This document discusses a recent study on the performance of charter schools in Michigan. The study found that Michigan charter schools are significantly outperforming traditional public schools in the state. This contrasts with earlier national studies showing mixed results for charter schools. The document suggests that state policies supporting charter school autonomy and flexibility may contribute to better academic outcomes. It argues this demonstrates what other states and the country can learn from Michigan's approach to charter schooling.
2. www.edufundamerica.com
American
Charter
Development,
LLC
SCHOOLS AND EB-5
PERFECT!
Project Overview
Champs at Wellington and the Education Fund of America offer EB-5 investors a unique opportunity to invest in a government
funded privately managed public charter school. Public charter schools have proven countless times their ability to create jobs
and have demonstrated an ability to return investor funds, typically within three to four years.
Our school developer, American Charter Development, LLC (ACD), will be developing the CHAMPS at Wellington school to
open in the fall of 2014. The school will educate 580 students in kindergarten through 5th grade. ACD has already developed 24
charter schools and will construct another 20+ in 2014 school year. All ACD schools have been successful growing student
populations and creating many more jobs then were originally planned.
Direct EB-5 Project - Approvals Generally in 4-6 months
EB-5 funds to be repaid when the school
purchases their facility - planned for 48
months, or soon after all I-829 approvals.
Charter School – West Palm Beach, Florida
Government Payments
State pays tuition
$500,000 Direct EB-5 Investment
School in TEA
Quick Return of EB-5 Funds
Likely in 42 months
Only 3 EB-5 Investor openings
36 jobs will be created
Source of Investment
Funds Amount Percent
Project Equity 1,552,991$ 25.0%
EB-5 Investor 1,500,000$ 25.0%
Senior Debt 3,052,991$ 50%
Total 6,105,981$ 100%
SCHOOLS AND EB-5
PERFECT!
Project Overview
Champs at Wellington and the Education Fund of America offer EB-5 investors a unique opportunity to invest in a government
funded privately managed public charter school. Public charter schools have proven countless times their ability to create jobs
and have demonstrated an ability to return investor funds, typically within three to four years.
Our school developer, American Charter Development, LLC (ACD), will be developing the CHAMPS at Wellington school to
open in the fall of 2014. The school will educate 580 students in kindergarten through 5th grade. ACD has already developed 24
charter schools and will construct another 20+ in 2014 school year. All ACD schools have been successful growing student
populations and creating many more jobs then were originally planned.
Direct EB-5 Project - Approvals Generally in 4-6 months
EB-5 funds to be repaid when the school
purchases their facility - planned for 48
months, or soon after all I-829 approvals.
Charter School – West Palm Beach, Florida
Government Payments
State pays tuition
$500,000 Direct EB-5 Investment
School in TEA
Quick Return of EB-5 Funds
Likely in 42 months
Only 3 EB-5 Investor openings
36 jobs will be created
Source of Investment
Funds Amount Percent
Project Equity 1,552,991$ 25.0%
EB-5 Investor 1,500,000$ 25.0%
Senior Debt 3,052,991$ 50%
Total 6,105,981$ 100%
www.edufundamerica.com
Project Overview
Champs at Wellington and the Education Fund of America offer EB-5 investors a unique opportunity to invest in a government
funded privately managed public charter school. Public charter schools have proven countless times their ability to create jobs
and have demonstrated an ability to return investor funds, typically within three to four years.
Our school developer, American Charter Development, LLC (ACD), will be developing the CHAMPS at Wellington school to
Direct EB-5 Project - Approvals Generally in 4-6 months
Charter School – West Palm Beach, Florida
Government Payments
State pays tuition
$500,000 Direct EB-5 Investment
School in TEA
Quick Return of EB-5 Funds
Likely in 42 months
Only 3 EB-5 Investor openings
36 jobs will be created
Project Overview
Champs at Wellington and the Education Fund of America offer EB-5 investors a unique opportunity to invest in a government
funded privately managed public charter school. Public charter schools have proven countless times their ability to create jobs
and have demonstrated an ability to return investor funds, typically within three to four years.
