FIRST CONGREGATIONAL CHURCH OF COLUMBUS ACQUISITION

AND DEVELOPMENT OF THE BYERS USED CAR LOT

First Congregational Church of Columbus is faced with an extraordinary but costly challenge. By purchasing and developing the Byers used car lot next door, the church could eliminate the commercial distractions that now block its beautiful west facade; it could create a park setting along Broad Street from Cleveland to Washington Avenues for highlighting the church and its neighbor - the Columbus Museum of Art; it could enable worshippers and visitors comfortably to enter the sanctuary from the front of the church instead of the back door; and it could gain additional parking for worshippers and visitors and additional expansion space for the church's future.

But this opportunity comes at a significant cost. The cost of acquiring the property, rehabilitating it for park and parking purposes, developing roadway access from Broad Street to the church's west entrance and then to its parking areas, and making appropriate internal improvements at the church's west and front entrances -- all consistent with the church's current architectural design and materials - could total over $4 million. While much of these costs could be spread over several years, they represent the greatest financial challenge the church has ever faced.

How should the church address this challenge? The following outline discusses the opportunities and estimates the costs of this challenge. As a Congregational Church, it is up to the congregation to decide how it shall answer this challenge. Hopefully, this outline will assist the members of the church in their decision.

I.     The Availability of the Byers Used Car Lot

            A.For the first time in over 165 years, the Byers used car lot has become available for purchase.

                        1. Located at the northeast corner of East Broad Street and Cleveland Avenue, the lot consists of 1.7 acres. It fronts 200' on Broad Street west of First Congregational Church ("FCC") and 332' on Cleveland Avenue from Broad north across and including the westerly extension of Connell Alley to the south side of the Canzani Building of Columbus College of Art & Design. ("CCAD")

                        2. The lot is owned by the Platt Heirs Trust, which is in the process of selling many of its holdings

            B.The lot currently blocks the west side of the church with unkempt trees, utility poles and wires, two trailer offices, a large sign, high intensity lighting, and paved parking rimmed at the sidewalks with white brick.

            C.        The Byers lot is the last, non-institutionally owned property in the multi-block area from Broad to Long Street and from Cleveland to Washington Avenue. This area contains FCC, CCAD, and the Columbus Museum of Art ("CMA") and has been called Columbus' "Arts Campus."

D.                It is located in the heart of Columbus' Discovery District, which also includes Columbus State Community College, Capital University Law School, Columbus Metropolitan Library, Grant Medical Center, the Kelton House and Franklin University.

II.         The Opportunity

            A.         Throughout the 76-year history of FCC at 444 East Broad Street, the Byers lot has blocked both the view and the effective use of the church's west facade and entrance.

1. The church's building cannot be viewed by persons driving or walking on Cleveland Avenue or on Broad Street from downtown because of the lot's unkempt trees, utility poles and wires, trailer offices, large sign, and high intensity lighting. These commercial distractions frustrate and compromise the church's architectural and artistic excellence.

2. Because the Byers lot blocks automobile access to the church's west facade, the entrance there is unused. Because of the lack of parking near the front of the church, its front entrance is little used. As a result, nearly all access to the church is not through its front entrances on the south and west but through its back door on 9th Street or through the Education Wing.

3. Because the church has no adjoining, unused property, it has no opportunity for meaningful expansion of facilities in the future at its present location.

            B.         Failure to acquire the Byers lot would permit it to fall into the hands of other commercial interests which could include a high rise office building, an automobile service station (as used to exist on the lot up until about 20 years ago), or a fast food or carry out restaurant - with their respective noises, smells and traffic.

            C.        Acquisition of the Byers lot would free the church from the limitations now imposed by the lot.

1. It would eliminate the risk of an inconsistent, commercial development being installed and operated next door to the church.

2. By removing the commercial distractions of unkempt trees, utility poles and wires, trailer buildings, signs, and high intensity lighting, the church could be seen and its architectural and artistic excellence appreciated from the west and south.

3. Developing the southerly (Broad Street) part of the Byers lot as a natural park would place the church in an open setting similar in character and equal in size to the CMA setting to the east. This natural "green" park would extend along Broad Street from Cleveland Avenue across 9th Street to Washington Avenue.

