MassDevelopment.com: Press Room: MassDevelopment $2.375 Million Financing Package Supports Sturgis Charter School Facility Purchase

MassDevelopment $2.375 Million Financing Package Supports Sturgis Charter School Facility Purchase
October 27, 2005

Contacts:
Adam Bickelman, MassDevelopment, 617-330-2086
Eric Hieser, Sturgis Charter Public School, 508-778-1782

MassDevelopment today announced a $2,375,000 financing package for the Sturgis Charter Public School in Hyannis. The William Sturgis Friends of Education Foundation, who oversees finances for the school, were able to utilize a $295,000 Massachusetts Charter School Loan Fund guarantee to procure a $2,080,000 tax-exempt bond. The bond's proceeds will fund the acquisition and renovation of a two story, 48,700-square-foot building located at 427 Main Street, previously leased by the school. Renovations and upgrades include improvements to the building's exterior, and the construction of more classroom space, a new assembly hall, fitness room and performance area.

"The Massachusetts Charter School Loan Fund is an important resource that charter schools can tap to help them purchase, renovate, and equip new facilities," said Robert L. Culver, MassDevelopment president/CEO. "The fund fills a financial void for charter schools. Under state rules, these schools are not eligible for building assistance. Without this federally funded program, many schools with a charter would be unable to get bank financing to buy or upgrade a building."

Established in 1998, Sturgis Charter Public School is the only charter high school on Cape Cod. The school's curriculum focuses on preparation for college with an emphasis on the liberal arts and sciences. Sturgis currently enrolls 330 students in grades nine through twelve.

"We are excited to enhance the space where our students learn and grow, and without the charter school guarantee fund we wouldn't be where we are today," said Eric Hieser, the school's executive director. "With the Massachusetts Charter School Loan Fund's guarantee, BankNorth was able to reduce its risk dramatically, which allowed the bank to finance our project. Thanks to MassDevelopment, TD BankNorth and the U.S. Dept. of Education for helping us make the numbers work to purchase our permanent home."

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: 4702 permanent and 5,100 in construction.

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. The fund will leverage $60 million in private financing to assist start-up and already established charter schools in the acquisition, construction, renovation and leasehold improvement of target facilities.