012413_10-14_Capital%20Plan

• $4.46 billion for Capacity. The Capacity Program has been expanded to include all
elements of the plan that result in new or replacement capacity for our system. The
three elements of this category are:
o $3.56 billion for New Capacity – As in the previous Plan, the Department
committed to reevaluate the capacity needs annually and to reflect any sustained
changes in trends through the amendment process. This amendment reaffirms
the additional need first identified in November 2010. We continue to
experience lower than expected costs for construction of large projects and site
specific conditions. In addition, the Department continues to capitalize on lower
cost leasing options. As a result of these efficiencies, the Department is
proposing to fund more than 1,480 additional seats in this Plan. Other changes
to the capacity section of the Plan include the deferral of the 738 seats
associated with the Willits Point development. Consistent with the City’s
announcement of the delay in this development project these seats are being
deferred to a future plan. The Willits Point Development project was at no cost
to the Department of Education’s capital program. The Department is now
estimating the $3.6 billion allocated for new capacity will fund the construction
of approximately 32,300 seats. The additional seats will strengthen our response
to ongoing demographic growth in targeted neighborhoods. Funding will also
allow for the design of over 2,500 more seats where construction will be funded
by the FY 15-19 Plan. The total seats to be funded in this Plan increases from
33,888 in the 2012 Adopted Amendment to 34,819. This Proposed Amendment
also provides an update on siting of the proposed school facilities under this
Plan.
o $690 million for a Facility Replacement Program – This program funds the
replacement of several facilities where leases will expire during this Plan. In
some instances, a landlord may refuse to renew a lease despite our best efforts
to offer a market rate renewal. In other instances, we may choose to replace a
space that we have determined as not satisfactory for instruction and cannot be
improved. The Facility Replacement Program is being reduced by
approximately $60 million in the February Amendment due to the continuing
trend of landlords renewing leases on reasonable terms. The savings within the
Facility Replacement Program will supplement funding for additional new
capacity.
o $210 million for Charter Partnership – The interest generated by the Charter
and Partnership program in the FY2005 – 2009 Plan demonstrates the desire of
private partners to establish relationships with the DOE to meet the demand for
new school facility development and high quality educational options. Partners
provide valuable private-sector resources to support the construction of
buildings supporting public school students. Indeed, in the FY2005 – 2009
Plan, the DOE paid only 73 cents on the dollar for the construction of these
schools. Given the synergy developed during the FY2005 – 2009 Plan, DOE
will continue exploring ways to extend the successes created through the
Charter and Partnership Program by aligning charter school development to
areas of capacity need and community interest where possible.
• $7.37 billion for Capital Investment. The Capital Investment portion of this Plan
includes three main categories:
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