4. Including the Byers lot in an unbroken Arts Campus along Broad Street from Cleveland to Washington would create the opportunity to consider with CMA vacation of 9th Street and a more attractive use of the space between the church and the CMA.

5. The church building would become a more integrated part of the Arts Campus and could more effectively participate in joint arts events with CMA and CCAD. The first opportunity for that cooperation will occur in June, 2008, when the Columbus Arts Festival will open on the Arts Campus for four years each June through 2011.

6. The church could provide automobile access to its west and front entrances and thence to new landscaped parking on the rear portion of the Byers lot or to its existing parking behind the church.

                                    i. A curb cut to Broad Street already exists just west of the southwest corner of the church. A roadway could be constructed from the curb cut to allow autos to enter from Broad to drop off/ pick up passengers at the west entrance of the church and thence proceed to new parking on the back portion of the Byers lot or to the existing parking behind the church.

ii. The proposed roadway would intersect with the existing alley that runs west from Connell Ailey to Cleveland Avenue. This would enhance access between Cleveland Avenue and all of the church's existing and proposed parking.

                                    iii. Automobile access to the church's west entrance would also provide easy and safe access to the church's front entrance. This would be particularly helpful for weddings and funerals, which now must brave the traffic hazards of Broad Street in order to use the church's front entrance.

7. Acquisition and control of the Byers lot would create for the church the opportunity for expansion of facilities in the future. If the church didn't have this real estate, such future expansion would be unfeasible.

III.Acquisition

A. The asking price for the lot is $6 Million. The owner's independent appraisal of the property values it at $5.25 Million. The Franklin County Auditor values the property at $1.7 Million.

B. Based upon comparable sales of properties in the area and difficulties in developing the property for commercial use, the church believes the lot's realistic market price is substantially less than the asking price.

C. The lot is still leased to Byers until 2009 under the terms of a fifteen year lease at the rate of $150,000 a year. Byers is not using the lot, and it has subleased it to CCAD as a parking lot for an annual rental of $30,000.

D. The seller has expressed a willingness to consider any form of sale transaction, including a land contract, to facilitate financing the purchase cost and thereby spreading out that cost over several years.

E. Other details of acquisition could include naming rights for the sellers and a sale for less than appraised value, coupled with a charitable gift of the remainder; but the sellers have not indicated any interest in these alternatives.

IV.Partnering

            A. There are two alternatives for partnering in the acquisition and development of the Byers lot:

1. Shared participation by all partners. This assumes that all partners share the same objectives and resources not only for acquisition but also for development of the lot. Obviously, this is not the case for the Byers lot; and while some potential partners may have capital resources for acquisition, they may have only limited resources for development and operation of the property. Further complicating shared partnering is the expressed reluctance of any potential partner to contribute resources for the benefit of a religious institution like FCC.

2. Separate participation by all partners. This assumes that partners may join their resources for acquisition of the entire property but then split the property to serve their own particular development objectives. For example, the church might purchase only the easterly 50' of the Byers lot, while the City of Columbus might purchase the rest for a park. Participation agreements would require each partner to contribute enough to cover the acquisition cost of its portion of the lot and then to develop its portion consistent with an overall plan for the entire lot. This would enable FCC to participate as a partner and to finance its share of the lot without other partners' implicitly contributing to the church. However, it also would mean that the church could not control for its benefit development of that part of the lot held by other partners.

            B. Because the Byers lot is the last, non-institutionally owned parcel in the multi-block Arts Campus from Broad to long Streets and from Cleveland to Washington Avenues, FCC has explored partnering with the other property owners in the Arts Campus - CCAD and CMA. Neither has the current capability to join in purchasing the lot.

1. CCAD is "land poor." It has exhausted its financial resources by purchasing most of the available property in and around the Arts Campus, and it has stated that it is unable to join in purchasing the Byers lot. It is in the midst of a $12 million capital campaign, none of which can be devoted to purchasing the lot.

