Straight Talk…! From Chuck Cooper, Christian Writer/Blogger rvchuck@msn.com July 1, 2015

 Straight Talk…!

  From Chuck Cooper, Christian Writer/Blogger                                      

    rvchuck@msn.com                                                                                         July 1, 2015

LifeWay’s Glorieta Baptist Conference Center

Forces Unfair Theft of Residents’ Homes

(Part One)

Author’s Note:  it is NOT my intent in writing this investigative blog to damage or demean the reputations of either LifeWay Christian Resources or the Southern Baptist Convention by exposing what I believe was “ungodly” treatment and financial extortion of former property owners at Glorieta Conference Center in Glorieta, NM.

             My ONLY intent is to inform Southern Baptists so they will voluntarily apply enough pressure on LifeWay and SBC executives and trustees to correct the emotional and financial damage their decisions have forced on loyal, trusting homeowners and churches.  I pray those decision makers will, after the fact, take the high moral and scriptural ground and fairly compensate all leaseholders for the houses and buildings they built, purchased or improved.

             I have no dog in this hunt other than telling the stories of how these fellow Christians have been treated. I leave any consequences of my efforts up to the readers.

                                                                                                                        -- Chuck Cooper

         Their stories are true; they are real people; their stories are personal and their accounts are heart-breaking. The treatment they received from their beloved Southern Baptist denomination is disappointing, infuriating, ungodly and sinful, but spiritually enlightening for some. 

........... All are among the some 65 former home and building owners (about half SBC Churches) who built or purchased existing units on leased land owned by Glorieta Baptist Conference Center in Glorieta, NM.

            All believe they have been financially swindled and defrauded by LifeWay Christian Resources, an entity of the Southern Baptist Convention headquartered in Nashville, TN. (The Southern Baptist Convention is the world’s largest Baptist denomination and the largest Protestant body in the USA with nearly 16 million members as of 2012.)

            “Swindled” and “defrauded” are strong words; you decide if they are appropriate when you learn the details of what LifeWay decision makers did to its loyal, trusting Christian homeowners.

            What follows has been collected from the homeowners, court documents, letters from Lifeway and Glorieta 2.0, as well as from published articles in Baptist publications.

            The BACKSTORY: (Here’s enough of the “background” to acquaint you with what LifeWay/Glorieta forced on its trusting homeowners.)

            Since 1952, when the Glorieta encampment was established by the Southern Baptist Sunday School Board (now Lifeway Christian Resources, Inc.), Southern Baptist individuals and churches were strongly encouraged to invest in the ministry by leasing building lots on which to build and maintain personal residences, homes and lodges.      

            During the next 63 years, the Glorieta ministry developed many innovative and exciting Gospel-based programs and events for folks of all ages. More than 200,000 attendees claim Glorieta as their spiritual home where they developed a personal relationship with Jesus Christ.

             Beginning in 2011, LifeWay executives began seeking possible buyers for the sale of the 2,400-acre Glorieta Conference Center.  Citing changes in church practices, rising costs and a volatile economy, LifeWay offered to sell the 2,400-acre facility to other SBC entities and Baptist state conventions. Because Lifeway would not indemnify any of their sister entity buyers, none were interested. 

          The SALE: But, on June 13, 2013, Marty Smith, LifeWay communication director, published the lead article in LifeWay’s online newsletter “Facts and Trends” announcing that LifeWay trustees had approved the sale of Glorieta to a group of Texas-based Christian camping investors named “Glorieta 2.0” for one dollar.  You read that correctly, the sale was for $1.00!

            In his announcement, Mr. Smith reported that Jerry Rhyne, LifeWay vice president and chief financial officer, previously told homeowners that “one of the most important requirements for any sale of Glorieta was that the new owners would provide options that were fair, reasonable and prudent.” Several leaseholders have verified that Mr. Rhyne made similar statements to them.

            Based on the options offered by Glorieta 2.0 below, it is evident that Mr. Rhyne’s promises were empty ones and that his definitions of “fair, reasonable and prudent” by Glorieta 2.0 is a far cry from the definitions of leaseholders. 

          The OFFERS: Shortly after the announcement, an email to leaseholders from Anthony Scott, the on-site representative of Glorieta 2.0, advised that all leases would expire on Sept. 30, 2013 and presented the following options: 

·        Donate your property outright.

·        Lease the land for 12 years and then donate your home.

·        Accept $40,000 for your home.

            Infuriated at what they considered to be totally unfair and “ungodly” offers, some 100 local Glorieta campus leaseholders met for nearly four hours on Tuesday, July 9, 2013 with Scott; Hal Hill, then director of Glorieta Conference Center; Jerry Rhyne, Lifeway CFO; Art Sneed; and David Weekley, Director of Glorieta 2.0. Ed Stetzer, President of LifeWay Research, a division of LifeWay, moderated the discussion.         

            During this meeting, Glorieta home and lodge owners expressed their concerns about the offers and asked why the sales agreement did not protect their financial investments in Glorieta. David Weekley expressed his surprise upon arriving on Glorieta Campus that the $2.5 million dollars set aside in the Glorieta 2.0 Business Plan to purchase leaseholder homes and lodges was inadequate. Mr. Weekley said, "The real value for the 65 homes and lodges was $12 million,” but his business plan was firm in offering only $2.5 million.  Why?

            Three days later, Glorieta 2.0 offered the following “Revised, Amended and Restated” options in an unsigned letter on Glorieta 2.0 letterhead.

          •   OPTION 1: A one-time buyout for $30 per square foot, with a minimum $40,000 and maximum $100,000 payment, regardless of the appraised value. If accepted, must vacate premises by Dec. 1, 2013. (Does it seem strange, even deceptive, that this option is based on square footage   rather than on a percentage of appraised value? Customarily, construction costs are based upon square footage and selling price is based upon appraised value.

