I.The Building/Remodeling/ Renovating Project NSSED North Shore Academy (NSA) and Administration...

I. The Building/Remodeling/Renovating Project

NSSED North Shore Academy (NSA) and Administration Office

Building/Remodeling/Renovating Project

The Building/Remodeling/Renovating Project

• North Shore Academy Building– New building (requires demolition of the existing building)– New building to be located on the existing NSSED property located at

Red Oak Lane in Highland Park– Expanded space to facilitate the current and anticipated NSA

academic/social program needs– Approximately 52,000 Sq Ft including space for two additional

classrooms, gymnasium and cafeteria• Administration Office Remodeling/Renovating

– Life Safety– Must Do’s– Additional configuration changes to maximize available space

• TOTAL PROJECT AMOUNT– Not to exceed $16.1 Million

I. A

NSA

N

Edgewood

Stratford

Red

Oak

Lan

e

Ridg

e

AlterResidence

MaintBldg

SCHEME D.4

RUBLOFF/ECCIL

ADMIN

LEGEND• NSA• ADMIN• ELS & OT/PT• PARKING & TRAFFIC• NSA-E• ECP

New NSA Building; Admin Center Remodeling/Renovating

New NSA ADMIN

Project Option 1

I. B

New NSA Building; Admin Center Remodeling/Renovating and Relocation

N

Edgewood

Stratford

Red

Oak

Lan

e

Ridg

e

AlterResidence

MaintBldg

SCHEME H.1

RUBLOFF/ECCIL

LEGEND• NSA• ADMIN• ELS & OT/PT• PARKING & TRAFFIC• NSA-E• ECP

1 Story

2 Story

New NSA

ADMIN

Project Option 2

I. C

Anticipated General Construction Timelines

• North Shore Academy Building– Fall 2008 – Early Spring 2009 – Design Work – Spring 2009 – June 2009 – Bid Documentation and Awards – June 2009 – Begin Construction – Fall 2010 Substantial Completion– Winter (December 2010) – Move-In– Spring 2010 – Demolition of Existing NSA Building and Final

Site Work• Administration Office Remodeling/Renovating

– Fall 2010 – Design Work – Winter 2011 – Bid Documentation and Awards – Summer 2011 – Construction – Fall 2011 – Substantial Completion – August 2011 – Move-In

I. D

Construction Management

• NSSED will engage a Construction Manager for this project.• NSSED will utilize internal Buildings & Grounds staff to provide Project

Management. • NSSED will create a Superintendent’s “Construction Oversight Committee”

during the duration of the project.– The suggested Committee members include the following:

• NSSED Superintendent• NSSED Business Manager• A Member District Superintendent• A Member District Business Manager• A Parent and/or Student of NSA• NSA Program Administrator• Community Member• Governing Board Member Not On Task Force• Task Force Member • Architects• Construction Manager• Other individuals as the NSSED Superintendent believes are necessary

– Construction Oversight Committee will make regular reports to the Governing Board regarding the status of the construction projects including any change orders, construction expenditure recommendations etc.

I. E

II. The Allocation Method



Project Cost Allocation methods: EAV 2-Way Split

Member District allocations based upon Member District EAV (Equalized Assessed Valuation) from Tax Year 2006 (most

recently available) Member District Enrollment as of Fall 2007 Housing Report

3-Way Split Member District allocations based upon

Member District EAV (Equalized Assessed Valuation) from Tax Year 2006 (most recently available)

Member District Enrollment as of Fall 2007 Housing Report Five (5) year average Enrollment in NSA (North Shore Academy) programs, as of May

of each year (2004, 2005, 2006, 2007 and 2008)

Final Allocation Method recommended by the Superintendent’s and Business Managers, Task Force & Governing Board:Average of the 2-way and 3-way Split Allocations per Member District

