Detroit Service Learning Academy

Slide9Detroit Service Learning Academy received a charter from Lake Superior State University and began its operation in the fall of 1999 as a public school academy under the name of “YMCA Service Learning Academy” enrolling 691 students and offering grades kindergarten through fifth grade.  The Academy added grades sixth through eighth the following year, to offer grades kindergarten through eighth.  In 2007, the Academy terminated its relationship with the YMCA and officially changed its name to “Detroit Service Learning Academy” in 2008.  The Academy’s 2011-12 enrollment as of the Fall count date, is 1,158. The Academy is the first public school academy in the State  of Michigan to receive the School of Excellence title.

The Academy’s current school facility is located on a 7.6 acre site in Detroit, Michigan.  There are two school buildings on the site.  The first building, the Main Building has approximately 71,000 square feet of space over two floors and serves grades 3-8. The second building, the Auxiliary Building has approximately 34,000 square feet of space. The Auxiliary Building was purchased in 2008 and has been renovated by the Academy over the last two school years to add classrooms and other instructional support rooms.

Clear Scope presented to the Academy the opportunity to refinance the 2001 Bonds. Clear Scope  helped to optimize this opportunity, by recommending the Academy Board quickly approve a reimbursement resolution. This allowed the Academy to pay for recent capital improvement costs from bond proceeds, resulting in the Academy retaining $1,000,000.  Clear Scope was able to complete this refinancing in 2 months, allowing the Academy to quickly benefit from the $548,000 or 5.22% net present value savings. Based on the recommendation of Clear Scope, the Academy elected to issue the Bonds through MFA in order to take advantage of the appropriated dollars. The Academy was able to use $500,000 of appropriated funds from the States of Michigan to fund their debt service reserve fund. Funding the reserve with appropriate funds decreased the amount the Academy had to borrow effectively creating a zero percent loan for the reserve amount.

Clear Scope Advisors worked with the Underwriter to structure the financing to appeal to investor and meet the Academy needs. The Underwriter undertook a strong sales effort and was able to secure investors. The transaction was a 25 year, fixed rate, BBB- rated financing with an average coupon of 6.92%.

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