MassDevelopment.com: Press Room: MassDevelopment Supports Six Bay State Charter Schools with $22 Million in Financing

MassDevelopment Supports Six Bay State Charter Schools with $22 Million in Financing
Projects will Result in Creation of 43 Jobs
March 13, 2006

Contact:
Adam Bickelman, MassDevelopment, 617-330-2086

MassDevelopment today announced six financing packages for Massachusetts charter schools worth $22,278,000. The schools will use proceeds from a variety of MassDevelopment finance programs to acquire, construct, renovate and expand facilities; and to refinance existing debt. When finished, the projects will result in the creation of 43 permanent jobs. Agency officials attribute the recent increase in charter school transactions to the continued progress and stability of the schools, and an increased willingness by private banks to finance charter school facility projects.

"In some states, charter schools are unable to find financing for facility acquisitions and renovations. Investors often view these projects as too risky to fund," said Robert L. Culver, MassDevelopment president/CEO. "Here in Massachusetts, we've created a one-stop shop for charter school financing. We offer an assortment of programs that appeal to our banking partners, and encourage them to get involved in these important projects."

In addition to tax-exempt bond financing, MassDevelopment's charter school clients can access Qualified Zone Academy Bonds (QZAB), guarantees through the federally funded Charter School Loan Guarantee Fund, New Markets Loans through an agency program sponsored by the U.S. Treasury Department, and TechDollars Loans for the purchase of software, hardware and multimedia upgrades. Some charter schools are able to use more than one agency program to take advantage of attractive rates and financing options.

The Academy of the Pacific Rim Charter Public School is using a $5,740,000 QZAB issue to purchase and renovate permanent quarters located at One Westinghouse Plaza in Hyde Park. The school currently leases the second and third floors at that address, and plans to buy the building and renovate the additional space in order to serve an additional 125 students. Chartered in 1995, the Academy of the Pacific Rim incorporates teachings from a variety of eastern and western cultures into its curriculum. The school currently educates 350 students in grades six through twelve and has 60 alumni in college. Students come from neighborhoods across Boston.

The Lawrence Family Development & Education Fund, Inc. will use a $5,500,000 tax-exempt bond issue to pay for an expansion of the Lawrence Family Development Charter School. Opened in 1995, the school was created by a group of Hispanic parents to offer a new model of language acquisition for linguistic minority students. Bond proceeds will fund the acquisition and renovation of two existing buildings adjacent to the school's current home. The new buildings will house grades five to eight, a new early kindergarten program and a family center. Construction plans also include a 16,000 square foot gymnasium that will connect the two buildings. The school currently educates 525 children in grades kindergarten through eight. The school's expansion will create 9 positions.

The Friends of the Pioneer Valley Performing Arts High School, Inc. (Friends) is using a $3,800,000 tax-exempt bond issue to pay for an expansion of the Pioneer Valley Performing Arts Charter Public School (PVPACPS). The financing package is supported by a $538,000 MassDevelopment charter school loan guarantee. Friends will use the funds to purchase a 48,000 square foot renovated building and lease it to the school. Founded in 1996, PVPACS offers a challenging and innovative curriculum focused on all aspects of the performing arts. The school currently educates 400 students in grades seven through twelve.

Foxborough Regional Charter School (FRCS) is using $4,000,000 in MassDevelopment financing towards a $7,200,000 first mortgage real estate acquisition loan provided by Eastern Bank to purchase its current facility from SABIS Educational Systems, Inc. Originally chartered in 1998, the school is located in a 67,000 square foot former elementary school on Route 140 in Foxborough. FRCS educates 980 students in grades kindergarten through twelve from more than 30 surrounding cities and towns. The school's expansion will result in the creation of 8 jobs.

The Berkshire Art and Technology Charter Public School (BArT) is using a $2,060,000 QZAB issue to renovate leased space at One Commercial Place in Adams. The school opened in September 2004 for 88 students in grades six and nine with a curriculum that integrates the study of arts and technology with core subjects. When finished with its project, the school will expand to serve grades six through twelve, with a total student body of 300 students. BArT will also hire 28 full time teachers and staff to support the school's expansion.

The Brooke School Foundation, Inc. and The Edward Brooke Charter School are using a $640,000 tax-exempt bond paired with a $9.5 million New Markets Tax Credit Loan from NCB Development Corp., a Delaware-based lender, to refinance conventional debt and a prior MassDevelopment bond issue. School officials estimate the new financing package will result in significant savings to the school's bottom line. Chartered in 2002, the school provides an academically rigorous college preparatory education. The school currently serves 275 students in grades 5 through 8 from various neighborhoods in Boston, particularly Roxbury, Dorchester and Mattapan, and will expand into a K-8 school starting in the fall of 2006.

MassDevelopment, the state's finance and development authority, works with businesses, financial institutions and local officials to stimulate economic growth across the Commonwealth. In fiscal year 2005, MassDevelopment financed or managed 158 projects statewide representing an investment of nearly $1.9 billion in the Massachusetts economy. These projects are supporting the creation of 2,769 housing units and more than 9,800 jobs: 4,702 permanent and 5,100 construction-related.