Now that the land issue is finalized, and we have our own piece of land free and clear of any partners or other encumbrances other than the standard city ones, it is time to start thinking in earnest about moving ahead with the actual building and the fund raising that will be required to make this a reality.

As of mid-November, the following is an update of the status of the building and the funding based on estimates and information as it is available.  There will still be a number of approvals required from both the City of Calgary and the Diocese of Calgary before we will be able to break ground on our new facility.

 

PROJECT COSTS:

-meetings have been held with our architect and he has been advised that the maximum that we could afford would be $4.0 million dollars for a 16,000 square foot facility.

-with this building cost, the overall cost to complete the new facility is estimated to be approximately $6.8 million, which is made up of the $4.0 million building cost and $2.8 million of other costs such as the installation of utilities, landscaping civil works, permits, professional fees, building permits, etc.  This $6.8 million is inclusive of contingency and the appropriate GST.

 

PROJECT ASSETS:

       -on the asset side, we have approximately $3.6 million                 available to us, made up of the following:

 

     approximately $2.6 million in cash which includes        amounts remaining in the capital account plus the proceeds from the sale of the land; and

     a grant of $1.0 million from the Diocese of Calgary.

 

-we also have an offer from the Diocese of Calgary to locate their offices in our facility and enter into a lease with the Parish with an initial term of 10 years. The lease payments from the Diocese are to be based upon market rents.  We anticipate that with the revenue received by the Parish from the Diocese over these 10 years, we may be able to obtain and support a mortgage of $1.0 million.

 

In Summary:

                      Project Cost                   $6.8 Million

                      Curent Parish Cash      <$2.6 Million>

                      Diocesan Grant            <$1.0 Million>

                      Potential Mortgage              <$1.0 Million>

 

                      Shortfall                          $2.2 Million

 

Finally, a couple of the things the Diocese will be looking for before they give their approval for us to go ahead will be our ability to operate and maintain the new facility.  We will also have to demonstrate to them that we have the funding in place to pay for the new facility.