Our Plan for the long-term financial sustainability for St. Peter’s Church was divided into 3 Parts.

1. Value analysis and cost savings
2. Revenue potential of excess capacity
3. Events, member support, and donations

We presented Part 1 previously here.
It is also available on our website www.friends-of-st-peters.com.

PART 2

Utilization of excess capacity
St. Peter’s church is a registered charity under the Income Tax Act. This does not preclude the church from engaging in related business activities provided that they are linked to the charitable purpose and subordinate to that purpose.

Even at the best of times the church as a single purpose facility is underutilized. With our current services, it amounts to less than 1.5 hours every Sunday for less than 10 people. The historical size of our congregation allowed us to become complacent. Although some rentals of the premises have occurred, the church has not aggressively pursued initiatives to market the excess capacity of our church property. This is no longer an option.

Once we lose the income that we presently receive from renting the church to the Salvation Army, we have to find a way to replace this income. It is clear that it is not possible to achieve this within our own congregation. We no longer have the donation income to absorb the cost of an underutilized facility.
We have been centred on the way things have been done in the past, rather than acknowledging our current predicament. Our rental to the Salvation Army has shown that the church can be used by others. We can share our facility. It does not have to be dedicated to our congregation alone.

In fact, it is essential to take advantage of the excess capacity of our facility to help us pay for its ongoing costs and the programming that we need to undertake to revitalize the congregation.

Rental revenue:

1. Primary consideration has to be given to finding a congregation(s) that is/are willing to rent/lease our premises. With the proposed development of the Agricola Church location there may be congregations that currently lease that facility that would consider an arrangement with St. Peter’s church. We cannot expect the same revenue that we currently enjoy with the Salvation Army. However, we could anticipate a realistic rental revenue of $2,600 per month or an annual lease revenue of $31,200 per year per congregation.

2. We have 8 parking spots on the south side of the Sanctuary that are not used during the week. These are prime parking spots, in a high traffic area, that will be subject to major condo construction. These spaces will be marketable to the construction company that will be building the condos on the Roehampton Hotel site. Consider $20.00 per spot per day. Or $160.00 per day for 8 spots. $800 per week from the parking lot (weekdays only). Estimate that yearly rental could be $40,000. Note: The Executive’s concerns about the current homeless shelter will soon be nonexistent.

3. On the ground floor we have a room designated as a room for the “Women’s Auxiliary” space. It is used as a staging area for choirs and miscellaneous events such as weddings and funerals. It is, however, empty most of the time. We should consider a long-term lease for this space. Ideally it would be to a charitable organization in need of space such as the Estonian Foundation. We understand that they will need temporary accommodation beginning October 2022. Alternatively, it could become the administrative office of another congregation that we partner with. Approximate rental could be $1,000 per month for the space including a parking spot on the north side of the lot. Total income could be $12,000 per year.

4. With the increased condominium construction in the area, the area needs educational space for children. There is a need for schools such as the Montessori School, Spirit of Math, or Government sponsored day care. Our basement facility can be rented out weekdays for any of these purposes. Daily rental for this space could be $230. A negotiated monthly lease could be $2,600 per month or $31,200 per year.

5. The basement and youth room are ideal for activities such as the Estonian Saturday morning pre-school or scouts/guides. With the Estonian House closing effective October 01, 2022, this would be an ideal transitional opportunity. Our rental charge would be no more than what they are currently paying Estonian House. This space would be compatible with the proposed utilization of the space by the Montessori School or day care.

6. The church sanctuary is a single use facility. Its pews sit empty for 6 days of the week. Even on Sundays our attendance is at times less than 10. It is time to acknowledge this and develop a business plan to utilize this excess space when it is not used for church services. This does require removing the church pews to establish a flex space. If we make it available for programs that are government subsidized, we will not only generate income for our congregation but also provide a community service. Consideration should be given to community programs such as a drop-in centre, health clinic, exercise for seniors, yoga classes, and fitness classes. During weekdays, the daily rental could be up to $600.

URGENCY
Rental revenues have been estimated based on comparable prices currently available. Market conditions and time constraints may result in negotiated adjustments.

We cannot afford to be complacent. Some of these initiatives require immediate action to take advantage of opportunities that currently exist.

The Estonian House is closing its door to all Estonian activities at the end of October.

With Covid restrictions lifted, childcare facilities, and specialty day schools are looking for accommodation this fall.

Our own timeline must recognize that our agreement with the Salvation Army terminates in February of 2023 (unless once again extended).

There are some activities that have a longer realization date, such as finding a congregation(s) that would share our facility. The process requires a long lead time and it needs to be initiated as soon as possible.

We need to find a prospective client or partner by the middle of 2023 and have them in place before the year end.

We look forward to community feedback in order to prioritize the activities to be undertaken and input with respect to the timeline to implement the initiatives.

Märkmed: