The
Nuts & Bolts
of Setting Up
Christian Community:
The Nuts And Bolts Of Setting Up
The actual setting up of a community, if done responsibly, can be quite involved as there is much to consider. After having done much research into several Christian communities, I have come upon several ideas that could work and several that most probably will not work, you be the judge.
Corporate Ownership
No one person or small group should own or control more than 15% of the total assets. This allows everyone to feel that their investment has a voice in the community and the way that it functions. Around the time that the land is to be purchased, a limited liability partnership type corporation having stock ownership should be established. Although the initial parcel of land may be purchased by one individual who then owns all of the stock, he would sell off stock to those interested in being the founding members of the community until he had no more than the maximum 15% allowed.
In the eyes of the government, this land parcel would essentially remain intact. The corporation, on the other hand, would draw up a corporate parcel map and hire a surveyor to install permanent land monuments. These monuments would define the boundaries of both the "Stewardship Parcels", and the parcels allotted to the village area itself. Those who invest capitol into the village corporation and own a certain share of stock, would be granted a stewardship parcel of their choice in the order that they commit to the venture. This parcel will be theirs to do with as they please, within established community parameters. To build a home, garden, boat dock or whatever else that could be a blessing and an encouragement to others.
The Village
The village areas would be owned by all of the shareholders in common. These areas could be used to house a community center, shops, stores, offices, ministry accommodations, vacation and visitor condos, community gardens, agricultural and aquaculture areas. The list is endless. Because the village community would be set up as a for profit venture, all of the business endeavors would need to be self-supporting and show a reasonable profit. This profit could then be used to further develop village infrastructure and expansion into other areas of commerce or ministry.
This community village should be a blessing and not a burden to the host country and their civil services. We should be a blessing to those all around us by providing quality goods and services at reasonable prices....and always with a warm and joyous attitude! We should prosper to the point of being able to assist and give to the hurting and needy as the Lord directs us. To be a real help in times of crisis or natural disaster. To be the Lord's ambassadors and representatives to the world all about us.
Protected Buy Out
When, for whatever reason, a person must leave the community, they must be assured that they will be able to recoup all of their investments into the community. This will encourage folks to invest in building quality structures and improvements to their stewardship parcels. In instances that I have studied where one individual owned all of the land, those entering into the community endeavor would tend to bring in trailers, buses or other mobile type homes to live in. Apparently so that they could be moved at some latter point in time.
The community should retain first right to buy back the stock of any person or persons desiring to leave the community. This would be done so at the same price that they had originally paid for them, adjusted for inflation. These same people would also be compensated for improvements to their stewardship parcels (SP's) based on a set formula for square footage valuation of living areas. Only homes built in compliance with the uniform building codes (electrical, plumbing, mechanical, etc.) would qualify for the buy back on improvements. The uniform building codes are the recognized MINIMUM building standards in the USA. We should encourage nothing less in our new little village.
In other examples that I had studied, although the community had the buy back rights, the value of land had skyrocketed to the point that the community could no longer afford to purchase them back. They were then sold off to people that did not reflect the values of the original community. As such, non like-minded members entering in watered down the community to some extent.
The above understanding mediates the two potential problems. The investor / member is assured of getting back their initial investments and the community is assured of being able to purchase back the community stock at an affordable price.
The understanding that needs to be clearly put upon the table from the very beginning is the fact that no personal profit is to be expected from the individual members by the sale of their stock. Over the years, the value of the land will undoubtedly rise in value. The growth and development of the village itself will lend over all value to the community stock. And, from time to time, the community members may vote to increase the stock value.
This would mean that those wanting to buy in would pay more for any available stock, AND the community would have to pay more for any buy back situations. I know that much of what I have written seems a bit unspiritual....okay, totally unspiritual, but it is a reality of life and it would be poor stewardship on our parts not to incorporate these principals as stones in the foundations that support the community as a whole.
Sample Example
Okay, let's imagine a typical situation of a person investing in this community venture so as to clarify how it all might work out. I will pick numbers out of the air as no real values can be ascertained until the actual land is purchased and development begins.
Mr. Brown likes the idea of living in a Christian community. He has met with the other founders and has been accepted as being like-minded with the values and vision of this community / village. He then purchases 100 stocks for $50K from the corporation. Of this amount, $25K will go back to the folks who initially bought the land to begin with and the other $25K will enter into an account for the purposes of developing the village itself.
Mr. Brown now chooses from many stewardship parcels available for his purposes. In doing so he enters into several covenants with the community. That he will care and manage his SP with diligence and honor his neighbors and community values as he would honor himself. That he could not apply for a buy back from the community for at least five years. And that he would begin construction of a permanent home within two years and will complete it by three years.
Mr. Brown now clears his land, builds his house (to UBC standards) and plants a garden. He helps to oversee and provide input into the development of the community village. In time, the profits from the running of the village are divided up amongst the holders of stock. Mr. Brown decides to use his portion to support a ministry in Guatemala. Later in life, he may opt to use his portion for daily living expenses.
Ten years pass. Mr. Browns' stock on the open market would be worth well over a million dollars. The community corporation twice voted for a stock valuation increase. Mr. Browns original 100 stocks purchased for $50K are now worth $100K according to the valuation increases.
Mr. Browns' wife passes away and health issues cause him to decide on a return to the USA. He applies for a buy back from the community (which the community must complete within twelve months or Mr. Brown would have the option of selling his stock and his rights to his SP on the open market). The community removes from their reserve account, $100K for his 100 stocks, $25K for the inflation adjustment, and $75K for the community placed valuation on the home that he built. Mr. Brown takes with him $200K to start his new life back in the states.
Mr. Brown's stock, now owned by the community as well as his stewardship parcel and the home that Mr. Brown constructed are offered to one of many people waiting to enter this community. The stocks are to be sold at the prevailing valuation. This would mean that a person chosen to enter into this community could pay only $200K for a situation worth well over a million. If there were a stock valuation increase within five years of Mr. Brown's selling back, the community would have to reimburse Mr. Brown or his estate the difference in increase. This little stipulation would remove the desire to manipulate stock values for undue profits. Remember, it's all about community living and not about making undue profits.
Now, under the same set of circumstances, Mr. Brown could have opted to allow the village to rent out his SP as a vacation rental and to manage its upkeep. This would provide Mr. Brown with a regular income and maintain his standing within the community. Should Mr. Brown choose to leave his investment in the community to his children, he could, provided that they were known and accepted by the community as active members. If not, then there is, of course, the buy back option.
Strict criteria for the community should be in place for them to disallow heirs from assuming ownership of an investors holdings. I can see issues of greed or favoritism towards folks waiting to enter into this community, affecting or swaying the leadership’s decision to allow or disallow an heir to assume a SP....especially if the people waiting to get in are friends of those in leadership. On the other hand, I can see children or heirs wanting to live in this community but not having the mindset or commitment to Christ to effectively do so. Again, sorry for the doubts but I am painfully aware of what a man's heart is capable of... so I am trying to gently "bullet proof" things as they are still on the drawing board. Your input would be helpful!!!
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Agape Village @2008----Bob Kaline-----PO Box 781-----Ferndale, CA. 95536
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the
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ambassadors
and
representatives
to
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world
all
about
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