What You Need to Know

About Facilities DevelopmentThursday, December 1, 2011

PresentersBrian Keenan-BWPEric Felczak-BWPRachel Jones-NYCSAJill Norton-Enterprise Charter

AgendaI. Overview Leasing/OwningII. Site Assessment/SectionIII.Costs/FinancingIV.Design, Bidding & Construction

About Us

Build with Purpose is a nonprofit real estate development organization specializing in charter facilities such as charter schools. Since our inception in 2003 we have developed 16 charter schools with total development costs exceeding $120 million serving 5,500 children.

An Integrated Approach• Charter Schools- Working to take the burden of facility

development off the hands of charter schools so they can focus on education.

• School Gardens Initiative- Increasing access to healthy foods by establishing healthy living practices, finding sustainable resources, and providing healthy meal options in schools.

• Energy Institute- Bringing a variety of nonprofits energy efficiency and renewable energy options.

• Community Organizing—Establishing direct service with the groups we serve and their communities through a partnership with the Jesuit Volunteer Corps.

Essentials Leasing vs Owning

• When does it make sense to lease vs. owning?

• What are the cost averages• Start-up considerations• Credit worthiness

Site Assessment/Selection

• Types of property• Environmental Conditions• Location, location, location• Cafagymatorum/Gotta have it• Competition

Costs/FinancingThe 100 sq ft ruleThe $125/$275 ruleNot credit worthyEquityFree moneyHow to control costs

• What comes first the chicken or the egg?• Phases in the design process• When is it too late to make a change?• What’s the architect’s job?• What is a change order? • What is the contractor pricing?

Design, Bidding & Construction

Facilities Construction and Legal Requirements

State Prevailing Wage Public Bidding

NY No Not required

(but many do)

MA Yes Yes

NH No No

RI Yes Yes

CT Yes Yes

Best Practices Examples

State Best Practice 1 Best Practice 2 Best Practice 3

NYRequiring Charters to

Have Policies & Procedures

Vendor Analysis for Equipment or

Consulting

Improving Charter School Leadership

MACreating Positive

School Culture through Character

Education

Using Community Resources to Enhance the

Teaching of History

Classroom Differentiation

CT Student-Created Goals

Social Programs Highlighting

Important Social Skills

Academic Growth Monitored through “Must Pass Policy”

Facilities Financing OptionsQualified School Construction Bonds (QSCBs ) and Qualified Zone Academy Bonds

Allows qualifying schools and/or communities to borrow at little or no interest cost.

Tax-exempt Bonds Need authorized issuer, but keeps interest expense down.

Community Development Financial Institutions

Assist with subordinate debt and loan-to-value concerns

Charter School Credit Enhancement

Assists schools with an ability to borrow more

Build with Purpose PortfolioNewark Educators’ Community Charter School

Newark, NJ•Completion Date: August 2009•Size: 28,000 sq. ft.•Students Served: 450, K-8•Architect: Newwork LLC•Contractor: Artco Contracting and Development•Total Interior Development Costs: $1 Million•Financing/Lender: Victoria Foundation

Build with Purpose PortfolioJersey City Community Charter School

Jersey City, NJ•Completion Date: November 2008•Size: 24,000 sq. ft.•Students Served: 600, K-8•Architect: Jamel Kizel•Contractor: La Rocca•Total Development Costs: $7.7 Million•Financing/Lender: The Reinvestment Fund

Build with Purpose PortfolioTeaneck Community Charter School

Teaneck, NJ•Completion Date: August 2009•Size: 36,000 sq. ft.•Students Served: 306, K-8•Architect: Gertler & Wente Architects•Contractor: La Rocca•Total Development Costs: $11 Million•Financing/Lender: Hamlin Capital and New Jersey Community Capital-Tax Exempt Bonds

Special Thanks to Today’s Host

The Mission Statement of the Enterprise Charter School is- Engaging young minds through projects and partnerships. The Vision of the Enterprise Charter School is to provide students with the knowledge, skills and dispositions to grow and problem solve, giving them the resources to lead and succeed in the school and the community at large.

www.bwpurpose.orgwww.bwpurpose.org

www.nycsa.orgwww.nycsa.org

www.enterprisecharter.orgwww.enterprisecharter.org