Church assumes
lead role in
campus development
approval

By Ronald Kelly

After three years of development planning, Legacy Partners decided on April 29 they could not renew their contract to purchase the Ambassador campus for residential redevelopment.

The contract had expired at the end of March but the parties had been talking in the hope that a mutually acceptable extension agreement could be reached. Their failure to renew effectively places the sale of the campus back into the hands of Worldwide Church of God officials, who began to establish staff and procedures to complete the development and sale in a timely manner.

The church entered into a purchase and sale agreement with Legacy Partners in April 1999. At that time, Legacy optimistically projected escrow would close in about 12 months. However, because the complexity and size of the proposed project as one of the largest development plans in Southern California, and perhaps the largest in the history of Pasadena, more time than even they as professional developers imagined was needed to develop the project and proceed through city planning, entitlement and development approval processes.

The first major hurdle was to produce an environmental impact report (EIR). The EIR lays out the potential impact of the development on the community. Such things as traffic, cultural resources, population, air quality, noise, impact on schools, water and city services are included in the EIR.

Again, because of the complexity of the project, Legacy Partners and city planners did not complete work on the EIR and release it for public comment until December 2000—already many months behind their original time line.

After the EIR was published, the community was allowed time to read and comment on the potential impact the development would have on the community. Hundreds of questions were then submitted by the public. Each had to be evaluated and addressed. This process took most of 2001.

At various junctures throughout this time, Legacy Partners requested and received contract extensions from the church. The church negotiated these extensions with the advice of experienced real estate counsel and on prudent business terms. However, it seemed each time an extension deadline approached, more complexities developed. City staff, planners and commissioners conducted a variety of meetings and hearings designed to gather input and information from the developer, the church and the community.

On March 4, the Pasadena City Council conducted a major public meeting. Several hundred citizens attended the meeting that had to be moved to a hotel conference room because city chambers were too small to contain the crowd. For almost four hours, council members heard from more than 100 interested parties. City staff rehearsed the project displaying charts and diagrams.

With time allotted to two minutes each, many then spoke in favor of the project, while some others, especially residents of surrounding neighborhoods, expressed objections to the size, density and traffic problems they felt would result from such a large development.

In the meantime, as city decisions were delayed, the church has continued to suffer a considerable financial deficit for more than three years. In order to maintain normal operating expenses for the denomination, the church sold various surplus assets such as equipment, furnishings, fine art, the Ambassador University campus in East Texas, and more recently the Summer Educational Program camp in Orr, Minnesota.

The church has been counting on completion of the campus sale in order to fund the church’s existing discretionary assistance program. That program is the fund for elderly, retired, loyal employees. In addition to discretionary assistance, the church has been maintaining the campus in a way to respect the neighborhood and keep it properly prepared for the development. These two items alone require about $675,000 per month above regular church income.

During most of April, Legacy Partners and the church discussed a variety of contract extension options. But in the end, Legacy’s final request was to renew extensions through the remainder of this calendar year and for up to one full year thereafter. In addition, they requested an unacceptable, and in the church’s opinion, unjustified, reduction in the purchase price. Because the church could not prudently accept these requirements, Legacy did not renew its contract.

Church officials, in an emergency board meeting, authorized Bernie Schnippert, director of Finance & Planning, to form a team that would do everything possible to hasten the sale of the property. The decision was to continue to prosecute the various elements of the existing proposal on file with the city. The church determined in advance that it would be both legally and practically appropriate to do so. We will work with city officials and neighborhood associations to continue development plans.

We wish to stress that the decision to handle the development ourselves was made after careful consideration and input from outside legal counsel. This independent, professional judgment concurred that the decision was prudent and in the best interests of the church. Furthermore, outside advisers told the board that the expertise available to the church, both from within and outside the church, was of high caliber and not only justified the decision to move forward independently, but made it the preferable alternative under the circumstances.

The church believes it can, and therefore will, essentially slip into Legacy’s shoes in the approval process. The church will retain various experts in the appropriate disciplines to ensure a plan and project of the highest professional character. The only difference is that the church will actually be in a superior position with the parties because no third party will be between the seller and the other stakeholders.

The campus consists of some 138 separate parcels and buildings that were purchased or constructed between 1947 and 1974. The historic buildings have been complemented by modern buildings, spacious lawns, flowing steams and the crown jewel, Ambassador Auditorium. How or whether the sale of parcels would affect ability to preserve historic buildings and the Ambassador Auditorium is yet to be determined.

The church wants to assure its dedicated membership that it will do all it possibly can to effect an efficient and timely sale of the property. Should the development plan prove impractical, various parcels of the campus could begin to be sold before the turn of the year and others throughout the coming year(s), although the church will work with the city to ensure such parcel sale in no way impairs the filed plan now moving forward in the approval process.

Church officials appreciate the work Legacy Partners has done in its efforts to complete the campus sale. Sadly, time was the enemy of both the developer and the church and neither party was able to satisfactorily continue the extensions that were necessary for Legacy to complete its plans.

As always we solicit your heart-felt prayers regarding the campus sale. It has been a long and trying five years since the church first determined to place the campus for sale. Since entering the sales contract with Legacy, the past three years have been a roller coaster ride of emotions, as the sale date seemed to be approaching, only to disappear in lengthy city processes and developer contract extensions. But we remain encouraged and upbeat about the ultimate and successful completion of the sale.

Words alone cannot express our appreciation for all of you faithful members who have stood with us during these years of transition. The joyful transformation of our church far exceeds our concerns about time and circumstances. We know our sovereign God will see us through these and all of our other anxieties.

As Pastor General Joseph Tkach so often says: "Remember, prayer is the battleground where we fight the good fight. When more of us prepare individually, the stronger we move together collectively."

Copyright © Worldwide Church of God, 2002