Charter School Facilities Myths and Realities for School

Charter School Facilities: Myths and Realities for School Expansion and Growth March 2012

Presenters Brian Keenan, Build with Purpose Ken Karle, LAN Associates Steve Ramiza, LAN Associates Agenda I. Background on Key Issues II. Overview on Leasing III. Site Assessment IV. Costs V. Purchase vs Lease VI. Site Selection VII. Bidding Charter schools are best prepared for expansion when they understand the financial, environmental and physical requirements for space. This session looks at the myths and realities for school facility expansion with a focus on comparing and understanding new construction, modular construction, and rehabilitation and adaptive reuse of existing buildings.

About Build with Purpose is a nonprofit real estate development organization specializing in facilities such as charter schools. Since our inception in 2003 we have developed 18 charter schools with total development costs exceeding $110 million serving 5, 500 children.

About LAN Associates is a full service, engineering, planning, architecture, and surveying firm founded in 1965. We service a variety of federal, state, county, and municipal governments, housing authorities, boards of education, Fortune 500 companies, foreign companies, churches, and private clients.

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. • Garden State Schools Initiative- Increasing access to healthy foods by establishing healthy living practices, finding sustainable resources, and providing healthy meal options in schools. • Energy Efficiency- Bringing a variety of nonprofits energy efficiency and renewable energy options. • Tech for School- Helping schools stabilize technology costs though creating virtual desktop interface systems which enables a single PC to be shared by multiple users.

Essentials For New Schools • Lease and Certificate of Occupancy must be in place by June 30 th • Health and fire inspections • Start-up considerations • Credit worthiness • No unsecured debt

Lease Considerations • • Finding space and requirements Environmental Term of the lease Price and the market Improvements Credit worthiness Other factors

Purchase Considerations • Need for long-term and realistic planning • Costs including new construction vs. rehabbing space • Financing • Project management and project team • Due diligence (environmental, legal, engineering)

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

Brian Keenan bkeenan@bwpurpose. org www. bwpurpose. org Ken Karle KHK@lan-nj. com www. lan-nj. com