At the last Master Planning Committee Meeting the Committee voted to recommend to the Board to approve renovating the full Administration Building for SY2023-24, subject to the Finance Committee's recommendation regarding financial feasibility. The pricing for this project reflected the following:

1. Strategy to borrow 18 months' interest during/after construction.  This would be done to help ESMA's FY23, FY24, and FY25 Budget to be in surplus, and build up ISBE-required cash reserves.  These benefits come at the cost of increased debt.
2. Adjustment of interest-rate assumption to be 5.50% - reflecting turmoil in capital markets, and expected increases to short-term interest rates by the Federal Reserve throughout 2022.  This may prove an over-conservative assumption.
3. Increased construction cost assumptions.  Construction inflation has been running at an annual 13% rate due to rising energy prices, labor & material costs.  

The basic budget for the overall borrowing as estimated in winter 2022 as follows

Rough Uses of Funds 

1.  $7,040,000 payoff of existing IFF loan as of February 2023.

2.  $4,351,000 - additional cost of doing entire Administration Building

3.  $2,009,000 - financing costs, including borrowing 18 months initial interest (and reflecting assumed $500,000 CDFI credit enhancement funding).

4.  $100,000 reimbursement for summer 2022 capital items

Total:  $13,500,000 in borrowing (plus $500,000 assumed Credit Enhancement).

Administration Building Budgeting is under review based on two-grade use of the Admin Building planned, and other factors.  The budget for the plans developed in 2019-20 for the Admin Building:

A.  $3,601,197    Cost Estimate using a per-square foot take-off method, given recent construction inflation

B.  $0                 Additional cost of Owner's Rep services (COO performs this function)

C.  $100,000      A/E costs for program redo (MEP changes no cost); also, construction administration

D.  $100,000      Environmental cleanup (windows, floors, possible pipe insulation) 

E.  $125,000       Technology.  (Security camera system, intercom system, phones, AI, non-erate portion of LV)

D.  $75,000        New furniture.  We do have much of the science lab furniture, but little else.

E.  $50,000        Pathway improvements

F.  $300,000      Contingency

$4,351,000        Total for Admin Building

EMSA must go to the bond market to finance this type of construction project.  There is always a possibility bond financing timing will not work with EMSA's schedule to resume K-8 classes in August of 2023.  What are our options?  What would be acceptable to EMSA staff and families and affordable?

There are two researched alternatives to the Administration Building, in the event bond financing is not feasible:

1.  Reconfigure the elementary building to add a grade level.  This would mean reducing the size of the Kitchen and building out ML/Intervention service areas in the saved space; relocating the main entrance desk and using that space for both a new office, and an expanded Sped room - along with enclosure of the Kinder vestibule.  Researched cost in winter 21-22 was $300,000.  It would likely be closer to $340,000 by SY22-23, based on construction inflation well above 10% annually.

2.  Purchase a two-classroom mobile building to be located on the former Dorm site, near to the Middle School.  This would require site preparation and electrical connection.  The students would use the Middle School bathrooms.  Researched cost was about $437,000 in winter 21-22.  It would likely cost closer to $500,000 by SY22-23, based on construction inflation well above 10% annually.

Passion Projects--EMSA's 5th and 6th graders will be championing various projects that increase students exploration/recreation opportunities with a sensitivity toward the existing EMSA ecosystems.  EMSA has indicated that it will fund (at a reasonable level, i.e., around $2500 max) the winning project idea.  However, there may be other projects that we'd like to undertake as well.

• What are some student projects that overlap with our existing desire to address/improve?
• What amount of funding is available?  
• What can be the process to proceed with a project?
• How do we support student participation?

Friday Field Studies implementation for next year?  

Path/trail building--May 20 1:30-3 students and volunteers will be working on the Ravine Path.

Update on status of proposed summer construction projects.  

See attached chart (work in progress as some subcontractors are slow to price, have proposals incoming

).