARE IN THE PROCESS

What was in the Request for Proposal?

The RFP was a 17-page document containing an overview (including goals of the RFP, history of First Coral Gables, and a description of our property), proposal submission requirements, selection criteria, timeline and submission guidelines, and general administrative information, as well as space requirements for church and school, and the zoning maps for our campus. This comprehensive document outlined the needs of both church and school, and was approved by the church in 2020. If you would like to read the full RFP document, please contact the church office, and will be happy to share that with you.

What is the status of the Request for Proposal (“RFP”)?

The RFP was released to the public during September 2021. After speaking with over 50 prospects and touring the property over 12 times, we received 7 responses to the RFP. Respondents were asked to improve and finalize their proposals (bids) over several months. One finalist has been identified and is recommended for approval by the EDC.

THE EDC’S RECOMMENDATION

What was the process for choosing a developer?

We received seven initial proposals from developers in response to the RFP. Three of those companies eventually withdrew for internal reasons, and we decided to not pursue another as we determined that they were not a good personality fit for our church, with our priorities as outlined in the RFP. The EDC Team conducted a series of in-person and virtual meetings with the remaining developers, all of whom are world-class, with solid reputations, financial capacity, and proven track records. That left us with three wonderful possibilities for partnership. We asked those companies to resubmit an updated proposals.  We then countered with two of the prospects, then chose 13th floor and negotiated further to agree upon this letter of intent (LOI).

Who is the winning bidder under the RFP?

No winning bid has been awarded under the RFP to a respondent at this time. This proposal is in the form of a letter of intent (LOI) and is being recommended by the EDC. As of this date, the recommendation has been unanimously approved by our Board of Trustees, Leadership Team, and Church Council. It will now to go to Church Conference for approval and award. No contract can be entered into without the approval of the Church Conference.

What developer is the EDC recommending and why?

After thorough review of and discussion of the remaining three proposals, the members of the EDC unanimously chose one developer: a partnership between 13th Floor Investments and the Adler Group.

Why is the EDC recommending this developer?

A combination of experience, price, time, local knowledge and investment, proposed development and the respondent’s response to the church’s criteria as set forth in the RFP.  

We also assessed whether the people in these companies a good personality fit for our church: whether their priorities, their ethos, their commitment to the Coral Gables community, and their understanding of the mission of the church were in line with us.

When we partner with a developer, it will be a long-term relationship: from the presentation of the proposal to the full church, voting at Church Conference, approval, final negotiations, acceptance of a contract, going through the zoning and city approval processes, contracting with and working with architects and owner’s agents and builders, on to actual construction and eventual occupancy reviews – the entire process will be a daily relationship spanning multiple years. So it cannot simply be about raising funds to maintain our church and school, as necessary as that is. Just like in a marriage, it is so important that we be compatible in order to work well together through all the inevitable frustrations, delays, challenges, and changes that are the reality of construction projects.

THE RECOMMENDED DEVELOPER’S PROPOSAL

What will happen to the existing buildings?

Should Church Conference approve this LOI, the Sanctuary, North Parking Lot and South Parking Lot will remain property of First Coral Gables. The property to the west of the Sanctuary will be sold to the recommended respondent for redevelopment.

What will happen to the property of which we retain ownership?

At this point in time there are no set plans, but it has been proposed that an attractive parking garage be built on the North Lot, a new state-of-the art building for TGPS and Church offices on the South Lot, and repairs/renovations to the Sanctuary space.

What will happen to The Growing Place School (“TGPS”)?

For the next 15-20 months, nothing will change. TGPS will continue to operate as-is until the new facility is completed for TGPS on the South Lot. It is also proposed that the new facilities will include church administrative offices. Upon completion, a period of time is provided to allow for the closing and transition of TGPS to the new facilities. Once opened in the new facilities, everything west of the Sanctuary, including the original TGPS buildings will be demolished. Continuous operations of TGPS and the church are a condition to selecting the recommended respondent.

What will happen to the Chapel?

A new Chapel will be a part of either the renovated Sanctuary or the new facilities. Existing Chapel elements (stained glass windows, organ/piano, cross, etc.) will be incorporated into the new design for the Chapel.

How much will the church be paid?

Should Church Conference agree with EDC’s recommendation, First Coral Gables will be paid via two means: 1) cash and 2) the contribution of the construction costs in connection with the delivery of a new school and office building and renovation of the Sanctuary in lieu of a cash payment. The total amount of consideration is $32,500,000 for the property west of the Sanctuary, and certain development rights in respect of the Sanctuary parcel and South lot. First Coral Gables will retain ownership of The Sanctuary, and the North and South parking lots.

When will the church be paid?

In installments starting at the point when both parties sign the purchase and sale agreement. A portion of the amount paid by the recommended respondent will be funded directly for the construction of the new facilities and renovation of the Sanctuary. The balance of the $32,500,000 remaining after construction of the new facilities and renovation of the Sanctuary will be paid in a lump sum 120 days after The Growing Place School is relocated to the new facilities.

What is the process for approval for the Letter of Intent and Purchase and Sale Agreement?

Once the Letter of Intent is approved by Church Conference and awarded to the recommended developer, two members of the Board of Trustees will sign the letter on behalf of the church. Our broker, The Stockton Group, will then negotiate the terms of the Purchase and Sale Agreement. This agreement will then go through the same church approval process: Board of Trustees, Church Council, and Church Conference. The agreement must also be approved in writing by the Senior Pastor and the District Superintendent.

