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SRCA approves plans for $15 million facility BY J ESSI STONE N EWS E DITOR hining Rock Classical Academy, a public charter school in Waynesville, will be moving forward with plans to construct a $15 million K-12 school facility on the corner of Russ Avenue and Dellwood Road. SRCA has been searching for a permanent home since it began operating in 2015 but hasn’t been able to find a suitable piece of property that would accommodate its needs. Classes were first held in a building on Lake Junaluska Assembly’s property and then the school worked out a lease agreement for a piece of property adjacent to the lake on Dellwood Road — still owned by the assembly — and placed three modular buildings on the site. The K-8 school has been operating out of those modulars for the last few years, but the student population is quickly outgrowing the space, according to Head of School Josh Morgan. During a June 24 meeting via Zoom, SRCA board of directors unanimously approved the architectural designs and preliminary budget for the new school presented by design-build partner, BC Construction Group (BCCG). Performance Charter School Development will be providing financial resources to purchase the 13-acre property and finance the construction. “I believe that this presentation represents the best chance for us to have long-term
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school in a great location,” said SRCA board Vice Chair Mike Mehaffey. According to the architectural plans, the new facility will be a two-story concept to accommodate up to 650 students, a number the board is hoping to reach by fiscal year 2023. The 48,000-square-foot campus will also include a full-size gym — something the temporary campus has not had — a stage and outdoor instructional spaces. Morgan told the board how impressed he was regarding the scope and volume of work completed by BCCG since the board signed a letter of intent with the company back in April. “The amount of work that they have completed to reach this preliminary step is impressive,” Morgan added, “The floor plan that is being presented addresses what was asked of their design team from the meeting they conducted with our teachers after the letter of intent was signed earlier this year.” According to BCCG’s estimations, construction will cost about $13.2 million with $713,000 set aside for contingency; $678,000 for contracting fees; $414,000 worth of interest costs and $950,000 for bond closing costs. The total project cost is $14.9 million, but a bond issuance would put the total cost for the school at just over $18 million. With a 6.5 percent interest rate, SRCA would be taking on a $1.2 million annual payment for the project on top of an already hefty debt load it took on to build
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Shining Rock Classical Academy has approved plans to move from its temporary location on Dellwood Road to a new permanent facility by next August. A Shot Above of WNC photo the temporary campus just down the road. Morgan said BCCG’s timeline had the school being complete and ready for classes to start in August 2021. The board will have to start making rent payments to Performance CSD at that time. SRCA will have the option to purchase the property from the owner during the term of the lease. Morgan said the board should begin looking at purchasing the property by the 2022-23 school year in order to save money. Options include a low-interest
“This is very exciting and provides our school with the space to grow and meet the needs of our community.”
Smoky Mountain News
— SRCA Board Chair Michelle Haynes
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loan from the U.S. Department of Agriculture or going after a bond. “That gives us plenty of time to go through the USDA loan process with a 2 percent interest loan instead of 6.5 percent,” he said. “That could shave $100,000 or more in savings.” This isn’t the first time SRCA board of directors has attempted to finalize plans for a permanent home. The board was working with Schoolhouse Development LLC in late 2019 to develop similar plans on the same piece of property, but the board backed out of the $13.4 million project when the school’s open enrollment numbers came in much lower than expected. While 428 students signed up to start SRCA in fall 2019, only 301 showed up for the school year during the first 10 days — that’s the number that determines the per pupil funding the school will receive from the state for the year.
The school will be using much of its state funding allocation to repay the project debt until it can secure a loan or bond, which means SRCA’s main goal for the next few years will be to grow enrollment, as board member Chad Carver pointed out during the meeting. As the board’s outgoing treasurer, Carver said he felt confident that the board could pull off the project cost. “Once we refinance to a bond or USDA, we can really afford it,” he said. “We have to look at what we do to increase enrollment and I think we’re on that path. We’re more stable than a year ago. We owe it to the whole community to take a risk to do this — this is what this board and this school planned to do and it’s the best opportunity we’ve had since our inception. I think we should do it.” Morgan said SRCA ended the 2019-20 school year with 309 students and is expecting an enrollment of 370 when classes start back this fall. Once the new K-12 school is completed, Morgan anticipates enrollment to reach 500, which would increase the school’s payments from the state to $3.4 million a year. For 2022-23, those enrollment projections reach capacity at 650 students. “This is very exciting and provides our school with the space to grow and meet the needs of our community,” said SRCA Board Chair Michelle Haynes. SRCA’s total budget for the 2019-20 school year was about $3.1 million. While Carver said the board was estimating a $180,000 shortfall at the beginning of the budget year, it appeared the school would be breaking even after all. The school’s revenues included about $2.2 million from the state, $810,000 from the county, $90,000 from the federal government, $33,000 in grant funding. In other business, the SRCA board approved renewing Morgan’s employment contract for another year and thanked him for his leadership during the last challenging school year.
