TO: His Branches Board of Directors 5/3/01

FROM: Karen A. Webb

SUBJECT: Minutes of the May 3, 2001 His Branches Board of Directors Meeting

Directors Present: J. Bowman, G. Fadner, A. Geyer, W. Morehouse, K. Webb, J. Woods.

Directors Absent: D. Wilson, E. Young.

Guest: S. Morehouse.

The meeting opened with prayer. Motion by Glenn Fadner to accept previous minutes as submitted. Seconded by Ann Geyer, approved unanimously.

Faithful and True Outreach:

John Woods shared that the meeting with deacons and others at Aenon Baptist Church went very well. Pastor James Cherry is extremely interested also, and a Faithful and True presentation at an upcoming men's retreat at the church is being discussed. The church is expected to pick up this regular ministry there in the near future. This is a very hopeful sign for the expansion of the ministry into the local Christian community. New Life Fellowship and Zion Hill Missionary Baptist Church are also being approached. John requested prayer for the ministry and will update us at the next meeting.

Treasurer's Report:

Attached. About $1700 is in the bank. We are short roughly $1,000 to pay immediate liabilities; it was decided that the check to Jerald Rotenberg dated 11/15/00 (never sent) should be voided and the funds used to cover immediate bills. Dr. Morehouse will write a letter to Jerald Rotenberg within the next two weeks or so about the $3175 outstanding balance due; an additional $3630 is still owed to GFM and will be paid as funds are available. Ann suggested that to pay those two we might want to put off renovations; however, if we are to get viable new tenants we need to make the repairs which St. Mary's tenancy necessitates. St. Mary's, Dr. Morehouse said, is stalling on paying for these repairs; he will continue to pursue getting them to pay.

About $105,000 to $110,000 is needed in the remortgage, which includes the amount needed to pay off back taxes. The building is worth more than $200K, so getting a remortgage shouldn't be a problem, even listing ourselves (with GFM) as the owner/sole-occupant. His Branches will apply to both HSBC and Canandaigua National for the remortgaging in order to get lower payments so that we can continue to offer sheltering space to fledgling Christian groups, as has been our goal and practice in the past. Ann Geyer and Dr. Morehouse will work together to get the applications in within the next few weeks. It was decided that we would apply as an "owner-occupant" since at this moment, we have no tenants other than GFM.

Selective Insurance, which had carried our business owner's insurance, has decided to drop us after visiting our website and, without consulting us, concluding from the missionary reports that we had international "holdings" and therefore that we were too high-risk, Karen Webb reported. She and a Schultz Group agent tried to explain our missionaries' status but they would not change their minds; Schultz Group found that Preferred Mutual Insurance would insure us in exactly the same way for $400 less per year ($1200) so we completed the switch.

Don Lewis has received the letter saying we need to discontinue his services and will be finishing up this month.

New Tenant situation:

Dr. Morehouse explained before the meeting that Center for Youth Services has chosen not to pursue tenancy with us. Initially very excited about renting ("This is God's provision for us," etc.) and having scheduled a meeting with His Branches' board, their statements in their extremely sudden backout make it clear that given their funding sources and current activities, they would have a problem being affiliated with a religiously based landlord, especially one with our openly pro-life commitment.

Agape Counseling is not interested in renting; Youth for Christ used to be a tenant and Dr. Morehouse intends to reach out to them. GVSCDA is interested in becoming a tenant (see below).

Genesee Valley Sickle Cell Disease Association (GVSCDA):

Dr. Bowman reported that GVSCDA has received a $20K grant for one year, and it is possible the grant could be extended for two or three years.

GVSCDA would like to have office space at 342 Arnett Blvd. They can commit to tenancy with his Branches for at least one year and would like to sign on for two or three, if possible, Dr. Bowman said. He has talked with Dedrick Blue at the Assocation; Dr. Bowman will go back to the Association's committee and Dr. Fitzgerald Kerr to try to get a decision within the next week or so, and get back to us. It's possible GVSCDA may move in as early as 6/1/01. Ann Geyer mentioned this would be handled with no lease--GVSCDA would be another His Branches fund similar to how the Lebanon fund is handled now--but this would affect our audit reports. Ann, Dr. Bowman and GVSCDA's treasurer will be in contact to figure a straightforward way to handle this; in any case, there would be a written agreement between GVSCDA and His Branches. Dr. Bowman received a draft of a lease to give to Dr. Kerr.

There will be a presentation by Dr. John Horan this weekend at Jefferson Avenue Seventh-Day Adventists Church (flyer attached). GVSCDA continues to have lots of irons in the fire, Dr. Bowman reported.

Grace Family Medicine:

Clara Chang is due to join Grace Family Medicine at the end of the summer. Strong is not able to help with startup aid for her. Dr. Morehouse is discussing with Stewart Putnam at Unity Health Systems possible help for her. We need firm backup help for her to be financially able to come and work with GFM. Relationship with Unity has become difficult in the last couple of weeks; we assume this is due to the attempt to resolve the issue of damage done to the suites during HealthReach's tenancy, and who will pay for repairs. Prayer and effort is needed to resolve both of these situations.

We found out from the IRS that no further FUTA tax needs to be paid since we are a tax exempt organization. Refund application has already been submitted for year 2000. Liquidating Chapel Guidance Center will be brought up at the next meeting. Karen Webb, since she is an employee of His Branches, prefers to switch to non-voting status and this was approved by the Board.

The meeting was adjourned at about 9:30 AM with prayer.

The next meeting will be Tuesday, June 5, 2001 at 7:30 AM at 374 Wellington Ave.

Respectfully submitted,

Karen A. Webb