Our school developer, American Charter Development, LLC (ACD), will be developing the CHAMPS at Wellington school to
open in the fall of 2014. The school will educate 580 students in kindergarten through 5th grade. ACD has already developed 24
charter schools and will construct another 20+ in 2014 school year. All ACD schools have been successful growing student
Direct EB-5 Project - Approvals Generally in 4-6 months
Charter School – West Palm Beach, Florida
Government Payments
State pays tuition
$500,000 Direct EB-5 Investment
School in TEA
Quick Return of EB-5 Funds
Likely in 42 months
Only 3 EB-5 Investor openings
36 jobs will be created
Project Overview
Champs at Wellington and the Education Fund of America offer EB-5 investors a unique opportunity to invest in a government
funded privately managed public charter school. Public charter schools have proven countless times their ability to create jobs
Direct EB-5 Project - Approvals Generally in 4-6 months
Charter School – West Palm Beach, Florida
Government Payments
State pays tuition
$500,000 Direct EB-5 Investment
School in TEA
Quick Return of EB-5 Funds
Likely in 42 months
Only 3 EB-5 Investor openings
36 jobs will be created
Direct EB-5 Project - Approvals Generally in 4-6 months
Charter School – West Palm Beach, Florida
Government Payments
State pays tuition
$500,000 Direct EB-5 Investment
School in TEA
Quick Return of EB-5 Funds
Likely in 42 months
Only 3 EB-5 Investor openings
36 jobs will be created
3. www.edufundamerica.com
American
Charter
Development,
LLC
Education Fund of America, LLC provides financing for schools that
Inspire Children. The Company is part of a corporate finance business
that provided over $5 billion (USD) to companies throughout the USA.
Because of it’s expertise, the company safeguards it’s 22 years of
successful history by only sponsoring schools for EB-5 investors
that are Safe, Secure, and Predictable.
This summary overview is qualified in its entirety by
the Private Placement Memorandum detailing all the
terms, conditions and forward looking statements.
Bond funds have been used to finance over $5 billion USD of charter schools
in the USA. Investor funds will not be returned prior to the I-829 adjudication.
I
T
f
t
T
t
R
U
T
r
p
B
i
Direct EB-5 USCIS processing time: 4 – 6 months
Regional Center USCIS processing time: 16+ Months
USCIS processing I-526 petitions from March 2012 – in Sept. 2013
4. www.edufundamerica.com
American
Charter
Development,
LLC
Risk
Mi'ga'on:
If
school
fails
to
create
10
jobs
for
an
investor.
We:
– Do
not
submit
that
school
project’s
I-‐829
– Move
investors
$500,000
to
a
new
school
– Submit
a
replacement
I-‐526
to
USCIS
– Prove
jobs
were
created
by
the
new
school
– Repay
EB-‐5
investor’s
$500,000.
ChampionCCCChChaha
CHAMPS at Wellington
The new school will be located in beautiful West Palm Beach, Florida
- about 75 miles north of Miami. There are 1.3 million people in Palm
Beach County.
The School will be a two story, 33,000 square foot facility located on
5 acres of land. The new school will be built with 30 classrooms, a
computer lab, multipurpose space, library, office spaces and a
teachers work area.
Investment Considerations
The school will be 100% financed by a bond
fund and those funds will be used to purchase
the land and construct the new school facility.
The EB-5 investors funds will be used to repay
the bond loan - classified as a bridge loan.
Repaying a bridge loan is an approved
ChampionCCCChChaha
CHAMPS at Wellington
The new school will be located in beautiful West Palm Beach, Florida
- about 75 miles north of Miami. There are 1.3 million people in Palm
Beach County.
The School will be a two story, 33,000 square foot facility located on
5 acres of land. The new school will be built with 30 classrooms, a
computer lab, multipurpose space, library, office spaces and a
teachers work area.
Investment Considerations
The school will be 100% financed by a bond
fund and those funds will be used to purchase
the land and construct the new school facility.
The EB-5 investors funds will be used to repay
the bond loan - classified as a bridge loan.
Repaying a bridge loan is an approved
USCIS activity.
