The construction of new offices for the Southeastern Pennsylvania Synod of the Evangelical Lutheran church in America (ELCA) on the Lutheran Theological Seminary at Philadelphia (LTSP) campus is temporarily on hold due to the recent economic downturn.  The Seminary and the Synod are partners in a project to renovate the Schaeffer-Ashmead chapel, build out space on the ground level to serve as synod offices, and construct a new plaza opening to the Mt.  Airy community.

The LTSP Board of trustees decided last month after consultation with the synod to delay the project for one year due to the current economic conditions, according to Bishop Claire Burkat.  During the year the financial feasibility will be reviewed regularly, to reassess restarting construction.

In the meantime, the seminary and synod are negotiating rent-free office space in another campus building, the Wiedemann Center, until the project can be resumed.   The move into this temporary space is projected for early January.

“This is a temporary delay, and we intend to resume the renovation project as soon as possible,” Bishop Burkat said.  “The original plan to move the synod office to the seminary campus is an important project that will expand and enhance our Lutheran witness in this Greater Philadelphia region.   The benefits of having the seminary, synod and ELCA Region 7 Offices together in one location, in a visible and accessible Lutheran Center, will serve us well for decades to come.”

Dr. Philip Krey, LTSP president, is optimistic.  “While both the Synod and the Seminary raise funds to complete the project, LTSP is providing prime space in a state-of-the-art building,” Krey said.  “We are excited by the new ecology and synergy that the Synod’s presence on our campus will offer.”

The project is anticipated to cost $4.2 million when completed, of which the synod is responsible for $1.5 million.   Of the total, about $1.6million has been spent by both institutions on architectural plans, site work for the plaza, parking for the synod, and demolition of the interior space the synod will use.  The City of Philadelphia has contributed $400,000 toward the construction of the community plaza.  The seminary and synod will continue to monitor economic conditions, and plan to resume construction as soon as possible.   Currently, a synod-wide fundraising campaign is also underway to help with the Synod’s portion of this effort.  The Seminary has also been raising money for its share from donors across Region 7 of the ELCA.

Frequently Asked Questions About the Synod Office Move

Why is the project on hold?

The decision to postpone was made by the LTSP board in reaction to economic conditions.  The market downturn has impacted the value of the seminary’s endowment, and endowment earnings provide a portion of the institution’s operating revenue.  “Educational institutions across the nation are making cutbacks due to economic forces beyond their control,” said President Phillip Krey.  LTSP Trustees decided to postpone spending more on this project because a good portion of the seminary’s share of the cost has been pledged and is not yet in hand. LTSP could not borrow from the endowment and have enough funds available for normal operations.


Is the Synod still able to afford this project? Is this good stewardship in uncertain times?

Yes.  The Synod’s portion is being funded from the Synod’s invested funds, not from operating funds.  Some of the funds were advanced for the project prior to the significant market losses of the last month, and would have been depleted had they remained in reserve.   “We are grateful for the generous outpouring of gifts within the Synod that have been directed toward a fund for the Move to the Seminary.” Bishop Burkat said.

This project is a smart fiscal move for the Synod because it provides 17 years without rental payments and offers the Synod use of many campus locations for meetings and programs.  Starting in 2009, the Synod will begin repaying to our reserves annual payments that will be reinvested, and are projected to replace all of the initial outlay in 20 years, according to Treasurer Dick Reimet. 

The move will provide the Synod with better office space, which is publicly accessible, conveniently located, and will create synergy with the Seminary community, and with Lutheran, ecumenical and interfaith partners.  “While the Synod will forego some earnings it would have realized if the funds remained in investments, it is calculated that the cost to the Synod over the life of the lease, would be much less than renting similar space in the City of Philadelphia.” Reimet said.


Why is this Synod move necessary?

Locating the Synod at the Seminary campus places the office in a highly visible and public space, and increases access to the office via major highways, public transportation, and ADA compliance.  In addition, having the synod, the seminary, and Region 7 Office together creates a Lutheran Center to enhance our public witness.   A number of Synod events and meetings are already held at the Seminary in part because the current offices do not have suitable large group spaces, and because it is inconvenient for meetings with ecumenical and public groups.  Further, having the seminary, Region 7 offices, and the synod at the same location will make this Lutheran center a more attractive destination, as rostered and lay leaders can do business with several organizations in one trip.  Being headquartered in Philadelphia, as most of the region’s major religious organizations are, increases the visibility and impact of the Synod. Our Synod is nearing the end of a year-long strategic planning process that will shape our mission and ministry for years to come.  The opportunity to move to the seminary campus arose two years ago, well before the current financial situation.  In the spring of 2009, the mission strategy will be unveiled and it will become clear that this move is only one part of a much larger plan.


What will be the impact on Grace Church, where they Synod is currently housed?

When the synod developed plans in 2007 to move to the seminary, Grace was informed and began searching for a new tenant.  The synod has made improvements to the current office to make it more attractive to tenants.  The synod will pay rental payments to Grace through March 2009 if Grace does not locate a tenant before then.  The Grace Church leadership is exploring renting to local community organizations and agencies to better serve the neighborhood. 


Why move to temporary quarters? Why not stay in Norristown until the new office is ready?

Our lease has run out.   We want to be on the seminary campus early in 2009 to begin our new relationship and to be in a position to see the progress and encourage the resumption of the construction project.  We also need more up-to-date office space to effectively do day-to-day church business.  The seminary has offered free rent during the temporary stay.   We will save $1800 per month in rent that we now pay to Grace church, and we will pay utilities at the Seminary, as we do at Grace.


How can I help facilitate the move?

We need your continuing support through prayer, contributions and making pledges as you are able.  Come and visit the seminary campus to see the wonderful new space, open to the neighborhood, and look for photos and updates on MinistryLink.