Friends officials issue first progress report
A one-page progress report delivered to City Council members May 15 by a consultant newly hired to reignite efforts to finance the Friends Christian High School on 32 acres of city land didn’t mention when the past-due lease payments will be brought up to date.
The report was required by a 3 to 2 council vote as part of an extension granted before acting on a default notice sent Yorba Linda Friends Church for $421,312 for payments due the city. Three more reports are mandated for June 19, July 17 and Aug. 21.
School officials cut a $50,000 check for the city last month, which, when pooled with $50,000 already deposited with the city, met the council’s condition for an immediate $100,000 cash payment to forestall action on terminating the 99-year lease agreement.
The first report listed 15 progress points under four categories, including five under “project financing.” One of the latter points indicated officials are looking to initiate a new fund-raising campaign and are discussing the current allocation of funds.
Also, importantly, school officials state they’ve “submitted and discussed” the “latest financials” to a potential bond underwriter and “prepared a roadmap of required steps to secure either tax-exempt school bonds or market-rate bonds….”
In addition, officials are coordinating a “project update” for Yorba Linda Friends Church members, and they’ve “initiated formation of city resident teams within the congregation for outreach and messaging.”
The original ground lease for the property fronting Bastanchury Road near Casa Loma Avenue was signed in 2003 and amended four times, from 2003 through 2006. A joint-use pact to share recreational and athletic facilities with the city was signed in 2005.
The school has paid more than $3 million in lease charges through 2011 and invested more than $9 million in tenant improvements to the property. School officials say lease payments over 99 years would exceed $253 million, unless contract terms are modified.
Mel Malkoff, the school consultant hired last month, has spent 38 years in development and management, including as developer and project manager of Saddleback Church, Cottonwood Christian Center, Rancho Community Church and other church-school projects.
In a related item, Rick Kempton, who has been associated with the Friends Christian School system since 1984, the last 20 years as superintendent, announced he starts in July as head of the Annapolis Area Christian School in Maryland.
Kempton, who started his education career in 1973 at the Orange Unified School District as an English teacher, takes over the three-campus, 847-student Christian school from the previous superintendent, who resigned after accusations of a “hostile work environment.”
A Final Note: The 2012-13 “tentative calendar” in the Placentia-Yorba Linda school district has 177 instructional days, which could be reduced to 175, “depending on the outcome of the November tax initiatives” or “if district revenues are reduced further,” a school official noted.
A three-day cut from 180 days saves $2.2 million, five days $3.7 million.
The report was required by a 3 to 2 council vote as part of an extension granted before acting on a default notice sent Yorba Linda Friends Church for $421,312 for payments due the city. Three more reports are mandated for June 19, July 17 and Aug. 21.
School officials cut a $50,000 check for the city last month, which, when pooled with $50,000 already deposited with the city, met the council’s condition for an immediate $100,000 cash payment to forestall action on terminating the 99-year lease agreement.
The first report listed 15 progress points under four categories, including five under “project financing.” One of the latter points indicated officials are looking to initiate a new fund-raising campaign and are discussing the current allocation of funds.
Also, importantly, school officials state they’ve “submitted and discussed” the “latest financials” to a potential bond underwriter and “prepared a roadmap of required steps to secure either tax-exempt school bonds or market-rate bonds….”
In addition, officials are coordinating a “project update” for Yorba Linda Friends Church members, and they’ve “initiated formation of city resident teams within the congregation for outreach and messaging.”
The original ground lease for the property fronting Bastanchury Road near Casa Loma Avenue was signed in 2003 and amended four times, from 2003 through 2006. A joint-use pact to share recreational and athletic facilities with the city was signed in 2005.
The school has paid more than $3 million in lease charges through 2011 and invested more than $9 million in tenant improvements to the property. School officials say lease payments over 99 years would exceed $253 million, unless contract terms are modified.
Mel Malkoff, the school consultant hired last month, has spent 38 years in development and management, including as developer and project manager of Saddleback Church, Cottonwood Christian Center, Rancho Community Church and other church-school projects.
In a related item, Rick Kempton, who has been associated with the Friends Christian School system since 1984, the last 20 years as superintendent, announced he starts in July as head of the Annapolis Area Christian School in Maryland.
Kempton, who started his education career in 1973 at the Orange Unified School District as an English teacher, takes over the three-campus, 847-student Christian school from the previous superintendent, who resigned after accusations of a “hostile work environment.”
A Final Note: The 2012-13 “tentative calendar” in the Placentia-Yorba Linda school district has 177 instructional days, which could be reduced to 175, “depending on the outcome of the November tax initiatives” or “if district revenues are reduced further,” a school official noted.
A three-day cut from 180 days saves $2.2 million, five days $3.7 million.
posted by Jim Drummond at 12:00 AM
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