Holy Angels Answers 'Frequently Asked Questions' on Potential Retail Development

With the Academy of Holy Angels considering a land sale that would redevelop part of its front lawn into a retail spot, the following information on frequently asked questions was posted on the school's site.

Q: Why am I just officially hearing about this now?  Why didn’t you fill us in earlier?   A: Throughout 2013 the school leadership, the Board, the cross-community Taskforce and the Opus architectural team did much exploration, review and analysis to properly vet the Campus Master Plan.  The team spent time to fully understand all aspects of this innovative education-retail campus mix and its true potential.   It was important to clearly flesh out what this concept would look like, and to ensure we could deliver the information in a comprehensive manner and be able to provide answers to the various questions we were sure to get. We are now at a point that we are communicating the concept to key constituent groups of AHA.  The board decision will be made by year-end 2013.
 
Q: Why can’t we do the Campus Master Plan without the retail opportunity – what would that cost and why can’t we fund-raise to do it without selling the school’s land? A: The cost of the 10-15 year Campus Master Plan for direct improvements to our school is estimated at $15 million.  In our most recent capital campaign, it took more than three years to raise $3 million. The retail opportunity delivers $5.75 million from the purchase of the land and additional multi-million dollar improvements to the East Lawn area – nearly 30% of the total capital improvement costs of the Plan.  Without the retail opportunity, it will take years to initiate any school improvements.  The opportunity accelerates AHA’s ability to move forward and revitalize the campus, helps the school better meet its financial goals, including establishing an endowment and reducing its debt, and enables AHA to uniquely position itself as an urban college prep institution with an innovative education-retail approach to its campus.
 
Q: Why is AHA pursuing a Campus Master Plan with the retail development opportunity? A: As the AHA Vision Piece pointed out, we were in our Campus Master Planning process to create a 5-10 year campus revitalization effort when an offer was presented to the school to purchase a portion of the East Lawn for six times the current land value.  The school leadership, Board of Trustees and cross-community Taskforce guiding the Campus Master Planning process felt that the offer was worth exploring and the retail opportunity was then incorporated into the Campus Master Plan by Opus Group, our architects.
 
Q: Will this retail deal cover all our financial needs? A: No, it accelerates AHA’s ability to move forward and revitalize the campus, helps the school better meet its financial goals, including establishing an endowment and reducing its debt, and enables AHA to uniquely position itself as an urban college prep institution with an innovative education-retail approach to its campus. A major capital campaign is being planned and will be implemented to fund the additional financial needs of the school and the Campus Master Plan. 

Q: Aren’t we just doing this for the money and to get out of debt/establish an endowment?A: Accelerating our financial goals is an important benefit of the retail opportunity; however, there is a bigger picture here with many benefits to the school, including executing an innovative education-retail campus approach – an unique and creative approach not typically found in high school settings.  The plan calls for a close partnership with the retailers, who bring value to our campus with convenient services and products that students and parents appreciate, as well as representatives of the retailers coming into the classroom to teach units on various topics unique to their businesses.  Imagine, for example, a pharmacist teaching a chemistry unit or a bank representative teaching a unit on financial literacy.  This innovative approach helps position our uniqueness as an urban college prep institution and offers us the opportunity to illuminate all the distinct core competencies of our school: superior college prep, rigorous academics, service learning/leadership, a faith-based academic culture and strong co-curricular programs, among others.
 
Q: Why don’t we have an endowment?  A: The school has a restricted fund, which would be the basis of the endowment, combined with funding from the potential sale of the land.  Prior, the school set up a restricted fund over an endowment option as endowments require multiple millions of dollars to set up and such funding sources were not available.
 
Q: How would you use the funds from the sale of the land?A: Ultimately, the AHA Board will determine these priorities.  Generally, our aim would be to augment the current restricted fund to create a true endowment.   We would utilize the additional funds to kick-start construction on the Phase I of the school’s Campus Master Plan revitalization effort, prioritizing the new 66th entrance; Nicollet “gateway” entrance enhancements and improvements to the Southwest athletic fields.  We would also plan to use some funds to initiate a longer term debt reduction effort.
 
Q: Who owns the land that the Southwest Athletic Field sits on?A: AHA owns this land.  We are partners with the City of Richfield and are currently working together  to secure a larger grant from Hennepin County Youth Sports to assist in the field’s proposed improvements, which include a new all-weather surface.
 
Q: How does this plan benefit families with students enrolled in AHA? A: Students and families are our main priority as they are the focus of our mission.  This plan generates immediate funds that will help improve the financial condition of AHA including establishing an endowment, which generates sustainable operational funds for a vibrant future.   Our aim is to keep tuition flat wherever possible and this plan can help us do that.  As well, as part of our new financial goals, we want to make AHA accessible to more deserving people through increased financial aid.
 
Q: What about security? A: Right now, AHA has no demarcation around our campus and anybody can easily enter the campus property.  Under this plan, students entering and exiting through the front door will be closer to the public that will frequent the Mission Shops (the bulk of whom will be people in our AHA community); however, the school plans include an eight-foot-high wrought iron fence around the school’s Front Lawn campus with a gate that will be open during key morning arrival and afternoon departure times.  During all other times, this gate will be closed with a call button to the office to redirect visitors to other school entrances.  There are two additional student drop-off points in the plan via the Nicollet “Gateway” entrance with drop off at the Annex doors, as well as the new entrance on 66th, where drop-off will be on the Northwest entrance to the school.  As well, the retailers will have stepped up security per common standards for retail.
 
Q: Did you pursue the option of leasing the land to the developer?A: Yes, we did, but leasing was not an option.  As well, a leasing option doesn’t deliver the same level of financial benefits to the school.
 
Q: Can the purchase agreement include a “right of first refusal” buy-back option?A: Yes, we would plan to pursue this. 
 
Q: What about the trees on the East lawn and the monument sign – these were dedicated and have significant sentimental value. A:  These special elements will be relocated on our campus as part of the new plan.
 
Q: How are you ensuring that academics won’t suffer through all that noise and distraction? A: We would expect that the construction will be scheduled in such a way as to minimize the impact of noise such as in early morning and later evening shifts, weekends, etc. We would work to do heavy construction during the summer months, when school is not in session.   Our students have achieved during construction in the past such as with the Convocation Center and StarDome and we expect that to be the case with any future construction projects as well. 
 
Q: Whose decision is this to do it or not? A: By the end of 2013, the AHA Board of Trustees, the school’s governance body will approve, set and finalize the direction for the Campus Master Plan including the retail opportunity.
 
Q: Can students get jobs at the retailers in the retail space?A: We believe we’ll be more than just neighbors with and consumers of the retailers, we envision a partnership with the retailers whereby they come to AHA to teach class units on real-world business challenges in retail and operations and other topics unique to their focus.   We also see opportunity for student employment and internships within the establishments.  The idea of AHA owning and operating the Yogurt shop, staffing it with students and using it as an innovative real-world learning lab, has also been discussed.

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Read: Should Holy Angels Sell Land for Retail Redevelopment?