Save Sacred Heart

Sacred Heart: What Does My Pledge Accomplish?

A pledge today will ultimately give the people trying to save Sacred Heart Church a foundation to build upon. Your pledge will help convince the Diocese that we can acquire all of the funding needed to successfully complete our goal. Our goal is simple. We want to bring the Church buildings into good repair and operate in a manner that can be respectful of the reason the Church was originally built.

Your pledge will help cover the estimated 1.5M in structural repairs that are estimated by the Diocese, the needed roof repairs, adding modern features like air conditioning and helping ensure the building is ready for use by the community. Our goal is to raise 2.3M to fully fund our operations.

In the event we are able to move forward with an agreement with the Bishop and Diocese, your pledge when collected will be tax deductible. For dollar amounts greater than $50,000, we are able to offer investment opportunities in lieu of donations. More on this below where we go over how we are planning to fund the total amount and structure the deal.

Sacred Heart: What Makes This Effort Different?

As you may have heard, CJ Estel, a real estate investor and prior parishioner of Sacred Heart offered to save the local Parish and the Diocese of Toledo the estimated $800k-1M in demolition costs by purchasing the church buildings. Unfortunately this offer was rejected with the Diocese siting statistics regarding the number of properties like this that ultimately end up in a land bank. The Diocese has personal experiences with a situation similar to that of where Sacred Heart Church is today. The Diocese sold Holy Rosary to someone who ultimately did not fulfill the obligations they had promised at the time of the sale and it has reflected poorly on the Diocese since.

What makes this offer different is the team of people that have been assembled. While CJ Estel lives a couple of hours away, he has been able to build relationships with successful area business owners such as Dan Nester, the owner and founder of Polaris Logistics Group and Tim Croak, owner and founder of Croak Capital. Additionally, Robert Vaile, a central Ohio real estate investor with substantial experience in converting school buildings and other historical structures to housing is also consulting and has offered to help us through the historical grant and tax credit application processes. Between the business acumen and real estate knowledge on the team, this project has a strong chance of success.

Lastly, what makes this different is the community support and their drive to save this beautiful historic Church! As a result of the offer that CJ made, numerous individuals came out of the woodwork to voice their support of the effort to save this building and to put their money where their mouth is. To date we have raised over 1.2M in pledges to support this effort!

Sacred Heart: How Will This Be Structured

While the original purchase offer was rejected, CJ has submitted a new offer that directly addresses the concerns that were voiced by the Bishop and Diocese officials. The new offer is intended to reduce any risk associated with this transaction for the Diocese. This new offer is structured as a 15 year triple net lease with an option to purchase only available to be executed after certain criteria are met. The proposal is that we would have the building in good repair and that we have tax returns showing positive income and cash flow that can be used to ensure the building upkeep can be sustained long into the future. The Lease will allow for the group managing this effort to run their business and or sub-lease to other businesses that will operate in the various spaces.

Sacred Heart: How Will the Deal be Funded?

Donations

Donations play an integral part in allowing this effort to move forward. With the high dollar amount of repairs that are needed and the types of businesses that can respectfully operate out of the buildings, we need to accept donations that can be utilized for leasehold improvements to keep any loans that are needed to a minimum.

Investor Funds

While we have been able to raise a significant amount of pledges for donations to date, it is probable that we will also need investor funds to round out the total dollar amount needed to facilitate the repairs, improvements, and build to suite any businesses operating in the space. If you are interested in joining us as an investor in this project, we are accepting investors with a minimum commitment of $50,000. As we do not yet have a deal to move forward, this is currently structured as a pledge and I’d love to talk more with you to make sure we are a good fit and that our overall goals align.

Cash Investments

Cash investments are the easiest to work with and allow for a simple passive investment

Opportunity Zone Investments

Sacred Heart is located in an Opportunity Zone. If you would like to get some tax advantages on any upcoming capital gains you may incur, I would love to work with you to see if an investment in Sacred Heart would be a good fit. Unlike a 1031, capital gains from stocks and other investments could be deferred and offer substantial benefits for years to come.

