wfn.org | Newsline - Church of the Brethren weekly news update

[Church of the Brethren News Services]

Date:      April 17, 1998
Contact:  Nevin Dulabaum
V:  847/742-5100   F:  847/742-6103
E-MAIL:   CoBNews@AOL.Com

Newsline                                          April 17, 1998
News

1) Bethany Theological Seminary's former Illinois campus is sold
     for $8 million now and up to $8 million later.
2) Kaysa McAdams retires as Bethany's business manager and
     treasurer. A successor is being sought.
3) A vigil protesting the School of the Americas will be held
     April 26-28 in Washington, D.C. 
4) Jars of Clay confirms it will perform at National Youth
     Conference 1998.
5) West Marva District to hold its 20th annual songfest on
     Sunday.
6) Virlina District holds Pilgrimage: A Faith Quest for Adults.
7) A resource packet is sent to Brethren youth groups from the
     Brethren Witness office.
8) An ecumenical conference on Africa is scheduled for May 29-31
     in New York State.
9) Choir robes, anyone?
10) Three Brethren are remembered.
11) Clarification regarding last week's announcement of an
     opening for a Latin America/Caribbean specialist. 

Feature
12) With the shadow of bankruptcy ever so close in 1992, Bethany
Theological Seminary was running out of options on how it could
move from the Chicago area to Richmond, Ind., to cut costs. This
story, which concluded this week with a happy ending, is a tale
of a mutually beneficial arrangement made between Bethany and
Brethren Benefit Trust. 

1) The adage "good things come to those who wait" rings true this
week for Bethany Theological Seminary, which learned on Monday
that the long-awaited and anticipated sale of its former Oak
Brook, Ill., campus had been completed -- the paperwork,
including an $8 million check, had arrived. The transfer of the
property from Bethany to Fountain Square of Lombard Inc.,
concludes the six-year saga of Bethany trying to sell the 51-acre
parcel, which is located near Chicago.

According to spokeswoman Marcia Shetler, Bethany in 1992 saw the
shadow of bankruptcy beginning to draw near. Bethany president
Gene Roop approached Brethren Benefit Trust (BBT) president Wil
Nolen seeking a loan that would allow the seminary to relocate to
a smaller, more economical location. An agreement was ultimately
reached, money was loaned and in the summer of 1994, Bethany
relocated to Richmond, Ind. There it developed an educational
partnership with Earlham School of Religion, a Religious Society
of Friends seminary.

Shetler said the sale of the Oak Brook property faced several
challenges -- any proposed project had to fit the plans of the
village in which it would be incorporated; the project needed
approval by local, regional, state and federal agencies; and the
proposed project needed to be financially viable for the buyer
while providing fair market value to Bethany. Inquiries Bethany
would receive over the next few years, at least two which were
made public, were either unacceptable to local boards or did not
come backed with sufficient funds necessary for purchase. In
September 1997, Bethany and the Shaw Company formed Fountain
Square of Lombard Inc. The plan was for Fountain Square to
purchase the property, develop a site plan, and then resell
parcels of the land to various buyers. This plan received
approval from the Lombard Planning Commission and Board of
Trustees within six months. 

The new development will include residential, retail, restaurant,
hotel and commercial properties. The approved site plan features
ponds, fountains and about one thousand trees, 2 1/2 times the
amount of trees formerly on the site.

In addition to the $8 million Bethany received from the sale of
the property -- which it already has used to retire its loan with
BBT, to pay applicable taxes and to repay a loan from its own
endowment -- Bethany will ultimately receive an estimated $8
million in income when the parcels are developed and sold. This
income will go entirely to the seminary's endowment "to
strengthen Bethany's financial future for tomorrow's educational
mission," Shetler said.

