current home of

future home of

Appendix #1:Appendix #1:

The Equity Project (TEP) Charter School 549 Audubon Avenue, Trailer 30 New York, NY 10040 (646) 254-6451 / www.tepcharter.org

Facility Description and Preliminary Architectural Design

The Equity Project (TEP) Charter School, a 480 seat 5th through 8th grade middle school in New York City which opened in the fall of 2009, is seeking capital funding to support the development of a new 51,000 square foot permanent school building to be located at 153 – 157 Sherman Avenue, in Upper Manhattan.

TEP is currently engaged in a capital campaign to raise funds for a $27 million permanent facility (TEP fundraises only for its facility). The reason TEP fundraises for facility-related costs is that in contrast to traditional public schools which receive a free public facility, New York State’s public charter schools typically must pay for their own school facility.

TEP is currently housed in NYC Department of Education temporary trailers (which have already reached their useful life) adjacent to the campus of George Washington High School at 549 Audubon Avenue north of 193rd Street.

While the trailers provide sufficient space for the school during its incubation growth phase, the learning environments and program support areas (cafeteria, gym, administration, etc.) are cramped and class transitions are negatively impacted during inclement weather.

Beyond the simple need for more space, TEP is lacking a permanent facility that fosters critical elements of its mission. Specifically TEP’s new facility design aims to:

• Maximize opportunities for physical recreation (regulation size gym) and access to the outdoors (roof-deck recreational space)

• Provide healthier, fresher food choices through a chef-staffed cafeteria with salad bar

• Fully integrate arts into the core curriculum through acoustically oriented music classrooms, a concert-quality performance space, and extensive instrument storage areas

• Build community through multipurpose spaces for assemblies, performances, and other activities open to both TEP students and the local community

The Equity Project (TEP) Charter School 549 Audubon Avenue, Trailer 30 New York, NY 10040 (646) 254-6451 / www.tepcharter.org

TEP’s Projected Facility Development Uses and Sources

Washington Heights Location 153-157 Sherman Ave

Estimated Square Footage 51,000

Anticipated Construction Start January 2014

Anticipated Construction Completion January 2016

USES

Acquisition $1,400,000

Construction / Hard Costs $17,616,000

Soft Costs $2,195,992

Financing Costs $1,953,425

New Markets Tax Credit (NMTC) Transaction Costs $1,640,850

NMTC Reserves & Other Reserves $2,250,163

TOTAL USES $27,056,430

Cost Per SF $531

SOURCES

Upper Tier Loan (conventional debt) @ 7.5% $10,000,000

Mezzanine Leverage Loan (Social Investor) @ 3% $3,000,000

Equity from sale of New Markets Tax Credtis $7,597,446

Private Fundraising $6,458,984

TOTAL SOURCES $27,056,430

The Equity Project (TEP) Charter School 549 Audubon Avenue, Trailer 30 New York, NY 10040 (646) 254-6451 / www.tepcharter.org

Funders

Major Funders

• TEP has earned a $2 million challenge/matching grant from an anonymous donor giving through the Jewish Communal Fund..

• We have also earned support from top private equity executive and noted philanthropist, Russell Carson, Chairman of Rockefeller University, who pledged $500,000.

Donation of In-kind Services

• TEP’s facility is being developed by the West Side Federation for Senior and Supportive Housing, Inc. (WSFSSH), a nonprofit real estate developer with a 35-year track record, including over $132 million in property under ownership. WSFSSH is taking on this project because they understand the link between quality education and the future prospects of children, families, seniors in low-income communities. We estimate WSFSSH is donating approximately $1 million in development services.

Additional Donors

In addition to earning support from our major funders listed above, TEP has also received over $1 million in private start-up and facility support from organizations and individuals including:

• Peter & Carmen Lucia Buck Foundation • The NYC Charter Center• Laurie Kaplan • The Prudential Foundation• MG Prep Inc. • Varnum deRose Charitable Trust• News Corporation • Over 190 Individuals