Living Water Church, offered to an Illinois group for $3-million, may be worth much more, according to a recent appraisal.
By JEFF TESTERMAN
Published November 22, 2003
TAMPA - In a bankruptcy hearing two weeks ago, Living Water Church board chairman Melvin Myer provided the first glimpse of a reorganization plan whose centerpiece was selling the church property to a wealthy Illinois religious group for $3-million.
Testifying about the value of the church, Myer said there was just one appraisal of the 16-acre property on Interstate 4: a 1998 report that put the value of the church at $3.5-million.
But in discussions with current and former church officials, the St. Petersburg Times has learned there was a more recent, higher appraisal, a report completed last year that says the Living Water property is worth $4.5-million. That's one-third higher than the price tag Myer has put on the church.
The discovery of the new appraisal suggests Living Water officials are quietly seeking to sell their property at a huge discount to the Family Harvest Church - a contention of one lawyer involved in a dispute over the church's assets. Family Harvest is a nondenominational Tinley Park, Ill., organization run by Pastor Robert V. Thompson that took over Living Water's operations this summer without any written agreement.
Pressed this week about the existence of the higher appraisal, Myer admitted he had failed to disclose it at the Nov. 7 bankruptcy meeting of Living Water creditors.
"I am not trying to cover up anything," said Myer, acknowledging he had a copy of the $4.5-million appraisal. "It's an honest mistake."
Myer said Thursday he was forwarding a copy of the higher appraisal to Buddy Ford, a Tampa attorney representing the church in its Chapter 11 bankruptcy proceedings, with the expectation that Ford would disclose the second appraisal to the bankruptcy court.
Dade City attorney Jack Hoogewind has said that the Living Water attempt to sell the church at a deep discount is nothing more than a veiled effort to deprive Living Water co-founders Ronald and Belinda Clark of any of the sale proceeds. Hoogewind represents Mrs. Clark in a divorce so rancorous it is blamed for the defection of three-quarters of the Living Water membership.
In bankruptcy filings, Ronald Clark claims the church owes him $120,000 in wages and retirement. Mrs. Clark claims she is owed $300,000. In divorce papers, she maintains her husband operated the church as his alter ego, and thus, the church ought to be considered a marital asset whose value she should share.
Myer disagrees. He said the Clarks have no valid claim against the church. He also said his parishioners will be best served by a $3-million sale to Thompson's Family Harvest Church.
"Robb Thompson has reached out to us," said Myer. "He is genuine. He wants to help.
"We have the right to give the church away, if we want."
Family Harvest, with assets of $9.67-million, took over the Living Water operations and Web site in mid summer, making a $20,000 mortgage payment for the Tampa church, providing pastoral services and paying for another $30,000 worth of services, Myer said. Now Thompson seeks to become owner for $3-million.
"Three million dollars seems like a pretty good deal for Robb Thompson on a $4.5-million property," said Randy White, pastor of the 20,000-member Without Walls International Church in Tampa.
White said he was told about the $4.5-million appraisal earlier this year when his church entered into negotiations to buy the Living Water property.
White said he sat down with Myer and then-Pastor Ronald Clark, but was informed the asking price was about $6-million.
White said he abandoned talks to avoid interfering in the difficulties sparked by the Clarks' divorce.
"We decided to walk away," White said. "We thought we better stay out of it."
With membership falling from 1,244 to 250 because of the Clarks' divorce, Living Water sought bankruptcy protection on Oct. 1, listing just $60 in its checking account.
Myer said members and collections are on the upswing, but less than 150 people were in attendance two Sundays ago.
Ronald Clark filed for divorce from his wife in March, later accusing her of adultery, pornographic interests and masterminding the theft of church mail.
Mrs. Clark countered with a slander suit, a domestic violence injunction against her husband and claims that he had a secret plan to sell the church and have Myer funnel him the sale proceeds at an overseas mission.
Ronald Clark resigned as Living Water pastor in June and immediately took a position with the Family Harvest Church. He says he is assigned to promote a mission in the Philippines.
White, the Without Walls pastor, said he is now considering a second look at the church property.
Living Water, while expressing a priority wish to sell to Family Harvest, also is seeking bankruptcy court permission to open bidding to the public. If another party outbids Family Harvest, Thompson's church would collect a $75,000 "breakup fee," according to bankruptcy documents.
