Other Reports, February 4, 2021

Governance Report by Chair, Mark Shapiro

The B’nai Zion Board Redesign Governance Committee gathered for the introductory session, Wednesday, February 3 and talked with Lara Dorfman of Dynamic Change Solutions.  We discussed the agenda for the committee which will meet numerous times thru May.

The committee is comprised of:

Mark Shapiro, Chairman

Scott Israel

Joel Susman

Jackie Rosenfeld

Meryl Stark

Howard Kaplan

Rachel Hanan

Rob Cowan

The following is the agenda set for by DCS:

  • Task Force Retreat

 1. Present governance focused SP scan findings

 2. Explore governance models

 3. Begin deliberations on potential models using SWOT* analysis model

  • Four to five meetings to complete redesigned governance structure
  • Affinity focus groups facilitated by the Task Force with coaching by the consultants
  • Prepare with Chair presentation to the Board and congregational Town Hall Meeting

The Retreat is scheduled for Sunday morning, Feb 7th from 9:30-1:30

*SWOT = strengths, weaknesses, opportunities, threats

Mark Shapiro


Education Report from Tal Cohen

Short-Term Updates:
 BSI and Machanooga are back from winter break.
 We are also restarting the BSI Pre-K class with Mr. Chaim at a time more convenient for
all parents.  Mrs. Randi’s class will continue as planned.
 Our Purim celebration will be held on Thursday, 2/25 at 6pm.
 Machanooga BZ Chair is Traci Sloan.

Long-Term Updates:
 At this point we have exhausted our efforts toward a long-term community-wide Sunday
school due to other congregations’ priorities.
 We will continue to plan for our future education plan and director role as it aligns with
onboarding a full-time permanent Rabbi.
 We will continue educational community discussions with Mizpah to better Machanooga’s long-term plan.
Tal Cohen


B’nai Zion Property Sale Opportunity

Situation

January 28, 2021, B’nai Zion received an offer from Ethan Collier, a local residential builder, to purchase the entire BZ property (land only) for $450,000.

Action Needed

Proposed Motion:  To accept the offer to purchase the B’nai Zion property for a minimum sales price of $450,000, contingent upon desired rezoning arranged by the purchaser.

Facts About the Property

·  The most recent certified appraisal is dated 9/20/2018 with land valued at $260,000

·  The Hamilton County tax appraised land value is $192,000

·  The property includes 4.76 acres

Anticipated Questions from the Congregation

  1. Is it possible for us to build on our current property?  Yes
  • How much would it cost to build a 10,000 sf multi-use building on our current property?  Between $2.5-$3.0 million
  • Is it feasible to raise funds to build new 10,000 sf building?  According to our most recent conversations with many of our congregants, we do not see this being feasible now or in the future.
  • Why sell now if we do not “need” to?  Because the local real estate residential market is at a premium, we have a viable offer in-hand, and we do not have the financial means to rebuild.
  • If we do not sell now, will land value increase, stay the same or fall?  That’s a great question,  but no one has a crystal ball to predict the future.
  • How many other offers do we have?  Just one from Ethan Collier.  Previously we did ask other local builders, but they passed on this opportunity.  If we want to ask for additional bids, we will occur additional fees which may reduce our net fees.
  • Why not professionally market the property to attempt to sell at a higher value?  The current offer will expire should we move forward to list and professionally market the property.  The cost to do this is 10% of the sales price, so a purchase price of $500,000 would be essentially the same as the current buyer’s offer because his offer does not include these expenses.  It is our opinion that listing the property would be speculative and net the congregation little or no additional proceeds.
  • How much will our building demolition cost?  Final bids are not in hand, but earlier budget indicated approximately $300,000. (Net proceeds on $450,000 would be $150,000.)
  • What will BZ do with sales proceeds? Reinvest with the BZ endowment which is currently at approximately $800,000 (with restricted use).

(BZ Property Sale Opportunity 20210204)