Madison Arts and Culture Alliance (MACA)

Response to RFP of Madison Board of Education (MBOE)

Re: Green Village Road School Property (GVRS)

February 01, 2008

Frequently Asked Questions

The links contained in this document refer to elements in the MACA Response to the RFP as well as the support material attached to the response, with some additional documents to assist the readers of this FAQ page. Those interested can read the entire Response on line or view a paper version at the Madison Board of Education Administration Offices. All statements made in this document are solely those of the Madison Arts and Culture Alliance, and are not those of the Madison Board of Education nor any employees of the Madison School District.

Does the Madison Board of Education intend to sell the Green Village Rd. School for one dollar?

While MACA is not speaking for the MBOE here, it is apparent that the MBOE is utilizing all of its options under the laws governing the sale of Board of Education property. According to New Jersey State Law, a school district has the following options for the sale of surplus property: 1. transfer of the property for a "nominal fee" (set by precedent at $1.00) to a specific list of nonprofit organizations (N.J.S.A.; 18A:20-9); 2. selling the property at market rate value (with two independent appraisals) to another specified group of nonprofit entities (N.J.S.A.; 18A:20-9.2) or; 3. put the property up for sale to the highest bidder (N.J.S.A.; 18A:20-6) . All three options are being pursued. This strategy was first outlined in a release from the MBOE on June 12, 2007 entitled "Update on Green Village Road School (GVR)". The Request for Proposal (RFP) released by the MBOE on October 16, 2007 cites the applicable statues.

Did the Madison Board of Education unilaterally arrive at this strategy?

Again, while MACA is not speaking for the MBOE here, it is apparent that the MBOE is following the recommendations of the Green Village Road Citizens' Committee. In early 2005, as part of the preparation for the potential passage of the referendum for the current school building project, a committee was formed to examine the final disposition of GVR. The recommendations were placed in a June 21, 2005 report ("Presentation of Information and Recommendations to the Madison Board of Education"). The committee formulated four options: 1. The MBOE retains the property; 2. The MBOE Sells the Entire Property; 3. The MBOE sells the building and transfers the fields to the Borough; 4. The MBOE transfers the entire property to the Borough, retaining the customary arts and education use of the building). The committee stated preferences, and options 1 and 4 were the committee's preferred options. However, the terms of the building referendum excluded the possibility of Option 1, and the Madison Borough Council was presented with-- and voted against-- Option 4. Option 2 was the least preferred option of the Citizen's Committee and is not being pursued at present. The MBOE is currently pursuing a modified version of the Citizen's Committee Option 3 (their third preference), wherein the MBOE retains the use of the fields. This procedure is elaborated in the RFP released on October 16, 2007.

Why is MACA pursuing the "nominal fee" option?

According to its By-Laws, MACA qualifies as a nonprofit under the list of organizations cited in the New Jersey Statutes (N.J.S.A.; 18A: 20-9). To submit a legally defensible proposal, MACA felt it was required to adhere to the response criteria as stated for nonprofits as defined by the statute. MACA did not want its proposal disqualified for being non-responsive to the RFP.

What are MACA's plans for the use of the Green Village Rd. School property?

MACA has proposed a two-phase development of the property. Phase 1 involves operating the current building at a profit as the Madison Center for Arts and Education (MCAE), where organizational and individual members of Madison's History, Arts, Cultural and Educational Community will utilize the facilities for exhibitions, performances, classes, and special functions. Full-time tenants will lease space in the building, and occasional users will have the opportunity to rent space on an as-needed basis.

Phase 2 involves a complete reconfiguration of the site where, in a partnership with the Madison Affordable Housing Corporation, a new Madison Center for Arts and Education would be built alongside a condominium unit with a 60/40 ratio of market rate to affordable housing units. Both structures would stand over a below-grade parking garage. The market rate units would subsidize most of the construction costs of the parking garage and affordable housing units, and land leases on the housing units (most likely a 99-year lease) would provide partial income for the operation of the MCAE. The MCAE would also receive income from tenant of MCAE and occasional rentors and presentors.

Aren't there enough arts centers out there as it is?

The region certainly has its share of arts and culture offerings, but the Green Village Road school is already an arts and culture center, and has been functioning as such for nearly a quarter century, housing: 1. Playwrights Theatre, one of five of New Jersey's Major Arts Institutions in Theatre; 2. the Adult School of the Chathams, Madison and Florham Park, which has been in residence in the building for over a decade, offering high-quality continuing education opportunities; 3. The Rainbow Montessori School, which has provided art-oriented preschool education for over 25 years. Also, as part of its regular programming, Playwrights Theatre has presented many coproductions with other arts offerings on the site and has provided space for students from Drew and Fairleigh Dickinson to produce work. Rarely a week goes by, where there have not been presentations and classes in the building.

The plan of the MCAE isn't to create another arts center like the Community Theatre, SOPAC, or NJPAC. The MCAE is not trying to become another Paper Mill Playhouse. The organizations that would partner in the MCAE are Madison-based history, arts, culture and education entities that either do not currently have an identifiable home or need additional space to exhibit, present, or teach classes. They are members of Madison's Arts and Culture Community, and would be provided with a consistent place to present work. This is a marketing, branding, and fundraising boon, and the economic efficiencies realized in a Community-based cultural center will allow these organizations to grow and thrive.

