Project Type: Debt Restructuring
Client: Church of St. Henry - Monticello, MN
Expansion Got Ahead of Us and We Needed Help
SITUATION: This 1,500-family parish built a 53,000 square foot church. Along the way the project got ahead of them, they overbuilt and found themselves with insufficient funding to pay for the project. The parish then started to draw on operating funds in an attempt to service the debt.
CFC ROLE: CFC met with the Pastor and the Parish Business Administrator, conducted a preliminary assessment and designed a multi-phase plan to reckon with the situation. The first steps were to present a clear story to all parishioners and maintain an open and abundant ongoing dialogue. For the near-term, CFC loaned the parish the funds necessary to retire the final construction bills and the parish was able to pay off that loan in less than two years. This action was followed by a careful reduction of parish operating expenses and creation of an operating budget that returned the parish to positive cash flow. A new loan was negotiated with terms and a rate that enabled the parish to commence repayment and eliminate the Archdiocese as loan guarantor. Open communications with parishioners continued and relationships grew stronger. The parish is growing, collections have improved and another capital campaign has been launched. The parish now operates on a sound financial foundation with a solid plan for the future.
CLIENT REFLECTION: "We were facing a serious financial crisis when CFC entered the picture. They took all of the professional steps in a very orderly fashion that gave us both a sense of comfort and showed us a path to a much better financial condition. We took their advice. They helped us with all of the financial assessment and planning and even helped us communicate with parishioners. In fact, CFC did the first parish presentations about our condition and our options. The presentations were well-received and the ongoing communications were very healing. CFC worked with the banks and with our suppliers. In short, they negotiated with several financial institutions, resulting in placing a loan with a very competitive rate and very favorable terms. We were ecstatic."
"We worked very closely with CFC. Their complete involvement, careful study and sound recommendations and guidance have moved us from a dire condition to one that, thankfully, is very solid and faces a very bright future."
"I don't think our doors would be open today without Catholic Finance Corporation."
- Fr. Tim Rudolphi, Pastor
"Tremendous help. We were really struggling."
- Kathy Metzger, Parish Business Administrator