Oklahoma Baptist Homes for Children

 

1983-1992

Board Votes to Purchase New Building

by Sarah Zimmerman, Assistant Editor
First printed in the Baptist Messenger March 22, 1990
Purchasing a new Baptist Building without cutting ministry program support was approved unanimously last week during the Baptist General Convention of Oklahoma Board of Directors' regular meeting. Closing date is set for March 20.

Cost for the building, located just south of the intersection of Interstate 44 and May Avenue in northwest Oklahoma City, is $3,531,000. The six-story structure was built in 1984 at the cost of $9 million. With 103,000 square feet, the BGCO cost per square foot is $34.28, said William G. Tanner, BGCO executive-director.

The seller is a group of investment companies headed by Irish Realty Corporation. Principals include John Kennedy, president of Irish Realty, and Mike Samis, president of Maclanburg-Duncan.

Cost for the building, located just south of the intersection of Interstate 44 and May Avenue in northwest Oklahoma City, is $3,531,000. The six-story structure was built in 1984 at the cost of $9 million. With 103,000 square feet, the BGCO cost per square foot is $34.28, said William G. Tanner, BGCO executive-director.

The seller is a group of investment companies headed by Irish Realty Corporation. Principals include John Kennedy, president of Irish Realty, and Mike Samis, president of Maclanburg-Duncan.

In addition to the purchase price renovation is estimated at $621,000 and start-up costs are estimated at $464,000, brining the total package cost to $4,616,000. Start-up costs include such things as moving expenses, telephone and computer networking cables, closing costs and attorney fees, said Marlin Hawkins, BGCO controller.

Concern was expressed by several board members that buying a building not adversely affect the convention's ministry programs. It is estimated that the total annual operating and lease cost for the new building will be $366,600 more than operating the current Baptist Building.

However, board members were assured that additional expenses will be covered by income from endowment and interest earnings and that the convention's ministries will not be adversely affected by the move.

The new building will actually be purchased by the Baptist Building Corporation, a new organization formed to own and provide leasing and management services for the building. The not-for-profit corporation is owned by the Baptist General Convention of Oklahoma, and its directors were elected by the BGCO board of directors last week. Directors will not receive a salary for their service.

Money to purchase the building will come from investment proceeds of the 1981 sale of the Oklahoma City Children's Home. The property was sold for $12 million - $3.5 million was used to build the Children's Home in south Oklahoma City and $8.5 million was placed in a custodial fund for family care ministries.

The custodial fund is managed by the Baptist Foundation of Oklahoma. The foundation's board of trustees agreed Friday to invest a portion of the custodial funds in the new corporation. The BGCO and the foundation will lease space in the new building from the corporation. The corporation will pay a return on the investment of the custodial funds to the foundation. The interest rate will be evaluated every six months to ensure it is at fair market value. In turn, the foundation will disburse the earnings to family care ministries, so the office maintains its income.

Bob Ross, foundation president, said the agreement is not a loan but an "investment from which we get a rate of return" Earlier, Ross said, "in this way, the convention will have a new building, the foundation will have a prudent investment and the family care ministries office will have its same income."

Tanner said one of the things which makes the agreement most appealing to him is that: we're not increasing our indebtedness."


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