Allocation Methods Considered II. A

Total Allocation of Project Cost For Member Districts

Region Name 2-Way Split 3-Way Split Average of 2 and 3-Way Split

Northern65 Lake Bluff 367,774 344,985 356,380

67 Lake Forest 1,084,833 765,075 924,954

106 Bannockburn 89,578 77,694 83,636

109 Deerfield 1,032,950 862,483 947,716 112 North Shore 1,514,914 1,380,714 1,447,814

113 Deerfield/Highland Park HS 1,834,309 2,892,956 2,363,633

115 Lake Forest HS 1,158,566 1,334,303 1,246,435

Glenbrook27 Northbrook 475,177 376,881 426,029

28 Northbrook 643,842 544,725 594,284

30 Northbrook/Glenview 380,398 307,256 343,827

31 West Northfield 357,878 354,351 356,115

34 Glenview 1,297,434 1,041,757 1,169,595

225 Glenbrook HS 2,248,307 2,105,199 2,176,753

New Trier29 Sunset Ridge (Northfield) 222,543 203,898 213,220

35 Glencoe 470,125 387,196 428,661

36 Winnetka 706,576 571,256 638,916

38 Kenilworth 195,796 145,823 170,810

203 New Trier HS 2,018,997 2,403,449 2,211,223

Totals $16,100,000 $16,100,000 $16,100,000

Member Districts

II. B

III. Upfront Payment and/or Special Education Revenue Bonds



Construction Financing Information

Member District Contribution

Upfront Payment

Member District Contribution

Financing Payment

NSSED PROJECTTo finance the project, NSSED will use (1) Upfront Payment Contributions and (2) will issue SPECIAL ED REVENUE BONDS. The Special Ed Revenue Bonds will be paid for via the Allocation Method by Member District’s who DO NOT pay upfront.

III. A

Construction Proceeds and Debt Service Payments

• Construction Project Account Created– Upfront Proceeds– Special Revenue Bond Proceeds– Interest Income Earned can be used to offset project costs– If funds are remaining in project fund after project is completed:

• Can be transferred to any operating fund of NSSED• Administration & Governing Board will determine use of remaining funds

• Debt Service Fund Created– Payments for Special Ed Revenue Bonds will be collected in NSSED

Debt Service Fund– Interest Income in Debt Service Fund can be transferred to any NSSED

operating fund.– Administration and Governing Board will determine use of excess

interest income in debt service fund.

III. B

Special Education Revenue Bonds

• Issuer: NSSED• Issue Date: Est. November 2008• First Interest Payment: June 1, 2009 (Capitalized)• First Principal Payment: December 1, 2009• Term: To Be Determined• Amount of Annual Payment: To Be Determined (See following pages)• Security: General Obligation of NSSED• Additional Security: Joint & Several Liability of Member Districts based on

EAV at time of financing.• Amend NSSED Articles of Agreement Regarding the Allocation Method for

this Project Only

III. C

General Information Regarding NSSED Debt Service

• Three Financing Options for NSSED Special Education Revenue Bonds– Nothing Financed (ALL Member Districts Pay Upfront)– 15 Year Term for Bonds– 20 Year Term for Bonds

• Amount of Special Education Revenue Bonds will be determined once all Member Districts have determined their contribution method (i.e. upfront or financing).

• General Total Interest Cost based on current market conditions (June 27, 2008)– 15 Yr. = 4.38%– 20 Yr. = 4.68%

III. D

Option 1A Option 1B Option 1C Option 2A Option 2B Option 2C Option 315 years 15 years 15 years 20 Years 20 Years 20 Years

Issuance Amount: $16.1 Million $10 Million $5 Million $16.1 Million $10 Million $5 Million No Bonds Issued

Type of Bond:Special Ed

Revenue BondSpecial Ed





Revenue Bond

Issuer: NSSED NSSED NSSED NSSED NSSED NSSED

Issuance Date: Nov-08 Nov-08 Nov-08 Nov-08 Nov-08 Nov-08 N/AProceeds Received by NSSED: Dec-08 Dec-08 Dec-08 Dec-08 Dec-08 Dec-08 N/A

Term: 15 15 15 20 20 20 N/A

Estimated Net Interest Cost, as of June 27, 2008 4.37% 4.38% 4.39% 4.68% 4.68% 4.69% N/A

First Interest Payment: 1-Jun-09 1-Jun-09 1-Jun-09 1-Jun-09 1-Jun-09 1-Jun-09First Principal Payment: 1-Dec-09 1-Dec-09 1-Dec-09 1-Dec-09 1-Dec-09 1-Dec-09

Approx. Annual Payment Amount: $ 1,592,000 $ 991,000 $ 498,000 $ 1,320,000 $ 823,000 $ 413,000 N/A

Total Interest Expense: 6,530,128$ 4,086,004$ 2,081,594$ 9,364,606$ 5,852,340$ 2,965,902$

Bank Qualified? No Depends Depends No Depends Depends N/AEst.Credit Rating: AA AA AA AA AA AA

Est. Capitalized Interest Cost: 335,722.12$ 212,447.60$ 108,980.99$ 358,061.94$ 225,545.75$ 116,108.23$

Est. Total Issuance Costs: 192,400.00$ 138,700.00$ 91,399.50$ 192,860.26$ 140,371.40$ 93,234.32$

$16.1M Issued, No Upfront

Contributions

$10M Issued, $6.1M Received

Upfront Contribution



$16.1M Issued, No Upfront

Contributions





No Debt Issued, $16.1M Received


POTENTIAL Interest Income Earned, as of 6/27/08 on Construction Proceeds 568,174$ 414,543$ 322,200$ 568,174$ 414,543$ 322,200$ 261,982$

