Growth Options for New SchoolsSpring 2007

January 2007 2

Our objective today is to make “greenlighting” decisions on three propsective new school sites.

All three properties: are located within existing clusters Are leased parochial school facilities in fairly good

condition Score quite high on Aspire’s decision rubric Breakeven in the first year Have relatively minor risks that can be managed

(mostly related to chartering and timeline)

January 2007 3

In September, the Executive Committee agreed upon a greenlighting process and timeline. (Unfortunately we are already behind the ideal schedule on all three properties.)

Build or renovate

REASSESS AND EVALUATE IF:

Prepare and Obtain Charter

• Determine charter approach

• Submit application

Secure Start-Up Funding

• Apply for CDE and Walton funding

• Meet CDE performance benchmarks

Hire principal Hire teachers Enroll students

Apply for Charter # and CDS #

• Follow-up with CDE• Disseminate CDS # and

charter # to district, HO, RVP, and principals

• Source potential facilities

• Ensure adequate space for program

• Negotiate and sign lease/contract

Identify and

Secure Site

Green-light if complete by:T- 9 mos if lease; T – 3 years if build

Secure financing

• Secure financing• Ensure occupancy

costs of <10% of ADA revenue

• Sign contractors• Develop construction documents• Attain building permits• Ensure key construction milestones are met

Green-light if on-track to complete by T-2 weeks

Check if complete by:T- 6 mos

Check if complete by:T- 1 mo

Check if complete by:T- 1 mo

Green-light if complete by:T- 6 mos

Green-light if complete by:T- 3 mos

Check if complete by:T- 2 mos

Facilities Lease not signed by T-

9 mos Occupancy costs

exceed 10% of ADA Failure to meet key

construction milestones

Failure to receive zoning or permits needed

Financials Enrollment

configuration is off-model

Projected scale-up costs exceed projected start-up philanthropy

Anticipated grants are not received

Charter Process Separate charter

deemed not likely before opening of school

Failure to meet any chartering milestones

District changes to terms

Green-light if complete by:T - 7 mos if lease;T – 30 mos if build

Develop financial

model

• Ensure student demand

• Ensure scale-up is appropriate

Green-light if financial targets are met

Aspire New School Green-lighting Process

January 2007 4

Aspire Enrollment

3,068 3,554 3,9564,901 5,341

532

2003-2004 2004-2005 2005-2006 2006-07 2007-08

Collectively, the new sites will result in Aspire growing 20% or nearly 1000 students – significantly more than the originally-projected 9% growth of 440 students from purely “organic” expansion of existing schools.

Dec 06 Projecti

on (organic)

April 07 Projection (organic +

3 new)

Increase in # of

students:

440 972

% increase:

9% 20%

Impact of new campuses

January 2007 5

TRINITY LUTHERAN: potential small elementary

Trinity Lutheran, currently occupied by Aspire’s Rosa Parks Academy as a temporary location pending August 2007 completion of the Prop 47-funded permanent facility, is available as a long-term lease.

Criteria Score

Mission: Student Need 2 Of 2

Mission: Likelihood of catalyzing change

1 Of 1

Contribution to facilities portfolio target

1 Of 2

Ease of quality control 2 Of 2

Availability of philanthropic funding 2 Of 2

Favorable chartering environment 0.5 Of 1

TOTAL 8.5 of

10

Sources of start-up fundsCDEWalton

Key Hurdleso Secure lease (target: May

1)o Identify as state charter o Hire principal (internal likely

by May 1)

Major advantages Adds to Stockton cluster Provides an additional

option to the many families on waitlists at UPS, ROCS and RPA

January 2007 6

LA Baptist: potential small elementary

LA Baptist, located just a few blocks from Aspire’s 2 AMLA campuses, is now available through PCSD.

Criteria Score

Mission: Student Need 2 Of 2

Mission: Likelihood of catalyzing change

0.5 Of 1

Contribution to facilities portfolio target

1 Of 2

Ease of quality control 2 Of 2

Availability of philanthropic funding 2 Of 2

Favorable chartering environment 1 Of 1

TOTAL 9.5 of

10

Start-up grantsCDE (realloc existing grant)Walton

Key Hurdleso Secure sub-lease (target:

May 1)o Identify as state charter o Hire principal (internal

possible by May 1)

Major advantages Adds to LA cluster where

facilities are scarce Ensures Centennial can

feed from Aspire schools

January 2007 7

St. Benedict: potential temporary site for 66th Ave students; future small elementary

St. Benedict can be used as a temporary location for a secondary feeder for Millsmont until the completion of the Prop 47-funded 66th Avenue facility; then used as a second K-5 feeder to 66th Ave.

Criteria Score

Mission: Student Need 2 Of 2

Mission: Likelihood of catalyzing change

1 Of 1

Contribution to facilities portfolio target

1 Of 2

Ease of quality control 2 Of 2

Availability of philanthropic funding 2 Of 2

Favorable chartering environment 0.5 Of 1

TOTAL 9.5 of

10

Start-up grantsCDE (may not be eligible) WaltonGates

Key Hurdleso Secure lease (target: May

1)o Secure material revision to

Millsmont charter

Major advantages Adds to Oakland cluster Provides a feeder for

Millsmont earlier Increases opportunity to

test Theory of Change

January 2007 8

Which projects should be green-lighted?

Trinity Lutheran, Stockton

LA Baptist, Huntington Park

St. Benedict, Oakland