THE CONSTRUCTION PHASE

What does changing the Land Use and Zoning mean?

Currently, some of First Coral Gables’ properties allow for only religious or educational uses. The recommended respondent is proposing to change the allowable uses of the main parcel so they may build something different (condos and/or apartments) on the property west of the Sanctuary. The request for a change in land use and zoning is NOT automatically granted and takes months to TRY to receive. Also, this change, if successful, will NOT affect the day-to-day operations of the church or school. It will only allow for the properties (including the portion to be conveyed to the recommended respondent) to be used for other purposes (i.e., condos and apartments).

What is “Site Plan Approval?”

The city’s approval that the proposed project(s) adheres to its design and development guidelines. This approval ensures the city’s Development Review Committee, Planning and Zoning Department and City Commission (typically with public hearings) have reviewed the proposed development and deemed it acceptable. This is the last step in the process before a developer will seek a building permit to begin construction.

What does “Development Rights on South Parking Lot and Sanctuary Parcel” mean?

The respondent proposed First Coral Gables retaining control of the South parking lot but transferring all of its development potential to the Main parcel as part of their development plan. Under this proposal, the South parking lot and the Sanctuary parcel will continue to be owned by the church, but the excess development rights attributable to the South parking lot and the Sanctuary parcel will be conveyed to the recommended respondent for development of its contemplated improvements to the parcel west of the Sanctuary.

What is the order of building (aka, the critical path of construction)?

We may build the parking garage in the North lot first, then construct the building in the South parking lot and at the same time may renovate the Sanctuary.  Once TGPS has relocated to the South parking lot, the developer’s construction on the West side of the property will begin.

How will this transaction affect church services?

It should have minimal impact on the majority of services, which are held over the weekend when construction typically pauses.

How quickly can the church begin to make improvements or renovations to the existing structures?

The released initial deposit can help fund the costs of the construction of the new facilities and renovation of the Sanctuary, but not before plans or permits for associated work are received. (For more information on the initial deposit, see the question “What happens if the respondent doesn’t do what they say?” below.)

How long before we get a new school?

Approximately 15-20 months from the date the purchase and sale agreement is signed by both the church and the recommended respondent.

What is the estimated cost of building the parking garage and new school, and the church renovations?

Rough estimates for the costs of construction are: $4MM for the garage, $14MM for the building in the South lot, $5MM-$7MM for the Sanctuary renovation.

What is the estimated increase to our endowment at the end of the process?

Between $8MM and $10MM.

What are “hard and soft costs”?

These are terms used to differentiate the type of things within a construction budget for a development. Soft cost are typically professional fees for architects, engineers and attorneys and other fees like permits. Hard costs refer to construction materials and labor costs associated with the act of building the project.

How does First Coral Gables protect itself / guarantee the completion of the new facilities?

First Coral Gables must approve who the general contractor is and will have an “owner’s representative” who will ensure the contractor and developer are performing as planned.

What happens if the respondent doesn’t do what they say?

The biggest risk is that the recommended respondent doesn’t start or finish construction of the new facilities or renovation of the Sanctuary. The developer will have posted $1,000,000 in non-refundable deposits as collateral to start construction. Those deposits are security for the church. The owner’s representative, the purchase agreement, the guarantee provisions in the developer’s construction loan and other contractual or legal mechanisms (insurance, bonds, etc.) encourage completion. Moreover, no land will be conveyed by the church to the recommended respondent until construction of the new facilities and the renovation of the Sanctuary are complete and TGPS has relocated to the new facilities. Nothing is 100%, though, which is why EDC has spent considerable time and effort vetting the recommended respondent.

THE FUTURE LOOK OF THE CHURCH AND SCHOOL

How big will the church be?

The EDC committee created a general program footprint (Addendum A of the RFP) which reflected the square footage uses of the church and TGPS at the time the RFP was written so that development ideas could be discussed in terms of footprint and square footage.

The Sanctuary building includes the rooms in the apse end, currently the choir room and the apartment and the connected path to the Hanger building as well as the Haines Batey Welcome Pavilion. The rooms in the apse end and the Welcome Pavilion are likely to be redeveloped and/or reprogrammed.

The new building proposed for the South parking lot will include the TGP Preschool and Elementary School, as well as church uses as determined in the next step of the process. The current development proposal allows for approximately 36,000 s.f. of building or 3 stories on the south lot. The next step of development would include designing a new school for the TGPS and the new spaces for church use within this building, the apse end rooms and any possible renovation ideas within the Sanctuary itself.

How big will TGPS be?

This will be determined by the church and school going forward. In analyzing the existing TGPS program needs, the EDC committee is confident that the Preschool and Elementary School can be accommodated in allowable square footage of the new building. The design process for that building will determine how large the new building will be.

Will the new school building have sufficient space to maintain and grow TGPS?

The EDC contracted with with architect Bruce Brockhouse to determine if the square footage and footprint of the New Building on the South lot would accommodate the current TGPS. The study concluded that the TGPS can be accommodated in the new building. If the TGPS continues to grow and expands as expected to grades 1-5, the requirements change for these age levels. Depending on variables such as class size and playground space, the TGPS can grow within the allowable footprint of 36,000 square feet and 3 stories. Obviously, there is not an infinite amount of space and so overall size will be limited. The church will have to make that decision as part of the design process for the new building in the next step of the process.