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Initiative allows parishes to explore land lease opportunities

By Michael Gresham
The Texas Catholic

In a forward-thinking approach to meeting the needs of a growing and evolving community, the Diocese of Dallas has announced a pilot program to explore the potential of leasing diocesan-owned land for broader community and ministry purposes. The initiative, which focuses on pilot sites across the diocese, could affect five local parishes, marking a significant moment in strategic planning efforts.

“As we look to the future of the growing Diocese of Dallas, it is essential to address the evolving needs of our community and our ministries,” Cecilia Colbert, chief financial officer for the diocese, said. “One strategy we are considering is how our church properties might be used to best support a community need and enhance our future mission initiatives.”

The diocesan initiative aligns with a growing national trend where churches and dioceses are reassessing their physical assets, particularly their land, to ensure it is being used to its fullest potential. The Diocese of Dallas, in partnership with a global real estate and investment management company, has launched a five-site exploration to determine whether each site’s unused real estate could be better utilized to enhance the mission of the Church, enrich the lives of those served, and potentially generate third-party revenues to support ongoing operations.

“This isn’t just about land,” Colbert explained. “It’s about using what God has given us to create lasting benefits for our community.”

Four of the five sites selected for the pilot study are in Collin County, one of the fastest-growing counties in Texas and the United States.

“We believed the pilot would be most effectively tested in a high-growth area where the demands continue to grow,” Angel Gonzalez, diocesan director of construction, real estate, and leasing, said. “By focusing on such a dynamic environment, we might better understand how to adapt and optimize our real estate to meet growing needs and enhance our impact.”

The parish sites included in the study are St. Jude Catholic Church in Allen, St. Michael the Archangel Catholic Church in McKinney, St. Francis of Assisi Catholic Church in Frisco, Our Lady of Angels Catholic Church in Allen, and Holy Family of Nazareth Catholic Church in Irving.

A collaborative effort

According to Gonzalez, a steering committee has been formed with representatives from the diocese and the participating sites. The Diocese of Dallas hired a real estate and investment management company to lead the real estate analysis, which involves gauging developer interest for a portion of vacant land at each site, evaluating its current value, and considering its potential for future use.

“The study is collaborative and deliberate,” Gonzalez said. “Each parish will ultimately decide whether or not to pursue next steps based on the findings.”

Study results are expected to be available in spring 2025, at which point they will be shared with the involved parishes and communities.

“The only decision made so far is to participate in the study and gather the research,” Gonzalez said.

Gonzalez explained that each site has its own masterplan, so not all vacant land is being considered for development. Proposed uses for the leased land would align with parish mission and community, targeting partnerships with entities such as senior living facilities, community centers, and renewable energy resources, but not limited to those options.

“We’re looking at all options as long as they fall in line with our Catholic mission,” Gonzalez said, adding that all partnerships must have Bishop Edward J. Burns’ approval.

No land is for sale as the initiative focuses solely on ground leases. Each parish site will determine the next steps once an interested partner is identified.

The Diocese of Dallas is funding the study in its entirety. The only expense a parish might incur would be for a land survey if one is not already on file.

A vision for the future

Parish leaders see the land lease use initiative as an opportunity to take advantage of extensive development in their areas while improving their own church communities.

“This initiative explores how parishes can generate income from unused land while staying aligned with our pastoral mission,” explained Joseph D. Walker, business manager of St. Michael the Archangel in McKinney. “This approach ensures we maintain control of the land while creating sustainable income for parishes.”

For St. Michael the Archangel, in particular, Walker said the initiative comes at a time when the McKinney parish is witnessing continued growth in the communities it serves.

“St. Michael’s is going to continue to grow. The expansion in north Texas, especially east of Central Expressway, is real,” Walker said. “A new apartment complex within walking distance [of the parish] will be up and running in the next several months, bringing in more families and parishioners.”

With this growth, Walker said St. Michael the Archangel has major plans—building a parish center, improving office space, and other projects over the next 10 to 15 years. The challenge, he said, is finding the right land-use project, such as a senior living or memory care facility, that balances generating income while preserving space for the parish’s future needs.

“If it does work, it’s a win-win situation,” Walker said. “It serves a great need to the community, and it’s within the purpose of the parish, the goals of the Church, and serving those in need.

“Also, it gives the parish an income flow without us having to give up land that we’re going to need down the road,” he added. “It just makes sense, and it could be a real blessing.”

Ultimately, Colbert said the initiative aligns with Bishop Burns’ directive to be thoughtful stewards of the resources entrusted to the Diocese of Dallas and its parishes and schools.

“By making informed and deliberate decisions regarding our properties,” Colbert said, “we aim to secure a future where our Church can continue to thrive and serve its mission in this growing region.”

For updates and more information about the Diocese of Dallas land lease use initiative, visit www.dallascatholic.org/stewarding-our-land/.

Cutline for featured image: St. Francis of Assisi Catholic Church in Frisco is one of five sites participating in a pilot program to explore the potential of leasing diocesan-owned land for broader community and ministry purposes. (SANTOS MARTINEZ/Diocese of Dallas)

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