The latest cash grab : Teacher/charter school villages

gentri4

 

TFA recognizes the value of the Centers concept and has entered into a Memorandum of Understanding with Seawall Development Company to replicate the Centers for Educational Excellence model across the country. Philadelphia, along with Washington, D.C. and New Orleans, is a TFA-identified growth area, and TFA has committed to being the lead commercial tenant in these developments, with their corps members making up the majority of residential tenants.

TFA: The New Gentrifiers

As I noted in a previous article titled The Battle in Seattle Against Yet Another Charter School Invasion, a developer plans to build a project that includes retail, low income housing and at one time, a charter school, the Green Dot charter school chain, in Southeast Seattle.

Based on further research, I found this is not an anomaly but a national trend.

Bankers, developers and real estate brokers are working together with Teach for America (TFA) and charter school enterprises to offer low income housing mainly for Teach for America recruits and other teachers who do not have adequate pay for clean and safe housing along with free space for charter schools through city and state support. These are our tax dollars paying for highly lucrative business ventures where all the profit goes back to the bankers, developers and brokers.

These people are not developing these projects out of the goodness of their hearts, they are doing it for, of course, the money.

dollars2.jpg

So how does this work?

Basically, developers will get money from the city or state to provide low income housing in blighted areas or low-income communities. A charter school is brought in to sweeten the pot along with teachers who will begin the process of gentrification.

In a few years, the local community becomes popular for basically the creative class or white middle and upper classes and before you know it, you have a Soho, a Mission district in San Francisco, a Northeast Portland.

Property values begin to rise and an investment made with public money goes into the pockets of the bankers, developers and brokers.

For Teach for America, Inc. it’s a perk. They can retain recruits at very low pay because they now have “affordable housing” for the working poor and charter schools can come in with little to no cash required because of city and/or state subsidies.

Sweet deal for the 1%, not so good for the rest of us.

When the value of the property around the school begins to skyrocket, those who were to benefit from the developments will not be able to afford to live anywhere near the original charter school/low income housing sites.

And, if a charter school goes belly up, as a large percentage of them do, less money has been lost and the space is move-in ready for the next charter school venture.

According to an article titled Why Are Community Development Lenders Financing Charter Schools?  published in ShelterForce:

Some CDLF [Community Development Lenders] practitioners also believe that charter schools are conducive to urban revitalization because they provide middle-class families with “safe” educational alternatives that encourage them to move to and stay in urban areas, helping to break up the concentrated poverty found in many of those areas. Research documents that charter schools are used by higher-income, primarily white urban residents who do not want to send their children to local public schools serving large numbers of low-income, black and brown students.

Other studies provide evidence that charter schools are used by more affluent whites in non-urban communities as well, as a means of facilitating segregation. More generally, numerous studies have found that charter schools lead to increases in segregation in education by race, ethnicity, and income, across metropolitan areas

  1. It’s Where the Money Is

CDLFs are mission-driven organizations, but they also respond to the market. There are substantial and growing public and private incentives for investing in charter schools. Those incentives are particularly attractive given the limited availability of other forms of subsidy.

One of the most effective forms of subsidy to encourage CDLFs to support charter school expansion is the U.S. Department of Education’s (USDOE) Credit Enhancement for Charter School Facilities (CECSF) program. The USDOE awarded $280.9 million in CECSF grants between 2002 and 2015 “to public and nonprofit entities to develop innovative credit enhancement models that assist charter schools in leveraging capital from the private sector.” CDLFs received at least 75 percent of these CECSF grant dollars

Indeed, the program has been very successful in leveraging private capital with federal funding sources. LISC calculated that, through 2012, approximately $250 million in CECSF dollars leveraged an additional $3.2 billion in charter school facility financing, with private investors attracted by the lower risk and greater financial profitability.

0dqonuEb_400x400

Before heading to other cities where this is happening, I thought it would be worth noting that the Homesight low-income housing development in Southeast Seattle that was to house Green Dot charter school and populated by Teach for America recruits has one financial backer of note, Bill Gates. Bill Gates is a proponent of school privatization. The Gates Foundation provided Homesight with $100,000 to support the Regional Equity Network to advance a community-led agenda in the Puget Sound region”* and $16 million to Green Dot “to support the expansion of Green Dot Public Schools into the state of Washington”. Also of note, two of Washington Teach for America’s “Supporters” are Goldman Sachs (who finances several of these charter school/low income developments around the country) and Avenue Properties.

