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

Charter Schools - Information Regarding Approval of Loan beyond Charter Term for Boston Collegiate Charter 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 Collegiate Charter School (BCCS) 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 November 5, 2008, in which the board of trustees of BCCS requested approval to enter into financing agreements that extend beyond the term of the school's current charter for up to $8 million. These loan agreements will consist of Qualified Zone Academy Bonds (QZAB) issued by the Massachusetts Development Finance Agency, with a term of up to 16 years. The school's nonprofit partner, the Boston Collegiate Charter School Foundation, has agreed to acquire the property at 200 and 215 Sydney Street in Dorchester for use by the school. This property is near the school's current main campus at 11 Mayhew Street in Dorchester. The QZAB bond proceeds will be used to improve the Sydney Street facility to house the school's middle school expansion as previously approved by the Board in the fall of 2005.

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.