Update on River City Federal Credit Union Acquisition

Following the worship service this last Sunday, the Session met to consider making a final recommendation in regard to purchasing the River City Federal Credit Union (RCFCU). After a lengthy due diligence period during which funds were raised for the down payment, financing was secured through the RCFCU and a lease arrangement was negotiated with RCFCU for their occupancy, the Session is pleased to recommend to the congregation:

To authorize the trustees of Redeemer Presbyterian Church of San Antonio to purchase the River City Federal Credit Union, located at 610 Augusta, San Antonio, TX 78215, for the price of $1,820,000. Redeemer Presbyterian Church shall make a cash down payment of $364,000 with financing provided by River City Federal Credit Union for the balance of $1,456,000.

With congregational approval, the purchase would close on or before July 22, 2014. It is important to note the following when considering this recommendation:

• Funds for the down payment have been raised and are in addition to the previous funds raised for the building project.
• Financing for the additional $1,456,000 shall be provided through the RCFCU at a fixed annual rate of 4.5% for ten years. The loan will be interest only for the first five years. Principle and interest will be payable over the next five years based on a 20 year amortization.
• The RCFCU shall be a tenant for three years, guaranteed for two years. Their rent corresponds to the interest payment. If occupying the space for more than five years, the rent will increase and correspond to principle + interest.
• The RCFCU shall be responsible for all utilities and maintenance of the property and building, ensuring that the building is kept in good working order, for the duration of their lease.

There will be a meeting of the corporation on Sunday, June 15th, following the 10:45 a.m. worship service to vote on this recommendation. Childcare for children under the age of four will be provided for the meeting.

Let us continue to give thanks for God's abundant and gracious provision and His promise to extend His Kingdom in our midst!