At a dinner held during the Bethany board's March meetings, chair
Earle Fike expressed appreciation to Wil Nolen of BBT, Dennis
Stine of the Shaw Company, and Thomas Karaba, Bethany's legal
counsel. Of Stine and Karaba, Bethany president Eugene Roop said,
"They brought to this project uncommon personal integrity as well
as professional skill. They took care to see that the project
attended to our denominational values as well as our financial
needs." 

Of BBT's willingness to grant Bethany a five-year loan, Roop
said, "From Bethany's point of view this loan represents a
remarkable partnership between two Brethren agencies -- one that
benefited both Bethany and BBT. Working together we have
strengthened the ministry and supported the mission of the whole
of the Church of the Brethren."

"This occasion calls for more than the traditional mortgage
burning," said Nolen on Monday in response to news that the sale
had been completed. "A solid partnership resulted from the
contract between our two agencies and we want to commemorate our
strong alliance." Nolen said BBT will do this by presenting to
Bethany a framed excerpt from the mortgage that will include
"Paid in Full, April 13, 1998." It will also feature photos of
key leaders from both organizations that surround a photo of
Bethany's Richmond facility.

"The Bethany board has spent countless hours in praying and
planning and trying to do the best it can do in honoring its
responsibility to the denomination for future ministry training,"
said Bethany board chair Earle Fike in early March. "It is my
belief that the manner in which the board has handled itself in
the last five years has been exemplary in financial matters,
educational excellence and long range planning." 

During a board meeting dinner, Fike concluded a litany he had
written by stating, "For this moment in time when the promise of
good things to come is beginning to be realized; when hope for a
stronger and more vigorous contribution to the development of
leadership in the Church of the Brethren seems more possible, we
give hearty thanks to you, O God, and sing your praise."

Photos, artists drawings and additional text is available at
www.brethren.org.

2) Kaysa McAdams, Bethany Theological Seminary's business manager
and treasurer for the past seven years, has announced that she
will retire on May 10, following commencement.

McAdams joined the Bethany staff in May 1991, in her current
capacity, save one exception. Following the move by Bethany to
Richmond, Ind., in 1994, she became director of a business office
that serves Bethany and Earlham School of Religion (ESR). She
also has handled the financial aid programs for both seminaries.

In related news, Bethany has announced it is seeking McAdams'
successor. The position requires education in nonprofit fund
accounting using computer spreadsheets, significant experience in
managerial accounting, managerial experience in business
operations, the ability to work collaboratively in a diverse
educational environment and a commitment to the Christian church
and the educational mission of the seminaries. A CPA designation
or an MBA degree would be valuable, the announcement reads.

"While applicants may not have experience in all areas, we will
expect the ability and commitment to learn so as to provide
appropriate supervision to business office staff," continues the
announcement. "The salary is competitive with similar-sized
educational institutions."

For more information, contact the Office of the President at 800
287-8822.

3) A vigil will be held April 26-28 at the White House and at the
U.S. Capitol during which protesters will call for the close of
the School of the Americas (SOA). The Church of the Brethren
General Board in July 1997 passed a resolution also calling for
the closing of the school. 

Although graduates of the school have been linked to the most
egregious human rights violations in this hemisphere, the
U.S.-operated school, located at Fort Benning, Columbus, Ga., in
January received additional funding after obtaining approval from
a Defense Department subcommittee. According to the committee's
certification report, the SOA now meets certain conditions that
allowed it to receive the funding, which stands at $20 million
annually. Congress debated funding of the school last fall.

According to the Latin America Working Group of the National
Council of Churches, many problems still remain with the 
school --
     * there is still no adequate external oversight of
          curriculum.
     * flaws in past curriculum are not fully admitted and, thus,
          are unlikely to be corrected.
     * human rights and democratic values remain a minimal part
          of the curriculum.
     * there is no objective evaluation of SOA graduates. 

Heather Nolen of the Church of the Brethren Washington Office
cites other troubling indicators as well -- since Congress
debated the school last year, almost 150 SOA graduates have been
linked to human rights abuses. 