            •   OPTION 2: A new 12-year lease at $1,800 per year plus utilities with annual cost of living adjustments. At the end of the lease, the building will go to Glorieta 2.0 as a donation. If the leaseholder opts out of lease before it expires in 2025, they would forfeit a pro-rated amount of the Option 1 offer.

             •   OPTION 3: Donate the building to Glorieta 2.0 if you want a tax deduction but advise Glorieta 2.0 by Sept. 1, 2013.

Added to the re-stated options was a provision that “truly permanent residents” would be allowed to continue leasing at $1,800 per year after the 12 years and can stay “as long as you want and are physically able to be a permanent resident there.”  An additional caveat states that if a homeowner under this agreement is deemed physically unable to function, their home would be automatically donated without compensation.  How sad.

  Bottom line for leaseholders from Glorieta 2.0: “…we are trying to go the extra mile to make this work…in order for us to be good stewards this is as far as we can go…this is a big stretch for us.   ---  from Glorieta 2.0 “Dear Glorieta Friend” letter

  Bottom line for leaseholders from Glorieta: Good luck in getting a fair compensation.  “I would have never signed the original lease.” --- Jerry Rhyne’s reply when a homeowner asked him in 2011 how many employees owned homes at Glorieta.

            In spite of a provision in the leases for the parties to seek “mediation” in case of differences, officials from both LifeWay and Glorieta refused requests from leaseholders to do so.

            The provision says: “Any dispute, controversy or claim arising under, out of, in connection with or in relation to this Agreement, or the breach, termination, validity or enforceability of any provision of this Agreement, shall be settled by mediation and, if necessary, legally binding arbitration in accordance with the Rules of Procedure for Christian Conciliation of the Institute for Christian Conciliation.”

            The LAWSUIT: Failing further successful negotiations with LifeWay, a majority of homeowners officially appointed homeowner Kirk Tompkins as their “Attorney General” after the lawsuit was filed against LifeWay seeking a jury trial.

            The suit was filed on Sept. 4, 2013 in the U.S District Court of New Mexico but was later dismissed after 20 months, without prejudice, for lack of standing citing that Tompkins could not bring the lawsuit because he was not a member of the ecclesiastical group that included Lifeway or Southern Baptist Convention.

            The plaintiffs have since appealed that ruling to the United States Court of Appeals for the Tenth Circuit. In fact, Tompkins filed his brief June 25, 2015. He said this is the same Appellate Court that reversed the lower court decision in the Hobby Lobby lawsuit, but he says he doesn’t expect a ruling any time soon. A jury trial decision will provide the discovery for additional Lifeway records, minutes of meetings, and contracts important to disclosing the truths presented in the lawsuit.

            All former homeowners except Tompkins, Buck Cheshire, Pastor Glen Strock, and Amarillo First Baptist have accepted the buyout offered by Glorieta 2.0 and vacated their homes and lodges. A majority of these homes and lodges are now occupied by Glorieta 2.0 staff as part of their compensation.

The $1 SALE?: The “million dollar” questions (pun intended) remain.

  1. Why did LifeWay agree to sell the 2,400-acre facility for the “giveaway”                   price of a mere $1.00?

            2. Why did LifeWay negotiators approve a sales agreement with Glorieta                  2.0 that   did not include Mr. Rhyne’s promise to protect its homeowners with                  options that were fair, reasonable and prudent?

 

            LifeWay President Thom Rainer addressed the $1.00 sale in his report to church messengers attending the 2014 SBC annual meeting. According to an Associated Baptist Press report published in the Baptist Standard on June 13, 2014, Dr. Ranier said: “We could have sold Glorieta for several million dollars, according to the appraisal, but it would have been sold to a commercial entity, and we don’t know what would have been at the place called Glorieta.”

            He later noted: “I would rather sell Glorieta and see the gospel continue than to see a casino go on what is this sacred ground.” Since Glorieta sits on off-reservation land, the building of a casino there is impossible without jumping through very complicated state and federal hoops.

             Dr. Rainer’s “casino” comment is nothing less than an empty attempt to justify not selling to a major corporation for “millions”.

            Also according the Baptist Standard article, a Glorieta homeowner and retired pastor/missionary, quizzed Dr. Ranier point blank: “So I’m asking you, Dr. Rainer, would you provide a fair market value to homeowners and churches that were invested in the campus of Glorieta?” Dr. Ranier expressed sympathy for the homeowners, but provided no answer to the question.

            In the interest of fairness, I attempted twice to get comments and answers from Dr. Ranier to use here – once by e-mail and once by registered letter.  Neither request has received a response at this time.

            The RESOLUTION: It appears that only intercession by Holy Spirit or a court of law or both will ever provide a resolution to this continuing issue which continues to fester in the minds and hearts of the offended.

            Unless, of course, you Baptist readers will share and discuss this report with your pastors who, in turn, will apply enough pressure on LifeWay and SBC leaders to voluntarily correct this wrong.

            Or, perhaps your pastor, like one I know, will cancel his church’s LifeWay account until this issue is fairly resolved. When orders for materials from LifeWay decline enough, the bottom line will determine the LifeWay response.

            Or, as Mr. Tompkins asked me rhetorically: “How long would it take LifeWay to change its policy and pay fair value to Glorieta homeowners if one well known Southern Baptist executive or pastor complained publicly?”

            Perhaps you, personally, could help generate an answer to that question! 

 Stay tuned!

There’s more….a whole lot more… more about this issue that space doesn’t allow revealing here.  Part Two is coming soon.  It will reveal the heart-wrenching, highly emotional stories from several former homeowners, including the incredible financial devastation they are enduring.