Pecometh River Retreat

Frequently Asked Questions

The Board of Stewards will propose three things:

• Authorization to proceed with the development of an adult retreat center on the Pecometh property.
• Authorization to break ground on the project once two benchmarks are met. First, when 50% of the amount needed to be raised in a capital campaign for the construction cost has been pledged, e.g. if $1.25 million must be raised, then once $625,000 has been pledged. Second, when 20% of the amount to be raised in a capital campaign has been collected, e.g., using the previous example, then once $250,000 has been collected.
• Authorization to obtain "bridge" financing for the purposes of completing construction of the project. Such financing could be for a period of no more than five years and would be repaid through collection of capital campaign pledges.

Why do we need a retreat center?

The Peninsula Delaware Conference benefited from 40 years of God-inspired, life-changing retreat ministry at Drayton Retreat Center. However, the operational issues at Drayton forced the Board of Stewards for Camping & Retreat Ministries (BOS) to make a stewardship decision to sell Drayton. Specifically, the issues with Drayton were: the lack of hotel-style bedrooms; the lack of functional meeting space; and the high cost of operating an aging facility that was designed as a home, not as a commercial lodging/meeting facility.

The lack of affordable Christian retreat facilities on the Delmarva Peninsula is borne out by Drayton's turn away statistics from 2003 (statistics were not kept in 2004 because reservations are typically made 6-12 months in advance and Drayton was scheduled to close in early 2005). Sixty-three groups were "turned away" in 2003 because Drayton was already booked. Furthermore, groups that did stay at Drayton and indicated that they would find another facility in the interim period between the sale of Drayton and potential construction of a retreat center at Pecometh are now inquiring at Pecometh because they are unable to find other suitable facilities. They are willing to live with dorm-style facilities in the short-term in the hopes that hotel-style facilities will be available in the near future.

A consultation in 2002 by Kaleidoscope, a firm specializing in camp and retreat operations, determined that an adult retreat facility in the Peninsula Delaware Conference would, ideally, accommodate as many as four groups of 12-20 persons at any given time. This could be accomplished by a 48-bedroom facility, to be constructed in two phases.

Exactly what would be constructed?
Click here to view a floor plan

Phase I would include 24 hotel-style bedrooms (18 doubles, 6 triples), a 125-person dining room, kitchen, four meeting spaces accommodating up to 30 persons each and administrative offices. Phase II could be considered approximately five years later, based on usage, and would include an additional 24 bedrooms and a 125-person meeting space/chapel.

What would it cost?

A contract price has not been received at the time of this writing. However, the expectation is that Phase I would cost between $4.5-4.75 million. This is a turnkey price that includes design fees, site work, construction, furnishings, fixtures and equipment. A contract price will be available prior to the October adjourned session of annual conference.

Is that cost guaranteed?

The contract price to be provided by the Design/Build contractor, Roy Kirby and Sons, Inc. will be good for 60 days from the date that the price is provided. If a contract is signed within that 60-day period, then the cost of the project cannot exceed the contract price, absent any owner-initiated changes.

Where would it be located?
Click here to view the proposed Pecometh site plan

The site plan locates the Pecometh River Retreat (PRR) on the north side of the Pecometh property in what is currently the family campground about 600 feet from the Chester River. Proper consultation with local authorities should enable us to maintain the wooded shoreline while, at the same time, creating spectacular views of the water from the PRR.

What would happen to family camping?

Family camping would still be offered in the grove of trees adjacent to the Barn Area. Camping guests would use the Barn Area washhouse.

How would the project be funded?

The Board of Stewards for Camping & Retreat Ministries (BOS) currently has $3.3 million invested in a short-term bond portfolio. The remaining funds would be raised in a BOS-sponsored capital campaign with pledges paid over four years.

How is a BOS-sponsored capital campaign different than a conference capital campaign?

A conference campaign authorizes the board to approach every church in the annual conference to support the campaign. A BOS-sponsored campaign asks individuals who have a passion and commitment for the project and for camp & retreat ministry to support the campaign. The latter approach has long-term benefits because it enables Camping & Retreat Ministries to develop a strong donor base.

Would loans be necessary?

The BOS will request approval from the Peninsula Delaware Conference (PDC) to secure a "bridge" loan that would allow construction to be completed prior to the fulfillment of the capital campaign. Such "bridge" financing would be repaid through collections of capital campaign pledges.

The intent of the BOS is to complete the project without long-term debt. If it were determined that a modest mortgage were required, the BOS would bring a proposal to a subsequent session of annual conference.

Would an adult retreat center be financially viable?

Operating projections, based on Drayton user and operating data indicate that a 24-bedroom facility would be self-sustaining at Drayton's occupancy rate of 19.55%. Because of the lack of bedroom and meeting space, Drayton's occupancy rate was not able to rise to meet demand. Successful non-profit retreat centers typically reach occupancy rates of 40-50%. At the low end of this range, a 24-bedroom facility generates an annual surplus of approximately $80,000. A 48-bedroom facility with comparable occupancy rates generates annual positive cash flow in the low to mid six figures. These surpluses can be used to fund capital replacement reserves, support summer camp operations and reduce annual conference support.


What are the zoning issues?

The project would require "Conditional Use" approval by the Queen Anne's County Board of Appeals. "Conditional Use" means that the proposed use is permitted, but the Board of Appeals must approve each specific project. We do not anticipate any difficulties with this approval.

Because the proposed project is in the Critical Area of the Chesapeake Bay watershed, it would also require a determination by the County as to whether or not it requires Growth Allocation. The preliminary feedback from the Planning & Zoning Department is that it is an expansion of an existing institutional use and therefore would not require Growth Allocation. There is a precedent with another facility in Queen Anne's County, the Wye Institute, which is helpful to our cause. However, as is true with many zoning processes, this part of the process can be unpredictable.

If Growth Allocation is not required, Site Plan approval could be obtained as early as Summer 2006. The Growth Allocation process could add an additional 6-12 months.

How would it affect summer camp?

Operationally, the proposed Pecometh River Retreat is located in a self-contained area, meaning that the adult retreats and summer camp or youth retreats can operate simultaneously without interfering with one another. Financially, it is expected that the PRR would add financial strength to the ministry, ultimately providing resources to help support the summer camp ministry.

Is there an exit strategy in the event the facility cannot sustain itself?

In the unlikely event that an adult retreat ministry facility did not succeed, the facility would likely have value as retirement/assisted-living community. Its location would allow an operator to lease the facility and operate it without disrupting other camp operations.