Four Viability Questions – If we purchase the Five Corners Mall

1. Can the church generate rental revenue without putting its 501c.3 non-profit status at risk?  Yes.

Non-charitable income cannot exceed 30% of our overall revenue.  The IRS has created an avenue for a second non-profit entity referred to as a “Charitable Support” company may be created under the 509(a)(3) IRS Code with the express role of managing Five Corners Mall.   The new LCC Support Non-profit Organization will oversee the property management company, address taxation requirements, and then pass-through the net profit to The Lighthouse as a donation.


2. Can the church make the payments – is it fiscally reasonable?  Yes.

Based on actual financials and past performance, the Five Corners Mall will generate positive revenue as soon as we acquire the property.  The chart below demonstrates, based on historical data, the last 5 years of revenue, adding a 5% property management expense and a projected mortgage payment.

Based on 2014, 2015, 2016, 2017, 2018 comparative to actual income with the addition of property management (A.P.R. 5%) and a mortgage payment of $16,104.65, the following table shows what the generated revenue of the Mall would have been for 5 consecutive years if the church owned the property over that period of time. (







Gross Revenue






Net Revenue












Adj, Net Income






5% Mgt on gross






Projected Pmt













3. Are there any foreseeable concerns regarding refinancing the property? Yes.

It is standard practice with commercial property to refinance between 5-10 years.  The challenge is that the minimum debt to value ratio for a refinance is 70%, based on the property’s income valuation. 

There are two ways to address this: by either raising rent thus increasing the property value and/or pay off the loan principle.  A modest 1% annual rent increase gets us to our target in 8 years.  No additional donations are required to accomplish this.  (to be adjusted to 2% and recalculated without increases to the church rent)


Income Analysis – with 2% annual rent adjustment


Value:  No rental changes

Debt (@5% on 30-year Mortgage)

Debt to Value Ratio %


































4.    Is the church going to become a property manager?  No.

This campaign assumes the church will hire an outside property management company.  The management company will put the facility on a maintenance schedule and will manage all aspects of the landlord/tenant relationship.  The management company will be hired by the LCC Support Company noted above.



Frequently Asked Questions

5.    What if we meet our goals and the church ends up not purchasing the mall?

In the short term, we will continue to lease the current facility but we anticipate the lease will rise.  Long-term, we intend to purchase land, a church or a commercial site.  It’s a question of when. The church has current facility needs. All of these needs will be considered in the potential purchase plan and according to our bylaws, the church membership will make the final decision.

If we find it necessary to stay in the current facility, we anticipate it will take 3 years for the completion of the campaign. And, it may take another few years before enough capital is raised to be able look at other purchase opportunities.  Presently, the estimate for another property purchase is between $600,000 and $900,000.

It’s All God!  This is His kingdom and His church.  We have seen God do amazing things so far.


6.    Will the leaders be talking about money a lot over the next 3 years?

During the 6 weeks of the campaign, we are going to be focusing on aspects of giving because it’s part of what the campaign is about. Then, during the next 35 months, we will give quarterly progress updates on the goals we’re reaching.  Many of these future successes will showcase how God is providing, and share stories of people who are being touched. But aside from that, our focus will be on  pursuing and loving Jesus.

If you have a concern at any time, you are welcome to make one of the elders aware. They can follow up on anything that needs to be addressed, or provide you with clarification.



How to Participate

Campaign Donation Period:              3 Years for Phases 1 and 2

This financial campaign is developed in 4 phases. The breakdown gives us measurable objectives based on exactly what is planned.  The initial objective is to get as far as possible in accomplishing all four of these phases.   This Campaign is the three-year commitment to raise funds for this project.

Our goal for the campaign is to fund the first two phases (of either plan) a total of $387,000.

                                 Purchase    $87,000.00               At start of Campaign

Donations Required Phase 1    $100,000.00              By the end of Year 1

Donations Required Phase 2   $200,000.00             By the end of year 3

                                       TOTAL   $387,000.00


Donations Required Phase 3   $200,000.00             By the end of year 6

                                       TOTAL   $587,000.00


How you can participate:

  1. Pray for the campaign!
  2. Participate in the informational process (Sunday sermons, small groups, website review) so you can hear the questions and provide input as needed.
  3. Contact the Campaign leadership team or the Elders to get the answers you need to make an informed decision.
  4. Give as God directs you.



Please make your campaign pledge over and above your present regular giving.  The existing regular church donation support is needed for operations.   This campaign is the faith step in your giving…


Matching Funds:

Matching Funds are incredibly helpful to inspiring new supporters into generous giving.  If you would like to provide matching funds, please consider amounts over $100,000.  For more information please contact Ben Edman.

     The more we can do to complete the first 2 phases as quickly as possible the better. This will speed the process of increasing revenue and reducing the need for donations for Phases 3 and 4.  The cost of phases 3 and 4 may be modified but this plan takes us to completion in Year 10!