Answer: The price of the land is just slightly less than $1.5 million.
Question: Why are we taking out a loan?
Answer: Since we have put most of our reserve cash into funding the “13” we are not in a financial position to make the purchase without a loan. It might be helpful to realize that we took loans out for our original Richland construction, for the office/fellowship hall, and the Prosser building.
Question: What is the interest rate for the loan and when will it be paid off?
Answer: We currently getting quotes for a loan and the rate will probably be about 4%. It would be a 10-year loan but historically we have never carried a loan to its term but have always paid it off early.
Question: Who will be paying for the loan?
Answer: The payments for the land will come out of the general fund budget. All campuses contribute to that fund.
Question: Is 7 acres enough land?
Answer: We believe that the 7 acres is sufficient. As we considered this we digitally placed: 1. The current Prosser building, with a potential addition, plus adequate parking and we still had room for sports fields; 2. The current Richland facilities plus its paved parking, all of which fit within 5 acres.
Question: Why the current timing of the purchase? Is there some urgency?
Answer: We have looked for land a number of times since we started the Pasco campus. When we came to agreement with the current owners and developed a contract, we were placed on a timeline. Meeting that timeline has created timing pressure.
Question: Were other locations considered?
Answer: Over the years we have looked at other potential parcels. Land north of the freeway on or near Road 68 was significantly more expensive. Other plots were not nearly as optimal for our purposes.
Question: After purchasing the land, how soon will be build?
Answer: A time to start building has not been determined or guaranteed. There are several areas we are focusing on in W Pasco which will help us determine if and when we should consider building. Purchasing this parcel will provide a place if we proceed to build.
Question: How much does the current West Pasco lease cost?
Answer: We just renegotiated the lease to $15,000 a month. That lease has a 60-day notification of termination of the lease.
Question: Is this land a good buy?
Answer: We have received counsel from people, who better understand land values, who tell us that we’ve negotiated a good price for the land.