Bond deal grants ACE $35 million to purchase, update facilities

The Academy for Classical Education will soon have $35 million in bond proceeds to purchase and update its facilities.

The Macon-Bibb County Urban Development Authority approved a bond resolution at a called meeting Friday morning.

The bonds will allow the Macon charter school to eventually own the property on New Forsyth Road that it leases from ACE Macon One LLC. The funds will also go toward building upgrades and additions and paying off loans for technology, furniture and equipment, said Witt Gaither, chairman of ACE’s governing board. This will place all of ACE’s debts under one financial note.

“We are extremely grateful for the confidence that has been extended to us on many levels and will continue to work hard every day to educate our students to the best of our ability,” ACE principal Laura Perkins said in an email.

ACE now teaches kindergarten through 10th grade, but 11th grade will be added in fall 2017 and 12th grade in 2018, Gaither said. Building plans include new high school classrooms and fine arts space for choral, band and theater programs. The gymnasium will be renovated to tournament grade, complete with locker rooms.

“This step moves the needle substantially toward guaranteeing long-term viability for the Academy for Classical Education,” Gaither said in an email.

BB&T is the underwriter for the 35-year agreement, which has a 5.87 percent interest rate, said Blake Sharpton, the authority’s general counsel. The bond proceeds will become available after closing papers are signed May 10.

Macon-Bibb County is only issuing the bonds and is not guaranteeing them, said Alex Morrision, the authority’s executive director. The ACE board is in charge of making all payments, and the county would not be on the hook in the event of missed payments.

The bonds will be paid back through per-pupil funding from the state and a portion of Bibb County property tax proceeds, Gaither said.

“This in no way, shape or form creates any liability or risk of any kind for the Urban Development Authority,” he said.

The authority has served as a financial conduit for educational institutions for years, Sharpton said. Wesleyan College, Tattnall Square Academy and First Presbyterian Day School are some of the other schools it has worked with in the past.

This story was originally published April 28, 2017 at 10:05 AM with the headline "Bond deal grants ACE $35 million to purchase, update facilities."