The Sebring (Fla.) Church of the Brethren is one congregation
that has responded to prior calls by the Washington Office for
lobbying efforts against SOA.

On April 7, the church sent more than 80 letters to Florida's
U.S. senators and representatives, urging support for proposed
legislation that would close SOA. U.S. Rep. Mark Foley responded,
stating he is supportive of a bill that would turn the school
into a school of democracy. 

Ginny Groves of Sebring's Witness Commission said the church
decided to send the petitions following SOA-related articles that
have been printed recently in the Washington Office's Witness to
Washington newsletter and in Messenger, the Church of the
Brethren denominational magazine. which issues?

For more information on the vigil or how to help close the
school, contact the Washington Office at WashOfc@AOL.Com or 202
546-3202.

4) Jars of Clay, a nationally known pop and alternative Christian
band, this week signed a contract to headline the late night
Saturday concert Aug. 1 at National Youth Conference (NYC) 1998.
The quadrennial conference, held at Colorado State University in
Fort Collins, is expected to draw up to 5,000 Church of the
Brethren youth and advisers.

Jars of Clay band members Dan Haseltine, Matt Odmark, Charlie
Lowell and Stephen Mason met while attending Greenville (Ill.)
College; they began playing together in 1993. They have released
two albums -- "Jars of Clay" and "Much Afraid" -- and are known
for their first single, "Flood," which broke into the Top 40.

Other late night NYC performers will include Ken Medema, an
inspirational multi-genre musician who played at NYCs 1990 and
1994; Kindling, Brethren folk group; Ted & Lee, a Mennonite
comedy duo; Conviction, a Christian band with two NYC
participants as members; Joseph Helfrich, a folk musician; and
the Western Pennsylvania District Performing Arts Camp.

National Youth Conference is scheduled for July 28-Aug. 2. For
more information, contact the NYC office at
CoBYouth_GB@Brethren.Org, 800 323-8039, or at
www.brethren.org/genbd/nyc.

5) An estimated 300-350 people are expected to attend West Marva
District's 20th Annual Songfest Sunday at Beaver Run Church of
the Brethren, Burlington, W.Va. This event will feature choirs
and musical groups of all ages from 13 to 15 of the district's
nearly 70 churches.

Each congregation represented will have 10 minutes for its
musicians to perform. Participants will also sing favorite hymns
and other musical selections.

According to Naomi Miller, song fest chair for the past 12 years,
the event is always held following Easter, which results in "a
very spiritual and rejuvenating day in honor of the Lord." 

The fest will begin at 2:30 p.m. and will conclude by 5:30 p.m.
Call Miller at 304 289-3236 for more information.

6) Three times this decade the youth from Virlina District have
participated in Faith Quest, a weekend event that has seemingly
increased participant's commitment and devotion to the church.
Wanting to participate in a similar life-changing experience of
their own, 46 district adults on March 20-22 attended Pilgrimage:
A Faith Quest for Adults. Participants had the opportunity "to
share and learn with others as we journeyed together on the road
to a deeper spirituality and commitment," said Doris Quarles,
Virlina District associate executive. "We were challenged to look
at 'Discovering Self,' 'Discovering God' and 'Discovering Our
Relationship with Others.'"

One unexpected outcome of Pilgrimage came in the form of prayers
from nonattending supporters. "At least 84 people, one every half
hour, were in prayer for the event and its participants," Quarles
said. An entire congregation even devoted a portion of its Sunday
morning service to be in prayer for Pilgrimage participants.
"Many of them have stories of how they were blessed by their time
in prayer," Quarles said. "Many others gave behind-the-scenes
gifts because they knew from past participation with the youth
the joy the weekend gives and wanted to make it special for the
group."

Two similar events have been scheduled for 1999 -- one for youth
(March 12-14) and one for adults (March 26-28). Contact Virlina
District at Virlina@AOL.Com or at 540 362-1816.