The investor’s $500,000 is planned to be
returned when the school finances the
purchase of the school - using bond funds.
Bond funds have been used to finance over $5 billion USD of charter schools
in the USA. Investor funds will not be returned prior to the I-829 adjudication.
6. www.edufundamerica.com
American
Charter
Development,
LLC
Public
Charter
Schools
Are:
• Privately
Managed
-‐
Public
Schools
• Funded
by
State
Government
• Benefits
to
Parents
&
Children:
– Academic
excellence
– Inspiring
environment
9. www.edufundamerica.com
American
Charter
Development,
LLC
Job Creation & Students
8,300 students enrolled
553 jobs created
School&Name
1 Summit Academy
2 American Leadership Academy
3 Lincoln Academy
4 Ronald Reagan Academy
5 Thomas Edison Academy South
6 Mountainland Technology
7 Noah Webster Academy
8 Washington Academy
9 Odyssey Preparatory Academy
10 CS Lewis Academy
11 Dual Immersion Academy
12 Berean Academy
13 Mountainville Academy
14 Legacy Traditional Schools
15 Mosaica Academy
16 Champion Schools
17 Starshine Academy (Temporary Site)
Total Student Enrollment
Enrollment Enrollmen
Plan 2012
550 1,024
1,200 1,772
550 640
500 677
450 576
300 475
500 550
400 725
600 900
200 430
350 460
500 550
600 680
600 1,100
400 560
400 560
200 254
8,300 11,933
Our School Developer
10. www.edufundamerica.com
American
Charter
Development,
LLC
As
of
December
2012
11,933
students
enrolled
242 more jobs created
than were planed
School&Name
1 Summit Academy
2 American Leadership Academy
3 Lincoln Academy
4 Ronald Reagan Academy
5 Thomas Edison Academy South
6 Mountainland Technology
7 Noah Webster Academy
8 Washington Academy
9 Odyssey Preparatory Academy
10 CS Lewis Academy
11 Dual Immersion Academy
12 Berean Academy
13 Mountainville Academy
14 Legacy Traditional Schools
15 Mosaica Academy
16 Champion Schools
17 Starshine Academy (Temporary Site)
Total Student Enrollment
Enrollment Enrollment&
Plan 2012
550 1,024
1,200 1,772
550 640
500 677
450 576
300 475
500 550
400 725
600 900
200 430
350 460
500 550
600 680
600 1,100
400 560
400 560
200 254
8,300 11,933
795 Jobs Created
11. www.edufundamerica.com
American
Charter
Development,
LLC
5/18/13 8:18 AMMichael Van Beek: What Michigan's Charter Schools Can Teach the Country - WSJ.com
Page 1 of 3http://online.wsj.com/article/SB10001424127887323375204578271853227727678.html#printMode
See a sample reprint in PDF format. Order a reprint of this article now
OPINION May 17, 2013, 6:38 p.m. ET
By MICHAEL VAN BEEK
Public charter schools now serve 2.3 million children nationwide and enjoy growing bipartisan
support. But they are still loathed by teachers unions and traditional public-school officials more
interested in protecting their piece of the school-funding pie than in providing students trapped
in failing schools with a chance at a decent education.
Those familiar with the controversy over charters have probably heard of the 2009 study by
Stanford University's Center for Research on Education Outcomes. The Credo study, routinely
cited by groups opposed to school choice, analyzed charter schools in 16 states and found that, on
average, only 17% were outperforming conventional public schools while 37% were doing worse.
However, Credo noted that the study's results "vary strongly by state and are shown to be
influenced in significant ways by several characteristics of state charter school policies." These
include laws determining how many charters can operate in a state, who can authorize them, and
the level of autonomy these schools will have from certain state regulations.
Although largely ignored, this finding is especially relevant in light of a more recent Credo study
focusing solely on the performance of Michigan's charter schools. The findings, released in
January, portray Michigan's charter schools as a clear-cut success story and provide lessons for
other states.
Credo found that 42% of Michigan's charter schools are
outperforming conventional public schools in math and
35% of charters are outperforming in reading. Only 6%
of charters are underperforming in math and only 2%
in reading. Further, 82% of charters produced growth
in average reading test scores and 72% did so in math.
