Church’s financial trouble raised at Sunday service
Former congregant calls out pastor over land deal
Positive messages abound at the bright and clean Victory Christian Center.
On Sunday morning, the screen inside the spacious white sanctuary at 11520 Ellerslie Rd. lights up with the church’s vision, paraphrased from the Gospel of Mark: “Build a dream with love … produce a harvest beyond your wildest dreams.”
Following praise songs and announcements, pastor Calvin Switzer paused during his sermon to discuss “some reports that came out this week” that there have been financial wrongdoings against the church. Lawyers are making “supernatural progress” in efforts to recover millions of dollars owed to the church, Switzer said, reading a lawyer’s statement deploring the “wrongful and unconscionable” actions of Kevyn Frederick, a developer who owes the church $2.8 million, court documents say. The allegations in those documents have not been proven in court.
Switzer deemed the problems a possible stepping stone for greater outreach in the city.
“When the enemy comes in with a flood, God comes in with a bigger flood,” Switzer said. “As a church, we should go after what’s ours because this is a family, a spiritual family, and it’s God’s house.”
He was interrupted by Wally Glimm, a former member of the church, who stood up and yelled. “I’ve got something to say,” Glimm shouted at Switzer, before ushers came and ejected him from the building. “You’re trying to blame it all on Frederick. You are the one to blame for all of this.”
Earlier this month, the eighthectare chunk of prime south Edmonton real estate was put on the block by Toronto-based creditors.
The church building, school, Bible college, daycare and the land are expected to fetch $14 million, according to CARE Ltd., the court-appointed broker.
Glimm isn’t the first to point to Switzer, who also acts as president of Victory Christian Center Inc., for financial obstacles facing his church.
Four years ago, Victory Christian Center sold its Ellerslie Road property in an $18-million cash- and landswap with Frederick, court documents show.
The 41-year-old developer would later be known for his involvement with the troubled Bellavera Green condos in Leduc, where fire code violations and other problems led to an emergency evacuation order for 85 completed suites in February. After the property was placed into receivership the following month, Frederick was the subject of numerous law suits.
In exchange for the Victory swap, Frederick gave the church a $2.8-million down payment, transferred over a $2.6-million Leduc County property, and promised an additional $12.6 million to be paid later. Although Frederick took ownership of the church land, he didn’t register a $12.6 million “take back” mortgage, a safeguard to default the land back to the church if he couldn’t make payments.
The next year, the church took out a $2-million mortgage on its new Leduc property to help Frederick buy out Gary Korzan, his partner in the Bellavera Green condos. Frederick told the church he planned to pay his debts from sales of Bellavera Green condos.
At no point were lawyers involved during those deals, court documents say.
Switzer owns 98 per cent of the common shares in Victory Christian Center Inc., reports an affidavit signed by Korzan this past April. The affidavit notes the organization had an agreement with Frederick to build a church on the Leduc County land.
“Switzer signed the mortgage renewal agreement in front of independent legal counsel and swore an affidavit that he had authority to bind the (church),” Korzan’s affidavit reads. “The (church) knew that they were pledging their property for the purpose of business dealings that they had with (Frederick).”
After being escorted outside on Sunday, Glimm talked about attending Victory church for about five years in the 1990s. His daughter was a principal at the Victory school, Glimm said, and donating money was encouraged as an integral part of receiving God’s blessing.
“When I was here, it was nothing but money, money, money, money,” Glimm said.
By his own estimates, Glimm donated $300,000 to $500,000 to the church while running a successful auction and realty business. When his business went badly, the church wouldn’t help him, he said. Glimm still believes in God, but wants to see the church shut down.
“I just hope that real truth and honesty prevail in this,” Glimm said. “(Switzer) did it himself, so why put the blame on somebody else? If he had taken five or six people in there, maybe they would have said, ‘Hey, we don’t like this, no.’ ”
Switzer could not be reached for comment.