Investors & Funders: JP Morgan Chase

In the summer of 2010, IFF received a generous $9.5 million investment from JPMorgan Chase through the New Markets Tax Credit (NMTC) program. The NMTC program permits taxpayers to receive a federal income tax credit for making qualified investments in entities like IFF that then use the funds to invest in projects in low-income communities.  In the past year, IFF has deployed those funds to provide low-cost financing to support the expansion of the following charter schools in Illinois, Indiana, and Wisconsin:

• The Bloomington Project School in Bloomington, Indiana.  IFF’s $1.16 million loan enabled the school to renovate its leased space, purchase instructional and technological equipment, and add 9,000 square feet to accommodate growth.
   
• The Project School in Indianapolis, Indiana.  IFF’s $1.5 million loan supports the charter school, which is part of a larger $3.7 million redevelopment plan.
   
• Seeds of Health in Milwaukee, Wisconsin.  IFF’s $4.28 million loan allowed Seeds of Health to purchase a facility for MC2, its new virtual charter school, and to consolidate and favorably refinance loans on multiple campuses in its network.
   
• Patriot’s Gateway Community Center in Rockford, Illinois.  IFF’s $1.06 million loan is part of a package to make additional improvements and provide permanent financing for Chicago International Charter Schools’ 40,000 square foot campus in Rockford.
   
• Indiana Schools of Excellence in South Bend, Indiana.  IFF’s $1.5 million loan will allow ISE to own the space it currently leases for its Xavier School of Excellence.

Illinois: Instituto Heath Services Career Academy

Instituto del Progreso Latino recently purchased and is renovating an 80,000 square foot facility in Chicago's Pilsen neighborhood. The $22.5 million project will house the Instituto Heath Services Career Academy (IHSCA) charter school, which will accommodate 600 students upon full enrollment.

IFF's Real Estate Services group worked with Instituto in 2008 to provide project feasibility and site search assistance for the IHSCA. In 2011, IFF continued its work with Instituto by providing a federal credit enhancement grant of $470,000 to serve as debt reserve for a $4.7 million loan from Harris Bank.  Instituto also received a $12 million capital grant from the Illinois Department of Commerce and Economic Opportunity and $5 million from the sale of New Markets Tax Credits provided by the Chicago Development Fund and Local Initiatives Support Corporation (LISC).  

IHSCA offers a pre-college College Readiness Standards curriculum with a career pathway in health care aligned with the National Health Sciences Curriculum.  Classroom work will be integrated with meaningful work internships in the health care field.

Indiana: Indiana Schools of Excellence

Indiana Schools of Excellence (ISE) in South Bend, Indiana is one of IFF’s borrowers that benefited from the recent JPMorgan Chase investment.  ISE came to IFF wanting to acquire the facility it was leasing, a former furniture store in a very low-income census tract.  Through IFF’s seven-year, interest-only loan of $1.5 million and a subordinate loan from the leaseholder, the Charter School Development Corporation, ISE was able to exercise its option to purchase the facility several years early, providing savings on future lease payments and lowering its total facility debt service payments to less than 10 percent of its current budget.

The site is home to the Xavier School of Excellence which serves 400 students, grades K-7.  The Xavier School of Excellence offers a blend of basic education, technology integration, foreign language offerings, and community involvement.  Xavier School of Excellence was founded by a group of concerned parents and community members to provide a high quality, yet affordable school to meet the educational needs of South Bend families.

Missouri: South City Preparatory Academy

To open on time for the 2011 school year, South City Preparatory Academy in St. Louis needed to make certain renovations to the former school building it was leasing, including the addition of a lift, an upgraded fire alarm system, and other improvements to the existing classrooms.

The property, located at 2900 South Grand Avenue falls within the 63118 zip code.  According to IFF’s report Public School in St. Louis: Place, Performance, and Promise, 63118 has the second highest need for performing high school seats in all of St. Louis.  Providing South City Prep with the $150,000 loan it needed to open on time, will also bring a quality school operator to the children living in that high-need St. Louis neighborhood.

With the help of IFF, South City Prep was able to secure the lease on their building and begin construction in late April. The school is scheduled to open in August of this year and hopes to enroll 130 fifth and sixth graders by that time.  South City Prep is a free, public school open to any St. Louis city family. 

Head of School, Mike Malone, recently expressed his gratitude for IFF’s support using the social media site Twitter.  Malone tweeted his thanks to IFF saying, “Closing on our loan in a few minutes! Couldn't open our school without you!”  For updates on this and other projects, follow IFF on Twitter @IFFcdfi.

Public Policy: Making Surplus Buildings Available to Charter and Choice Schools

On Monday, May 23, Governor Scott Walker of Wisconsin signed into law SB 20, authorizing the City of Milwaukee to sell or lease surplus buildings operated by Milwaukee Public Schools (MPS).  IFF strongly supported this legislation and testified in support of it before the education committees in both the State Senate and Assembly.  IFF’s report Choosing Performance: An Analysis of School Location and Performance in Milwaukee recommended that vacant MPS buildings in high-need areas should be used to attract quality charter and choice schools to serve the children in those neighborhoods.  As a result of this new law, more than 1.5 million square feet of currently empty school space may now be available for use as schools.

IFF thanks the members of the Wisconsin State Senate and Assembly who supported this important legislation, and especially State Senator Alberta Darling and Milwaukee Common Council President Willie Hines, Jr., who helped bring this issue to light.