Seven Oaks Board Meeting
5 April 2016
14 People attended. Some interesting data. At one point someone suggested that some financial stuff be discussed in executive session. However their attorney – on the board – indicated he would be uncomfortable if discussions were not public.
EVENTS that are Planned.
1. Invitation only reception for the new headmaster . 21 April from 4:30 to 6:30
Sponsored by Smithville Fiber and Owen County State Bank OCSB)
Hope to hold it at Smithville fiber – if not OCSB or KRC Fred noted that the reception will be organized the way Hillsdale does after a long day.
2. Recruiting/information session at The Reserve – Chandlers Glen (1700 W. 17th St.
12 April 6:30 to 7:30 (I may have the time wrong – but think that is it).
Pizza and drinks and the management of the apartments is passing out a flyer announcing it. They think the apartment strategy is important. Fred Prall noted that they need to tell them “why they should go to our school rather than Fairview – and that should be easy.”
Boys and Girls Club
Fred Prall noted that the B&G have a close relationship with MCCSC and RBB but he thinks they will have even a closer relationship because: a) kids won't need transportation and the B&G will be their tenant. But it also seems that B&G is in fact working with them – not sure how but that seemed to be the tone of the conversation.
Purchase of the building
They seem committed to the location – no other place was discussed.
They put in a bid of $625k. However, their offer included a “significant reduction” in price if they got external financing. That reduction contingency was rejected in the counter offer from the owner. So 7 Oaks in working on their new counter – they want to maintain the reduction of price if they have financing.
There strategy is to work with a company called Highmark which is a turnkey education company. They will buy the building and lease it to Seven Oaks who will have a right to purchase after x years.
Highmark has said they will finance purchase and renovation up to 3.5M or 5.0M (the Board was not sure which)
One of their concerns with Highmark is that once purchased (or before purchasing) they want 45 days to evaluate the renovation requirements and they want exclusive rights. 7 Oaks is very nervous about the 45 days and exclusivity.
Renovations
Odle McGuire Shook (OMS) is the architectual firm working on the plans. They have done drawings but no details. They are estimating $2.34 M to renovate 57,400 sq ft. Fred PRall said that no walls or floors need to be added or replaced – however all the windows and doors and lighting and half the roof needs to be replaced.
They will only renovate the space they will be using next year – so the cost could be lower. One of the people said the county does not require the entire space to be cleaned up – just what will be used – as long as the unused space is locked off.
Enrollment
They have 220 who have signed up – Matt expects they will lose 10 of those. Of course more students could enroll. Kindergarten is filled – they have 3 kindergarten classrooms.
Miscellaneous things said
. They will be establishing a line of credit at OCSB. But have yet to open an account there.
Near the end, Fred Prall or the attorney noted that they have to “draft the corporate resolution and submit to the president for signature."
They are focused on the gym – expending some effort to get the history of the gym. No idea why. They want to renovate the gym (or the whole building, not sure) in historic vintage.
Fred Prall wants to establish a relationship with Wagon Wheel. He was arguing for them to be hired to provide food for the Reserve meeting on the 12th. But also noted that he would like to use them to provide meals for the kids in the school.
Hillsdale has a newsletter they send out to subscribers. 7 Oaks is going to write an update for the newsletter announcing the new headmaster and building plans- - it is a strategy to solicit donations from the fans of Hillsdale.
14 People attended. Some interesting data. At one point someone suggested that some financial stuff be discussed in executive session. However their attorney – on the board – indicated he would be uncomfortable if discussions were not public.
EVENTS that are Planned.
1. Invitation only reception for the new headmaster . 21 April from 4:30 to 6:30
Sponsored by Smithville Fiber and Owen County State Bank OCSB)
Hope to hold it at Smithville fiber – if not OCSB or KRC Fred noted that the reception will be organized the way Hillsdale does after a long day.
2. Recruiting/information session at The Reserve – Chandlers Glen (1700 W. 17th St.
12 April 6:30 to 7:30 (I may have the time wrong – but think that is it).
Pizza and drinks and the management of the apartments is passing out a flyer announcing it. They think the apartment strategy is important. Fred Prall noted that they need to tell them “why they should go to our school rather than Fairview – and that should be easy.”
Boys and Girls Club
Fred Prall noted that the B&G have a close relationship with MCCSC and RBB but he thinks they will have even a closer relationship because: a) kids won't need transportation and the B&G will be their tenant. But it also seems that B&G is in fact working with them – not sure how but that seemed to be the tone of the conversation.
Purchase of the building
They seem committed to the location – no other place was discussed.
They put in a bid of $625k. However, their offer included a “significant reduction” in price if they got external financing. That reduction contingency was rejected in the counter offer from the owner. So 7 Oaks in working on their new counter – they want to maintain the reduction of price if they have financing.
There strategy is to work with a company called Highmark which is a turnkey education company. They will buy the building and lease it to Seven Oaks who will have a right to purchase after x years.
Highmark has said they will finance purchase and renovation up to 3.5M or 5.0M (the Board was not sure which)
One of their concerns with Highmark is that once purchased (or before purchasing) they want 45 days to evaluate the renovation requirements and they want exclusive rights. 7 Oaks is very nervous about the 45 days and exclusivity.
Renovations
Odle McGuire Shook (OMS) is the architectual firm working on the plans. They have done drawings but no details. They are estimating $2.34 M to renovate 57,400 sq ft. Fred PRall said that no walls or floors need to be added or replaced – however all the windows and doors and lighting and half the roof needs to be replaced.
They will only renovate the space they will be using next year – so the cost could be lower. One of the people said the county does not require the entire space to be cleaned up – just what will be used – as long as the unused space is locked off.
Enrollment
They have 220 who have signed up – Matt expects they will lose 10 of those. Of course more students could enroll. Kindergarten is filled – they have 3 kindergarten classrooms.
Miscellaneous things said
. They will be establishing a line of credit at OCSB. But have yet to open an account there.
Near the end, Fred Prall or the attorney noted that they have to “draft the corporate resolution and submit to the president for signature."
They are focused on the gym – expending some effort to get the history of the gym. No idea why. They want to renovate the gym (or the whole building, not sure) in historic vintage.
Fred Prall wants to establish a relationship with Wagon Wheel. He was arguing for them to be hired to provide food for the Reserve meeting on the 12th. But also noted that he would like to use them to provide meals for the kids in the school.
Hillsdale has a newsletter they send out to subscribers. 7 Oaks is going to write an update for the newsletter announcing the new headmaster and building plans- - it is a strategy to solicit donations from the fans of Hillsdale.