Governing Board Considerations When Acquiring and Financing a School Facility

About the Webinar:

Melissa Gross-Arnold led a session focused on the complex considerations that charter school boards face when acquiring and financing facilities. She began by framing why these decisions are so critical: facilities impact financial stability, long-term planning, program alignment, and even school marketing. She emphasized that facility choices must align with a school’s mission—for example, a Montessori program may require open, naturally lit spaces while other models may have very different needs. Governing boards, she reminded participants, have fiduciary duties of loyalty and care, which means prioritizing the school’s best interests, conducting due diligence, and asking the right questions throughout the acquisition or leasing process.

A key portion of the session explored the legal responsibilities of governing boards. Gross-Arnold explained how Sunshine Law applies when decisions are delegated to committees, underscoring the need for transparency and proper notice. She also reviewed public records requirements, noting that even informal communications with brokers or contractors can fall under disclosure laws. Conflict of interest rules were another focus, as board members involved in property or financing arrangements must be vigilant to avoid ethical violations. Additionally, she highlighted how charter contracts intersect with facility decisions, such as location approvals and enrollment expansions, and discussed recent statutory changes that make it easier for schools to increase enrollment when moving to larger spaces.

Gross-Arnold then outlined practical considerations in leasing versus purchasing facilities. Leasing may provide flexibility and lower upfront costs but comes with risks like rent escalation and landlord disputes. Purchasing offers stability, equity, and greater control but requires significant upfront investment and ongoing maintenance. She discussed hybrid options, such as lease-to-purchase arrangements or developer-financed facilities, and stressed the importance of involving financial advisors to evaluate long-term affordability. The conversation also touched on bond financing, regulatory compliance, and the necessity of understanding local government approval processes, which—though clarified by recent legislation—still vary widely across Florida.

Finally, the session addressed renovation versus new construction. Gross-Arnold encouraged boards to weigh costs, suitability, and timing, reminding them that new construction can take years and requires careful planning to avoid gaps in facility availability. She advised schools to assemble the right team of advisors, project managers, and development experts early in the process, and to conduct thorough due diligence with surveys, environmental reports, and title insurance. Ultimately, she concluded that facility decisions are among the most consequential a board can make, requiring ongoing oversight, alignment with the school’s mission, and a long-term plan for financing, compliance, and maintenance.