NSSED Financing Options for Special Education Revenue Bonds, Series 2008

INTEREST INCOME ESTIMATES FOR CONSTRUCTION PROCEEDS ACCOUNT

III. E

Upfront Payment Contribution

• Based on Member District’s percentage of Project Allocation.• When:

– Billed to Member District – July 1, 2009– Payment Due Date – August 1, 2009

• Upfront Payments deposited into Construction Fund account.• Interest Income earned can be used to pay project costs – to

be determined by the NSSED Governing Board

III. F

Upfront Payment Contribution Option

Region Name

Upfront Payment

Contribution

Northern65 Lake Bluff 356,380

67 Lake Forest 924,954

106 Bannockburn 83,636

109 Deerfield 947,716 112 North Shore 1,447,814

113 Deerfield/Highland Park HS 2,363,633

115 Lake Forest HS 1,246,435

Glenbrook27 Northbrook 426,029

28 Northbrook 594,284

30 Northbrook/Glenview 343,827

31 West Northfield 356,115

34 Glenview 1,169,595

225 Glenbrook HS 2,176,753

New Trier29 Sunset Ridge (Northfield) 213,220

35 Glencoe 428,661

36 Winnetka 638,916

38 Kenilworth 170,810

203 New Trier HS 2,211,223

Totals $16,100,000

Member Districts

Northern Suburban Special Education DistrictProject Cost Allocation Option - Upfront Payments

$16,100,000 Project

III. G

Financing Contribution Option

• Member Districts that choose to make their contribution using the financing method– NSSED issues a Special Education Revenue Bond– Member Districts do not count their contribution of the

debt in their debt limit.– Member Districts make an annual payment for the term of

NSSED’s Special Education Revenue Bond.• Financing Contribution payments will be billed July 1 and will

be due August 1 each year. • Payment of Member District’s portion of the NSSED debt is

based on the agreed upon Allocation Method.

III. G

Summary of Impact to Member Districts

• Depending upon the choice of 15 year NSSED financing or a 20 year NSSED financing (two options that were presented), Member Districts will pay approximately the same amount as if no Member District paid upfront.

• Although the percentage participation of the financing amount may differ depending upon which Member Districts pay upfront and which elect to finance, the amount of the individual Member District’s debt service will be substantially the same.

III. H

Region Name

New Project Cost

$ Allocation

New Project

Cost %

Allocation

$16.1

Million/20

Yrs

% Debt

Allocation

$10 Million

/20 Yrs

% Debt

Allocation

$5 Million

/20 Yrs

% Debt

Allocation

Northern65 Lake Bluff 356,380 2.21% 29,369$ 2.214% -$ 0.000% -$ 0.000%

67 Lake Forest 924,954 5.75% 76,224$ 5.745% -$ 0.000% -$ 0.000%

106 Bannockburn 83,636 0.52% 6,892$ 0.519% -$ 0.000% -$ 0.000%

109 Deerfield 947,716 5.89% 78,100$ 5.886% -$ 0.000% -$ 0.000%

112 North Shore 1,447,814 8.99% 119,312$ 8.993% -$ 0.000% -$ 0.000%

113 Deerfield/Highland Park HS 2,363,633 14.68% 194,783$ 14.681% -$ 0.000% -$ 0.000%

115 Lake Forest HS 1,246,435 7.74% 102,716$ 7.742% 103,558$ 12.597% -$ 0.000%

Glenbrook27 Northbrook 426,029 2.65% 35,108$ 2.646% 34,762$ 4.228% -$ 0.000%

28 Northbrook 594,284 3.69% 48,974$ 3.691% 48,662$ 5.919% 48,751$ 11.934%

30 Northbrook/Glenview 343,827 2.14% 28,334$ 2.136% 28,094$ 3.417% 28,134$ 6.887%

31 West Northfield 356,115 2.21% 29,347$ 2.212% 29,403$ 3.577% 29,335$ 7.181%

34 Glenview 1,169,595 7.26% 96,384$ 7.265% 95,641$ 11.634% -$ 0.000%

225 Glenbrook HS 2,176,753 13.52% 179,382$ 13.520% 179,027$ 21.777% -$ 0.000%

New Trier29 Sunset Ridge (Northfield) 213,220 1.32% 17,571$ 1.324% 17,523$ 2.132% 17,565$ 4.300%

35 Glencoe 428,661 2.66% 35,325$ 2.662% 35,070$ 4.266% 35,064$ 8.584%

36 Winnetka 638,916 3.97% 52,652$ 3.968% 52,218$ 6.352% 52,246$ 12.790%

38 Kenilworth 170,810 1.06% 14,076$ 1.061% 13,900$ 1.691% 13,938$ 3.412%

203 New Trier HS 2,211,223 13.73% 182,223$ 13.734% 184,235$ 22.410% 183,470$ 44.913%

Totals $16,100,000 100.00% 1,326,772$ 100.000% 822,093$ 100.000% 408,503$ 100.000%

