[Info] Saint John's and Property Purchase

[Albert Scariato]

Dear Parishioners,
 
Almost two weeks ago word was received that the property adjacent to Saint John’s Church at 1313 Potomac Street was for sale.  The house on that property is a three-story townhouse that is zoned for residential use as a five-unit apartment building.  It is rent-controlled and brings in annual net revenue of $38,000.  The property which is owned by heirs of the Lucien Battle estate was listed for $1.4M.  
 
It was incumbent upon the Vestry to inquire about the feasibility of acquiring property adjacent to our physical plant.  Two open houses were scheduled during the week of 13 July.  Members of the Vestry and the parish attended both of these open houses.  The house was likely built in the early 19th century and had a new façade, rear extension, and other modifications during the late Victorian era.  It was in great need of tending.  
 
We learned at the open houses that bids were to be opened and accepted by the sellers on Thursday, 24 July.  The Vestry held an informal meeting of Sunday, 20 July.  Acknowledging the time constraints that we were under, it was felt that while further exploration was necessary, we should try to ensure that we would have the opportunity to proceed with a purchase after answers to many valid questions were answered.  Most of the concerns were related to three areas: issues of tenants’ rights, ability to obtain zoning variances, and parochial financial considerations.  Also, the church would need to obtain permission from the Diocese of Washington to purchase this property. Furthermore, any instance in which diocesan approval is required necessitates approval by a Special Meeting of the parish.  Such a meeting requires a twenty-one day notice to the parish. 
 
The Rector and the Wardens, after sending an e-mail of their intentions to the Vestry, elected to place an offer on the property with the following contingencies:

This offer was contingent on a home inspection which would occur within fourteen days after the expiration of a forty-five day waiting period in which the tenants had the right to make their own offer.  (This would have then enabled us to have a fifty-nine day period in which to address our concerns.)
The offer was contingent on approval by The Episcopal Diocese of Washington and the people of Saint John’s Church—Georgetown Parish.
Since we knew that at least two other offers were to be made “at or near full price” for the property in “as is condition” our offer was for $1.4M with an escalation clause allowing us to go as high as $1.51M.  Thanks to the quick, intensive work of one of our parishioners and members of his family, we were able to obtain a very favorable financing package which would have resulted in putting no cash up front and having the full amount covered by a twenty-thirty year note at a rate of 6% (very good for a commercial loan).
 
Yesterday the sellers’ agent presented four bids to his clients.  He asserted that they were all “strong bids.”  The sellers were impressed by all offers.  After numerous discussions with the sellers’ realtor on 24 July, the final difficulty that the sellers had with Saint John’s offer was the second contingency.  There was no compromise, however, to be made by us on this issue.  The integrity of the process both on a diocesan and a parochial level dictated that this particular contingency was required by both diocesan canons and parish bylaws.  The sellers’ agent indicated that without the removal of this contingency the sellers’ would accept one of the other offers.  He did state, however, that in sales such as these, another opportunity might present itself.
 
Please know that so many people did so very much to try to make this acquisition something for the whole parish to consider. A parishioner/real estate agent worked tirelessly to help us.  One longtime parishioner, as stated above, went above and beyond the call of duty to make favorable financial arrangements quickly to enable us to make a strong bid.  Another parishioner did much research on the property and its ownership (it should be mentioned here that this property was available for purchase by Saint John’s three times in the 20th century.  To the disappointment of the parish, it never succeeded in acquiring it).  Several non-parishioners who have long supported Saint John’s had offered to put together a consortium to buy the property on behalf of the church if we could not arrange speedy financing. Your Wardens and your Vestry spent much time deliberating the advantages and disadvantages of such a purchase—especially a purchase that had to be considered in such a rapid time frame. Much prayer and great deal of effort went into this process.
 
What we can say is that we did everything possible to have this opportunity to raise this acquisition as a possibility to the wider parish.  As with everything, we have to trust that perhaps God has other plans for this parish at this time.  In the meanwhile with faith in God and in gratitude for all those who do much in God’s Name at Saint John’s we go on with a positive attitude and cheerful and generous heart into the future.
 
Blessings,
 
Albert+
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