Why Raise Funds Now?
Given the current challenging economy, is it a good time for the school to be raising funds? Why the urgency? There are several key reasons why it is in the community’s best interest to move forward with this project and fundraising:
- Our current facility rent of $250,000 annually has no cap regarding future increases. The lease expires in 2.5 years, so we must move into the new school by summer 2011.
- Local property values have declined significantly over the past year; in today’s market we can purchase school property at a good value.
- Current interest rates would establish our loan at half the market rate for 30 years, significantly reducing mortgage costs and freeing up operating funds for additional programs and teacher salaries.
- The state financing agreement dictates YRCS does not pay the established mortgage until one year after building completion. This means nearly $250,000 will be returned to the operating budget during our first year of occupancy.
- The energy efficiency of the new building will provide substantial cost savings.
- The state has a first-come, first-serve contingency budget for project overages. We will have access to this contingency money by completing our building project in a timely manner.