Member Districts Finance Option Finance Option Finance Option

ILLUSTRATIVE EXAMPLES

Northern Suburban Special Education DistrictCost Allocation Examples - Upfront Payments & 20 Year Finance Options

$16,100,000 Project

No Member District Pays Upfront

III. I Example 1

Region Name

New Project Cost

$ Allocation

New Project

Cost %

Allocation

$16.1

Million/15

Yrs

% Debt

Allocation

$10 Million

/15 Yrs

% Debt

Allocation

$5 Million

/15 Yrs

% Debt

Allocation

Northern65 Lake Bluff 356,380 2.21% 35,316$ 2.214% -$ 0.000% -$ 0.000%67 Lake Forest 924,954 5.75% 91,659$ 5.745% -$ 0.000% -$ 0.000%106 Bannockburn 83,636 0.52% 8,288$ 0.519% -$ 0.000% -$ 0.000%109 Deerfield 947,716 5.89% 93,914$ 5.886% -$ 0.000% -$ 0.000%112 North Shore 1,447,814 8.99% 143,472$ 8.993% -$ 0.000% -$ 0.000%113 Deerfield/Highland Park HS 2,363,633 14.68% 234,225$ 14.681% -$ 0.000% -$ 0.000%115 Lake Forest HS 1,246,435 7.74% 123,516$ 7.742% 124,528$ 12.597% -$ 0.000%

Glenbrook27 Northbrook 426,029 2.65% 42,218$ 2.646% 41,801$ 4.228% -$ 0.000%28 Northbrook 594,284 3.69% 58,891$ 3.691% 58,516$ 5.919% 58,623$ 11.934%30 Northbrook/Glenview 343,827 2.14% 34,072$ 2.136% 33,783$ 3.417% 33,830$ 6.887%31 West Northfield 356,115 2.21% 35,289$ 2.212% 35,357$ 3.577% 35,276$ 7.181%34 Glenview 1,169,595 7.26% 115,902$ 7.265% 115,008$ 11.634% -$ 0.000%225 Glenbrook HS 2,176,753 13.52% 215,707$ 13.520% 215,279$ 21.777% -$ 0.000%

New Trier29 Sunset Ridge (Northfield) 213,220 1.32% 21,129$ 1.324% 21,072$ 2.132% 21,122$ 4.300%35 Glencoe 428,661 2.66% 42,478$ 2.662% 42,171$ 4.266% 42,164$ 8.584%36 Winnetka 638,916 3.97% 63,314$ 3.968% 62,792$ 6.352% 62,825$ 12.790%38 Kenilworth 170,810 1.06% 16,926$ 1.061% 16,714$ 1.691% 16,760$ 3.412%203 New Trier HS 2,211,223 13.73% 219,122$ 13.734% 221,542$ 22.411% 220,621$ 44.913%

Totals $16,100,000 100.00% 1,595,438$ 100.000% 988,563$ 100.000% 491,221$ 100.000%

ILLUSTRATIVE EXAMPLES

Northern Suburban Special Education DistrictCost Allocation Examples - Upfront Payments & 15 Year Finance Options

$16,100,000 Project

No Member District Pays Upfront

Member Districts Finance Option Finance Option Finance Option

III. J Example 2

Anticipated Finance Timelines

Task

Date

Responsible Participant(s)

Superintendents’ Meeting Discuss Allocation Options Present Special Education Bonds as preferred financing

mechanism Review remaining timetable of events

June 25, 2008 NSSED/PMA

Governing Board Meeting

Agree on Project Scope and Amount Review Allocation Options – identify preferred allocation Present Special Education Bonds as preferred financing

mechanism

July 9, 2008 NSSED/PMA

Presentations delivered to Member Districts’ Board of Education meetings by NSSED Administration

Project Scope and Amount Preferred Allocation Method for financing Upfront payment or financing via Special Education Bonds

July 10th through October 1st

NSSED/PMA

Governing Board Meeting Select Allocation Method

September 10, 2008 NSSED

Governing Board Meeting Vote to proceed with issuance of Special Education Bonds

(majority vote needed)

October 15, 2008 NSSED/PMA

Member Districts communicate to NSSED whether allocations will be paid up front or through financing

October 22, 2008 Member Districts

Governing Board Meeting

Approve Sale of Bonds; adopt Bond Resolution

November 12, 2008

NSSED/PMA

Close the Bonds; NSSED receives bond proceeds December 8, 2008 All

III. K

I.The Building/Remodeling/ Renovating Project NSSED North Shore Academy (NSA) and Administration...

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