PresentingThe Maude Brown PorterCenter for Excellence3107 South Crums LaneLouisville KY 40216 Sorors Christie McCravy Soror Natalie White On behalf of the Hortense B. Perry Foundation
Property Details/Features • Property Type: Former Church/Educational Building • Approximately 5.25 acres of land • Approximately 15,749 sqft finished space • 76 parking spaces in front • Zoned heating with 3 separate HVAC mechanical systems. • Wired for alarm system. • Main Hall that could seat up to 700 (theater style); Small Hall that could seat up to 163 (theater style).
Rehab Needs • Roofing, gutters and soffits • New mechanicals (at least 2 HVAC units will be replaced. Possibly all 3) • Add insulation • Replace all windows • Renovate restrooms and add additional stalls • Add additional restrooms • Update kitchen spaces • Remove platforms, add flooring and lighten main meeting space
Rehab Needs • Flooring repair • Rehab and design meeting spaces throughout • Select and prepare storage space per corporate guidelines • Ensure alarm system is properly set up for monitoring • Repair parking lot drainage issues and stripe lot. • Prominent signage • Improvements to courtyard area • Inspect garage (very low priority) • Other aesthetic improvements
Estimated Project Costs $ 650,000 Acquisition $ 3,000 Inspections $ 20,000 Estimated Closing Costs $ 28,575 Demolition $ 40,000 Electrical/Lighting $ 105,000 Electrical Rewire $ 80,000 Fire Sprinkler System $ 59,000 Wood- Restroom, Kitchen and new layout, trusses and installation $ 121,200 Roofing, Insulation, seals, etc. $ 50,000 Doors and windows $ 35,000 Plumbing $ 155,000 Mechanicals (HVAC) $ 100,000 Flooring $ 50,000 Painting $ 10,000 Ground Prep $ 25,500 Metro Compliance and Other Finishes $ 5,000 Signage $ 200,000 Contingency & Contractor $1,737,275 Total Estimated Project Costs
Additional Costs $40,000 Kitchen and Bath Casework $50,000 Audio/Visual Equipment - Main Halls $25,100 Specialties – corner guards, bath fixtures and accessories $17,500 Other finishes – acoustical ceilings, bathroom tile $50,000 Parking Lot
Sources of Funds Acquisition and Renovation Phase: • Soror Donations • Loan Proceeds • Sale of Remaining Furnishings Operating Phase: • Rentals • Bricks and Blocks and Annual Fundraisers • Possible Foundation Assessment • Program Admin Fees (from Grant writing)
Uses of Funds Acquisition and Renovation Phase: • Acquisition • Building and Site Improvements • Closing Costs and Initial Operating Reserves • Insurance • Utilities • Furnishings Operating Phase: • Security • Insurance • Utilities • Custodial and Grounds Maintenance • Maintenance and Replacement of Systems • Additional Upgrades • Replacement/Maintenance Reserves
Immediate Needs Down payment (20%) $130,000.00 Insurance $ Concepts21 Assessment $ 3,000.00 (initial payment) Concepts 21 –Metro $ 8,000.00 Compliance Closing Costs $ 20,000.00 Total $
How do we pay Annual Repayment Year 1 Mortgage (Interest Only) $49,412 All Utilities ($1,300 monthly) $15,600 Insurance $ 4,000 Security/Custodial) ($400/mo) $ 4,800 Total $73,812 Sources – Year 1 Foundation Fee (230*$150) $34,500 Current Total Rental Expenses (Charge to the chapter or programs) $15,000 Fundraising (Pink Ice/Silent Auctions) $10,000 Rentals (30*$500 – presentation purpose only) $15,000 Total $74,500
How do we pay Annual Repayment Year 2 and after) Mortgage $70,169 Utilities ($1,300 monthly) $15,600 Insurance $ 4,000 Security/Custodial) ($400/mo) $ 4,800 Total $94,569 Sources – Year 1 Foundation Fee (230*$150) $34,500 *Other Fundraising $ 8,000 **Current Total Rental Expenses $15,000 Fundraising (Pink Ice/Silent Auctions) $15,000 Rentals (45*$500 ) $22,500 Total $95,000
*Other Fundraising Ideas Annual Online Marketplace Sales Community Yard Sales (Booth Rentals) Bricks/Blocks Foundation –Building MIP Fee Individual Donations Silent Auctions
**Current Rental Costs • Storage rental $385/month • Meeting space minimum $120/month (could be $700 or more if school unavailable) • MIP $5,000 - $15,000 (higher amount included snacks & banquet food) • Little Miss AKA rental $2000 budgeted • All other space rental for Eta Omega sponsored events/programs (Springhurst, Hurstbourne, other community rooms)
Comparable Rentals • Shively Community Center - $850.00 • U of L Alumni Center - $200 (plus membership fee) • Subdivision Clubhouses - $300 and up • Hotels – waived if food minimums are met • Manhattan On Broadway - $995 The main hall is larger than any of the sites mentioned above.
How do we pay Annual Repayment Year 1 Mortgage (Interest Only) $61,765 Utilities ($1,300 monthly) $15,600 Insurance $ 4,000 Security/Custodial) ($400/mo) $ 4,800 Total $86,165 Sources – Year 1 Foundation Fee ($150*230) $34,500 Current Total Rental Expenses $15,000 Other Fundraising $12,000 Fundraising (Pink Ice/Silent Auctions) $10,000 Rentals (30*$500) $15,000 Total $86,500
How do we pay Annual Repayment Year 2 and after) Mortgage $ 87,711 Utilities ($1,300 monthly) $ 15,600 Insurance $ 4,000 Security/Custodial) ($400/mo) $ 4,800 Total $112,111 Sources – Year 1 Foundation Fee (230 *$175) $ 40,250 *Other Fundraising $ 15,000 Current Total Rental Expenses $ 15,000 Fundraising (Pink Ice/Silent Auctions) $ 15,000 Rentals(60*$500) $ 30,000 Total $115,250
Loan and Monthly Payment (Down Payment only) • Loan Amount $1,469,920 • Monthly Payment $10,744 • Interest Rate 6.25 • Loan Term 240 Months • $10,744.06 Per Month • Interest $1,108,654.36 • Total of 240 Loan Payments $2,578,574.36 Loan would require guarantee from the membership
Membership Matters! Estimates used a membership number of 230. The MORE members we have, the LOWER the annual Foundation Fee!
