Update on Sale of Campus

Listening phase continues;
parcels to be sold

By Mathew Morgan

The church signed letters of intent to sell two parcels of land that will not be part of the main residential community planned for the Ambassador campus.

The parcel north of the Hall of Administration, currently serving as the Records Center, and the parking lot east of Imperial Schools are being sold to take advantage of the strong real estate market. We anticipate late January closings for both properties. Many thanks to the facilities staff as they prepare this property for sale.

The church conducted its third open house Dec. 17 to share a more refined plan with Pasadena residents. More than 1,500 people and 30 community groups and opinion leaders have been part of our ongoing listening phase, providing ideas and support for the future of the Ambassador campus and Ambassador Auditorium, and even envisioning themselves as homeowners in this setting. We have received a great deal of input from previous listening meetings, including two large community meetings on Oct. 30 and Nov. 19. To learn more about the entitlement process and plans for the property, please visit www.ambassadorcampus.info

We receive questions from members about the property from time to time. In an effort to keep you, as important stakeholders, informed, following are a few of the questions that we hear regularly and the corresponding answers.

Answer: Previously the church was selling the entire campus directly to Legacy Partners, a large developer. Before this deal closed, Legacy’s role was to secure entitlements (agreements with the city as to what can be built on the property by law) and pay the church for the property.

After entitlements were secure, Legacy planned to sell the entitled property to subdevelopers who would build residential buildings on the property.

The agreement with Legacy expired April 1. Church leaders had always planned for this possibility and, after careful discussion with the board of directors and expert real estate advisers, initiated a plan to work directly with the city and the public to gain the entitlements. When the property is entitled, the church will sell the property directly to developers who will build primarily residential buildings on the site.

We have had to face this question ourselves as we saw the previous buyer falter. Church leaders are aware that the entitlement process for a large campus in an urban setting like Pasadena is complicated and requires specific expertise.

Therefore, we are using experts in the fields of development, design, planning, communication, law, finance, historic preservation, community relations and strategy to advise us. Using good advice, and building on what we learned from Legacy’s successes and failures, we initiated a planning and communication process that we feel will result in approval of our plan. We are being respectful, open and responsive to the citizens of Pasadena so that we end up with a superior plan and avoid unnecessary opposition.

We also find that the church, as the owner of the campus since 1947, is more respected than an "out-of town-developer" as many in the city labeled Legacy. Those who know the church are aware that integrity and quality are part of our normal operating procedures. Church employees have developed relationships and have done business in town for the past half century.

The current church-led entitlement strategy also provides the church with much more flexibility than under the Legacy agreement. If we must change strategy quickly because of unforeseen circumstances or opposition, we can quickly move to secondary plans to best serve the needs of the church.

Under the former agreement, we had contractual obligations with the buyer that limited our control and maneuverability. The church also enjoys, under the current process, a superior psychological and legal position to directly manage its rights and responsibilities as a large property owner and religious institution in Pasadena.

In summary we feel we have the right team, the right process and sufficient flexibility to create a plan that will be embraced by decision makers and will leave behind a fine residential community of which all can be proud.

The entitlement and sale team, led by Bernie Schnippert, director of Finance & Planning, completed an extensive search and interview process ultimately selecting SheaHomes, in early July, as master developer consultant. Working with SheaHomes, the largest private homebuilder in the United States, experts in design and other necessary disciplines were assembled.

A citywide public listening phase was initiated in September to hear concerns and suggestions from city staff, neighbors, political officials, special interest groups and others concerning the development of the property.

Open houses took place Oct. 30 and Nov. 19 to allow Pasadena residents a chance to submit ideas. A preferred design was shared at a Dec. 17 meeting and will be refined again before being presented to the city in January. The city staff will then review the plan, make suggestions and initiate the mandated environmental and political review processes. City Council approval is the final entitlement step. As the entitlement phase nears an end, the church will begin negotiating sales agreements with subdevelopers in order to realize proceeds from land sales shortly thereafter.

Our schedule, which is only an educated estimate, anticipates approval in early 2004. It is possible that plan approval could occur earlier or later depending on variables in the process that are difficult to predict.

Yes. We have planned carefully and made the necessary adjustments to see it through based on current expectations, and we have contingency plans should we need to adjust our plan based on circumstances. The Finance & Planning Department, using outside consultants to provide objective advice, meets on a regular basis with the board of directors to evaluate the entitlement and sale process in light of the church’s overall mission and financial position.

We have studied this issue carefully, and currently, the best outcome is through using the entitlement and sale path. However, should circumstances change during the process, we have retained the flexibility to adjust the plan to best serve the church’s needs.

Copyright © Worldwide Church of God, 2002