Headquarters
Property Sale Update

Pasadena project team formed

By Dale Trow

The church announced on April 29 that Legacy Partners, which had been under contract with the church to purchase the Pasadena campus and develop it into a master planned residential community, allowed its contract to expire and withdrew from any participation in the project.

Legacy Partners entered into escrow with the church in early 1999 with the intention of developing a combination of commercial office space, retail, senior housing, a luxury hotel and residential housing on the 48-acre property. Legacy changed its plans several times in response to market conditions and community feedback.

At the time of its withdrawal, Legacy’s plan was to develop about 1,700 residential units on the east and west campus. Legacy intended to develop a relatively small portion of the property itself and sell to other developers the remainder of the property parcels.

Legacy’s role was also to obtain entitlements, coordinate the new infrastructure for the property, create home owner associations, remodel Merritt House (Ambassador Hall) into a community center for the home owners, develop common areas (several acres of green space, walkways and historical gardens) and create a plan for the preservation and reactivation of Ambassador Auditorium.

"In the end, Legacy found the twin pressures of time and financial investment just too much to make the deal work for their bottom line," according to Bernie Schnippert, director of Finance & Planning for the church.

A Pasadena project team comprised of church personnel and outside consultants has embraced the best elements of the Legacy plan and is moving forward with the steps necessary to complete the project.

The team is largely in place, with a master developer and consultant to be named soon. The master developer will function as a consultant under the direction of the church and will not purchase and resell the land, as was Legacy’s intention. The church will sell the development parcels directly to the developers once entitlements are obtained and a development agreement is completed.

Most of the the original subdevelopers who were interested in buying property parcels through Legacy, though not under contract, are in place and anxious to move forward with their building plans.

The church has filed a master application with the City of Pasadena as a precursor for the environmental impact report and development agreement.

The application requires extensive information on existing property conditions, sur- rounding land uses and proposed future uses. The new application calls for 1,942 units for the purpose of the environmental impact report, and will be reduced to an appropriate density for the property as the church works through various issues.

A City planning document called the West Gateway Specific Plan (WGSP) allows for more than the number of units proposed, but the actual number is conditioned by a number of factors including zoning criteria, property setbacks, building heights and traffic mitigation. Project density and traffic mitigation have been primary concerns of the campus neighbors, and the church is taking responsible steps to address these concerns.

Dr. Schnippert said: "We expect the interested parties will move closer together as the plan moves along, not further apart. At least, this is our goal."

The application was filed with the assistance of legal counsel from Troy & Gould, a highly regarded firm that has advised the church for more than four years on property and related matters.

To facilitate communication with resident associations, city leaders and the community at large, the church has contracted with Fleishman Hillard, a leading public affairs communications firm in Los Angeles County.

Fleishman Hillard will assist with community relations, correspondence, advertising and other project-related duties.

Dr. Schnippert commented: "The plan for the property is a good one. An important key to the success of the project is early and comprehensive communication with the community. Fleishman Hillard has a proven track record in handling projects of this magnitude, and they’ve already made great contributions."

Tim Lowe, senior financial analyst and president of Waronzof Associates, is assembling a comprehensive financial model that will blend current church finances, Pasadena project team expenses and potential land value into a tool that will allow church executives to monitor project progress quantitatively.

The model will allow for adjustments as conditions change. For example, every change in proposed density, building type or number of affordable units sends ripples through the model that can be understood in financial terms. Such information is critical in order for the church’s board of directors to make informed decisions.

Plans are under way to relocate the church employees who make up the Pasadena project team from the Hall of Administration to Merritt House, where Legacy had guest offices during its tenure. Pastor General Joseph Tkach and Dr. Schnippert both felt it was wise to move the sales project team out of the Hall of Administration so they would not be a distraction to the main work of the church.

Dr. Schnippert commented that "although the sale is important, it is a support function to the mission of the church and not the church’s main daily business." The move will bring the project team together in adjoining offices, and provide dedicated conference space for the many meetings that will occur with builders, city officials and other community leaders.

The move will also put the team next to Terrace Villa (former Ambassador College dormitory), which will become office space for the consultants who are working with the church.

Dale Trow is facilities director for the church.

Copyright © Worldwide Church of God, 2002