On January 28, 2022 CCAR’s membership will vote on an increase to the total construction project expense for CCAR's new Education and Events Center.
Below are Frequently Asked Questions (FAQs) regarding the construction project and the increase in expense.
Upon beginning the project with the architect and construction team, it was determined that to meet the needs of CCAR’s current and growing membership, the original building estimate size was not adequate. Therefore, the building size increased by about 30%, which included a larger meeting space and classrooms, support offices, additional bathrooms, and a catering kitchen. Additionally, as in all things related to construction, the cost of the building itself also increased. The original approved budget included $4 million for construction and related costs, with an additional $350,000 for Furniture, Fixtures, and Equipment (FF&E). This increase takes into account the increase in construction related costs, but also includes FF&E for about $450,000.
Yes, many efforts were made to not increase the cost. CCAR’s Building Committee and staff have worked tirelessly for many months designing and redesigning all floorplans and configurations. Ultimately, the final floorplan that will fulfill the needs of CCAR correlated to a 30% increase in size.
Yes, CCAR does have the funds in its investment accounts to pay the difference. CCAR’s Board of Directors, along with staff, have been great stewards of the membership’s dues, including appropriating monies towards the growing membership and future needs of CCAR. These investment accounts have been diligently managed by the CCAR Investment Committee, Budget and Finance Committee, Board of Directors, and staff and are managed by a third-party financial entity.
No, the cost difference will not deplete CCAR’s investment account funds. CCAR’s policy is to always have at least 12 months’ worth of operating expenses in investment funds, should economic factors arise that it would need to be utilized. Currently, CCAR has enough funds to fulfill that policy and attribute money towards the building construction cost. In essence, CCAR will be able to pay for the increase in construction costs without effecting its budget, operating expenses, future operating expenses, and with minimal impact to the investment funds. CCAR is in a healthy budgetary position.
No, your membership dues will not increase as a result of the building construction.
With the increasing costs of construction, it is not in CCAR’s best interest to wait until the needed funds are raised. In addition, the longer we wait to start the project, the longer it will be before we have a building that can suit the needs of CCAR’s growing membership. However, CCAR will initiate a capital campaign once construction has started, with the intention of replenishing the funds from the investment accounts that are utilized for the construction.
The members of CCAR’s Building Committee, Budget and Finance Committee, Board of Directors, and staff have all reviewed the design, floorplan, site plan, renderings, and more and are excited to present the building to you. The building includes a large banquet room that can easily transition into four classrooms and training areas. This expansive use of space will allow multiple meetings, classes, and events to happen simultaneously. In addition, the building will also feature a lounge area for agents to relax, work, meet with clients, and network. There will also be a REALTOR® Store, state-of-the-art catering kitchen, and a coffee bar. Lastly, CCAR’s Professional Development Department’s and the Events Department’s staff offices will be housed in the new building.
Upon receiving direction from CCAR’s membership, the construction company will begin the final processes to prepare for construction. Currently, they are estimating a 12-month build time foreseeing no future barriers in regard to building supply inventory or delays.
CCAR’s Building Committee and staff have worked diligently to determine what the cost differences are between the original building estimate and now, and have determined that the main contributing factor is the needed increase in building size. The construction company and CCAR have also built in a significant buffer to hedge against future cost increases. CCAR’s goal is to not utilize the full amount that is being requested in the budget increase, but at the same time, we don’t want to come back to membership to ask for another increase in cost. After several reviews of the construction costs and budget by CCAR leadership and third-party entities, it has been determined that the increase in cost is more than adequate to meet the final construction number.
Originally, CCAR’s Building Committee asked the membership to vote on the building construction cost of $4 million, with an FF&E budget of about $300,000. Meaning, that the building was one cost, while the FF&E was another cost that was not included in the construction cost. This estimated increase in cost includes the FF&E at $450,000. Some of the FF&E items that increased the cost include accordion walls to separate the banquet room allowing for four separate meeting areas, audio and visual needs, kitchen equipment, lounge area furniture, and more.
On July 22, 2021 CCAR’s membership voted to approve the construction of a new Education and Events Center.
CCAR has seen tremendous growth over the past 10 years, and we’re excited to have the opportunity to build an Education and Events Center that will allow us to continue to provide, you, our member, with the quality programs and services that you deserve.
Construction Project FAQs
We moved into our current headquarters building in 1996. Since that time, CCAR's membership has grown to 10,200 members (as of 07/21/21). In order to continue to provide outstanding service to our members (you), we need additional facilities for education classes, meetings, events, and staff.
CCAR's new Education and Events Center will be built on the land behind our existing headquarters building located at 6821 Coit Road in Plano.
CCAR will continue to use the current headquarters building for staff offices, as well as meeting/classroom space, and the REALTOR® store. We will continue to process new members in the current headquarters building as well.
No. CCAR already owns the land and its current headquarters building outright (no mortgage). CCAR is very financially sound. Additionally, CCAR has not had an increase in its local dues for more than 20 years.
The building is expected to be completed by Fall/Winter 2022.
CCAR's current headquarters building is 8,200 square feet.
Over the years, CCAR's Building Committee members attempted to locate and purchase land and/or an existing building further north. We were never able to financially move forward.
Our volunteer leaders hold their fiduciary duty at the highest level. They have been very budget conscious over the years and have always kept the members (and their dues) in mind. We did not want to overcommit to a purchase of this magnitude.
Yes. Once the architectural rendering is complete, it will be shown to our members and likely highlighted during a capital campaign.
Our members' work and home addresses continue to be centralized in the Plano and the southeast area of Collin County. We utilize our satellite locations to reach our membership in less concentrated areas. In the future, we will continue to add additional satellite locations as needed.
Survey results from our membership conclude that our members want to meet in person. The majority of our members have Zoom fatigue and feel that an in-person learning environment is more in line with the services they expect from their membership dues.
CCAR will obtain mortgage financing to pay for the new building. The money that will be used for the down payment is from CCAR's reserves, coupled with its ownership interest in the land.
CCAR has never been financially healthier. The Budget and Finance Committee has calculated that CCAR's budget can healthily absorb a mortgage that includes build costs to completion of approximately $19,000 per month.
CCAR's new Education and Events Center will serve the needs of our members today and in the future. The Association regularly hosts events and education opportunities that have hundreds of members attend. The building is needed to maintain the level of service our Association offers, and to meet the needs of our ever-growing membership.