Downloaded 17 times
Uploaded byCharter School Capital
Essential Steps to Facilities Planning
The document outlines essential steps for facilities planning in charter schools, including assessment of needs versus wants, setting a realistic timeline, and securing funding. Key stages include acquiring a site, designing the facility, and executing the project effectively to minimize disruption to students. Each step emphasizes the importance of thorough planning and collaboration with experienced professionals to ensure successful implementation.
More Related Content
Similar to Essential Steps to Facilities Planning
More from Charter School Capital
Essential Steps to Facilities Planning
- 1.
- 2. 2 Freddy Mendoza Founder &Teacher Arizona College Prep Academy Jon Dahlberg VP of Business Development & Facilities Charter School Capital Today’s Speakers
- 3. • Assess -Balancingfacilities dreams and budgetrealities • Plan – Setting a realistic timeline • Fund - Fundingapproval - keys areas of focus • Acquire – Finding the right site & funding option • Design – Partnering with the right experts and setting a construction schedule • Execute - Project execution and timing 3 How to Plan for Your Next Facility
- 4. • Understand your wantsVS needs • Assess the amount of space you need • Determine your budget 4 Assess
- 5. Access 5 • Total Spaceis a combination of what you NEED and what you WANT • Need is a function of your charter • Want is a function of what you can afford Tip: Don’t underestimate the impact of common and administrative space • Make sure you account for bathrooms, hallways, offices and conference rooms
- 6. Assess 6 WANT – NEED- BUDGET What can we afford? What is required? Existing reserves Academic mission Ongoing % of revenue Growth plan for attendance Fundraising – public/private Specialty requirements Funding alternatives Local considerations
- 7. Assess 7 $0mm $2mm $4mm $6mm $8mm $10mm $12mm $14mm $16mm $18mm $20mm $0mm $2mm $4mm$6mm $8mm $10mm Potential Project Budget Annual School Revenue Facilities Budget vs. School Revenues 10% Facilities Cost/Rev 15% Facilities Cost/Rev 20% Facilities Cost/Rev
- 8. • Set arealistic timeline • Prepare for setbacks • Make a list of must- have features 8 Plan
- 9. Plan 9 • Assume thatany building or renovation project will take much longer than expected. • A facility expansion or move will likely involve your entire team, and the goal is to minimize disruption to your students and academic programs. Tip: Learn from Other Schools • Find out how long it’s taken other schools to accomplish similar projects so you can be realistic and plan for a smooth transition process.
- 10. Plan 10 • What isabsolutely necessary for your school in order to serve your students and fulfill your mission? • If your charter requires your school to have a ballfield, an art room, or adaptive PE equipment, you’ll save time by disqualifying sites that can’t support these features at the outset. Tip: Revisit Your Charter • Go back to your charter, your mission, and your board of advisors and dive deeply into what your facility must have to carry out your mission—this may require making some tough choices.
- 11. • Know youroptions • Weigh the pros and cons • Assess which option is best for your school 11 Fund
- 12. Developer Long-term Lease Bank Long-term Lease Bond Long-termLease Bank Short-term Lease Long-term Lease Developer Fund Criteria Cash Bank Bond Long Term Lease Cash needed to close $7M $2.1 – 2.8M ~$200 – 500K $0 – 100K Annual cost (example) $0 $350 – 700K $600 – 800K $630 – 700K Underwriting None Min 5 yrs Surplus Assets + Revenue Min 3 yrs Debt coverage Surplus Rating? No minimum Academic success Flexible Security interest None Real estate + all assets Real estate + all assets None Growth options Cash = Build Refinance risk Rate risk 10 yr minimum Refinance risk Covenants Scalable, expandable Considerations/ challenges Reserves? 20+/- 40% equity 5-20yr term and amortization 100% financing Transaction costs “Road show” 100% financing No amortization Buy back 12 Note: $7 million project example; bank assumptions 6-8% interest on debt, 30-40% equity, 10-20yr amortization; bond assumptions 6-9% interest rate, 18% transaction cost/additional financing, 30yr amortization; lease options assumptions 100% financing, 9-10% cap rate.
