Affordability
May 30th, 2007 by Todd
When considering a new location for a church, determining the affordability of the move cannot simply be based on the price of the land. The Church may be able to afford a parcel of land, but not be able to pay for all of the required site improvements, in addition to the cost of constructing the building. In many instances, it is more financially feasible for a church to buy and renovate an existing building of some type, rather than to build a new one.
Building on “virgin ground” is usually a much longer process than renovating because of the amount of planning and municipal approvals that need to take place before beginning construction. The planning process, site surveys and engineering, typically entail some significant expense. A new piece of property may require the following studies and engineering:
- Outbound and topographic surveys
- Wetland classification and delineation
- Environmental studies to verify that there are no hazardous materials that have been disposed of on site
- Geotechnical studies to determine soil bearing capacity or permeability of soil for waste water disposal.
- Preparation of engineered plans for municipal submittal and approval
- Traffic studies to determine suitability of roadways to receive traffic load and requirements for driveways, ingress and egress.
- Environmental impact statements that may be necessary to prove that the development of the property as proposed will in no way adversely impact the community in terms of noise or pollution generation, water utilization, etc.
These expenses can add up quickly, and, they are simply the ’soft costs’ of the project. Developing the site from scratch requires the construction of drives and roadways, parking areas, storm water management facilities, landscaping, site lighting, and utilities, (such as water, electric, sewer, gas). Depending upon the size of the property and the place where the building is to be located, these costs can add up significantly, and even approach the cost of constructing the building itself. This information is in no way intended to dissuade churches from building new; just be sure that all of the costs for the project have been adequately counted. Sometimes churches will attempt to save money, generally at the advise of a builder, by locating the building as close to the main roadway as possible. This may indeed reduce the initial construction costs as drives and utility runs are shorter, however it can dramatically interfere with the ability to optimally develop the rest of the site in the future.
An option becoming increasingly popular is to buy and renovate other buildings, such as old shopping centers, cinemas or even factories, warehouses, or Office buildings. In these situations, there is often significant existing parking, on-site utilities, and approved sewer and water that will save the Church both time and expense. Years ago, these settings would not be considered “church-y” by individuals considering attending. But with today’s generation- especially the Gen-Xers and Baby Busters- facilities that don’t look like a church can have a real advantage in reaching the un-churched. In these situations, however, it is important to make sure the zoning is properly considered before making an agreement for sale. (See Zoning)