So, let’s see what’s been happening elsewhere.

gentri2

One of the first examples of these business ventures was one Cory Booker pushed back in 2012. Cory Booker is no friend of public education because of his ties to the donor class so this comes as no surprise to those who have been following him.

As the then Mayor of Newark, Cory Booker stated at the groundbreaking of the Teachers Village per NBC New York:

“This is how we reinvent and rebuild a great American city,” Mayor Cory Booker declared when ground was broken for Teachers Village, a downtown development of eight buildings planned to have 200 apartments for teachers, three charter schools, a day care center and stores. It’s being designed by architect Richard Meier, a Newark native best known for designing the Getty Center in Los Angeles. The $150 million price is being covered by a combination of private and public funds.

In the next paragraph, the reporter writes:

The hope is that schools will be better with teachers who live in the community, and that it will create a middle-class enclave in a city where nearly one-third of families with children live in poverty. Middle-class residents can bring neighborhoods stability, attract more businesses and ultimately improve tax revenue.

Per New Jersey Business:

The project was awarded nearly $40 million in Urban Transit Hub tax credits from the state Economic Development Authority and allocated $60 million in federal New Markets tax credits for the school portion. Other public financing came from the city of Newark, the state Casino Reinvestment Development Authority, and federal Qualified School Construction Bonds, according to an EDA memo. Private financing came from Goldman Sachs, Prudential Financial Corp., TD Bank and New Jersey Community Capital, Beit said. In the early months of the recession, Beit said, Berggruen’s unwavering commitment to the project — Berggruen said he considers his investment “long-term” — brought everyone else together.

Teachers Village now has three charter schools.

All of this out of public coffers at an estimated $200 million.

Originally, leaders of the teachers’ unions were all for Teachers Village until they came to realize the concept was not for public school teachers but for Teach for America recruits. (It’s hard to imagine these folks were that naïve.)

According to Ed Week in an article titled Projects Couple Affordable Teacher Housing With New School Construction:

Newark Teachers Union President John M. Abeigon says the union, an affiliate of the American Federation of Teachers, initially backed the project because it thought it would benefit more traditional public school teachers. At the start, he says, the developers had emphasized its planned support for such educators.

But Abeigon contends that the project then became aligned with what he calls the “corporate charter school movement.” For evidence, he cites the complex’s three charter schools and the fact that most of the apartments are rented to charter teachers and staff.

Abeigon’s concerns are echoed by Randi Weingarten, president of the AFT.

“This was supposed to be a way to recruit and support and retain Newark public school teachers,” she said. “That was the basis on which then-president of the Newark Teachers Union Joe Del Grosso [now deceased] and the AFT said this makes sense, because we really do believe in the idea of teachers living in the communities in which they teach. But Teachers Village came to be about charter teachers alone and that was dead wrong.”

Abeigon also argues that the complex’s close ties to charter schools belie the developers’ professed commitment to the long-term health of the community—a sentiment shared by other critics of the project.

“It’s a known fact that traditional public school teachers, who I refer to as career educators, stay longer than charter school teachers, so their commitment and investment in the community is that much greater,” he said. “Those living in Teachers Village are going to be turnaround tenants. They’ll do their two-year stints with [Teach For America] or a charter school, beef up their résumés, and then go get a job elsewhere. They aren’t going to really be invested in Newark.”

And in New York, another housing development. Per Affordable Housing Finance:

A new vibrant, mixed-use development that is providing much-needed affordable housing, a charter school for underserved students, and nonprofit office space has been built on an underutilized area of a New York City Housing Authority (NYCHA) site in East Harlem.

