Charter Schools Examine Bond Issue, Lower Lease Payments
Last updated Tuesday, August 14, 2007 11:35 PM CDT in News
By Lana F. Flowers
THE MORNING NEWS
ROGERS -- A local charter school organization can save money on payments for two campuses with a bond issue that has lower interest rates.
The Benton County School of the Arts board on Monday heard about a refinancing plan from Mechel Wall, founder of the Benton County Charter School Organization.
The nonprofit organization, founded in 2000, got the state Department of Education to approve charters for the Benton County School of the Arts, to serve kindergarten through eighth grades, and the Northwest Arkansas Academy of Fine Arts, to serve ninth through 12th grades.
Both schools are open enrollment public schools, which take students from anywhere within the state. The students provide their own transportation to the Rogers campuses.
The schools lease property and buildings from the charter school organization, which has a short-term loan at 8 percent interest for the school of the arts campus.
The school of the arts repays the charter school organization the $40,000 per month for the campus lease, Wall said.
The fine arts academy opened Aug. 1 in more than 50,000 square feet in three buildings, including an 1,100-seat performing arts center, in a former church building at 506 W. Poplar St. That campus cost $4.1 million before renovation.
Both schools can save money on lease payments if Providence Financial Co. of Bountiful, Utah, issues bonds, Wall said.
She approached the company about funding options and is about to sign an agreement for Providence financial services.
The company would either issue one bond to cover both charter school campuses or issue a bond for each campus, Wall said.
Each charter school would repay the bond money from operations funds, derived from state funding based on student enrollment. Charter schools do not get property tax money like traditional public schools.
Providence Financial has approximately $100 million in charter school funding in its system at any time, according to its Web site, www.providencefinancialco.com.
The company also funds private schools and health care facilities and publishes the Charter School Business Newsletter.
The school of the arts may expand, as school officials examine an addition for 50 more students, Wall said.
The school of the arts has 457 students, the maximum capacity of the campus at 2005 S. 12th St., Wall said. The state charter allows up to 500 students at the school of the arts.
The fine arts academy, which opened Aug. 1, has 212 students, Wall said. That campus can hold up to 250 students.
Benton County School of the Arts
www.bcsa.k12.ar.us
Northwest Arkansas Academy of Fine Arts
www.nwaacademy.org
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