Dow Jones Reprints: This copy is for your personal, non-commercial use only. To order presentation-ready copies for distribution to your colleagues, clients or
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What Michigan's Charter Schools Can Teach the
Country
The secrets of reform success include liberal chartering rules and freedom from teacher tenure.
Michigan Study findings:
“After five years the average
charter-school student made
cumulative learning gains
equivalent to an entire additional
year of schooling."
5/18/13 8:18 AMMichael Van Beek: What Michigan's Charter Schools Can Teach the Country - WSJ.com
Associated Press
Detroit Midtown Academy teacher Rochell
Dunson works with students in 2008.
Of the 56 outcomes for different subgroups of students
and schools the study dissected, 52 showed charter-
school students outperforming their peers in
conventional public schools.
Perhaps the most notable finding was that from 2007-
11 the typical Michigan charter-school student made
annual academic gains in both reading and math
equivalent to about two additional months of learning,
compared with his or her peers in conventional public
schools. The longer a student stayed in a charter school
the greater the annual gains. After five years the
average charter-school student made cumulative
learning gains equivalent to an entire additional year of schooling.
As Cindy Schumacher, executive director of the Center for Charter Schools at Central Michigan
University, told the press after the Credo report was released, the report "shows that the Michigan
Model is working, with it leading to significant improvements for children, especially at-risk
children who are historically underserved."
The results were even more pronounced in Detroit, welcome news in a city where an estimated
47% of the adult population is functionally illiterate, according to the Detroit Regional Workforce
Fund. The typical Detroit charter-school student made annual gains worth about three additional
months of learning in both reading and math compared with their peers in nearby conventional
schools. Of the 100 or so charters in Detroit, 47% did significantly better than conventional
schools in reading and 49% did significantly better in math. Only one charter school in Detroit did
worse in reading compared with the city's district-run schools.
The Michigan Education Association, the state's largest teachers union, and other defenders of
the public-school status quo have tried to play down these results. Some point out that the Credo
study didn't include every charter school. In fact, the study included 86% of all charter-school
students in the state and remains the most comprehensive and rigorous study of Michigan charter
schools.
Wall Street Journal – May 17, 2013
12. www.edufundamerica.com
American
Charter
Development,
LLC
Charter Schools in the USA
• 5,600 Charter Schools
• Need 4,000 more Charter Schools because… over 1.2
million children on wait lists, Center for Educational Reform,
Washington DC.
13. www.edufundamerica.com
American
Charter
Development,
LLC
School
En'ty
Licensed by State to operate a charter school
Project Structure
Creates: NEW Limited Partnership – that:
1. Operates School – hires employees
2. Leases a new School Facility
3. Invests EB-5 Funds into: F,F & E, Operations, etc.
15. www.edufundamerica.com
American
Charter
Development,
LLC
School Financing
–
Phase
I
Senior
Bonds
50%
Funding
Charter
School
Development
CompanySubordinate
Bonds
25%
funding
Leases School
Facility
Limited
Partnership
Subordinate
Bonds
25%
-‐
Bridge
loan
Direct
Investment
Builds School
Facility
16. www.edufundamerica.com
American
Charter
Development,
LLC
School Financing
–
Phase
II
Senior Bonds
50% Funding
Charter
School
Development
CompanySubordinate
Bonds
25%
funding
Leases School
Limited
Partnership
EB-‐5
Investors
25%
Pays off bridge
loan
17. www.edufundamerica.com
American
Charter
Development,
LLC
EB-‐5
Direct
Investment
Limited
Partnership
EB5
EB5
EB5
EB5
EB-5
Investors
Funding Direct Investment
Operations
Working Capital
Tenant Improvements
Furniture & Equipment
18. www.edufundamerica.com
American
Charter
Development,
LLC
Repayment
Financing
Limited
Partnership
Senior
Bonds
Subordinate
Bonds
School
En'ty
Municipal Bond
EB-5
Investors
Financing
Repayment
EB5
EB5
EB5
EB5
After 39 – 42 months
19. www.edufundamerica.com
American
Charter
Development,
LLC
Over
30
years
experience
developing
commercial
proper_es
•
Started
Charter
School
business
in
2003
•
Developed
dozens
of
VERY
successful
Charter
Schools
•
Utah
State
Legislature,
Chairman
-‐
Higher
Educa_on
•
Net
Worth
over
8
figures,
Excellent
Credit
Ra_ng
Mike Morley, Chairman
American Charter Development, LLC
Charter
School
Developer
24. www.edufundamerica.com
American
Charter
Development,
LLC
1
THE INDUSTRIAL DEVELOPMENT AUTHORITY
OF THE COUNTY OF PIMA
$10,975,000
EDUCATION FACILITY REVENUE BONDS
(AMERICAN LEADERSHIP ACADEMY PROJECT)
SERIES 2012A
INTRODUCTION
The following is a brief introduction as to certain matters discussed elsewhere in this Official Statement and is
qualified in its entirety as to such matters by such discussion and the text of the actual documents described or referenced.
