Elder Updates

Elder Update: Finances
November 26, 2019

Our Members Meeting on November 13th was focused predominately on our Bracebridge and Huntsville locations, providing vision, direction and clarity for how we as a church body plan to move forward. The following financial Elder update is to communicate to all three of our locations some important financial progress that has been made. 

As was explained at our All Church Meeting in June, the final cost of the Huntsville Building was $2.1M. We paid for this through a Construction Loan of $1.2M, two private interest free loans ($174K & $150K) and pledges through the ONE Campaign.

This leaves us with a current debt of $1.524M. Given that the construction loan has a high interest rate of 6.75%, we have been pursuing financing to pay the above debt at a lower interest rate. Praise God for our strong financial position that has allowed us to pursue traditional mortgages.

The Royal Bank was very interested in helping us out after seeing our financial situation and had an interest rate in the low 4% range but could only provide $1.2M. The company that holds the construction mortgage (CSS) could only offer interest rates in the low 5% range, while Kindred Credit Union is able to take the full debt in the high 4% range. So, our plan is to pursue the Kindred Credit Union.

In order to receive $1.5M in financing, Kindred needs the security of the Huntsville Church, ie the $2.2M appraised value of the Huntsville Church allows them to loan us 60% of this appraised value, ie $1.32M. In order to receive the $180K to get to a total loan of $1.5M, Kindred needs the security of the Parry Sound Church as well.

The financing plan includes a short term loan of $400K and a long term mortgage of $1.1M. There are 2 more years left on the pledge campaign, which has gone well as we have actually exceeded the pledged amounts.

This means that, if giving continues through to the end of the pledge campaign, we will have a loan/mortgage of slightly more than $1M as 2022 begins. This should allow the security on the Parry Sound Church to be released.

Work is continuing with Kindred; final approval is expected in about 4 weeks.

– The Elders of Harvest Church –
Peter Gibson, Adam Cormier, Godfrey Wilkinson, Bob Galashan, Roger Samuel & Kaj Ballantyne

Previous Elder Updates