The Teaneck Community Charter School (“TCCS”), a NJ not-for-profit 501(c)(3) organization established in 1997 as a result of a grassroots effort by a diverse group of committed and determined parents and educators. The first year of operation for TCCS was 1998-1999 when 96 Kindergarten thru 5th grade students attended. Today, TCSS enrolls over 306 students in grades K thru 8th, has a substantial waiting list, and has been recognized by the New Jersey State Department of Education with the granting of its third five-year charter.
As TCCS enrollment grew, it sought to move from its existing leased facilities and to acquire and/or construct a new educational facility for the benefits of its students.
Solution and Execution
GATES Capital was engaged to underwrite a $10,000,000 tax-exempt revenue bond issue through the Bergen County Improvement Authority on behalf of TCCS. Bond proceeds were used to finance (i) 100% of costs of acquiring, designing, developing, constructing, furnishing and equipping a former industrial property for use as the school’s primary facility (ii) interest payable on the bonds during the construction period and (iii) all related costs of issuance.
The Bonds were structured as long-term, fixed-rate bonds and were privately placed with one institutional investor. The structure and the expertise GATES Capital brought to bear provided TCCS the ability to close and fund the issue despite the many environmental challenges that former industrial properties can pose.