Jonathan Rose Cos., Harlem RBI, and Civic Builders partnered to create the East Harlem Center for Living & Learning on the site of George Washington Houses. The development includes the 89-unit Yomo Toro Apartments; the DREAM Charter School…

The total development cost for the project was approximately $84 million, including $30 million for the Yomo Toro Apartments. The affordable housing portion was financed through low-income housing tax credit equity provided by Enterprise Community Investment and sourced by JPMorgan Capital Corp., first and second mortgages from the New York City Housing Development Corp. (HDC), a loan from New York City Department of Housing Preservation and Development, Reso A funding from City Council speaker Melissa Mark-Viverito, and a grant from the New York State Energy Research and Development Authority.

In San Diego, there was a push to revise code requirements that would allow a charter school to be a part of a low-income housing development.

The community had issues with the school bringing with it additional unwanted traffic to the neighborhood causing the variance for the charter school to be tabled.

The difference between what happened in San Diego and what occurred in Seattle is that the variance request was reviewed by way public meetings in San Diego, not behind closed doors as was done in Seattle.

Thanks to the efforts of former School Board Director Sue Peters, the school board and the public were alerted to the second attempt by Green Dot charter school to receive special treatment by the City of Seattle in terms of receiving a code variance.

RBHGroup-logoThe RBH Group, who were the developers for the Newark project and whose CEO Ron Beit sits on the board of Teach for America, Inc. in New Jersey, then went to Hartford, Connecticut.

According to a report published by Goldman Sachs:

RBH Group, the developer of Newark’s Teachers Village, announced the completion of financing and the start of construction on Hartford’s Teachers Corner, a mixed-use apartment complex in downtown Hartford aimed specifically at teachers

RBH Group’s founder and president Ron Beit said, “Teachers Corner represents a public and private partnership committed to urban reinvestment, building affordable and workforce housing and contributing to revitalizing the center of the city.

Following the Teachers Village project in Newark, NJ, the RBH Group, through its joint venture with the Goldman Sachs Urban Investment Group, partnered with Prudential Social Investment Group, the City of Hartford and State of Connecticut to build the $20M project

Funders include City of Hartford, Connecticut Housing Finance Authority, State Department of Housing, Capital Region Development Authority CRDA, State Department of Economic and Community Development, Prudential Social Investment Group and Goldman Sachs Urban Investment Group.

In Baltimore, per Urban Land magazine:

The $21 million renovation of a long-vacant, century-old former tin box manufacturing plant in Baltimore’s Charles Village neighborhood was completed in summer 2009 by Seawall, founded by father and son Donald [Previously on the Teach for America, Baltimore Advisory Board] and Thibault Manekin. The project includes 40 apartments—ten reserved as affordable—and 35,000 square feet (3,250 sq m) of commercial space.

All the apartments are rented to school teachers at substantial discounts to market rental rates, and all office space—with the exception of Seawall’s headquarters—is leased to education-related organizations, including Teach for America.

Over 70 percent of the residents are members of Teach for America who work in Baltimore’s public school system, Morville notes. Several others are participating in the Baltimore system’s City Teacher Residency program, and some teach in parochial schools…

The financing mechanism that really made the project pencil out was the pairing of the New Markets Tax Credit (NMTC) with federal and state historic tax credits, Morville says. The project is located in a census tract defined as “highly distressed” under the NMTC program.

And in San Jose:

Developer proposes project with charter school, affordable housing for San Jose ‘urban village’.

With affordable housing and a [Aspire] charter school, the mixed-use project would be a first for San Jose and transform a currently vacant industrial property in the Alum Rock area.

As with charter schools and the Common Core Standards, venture capitalists are cashing in on public school funding making school districts even more strapped for cash while desperately trying to keep schools together, employ certified teachers and adequately staff their schools.

Make no mistake about it, these “teacher villages” are not about the children or the communities they live in. This is yet another big grab for cash by financial enterprises.

Dora Taylor

*Post Script:

It’s a devious web that Bill Gates and others weave particularly in the Seattle area where many of us caught on several years ago to the efforts by a few to privatize public schools in the US.

For that reason, it’s important to explain some connections.

Homesight and Regional Equity Network (REN):

Tony To, the Executive Director of Homesight is a co-chair for REN. Thus, the grant from Gates describes two receiving parties, Homesight and REN.

 

Recommended articles:

SIX REASONS WHY WE DON’T WANT GREEN DOT CHARTER SCHOOLS IN SEATTLE

This Is What Happens When You Criticize Teach for America: An internal memo reveals how TFA’s obsessive PR game covers up its lack of results in order to justify greater expansion.

