Sh'ma L'kehila: Listen to the Community Feasibility Study ... · Since Bat and Bar Mitzvah’s are such important life cycle events, we ... Feasibility Study Snapshot 2 Financial

Sh'ma L'kehila: Listen to the Community Feasibility Study Snapshot

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Congregation Snapshot: Membership, Programs, Financials

Membership and Programs

B’nai Havurah is a congregation experiencing strong growth. Over

the last three years, membership has increased by 20% and

collected dues have increased by 8%. This demonstrates the

growth potential and future demand for space within the

congregation. The table to the right illustrates this growth.

B’nai Havurah’s programs are at the heart of the community. The

following chart shows three years of religious school attendance

by age. Class sizes are under 15, however at each grade level, classes are showing upward trends. It should be noted that B’nai

Havurah’s religious school has 12 students (pre-K to 5th grade) from Rodef Shalom congregation in 2015. However, these students will not

be returning for the 2016-2017 school year.

B’nai Havurah Religious School Attendance

Pre-K K 1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th

2013/2014 9 1 9 5 4 11 9 8 10 9 0 0

2014/2015 6 9 3 9 9 6 11 9 9 4 9 0

2015/2016 8 5 14 11 8 13 10 12 7 3 3 7

Relatively few life-cycle event ceremonies are currently held on site.

Based on comments heard during the listening phase, this is largely due

to concerns about the aesthetics and functionality of the current facility,

suggesting that an improved facility may attract more events.

Since Bat and Bar Mitzvah’s are such important life cycle events, we

examined them specifically. The table to the right illustrates B’nai Mitzvah

totals for the past three years. Over the past three years, B’nai Havurah has

had 32 Bat and Bar Mitzvahs. The average on-site Bat and Bar Mitzvah has been smaller than those held off-site. See the table to the right for

average invitation and attendance for 2013-2015. It is also relevant to point out that none of the Bat/Bar Mitzvahs have held a post-party on-site

in the last three years.

1 Program Income- Membership Dues, and Program Service Fees 2 Rental revenues were identified as a line item to be eliminated in each option evaluated

B’nai Membership and Dues

2013 2014 2015

Dues $249,118 $258,627 $273,900

Collected $240,383 $256,018 262,840

# Members (Households) 216 234 259

2013 2014 2015

B’nai Mitzvah Total 8 9 15

B’nai Mitzvah On-site 5 2 6

Oneg Shabbat On-site 5 2 6

B’nai Mitzvah Post-party On-site 0 0 0

B'nai Havurah Financial Summary

2013 2014 2015

Income

Actual Actual Actual

Program Income1 $272,567 $292,629 $345,614

Contributed Support $133,540 $143,723 $118,012

Special Events Income $25,661 $35,968 $46,000

Rentals2 $25,022 $27,532 $20,794

Investments

$0 $0

Other $45,472 $14,504 $10,181

Total: $502,262 $514,356 $540,601


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Financial Position

In order to better understand B’nai

Havurah’s capacity for a facility

project, we completed a review of

B’nai Havurah’s financial statements

for the last three years. See chart to

the right for summary.

Facility Feasibility Snapshot

Four options were considered in the

feasibility study:

Option 1 – Renovate 6445 E. Ohio

Ave. This option preserves the

existing footprint of the current

facility, but reconfigures the floorplan

to make it more functional and to use

space more efficiently.

Option 2 – New Build at 6445 E. Ohio Ave. This option assumes the current facility is demolished and in its place a new 13,783 square

foot building with two floors is constructed. This option provides B’nai Havurah with a completely new facility, oriented to Ohio Avenue to

better utilize the site area

Option 3 – Sale of Ohio Ave and Acquisition of New Property. This option assumes the sale of the East Ohio Avenue property and

acquisition of a new building. A proxy property was identified during this engagement at 2015 S. Pontiac Way with an asking price of

$1,575,000 for a two story 19,373 square foot building. Whether B’nai Havurah purchases the building at Pontiac Way or another of

similar size, this option would afford the congregation a significantly larger sanctuary, larger social hall, more classrooms and still have

additional space for flexible use or income-generation from tenants.

