Two Schools desired to pursue the acquisition and development of a new $30 million facility. Because of their similar missions and shared values and the opportunity to achieve significant economies through shared use of a single campus, the Schools elected to co-develop and occupy a single site. The Project improvements include a facility space totally approximately 53,000 square feet to house the operations of each of the Schools with room for their growth plans and space for exclusive use by each School and shared community space (including a gymnasium, food service facilities, playgrounds and parking). Two Schools sought permanent debt financing for the development of the campus with the main source of payback being operating cash flow and the proceeds of a $12 million capital campaign.
Two Schools secured a creatively structured $21.5 million tax-exempt bank purchased bond, the proceeds of which funded (1) the net cost of its purchase of land on which to develop a new facility (2) construction of the Project and (3) related costs. The financing was structured as a fixed-rate, drawdown, tax-exempt revenue bond.