Federal Historical Tax Credits/Grants

With approved expenses and application process, up to 20% of the improvements to the building may qualify for a tax credit. With the amount of repairs and improvements being done, this could be a significant credit upwards of $400,000.

https://www.irs.gov/businesses/small-businesses-self-employed/rehabilitation-credit

State Historical Tax Credits/Grants

The Ohio Historic Preservation Tax Credit Program provides a state tax credit up to 25% of qualified rehabilitation expenditures incurred during a rehabilitation project.

https://development.ohio.gov/community/redevelopment/ohio-historic-preservation-tax-credit-program

Local Historical Tax Credits/Grants

There are numerous local grants that we will be eligible to apply for as part of our rehabilitation effort of Sacred Heart Church buildings.

https://www.toledocf.org/grants-2

Loans

Loans require a substantial amount of underwriting for viability both by our investors and by the issuer of the loan. We would like to keep any loans to a minimum as that will go a long way toward ensuring that operating capital can sustain operations and ongoing repairs. With that said, sometimes a loan is the right product for a situation and if needed we can look to utilize loans to help us achieve our goals.

Community Reinvestment Area (CRA)

Sacred Heart Church is part of a CRA which will allow for us to not incur an increase in property taxes as a result of the substantial repairs and improvements that will be done to get the building into proper repair. This will allow for lower operating costs for years to come!

Sacred Heart: So What Will the Buildings be Used For?

As mentioned before, the group that is working on this effort intend to be mindful and respectful of the purpose that the Church was built for. The currently proposed primary business would be a wedding and event center that would be able to make use of the worship area for ceremonies, the commercial kitchen for catering, and the rectory for bridal suites. We are also looking to work with a non profit organization that can accept donations for lease hold improvements and operate out of a portion of the church basement.

As part of our request to meet with the Diocese and discuss the matter, we have committed to working with them to identify a business or businesses that they would be comfortable with operating in this space. In the event they do not approve of a wedding and event center, we have numerous other ideas that have been proposed by the community and our target group. We are happy to work with the Diocese and determine whether or not the business that ultimately ends up operating in the space will be profitable enough to sustain the ongoing capital expenditures that buildings like this require.

Sacred Heart: A Cornerstone of the Garfield Neighborhood

In 1906, the fervent petition of 100 German families east of the Maumee River led to the establishment of Sacred Heart Parish and Church. Since then, Sacred Heart has been more than just a place of worship; it has been the beating heart of our community. Through times of celebration and sorrow, this sacred space has brought us together as one, knitting the fabric of our neighborhood tightly.

Recognized for its historical and architectural significance, Sacred Heart was declared a historic building in 1996 under the East Toledo Historic District by the National Register of Historic Places. The district is also registered and acknowledged as historically significant Statewide in Ohio. Its basilica-style structure stands as a testament to the craftsmanship of its time, boasting intricate artisan work in stained glass, woodwork, stonework, and more—a rarity in American church architecture.

However, amidst the revitalization efforts in Toledo, the fate of Sacred Heart hangs precariously. The announcement on December 27th, 2023, by the Catholic Diocese of Toledo to close and demolish Sacred Heart marks a distressing turn of events. It signals a broader trend observed in many cities, where historic churches are razed to make way for new developments. We see this as a canary in the coal mine—a warning of the erasure of our history if we do not act purposefully.

Sacred Heart is not merely a building; it is an anchor institution in our community. Recognized in the 2021 Garfield plan adopted by the city, it holds a special place in the revitalization efforts outlined by the Department of Housing. Its demolition would not only signify the loss of a physical structure but also the obliteration of our collective memory and heritage.

As a coalition, we are committed to preserving the legacy of Sacred Heart and other historic landmarks in our neighborhoods. We believe that our churches are repositories of our history and culture, and their demolition would be an irreparable loss. Together, we must work towards a future where our architectural treasures stand as proud monuments to our past, guiding us toward a more vibrant and inclusive community.

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