Chapter Fee Structures Indianapolis, IN – Dues -$385. Additional $150 for Foundation. No Building Knoxville, TN – Dues -$295.00. No building or Foundation Fee. Dallas, TX – Dues -$240. Additional $150 Foundation Fee. No Building Forest Springs OH – Dues - $315. No Foundation Fee (Foundation is new). No Building Baltimore, MD – Dues - $295.00. No Foundation Fee. No Building Frisco, TX – Dues - $385.00. No Foundation or Building Fee. Baton, LA – Dues - $585.00. Foundation/Building Fee Included. Plaquemine, LA – Dues $500. Additional $200 Building Fee.
How can we purchase OUR Maude Brown Porter Center of Excellence Center? • Purchase Price • $650,000 ******************* • Renovation Cost (estimate) • $800,000 - $1M ******************* • Down Payment by 3/28/2019 • $130,000 • 217 Sorors donate $3,000 =$650,000 ********************** • Finance Renovation • Metro Bank • Approx. Monthly $5,847 - $7,309 ********************** • 43 Sorors donate $3,000 =$130,000
Down Payment Examples: • 43 Sorors Donate $3,000 = $130,000 • 87 Sorors Donate $1,500 = $130,000 • 200 Sorors Donate $650 = $130,000 How can you make your donation?: • Cash/Check • Finance (Metro Bank 3yr. Personal Loan) • PayPal (Will be available soon…)
Remember All Donations/Gifts to The HBP Foundation Are Tax-Deductible!
Building Acquisition Plan • If the property is purchased, less the $130,000 down payment, balanced owed would be $520,000. If 200 Sorors pay $2600 each, we would own the property! • Also, any amount paid toward principal would reduce our monthly obligations
Building Acquisition and Renovation Giving Levels Diamond Level $10,000+ Platinum Level $5,000-$9,999 Gold Level $3,000-$4,999 Pearl Level $1,500-$2,999 Silver Level $500-$1,499
Fundraising & Recognition • Trailblazers (Closed) • Original Building Campaign • 26 Sorors donated seed money • 1922 Campaign (Ongoing) • Began 2016 to kick-off our campaign • As of today, 83 Soror: $143,000 pledged/ received $72,000 • Building Acquisition & Renovation Campaign (New) • Beginning Jan. 2019 • Giving tiers • Bricks and Blocks (Ongoing) • $3,000 collected to date • Non-Member Donations (Ongoing) • $500 collected to date • Fundraising (Ongoing) • $1,120 collected to date
Considerations Will the building fulfill the goals and needs of the chapter? Is the property properly zoned? Do we have access to capital to complete and maintain the project? Will the property help us to grow? Do we have a team of experts to bring the project to fruition? Is the property compliant with ADA? Does the Foundation/Chapter have a Business Plan? What is the post-occupancy management and maintenance plan?
Why THIS Property? • Offers extensive opportunity for growth, visibility, program implementation, and rental potential. • Total project costs will be 1/3 of the cost of the Dixie Highway site!
Why Own? • Permanent site for greater community visibility • Consolidate chapter and Foundation activities • STOP paying RENT for events and storage. Those funds will be used to pay our mortgage • STOP having to depend on someone else’s calendar in order to implement our programs
Our History In 1908, nine juniors and seniors who constituted the initial core group of founding members and seven sophomores who were extended an invitation for membership without initiation comprised what are acknowledged as Alpha Kappa Alpha’s original 16 founders. Led by Ethel Hedgeman (Lyle), the nine Howard University students who came together to form Alpha Kappa Alpha Sorority were the scholastic leadersof their classes.
Our History The Alpha Kappa Alpha Sorority founders were among the fewer than 1,000 Negroes enrolled in higher education institutions in 1908 and the 25 women who received Bachelor of Arts degrees from Howard University between 1908 and 1911. In many cases, they were just one generation removed from slavery.
Our History They envisioned a group of women who would be “Supreme in Service to ALL Mankind.” Eta Omega and HBP have kept the Legacy! Backpacks Toiletries Little Dresses HBCU Support Scholarship Support Little Miss AKA LEAF ASCEND and #CAP House of Hope of Kentucky Feeding the Homeless Soles for Souls Salute to Women
Maude E. Brown Porter, 7th Supreme Basileus, 1stBasileus – Eta Omega “Let service to humanity be the keynote to your activities….and let the service rendered be unselfish, sympathetic, industrious, and honorable.”
Call to Action Recommendation: On January 12 2019, the Hortense B. Perry Foundation voted to proceed with an offer on the complex located at 3107 S. Crums Lane, Louisville KY. The HBP Foundation sisterly requests Eta Omega’s financial support to move forward with this purchase to develop the Maude Brown Porter Center for Excellence, with the closing on or about March 28, 2019 . Rationale: The site of this existing structure is 1/3 of the cost of Phase 1 of the projected costs for Dixie Highway. Additionally, the site will provide permanent site for implementation of programs and activities like MIP, Little Miss AKA, chapter meetings and storage space for our documents and materials. The current offer to purchase includes exit stipulations relating to property inspection, financing and overall suitability for our needs.