Option 4 – Share Space at Central Christian Church. B’nai Havurah has a strong relationship with Central Christian Church due to the

history of using this facility for High Holy Days. There is an option to share under-utilized space at the church on a year-round basis. This

option could also provide a temporary location during any disruption to use of the existing building during renovation or new build. Note:

Due to the fact that B’nai Havurah would utilize the building on Sundays for Religious School and adult programming, the FTF and NCN

determined that this was not a feasible option, other than to consider this a temporary solution while waiting for a new or renovated space

to be completed.

New Option 4 – Land Acquisition and New Build This option assumes the purchase of a parcel of 1 – 2 acres of land on property within

Denver. We have had discussions with Denver Jewish Day School at 2450 S. Wabash Street. They have land available for sale at $13 per

acre and we are researching the buildability of the land. The purchase of 1 acre (43,560 sf) of land would cost $566,290. An advantage of

the this option is that we would be the use their classrooms for our Religious School programs on Sunday In addition and have access to

their gymnasium, playground and soccer fields. In turn, DJDS would like to use sanctuary for school-related programming during the

weekday. Finally, joint-programming may enrich both groups’ programing. Based on our work on Option 2 (level and build a new building

on our existing site), a new building without classrooms and hallway space would be about $7,500 square feet. At a cost of $277 psf (see

Option 1). The cost would be $2.1M.

3 In 2013, payroll was combined with contract services

Expense

2013 2014 2015

Payroll $320,268 $305,688 $311,634

Contract Services $03 $39,340 $41,840

Operations $54,538 $63,294 $72,165

Awards & Grants $0 $0 $7,896

Facilities & Equipment $65,182 $66,557 $68,623

Business Expenses $28,777 $31,195 $20,762

Travel & Meetings $0 $0 $2,288

Total: $468,765 $506,074 $525,208

Surplus/Deficit: $33,497 $8,282 $15,393


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The following chart summarizes each option among twelve criteria (Option 4 hereafter represents land acquisition and new build, hereafter):

Square Footage – Option 1 has the smallest square footage and Option 3 or 4 (purchase land and build) has the most

Timing – The time to complete each option varies from Option 1 which would require the least, to Option 4, which would require the most.

Estimates on timing are included in the cost estimates in the Appendix.

Sanctuary Plus Overflow Seating – Option 4 has the most seating, Option 1 has the least.

Event Seating – is similar across all four options.

Classroom/Flexible Space – Ranges from a low of 7 to a high of 14+ across options including the library and social hall areas. As of this

writing, Option 4 classroom space has not been specified.

Parking – Option 3 or 4 has the most and Option 1 has the least.

Price – Option 1 involves the lowest cost and Option 3 and 4 has the highest (although in Options 3 and 4, the proceeds from the sale of

Ohio Avenue would offset the cost considerably).

Cost Per Square Foot – Option 1 has the lowest cost per square foot.

Funds to be Raised – Option 1 would likely require the least amount of fundraising since it is a rental option and Option 4 has the most

funds to be raised.

Note: Additional costs including closing costs, architectural fees, interest are included in costs. We selected a very conservation loan amount of $400,000 for Options 1 and 2 and $300,000 for Options 3 and 4. The scenarios presented are one of many financial approaches and strategies.

Detailed budgets include expenses for building operations.

Option 1 – Renovate

(Ohio Ave)

Option 2 – New Build

(Ohio Ave)

Option 3 – Building

Acquisition

Option 4 – Land

Acquisition +

build w/o

classrooms

Option 4 A – Land

Acquisition and

build w/

classrooms

Square Footage 10,508 13,783 19,373 7,500 13,783

Timing

Sanctuary + Overflow 300 330 350-400*

(250 chapel+library)

330 330

Event Seating @ Round

Tables

240 260 250-300 (210 in

chapel+library)

260 260

Class/Flex Spaces 7 (10 max) 10 (14 max) 9 (14 max) 0 10 (14 max)

Parking 20 23 66 150 150

Price $$ $$$ $$$ $$$$ $$$$

Project Cost $ $1.9M $3.8M $4.0M $566K Land+

$2.1M Bldg.=

$2.7M

$566K Land +$3.8M

Bldg.+ = $4.4M

Cost PSF $179 $277 $206 290 (with land) $290 (with land)

Funds to be Raised after

Financing & Sale of Ohio

Bldg.

$1.5M

(assumes $400K loan)

$3.4M

(assumes $400K loan)

$2.7M

(assumes $1M Ohio

Bldg. and $300K loan)

$1.4M

(assumes $1M

from Ohio Bldg.

and $300K loan)

$3.1 M

(assumes $1M from

Ohio Bldg. and $300

loan)

Per Year if 3YR Campaign $500K $1.07M $833K $467K $1.03M

Per Year if 5 YR Campaign $300K $640K $500K $280,000 $620K


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East Ohio Background:

The one-story building that B’nai Havurah calls home was

constructed in 1980 as a multi-tenant office building. The

congregation has owned and occupied the building for 20 years, and

has remodeled the interior at various times to accommodate

evolving needs and growth. A portion of the building’s 10,508

square feet has been continually leased since B’nai purchased the

building in 1995. The property is approximately .48 acres.

The building is assumed to be constructed of concrete block exterior

walls with a low-sloped, trussed roof structure and a non-structural

overhanging fascia. Numerous roof-top units provide heating and

cooling to the building.

Renovations/Changes: Option 1 evaluates the existing building’s physical capacity to meet the congregation’s needs within its current one-story, 10,508 square foot

East Ohio location. The concept plan reconfigures all interior spaces to optimize adjacencies, flow and flexibility while retaining all exterior roof

and wall locations. A second floor or “pop-top” was not explored in this option. Since the exterior still reflects its 1980’s medical office

beginnings, Option 1 would also include enhancements to the building’s exterior to better reflect the character and spirit of the congregation

within.

The plan organization carefully considers the congregation’s current and future programmatic needs and desires including a more visible and

accessible entrance, enhanced flexibility of interior spaces, a dedicated catering kitchen and additional classrooms to accommodate

educational programming for children and adults.

The following are the primary assumptions of this plan:

1. Plan assumes full removal of existing interior improvements and full reconfiguration of interior spaces.

2. Main entrance is relocated to the east to allow for a new covered entry, easier access from the parking lot.

3. New covered entry at the revised main entry location for increased safety and shelter from the elements.

4. Increased size of sanctuary to comfortably seat 150.

5. Contiguous overflow spaces that double as additional sanctuary seating, classrooms, meeting and event spaces. Expands sanctuary.

6. Provide a lobby space where people can gather, wait for a meeting or a ride with visibility to the parking lot.

7. Provide a dedicated catering kitchen adjacent to event space for easy access.

8. Provide a centrally located library with additional shelving for collections which also serves as larger meeting space for movies, education,

board meetings.

9. Administrative offices are located together near the front entry for visibility and security.

10. Recaptures leased space to provide seven uniformly- sized classrooms to accommodate 20-25 children.

11. Provide ADA accessible restrooms in a central location along with a family restroom in the classroom wing.

12. All spaces to be designed to ADA standards.

13. Utilize 3-4 parking spaces for small green space, garden/ play space at new front entry.

14. Provide new energy efficient windows and doors throughout.

15. Provide sound attenuating, operable partitions between sanctuary and overflow spaces.

16. Update HVAC configuration for revised plan configuration.

17. Enhance lighting and sound system.

18. Install a sprinkler system for fire suppression.

19. Reduces parking spaces to 20. A shared parking agreement with the adjacent bank or other businesses could provide additional spaces

when the demand is great.

Timing: The project timeline shows a 20 month total project period. The first 13 months would be used for fundraising, as well as building the project

team including owner’s representative, design team, construction documents, general contractor, bids, and utility services. Construction is

estimated to take six months including installation of furniture, fixtures and equipment.


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Option 1 - Summary

Pros Cons

High value because it accomplishes most of the design

objectives for the lowest cost.

Parking meets code but could be insufficient if congregation

grows.

Maintains current location and is the most modest in scope

(haimish).

Outdoor space is limited.

Easier to renovate a building you know than one you haven’t

occupied.

Large events will require reconfiguration of social hall

(moving tables and chairs).

