Holy Rosary Parish “The Next 100 Years” Campaign
Dear Parishioner:
We have had several communications over the last few months regarding the need for our Parish to complete
the payment on the renovation and expansion of our Church. In May we held a Parish Town Meeting, and a
few weeks ago we had an update at the end of our Masses. I would like to now provide you some additional
information in the form of Frequently Asked Questions (FAQ’s) with their accompanying answers. We will
continue to regularly update and distribute these FAQ’s to help answer your questions and concerns.
As I have previously stated, this is a major event for us with great urgency. I remain absolutely convinced that
we have the talent, faith, commitment and ability to meet this challenge as we have before and will into the
future.
Sincerely in Christ,
Father Leo
Holy Rosary Parish “Burn the Mortgage” Campaign Frequently Asked Questions (FAQ’s) – July 20, 2014
Why does Holy Rosary now face this challenge of paying off the remaining renovation/expansion costs?
We are now facing decisions on our way forward with our remaining debt because:
•
We have always owed this money for $6M in renovations because we only paid $4.4M from the collections
of our “The Next 100 Yearss of our
•
The remaining amount due the construction companies of $1.6 million was financed via a loan through the
Diocese.
•
Holy Rosary looked to the Diocese for this loan because Holy Rosary did not have the necessary assets
required as collateral for a conventional loan. The Diocese holds the deeds to our Church and Rectory.
•
Due to the Diocese entering bankruptcy, this loan with the Diocese is now ours alone to manage.
What is the amount and terms with the Diocese on this loan?
Our outstanding balance on the loan is $1.89 million in principal and interest. The loan has an interest rate of
6.5%. There are no other debts the Parish has with the Diocese.
Why can’t we just go get another loan ourselves?
The same constraints that existed in 2011 when we obtained the loan through the Diocese exist today.
Namely, Holy Rosary does not have sufficient assets, nor a large enough income stream to qualify for a
conventional loan. In addition, we must remember the financial burden that any loan places on our Parish.
Paying off the remaining debt for our renovation as quickly as practical may be the best way forward…
Why can’t we sell off some of the Church’s assets to pay off the loan?
In addition to Holy Rosary Church and Rectory, the Diocese also owns the Bozeman Catholic
Community Center and two condominiums, one of which Fr. Leo resides in. This is the common
situation with Parishes—that the Diocese owns the Parish properties. Selling these properties is not
seen as an ideal solution due to the current and future benefits they provide our Parish community.
We are trying to preclude selling the BCCC by having a capital campaign. The BCCC may, as an
alternative, be sold if this new capital campaign is unsuccessful.
So, completing the original “The Next 100 Years” through another campaign is being considered—Why?
Holy Rosary’s Debt Committee has been wrestling with options since we were informed of the need to assume
our loan from the Diocese. It has always been our debt, and our responsibility to pay it back. After careful
consideration, the committee concluded that:
1. It is unfortunate, but the timing of the Diocese bankruptcy forces Holy Rosary to now assume and
manage the $1.89 million remaining debt.
2. New loans, or selling Parish assets, are not good options.
3. We have a successful campaign history as a Parish! We can take control of our “financial house” and
set to gathering the funds needed to pay off our remaining debt.
So, “Burning the mortgage” on this final, remaining debt for our beautiful church provides financial
independence for the Parish…and opens the possibility for new projects in the future!
Will any of the monies donated to a “Burn the Mortgage” Campaign go to the Diocese?
No. All collected monies from the campaign will be used to retire Holy Rosary’s debt from the expansion of
our Church. Any additional funds contributed over and above this debt will be held in a reserve fund for the
expressed purpose of operating our buildings.
What are the first steps to extend the original capital campaign to complete the repayment of our debt?
•
Campaign Start Date of September 7, 2014 with a goal of completion of December 31, 2017
•
”Burn the Mortgage” will be our call to action for the Campaign, with a goal of collecting $2.0 million to
retire our remaining $1.89 million debt and any remaining interest that may accrue over this time
period.
•
If any funds are collected over and above that required to retire our debt, they will be placed in a
building reserve fund for any future repairs of our Parish buildings.
•
A Steering Committee will guide the effort based on the experience and expertise it gained from the
last campaign.
•
A Campaign Committee will lead the effort, and will be structured to provide skills, commitment, and
representation of the diverse population found in the Parish.
•
The Campaign will take a fresh look at options, as well as the distinctly different Parish community that
now exists with over 1,200 registered families.
•
An “economical” campaign will be conducted tapping into the expertise and commitment of our
existing Parish resources, and thus not needing to incur any outside fundraising costs.
Additional Background Information:
What were the details of our previous campaign?
Our Parish has experienced dramatic growth. In 2001 when Fr. Leo arrived, there were about 680 registered
families in the Parish. Mirroring the growth in Bozeman as a whole, the Parish grew to over 790 registered
families by 2007. Today, we have about 1,200 families registered!
This growth over the last decade strained the existing facilities—some of you may remember the masses
overflowing into the basement. So, Parish “Town Hall” meetings were held in 2007 to make decisions on the
path forward for Holy Rosary. It was decided to renovate and expand Holy Rosary to better serve our vibrant
and growing community. To pay for this expansion, the “Next 100 Years” Campaign was launched in 2008
(2008 being the 100th Anniversary of Holy Rosary Church). The campaign—thanks to many of you—was very
successful, and $4.4 million was collected by the end of the campaign in 2013.
Why was there a need to take a loan in addition to the capital campaign proceeds?
Construction began in 2007, and the original plans were conservative in the space and in such features as the
organ, baptistery, liturgical furniture, etc. The opportunity to improve and expand the original plans was
brought before the Parish in 2011. An expanded Gathering Space along with the previously listed
enhancements was proposed, and on May 1, 2011 the Parish voted to adopt the additional improvements (the
vote was 70% to 30% in favor). These approved enhancements, along with the typical construction delays,
brought the total costs for the Holy Rosary Church construction project to $6 million. The “Next 100 Years”
Campaign brought in $4.4 million in donations. The balance of what we owed for the $6 million
renovation/construction costs for our beautiful new church was funded via a loan through our Diocese of
Helena. Principal and interest on that loan is now approximately $1.89 million.