Confusion and uncertainty

Confusion spikes as a popular charter school seeks to buy an empty Detroit school building

PHOTO: Anna Clark
The former Anna M. Joyce Elementary School in Detroit closed in 2009.

Detroit’s new superintendent sent supporters of a popular new charter school into a panic today, potentially killing their dream of buying  a “forever home” for their school.

Schools chief Nikolai Vitti, who is openly competing with charters for students, informed the co-founder through a district office that he intended to reject her plan to buy a vacant public school building. But later in the day, after learning more details about the sale, he agreed to give the matter more consideration before making a final call.

“Our goal is to ensure the best use of taxpayer assets,” said Chrystal Wilson, a spokeswoman for Vitti.

The resulting confusion reflects the complexity the district faces in making the best use of its former schools. In this case, restrictions in the building’s deed and a murky process for buying closed public school buildings make a tough road even more difficult.

Kyle Smitley, the co-founder of Detroit Prep and the Detroit Achievement Academy, signed a purchase agreement on July 18 for the former Anna M. Joyce Elementary School, which closed in 2009.

The building’s current owner is a company run by Dennis Kefallinos, a major Detroit landlord. He bought the vacant Joyce school from the district for $600,000 in June 2014. This summer, Smitley agreed to pay him $750,000 for the building.

But because of a quirk in the initial deed, the agreement has to go through the Detroit Public Schools Community District, which has the right to reject some sales. Vitti did just that this morning. He halted the Detroit Prep deal, telling Smitley in an email that the district would cease making any property sales while his team assesses the district’s holdings and needs.

But even though the district no longer owns the building, there are two major restrictions on the sale, according to the deed from the bulidng’s 2014 sale.

One restriction allows the building to be developed only for residential use until 2024. Any exceptions have to be approved by the school district.

The second restriction is an anti-flip clause that gives the district a percentage of the profit if the property is resold within five years. In Detroit Prep’s agreement, Smitley said the district would be paid about $75,000.

When Vitti rejected Detroit Prep’s request to turn the former Joyce building into a school, he didn’t realize Smitley had already agreed to pay the $75,000 to the school district in addition to the purchase price to Kefallinos’ company.

Smitley’s plan was to launch a complete $4 million rehab of the building and move Detroit Prep in by fall 2018, when the school will outgrow its current home in the basement of an Indian Village church. It anticipates eventually serving 430 K-8 students.

She first saw the former Joyce school, a stately red brick building on Sylvester Street, on July 20, 2016. But it took months before she could connect with Kefallinos’ company. “We get calls about the schools [we own] every day, all the time, and honestly, they’re a dime a dozen,” said Chris Mihailovich, general manager of Kefallinos’ property company.

Mihailovich said Kefallinos intended to turn Joyce into a residential building, but that all their properties are for sale at the right price. “We all know that. We’re businessmen. We don’t look at the human element, because it’s all about profit,” he said.

Kefallinos was at first uninterested in Detroit Prep, Mihailovich said, because his company could make “much, much more money” by sitting on the property another year or two. That strategy also had the advantage of outlasting some of the school district’s time-limited deed restrictions.

But they were persuaded that Smitley was worth talking to by a mutual friend who interceded on her behalf. “If not for the mutual friend calling, I’m not sure it would have gone any further,” Mihailovich said.

“To us, it’s a different kind of experience because we didn’t think of it as a business kind of deal,” he added. “We think of it as trying to help the community.”

Closing had been scheduled for Oct. 18. It remains unclear what the next steps are, though Vitti said in an email to Smitley that he will reconsider the Detroit Prep deal.

Finding a home

Denver school board permanently co-locates charter elementary in middle school building

Students and staffers at Rocky Mountain Prep's first charter school in Denver cheer in 2012. (Photo by The Denver Post)

A Denver elementary charter school that was temporarily granted space in a shuttering district-run middle school building will now be housed there permanently.

The school board voted Thursday to permanently place Rocky Mountain Prep Southwest charter school in the Kepner Middle School building, where it is sharing space this year with three other school programs. Such co-locations can be controversial but have become more common in a district with skyrocketing real estate prices and ambitious school quality goals.

Rocky Mountain Prep Southwest is part of a homegrown charter network that has shown promising academic results. The network also has a school in Aurora and is expected to open a third Denver school next year in the northwest part of the city.