Any capitalized term not required to be capitalized is used with the meaning assigned in “EXHIBIT E – SUMMARIES OF
FINANCING DOCUMENTS,” or in the Indenture of Trust, to be dated as of January 1, 2012 (the “Indenture”), between
The Industrial Development Authority of the County of Pima (the “Issuer”), and U.S. Bank National Association, as
trustee (the “Trustee”), the Loan Agreement, to be dated as of January 1, 2012 (the “Loan Agreement”), between the
Issuer and American Leadership Academy, Inc. (the “Borrower”), an Arizona non-profit corporation, or other document
with respect to which the term is used. Definitions contained in the text hereof are for ease of reference only and are
qualified in their entirety by the definitions in “EXHIBIT E – SUMMARIES OF FINANCING DOCUMENTS,” or the
documents with respect to which such terms relate. The Exhibits hereto are an integral part of this Official Statement and
each potential investor should review the Exhibits in their entirety.
General
This Official Statement, including the cover page, the inside cover, the introductory statement and the Exhibits
attached hereto (this “Official Statement”), is furnished in connection with this offering by the Issuer of its Education
Facility Revenue Bonds (American Leadership Academy Project), Series 2012A, in the aggregate principal amount of
$10,975,000 (the “Series 2012A Bonds). The Series 2012A Bonds were authorized by a resolution adopted by the Board
of Directors of the Issuer on September 7, 2010, as amended by an amending resolution adopted by the Board of Directors
of the Issuer on February 18, 2011, as further amended by that second amending resolution adopted by the Board of
Directors of the Issuer on October 21, 2011, the Constitution and laws of the State of Arizona (the “State”), particularly
The Industrial Development Financing Act, comprised of Title 35, Chapter 5 of the Arizona Revised Statutes (the “Act”)
and will be issued under the Indenture.
The proceeds of the Series 2012A Bonds will be loaned to the Borrower pursuant to the Loan Agreement. The
Borrower will use the proceeds of the Series 2012A Bonds to: (i) finance and/or refinance the costs of acquiring,
constructing, improving, operating and/or equipping of charter school facilities located at 34696 North Village Lane, San
Tan Valley, Arizona (the “Series 2012 Facilities”); (ii) fund any required reserve funds as set forth in the Indenture; (iii)
pay capitalized interest on the Series 2012A Bonds; and (iv) pay certain issuance expenses (collectively, the “Series 2012
Project”). The Borrower’s repayment obligation under the Loan Agreement will be evidenced by the Series 2012A
Promissory Note executed by the Borrower (the “Series 2012A Promissory Note”).