Option 1 – Renovation of 6445 East Ohio Avenue, Sample Layout


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Project Budget- Option 1

USES OF FUNDS Cost Estimate Cost Per

Square Foot % of Total

Sitework & Demolition $69,304 $6.60 4%

Concrete $23,750 $2.26 1%

Masonry $0 $0.00 0%

Metals $38,585 $3.67 2%

Wood & Plastics $129,958 $12.37 7%

Thermal & Moisture Protection $106,313 $10.12 6%

Doors & Windows $159,500 $15.18 9%

Finishes $213,554 $20.32 12%

Specialties $20,850 $1.98 1%

Equipment $12,000 $1.14 1%

Furnishings $28,300 $2.69 2%

Special Construction $0 $0.00 0%

Conveying Systems $0 $0.00 0%

Mechanical $194,398 $18.50 10%

Electrical $157,620 $15.00 9%

General Conditions $92,331 $8.79 5%

Contractor’s Fee (6%) $74,788 $7.12 4%

Construction Total: $1,321,251 $125.74 71%

Soft & Miscellaneous Costs $230,202 $21.91 12%

Furniture, Fixtures & Equipment $103,750 $9.87 6%

Subtotal: $1,655,203 $157.52 89%

Project Contingency (10%) $165,520 $15.75 9%

Moving (2x) $20,000 $1.90 1%

Temporary Location (6 months) $12,000 $1.14 1%

$1,852,723 $176.32 100%

Total Gross Square Footage:

10,508

SOURCES OF FUNDS

Per Square Foot

% of Total

Contributed Capital

Equity from Ohio Avenue $0 $0.00 0%

Capital Campaign $1,552,723 $147.77 84%

Debt

Conventional Financing $300,000 $28.55 16%

$1,852,723 $176.32 100%


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Cash Flow – Option 1

2% = inflation factor for Income 2% = inflation factor for Expenses

2013 2014 2015 2016 2017 2018 2019 2020 2021

Income Actual Actual Internal Projected Projected Projected Projected Projected Projected

Program Income $272,567 $292,629 $345,614 $352,526 $359,577 $366,768 $374,104 $381,586 $389,217

Contributed Support $133,540 $143,723 $118,012 $120,372 $122,780 $125,235 $127,740 $130,295 $132,901

Special Events Income $25,661 $35,968 $46,000 $46,920 $47,858 $48,816 $49,792 $50,788 $51,803

Capital Campaign $0 $0 $0 $517,574 $517,574 $517,574 $0 $0 $0

Rentals $25,022 $27,532 $20,794 $20,794 $0 $0 $0 $0 $0

Additional Income/Fundraising $0 $0 $0 $0 $40,000 $40,000 $40,000 $40,000 $40,000

Investments $0 $0 $0 $0 $0 $0 $0 $0 $0

Other $45,472 $14,504 $10,181 $10,385 $10,592 $10,804 $11,020 $11,241 $11,465

Total: $502,262 $514,356 $540,601 $1,068,572 $1,098,382 $1,109,198 $602,656 $613,909 $625,387

Expense

Payroll $320,268 $305,688 $311,634 $317,867 $324,224 $330,708 $337,323 $344,069 $350,950

Contract Services $0 $39,340 $41,840 $42,677 $43,530 $44,401 $45,289 $46,195 $47,119

Operations/Awards/Grants $54,538 $63,294 $72,165 $73,608 $75,080 $76,582 $78,114 $79,676 $81,270

Awards & Grants $0 $0 $7,896 $8,054 $8,215 $8,379 $8,547 $8,718 $8,892

Facilities & Equipment $65,182 $66,557 $68,623 $69,995 $71,395 $72,823 $74,280 $75,765 $77,281

Facility Project-Renovation - - - - $1,552,722 - - - -

Debt Service - - - $24,079 $24,079 $24,079 $24,079 $24,079 $24,079

Capital Reserve ($.75 PSF)

$7,881 $7,881 $7,881 $7,881 $7,881

Business Expenses $28,777 $31,195 $20,762 $21,177 $21,601 $22,033 $22,473 $22,923 $23,381

Travel & Meetings $0 $0 $2,288 $2,334 $2,380 $2,428 $2,477 $2,526 $2,577

Total: $468,765 $506,074 $525,208 $559,791 $2,131,108 $589,315 $600,462 $611,832 $623,429

Surplus: $33,497 $8,282 $15,393 $508,781 -$1,032,726 $519,883 $2,194 $2,077 $1,958

Cumulative Surplus/Deficit: $41,779 $57,172 $565,953 -$466,774 $53,110 $55,304 $57,381 $59,339

Surplus: $33,497 $8,282 $15,393

Average Monthly Available: $2,007 Add Back Depreciation & Amortization: $9,837 $9,837 $9,837 Assumed Interest Rate: 5.5%

