Fielding Nair International and EdVisions Schools
Feasibility Report Update - Summary

(Download complete update here )

Introduction. Cover letter and 10 reasons why this project is vital to the best interests of the Key Biscayne community.

Key Biscayne Youth Population Estimates. Based on the Census 2,000, estimates from the University of Florida , 2007 Key Biscayne Master Plan Evaluation and Appraisal Report, and conservative estimates for the 2005 - 2008 period, the report estimates there are approximately 3,428 residents in the 1 - 19 age range.  See analysis.

Key Biscayne Children in high school age. Based on reports from Miami-Dade County Public Schools and estimations of enrollment in the private schools, the estimated number of Key Biscayne residents in high school age is in the 808 - 936 range, or an average of 872. See report.   

Updated budget: Incorporates new expenses, including costs to implement an IB program, excludes parents and private contributions or any other form of potential funding (such as naming rights and after school programs).

School operations are self-funded without parents or private contributions. However, additional contributions from PTSA and afterschool programs would be pursued and used for enhanced programming.

Facilities costs are to be amortized by the Village the same way as the construction of the Community Center was funded. After all, the school becomes a community asset as a school and lifelong learning center for residents of all ages. For the purpose of feasibility, consultants estimated a $7M capitalization which, in case of being funded by taxes, would cost less than $100 per year to a $1M valued property (or less than $50 to a $500,000 property). This number has been validated by the Steering Group and considered to be within a realistic range, even in the high end for some options being evaluated. 

Consultants estimate incremental revenue due to appreciation of property values will more than offset capitalization payments.  A conservative 5% appreciation over 5 years would produce  approximately $9.5 million in cash flows to the Village over the term of the loan.  See details and support information.

Report contains copies of studies performed in other communities around the US showing a positive impact of schools in real estate property appreciation. (see impact of schools in property prices)

See complete budget and notes.

Additional comments to report: Read here.

Cover letter

March 4, 2009

Mr. Chip Iglesias, Village Manager
Village of Key Biscayne Community Center
10 Village Green Way
Key Biscayne, FL 33149

Re: Clarifications to Feasibility Study

Dear Mr. Iglesias,

This submission is pursuant to the Council’s requests for additional information to supplement and update the data provided by us in the Municipal Charter High School Feasibility Study.

A summary document is attached that addresses each question raised by the Council during the February 26th. 2009 workshop. This is followed by related supporting documents.

We would like to reiterate that the Municipal Charter School would be an invaluable asset to the Village of Key Biscayne. The financial information shows that the school’s operations are, basically, self-funded and fully sustainable over the long term. While it is true that the Village will have to provide the facilities funding, this amount also would be fully and quickly amortized by virtue of the increased property values.

I would like to take this opportunity to re-emphasize the points I had made at the workshop to illustrate why this project is vital to the best interests of the Key Biscayne community.

I. It will allow the Village to leverage its modest investment to generate over $6,000/student in revenue from the Miami-Dade school system.

II. It will allow the Village to control a vital part of its own destiny – the education of its children and future citizens of the community, the nation and the world. This is consistent with the history of the Village for self governance and its remarkable ability to build a prosperous and vibrant community while overcoming objections and hurdles far greater than those it faces to establish a charter school. Examples are the establishment of the Village itself and, more recently, the development of a superb Community Center.

III. It will result in significant increases in property values – by some estimates homes on the Island could see values rise by as much as 10% as a direct result of creating a world-class Charter school.

IV. It will directly benefit parents and children who live on the Island who now have to send their children to schools outside the Island – often at exorbitant cost.

V. It will directly benefit community members who have no children in school by providing an added asset in the areas of adult education, distance learning and other facilities currently unavailable on the Island.

VI. It will reduce traffic to and from the Island and result in a positive contribution to the problem of greenhouse gases. The school will also provide many other opportunities for the community to express its support for sustainable design and the use of renewable energy.

VII. It will utilize the latent potential of the Village which has a population of highly qualified retirees whose vast experience and wisdom can be tapped toward the delivery of world-class education programs at the school.

VIII. It will increase revenues for the Village because students and parents will now create additional demand for local goods and services with monies that were previously being spent off the Island.

IX. It will allow the Village of Key Biscayne --- already well-known as an Island Paradise, to further enhance and update its image – this time for being an educational leader and for creating a world-class school for a fraction of the funds that many other communities spend. Whereas Key Biscayne is relatively well known today, the establishment of this Charter School will raise its profile so that it becomes an International icon for excellence.

X. It will become a catalyst for reenergizing the community and building a new community spirit. This will happen by having students participate actively in community service projects while inviting parents and, indeed, the whole community to become actively involved in the important task of educating children. In this manner, the community will build the school but at the same time, the school will build the community.

With this submission, FNI’s work on this contract is now officially complete. Please don’t hesitate to contact me if you have any questions. I would like to thank you, Jud and all the residents of Key Biscayne for giving me the opportunity to participate in this exciting and inspiring project.

Sincerely,

Prakash Nair

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