7) All Church of the Brethren youth groups will soon receive a
packet of resource materials from the General Board's Brethren
Witness office. Included in the packet is a flier that describes
a "Turn Down the Heat" initiative, an activity youth can help
lead in their churches to reduce the amount of carbon dioxide
that is emitted daily by automobiles. Also included are a "Take
the Pledge" flier, which describes the campaign that asks youth
and adults not to fight to kill, and hunger education and action
materials. Contact Brethren Witness for more information at
Witness_GB@Brethren.Org or at 800 323-8039.

8) An ecumenical conference on Africa with the theme, "Africa in
Perspective: Prospects and Possibilities -- The Role of the
Church in a New Africa," is scheduled for May 29-31 at Stony
Point (N.Y.) Center, a Presbyterian conference center. The
conference will include nearly 20 African and American Christians
and academic specialists. According to a release, the conference
will address how the churches and people of Africa will address
democratization, development, human rights, education, poverty
and hunger, women's roles, the roles of the United States and the
United Nations, and the role of the church in Africa with regard
to the United States, as the new millenium draws near.

"This conference offers our members a chance to hear from a
variety of African specialists about particular challenges facing
the continent at this time," said Merv Keeney, director of the
Church of the Brethren General Board's Global Mission
Partnerships. 

"Speakers will also identify areas where we, as Americans, might
engage these issues," he added. "Since Africa remains one of the
General Board's focus areas, I would be glad to see a strong
Brethren presence (there)." 

Cost for registration, room and board is $185. For more
information, call 914 786-5674.

9) The Wilmington (Del.) Church of the Brethren has 15 gold and
16 black adult choir robes and 10 maroon children's choir robes
to give away. If interested, call the church at 302 656-5912.

10) Three Brethren who gave long-time service to the church
passed away thus far this year.

Helen Flory, 92, a 45-year employee of the General Board, died
April 7 while undergoing surgery in St. Louis. From the beginning
of the Pension Plan in 1943 to her retirement in 1974, she served
as administrative assistant and customer service staff for the
Church of the Brethren Pension Board.

Grayce Brumbaugh, 87, a Brethren nurse who served for nearly four
decades as a missionary in Africa, died March 30 in La Verne,
Calif. From 1937 to 1975 she served in Nigeria. She then moved to
Niger for a year to assist in the denomination's response to a
great drought.

Newsline also learned this week that George Welch, 106, a
long-time member of Washington City Church of the Brethren, died
in mid-January at a veteran's hospital in Washington, D.C. Welch,
who served in the U.S. Navy during World War I, joined the
Washington church in 1971. According to Gena Zak, current house
manager of the Brethren House in D.C., Welch served as a handyman
at the Brethren House for many years, which meant he became
acquainted with many Washington-based young adults serving as
Brethren Volunteer Service Workers.

11) Clarification. Last week Newsline announced a new internship
or Brethren Volunteer Service position -- Latin America/Caribbean
specialist for the General Board's Global Mission Partnerships
office. The "internship" category will offer a living allowance
between subsistence and a salaried position, and is a
time-limited arrangement intended to enhance skills. People
willing to serve in the position as a BVSer are also invited to
apply. For more information, contact Global Mission Partnerships
at 800 323-8039.

12) The story of Bethany Theological Seminary moving from the
Chicago suburbs to Richmond, Ind., out of financial necessity is
a story of hope, faith, partnership and necessity. It is a story
in which Bethany gets top billing, with a crucial supporting role
played by Brethren Benefit Trust, a Church of the Brethren
organization that was creative and yet fiscally responsible to
its members as it provided funds that enabled Bethany to relocate
nearly four years ago. 

That partnership is celebrated this week following the
long-awaited sale of Bethany's former Illinois campus,
particularly by two of the people who made it happen -- Gene
Roop, Bethany president, and Wil Nolen, BBT president. Their
respective stories follow.