Available for Debt Service: $43,334 $18,119 $25,230 Assumed Term (# months): 240 Available with 1.2 DSC: $36,112 $15,099 $21,025 Assumed Square Footage: 10,508 Average Annual Available: $24,079


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Summary

Option 2 explores the impact of demolishing the

existing B’nai Havurah building and constructing a

new building for the congregation on the existing .48

acre East Ohio site. This concept orients a 13,761

square-foot building to the south to maximize solar

exposure and to establish usable green space for a

garden or play area adjacent to the front entry. The

new-build concept includes an efficient and

functional 23-space parking lot with direct access to

a highly visible, covered main entry.

Once inside, the sanctuary and overflow areas are

configured within a one-story portion of the building (with higher ceilings) to emphasize the sacred nature of the space while

optimizing adjacencies, flow and flexibility throughout. High quality operable partitions would allow the sanctuary seating to

expand from 172 to 332 for large services or events. A large lobby (that could double as a gallery), centrally located library,

and dedicated catering kitchen are all organized around the primary sacred spaces for ease of access and use.

An adjacent two-story wing could accommodate the congregation’s stated educational and social programming for children

and adults with 10 uniformly-sized classrooms plus a teen lounge, a collaborative office arrangement, and enhanced

resource access and storage. All new construction would be designed and built to a high level of energy efficiency and per

ADA standards throughout.

Timing: The project timeline provided by Cliff Shumway shows a 25 month total project period. The first fourteen months would

be used for fundraising, as well as building the project team including owner’s representative, design team,

construction documents, general contractor, bids, and utility services. Construction is estimated to take ten months

including installation of furniture, fixtures, and equipment.

Option 2 - Summary

Pros Cons

Allows for additional space for growth and greater flexibility. Cannot utilize the equity in the building to fund this project.

Maintains current location. Parking meets code but could be insufficient if congregation

grows.

Enables complete re-imagining of the site and building

configuration

Highest per square foot cost.


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Option 2 Project Budget

USES OF FUNDS Cost Estimate Cost Per

Square Foot % of Total


Concrete $221,454 $16.07 6%

Masonry $167,350 $12.14 4%

Metals $390,967 $28.37 10%

Wood & Plastics $158,577 $11.51 4%


Doors & Windows $203,700 $14.78 5%

Finishes $360,510 $26.16 9%

Specialties $34,300 $2.49 1%

Equipment $12,000 $0.87 0%

Furnishings $47,350 $3.44 1%


Conveying Systems $45,000 $3.26 1%

Mechanical $318,387 $23.10 8%

Electrical $220,528 $16.00 6%


Contractor’s Fee (6%) $166,907 $12.11 4%




Subtotal: $3,514,647 $255.00 92%


Moving (2x) $20,000 $1.45 1%

Temporary Location (10 months) $20,000 $1.45 1%

$3,800,672 $275.75 100%


13,783

SOURCES OF FUNDS

Per Square Foot

% of Total

Contributed Capital

Equity from Ohio Avenue $0 $0.00 0%


Debt

Conventional Financing 300,000 $21.77 8%

$3,800,672 $275.75 100%


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2013 2014 2015 2016 2017 2018 2019 2020 2021

Income Actual Actual Internal Budget Projected Projected Projected Projected Projected

Program Income $272,567 $292,629 $345,614 $352,526 $359,577 $366,768 $374,104 $381,586 $389,217



Capital Campaign $0 $0 $0 $1,166,891 $1,166,891 $1,166,891 $0 $0 $0

Rentals $25,022 $27,532 $20,794 $20,794 $0 $0 $0 $0 $0


Investments $0 $0 $0 $0 $0 $0 $0 $0 $0

Other $45,472 $14,504 $10,181 $10,385 $10,592 $10,804 $11,020 $11,241 $11,465

Total: $502,262 $514,356 $540,601 $1,717,888 $1,764,698 $1,775,514 $619,656 $630,909 $642,387

Expense

Payroll $320,268 $305,688 $311,634 $317,867 $324,224 $330,708 $337,323 $344,069 $350,950


Operations and Awards & Grants $54,538 $63,294 $72,165 $73,608 $75,080 $76,582 $78,114 $79,676 $81,270

