District/School Administration Administration
The Massachusetts Board of Elementary and Secondary Education

Approval of Loan Beyond Charter Term for Abby Kelley Foster Charter Public School

Under the charter school statute, G.L. c. 71, § 89(j)(6), a charter school may incur temporary debt in anticipation of receipt of funds but requires approval of the Board of Education if it wishes to agree to repayment terms that exceed the duration of the school's charter.

The Abby Kelley Foster Charter Public School (AKFCPS) is a Commonwealth charter school in its tenth year of operation. AKFCPS requests the Board's approval to enter into proposed loan agreements with lenders in order to secure up to $35 million of tax-exempt bond debt for a term of up to 30 years to support the purchase of its two currently leased facilities in Worcester and the acquisition of a third adjacent facility. The Massachusetts Development Finance Agency (MDFA) will act as conduit issuer for the proposed bond-financing program.

This purchase will allow AKFCPS to secure a permanent campus of three buildings large enough to provide adequate space to serve its recently expanded K-12 student body. In addition, sufficient surrounding land will also be acquired in order to provide for parking and sports fields. The third, newly acquired building will be renovated to house the AKFCPS high school. This additional facility will also allow AKCPS to expand its instructional offerings for middle and high school students and build upon music and performance programs with the addition of an auditorium and gymnasium. By extending the repayment of debt beyond the term of the school's charter, AKFCPS will be able to utilize its current cash reserve in order to realize long-term, stable annual facilities costs.

MDFA has acknowledged in writing that the Commonwealth of Massachusetts, including but not limited to the Board and the Department of Elementary and Secondary Education, provides no representations or guarantees with respect to these loans and has no liability for any portion of the loans. They have also acknowledged in writing that specifically and without limitation, the Board's approval of the loan has no impact on any action that the Board may choose to take in the future with respect to probation, revocation, or renewal of the school's charter. The proposed motion approving these loans is explicitly conditioned upon the inclusion of this language in the loan agreements themselves.

The Department has reviewed the request from AKFCPS and it appears reasonable and consistent with the charter school statute and regulations. With the safeguards explained above and agreed to by the school, I recommend that the Board approve this request as presented.

If you have any questions regarding this amendment or wish to see the school's full request, please contact Mary Street, Director of Charter Schools, at 781-338-3200; Jeff Wulfson, Associate Commissioner for School Finance and District Support, at 781-338-6500; or me.