7/31/2019 Meridian PCS DC Council Finance Revenue Tax Abatement Permanent Legislation FINAL 6-25-12

1/3

1

Statement of Christopher Siddall, Member of the Board of Governors,

Meridian Public Charter School

Hearing on Bill 19-577: Meridian Public Charter School Harrison Campus

Property Tax Exemptions Amendment Act of 2011

Committee on Finance and RevenueJune 25, 2012

Good morning Chairman Evans and members of the Committee. My name isChristopher Siddall. I am a Member of the Board of Governors of Meridian PublicCharter School (Meridian). Thank you for the opportunity this morning to express mystrong support for Bill 19-577, the Meridian Public Charter School Harrison CampusProperty Tax Exemptions Amendment Act of 2011.

Since its inception, Meridian has dedicated itself to serving District children in the most

challenging of circumstances. In most years, approximately 90% of our students arefrom households that are below the poverty line and eligible for free or reduced lunch.

In August of 2012, Meridian plans to relocate to the former-DCPS Harrison SchoolBuilding under a long-term Ground Lease with the District. Meridians program hasoutgrown its current facility and, upon moving into the Harrison School, will finally havespace to accommodate our students.

Our move into the Harrison School (large parts of which date to 1890) has required anoutlay of more than $16,000,000 to renovate the property into a modern, fully functioningschool. Meridian financed this renovation project through the New Markets Tax Credit(NMTC) program administered by the U. S. Treasury Department. The NMTCfinancing allowed Meridian to obtain financing terms that are far more favorable thanwhat is found in a more conventional financing program. However, to comply withNMTC rules, Meridian had to form Meridian Harrison QALICB, Inc. (the QALICB)to be the borrower under the NMTC financing. At closing, Meridian assigned its interestin the Ground Lease to the QALICB, which then subleased the property back toMeridian. As such, Meridian will continue to control the Harrison School property andoperate the charter school at the facility. I would like to note here that Meridian will notprofit from the NMTC structure described above. The sole reason for the structure is tofacilitate compliance with Treasurys NMTC program.

As a 501(c)(3) organization and a public charter school, Meridian itself would be exemptfrom District of Columbia real estate, possessory interest, recordation, and transfer taxeswith respect to the Harrison School. However, the QALICB a not-for-profitcorporation, but not a 501(c)(3) organization or a public charter school is not exemptfrom such taxes. Therefore, before the NMTC financing closed last October, Meridiansought, and received, both emergency and temporary legislation exempting the QALICBfrom such taxes. Meridian now seeks permanent legislation with respect to theseexemptions. The legislation before you today is critical to ensure that Meridian is treated

7/31/2019 Meridian PCS DC Council Finance Revenue Tax Abatement Permanent Legislation FINAL 6-25-12

2/3

2

like any other D.C. Charter School for tax purposes. As indicated in the Fiscal ImpactStatement issued by the District of Columbia Office of the Chief Financial Officer, thislegislation is revenue neutral to the District.

The Tax Abatement Financial Analysis, also performed by the Office of the Chief

Financial Officer, concludes that Meridian does not have the ability to pay the taxes forwhich it is seeking an exemption. Therefore, but for the passage of the permanentlegislation, Meridians financing of the Harrison School would be jeopardized and wewould not be able to complete the renovation project. Without the legislation before youtoday, Meridians ability to continue to educate some of the most vulnerable children inthe District of Columbia would be crippled.

On behalf of Meridian Public Charter School, I urge you to support Bill 19-577. Thankyou for time and attention to this matter. I am happy to answer any questions you mayhave.

**********

7/31/2019 Meridian PCS DC Council Finance Revenue Tax Abatement Permanent Legislation FINAL 6-25-12

3/3

3

ADDENDUM

Description of Meridian Public Charter School

June 25, 2012

Meridian Public Charter School has advanced its mission to instill within its students a passion

for learning and to build their self-confidence and self-respect through academic achievement.Our school has more than quintupled its number of students, from 87 in 1999 to 531 in 2012, as atestament to the communitys trust in Meridians vision, instructional quality, and passion for thechildren and families we serve in the greater U Street area and from across the District.

Our school was started by a group of Washington, D.C. parents along with local business, policy,and social services professionals who believed that a public charter school could improve lives inthe greater U Street area. We now meet the academic needs of children through eighth grade,with 94% attendance and 80% re-enrollment rates. Meridian has won, and continues to win,recognition for its educational program and management:

2010: Academic growth (measured by DC-CAS) was greater than that of any otherelementary charter school in the District of Columbia.

2009-2010: Received a FOCUS Award for Closing the Achievement Gap. 2009: Named a TOP school in Washington, D.C. by Johns Hopkins University. 2007: Received a Steward Award for accurate and effective control over federally

sponsored funds from D.C.s Monitoring and Compliance Division.

Meridian serves many children from families suffering from poverty. In most years, about 90%of our students fell below the poverty line and were eligible for free or reduced lunch. 62%percent of our students are African-American and one-third is Latino. 18% have special educationneeds and 38% receive special help because English is their second language.

In the coming years, we will engage students from all socio-economic levels. Ward 1s Cluster 2

neighborhood where Meridian lies has a higher percentage of children than the Districtoverall. With many low-performing schools closed or potentially closing in the neighborhood,Meridian has emerged as one of the only High Quality Performing Schools in the area. The factthat the largest group of residents in this area fall between the ages of 25 and 34 suggests thatschool-age children will be plentiful. Rapid addition of newly constructed housing stock onlybolsters potential demand for our services in the community.

Today, Meridian helps to anchor U Streets active community life. Through a partnershipestablished in 2004 with Harrison Recreation Center, we host Meridians Annual Life and FamilyFestival, a collaborative event that emphasizes the importance of families and communities to thewell-being of children. Meridian also hosts an International Night on the Tuesday evening beforeThanksgiving, in collaboration with several embassies.

Not satisfied with improvements to our building and community program, Meridian has secured athree-year grant to improve the quality of our instruction through national teacher recruitment andenhanced professional development. With these building blocks in place, Meridian will be in astrong position to serve the dynamic U Street area and the Districts families for many years.