Gene Roop --

As a part of Bethany's effort to reorganize and reorient itself
in the summer of 1992, Bethany needed to restructure its debt in
order to relocate to Richmond, Ind.; sell its DuPage County,
Ill., property; and carry on its educational mission.

The first step required adopting a budget that was financially
sustainable and educationally effective. Bethany had struggled
through several years of deficit budgets. It had increased its
debt load from a modest 1978 loan taken against its endowment to
a debt crisis in 1992, which threatened near-term bankruptcy. The
1992-1993 budget was balanced by significantly shifting from
full-time to part-time faculty and by cutting administrative
staff.

The second step involved locating the financial resources needed
to restructure Bethany's debt. The Board of Trustees and I
explored the possibility of issuing bonds against the seminary's
property. Though this was possible, we discovered a bond issue
would take a long time to implement and come with very expensive
underwriting fees and interest.

It was in that context that I, in October 1992, approached Wil
Nolen about the possibility of a mortgage loan from Brethren
Benefit Trust. Wil began to discuss with the BBT board and its
financial managers a loan that would be fiscally sound for BBT
and yet financially viable for Bethany. The details of the loan
were worked out by James Hotchkiss, BBT financial adviser, and
Thomas Karaba, Bethany counsel. The negotiations were completed
on April 27, 1993, and a $4,000,000 loan was made in May, 1993,
to be repaid by or before May, 1998.

This loan, secured by the seminary's Illinois property,
accomplished its purpose. Bethany relocated while developing a
sustainable financial future. At the same time, the seminary
implemented a new program for ministry education to serve Church
of the Brethren congregations and agencies. From Bethany's point
of view, this loan represents a remarkable partnership between
two Brethren agencies -- a loan that benefitted both Bethany and
Brethren Benefit Trust. Working together, we have strengthened
the ministry and supported the mission of the whole of the Church
of the Brethren.

As president of Bethany, I want to thank Wil Nolen and the BBT
board for its investment in the ministerial leadership of the
Church of the Brethren. Although the loan was a prudent financial
investment, I recognize that Wil Nolen weathered criticism from
some that one Brethren agency should not "do business" with
another.

Now, through the remarkable work of Dennis Stine, president of
The Shaw Company, and Thomas Karaba, Bethany's former Illinois
campus has been sold to Fountain Square of Lombard. The purchase
price, besides retiring Bethany's loan and interest to BBT, has
paid the taxes due on the property and Bethany's long-standing,
substantial loan from its own endowment. Subsequent income from
Bethany's investment in Fountain Square will go entirely to the
seminary's endowment, thus helping to strengthen Bethany's
financial future for tomorrow's educational mission. 

Bethany's financial future will always depend on the generous
stewardship of the congregations and individuals of the Church of
the Brethren. Indeed, 56% of Bethany's budget is financed by the
annual gifts of Brethren. Nevertheless, it is wonderful that now,
"debt free," we can get on with our mission -- "educating
witnesses of the Gospel of Jesus Christ for the cities and
communities of the world."

Wil Nolen -- 

Gene Roop sat in my office in late October 1992, telling me about
the Bethany Theological Seminary's hoped-for bond issue it was
negotiating with a well-known East Coast bond underwriter. This
effort to raise the capital needed to build a new seminary was
based on the assumption that many small investors would buy out
the offering of $4 million plus interest and that a marketing
program would generate enough investors to complete the necessary
financing within a year. But there was uncertainty in his face as
well as his words. What if the underwriter thought the risk was
too high and raised the interest rate and added unreasonable
fees? Would the Brethren market of mostly small investors be
sufficient to complete the subscription? What would be the cost
to market and administer bond holder accounts?

Gene and the seminary board were looking for a better way. Would
BBT be interested in this project, not as one of many bond
holders but as the financier of the whole project, he asked?

