What You Need to Know About Facilities Development Thursday, December 1, 2011

Presenters Brian Keenan-BWP Eric Felczak-BWP Rachel Jones-NYCSA Jill Norton-Enterprise Charter Agenda I.Overview Leasing/Owning II.Site Assessment/Section III.Costs/Financing IV.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/Financing The 100 sq ft rule The $125/$275 rule Not credit worthy Equity Free money How 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 StatePrevailing WagePublic Bidding NY No Not required (but many do) MA Yes NH No RI Yes CT Yes

Best Practices Examples StateBest Practice 1Best Practice 2Best Practice 3 NY Requiring Charters to Have Policies & Procedures Vendor Analysis for Equipment or Consulting Improving Charter School Leadership MA Creating 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 Options Qualified 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 Portfolio Newark 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 Portfolio Jersey 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 Portfolio Teaneck 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.