Thoughts From The Chairman
Chairman, The Seattle Medium Newspaper Group
By Chris H. Bennett
Chairman, Seattle Medium
Mt. Zion Baptist Church (MZBC) Trustees continue their ill-conceived promotion to try to sell off Church property in spite of the recent overwhelming membership’s vote not to sell its property known as the Annex — a 12,680 square foot, three-story office building located on the corner of Rev. Dr. S. B. McKinney (previously 19th) Avenue and Pine streets. On February 28, 2016, the Church voted overwhelmingly not to sell the Annex, which is currently rented to Peace for the Streets by Kids from the Streets (PSKS). Susan Fox, Executive Director, of PSKS reportedly made an offer of $3 million to buy the property earlier this year with a state supported taxpayer fund included in the State’s supplemental budget bill sponsored by the only Black Washington State Representative, Eric Pettigrew, (D-37th) and supported by Washington Speaker of House, Rep. Frank Chopp (D – 43rd).
The Trustees recommended that the Church accept that offer without any appraisal and without consideration of the possibility of other offers. By the overwhelming majority vote, members stated they were not in favor of selling the Church’s property at any price. Some spiritual bound praying members said they prayed and God said, “Do not sell” the property. A few said, I don’t mind selling but we should not give our property away. “Leaving millions of dollars on the table with a Trustee misleading “restricted appraisal”, one member stated is, “Giving the church’s highly valued resource, it’s property, away”.
This is the third attempt by the Trustees and the Senior Pastor to get the Church to sell the Annex. A second meeting was held on April 29, 2016 but was inappropriately adjourned abruptly by Sr. Pastor Aaron Williams, who moderated the meeting. No explanation was given for the adjournment but it came after a motion was properly made and seconded to table the motion to rescind the February 28, 2016 congregational vote not to sell the Annex. It was after this highly contested meeting that Dr. Lora-Ellen McKinney, daughter of Pastor Emeritus, Rev. Dr. Samuel Berry McKinney, alleges that she was assaulted by Sr. Pastor Aaron Williams, when she approached him after the meeting about his mistreatment of her when she tried to speak at the meeting.
Some find it disturbing that the Trustees called these meetings on the evening of the same day there is a court hearing on a petition filed by Dr. Lora-Ellen McKinney against Rev. Aaron Williams which involves her alleged assault charges against him. Some are asking if this is an attempt to limit the attendance at one or both events. The court date is this Friday, June 17, 2016 at 1:30 pm at the King County Courthouse and the Church meeting is scheduled for that evening, June 17, 2016 with the Advisory Council meeting beginning at 6:00 pm.
Another troubling matter is the alleged violence taking place at the Annex occupied by PSKS. Just this past week, according to witnesses, the police were called, again, to a disturbance at the Annex when there was an apparent altercation between two participants in the St. Joseph Catholic Church sponsored PSKS program. Sources say these altercations are frequent and very disturbing and distressful to the neighborhood. These frequent altercations could cause eviction of the PSKS from the Annex. Could this be a reason the Trustees and Sr. Pastor are so anxious to get rid of the Annex? Some are asking if it is fair that the Church should impose this public nuisance ‘problem’ on the neighborhood by selling it to PSKS. Others question if another dope shop dealer will purchase the property if it is placed on the open market.
Some members who are emphatic about not selling the Annex insist Mount Zion should develop this property for its own use.
All and all many members and community members question the motives of the Trustees and Sr. Pastor in their quest to sell the Annex. For the meeting on Friday, June 17, 2016, the Trustees are recommending sale of the Annex for no less than $3,110,000 based on a limited or restricted appraisal, which seems to be the value of the land only and not the combination of land and building.
A restricted or limited appraisal is sometimes known as a ‘desktop’ appraisal and is not normally used by lenders who want more detailed information than the bare bones information of the restricted appraisal. Now we understand the reason the trustees did not want this “restricted appraisal” to leave the church office and could not be copied because there are limitations on this kind of appraisal. It is really an overpaid nothing, restricted appraisal. It is also the least expensive appraisal usually costing about $200 in some California markets but the Mount Zion Trustees allegedly paid $2500.00 for this one.
According to King County Tax records, the square footage of the land only, is 13,964 square feet. To compute the Appraised Value, the Appraiser used a price of $222 per square foot, the going rate per square foot for land in the area, Let’s do the math: Multiply $222 times 13,964 square feet. The total is $3,100,008, which can be rounded to $3,110,000 the value determined by the Restricted Appraisal using the value of the land only.
In contrast, the square footage of the Annex Office Building or structure totals 12,680 square feet according to King County Tax records. The lowest going rate in this area for office space is $376 per square foot. Let’s do the math again: Office building of 12,680 sq. feet times $376 equals $4,767,680. So the building alone using the lowest going rate is worth over $4.5 million dollars. Rule of thumb: take Pastor Emeritus Rev. Dr. Samuel B. McKinney’s wisdom, “Don’t give the Annex away; the building is worth at least $8-10 million.”
Trustee actions seem pretty slick, very misleading, and allegedly cooked, you bet, particularly, since the PSKS wanted, according to the Executive Director, the complete Annex Building, land, structure etc. and MZBC trustees ordered a non-binding single user restricted appraisal, restricted to the land only.
The Trustees have stated selling the Annex will make the Church debt free and the current lender, Heritage Bank, is not willing to extend the loan when a balloon payment is due in April 2017. But no lender is going to refinance without credible financials prepared by a CPA, something Mount Zion Baptist Church has not had in several years despite the heavy professional makeup of the Trustee Board which has members who are retired from the banking industry, including the church treasurer. As a matter of fact, the makeup of the Trustee Board at Mount Zion Baptist Church is not without financial knowledge of the inter-workings of financial institutions and lenders. The Trustee Board is made up of at least three former bankers; three holding doctorates that includes a former principal of several High Schools; a social program administrator; an environmental scientist; a former Seattle Police Department Interim Police Chief; a retired King County Superior Court administrator, etc. Despite this blue ribbon type of an ideal Trustee Board, many questioned their inferior handling of what was once one of the greatest spiritual institutions anywhere solvent with solid financial well being. For example, many question all of the real estate handling including the recent generous gift – Blessings – of an estate valued at $1. 5 million, which the Trustees seemingly under sold for under a million dollars under circumstances, which are under question because it has been tied up pending closing for seven months. The potential buyer recently asked for July 29th as the new closing date. Trustees allegedly under-sold this Estate, again based on elementary real estate knowledge without an appraisal.
Come on Trustees! Live up to your credentials; take off the aprons. This is not rocket science; surely all of you understand that proceeds from this ‘Estate sale’ will give the Church leverage for refinancing the Annex loan at possibly a lower interest rate, enable the Church to pay off certain critical debts, enable the Church to keep the Annex and either develop it themselves or explore other more lucrative and productive options.
Members are rightly concerned about the apparent lack of financial knowledge, ability and wisdom of the Trustees and Sr. Pastor given the many missteps in real estate transactions over the last one and a half years. One wonders if you spend a life time in the banking industry surely you must know financial requirements for lender approval of primary loans. Why is the Church not getting CPA certified finances? Is this lack of financials purposely to suppress loans options for a “sell only” decision? Perhaps it is time for the Church to appoint those skilled in this area to work on an Ad Hoc basis to get MZBC back on track before the Church is lost to greedy money grubbers by, on paper, a dream team or nightmare team brand Trustee Board that appears to be willing to swap their credentials for spaghetti backs and aprons. Members should be there this Friday evening at 6:00pm to once again vote against this appearance of a redlining “code blue” take over and sell off of Mount Zion’ properties.
