$2 million financing package boosts Berkshire Charter School expansion

By Anthony Fyden
12:00AM / Thursday, March 16, 2006

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A $2 million financing package through MassDevelopment will provide a significant boost for the Berkshire Art and Technology Charter School's renovation effort.

The Charter School, known by the acronym BArT, is using Qualified Zone Academy Bonds totaling $2,060,000 to help pay for ongoing renovations of its leased headquarters at One Commercial Place in Adams. Currently, BArT students are enrolled in grades six, seven, nine & ten. The expansion will allow the school to enroll students in grades 6-12.

At that point, the total student body is projected to be 300 students. BArT, which features a curriculum that integrates the study of arts and technology with core subjects, also plans to hire 28 full time teachers and staff to support the expansion. BArT opened in 2004.

The BArT financing was one of six packages for Massachusetts Charter Schools totaling $22,278,000, announced by MassDevelopment this week. The funding will help with a variety of projects, from renovation and expansion, as in the case of BArT, as well as acquisition of property, construction and refinancing.

"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."

The financing packages included tax-exempt bond financing, 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.

According to MassDevelopment, other Massachusetts Charter Schools to utilize financing packages include:

* 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 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.