Awards & Grants $0 $0 $7,896 $8,054 $8,215 $8,379 $8,547 $8,718 $8,892

Facilities & Equipment ($6.91PSF) $65,182 $66,557 $68,623 $69,995 $88,349 $90,116 $91,918 $93,757 $95,632

Facility Project Renovation -less loan amt - - - - $3,500,672 - - - -

Debt Service - - - $24,079 $24,079 $24,079 $24,079 $24,079 $24,079


$6,892 $6,892 $6,892 $6,892 $6,892

Business Expenses and Travel & Mtgs. $28,777 $31,195 $20,762 $21,177 $21,601 $22,033 $22,473 $22,923 $23,381

Travel & Meetings $0 $0 $2,288 $2,334 $2,380 $2,428 $2,477 $2,526 $2,577

Total: $468,765 $506,074 $525,208 $559,791 $4,095,022 $605,618 $617,111 $628,834 $640,791

Surplus: $33,497 $8,282 $15,393 $1,158,097 -$2,330,324 $1,169,896 $2,545 $2,075 $1,596

Cumulative Surplus/Deficit: $41,779 $57,172 $1,215,269 -$1,115,055 $54,841 $57,386 $59,461 $61,058

Surplus: $33,497 $8,282 $15,393 Average Monthly Available: $2,000

Add Back Depreciation & Amortization: $9,837 $9,837 $9,837 Assumed Interest Rate:

5.5%

Available for Debt Service: $43,334 $18,119 $25,230 Assumed Term (# months):

240

Available with 1.2 DSC: $36,112 $15,099 $21,025 Assumed Square Footage:

13,783

Average Annual Available: $24,079


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Option 3 - Acquisition

Summary:

Option 3 explores the impact of renovating an

existing building to meet the congregation’s

programmatic and spiritual needs. For this

study, the Facilities Task Force identified a

two-story 19,373 square-foot vacant office

building on a one acre property in southeast

Denver.

By utilizing the bulk of the existing room

configurations, the proposed layout of B’nai’s

concept program yielded a plan with sufficient

space for nearly all desired synagogue functions, including an area large enough to hold larger life cycle events and High

Holy Day services along with larger annual events and celebrations. The building interior could be configured to achieve the

stated ideal program configuration where 225-250 people could be seated for a service in the “chapel” while the “social hall”

could accommodate an equal number for a seated meal without having to turn over the space.

The first floor could take advantage of an existing kitchen space adjacent to the sanctuary/ social hall and also

accommodate a large library for study, meetings, and movies. An elevator would be needed to provide full access to the

second floor.

The second floor could be configured to accommodate the entire religious school needs with 9+ classrooms along with

space for adult programming and a teen lounge. Sufficient storage areas could be located throughout the building to

accommodate book collections and resources. All restrooms would be updated to be ADA compliant. With existing 9’-0”

ceilings throughout the building, this plan proposes to raise the ceiling height in the chapel and in a selected area of the

sanctuary to enhance the sacred quality of these spaces. These modifications would require structural alterations to the

second floor and reduce the occupiable square footage on the second floor.

It’s assumed that green space around the building could accommodate garden and play space. No enhancements to the

building’s exterior, aside from additional exit doors as required by code, would be made.

Since this property was selected as a proxy for the acquisition of any larger building, the following information is meant to

provide guidance around design, fit and cost. If the Pontiac property is not available in the future, the concepts identified

here could be applied to another location.

Timing: The project timeline provided by Cliff Shumway shows a 20 month total project period. The first thirteen months would be

used for fundraising, as well as building the project team including owner’s representative, design team, construction

documents, general contractor, bids and utility services. Construction is estimated to take six months including installation

of furniture, fixtures, and equipment.

Option 3 - Summary

Pros Cons

Twice as much square footage would give a wide range of

options in terms of layout and accommodating larger

numbers in the sanctuary and social hall.

Ongoing operating costs double.

Additional parking. Much of the space may be idle much of the time.

Room for considerable growth. If Pontiac Way property becomes unavailable, then B’nai

Havurah will need to identify and compete in a real estate

market with escalating prices.

Current structural column locations may limit flexibility of use

in some spaces.


