First it is all about leases. 29 out of 32 charter schools in Duval are leased, see the great graphic below made by the times union.
Charter schools are allowed to use capital funds to, Purchase, lease-purchase, or lease of permanent or relocatable school facilities.
So on January 1st 2018 KIPP, a non profit sold itself to another non profit, McDuff Qualicb 2 inc for ten bucks.
and last year they paid 848,000 dollars to them.
Now remember KIPP had previously owned the property free and clear.
Why if you were a non profit that owned your property would you give it to another non profit? Well its my bet its to be able to pay off a debt and who does the KIPP school owe but John Baker and Gary Chartrand of the civic council that group fighting against the sales tax referendum.
Back to the referendum, on a proportional basis, charters will become flush with cash, cash they can use on leases, who now has a lease, the KIPP school.
Another question that is unanswered is why did KIPP who owned its land and building, holding millions in assets borrow money from Baker and Chartrand in they first place? They couldn’t have used their property as collateral? KIPP national which has a hundred million in assets couldn’t have co-signed a loan?
It’s my bet and this is just speculation on my part so please no one sue me, that Baker and Chartrand parked money into KIPP receiving a nice tax break to do so, however since it was just a loan, they expect it to be paid back with interest.
Whats going to happen when Baker and Chartrand are paid off, is McDuff going to sell KIPP back to KIPP or is it going to keep raking it in.
I think Gary Chartrand has always has an almost pathological hatred of public schools, so doing something that would hurt them is in his wheel house, him getting paid is just a bonus.