November 14, 2024
Over the last year, in partnership with our Intentional Interim Co-CEOs, the board has provided ongoing transparency related to the long-term sustainability and renewal of each of our NovusWay camps. Many of these messages included difficult information, and today is no exception. While we have been meeting bi-weekly since Hurricane Helene hit, we gathered in person at Lutheridge this past weekend for our regularly scheduled November board meeting. This is typically when we approve the budget for the coming year. In a follow-up message, we will share additional updates from that meeting.
Today, we want to focus on the painful decision we made this week to suspend the operation of Lutheranch on March 31, 2025, and place the remaining southernmost portion of the property on the market for sale. The resolution, which was approved unanimously, is included below. It outlines how the board arrived at the necessary decision for this holy closure. In a sentence, the world has changed since Lutheranch was envisioned, and we cannot sustain four camps long-term without jeopardizing the whole. It also outlines our plans for the proceeds, particularly those to honor our partners in the Southeastern Synod, who helped make Lutheranch possible, with a named endowment to support developing leaders for the future of the church.
As your board, we know many will find this news painful. We grieve with you. We have had time to sit with this information. As you sit with this information, if you have questions or thoughts you’d like to share, please don’t hesitate to reach out to Mitzie at mitzie@gsbfr.com or Mike at ward@gsbfr.com.
During our worship together at the board meeting, Pastor Steve Troisi read the 46th Psalm. While for many of us, it had implications for the devastation of Hurricane Helene, it also provided comfort in the midst of this painful decision.
In Christ,
Floyd Self, on behalf of the NovusWay Board of Trustees
Board Chair
A Resolution Regarding Lutheranch
Whereas, a year ago, the NovusWay Board of Trustees established a Lutheranch Vision Task Force, a group of key stakeholders including Bishop Strickland, for the purpose of assessing the future of Lutheranch, and which provided great insight into the objectives, history, and evolution of purpose and focus of Lutheranch over time; and
Whereas, the Task Force also conducted a survey of stakeholders, and
Whereas, in March 2024, the Task Force reported that “the constituency strongly desires to develop Lutheranch’s year round use further” and acknowledged that “the best option for financial strength is to remove the land debt and develop the site to maximize occupancy,” with the hope that “with the debt gone, facilities can be developed through the next campaign to reach a sustainable model;” and
Whereas, in conjunction with this self-assessment of Lutheranch by inspired and loving users and contributors, NovusWay has, over the last year, attempted to more formally market the McKanna-Sandrock Center through a professional recruiting firm as a site for business meetings and retreats, in addition to our own ongoing efforts to market the camp for hosted ministry programs and other appropriate uses of the facilities; and
Whereas, despite our best efforts and the quality of the McKanna-Sandrock Center, we have not been able to grow the use or attendance of the facility, and even with the significant changes that were made in late 2023 to reduce staff, eliminate the costly horse program, and focus operations on the facilities we have, Lutheranch continues to operate at a significant financial loss; and
Whereas, the Board has negotiated the sale of part of the camp that will enable it to retire the existing $2.1 million mortgage; and
Whereas, even with the sale price exceeding the outstanding mortgage, the net proceeds will not be sufficient to financially secure the future of the camp given the continuing lack of sufficient occupancy, let alone to maximize occupancy; and
Whereas, upon further evaluation, to best position Lutheranch for any type of ministry program, even the least costly business plan would require an additional investment of several millions of dollars more with no guarantee of Lutheranch being able to cover its operational expenses, nor recover the substantial additional investment that would be needed; and
Whereas, over the last year, NovusWay has been assessing the health and viability of all four of our NovusWay camps, and we have made a number of difficult decisions regarding staffing, land sales, and programming, all with the intent of making the organization and its camps more financially and operationally viable for the foreseeable future; and
Whereas, as a part of this assessment process, the Board has come to the painful acceptance that the world has changed and changed significantly since Lutheranch was first conceived and set in operation, and that the church today in our four Synod service area does not have the number of congregations or number of members that will financially or operationally support the continuing operation of four camps for our four Synods; and
Whereas, in assessing the physical assets of each camp, the history and tradition of ministry at each camp, the location and proximity of our camps to our congregations and users, the availability of staffing, and the level of interest, commitment, and financial support the different constituencies of each camp have to offer, we have come to the recognition that building a viable future for Lutheranch would be difficult and problematic, requiring funding sources and participants that do not exist today nor are expected in the foreseeable future, making the financial viability of the camp unsustainable in the short term and the long term; and
Whereas, recognizing the continuing and vital role that church camps play in faith formation, character building, and in inspiring individuals to serve Christ and the church through careers in ministry, it is imperative that we operate our camps in a fiscally and operationally responsible manner so that we can fulfill our mission to inspire faith, build relationships, and transform lives.