- 13. # of Yearsof Operation $ Size of Financing Large Small 0 10+ Developer Long-term Lease Bank Long-term Lease Bond Long-term Lease Bank Short-term Lease Long-term Lease Developer Alternative capitalsources expand with school/network sizeand maturity 1st Renewed Charter $7 -10mm Fund 13
- 14. 14 Fund Security Interest Growth Options Underwriting Annualcost Cash needed Criteria Cash BondTraditional Bank Long Term Lease Comparison for illustrative purposes only. Rankings are based on how hypothetical “School A” might view its options based on unique attributes and objectives. Example Project - $5 Million
- 15. 15 Fund Security Interest Growth Options Underwriting Annualcost Cash needed Criteria Cash BondTraditional Bank Long Term Lease Comparison for illustrative purposes only. Rankings are based on how hypothetical “School A” might view its options based on unique attributes and objectives. Example Project - $20 Million
- 16. • Leasing VSPurchasing • Find your site • Understand how requirements stack up against restrictions 16 Acquire
- 17. Acquire 17 • Lease versuspurchase is really about control versus ownership o Management time and expertise o Long-term real estate trends in the local market o Fluctuations of the broader market, which may limit future growth
- 18. Acquire 18 • If thebuilding you want is not zoned for education, you should strongly consider if this building is really for you. In some areas, charter schools are allowed to operate by right in certain zones, but may need to apply for a permit in another zone. Tip: Anticipate Zoning Challenges • Consult with other successful charter schools, land- use attorneys and experienced consultants in the charter space
- 19. • Decide onapproach • Selecting the right team • Obtain building permits 19 Design
- 20. Design 20 • Consider yourcircumstances and the option that would be least expensive and disruptive for your students. • Making gradual renovations to support growing enrollment in a long-term lease situation is very different than building a school from the ground up. Tip: Consider Enrollment & Costs • There’s no requirement that everything has to be done all at once if you have enough room for your students and there’s not a significant financial disadvantage.
- 21. Design 21 • Choose architecture,engineering, and construction professionals who are experienced in charter schools and who can adapt to your project. • Your expertise is educating children—you don’t want the distraction of having to micromanage contractors or designers and guide them through the process of building or renovating a school. Tip: Ask for Help • Charter School Capital and other good funding partners can connect you with professionals who have proven charter school facilities experience and can provide the advice you need.
- 22. Design 22 • After thosezoning and land use permits, there’s more essential paperwork. • Most big projects require building permits regardless of whether you’re building a school from the ground up or renovating. • Make sure authorizer knows why and what you are doing Tip: Don’t Be Caught Off Guard by Surprise Paperwork • Ask your funding partners, commercial real estate agent, designers, and contractors about the permits that you’ll need. Keep a list and factor them into your timeline so you always know what to expect.
- 23. • Decide ona Project Manager or Owner’s Representative • Move-In!!! 23 Execute
- 24. Execute 24 • You haveoptions about who will oversee the day-to-daylogisticsof your project. Project managers: typicallywork forthe contractorand focuson keeping the projecton schedule and on budget.One constructionprojectmay involve several project managers involved atdifferent phases,and theyare typicallyincluded as part ofthe costof a general contractor’sservices. Owner’s representatives:theseare independent third-partyprofessionals that look outfor your bestintereststhroughoutevery phase ofthe project,including siteselection,design, construction,and relocation. Retaining an owner’s representative isan additional cost.They canhelp yourschool avoid typical pitfalls,findways to lower costs,and coordinate bidding. In thecase ofa lease,an owner’s representative ensures thatthelandlord stayson budget and on schedule.
- 25. Execute 25 Plan Construct DesignAcquire Space Programming Features Budget Timeline Charter approvals Select team Design/build options GC bidding Bldg. permit Timing; big bang or phased Locate Site Requirements + restrictions Leasing/purchasing Acquisition Use Permit Land prep Move dirt Raise the roof Control: Project manager or owners rep Fund Cash Bank Bond Lease
- 26. Execute 26 • Creating anin-depth plan can help to smooth a complex transition and help your students and staff know what to expect. • Moving is always challenging! If you’re relocating to another facility, try to do it during the summer or another significant school break. Hold an open house and give tours to your students and their families in advance of the school year.
- 27. Execute 27 Tip: Communicate Oftenwith Your Students (and their Parents!) • Whether you’re moving or renovating, show your students and families videos and pictures of the construction progress, and tell them what they can expect from the new facility, including exciting developments and any changes that they need to be prepared for. You may gain some volunteer help along the way!
- 28. 28 Thank You! Freddy Mendoza fmendoza@arizonacollegeprep.com ArizonaCollege Prep Academy Jon Dahlberg jdahlberg@charterschoolcapital.org Charter School Capital
Editor's Notes
- #13 Footnote: explain ratios (look at previous facilities deck)