In November 2019, the Charter School for Educational Excellence (CSEE) in Yonkers, New York, closed its $36.8 million bond issue of tax-exempt and taxable bonds issued through the Yonkers EDC. The proceeds will be used to fund the construction of a high school in Yonkers, as CSEE expands from its traditional K-8 operation into a K-12 school due to local demand. This demand stems from the fact that CSEE significantly out-performs all other educational options in their community by quite a lot.
CSEE opened its doors in 2005 and finished 2019 with about 750 K-8 students residing in Westchester and Bronx Counties. It has been designated a Reward School by the State Education Department for four years running. After receiving its charter extension in January 2018, the Board of Regents approved CSEE for an expansion into grades 9-12 and designated it as a Regional K-12 School, which allows students from anywhere in the State to enroll. CSEE began operating the high school in Fall 2019 in a temporary location, and when the high school construction is complete in 2021, it will operate grades 9-11 in the new facility. Ultimate about 1,300 students will be served in grades K-12.
Over 80% of CSEE’s students are economically disadvantaged and available for FRL. Over 7% of its students have some form of learning disability. Yet, CSEE outperforms the local district, Westchester County schools, and the average for City and State charter schools and district schools. Its academic performance is the main reason why CSEE was approached to expand its grade offerings into the high school grades. The district schools are also known to be overcrowded, so this expansion also helps alleviate that to some degree, but the main driver is CSEE’s academic performance.
The bonds were issued on parity with CSEE’s outstanding 2010 bonds. The non-rated offering was over-subscribed significantly, and ultimately the yield-to-call on the 35-year final maturity was 3.84%. That is an amazing yield, and a testament to the quality of the school’s financial and educational operations. Buck Financial served as financial advisor, Robert W. Baird & Co. Inc. as underwriter, Harris Beach PLLC as bond counsel, and Hodgson Russ LLP as underwriter’s counsel. School House Project is serving as owner’s rep to CSEE for the project.
Congratulations to CSEE, its Board and staff, and most of all to the families its continues to serve so well.