Why Are Community Development Lenders Financing Charter Schools?

Public Schools to Community Development (A highly recommended deep dive into what the thinking is on the part of the moneyed community.)


Critics rip plans for $22M charter school at Cayce Homes

Who Will Live In Newark’s Teachers Village? TFAers

TFA: The New Gentrifiers

Policy Link: A recent find that shows who is connected to what organizations in Washington State

Projects Couple Affordable Teacher Housing With New School Construction

WHEDco Bard Academy Charter School to share space in Bronx with affordable housing and music center in 2013  

It’s an East Harlem DREAM come true: a new charter school beneath affordable housing 

EMAILS REVEAL THE “GATES MACHINE” IN ACTION AFTER THE WASHINGTON STATE SUPREME COURT’S DECISION THAT CHARTER SCHOOLS ARE UNCONSTITUTIONAL

BILL GATES IN WASHINGTON STATE: MAYORAL CONTROL AND CHARTER SCHOOLS

WHAT BILL GATES HAS SPENT SO FAR IN OUR STATE TO SUPPORT CHARTER SCHOOLS

Washington State: Charter School Backers Want to Oust Judge Who Authored Anti-Charter Decision

 

 

 

 

 

 

 

 

Advertisements

Dr. Cornell West and Chris Hedges at Goldman Sachs Mock Trial and a Parent’s Stunning Testimony

Go into this at 17 minutes when a Department of Education employee and a parent starts talking about the privatization of our school systems, charter schools and the targeting of low-income and minority children, corporate greed, hedge fund managers and the Broad Foundation. Chris Hedges and Dr. West go further into the corporatization of our school system describing the dumbing down of the curriculum in our schools with the Common Core standards, standardized testing and staffing charter schools with temps rather than prepared, certified teachers.

The parent’s take on all of this is stunning.

Share this far and wide particularly with our PTA members who think they’re doing”poor children” a favor.

The education segment is 17:00 to 28:10.

Dora

After this Mock Trial, many went to Goldman Sachs to deliver the verdict. Most were arrested in front of the Goldman Sachs’ headquarters including Chris Hedges.

Chris Hedges and the Occupation Movement

Chris Hedges is a journalist and author, specializing in American and Middle Eastern politics and society. He is currently a senior fellow at The Nation Institute in New York City and a Lecturer in the Council of the Humanities and the Anschutz Distinguished Fellow at Princeton University. He spent nearly two decades as a foreign correspondent in Central America, the Middle East, Africa and the Balkans. He has reported from more than fifty countries, and has worked for “The Christian Science Monitor”, “National Public Radio”, “The Dallas Morning News” and “The New York Times”, where he spent fifteen years.

Hedges was part of “The New York Times” team that won the 2002 Pulitzer Prize for the paper’s coverage of global terrorism. He received the 2002 Amnesty International Global Award for Human Rights Journalism.

Chris Hedges and Amy Goodman on Charlie Rose, A discussion about Occupy Wall Street.

An interview with Chris Hedges on October 9, 2011 in Zucotti Park.

Then a Q and A on October 9, 2011

Why Chris Hedges went to Washington, DC on October 6, 2011.

And finally, the statement that he gave in Zucotti Park during a mock trail on Goldman Sachs led by Dr. Cornell West and Mr. Hedges before his arrest on November 2, 2011 in front of Goldman Sachs:

Goldman Sachs, which received more subsidies and bailout-related funds than any other investment bank because the Federal Reserve permitted it to become a bank holding company under its “emergency situation,” has used billions in taxpayer money to enrich itself and reward its top executives. It handed its senior employees a staggering $18 billion in 2009, $16 billion in 2010 and $10 billion in 2011 in mega-bonuses. This massive transfer of wealth upwards by the Bush and Obama administrations, now estimated at $13 trillion to $14 trillion, went into the pockets of those who carried out fraud and criminal activity rather than the victims who lost their jobs, their savings and often their homes.