Rocky Mountain Prep Southwest was first placed at Kepner for the 2015-16 school year. The placement was supposed to be temporary. The district had decided the year before to phase out low-performing Kepner and replace it a new district-run middle school, Kepner Beacon, and a new charter middle school, STRIVE Prep Kepner, which is part of a larger network. The district also temporarily placed a third charter school there: Compass Academy.

Compass has since moved out of Kepner but the other four schools remain: Rocky Mountain Prep Southwest, Kepner Beacon, STRIVE Prep Kepner and the Kepner Legacy Middle School, which is on track to be completely phased out and closed by June 2019.

In a written recommendation to the school board, district officials acknowledged that permanently placing Rocky Mountain Prep Southwest at Kepner would create a space crunch.

The Kepner campus has the capacity to serve between 1,100 and 1,500 students, the recommendation says. Once all three schools reach full size, officials expect the schools will enroll a total of approximately 1,250 students. Rocky Mountain Prep Southwest currently serves students in preschool through third grade with a plan to add more grades.

“DPS facilities staff are currently working with all three schools to create a long‐term vision for the campus, including facility improvements that ensure all three schools have what they need to continue to excel,” says the recommendation from Chief Operating Officer David Suppes and Director of Operations and Support Services Liz Mendez.

District staff tried to find an alternate location for Rocky Mountain Prep Southwest but were unsuccessful, the recommendation says. The district does not have many available buildings, and competition for them among district-run and charter schools can be fierce. In northeast Denver, seven secondary schools are currently vying for the use of a shuttered elementary.

Future of Schools

Indianapolis needs tech workers. IPS hopes that George Washington will help fill that gap.

PHOTO: Dylan Peers McCoy

Indiana companies are looking for workers with computer expertise, and Indianapolis Public Schools leaders want their students to fill that gap.

Next year, George Washington High School will launch a specialized information technology academy designed to give students the skills to pursue careers in IT — and the exposure to know what jobs even exist.

“Half of what kids aspire to be is either someone they know does it or they’ve seen it on TV,” said Karen Jung, president of Nextech, a nonprofit that works to increase computer science preparation in K-12 schools. Nextech is partnering with IPS to develop the new IT program at George Washington.

For teens who don’t know anyone working in computer science, meeting role models is essential, Jung said. When teens see women of color or artists working in computer sciences, they realize there are opportunities for people like them.

“Once we put them in front of and inside of workplaces … it clicks,” Jung said. They believe “they would belong.”

The IT program is one of three academies that will open in George Washington next year as part of a broad plan to close nearly half of the district’s high schools and add specialized focus areas at the four remaining campuses. In addition to the IT academy, George Washington will have programs in: advanced manufacturing, engineering, and logistics; and business and finance.

The district is also moving to a model without neighborhood high schools. Students will be expected to choose high schools based on focus area rather than location. This year, many current high schoolers were required to reapply in an effort to make sure they enroll in academies that fit their interests.

The district will host a showcase of schools to help parents and students with their selections. The showcase runs from 10 a.m. to 2 p.m. Saturday at the Indiana State Museum.

Stan Law, principal of Arlington High School now, will take over George Washington next year. (Arlington will close at the end of this year.) He said the new academies offer an opportunity for students to see what they need to master — from soft skills to knowledge — to get good jobs when they graduate.

“I want kids to really make the connection of the purpose of high school,” Law said. “It is that foundation for the rest of your life, in terms of the quality of life that you are going to live.”

PHOTO: Dylan Peers McCoy
Stan Law

When the IT academy launches next year, students who select the program will be able to spend about one to two classes per year focused on information technology, said Ben Carter, who runs career and technical education for IPS.

Carter hopes the academies will reshape George Washington and other IPS campuses by connecting potential careers with the work students do everyday at school. Students who share a focus area will be in a cohort, and they will share many of the same core classes such as English, math and history, said Carter. Teachers, in turn, will be able to relate what students are studying in their history class to projects they are working on in the IT program, for example.

To show students what a career in information technology might look like, students will have the chance to tour, connect with mentors and intern at local companies.

“If I’m in one of these career classes — I’m in software development, but then I get to go to Salesforce and walk through and see the environment, to me as a student, that’s inspiring,” said Carter. “It’s like, ‘oh, this is what I can have.’ ”

He added. “It increases engagement but also gives them a true sense of what the career is.”