Voting Members of St. John's Lutheran Church,
The St. John's Congregation Council has called a Special Congregational Meeting for Sunday, April 21, 2024, 1:00 p.m. in the sanctuary and via zoom. The purpose of this meeting is to consider the resolution put forth by the Congregation Council of St. John’s Lutheran Church regarding the purchase of the multi-unit dwelling and parcel at 601 10th Street in the City of Sacramento, CA. To learn more, please see below. Please plan to attend.
In Christ,
Frank Espegren, Senior Pastor
Join the Congregational Meeting Here
Meeting ID: 849 5322 7879
Passcode: 882155
Resolution
regarding the purchase of the
multi-unit dwelling and parcel at
601 10th Street in the City of Sacramento, California
Whereas, a lack of affordable housing has reached crisis levels in California in general, and in Sacramento specifically, and;
Whereas, the Congregation Council of St. John’s Lutheran Church (Council) has become aware of an opportunity to purchase a multi-unit dwelling at 601 10th Street, Sacramento, California (601 10th Street), which currently houses 13 tenants at affordable rents, and;
Whereas, after study and discernment of dedicated lay and rostered leaders in the Non-Profit Feasibility Committee, Resources Strategy Committee, Finance Committee, and Executive Committee, the Council has concluded that the purchase of 601 10th Street, and its continued availability of affordable housing, aligns with St. John’s Mission, Vision, and Values, and;
Whereas, after study and discernment, the Council believes that it is appropriate to use funds from the sale of First English Lutheran Church in furtherance of this purchase, as they have been held by St. John's for a good work in our community, and;
Whereas, in its duty to shepherd and protect the corporate body of St. John’s, the Council believes that the creation of a separate legal entity to hold and maintain this property will allow St. John’s to limit its legal and financial liability, while allowing for the use of the property in furtherance of its Mission, Vision, and Values, therefore be it;
Resolved, that the Congregation authorizes the Council and its delegates to negotiate on its behalf for the purchase of 601 10th Street. Specifically, the Congregation authorizes an offer not to exceed $1,425,000, and be it further;
Resolved, that the Congregation authorizes the Council to expend $325,000 from the proceeds of the sale of First English Lutheran Church for this purpose, and be it further;
Resolved, that the Congregation authorizes the Council to form a legal entity to limit the legal and financial liability of St. John’s Lutheran Church under the laws of the State of California, for the purpose of holding real and personal property for beneficial purposes in furtherance of the Mission, Vision, and Values of St. John’s Lutheran Church.
C5.03.G “The Congregation is authorized to acquire real and personal property by gift, devise, purchase, or other lawful means…”
There is a property for sale at 601 10th Street with 13 single residence occupancy units. Since listing, multiple commercial developers have submitted offers that have been rejected by the owners. The building is in good condition and well cared for with a basement that could be finished, expanding the number of housing units or creating a designated community space for residents. The owners are very interested in keeping the property as is and continue to house 13 tenants, rather than have it be developed into 4-5 high-end units.
The purchase of this property aligns closely with nearly every St. John’s value.
This fits well with our values of Justice-Making and Constancy in that it would prevent the displacement of current residents as well as keep affordable housing stock in the city. Additionally, this aligns with our history of taking risks when we see a need, as we did decades ago with what became Saint John’s Program for Real Change. Keeping people safely housed so they can live where they work or where their lives are centered because of access to resources is part of healing and wholeness. This also has the potential to be more targeted in the future toward those who are without housing options. We might choose to work with partners like Lutheran Social Services or others that place people in transitional housing to get them ready for a more permanent place. Humility comes in when we remember we need not do this alone; we must seek partners and others who do this work and can help us be most faithful and successful.
The proposed offer is an offer of $1,425,000, with a down payment of $275,000. As the St. John’s Council has held the proceeds from the sale of First English Lutheran Church for good work in our community, the cash for this downpayment as well as for the appraisal, inspections, insurance and closing costs will be taken from these funds, in an amount not to exceed $325,000. This comprises just over half of the total First English funds available. The remaining $1,150,000 will be funded via a 3-year ARM mortgage loan with Mission Investment Fund at an initial interest rate of 6.5%.
The Executive Committee of the St. John’s Congregation Council will host two information sessions on Sunday, April 14 at 8:00 a.m. and 12:30 p.m. in Oehler Hall. The 12:30 p.m. session will be available both in-person and via zoom through the link below.
Join the Information Session Here
Meeting ID: 893 8888 2205
Passcode: 845639
St. John's is a vibrant, urban church centered in enthusiastic and inspirational worship, grace-filled service and rich opportunities for spiritual growth.
St. John's is a Reconciling in Christ Church of the Sierra Pacific Synod of the Evangelical Lutheran Church in America (ELCA).
Sunday Worship
9:00am In-Person & Livestream | 11:30am In-Person
1701 L Street, Sacramento, CA 95811
916.444.0874 | contact@stjohnslc.org
Office Hours: Monday - Thursday
9:00am - 5:00pm