Report of the Ad Hoc Committee on Capital Priorities, as submitted 2/3/25 (Activity Report)

THE COMMITTEE WAS ASKED to provide the Board a list of priorities for the use of funds currently held in the Mishkon Tephilo Capital Improvements Fund (at Morgan Stanley). The committee was informed that approximately $400,000 was deposited into this fund from proceeds of the sale of the Powerhouse property and the bequest of Larry Kasdon.

(So begins the report. Below the jump, the remainder is given verbatim.…)

The committee understands that a capital improvement is “intended to accomplish one or more of the following three goals: a betterment to the facility; a restoration of a major facility component…; or an adaptation of the facility to a new or different use” (Mishkon Policies, Section XII, as adopted 6/16/2021). So the many instances where maintenance and repair of our property are required were not part of our discussion.

Principles

Among the underlying principles that the committee considered in the development of priorities, two were singled out as most critical:

1. Projects that will immediately and powerfully impact our ability to attract new members of our synagogue, retain current members, facilitate programs that support and drive membership, and generate revenue.
2. Projects necessary to maintain the integrity of the building envelope and the functioning of important systems.

Specific Projects (Priorities for the Sanctuary Building Only)

1.  Restrooms

The one clear consensus among committee members was the remodeling of the synagogue’s restrooms, particularly the two adjacent to the lobby. The remodeling should entail a complete redesign to render the bathrooms more functional, attractive, and ADA compliant, while also respecting the historically significant features of those spaces and integrating them with the lobby. Plumbing must also be replaced or upgraded as needed.

2.  Stained Glass Windows

Based on information provided to the committee by the Building & Grounds Committee, the frames of twelve stained-glass windows in the sanctuary require restoration, as well as the openable panels of five of those windows. Eliminating water intrusion through the window openings is an urgent matter, and the art glass itself is a valued asset.

3.  Elevator

There was a variety of opinions regarding the utility and feasibility of this project. All agreed, however, thatit would be the largest and most costly project under consideration. The Building & Grounds Committee recently received a “ballpark” estimate of $379,530 to $417,530.

4.  The Social Hall

The Social Hall should once again become an integral part of Mishkon’s life. In addition to cleaning, painting, and miscellaneous repairs (not considered capital improvements) that are underway, the hall needs new ventilation and heating.

5.  Kitchen

The committee believes that the improvements needed to render it more functional and efficient involve: (1) ventilation and (2) countertop surfaces. These limited expenditures can probably be handled by drawing upon the remaining insurance-settlement funds from the 2023 flood. Regardless, it remains on the list of our top five priorities.

The Need for Reserve Funds

The projects listed above relate mainly to the first of our two guiding principles. However the crucial importance of our second principle, to maintain the integrity of the building envelope and the functioning of important systems, must not be overlooked.

The Reserve Study Analysis received from the Building and Grounds Committee specifies a number of such projects that will need to be dealt with in the coming 18 months and that will entail substantial costs. Among them are new roof membranes for the sanctuary and school.

It is the recommendation of the committee that funds in the Capital Improvement Fund be set aside for these projects (estimated costs are included in the Reserve Study) as a well as a substantial amount for unanticipated contingencies.

Conclusion

While it is very exciting to contemplate capital improvements to our physical campus that will be attractive to potential new members, we need to keep our feet on the ground and see limitations as well as possibilities. Four hundred thousand dollars sounds like (and is) a large amount of money but in the world of capital improvement it does not go a long way, particularly when one considers the age and current condition of our property. Not only the elevator project, but any of the projects listed above (with the possible exception of the stained glass windows) are likely to entail costs into the hundreds of thousands of dollars. Where will these funds come from?

It is the recommendation of the committee, therefore, that funds currently held in the Capital Improvements Fund be leveraged to gain matching donations rather than used in full for non-essential projects. The lion’s share of funds for such projects should be acquired through an intense and sustained fund-raising drive that is based on the priorities listed. Adequate funds from the Capital Improvements Fund—as determined by the relevant committees—should be retained as reserve for projects to maintain the integrity of the building envelope and the functioning of important systems.