Externally Focused:  The Mall God Built

Orginally published on Thursday, September 06, 2007 at 5:02 AM
by Todd Rhoades

The work that Bishop Vaughn McLaughlin and the Potter's House has done in the revitalization of Jacksonville, FL is unbelievable. And it's a story that most people have not heard. I recently heard Bishop McLaughlin speak at the Externally Focused Church Conference, and it was such a great story of a church that is working, not just to introduce people to Christ, but literally change their community. Here's part of an article from the Jacksonville Newspaper about the latest project at Potters House. (And you have a couple of other opportunities to hear their story first-hand at a couple of Externally Focused Conferences coming up this fall).

From the Newspaper...

The mall has always been a temple for dedicated shoppers, but a new Jacksonville shopping center is taking that concept and making shopping a tangibly religious experience.

The Kingdom Plaza at the Normandy Mall is part shopping mecca and part Christian mission. The freshly refurbished mall is owned by the Potter’s House Christian Fellowship, a non-denominational mega church on the Westside. The for-profit mall is geared toward religious fundraising: any profits left over after paying mall expenses will be rolled over into the church’s missionary projects.

Spinning off nonprofit entities linked with for-profit businesses is increasingly common, according to industry analysts, but the scope of this venture is a rarity.

The mall’s stores are a mix of local and national tenants, but the place has an overwhelmingly Christian vibe, including a Rite 2 Life nutrition shop (slated to open in October) and the Kingdom Kuts barber shop.

The church itself owns three of the biggest tenants: a bowling alley, the mall’s sole eatery and a gym, complete with inspirational scripture painted on the walls above the treadmills.

The marriage between religion and retail is nothing new. Churches and religious charities have been raising money with thrift shops and bake sales for years. But the Kingdom Plaza is augmenting that concept into a full-scale, for-profit venture.

Kingdom Plaza is nestled in the former Normandy Mall, a shopping center that was vacant for several years until Potter’s House purchased the property in 2003 for $4 million and commenced $7.5 million worth of renovations.

Inside, the mall’s interior looks like any other indoor shopping center. There’s a fountain babbling in the center, the smell of food wafting through the walkways and diamonds glittering on cushions in one shop window. But then there are the tinges of religion: The mention of a “King” in shop logos, the pictures of the cross in a jewelry store.

Plus, the mall is literally within steps of the Potter’s House church, a building so large, its main sanctuary fits more than 4,000, and the children’s church seats 600.

The next-door mall was the brainchild of the local leader of Potter’s House, Bishop Vaughn McLaughlin. He has a dual vision of the mall, conceptualizing it as an extension of the ministry where people can have a “clean and decent” time and troubled folks can find employment.

To him, “keeping busy” and doing commerce is what God intended parishioners to do while they are waiting for judgment day.

“We are creating synergy between the mission and business,” he said. “They shouldn’t be separate. Business is human nature; it’s what we do.”

McLaughlin sees the mall as a potentially profitable enterprise, one that can compete with local malls and bankroll future ministry-related projects - while perhaps enticing potential new church members. He often plugs the mall during his sermons.

Kingdom Plaza is taxed

While it’s common for religious entities to expand into enterprise, this project seems uniquely aggressive, according to Dan Busby, vice president of Evangelical Council for Financial Accountability, an organization aimed at guiding Christian organizations toward sound and ethic financial standards.

“I haven’t heard of anything exactly like that,” he said. “It’s fairly common for large churches to have bookstores or other enterprises in town that might generate some funds. But by leasing space to a lot of businesses, this sounds like an expansion beyond what many mega churches would have.”

Kingdom Plaza is taxed like any other business, unlike its parent, the Potter’s House. The spinoff enterprises are usually created as for-profit corporations in order to control taxation, Busby said.

“The aim is to clearly pay taxes on what should be taxed, and not have any issues from the business income that would negatively impact the church corporation,” he said.

As money for nonprofits become increasingly difficult to obtain, many are opting to start outside businesses (an activity dubbed social enterprise), according to Rena Coughlin, chief executive officer of the Nonprofit Center of Northeast Florida.

“More and more tax-exempt organizations seek to diverse their revenue streams by developing enterprises, most of which are loosely linked to their mission,” she said. “With tougher and tougher budget cuts, I think that everyone is looking at diversification. It’s dangerous when you are over-dependent on a revenue stream, particularly on the whim of political decision makers.”

Grand opening in October

The center will be at full capacity when it has its grand opening in October. A real estate agency, luxe spa, and a trendy shoe shop are all slated to open. (Not welcome: lingerie shops or stores retailing golden “grill” teeth.) It’s also attracted at least one national tenant, cell phone retailer Clear Talk Communications.

The connection with a religious organization wasn’t controversial for the brand, according to store manager Juan Queeley. He does admit that church administrators have asked him “many, many” times to become a member of the church.

The mall could be a shrewd move for national retailers.

For one, there seems to be a built-in audience. The church has several weekly services, and McLaughlin hopes parishioners flood the mall afterward.

He also plans to juice the profit by placing related businesses near each other. For example, the bowling alley is near a party supply store for bowling party supplies, and if church members are getting married in the nearby sanctuary, they can rent or buy formal wear in the mall’s bridal shop.

When shopping at Rich Carmichael’s custom-printed T-shirt shop, you may get a side of spirituality with your order. He often whips out his Bible to minister to customers who stop at Glorious Tee’s and Totes for custom heat-pressed religious shirts. He says the mall was the perfect home for his business because the rent is reasonable - and he can proselytize to his heart’s content.

“I can read the Bible when I take a break, and then get back to work,” he said. “And nobody here will tell me I can’t.”

Linking the message with the merchandise is the best way to ensure such a project’s success, nonprofit expert Coughlin said.

“The toughest time in terms in sustaining themselves and having meaningful income are the ones that go outside their mission statement,” she said.

“God created the business model,” said Narlene McLaughlin, the bishop’s wife and an administrator with the church. “Some people say religion and business should be segmented and separate, but that’s just not true.”

More here at the newspaper... And more about Potters House here…

This post has been viewed 1656 times so far.


  There are 2 Comments:

Hi... I'm Todd Rhoades. I'm a chronic workaholic, love to connect leaders with other leaders, and would consider myself somewhat of a 'maven'. Hopefully you'll find something here at MMI you'll like and will return often. If you want, you can find out more about me or follow my every step.

MondayMorningInsight.com | PO Box 446 | Bryan, OH 43506 |