^From the beginning it was an intriguing idea. Bethany didn't have
the funds to build a new facility in Richmond, Ind., but it had
collateral in the form of 51 acres of prime real estate at its
former Oak Brook, Ill., campus. BBT was looking for fixed
investments that would help guarantee the eight-percent-interest
assumption built into all pension benefits, but its investment
guidelines prevented it from investing in unrated bonds or notes.
Moreover, the guidelines made no provision for investing in
Church of the Brethren agencies. But the possibility of
developing an investment partnership that would benefit both BBT
and Bethany was attractive and lingered in our minds after that
first meeting.

BBT staff began the many tasks of due diligence that would be
required as fiduciary of pension funds from which a loan, if any,
would be made. But initial conversations with BBT board
leadership, investment managers and attorney were not
encouraging. How would we be assured of the value of the
collateral? What municipality would annex the property? Would
zoning prohibit commercial development? What about flood plain
management and traffic concerns? Would the community support the
change from a quiet seminary campus to another congested retail
center? All of these concerns could have a direct impact on the
land's value and greatly weaken the acreage as viable collateral.

The BBT team decided to get direction from the board before
committing the time and expense necessary to complete the study
the board would require before final action could be taken. The
initial board consideration took place in November 1992, when it
met at The Brethren's Home in Greenville, Ohio. The board
discussed the importance of the seminary to the denomination, its
sources of funds, the type and duration of a possible loan,
property appraisal, conflict of interests, and the precedent
problem of how to address similar requests in the future. A
motion to revise the guidelines to allow this kind of investment
was not accepted, effectively ending the board's official
consideration of this matter.

At dinner that evening and breakfast the next morning, however,
it was clear that some on the board were rethinking their
decision. The entire board and staff adjourned to Oakland Church
of the Brethren for worship on Sunday morning. On the drive to
the church, one board member decided to confer with the board
chair about the possibility of convening the board after the
worship service to reconsider the Bethany issue. As the group
assembled for church, these discussions were already underway.
Immediately following the church service the board reconvened in
the pastor's study. After almost an hour of additional
discussion, the board authorized staff to conduct a thorough
study and to bring recommendations, if any, to the board
resulting from that study.

The BBT team decided to focus its work in three areas --
     * obtaining an up-to-date land appraisal detailing value for
          optional uses.
     * determining realtor projections of development options. 
     * considering changes in investment guidelines to permit
          this type of investment. 

A guideline was written that would permit loans to Church of the
Brethren agencies provided they had collateral equal to at least
200 percent of the loans, interest and fees, which could be
converted to cash without severely impairing the ministry and
mission of the agency. The appraisal of Bethany's land authorized
by BBT provided convincing evidence that its value exceeded the
requirements of the new guideline. Moreover, the realtor engaged
to sell the property already had a list of potential buyers who
had expressed interest in the land.

In a conference call in December 1992, the board approved the new
investment guideline (which was later removed without making any
additional loans to Church of the Brethren agencies). By special
mail ballot in February, the board approved additional guidelines
addressing potential conflict of issue concerns related to a
person having membership on both boards. Although there continued
to be a great deal of concern by some board members, the board
finally took action in March 1993 to approve a loan of $4 million
with a fixed interest of eight percent and a balloon repayment in
five years. The first of three notes was issued in May 1993; fund
disbursement began on June 16.

The BBT decision came after in-depth study, sharp debate, four
meetings and eight votes, including amendments. As fiduciaries of
other people's assets, BBT needed to have the confidence that its
decisions would be in the best interest of those people. In this
action it found a way to fulfill that responsibility as well as
support the vital ministry of Bethany Seminary. Effective
collaboration yields mutual benefits and that's the way it was
with Brethren Benefit Trust and Bethany Theological Seminary,
1993-1998.

Newsline is produced by Nevin Dulabaum, manager of the General
Board's News Services. Newsline stories may be reprinted in
newsletters and other publications, including web sites, provided
that Newsline is cited as the source and the publication date is
included.

To receive Newsline by e-mail or fax, call 800 323-8039, ext.
263, or write CoBNews@AOL.Com. Newsline is archived with an index
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