Moreover, the MCAE intends to be a place where education is central to its mission, providing educational opportunities for the general population in the area, but more specifically to Madison School District students, in the form of in-school and outside-school opportunities, which would be coordinated with district objectives, especially those stated in the Strategic Plan of the MBOE.

It has already been shown that GVR can function as an arts and culture center, it has been doing so for some time. The plans for the building would allow a good thing to get even better.

Will this arrangement cost the Borough of Madison any money?

No. Actually, the opposite is true. The project is designed to bring additional revenues to the Borough in the form of tax revenues from the market rate housing, nearly $225,000 annually at current rates. It will also provide the Borough Affordable Housing Credits (COAH Credits) from the units built in excess of those required by the market rate construction. Because the sale of the market-rate units will underwrite some of the costs associated with the affordable housing units, the cost to meet the COAH obligation will be significantly reduced, saving the Borough of Madison as much as $1 million.

Moreover, MACA has shown in its proposal that the impact on the local economy could be as high as $5.4 million, sustaining 167 full-time equivalent jobs, adding $3.5 million dollars to local household income, and an additional $185,000 in local government revenue. Economic impact measures calculate the direct and indirect benefits to the local economy that arts and culture activities create when they are centered in a region. These measures are used by such state entities as the New Jersey League of Municipalities, the New Jersey Division of Travel and Tourism, and the New Jersey State Council on the Arts.

Will the project MACA has proposed be self-sustaining?

Yes. MACA has shown in its proposal that through the leases with full-time occupants and rents from occasional users, the building as it exists can be operated at a surplus, with a portion of that surplus devoted to deferred maintenance and necessary capital improvements. The building in Phase 2 will be constructed with capital funds raised by a committee already formed for that purpose. Operating costs for that building will partially derive from the land leases on the market rate housing, as well as leases and rents from the tenants of MCAE. The capital campaign will also include an endowment for the operations of the building. Operating surplus will also fund that endowment.

What does the Board of Education gain from this arrangement?

While MACA cannot by statute (N.J.S.A.; 18A:20-9) offer cash for the building and property, it can and has proposed "cost-avoidance" opportunities for the MBOE ranging between $112,000-$220,000 annually in the form of educational programs and facility use for the school district. These programs would be generated by the occupants of the MCAE, coordinated with appropriate personnel in the school district, and take the form of in-school and after-school programs. This partnership with the school district coordinates well with the district's strategic plan and would provide many opportunities for the district to fulfill its strategic objectives at no cost. The district would also be able to avail itself of MCAE facilities such as dance, exhibition, meeting, and performance venues.

The market rate housing of the Phase 2 development will provide property tax revenue to the school district. Forty market-rate units could provide as much as $135,000 annually from tax revenues to the board of education at current rates ($1.35 million over 10 years).

Does MACA have tenants lined up for the building?

Yes. The Rainbow Montessori School and Playwrights Theatre will continue to occupy the building as full-time lease-paying occupants. In addition, Twelve Miles West Theatre Company has indicated that it is interested in tenancy, as has the Continuing Education Programs of both Drew and Fairleigh Dickinson Universities. The MACA proposal lists numerous other organizations that have expressed a full or part time interest.

What kind of support does this project have?

The MCAE enjoys broad-based support, from the members of our local board, to the MCAE committee focused on the funding and construction of the building, to statewide institutions like the Dodge Foundation, the New Jersey State Council on the Arts, and the New Jersey Historical Commission, which are looking at this project as a replicable model for use in other parts of the state and country.

Is the building safe to occupy?

Yes. Concerns about the building have been exaggerated. A study conducted by the MBOE concluded that the building is safe for occupancy, and that asbestos concerns are minimal to nonexistent (one square foot of exposed asbestos in the boiler room, now remedied). For the past 25 years, a large portion of the school has been occupied by the Rainbow Montessori School and the MBOE had used another portion of the school for pre-school special needs classes. The new building of Phase 2 would obviously be built to the rigorous new standards that exist.

Can the building satisfy ADA requirements?

Yes. The only two areas of the building that are not accessible are the second floor of the "old building" and the Special Needs Offices of the "new building." The remainder of the building is accessible by ramp and curb cuts, and includes accessible bathrooms. Reasonable accommodations can be made with the building in this configuration, and both Playwrights Theatre and the Rainbow Montessori School have had no ADA issues. The Phase 2 building would be totally accessible, including an elevator and other amenities.

How many children will be served by the center?

Potentially, all of the children in the Madison School District and more, through MACA's plan to coordinate programs with the District. At present, over the course of a year, Playwrights Theatre serves over 600 youngsters a year at the Green Village Road School. The Adult School has over 200 students taking classes at GVR, and The Rainbow Montessori school has a roster of nearly 100 students. Playwrights Theatre's Madison Young Playwrights Program and the Poetry Out Loud program teaches over 100 students annually in the schools and provides assembly programs of student work for over 300 students annually. With more organizations in the current building and more space made available when District functions cease, the number of users could increase tenfold.

What will happen to the recreation fields as part of this proposal?

The MBOE will retain possession of the fields. However, as part of the plan for the GVR property, MACA will provide space in the building for athletic equipment storage. Phase Two plans include storage as well as restroom facilities for the fields.