4/18/2005
Media Contact:
Steve Campbell, [317] 327-3622
Jo Lynn Garing, [317] 327-3690 |
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Mayor announces Indianapolis Bond Bank's charter school facility financing program
INDIANAPOLIS - Mayor Bart Peterson today announced the creation of the Indianapolis Charter Schools Facilities Fund, the nation's first city-developed, comprehensive charter school facility financing program.
The fund, which will be administered by the Indianapolis Local Public Improvement Bond Bank, is the result of a partnership among the City of Indianapolis, the Bond Bank, the Annie E. Casey Foundation (AECF), the Local Initiatives Support Corporation (LISC) and Bank One. The program will make up to $20 million in loans available to qualified charter schools sponsored by Mayor Peterson. Charter schools can borrow tax-exempt debt for the acquisition, construction, renovation and leasehold improvements of facilities. Charter schools will pay lower rates on these loans because of the backing of the city and $2 million of guarantees provided by AECF and LISC.
Although charter schools are public schools, they do not receive any public sector funds for facilities.
"Financing a facility is one of the biggest challenges faced by charter schools," said Mayor Peterson. "The Indianapolis Charter Schools Facilities Fund provides schools with an affordable financing option. We are grateful to the Annie E. Casey Foundation and LISC for their generosity and creativity in helping to develop this financing program."
"AECF is pleased to be part of this public-private partnership to improve public education in Indianapolis by supporting charter school facilities financing," said Bruno Manno, Senior Associate for Education at AECF. "Our $1 million program-related investment will leverage as much as $20 million for our partners and will increase the educational options available for families. These schools will help strengthen families and neighborhoods in Indianapolis."
"LISC is proud to be part of this innovative public-private partnership to help quality public charter schools in Indianapolis with their facility needs," said Barbara Page, Director of LISC's Educational Facilities Financing Center. "LISC is extremely pleased that its Educational Facilities Financing Center funds, together with funds from the Annie E. Casey Foundation, will be instrumental in giving the city the security necessary to extend its moral obligation pledge to $20 million in facility debt for Mayor-sponsored charter schools in the city. Such support will provide quality educational alternatives to families and strengthen the neighborhoods in which they live."
A comprehensive application process has been developed for the Indianapolis Charter Schools Facilities Fund. Mayor-sponsored charter schools are eligible to apply, and the Bond Bank is now accepting applications. For more information about the program or to receive a copy of the application, please call Jennifer Weflen, Deputy Director of the Bond Bank, at 327-4220 or Corrie Conner, Indianapolis Charter Schools Assistant Director, at 327-3602.
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