Now, therefore, be it resolved by the Board of Trustees of NovusWay, as follows:
After careful consideration of the foregoing, and through extensive, passionate, and loving conversation regarding Lutheranch, we, the Board of Trustees of NovusWay, have concluded that the long-term viability of the ministry of NovusWay requires the sale of the remaining part of Lutheranch. To continue to operate four camps presents financial and operational challenges that are not sustainable over the long term. In order for this ministry to survive and grow, and fulfill our vision and mission, our fiduciary obligations as Board members leaves us no other realistic alternative but to sell Lutheranch.
Accordingly, the co-CEOs are authorized to initiate the process of selling the remaining part of Lutheranch that is not presently under contract to be purchased and closed in early 2025. The co-CEOs shall bring to the Executive Committee any offers they believe are viable and reasonable offers to purchase the remaining property “As is.” If the Executive Committee finds an offer reasonable and appropriate, the Executive Committee shall bring such offer to the Board of Trustees for Board approval. Any motion to the Board recommending approval of the sale shall contain further directions regarding the review of the closing documents, who is authorized to sign the closing documents for the sale, and any other necessary requirements to consummate the sale.
The co-CEOs are authorized to seek out the professional assistance of real estate agents, appraisers, closing agents, and other appropriate professionals they deem necessary in their professional judgment to solicit and implement the sale of the property, subject to Board oversight and approval as set forth herein.
In deciding to sell Lutheranch, the sale should occur no earlier than March 31, 2025, and all hosted ministry and other programming and activities scheduled through March 31, 2025, are authorized to continue. The intent of this Resolution is that all operations at Lutheranch shall cease effective April 1, 2025, except for those necessary activities to maintain and preserve the facility in the most reasonable manner that will facilitate its sale.
The orderly communication of this decision is vital so that everyone understands that the Board speaks with one voice and so that this decision is thoughtfully communicated to our staff, stakeholders, and the larger church. Prior to the public release of this decision, which shall occur no later than November 14, 2024, the co-CEOs shall in due course inform staff and key stakeholders, and where appropriate, utilize the assistance of Board members to contact stakeholders. The co-CEOs are authorized to make such public announcements through the usual media channels upon approval by the Executive Committee.
To acknowledge and honor those who worked tirelessly and gave sacrificially to help purchase the land at Lutheranch and build the McKanna-Sandrock Center for the purpose of providing faith-forming and life-changing experiences for children and counselors, the majority of the net proceeds of the southern portion of the Lutheranch property will create endowments to be determined by the Board at a later date which shall include a named Southeastern Synod Endowment at NovusWay, which shall provide camper scholarships and leadership development opportunities for youth and young adults in perpetuity across NovusWay. This endowment will also support work with the Southeastern Synod campus ministry programs to recruit young adults as counselors to ensure we continue to build faith leaders for the future of the church and the world.
To further honor our siblings in Christ in the Southeastern Synod, who worked to build or sustain Lutheranch, we will also establish a named endowment for each naming gift given to the capital campaigns for Lutheranch by individual donors and congregations. Our board members and co-CEOs will contact those donors in the coming weeks to give them options for how they would like their endowment to support the ministry going forward. Where original donors are no longer available, those funds will be transferred to similar projects at other NovusWay camps consistent with the original intent of those gifts.
The co-CEOs are authorized to take such other necessary and proper steps consistent with the intent of this Resolution.
This Resolution was unanimously adopted by the Board of Trustees at a Zoom Board meeting on Tuesday, November 12, 2024.
