MassDevelopment.com: Press Room: Holyoke Community Charter School Receives $6 Million-Plus MassDevelopment Financing Package

Holyoke Community Charter School Receives $6 Million-Plus MassDevelopment Financing Package
May 3, 2005

Contacts:
Adam Bickelman, 617-330-2086 or abickelman@massdevelopment.com
Tracy Lawrence, 617-330-2011 or tlawrence@massdevelopment.com

MassDevelopment today announced a $6,350,000 financing package for the Holyoke Community Charter School (HCCS). Sabis Educational Systems, Inc., the management entity for the new school, will use three MassDevelopment finance programs to purchase and renovate a building, located at 2200 Northampton Street, into the charter school's future home. Holyoke Community Charter School is scheduled to open in fall 2005, and will serve approximately 700 K-8 students by its second year. The project will result in the creation of 73 local jobs.

"This project shows how our clients can combine two or more MassDevelopment finance tools to maximize a loan package and increase efficiency in the application process," said Robert L. Culver, MassDevelopment president/CEO.

Specifically, the Holyoke Community Charter School will use MassDevelopment tax-exempt bonds, $500,000 of which are guaranteed under the Massachusetts Charter School Loan Guarantee Fund, to purchase and renovate its facility. School officials will also utilize a MassDevelopment TechDollars loan, which provides access to 100 percent financing for technology equipment purchases and installations for nonprofits, to outfit the school with high-tech computer and telephone systems.

"This is an exciting time for the faculty, staff and prospective students of the Holyoke Community Charter School," said Dr. Blanca Reyes, HCCS school director. "Thanks to MassDevelopment, BankNorth, America's Charter School and the U.S. Department of Education for structuring this competitive financing package."

MassDevelopment, the state's finance and development authority, partners with businesses and local officials to stimulate growth across the Commonwealth. In fiscal year 2004, the agency arranged financing for or managed 201 projects statewide totaling more than $1.25 billion. These projects supported the creation of more than 5,500 jobs and 2,445 housing starts.

The Massachusetts Charter School Loan Guarantee Fund program is funded in part (65 percent) by the U.S. Department of Education, which awarded a $10.025 million grant to MassDevelopment in 2003, through its Credit Enhancement for Charter School Facilities Program. A total of $5.5 million (35 percent) is financed by non-federal sources, including $2.5 million from The Boston Foundation, $2 million from Local Initiatives Support Corporation, and $1 million from MassDevelopment.