Temple Beth Haverim works through bankruptcy
Membership and debt service problems lead to Chapter 11
By Sophia Fischer sfischer@theacorn.com

Despite filing for Chapter 11 bankruptcy protection on July 22, Temple Beth Haverim in Agoura Hills is conducting business as usual.

The preschool is in full operation—with a waiting list— and the excitement of the Jewish High Holidays is drawing near.

But a gradually declining membership and a drop in property value recently forced the temple into a precarious financial position.

"Based on the debt service and lower membership, we were unable to service debt, so we determined our best course of action was to file bankruptcy," said Marty Goldberg, Beth Haverim vice president. "We will be in a much better financial position if the courts agree with us that the property is worth less than what we owe the bondholders."

A hearing date with the bankruptcy court was scheduled for Sept. 17 for creditors who want their position clarified or discussed, Goldberg said.

"We are doing everything we need to do to restructure our debt, have a balanced budget and put together a plan for how we can pay our mortgage in the future," Goldberg said. "We are looking at every budget line item wherever we can readjust."

No staff members have been cut from the conservative congregation, but their hours and salaries have been reduced to help bring down the temple's debt, Goldberg said.

A source close to the temple said that a private party had offered to purchase the property and lease it back to the temple, but that report was denied by Beth Haverim officials.

"We have retained an excellent legal firm to represent us in this matter, and we are hopeful that this strategy will allow us to have a more affordable future," temple President Dave Scherr wrote in a letter to the congregation.

Part of Beth Haverim's plan is to attract young families and increase temple membership. More than 20 new families have joined the congregation, Beth Haverim officials said, and a search for an associate rabbi will begin soon.

Laura and Jon Krupp and their two children, Lathan, 18 months, and Leo, seven weeks, are among the new members. The Moorpark couple were aware of the financial challenges facing the synagogue but felt so welcomed at a temple open house that they decided to join.

"Everyone came and introduced themselves to us and wanted to know our names. We haven't been in an environment like that in forever, especially in today's day and age when people are too busy to say hello," Laura Krupp said.

The bankruptcy is the latest in a series of financial challenges the synagogue has faced since moving from an office park on Canwood Street to its current Ladyface Circle site in 2003.

In 2006, unexpected construction-related issues and sagging membership threatened to force the synagogue to find a new home. Real estate values also began their downward trend.

But when information about the temple's struggle came to light, both active and inactive members of the congregation responded with strong support.

"Our temple will remain a vibrant force in this community as we reorganize and pursue our normal everyday activities," Scherr wrote. "Other Southern California temples have faced similar circumstances, reorganized successfully and still thrive today."