By July 1985 a formal Building Committee began making plans for building the church. The District approved a construction loan of $225,000 and groundbreaking took place in April 1988. the congregation elected to be its own general contractor and hired Laborers for Christ, a group of retired, skilled trades people for the construction. Almost every member volunteered to help. With the Lord’s help and blessing, the sanctuary was completed in time to hold the very first Peace Lutheran Church service on Christmas Eve 1988 with 256 worshippers in attendance. The building was dedicated in June 1989. By then is was already evident that expansion plans should begin as soon as possible as two services were needed to accommodate a growing and enthusiastic ministry.
In September 1989 an Educational Unit Building Committee was formed to plan Phase II of the Long-Range Plan. The proposal for an addition of 3,000 square foot Education and Fellowship Unit was approved and an additional $150,000 construction contract was awarded. Construction began in May 1991 and was completed in September in time for Sunday School Rally Day. Taking down quite a few trees to the southwest of the addition also expanded the parking lot.
By fall of 1991, a Preschool Project was planned and in the fall of 1992, 36 children ages 3-5 were enrolled. It was self-supporting after an initial $3,500 was raised for start-up expenses. Beginning staff included a teacher/director and two teacher/assistants. The enclosed playground was constructed and another phase of Peace Lutheran Church was underway.