The Series 2012A Bonds and any Additional Senior Bonds issued on a parity therewith pursuant to the Indenture
(collectively, the “Senior Bonds”), are special limited obligations of the Issuer payable exclusively from the Trust Estate
pledged, assigned and mortgaged to the Trustee pursuant to the Indenture. The Trust Estate includes: (i) the rights, title
and interests of the Issuer under the Loan Agreement (except for Issuer’s Unassigned Rights); (ii) the rights, title and
interests of the Issuer in the Project (except the Issuer’s Unassigned Rights), subject to Permitted Encumbrances; (iii) the
Revenues and all rights, title and interests of the Issuer in the Pledged Revenues, subject to Permitted Encumbrances
(except the Issuer’s Unassigned Rights); (iv) the rights, title and interests of the Issuer and the Borrower under the
Promissory Note(s) (except the Issuer’s Unassigned Rights) and the Deed of Trust, Security Agreement, Assignment of
Rents and Leases and Fixture Filing, dated as of January 1, 2012, from the Borrower for the benefit of the Trustee as
beneficiary thereunder (the “Deed of Trust”); (v) all Funds held by the Trustee pursuant to the Indenture (except amounts
on deposit in the Cost of Issuance Fund, the Tax and Insurance Escrow Fund and the Rebate Fund), subject to the
exceptions as provided in the Indenture; and (vi) any and all other interests in real or personal property of every name and
nature from time to time hereafter by delivery or by writing of any kind specifically mortgaged, pledged or hypothecated.
Funds
returned
via
Bond
financing…
Bond refinancing - January 2012
$10,875,000
Bond Amount
Financed with Tax Free
Bonds
Bond Issuer – Gov. Bond Seller / Lender
25. www.edufundamerica.com
American
Charter
Development,
LLC
Over
$5
Billion
in
charter
school
bonds
issued
$0
$200
$400
$600
$800
$1,000
$1,200
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
$11
$80
$208
$305
$225
$274
$327
$396
$571
$1,037
$556
$361
$951
$800
$340
36. www.edufundamerica.com
American
Charter
Development,
LLC
Why
we
Finance
Charter
Schools
Safe: Government Pays Tuition,
Secure: 10 years of Proven Job Creation success
Predictable: 10 years Successfully Repaying Investors
Each EB-5 requires 10 jobs.As long as there are enough students, there will be enough jobs because tuition income is guaranteed by the government.Other EB-5 projects need to take time to create enough jobs. Our schools will have enough jobs on the First Day of school.
Actual student enrollment is much higher than planed because of high demand.
An Affidavit is a legally bidding document. Actual student enrollment is much higher than planed because of high demand.
(Jean Allen, President, Center for Education Reform, Washington, DC)
EB5 investors join together to form a limited partnership company. They are the only partners (shareholders) of that company. EFA is the general partner (manager) of that company.ACD = American Charter DevelopmentThe Charter School itself is non-profit.Municipal bonds are guaranteed by the government. They are usually purchased by investment companies within a day. They carry very low interest.
EB5 investors join together to form a limited partnership company. They are the only partners (shareholders) of that company. EFA is the general partner (manager) of that company.ACD = American Charter DevelopmentThe Charter School itself is non-profit.Municipal bonds are guaranteed by the government. They are usually purchased by investment companies within a day. They carry very low interest.
EB5 investors join together to form a limited partnership company. They are the only partners (shareholders) of that company. EFA is the general partner (manager) of that company.ACD = American Charter DevelopmentThe Charter School itself is non-profit.Municipal bonds are guaranteed by the government. They are usually purchased by investment companies within a day. They carry very low interest.
EB5 investors join together to form a limited partnership company. They are the only partners (shareholders) of that company. EFA is the general partner (manager) of that company.ACD = American Charter DevelopmentThe Charter School itself is non-profit.Municipal bonds are guaranteed by the government. They are usually purchased by investment companies within a day. They carry very low interest.
EB5 investors join together to form a limited partnership company. They are the only partners (shareholders) of that company. EFA is the general partner (manager) of that company.ACD = American Charter DevelopmentThe Charter School itself is non-profit.Municipal bonds are guaranteed by the government. They are usually purchased by investment companies within a day. They carry very low interest.
EB5 investors join together to form a limited partnership company. They are the only partners (shareholders) of that company. EFA is the general partner (manager) of that company.ACD = American Charter DevelopmentThe Charter School itself is non-profit.Municipal bonds are guaranteed by the government. They are usually purchased by investment companies within a day. They carry very low interest.