2. CMA is half-way through an $80 Million expansion program that will extend its facilities north to Gay Street, and it has stated that it is unable to add to its financial challenge by joining in purchasing or developing the Byers lot. In the recent past, the Museum has expressed no interest in the lot for either parking or a sculpture garden/park.

            C. Motorists Insurance Company is located on the south side of Broad across from FCC, and State Auto Mutual Insurance Company is located on the north side of Broad east of CMA. Their location and active participation in the Discovery District makes them interested in what happens to the Byers lot. Motorists looks out upon the lot, and State Auto has developed along its east side at the northwest corner of Broad and 11th Street a park which could complement a similar park west of the church at the northeast corner of Broad and Cleveland. But at this time neither company is prepared to partner in either the acquisition or development of the Byers lot.

D. The Columbus Foundation administers several funds whose resources might be available for      the acquisition and/or development of the lot. After reviewing its funds and talking with   potentially interested governmental and quasi-governmental institutions, it has concluded that it cannot participate in purchasing and developing the Byers lot.

            E.         The Discovery District and its related development company lack the financial resources to participate in acquiring and developing the lot.

            F.         The City of Columbus Parks and Recreation Department has the capital resources to participate in acquisition and development of a portion of the lot, and it is studying this opportunity. However, its primary interest at this time is development of a park north of the church and west of Columbus State Community College.

V.         Cost:

The estimated total cost of acquiring and developing the Byers lot could cost between $3.3 and $6.3 Million.

            A.         Acquisition of the Byers lot would cost from $2.0 to 5.0 million. It realistically could cost $4.3 million, including development costs. Serious negotiations have not begun, because the church has not yet raised the financial commitments necessary to fund an offer.

            B.         The Byers lot would be cleared of all shrubs and trees, utility facilities, trailer buildings, signs, lighting and paving. The lot would be leveled, and drainage installed. Some of the clearing costs may be borne by the seller. $200,000.

            C.        Development of the Byers lot would include construction of a green park along Broad Street consistent with the green area in front of the church and the CMA. While its southerly edge along Broad Street would be grass, its northerly edge would include contoured earth, boulders, small trees and substantial shrubs to block the view of the parking area behind it. $100,000.

            D.        A roadway would be constructed from the Broad Street curb cut to the west entrance of the church and thence to the new Byers lot parking area and the existing parking behind the church. This roadway would have to be generous enough to allow access by wedding and funeral vehicles, and passage of vehicles around other cars stopped for loading and unloading passengers. The Connell Alley westerly extension to Cleveland Avenue would be re-paved. The City may contribute to the Connell Alley re-paving cost. $200,000.

            E.         The west entrance to the church would require a paved, covered and lighted drop off/pick up area (consistent with the design and materials of the church building) to protect people there from bad weather. $140,000.

            F.         The area around the church's west entrance and the roadway from Broad Street to the parking areas would be landscaped and illuminated. $50,000.

            G.        The new parking area in the rear of the Byers lot would be paved, curbed, landscaped and illuminated to at least the level of the existing parking behind the church. $260,000.

H.         The carriage house near the back of the Byers lot could be saved and restored for maintenance equipment storage and other practical purposes of the church. $30,000.

            I.          The overall landscaping of the Byers lot would be designed 1) to create a park-like setting for the church - without blocking the view of the church's west facade - and 2) to isolate from Cleveland Avenue the new parking area at the rear of the Byers lot to assure the comfort of persons parking there.

            J.         Inside the west and front entrances of the church, the stairway and the lavatory facilities in the basement would be improved, and a cloak room would be added on the first floor. $150,000.

K.     A possible further refinement of the west entrance would be the addition of an elevator running from the basement to the west entrance to the first floor. $200,000.

VI.    Timetable:

            We would recommend that we proceed with a $2.5 million capital campaign and attempt to purchase the lot in the near future. With $500,000 of the campaign devoted to repairs and maintenance of the existing church building, the remaining $2 million would fund the acquisition and development of the Byers lot, as a park and parking lot, for the next 5 years. After 5 years we would need to either sell 3/4 of the lot to CCAD, United Church Homes or a compatible buyer, or continue to fund the purchase for another 5 years through a renewed capital campaign.