Houses of Faith Facing Foreclosure
November 15, 2010 by Admin
Filed under Church, Faith, Gospel Today Features, Leaders
“Among the largest [Black] megachurches are the Faithful Central Bible Church in Inglewood, CA, the former home of the Los Angeles Lakers, which seats 17,505; the New Birth Missionary Baptist Church Cathedral in Lithonia, GA, which seats 10,000; the FaithDome of the Crenshaw Christian Center in Los Angeles, which seats 9,780; Jericho City of Praise Church in Landover, MD, which seats 10,000; World Changers Church International, which seats 8,900; and The Potter’s House in Dallas, TX, which seats 8,000.†(Ebony, Dec, 2004)
WHAT HAPPENED ON WALL STREET IS NOW HAPPENING DOWN THE STREET…
TEN YEARS AGO, THE LOS ANGELES FORUM WAS PURCHASED BY THE FAITHFUL CENTRAL BIBLE CHURCH (AT A COST OF $22.5 MILLION). FOR A WHILE, THE CHURCH HELD SUNDAY SERVICES IN THE FORUM, BUT WITH THE EFFECTS OF THE ECONOMY OVER THE PAST FEW YEARS, THE CHURCH DECIDED TO RETURN TO ITS ORIGINAL 2100-SEAT LOCATION.
“Our goal,†said Bishop Kenneth Ulmer, pastor of FCBC and visionary for the procurement of the Forum, “was to have a positive economic impact on the community—[by] providing both entertainment and jobs. The Forum was never purchased to be turned into a church.
“Some of the events we hosted included Ringling Brothers Circus, the last Hannah Montana movie shoot, Michael Jackson “This Is It†movie shoot, Steve Harvey’s “Hoodie Awards†and Stevie Wonder’s annual “House Full of Toys†event.â€
However, as the economy and entertainment industry began to change, the economic viability of the Forum suffered negative impact. In late August of this year, the LA Times reported that the Forum was experiencing financial difficulties.
According to the article, “The Forum hasn’t been generating nearly enough revenue to cover operating costs, let alone an annual $1.2-million mortgage payment to its lender, forcing the church to dip into its own funds to avoid defaulting on the loan. This spring the church said it could no longer make payments to the company it hired to operate the arena, triggering a contentious legal brawl with its former partner — the second such dispute with a management company in a decade.â€
“We’re in a challenging situation right now,’’ Bishop Ulmer acknowledged in an interview with Gospel Today, “We’re having to reassess where we go in light of the [economic] realities of today, be- yond the hopes of yesterday. We always wanted to benefit the com- munity. We’re back to square one.â€
“With people losing jobs and even homes, entertainment took a hard hit; the expansion of “free†entertainment choices, via Inter- net and television, made live events with escalating ticket prices less of a choice.
“Another thing that’s different,†observed Bishop Ulmer, “was that in the past, in times of recession and depression, people turned back to the church. I don’t see that now. I don’t see a spike in church attendance that is necessarily fueled by the economy. I think our culture is so spiritualized that the church is now seen as less of a refuge. The culture has become more spiritual and less Godly.â€
As for the future of the Forum, Bishop Ulmer said that his considerations include:
1. Developing a different kind of marketing plan.
2. Liquidating the property and using the proceeds to do ministry.
3. Partnering with some entity that has a commercial interest and a
Ministry sensitivity.â€
“WE’RE CONSIDERING HOW WE BALANCE THE REALITIES OF THE ECONOMY WITH OUR MANDATE FOR MINISTRY.†—BISHOP KENNETH ULMER
Almost every church, every ministry are facing the same situation Bishop Ulmer described. Three of the ministries I serve are facing the real possibility of shuting down. So, the regrouping questions and considerations are foremost in our minds. We don’t want to miss God. We don’t want to wither in the face of such difficulties. We press on believing the Lord will make it clear what He wants us to do.
The complexity of these type of transactions and possible conflicts with the church’s tax exempt status, is cause for weighing their involvement in such a venture going forward. I applaud the church for having the vision and their professional demeanor throughout this experience, but I caution others from going after such projects without weighing the downside risks involved. Our faith based nonprofit is facing a similar situation brought on by the downturn in the economy in this sector and the challenges in commercial real estate management. Proceed with caution.
Hi. I want to thank Gospel Today and Bishop Ulmer for sharing this story it has definately helped me as I face some of the same issues that Bishop has talked about. With this article am I able to take courage in some ways that we are in this fight together and we intend to win. We may have to make some adjustments but we will win. God bless you Bishop and Gospel Tody I am praying for your success.
The current economy has fostered great fear instead of great faith among the members of the body of Christ. I have appealed to many covenant fellowships to come out of rental situations and share space, but they would rather struggle to save face (pride) than gather together and weather the storm.
loss of focus by these not-for-profit corporations on promoting the gospel, and the move toward a prosperity and acquisition gospel during an ignored downturn in the world economy in general, and US real estate in particular, should draw attention to the Boards of these organizations. Some grossly negligent decisions have been made by many of the organization’s suffering threat of, or actual, foreclosure, accompanied by the lack of any spiritual orientation in the property acquisitions and no risk analysis.The mortgage payments alone would have educated entire city,state or fed the hungry for awhile. seems to be more than financial failure as it appears to be a wake up call for the MEGA ministries and their wanton economic development plans at the expense of the congregations and the tax paying public at large. further analysis is needed.
From the very outset of the purchase of the Forum by Faithful Central, was it truly a God directed move or the over-indulgence of easy financing in America? I can see on the surface how this could have been forseen as a great business venture, however; for the Church of God, not so. Was there no Word from the Lord to redeem the time, and foresee the days ahead. I was Banker specializing in Church financing, and you would be surprised the number of church board members sitting in my office claiming, it’s the will of God for them to borrow money to build, and today, they are in foreclosure. I’m sorry, the God that I serve does not act contrary to His own Word!
Everything that has happened to these mega churches makes me wonder if God
was in the decision proccess. Was He left out and pride got in the way. There is
just too much prideful thinking in our churches. Pastors and church members
trying to keep up with the jonses. The bible tells to seek first the Kingdom
of God and his righteouness and these things will be added unto you. Too many
churches are into getting things and not seeking God.
It has been said that when America catches a cold that black Anerican get pneumonia. Well now America has pneumonia and black America is on life support. It has always amazed me how some of these churches made it thus far. One month mortagae payment could sustain the church were I attend for an entire year. Perhaps these churches should consider helping the least of these; and see how God keeps God’s Word when God says “give and it shall be given back to you press down shaken together and runnig over…” Kingdoms have been built and they shall not stand, because the king that is in power in that kingdom is not the King of kings. The competition, the selfishness, the self-promoting, the looking down on those with the same calling and creating clicks in the kingdom; all this is going to require answers. Numbers doesn’t make us great, the Bible says the one who is a servant is the one who is great. I pray for all churches who are struggling during this time. I see the struggle that my church is going through just to garner $3000 per week to stay afloat. I shutter to think where we would be if that number was $300,000. Remember this too shall pass. Keep the faith Pastors and members please, please don’t forsake the church during these times. Read Acts when the church got in a tight the people sold “stuff” and “things” and brought the proceeds to the church (remember you can’t lie). What are you willing to do for the sake of the Kingdom?