Mega-Church for Sale: Only $30 million
- Posted by: Todd
- Posted on: Thu, March 06, 2008
- Viewed 69
- (44) comments so far
More from the article:
Local real estate experts consider the Without Walls property to be in one of the most promising areas for development in Tampa.
Most likely, the new buyer would tear down the buildings at 2511 N. Grady Ave. to build offices or some type of mixed-use development, Messier said.
“The real value is the land,” he said. “Of course, there’s always the possibility that another church would want it.”
The church got a $12 million mortgage on the property in December 2003 from Evangelical Christian Credit Union. The balance is due in January, but the loan could be extended another five years, said Lisa Valenzuela, a credit union spokeswoman.
She and other credit union officials wouldn’t discuss the terms or balance of Without Walls’ mortgage and other loans. The credit union offers only balloon payment-type mortgages, in which a church makes relatively small regular payments and then generally pays off the bulk of the loan in a lump sum.
Without Walls reported a $26.29 million debt in a 2006 audit. About $9.2 million of that was used to buy a 10,000-seat church in Lakeland in 2005. Without Walls is also exploring the sale of that 75-acre property, according to Messier.
Without Walls shouldn’t expect a quick sale of its Tampa campus, based on today’s cooling commercial real estate market, said Bill Eshenbaugh, president of Eshenbaugh Land Co.
“It’s not an instant sale at that price,” Eshenbaugh said. “It’s a great location, but the market is taking a breather. They are a little behind the curve.”
Accountability Concerns
A member of Without Walls’ board and at least one congregant were surprised to hear their church might be sold.
“I haven’t heard anything about it,” said Marlena Isaac, 23, who has attended Without Walls since 2003. “This is news to me.”
Isaac said if the church moves, she will likely move with it.
“It has nothing to do with the building,” she said of the worship experience. “For that matter, I could watch the service on the Internet.
“It’s a good church. You get a good message every week.”
Clark, the board member, said he is concerned that Randy White is making major decisions without seeking board approval. According to Without Walls’ 1998 articles of incorporation, White must consult with the board in managing church operations.
“Whatever they’re doing, they’re doing on their own, apparently,” Clark said.
White met with Clark in California about a month ago, Clark said. The pastor never mentioned selling the property, he said.
“I feel like there should be some accountability, but there doesn’t seem to be any,” he said. “It kind of makes this whole board thing rather immaterial, doesn’t it?”
According to 2007 state incorporation records, the church board is composed of the Whites, Clark, Zachary Tims of New Destiny Ministries and Norva Carrington, the church’s chief financial officer.
Board members Carrington and Tims did not respond to messages seeking comment.
If the building sells, White could use the money to build a new church, or to enhance the church’s Lakeland facility or for ministry work, said Randy Sterns, a Tampa attorney who specializes in tax law.
But White couldn’t personally profit from the sale, or give the money to church staff or board members, Sterns and other tax experts said.
Without Walls almost had a deal to sell its Lakeland church earlier this year. A real estate agent representing Without Walls asked the Family Worship Center in Lakeland if it wanted to buy the sprawling Polk campus.
Family Worship Center is looking for a larger church for its growing ministry, said business administrator Shawn Scarborough. Without Walls Central is roughly 120,000 square feet, about 30,000 square feet larger than the Family Worship Center.
The ministries negotiated, but the deal fell apart about a month ago when the two sides could not agree on terms, Scarborough said.
“We were very interested,’’ he said, “but nothing happened.”
More here...
Randy White isn't talking. Neither is his ex-wife and co-founder of Without Walls International Church, Paula White. But the Tampa newspaper is reporting that the 13.3 acre Tampa campus, which includes a 4,500 seat auditorium, a 94,000 sq. ft. office building, a television studio, and a small health club is now up for sale for a mere $30 million. One board member is talking though. According to the paper, Alice Clark said that "I had no clue this was on the table... You can't make a decision like that without the board's approval. Right?"
Comments
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Peter Hamm on Thu, March 06, 2008
[“For that matter, I could watch the service on the Internet.
“It’s a good church. You get a good message every week.”]
Not exactly a “missional” church in this person’s eyes, is it?
The accountability issue in this seems pretty huge, too.
Kevin Bussey on Thu, March 06, 2008
If this weren’t serious I would laugh. My how the sins of a few destroy so many lives.
Charles on Thu, March 06, 2008
Sounds like Randy is wheeling and dealing behind the boards back… I’d be interested in a response from Randy about this whole thing.
CS on Thu, March 06, 2008
Kevin:
“My how the sins of a few destroy so many lives.”
Amen. It took only one sin to throw the whole universe into chaos, after all.
—
CS
Ricky on Fri, March 07, 2008
“According to Without Walls’ 1998 articles of incorporation, White must consult with the board in managing church operations.”
This is the norm for most charismatic organizations today. The “pastor” is the CEO and routinely does what he wants. The board is nothing more than a rubber stamp.
“I feel like there should be some accountability, but there doesn’t seem to be any,” he said. ‘It kind of makes this whole board thing rather immaterial, doesn’t it?’”
Yeah, good luck with that.
Overall, I’m ecstatic that another mega-complex is being sold and hopefully going away.
I pray that all others do the same.
Peter Hamm on Fri, March 07, 2008
Ricky writes
[I pray that all others do the same]
My friend, you are not often the most polite individual, but that remark really takes the cake. I truly wish that you would count to 10 before hitting submit in the future. You have apparently decided that if a church reaches a certain size it is evil and should be shut down. As I see it, you are actually wishing harm on the body of Christ.
Your bitterness and anger at large churches is getting out of hand. I have no idea what kind of negative experience you’ve had, but I think you should really talk to someone about it instead of venting in this fashion. I don’t suspect anybody appreciates it.
Sorry, but that was too far!
Kevin Bussey on Fri, March 07, 2008
Ricky,
I’m on staff with a new church and we are no where close to being a large or mega church.
However, why would you want a mega church to fail? That means that the Kingdom is hurt. In Acts 3000 people accepted Christ so they were a mega church. I thing God loves all size churches that are healthy. There are healthy small and large churches just as there are bad large and small churches.
I have been blessed by influenced by pastors of large churches. Some of them have counseled me and prayed for me.
I also think highly of small churches and have actually been invited to speak at a small church conference later this month.
Paul on Fri, January 09, 2009
This story in almost funny (but is not), kind of shows what’s happening in the funeral business that they call the church, sad. The bigger the church, the bigger the mess.
Government Tax Sales on Sat, January 24, 2009
I loved this part, “But White couldn’t personally profit from the sale, or give the money to church staff or board members, Sterns and other tax experts said. “
Well they also couldn’t sell it without board approval but they are doing it. It’s sad to see people manage God’s assets as if they are their own.
small business loan on Mon, February 09, 2009
I didn’t get this statement “balloon payment-type mortgages”.What it is?
Property Investment Melbourne on Tue, February 24, 2009
As I read from one article a balloon payment is paid back when the loan comes to its contractual maturity.Am I clear small business loan?
Dubai Hotels on Sun, March 01, 2009
“I didn’t get this statement “balloon payment-type mortgages”.What it is?”
i would love to have to answer of this question ...
Hotels in Dubai on Wed, March 25, 2009
Cant beleive that this is happening as it is halarious and wouldnt want it always happenning
Online Real Estate Software on Sun, April 12, 2009
A balloon payment mortgage is a mortgage which does not fully pay back over the term of the note, thus leaving a balance due at maturity.
Dubai Apartments on Tue, April 14, 2009
Thanks Mr for answering us.
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