More Than $2 Million Owed and an Auction Date: A Tennessee Megachurch Defaults on Its Building

• Venue Church’s main campus at 6401 Lee Highway, Chattanooga, faced foreclosure
• The church owed more than $2 million and had defaulted on payments
• The lender was Hal Properties, a Tennessee company
• An auction was set for August 24, 2022

A Tennessee megachurch’s building was headed for auction after the church fell behind on its payments, MinistryWatch reported in August 2022.

Venue Church’s main campus at 6401 Lee Highway in Chattanooga was scheduled to be auctioned from the steps of the local courthouse on August 24, 2022. The church owed more than $2 million and had defaulted on its payments to the lender, Hal Properties, a Tennessee limited liability company.

The default followed turmoil in the church’s leadership. According to the report, a video had surfaced that allegedly showed head pastor Tavner Smith kissing a staff member while he was divorcing his wife. Eight church employees quit after confronting him. Smith took a month-long sabbatical in January 2022, then returned in February and apologised for what he called an “inappropriate relationship.”

The report does not say how much of the church’s financial difficulty was caused by the controversy, but loss of trust in leadership often leads to falling attendance and giving, and a congregation carrying debt has little margin when income drops.

Church debt is secured on the building. When payments stop, the lender can take and sell the property, regardless of how many people once worshipped there.

For Jamaican congregations, the lesson is to keep borrowing within what regular giving can support even in a bad year, to hold reserves, and to maintain strong financial oversight independent of any one leader. Trustees should know the terms of every loan secured on church property and act early if payments become difficult, rather than waiting for a notice of sale.

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