Village Community School

Founded in 1970, VCS is a K-8 independent school located in the West Greenwich Village area of New York City. VCS is an independent, non-profit, educational corporation chartered by the Board of Regents of the State of New York, accredited by NYSAIS (New York State Association of Independent Schools) and licensed by the Health Department and approved by the Board of Education.

$21,000,000
BUILD NYC Resource Corporation
Village Community School Project
Series 2019

Wye River Group Served as Village Community School’s Independent Financial Advisor for this Transaction.

Project Overview

Village Community School’s (VCS) Project comprises the construction of a new three-story addition with cellar level, with a rooftop play yard above, to be built on the site of the current play yard. The 24,800 SF addition will provide much needed space – and will include a youth regulation-sized gymnasium, dedicated classrooms, larger modern labs for science, technology, engineering, art and math (STEAM) courses and more – allowing VCS to accommodate its expanding, innovative curriculum. VCS selected Manhattan-based Marvel Architects for the Project, a firm with noted experience designing contextual projects in neighborhoods across New York City.

The addition also represents an important safety enhancement for the School. Outdoor physical education and recreation activities will be moved away from the street level to the safety of the new enclosed sky yard, and with the new gymnasium there will be a significantly reduced need for students to use Pier 40’s athletic facilities, which are located several blocks away and across the busy West Side Highway.

The total cost of the Project is estimated at $33.5 million.

Financing Overview

Early in the Project planning process, Wye River assisted VCS in assessing its financing alternatives and debt capacity.  As the Project plans materialized, so did the Plan of Finance, and in the Spring of 2019 Wye River conducted a competitive solicitation for bank-based financing for (1) a long-term fixed rate tax-exempt loan for up to $21 million and (2) an interim variable rate draw-down loan (tax-exempt or taxable), which would be repaid with the proceeds of VCS’s capital campaign, for up to $4 million.  VCS received 12 competitive proposals and ultimately selected a lender that provided very favorable pricing for both loans, including a 15-year conventional fixed rate commitment in the low-2% range for the Series 2019 Bonds.  The financing has liberal security and financial covenant provisions and integrates prepayment and additional indebtedness flexibility.  The financing successfully closed in October 2019.

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