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

Information Regarding Approval of Loan beyond Charter Term for Boston Renaissance 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 Elementary and Secondary Education (Board) if it wishes to agree to repayment terms that exceed the duration of the school's charter. At its October 21, 2008 meeting, the Board delegated to me the authority to approve such loan requests per G.L. c. 15, §1F, paragraph 3. During the past month, under this newly-delegated authority, I approved an extended loan request for the Boston Renaissance Charter Public School (BRCPS) as described below. This approval is explicitly conditioned upon the inclusion of the following standard language in the final loan agreement(s):

The parties to the loan(s) acknowledge and agree 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. Furthermore, specifically and without limitation, the Board's approval of the loan has no impact on any action that the Massachusetts Board of Elementary and Secondary Education may choose to take in the future with respect to probation, revocation, or renewal of the School's charter.

The school submitted its request in a letter dated October 23, 2008, in which the board of trustees of BRCPS requested approval to enter into financing agreements that extend beyond the term of the school's current charter for $18,650,000 of debt. These loan agreements will consist of an $11,650,000 tax exempt bond with a thirty year term, a $5,000,000 Qualified Zone Academy Bond with a fifteen year term, and a $2,000,000 conventional loan with a ten year term. This financing will be utilized in support of the $40.6 million purchase and construction of a new, 1-3 story BRCPS facility at 1415 Hyde Park Avenue, Boston, and will be secured by that real estate. The move to this new facility is intended to satisfy the condition placed on the school's charter at the Board's February 27, 2007 meeting, which requires the school to relocate from its existing building on Stuart Street in Boston.

The request was reasonable and consistent with the charter school statute and regulations.

If you have any questions regarding this loan approval 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, at 781-338-6500; or me.