Date post: | 29-May-2015 |
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Copyright © 2012 Charter School Capital
The Future of Charter School Facilities
Copyright © 2012 Charter School Capital
AGENDA
2
What We Will Cover Today
• Balancing facilities dreams and budget realities • Funding options • Project execution • Other considerations
Copyright © 2012 Charter School Capital
PROJECT FLOW
3
Plan Construct Design Acquire
þ Space þ Features þ Budget þ Timeline þ Charter
issues
þ Select firm(s) þ Design/build
options þ GC input þ Timing; big
bang or phased
þ Locate Site þ Acquisition þ Permitting þ Land prep
þ Move dirt þ Raise the
roof þ Control:
Project manager or owners rep
Fund
þ Cash þ Bank þ Bond þ Long Term
Lease
Copyright © 2012 Charter School Capital
BUDGET VS NEED
4
Your School’s Facility Project
• Existing reserves
• Ongoing % of revenue
• Fundraising – public or private
• Funding alternatives
• Academic mission
• Growth plan
• Specialty requirements
• Local considerations
What can we afford? What is required?
Copyright © 2012 Charter School Capital
CRITERIA
5
Security
CASH TRADITIONAL BANK BOND LT LEASE/
OPTION
Growth Options
FUNDING COMPARISON
Underwriting
Annual cost
Cash needed
Copyright © 2012 Charter School Capital
FUNDING COMPARISON
CRITERIA
6
Cash needed to close (e.g.
$10M Project)
Annual Cost (e.g. $10M
project)
CASH
$10M
BANK BOND
~$200-500K $0-100K $3-4M
$0 $1.0M – 1.3M $1M $500K - 900K
Other Reserves?
7-10%
120% of project $
Rating?
10%
No amortization
6%- 8% on the debt
10-20yr
amortization
TRADITIONAL BANK
LT LEASE/ OPTION
Copyright © 2012 Charter School Capital
CRITERIA
7
Security Interest
CASH
None
BANK BOND
Real estate + all assets None Real estate
+ all assets
School Growth Options cash = build Refinance
(rate risk?) Scalable /
expandable Refinance (rate risk?)
FUNDING COMPARISON
Underwriting / Credit
Worthiness None
Min 3 yrs
Surplus
Rating?
No minimum
Academic success
Flexible
Min 5 yrs
Surplus
Assets + Revenue
LT LEASE/ OPTION
TRADITIONAL BANK
Copyright © 2012 Charter School Capital
CRITERIA
8
Security
CASH BANK BOND
Growth Options
FUNDING COMPARISON
Underwriting
Annual cost
Cash needed
TRADITIONAL BANK
LT LEASE/ OPTION
Copyright © 2012 Charter School Capital
PERCEPTION VS REALITY
9
What to Consider
• Ownership is an “investment” • Control is critical • Evaluate $ spent not % rates
Copyright © 2012 Charter School Capital
PROJECT ELEMENTS
10
Convert Facility Dreams to Reality
• Design needs • Value engineering
- Design to budget
• Space needs - Portable to permanent
• Schedule/timeline
Copyright © 2012 Charter School Capital
PROJECT ELEMENTS
11
Master Plan
• Ensure classroom safety • 21st century learning environments • Maintain flexibility • Options to accommodate future growth • Increase outdoor learning opportunities • Reduce transportation costs • Maximize joint use opportunities with community • Green schools – reduce operational costs
Copyright © 2012 Charter School Capital
DEFINING PRIORITIES
12
Priority One
• Code, health, safety, infrastructure - Americans with Disabilities Act (ADA) - Hazardous materials removal - Building code upgrades - Building shell integrity - Modular classroom building - Seismic retrofit/modernization
Copyright © 2012 Charter School Capital
DEFINING PRIORITIES
13
Priority Two
• Program scope - Interior renovations/complete classroom - Energy efficiency - Administration building modernization - Site utilities/drainage - Classroom technology
Copyright © 2012 Charter School Capital
DEFINING PRIORITIES
14
Priority Three
• Site facilities - Athletic fields - Site entry circulation - Visitor parking - Renewable energy: solar panel car ports
Copyright © 2012 Charter School Capital
1 MO 2 -‐ 6 MO
Programming +
Project Scoping
Design Review + Approval
BEGIN
3 -‐ 5 MO
1. SchemaGc Design
2. Design Development
3. ConstrucGon Documents
COMPLETION
ConstrucGon phase
Phased Summer ConstrucGon
or 6 -‐ 24 months if new construcGon
BEGIN CONSTRUCTION
PROJECT SCHEDULE
15
Design + Design review / approval likely will overlap reducing your total project time
Copyright © 2012 Charter School Capital
OPTIONS
16
Additional Considerations
• Access to working capital • Selecting a full service partner
- Commercial Developer - Architect - GC - Design/build
• Total cost of ownership
Copyright © 2012 Charter School Capital
Stuart Ellis: [email protected]
Charter School Capital:
877.272.1001 charterschoolcapital.org
Jon Dahlberg: [email protected]