Goldman Sachs’ commodities index is the most heavily traded in the world. Goldman Sachs hoards rice, wheat, corn, sugar and livestock and jacks up commodity prices around the globe so that poor families can no longer afford basic staples and literally starve. Goldman Sachs is able to carry out its malfeasance at home and in global markets because it has former officials filtered throughout the government and lavishly funds compliant politicians—including Barack Obama, who received $1 million from employees at Goldman Sachs in 2008 when he ran for president. These politicians, in return, permit Goldman Sachs to ignore security laws that under a functioning judiciary system would see the firm indicted for felony fraud. Or, as in the case of Bill Clinton, these politicians pass laws such as the 2000 Commodity Futures Modernization Act that effectively removed all oversight and outside control over the speculation in commodities, one of the major reasons food prices have soared. In 2008 and again in 2010 prices for crops such as rice, wheat and corn doubled and even tripled, making life precarious for hundreds of millions of people. And it was all done so a few corporate oligarchs, the 1 percent, could make personal fortunes in the tens and hundreds of millions of dollars. Despite a damning 650-page Senate subcommittee investigation report, no individual at Goldman Sachs has been indicted, although the report accuses Goldman of defrauding its clients.

When the government in the fall 2008 provided the firm with billions of dollars in the form of cheap loans, FDIC debt guarantees, TARP, AIG make-wholes, and a late-night label-shift from investment bank to bank holding company, giving the firm access to excessive Federal Reserve aid, access [the corporation] still has, it enabled and abetted Goldman’s criminal behavior. Goldman Sachs unloaded billions in worthless securities to its clients, decimating 401(k)s, pension and mutual funds. The firm misled investors about the true nature of these worthless securities, insisted the securities they were pushing on their clients were sound, and hid the material fact that, simultaneously, they were betting against these same securities—$2 billion against just one of their deals. The firm then had the gall to extort from its victims—us—to make good on its bets when the global economy it helped trash lost $40 trillion in worldwide wealth and huge insurance firms were unable to cover their bad debts.

The Securities Act of 1933, established in the wake of the massive fraud that pervaded the securities market before the 1929 Crash, was written to ensure that “any securities transactions are not based on fraudulent information or practices.” The act “prohibits deceit, misrepresentation, and other fraud in the sale of securities.” The subcommittee report indicates that Goldman Sachs clearly broke security laws.

As part of the political theater that has come to replace the legislative and judicial process, the Securities and Exchange Commission agreed to a $550 million settlement whereby Goldman Sachs admitted it showed “incomplete” information in marketing materials and that it was a “mistake” to not disclose the nature of its portfolio selection committee. This fine was a payoff to the SEC by Goldman Sachs of about four days’ worth of revenue, and in return they avoided going to court. CEO Lloyd Blankfein apparently not only lied to clients, but to the subcommittee itself on April 27, 2010, when he told lawmakers: “We didn’t have a massive short against the housing market, and we certainly did not bet against our clients.” Yet, they did.

And yet nothing has been done. No Goldman Sachs officials have gone to trial. This is because there is no way within the corporate state to vote against the interests of Goldman Sachs. There is no way through the formal mechanisms of power to restore the rule of law. There is no way to protect the ordinary citizen and the poor around the globe from the predatory activity of financial institutions such as Goldman Sachs. Since our courts refuse to put on trial the senior executives at Goldman Sachs, including Blankfein, who carried out these crimes and lied to cover them up, we will. Speculators like those in Goldman Sachs—who in the 17th century when speculation was a crime would have been hanged—must be prevented by law from again destroying our economy, preying on ordinary citizens, hoarding food so the poor starve and running our political process. We are paying for these crimes—not those who orchestrated perhaps the most massive fraud in human history. Our teachers, police, firefighters and public employees are losing their jobs so speculators like Blankfein can make an estimated $250,000 a day. Working men and women are losing their homes and going into personal bankruptcy because they cannot pay their medical bills. Our unemployed, far closer to 20 percent than the official 9 percent, are in deep distress all so a criminal class, a few blocks from where I speak, can wallow in luxury with mansions and yachts and swollen bank accounts.

What we are asking for today is simple—it is a return to the rule of law. And since the formal mechanisms of power refuse to restore the rule of law, then we, the 99 percent, will have to see that justice is done.