Lifehouse MOMENTUM- part 2

In February, we learned that the Hagerstown 10 Cinema complex was going up for auction, and we immediately called our church to prayer. During that season, we fasted, prayed, and waited. As we waited, we didn’t feel led to bid on the property.

On March 17th, the auction came and went with no buyer. That day, the owners asked us to consider purchasing the property. I read Joshua 3:2-5 that morning:

“When you see the ark of the covenant of the Lord your God… you are to move out from your positions and follow it. Then you will know which way to go, since you have never been this way before. But keep a distance of about a thousand yards between you and the ark; do not go near it.”  Joshua told the people, “Consecrate yourselves, for tomorrow the Lord will do amazing things among you.”

In the past, I have been reluctant to lead the church to own or buy a building.  This was for several reasons:

• Most church buildings consume the bulk of the church’s resources (over 50%),
  
• Ministry events and gatherings begin to gravitate toward the building rather than toward the community,
  
• The community and the believers begin to identify the term “church” as a building rather than a people.
  

I did not want the ownership of a building to hinder Lifehouse’s focus on the community. So in the past, I have explained to our leadership team that we would own a building only if ministry was hindered by not having a building, and if our resources would not be tied up in the facility.

Thankfully, God orchestrated a business plan that would not only enhance our impact in the community, but it would not burden the church financially.  Between March and May, we prayed and negotiated with the owners, and on May 15th, we signed a lease-to-buy agreement.

The miraculous part of the story is that Joe and Lois Quesenberry, our congregational pastors, prayed over this very property back in 1978.  At the time, the theater was a sordid business, even showing X-rated movies to families.  The Quesenberry’s prayed that the property would be redeemed and used for the glory of God. 

Here's a video of their story:

Who knew that 30 years later, they would be ministering at the very church that would occupy the property!

Details and Business Plan for the Cinema Complex

The owners had a $2.8 million contract on the property two years ago but declined the offer.

Our final agreement: 

• Beginning June 1, 2009, Lifehouse will lease the cinema complex for one-year for $3,000 monthly.  This amount is nearly equal to what we currently spend leasing the theater on Sunday mornings and using office space elsewhere.
  
• At the end of the one-year lease, we have a guaranteed option-to-buy the 7.2 acres of the cinemas and parking area for $838,000 (what owners owe on it).
  
• Also in the lease, after two years, we have a second option-to-buy the additional 11.6 acres for $892,000. (Giving us room to expand.)
  
• Hagerstown Cinema 10, the current theater company renting the facility simultaneously with Lifehouse, will operate in the building as usual until the end of August.
  
• Leitersburg Cinemas, LLC (a new theater company) will occupy the cinemas beginning in October in a separate lease agreement with the owner. Their lease will be $7,000 monthly, plus 95% of utilities.
  
• During our one-year lease, our use of the building will increase significantly, and we will be able to renovate and use office space on the second floor.
• At the end of our one-year lease, we will purchase the cinema complex and discontinue making payments of $3000 monthly. Then, as the owners, we will continue to lease the building to Leitersburg Cinemas, LLC to cover the full mortgage and additonal costs.
• The income from Leitersburg Cinema, LLC will cover all mortgage costs, nearly 95% of utility costs, and the company has additionally agreed to tithe 10% of their profits to Lifehouse.
  
• Additionally, Leitersburg Cinemas, LLC is owned and managed by a Christian businessman at Lifehouse, who has agreed to operate the cinemas as a family-oriented business.   The cinemas will NOT show R-rated movies, and will create a very family-friendly environment.
  

To summarize, Lifehouse will have the benefit of owning the building without the financial burden.  Because the building will continue to operate as a theater, Lifehouse will continue to focus on the community, and the church will continue to be viewed as a people rather than a building.  Our hope is that Lifehouse Church East and Leitersburg Cinemas, LLC will be able to work together to use the theater property for God’s glory.

Renovating the Cinema Complex

To make this endeavor successful, our part is to renovate the building to make it a highly visible, attractive facility.  In doing this, we will increase the impact of our church, and attract business to Leitersburg Cinemas LLC. 

• October 1, 2009 is the target date for a Grand Opening of Leitersburg Cinemas LLC and the new Lifehouse Church East building.  Our initial phase of renovations must be complete by that date.
  
• The initial phase of renovations include: new bathrooms, roof repairs, new lobby and café area, cosmetic exterior improvements, landscaping, parking lot sealing and relining.
  
• By December 2009, we hope to renovate 2nd floor office space for Lifehouse.
  
• By April 2010, we hope to finish the exterior structural renovations.
  
• Total cost for renovations are estimated at $550,000.