13

Option 3 - Acquisition


14

Budget – Option 3

USES OF FUNDS Cost Estimate Cost Per Square

Foot % of Total

Acquisition $1,575,000 $81.30 39%

Acquisition-Related Costs $50,000 $2.58 1%

Acquisition Total: $1,625,000 $83.88 41%


Concrete $13,250 $0.68 0%

Masonry $0 $0.00 0%

Metals $94,890 $4.90 2%

Wood & Plastics $77,857 $4.02 2%


Doors & Windows $81,800 $4.22 2%

Finishes $343,077 $17.71 9%

Specialties $27,150 $1.40 1%

Equipment $12,000 $0.62 0%

Furnishings $48,500 $2.50 1%


Conveying Systems $45,000 $2.32 1%

Mechanical $271,222 $14.00 7%

Electrical $279,940 $14.45 7%


Contractor’s Fee (6%) $99,924 $5.16 2%




Subtotal: $3,778,430 $195.04 94%


Moving (1X) $10,000 $0.52 0%

Temporary Location $0 $0.00 0%

$4,003,773 $206.67 100%


19,373

SOURCES OF FUNDS

Per Square Foot % of Total

Contributed Capital

Proceeds from Sale of Ohio Ave $1,000,000 $51.62 25%


Debt

Conventional Financing 300,000 $15.49 7%

$4,003,773 $206.67 100%


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2013 2014 2015 2016 2017 2018 2019 2020 2021

Income Actual Actual Internal Budget Projected Projected Projected Projected Projected

Program Income $272,567 $292,629 $345,614 $352,526 $359,577 $366,768 $374,104 $381,586 $389,217



Capital Campaign $0 $0 $0 $901,258 $901,258 $901,258 $0 $0 $0

Rentals $25,022 $27,532 $20,794 $20,794 $0 $0 $0 $0 $0


Investments $0 $0 $0 $0 $0 $0 $0 $0 $0

Other $45,472 $14,504 $10,181 $10,385 $10,592 $10,804 $11,020 $11,241 $11,465

Total: $502,262 $514,356 $540,601 $1,452,255 $1,542,065 $1,552,881 $662,656 $673,909 $685,387

Expense

Payroll $320,268 $305,688 $311,634 $317,867 $324,224 $330,708 $337,323 $344,069 $350,950


Operations and Awards & Grants $54,538 $63,294 $72,165 $73,608 $75,080 $76,582 $78,114 $79,676 $81,270

Awards & Grants $0 $0 $7,896 $8,054 $8,215 $8,379 $8,547 $8,718 $8,892

Facilities & Equipment $65,182 $66,557 $68,623 $69,995 $117,804 $120,160 $122,564 $125,015 $127,515

Facility Project - Renovation (less loan amt) - - - - $2,703,773 - - - -

Debt Service - - - $24,079 $24,079 $24,079 $24,079 $24,079 $24,079


$14,530 $14,530 $14,530 $14,530 $14,530

Business Expenses and Travel & Mtgs. $28,777 $31,195 $20,762 $21,177 $21,601 $22,033 $22,473 $22,923 $23,381

Travel & Meetings $0 $0 $2,288 $2,334 $2,380 $2,428 $2,477 $2,526 $2,577

Total: $468,765 $506,074 $525,208 $559,791 $3,335,217 $643,300 $655,394 $667,730 $680,312

Surplus: $33,497 $8,282 $15,393 $892,464 $1,793,152 $909,581 $7,262 $6,179 $5,075

Cumulative Surplus/Deficit: $41,779 $57,172 $949,636 -$843,516 $66,065 $73,327 $79,506 $84,580

Surplus: $33,497 $8,282 $15,393 Average Monthly Available: $2,000

Add Back Depreciation & Amortization: $9,837 $9,837 $9,837 Assumed Interest Rate:

5.5%

Available for Debt Service: $43,334 $18,119 $25,230 Assumed Term (# months):

240

Available with 1.2 DSC: $36,112 $15,099 $21,025 Assumed Square Footage:

19,373

Average Annual Available: $24,079


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Option 4 – Land Acquisition with New Build on Denver Jewish Day School (DJDS) Property

Because this opportunity was recently discovered, B’nai Havurah has not developed a detailed plan.

