News & Notes February 2003

Building Purchase Prudent for PACD

PACD's purchase of a building to serve as its headquarters was a prudent financial move that will support the organization's growth. Owning the building should not result in added operational expenses, based on current projections, but will afford the association a source of equity and room for future expansion.

Operational expenses for the building, including taxes, are comparable to the association's current rental expenses. The first floor of the building is leased to tenants. This income will help offset the monthly mortgage payment.

PACD paid $393,000 for the three-story building in downtown Harrisburg and secured a fixed-rate mortgage of $250,000 for 15 years. Association officers, however, have expressed the intention to recover the purchase price of the building in a shorter amount of time if possible.

The association also will continue to seek monetary donations to its Building Fund, as well as the donation of goods and services to furnish and enhance the office space. The Building Fund was set up as a semi-restricted account and will be used for renovations and future expenses.

First Vice President Encourages Building Fund Donations

Editor's note: At the PACD Executive Council Meeting, October 31, 2002, in State College, PACD First Vice President Jarrett Miller updated attendees on the association's prospective building purchase and encouraged them to donate to the Building Fund. Excerpts from his speech follow.

Isn't this an exciting, memorable day? . . . When people think back, [they will recall] that we took a step toward the future on this day. We took a step to move into our own building. You empowered your Executive Board to secure a building on your behalf and we have done that…It has been a long and studious undertaking. But we have found a building that meets our needs for today-those things that you said we must have - and that will meet our needs for the future. . . .

The building has three floors, with the first floor presently rented. The rental of the first floor will help us to meet our mortgage obligation. The cost to operate the building is comparable to what we currently are paying in rent…As with any old building or any new building, you continually have repairs and maintenance. We've taken this into account…

A lot of people when we were starting our building fund said, "Yes, we will support it. Show us the building. We're not going to give the money until we see the bricks." They probably thought we were just dreaming, that we'd never achieve it. Now we're showing you the bricks.

Your Executive Board had contributed before. They're contributing again. We're averaging over $100 per board member. . . . We had one person make the commitment to give $2 a week until the mortgage is burned. That's $100 a year.

There are many other people . . . who believe in the work of PACD. They've been coming for years, serving on committees and working diligently. We're asking you to show your dedication beyond being present at meetings, by opening up your heart with your purse and giving funds so that we might be able to pay off this mortgage faster than [the term of] the loan. We're asking you to each go back to your districts, discuss it with your personnel, and ask them if they are willing to continue to make a commitment.

I bought a cup of coffee at a truck stop and paid over a dollar and a half for it. Just think, if I gave up one cup of coffee a week, plus a little more, it would be $2 a week. Two dollars a week is not much for what we are trying to achieve for conservation in Pennsylvania - to assure that good water is still available for our children's children, that we have clean air to breathe, that the soil will still sustain agriculture and life for the next generation . . . .

So I plead with you to support our effort. Let's eliminate the mortgage as quickly as we can. You will be proud when you see the building. . . . I can assure you that it . . . will meet your needs and the needs of this association for many years to come. We're proud of it. We're proud that we were able to do what you had asked us to do. Now make us proud of you . . . ."

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