A non-denominational community church was recently threatened with foreclosure following verification that it owed $11.3 million in principal, as well as substantial interest and moderate late charges, as reported by a New York Criminal Lawyer.
The non-profit community church in Palm Beach Gardens was cited for a possible foreclosure along with its fellow tenants, including a construction company and a real estate counseling firm. The principal amount owed by the church stemmed from a past loan from a local bank in 2006, and the case was heard in the Palm Beach County 15th Judicial Circuit. The non-profit community church originated in a former cinema complex in Palm Beach Gardens, and in 2008 upgraded to its current location, a retail/office/entertainment complex. A New York Criminal Lawyer notes the postulation of Palm Beach Gardens’ vice mayor that the church’s financial situation may be due, in part, to a struggling economy and the resulting decline in giving among members and guests. His insight is relevant due to his further involvement in commercial lending; the vice mayor serves as vice- president of commercial lending for another bank.
The community church houses a 50,000-square-foot cultural center oriented toward the local community, as well as a banquet hall that houses a commercial kitchen and features a capacity of 500 individuals. According to the aforementioned vice mayor of the city, it is likely that an agreement will be reached between the church and the bank- perhaps a payment plan- rather than pursuing a mortgage foreclosure. The vice mayor is quoted as saying, “Foreclosing on a church is not good public relations for a bank”.