More than one option as to where we might build

Use of DJDS’s classrooms would save us building expense

B’nai Havurah and DJDS operate during different times

About 20% of DJDS families with children in lower grades are not affiliated with a synagogue

DJDS families are in need on a sanctuary and social hall for B’nai Mitzvah

Cost per square foot to build is estimated at $277 per square foot (we used Option 2 as model)

Cost of land is $13/sf

Pros Cons

High value because we can design the space to our needs Working with another organization in regard to shared space

requires planning and careful consideration

Opportunity to share space, thus saving money Some may perceive location as too far from our demographic

core

Opportunity to partner with DJDS on programming Concern that we’d lose our identity

Parking is plentiful

Outdoor space is plentiful

Possible growth of membership Other?


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Fundraising Feasibility Study Summary:

• Fundraising potential for renovation or construction has never truly been measured.

• Communal, modest and egalitarian nature of membership does not match the traditional “giving pyramid” for capital

campaigns but does not mean goal is out of reach.

• Possibilities of other revenue streams limited to borrowing and potential value from sale of current property.

• Contributions to campaign would be separate from dues and “other half/above and beyond” campaign.

• Strong willingness to donate – even from those already giving in multiple ways.

• Emphasis on only doing what is truly feasible not over-reaching or over-committing.

• A percentage of any campaign should support operational reserve for new building/growth.

• Preferred structure of 3-year pledges.

• Acceptable range of gifts from $1,500-$50,000 ($500/year - $16,666/year).

• At least half the membership need to commit to gifts at this level for the campaign to be successful.

• Involvement from the rest of membership to give to each one’s capacity.

• Any recognition must be consistent with policies of B’nai Havurah. For a campaign like this, many people expressed

desire to be recognized but willing to do it collectively and not by size of gift.

• No actual solicitations were completed.

• Interviews of 27 members suggest a minimum pledge amount of $225,000

• A stretch commitment from those interviews suggest a possible $450,000-$500,000

• Membership Interviews + Giving History Data + Membership Size = Potential Raise of $1,000,000 - $1,500,000

• Interviews do not support a higher goal.

Pledge Scenario to Reach $1.5 Million

Number of Pledges Pledge Amount Total for this level Cumulative Total

8 $50,000 $400,000 $400,000

5 $25,000 $125,000 $525,000

25 $15,000 $375,000 $900,000

20 $10,000 $200,000 $1,100,000

30 $5,000 $150,000 $1,250,000

50 $1,500 $75,000 $1,325,000

Remaining $25,000 from gifts

<$1,000

$25,000 $1,350,000

Additional Loan $150,000 $150,000 $1,500,000


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Other Considerations:

As B’nai Havurah moves forward with its facility project, there are several considerations that should be part of the

ongoing process:

Competing capital campaigns – NCN and DSS are completing a nonprofit space survey that shows an upturn in capital

campaigns as nonprofits face an increasingly expensive rental real estate market. During the recession, many capital

campaigns were deferred and now many are being re-activated. The Jewish Community Center - Denver recently

announced a $50 million capital campaign. Various campaigns may or may not impact a B’nai Havurah campaign, but

a scan of competing demands on financial resources is important.

Alternate sites – this analysis makes assumptions about certain locations that may or may not be available when B’nai

Havurah is ready to proceed. Consideration of alternative sites may be necessary, and this may involve re-assessing

the timeline for various options. It is our goal that this analysis will provide a framework for evaluating other options not

considered here.

Shared space – if B’nai Havurah chooses an option that contains space that can be leased to others on a regular

basis, we have additional resources we can provide to support this arrangement if desired. Any facility should be

considered for its flexible use of space. As B’nai Havurah has generated rental income in the past, this is an approach

that can be beneficial on many levels. We recommend first satisfying B’nai Havurah’s needs in selecting a facility, but

are happy to provide assistance at a later date if shared space is something B’nai Havurah decides to pursue.

Conclusion

NCN believes that B’nai Havurah is poised for the next stage of its history. It is a growing congregation with increasing financial

sustainability. There is a consistent desire to develop a facility that better represents the community in terms of its aesthetics

and functionality. We have presented the opportunities and challenges for four different options, including design concepts, cost

estimates, and financial models. With the additional fundraising feasibility analysis provided by RDM Communications, B’nai

Havurah now has the information to collectively discern which option best meets all of its needs and to move forward and create

a new physical space that best reflects the community.

Documents

Sh'ma L'kehila: Listen to the Community Feasibility Study ... · Since Bat and Bar Mitzvah’s are such important life cycle events, we ... Feasibility Study Snapshot 2 Financial