The committee reviewed the decision to move forward with fit out of the former tenant space at a total cost of $457,000, including demolition (about $100/sq ft.).  The school has already approved $100,000 for demo and abatement in a previous change order.  Bill and Meghan discussed the planned use of the former tenant space (classroom and office space that is somewhat flexible for changes in future use, if needed).  Bob and Jason noted that doing this work now will be less expensive than doing it at a later date.

The committee discussed options, given the size and timing of the change order, including determining if the bank is willing to relax the contingency requirement, putting in additional equity from the school, or going back to construction team to determine if they are willing to release any of the allowances and holds at this point, or some combination of these. Meghan shared an update on cash flow and equity position, which is very strong ($200,000 stronger position than anticipated; projecting $950,000 surplus, which means we would have more than 3 months of operating reserves at FY22 levels even with an additional equity contribution of $150,000). 

Bill also discussed the planned outdoor space modification, which is the only scope change left, and which will be ready for board consideration in February.  This involves adding turf, creating a more organic design, adding in outdoor learning and teacher work space. Bob explained that he believes we will likely be able to use contingency funds for this without needing to contribute additional equity. 

Meghan reviewed the monthly financials and gave highlights:

Meghan noted that we are not yet seeing Springfield Prep Realty numbers because she is working on finalizing the accounting of the construction closing.  She explained that the school is working with Central Source and AAF to essentially audit transaction now instead of waiting until July.