| Notes |
Board Meeting Date: November 3, 2021
Prepared by: Ken Witt
Title of Agenda Item: (IV. D) Merit Academy Construction Loan
Item Type: X Action □ Information □ Discussion
Background Information, Description of Need:
The BOCES authorized three brick-and-mortar schools last year, which opened in Fall 2021,
among them Merit Academy. The school opened in temporary space while building out a longer
term lease space. The school has had a surprise increase in construction costs in excess of
$100K, and needs to accelerate payment for construction before adequate PPR revenues are
received during the year. The BOCES would like to extend a construction loan in the amount of
$150,000, to be repaid over 2 years starting in January, at a modest interest rate of 3.5%.
Relevant Data and Expected Outcomes:
The school is seeking to obtain $300,000 in construction expense assistance. The BOCES seeks
board approval to offer a loan for half of that, $150,000. This exceeds their construction budget
for the year by a little over $100,000, so a 2 year loan term is most appropriate, as the BOCES
does not wish to provide long term construction financing.
Recommended Course of Action/Motion Requested:
We request a motion to approve the construction loan for Merit Academy as presented. |