3 Militia Drive

• In a word, timeliness. The development group is actively engaging with the Town of Lexington to help meet requirements for more affordable housing that the Commonwealth of Massachusetts has put in place for all local towns with MBTA support.
• We believe that the compelling offer before us is significantly higher because of the unique value of our property in the development group’s plan to expand their planned housing development.
• Looking back several years, #4 and #5 Militia Drive sold for around $4.2 million. In the current commercial real estate market, best estimates are that our 3 Militia building would be worth around $3.5 million as a standalone sale. The developers are offering us $6.9 million.

• No; Grace Chapel’s financial situation is strong. Prior to receiving an offer, we were not actively seeking to sell any of our properties.
• We own buildings because they facilitate ministry activity. Our primary purpose with any spaces we own is to offer ministry to our surrounding communities. This allows us to shift our resources from office space to ministry space and impact. 
• Good stewardship of our resources means we do the best we can to optimize what own, including real estate.

• The proceeds from the sale of the property will be used for capital expenditures, not for ongoing support of our normal ministry functions. Good stewardship principles dictate that sustainable support for ongoing ministry comes through our regular sources of income, which includes general fund giving and rentals.
• While a small portion of the proceeds from the sale will go into a reserve fund, our intended plan is to allocate the bulk of the money into strategic and timely projects that fall into four categories: Growth, Ministry, Capital Expenditures, and Office Relocation.
  • Growth Initiatives, including outreach ministries, Connection Centers, etc.
  • Ministry Upgrades, including meeting spaces, Campus improvements, Mission Partner Capital Project, etc.
  • Long-term Financial Stability, including Reserve Fund and Long Term Capital Expenditures
  • Office Relocation for Central and Lexington-based staff to #2 Militia Drive and #59 Worthen Road.

While the purchase and sale agreement will be signed in early December, the closing on the transaction will not happen until February of 2025. Part of the transaction includes a zero-cost leaseback that allows our staff to remain in our offices rent-free for a year after the closing date that extends into February 2026.

• The intended use for the money is for areas outside of the operational budget. Our giving from the congregation is the best way to support our operational needs in an ongoing sustainable budget. We will have ongoing oversight from the Board of Elders and input from the finance committee to help best utilize these funds.

• We were able to leverage the PPP and the Employee Retention Credit based on our ability to keep staff employed through the pandemic. It was an important supplement to our operational budget as we rebuild our stewardship and giving across the congregation.
• We do anticipate using a portion to supplement a reserve fund and provide some funds for future needs that could be aligned with growth initiatives in the early years of a new senior pastor.

• Missions is funded through our operational budget as the amount given directly to missions doesn’t cover the much larger amount we actually give to our partners and other programs in support of our missions’ strategy. The Missions budget is provided to us from the Missions Ministry leadership each year with guidance from the Board of Elders, and includes areas of local missional support through Community Engagement across our campuses.
• That said, we are working with Pastor Jeanette Yep on the potential to support a Mission Partners Capital Project as that would align with our intended use of the funds. 

• Quite the opposite, actually. The renovations to 2 Militia Drive and 59 Worthen Road provide the opportunity to create more efficient working spaces for staff and include updated meeting spaces that serve staff, ministry teams, and groups. We’re excited about offering improved on-campus meeting spaces that serve ministry on Sundays and throughout the week!

• Parking at the Lexington campus has historically been a challenge, but the reality is that we’re only losing about 35 spaces at 3 Militia Drive. We’ve communicated to our congregation through announcements and eNews that we do not currently have authorization to park at #4 and #5 Militia Drive on Sundays (though it appears some people still do), but we have negotiated for 35 spots as part of a parking easement to support the need as parking demand grows along with attendance.
• • We will continue to review other options for longer term parking solutions to meet our future needs and for special events.

• We had a flexible work environment long before the pandemic accelerated the work from home trends. It’s more common for our staff to go meet with people where they are than have people come to our offices. We have required office meeting days for most staff (with flexibility of course), but we see most people spending those days in meetings with their peers or others versus core office time.
• We believe that a collaborative work environment with spaces designed for teamwork and supported with the right technology will create a better, more productive work environment for all.

• We are still working on those elements with some help from a group of volunteers that do this kind of design work professionally.
• We hope to have all Lexington Kidstown spaces downstairs in Kidstown as would be most people’s preference and much better for security. That shift will allow us to designate some space for a few offices and some open staff work space at 59 Worthen Road.
• We also will continue with our emphasis on adult discipleship, using renovated space at 2 Militia Drive or any of the 14 classrooms on the top floor of 59 Worthen Road that are not being utilized on Sunday mornings. We’re in the process of exploring potential class sizes and technology needs for those spaces and creating a plan to best serve the needs of discipleship and other ministries now, and in the future. This work is just beginning.

• We re-financed our debt in April of 2022 and have all our debt at 3.5% fixed rate loans through 2027. So, we are working with the finance committee on the options to pay down some of our debt or other financial options due to our low interest rate. Our audit firm advises us that our debt is low for a church of our size, which is a good thing, and also part of our consideration.