Fiscal restoration: Council considers $734,500 loan to building arts college
Brad Nettles
The Post and Courier
John Paul Hughley, professor of building conservation at the American College of the Building Arts, explains to fourth-year students Monday how a crack in the exterior of the Old City Jail can affect the integrity of the structure.
Brad Nettles
The Post and Courier
First-year students in the masonry, architectural stone and plaster class at the college learn how to lay out a foundation Monday.
The American College of the Building Arts is facing financial trouble that 'if unaddressed, could mean the end of the college,' according to Charleston Mayor Joe Riley, so the city plans to loan the college $734,500 for operating costs.
City Council will consider the loan this evening.
"The American College of the Building Arts, I believe, has the potential to be an institution of extraordinary value to our community," Riley said. "I have every confidence they will be a success, but they need financial assistance now."
The small college is beginning its fourth academic year and will graduate its first class of seven students this spring.
The college teaches Colonial-era building techniques such as plasterwork and ornamental ironwork, which were needed and in short supply after Charleston was hit by Hurricane Hugo in 1989.
Lt. Gen. Colby Broadwater became president of the college in April, and he agreed Monday with the mayor's assessment of the institution's finances.
Broadwater said the city routinely helps businesses and other educational institutions that want to move to Charleston or stay in Charleston, and he said this situation is similar.
"We are here, and we have an economic impact on the community," he said. "We feel this is appropriate."
Riley said directly loaning money to a college is an unusual step for the city, but he also defended the proposition, noting that the College of Charleston was a city-funded institution.
In 2004 the city lent financial support to the fledgling Charleston School of Law. The city purchased a property the college wanted for $1,170,500, then sold it to the college for $875,000, with most of that money not due for repayment for 10 years.
At the time, Riley said the Charleston School of Law might leave the peninsula if the land were not made available for college expansion. The law school found other space, however, and uses the property on the corner of Meeting and Woolfe streets as a parking lot.
Broadwater said he is confident the American College of the Building Arts' will be able to repay the proposed city loan.
He said that once the college achieves pre-accreditation status, possibly this fall, students will be able to obtain federal loans and other financial aid that have not been available.
That should increase the number of students and revenues from tuition, Broadwater said. And accreditation should help with fundraising efforts.
The loan comes with generous repayment terms, including no payments until late 2010 and an interest rate of 5 percent.
The assistance would come at a time when Charleston is facing one of its toughest budget years in memory, squeezed between declining tax revenue and rising fuel and insurance costs.
Riley said the money would not come at the expense of other services. It would come from the city's undesignated fund balance, an $18.4 million fund the city keeps in case of an emergency, such as a hurricane.
Pierre Manigault, chairman of the college's board of trustees, said the school's survival is not in question but the next six months will be a critical time for the institution. He said Broadwater has been doing a good job of trimming expenses.
"We're on track to have a balanced budget and be able to live within it," he said.
Manigault is also chairman of the board of Evening Post Publishing, parent company of Charleston.net and The Post and Courier.
The American College of the Building Arts is headquartered in the Noisette development on the former Navy base in North Charleston. It owns and holds classes at the Old City Jail in Charleston and McLeod Plantation on James Island. The college purchased the Old City Jail from the Charleston Housing Authority for $3, as part of an agreement to restore the historic building, and bought McLeod Plantation for $850,000.
Building arts college milestones
American College of the Building Arts timeline:
2008: The college continues to seek accreditation, but financial conditions are deteriorating and the college turns to the city for help. The city rejects the idea of an outright cash grant, but considers loaning the college $734,500, with no payments due until 2010. There are 24 full-time and part-time students in the college's incoming fall class, and the seven remaining members of the Class of 2009 are expected to be the college's first graduates in the spring.
2007: The state's Competitive Grants Committee awards $100,000 for the American College of the Building Arts for general operations.
2006: The school has 40 students. Financial reports to the Internal Revenue Service show that in fiscal 2006 the college had $1.75 million in expenses and $1.37 million in revenue, with most of the revenue coming from private donations and government grants. David R. AvRutick steps down as college president.
2005: Nine men and six women, the Class of 2009, are enrolled at the American College of the Building Arts. Tuition is $18,372.
2004: The school receives a $2.75 million grant from the U.S. Department of Labor, changes its name to "American College of the Building Arts."
The college completes its $850,000 purchase of historic McLeod Plantation on James Island from the Historic Charleston Foundation, despite a lawsuit filed by a group opposed to development of the site. The South Carolina Commission on Higher Education unanimously agrees to let the college recruit students for classes starting in the fall of 2005.
2002: Government money and private donations continue to roll in for the renovation of the historic Old City Jail, including a $750,000 grant from the federal government, $375,000 from individuals and corporations, $50,000 from the city of Charleston, $25,000 from the National Trust for Historic Preservation and $270,000 from the state of South Carolina.
2000: The Charleston Housing Authority sells the historic Old City Jail to the school for $3. The school plans to stabilize and restore the historic buildings, and use it as part of the school campus.
1998: School of the Building Arts is founded in Charleston.
Reach David Slade at 937-5552 or dslade@postandcourier.com.
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Comments
This article has 22 comment(s)
Posted by palmettoruckus on August 19, 2008 at 1:18 a.m. (Suggest removal)
FIRST!
Posted by CedarPosts on August 19, 2008 at 2:34 a.m. (Suggest removal)
"In 2004 the city lent financial support to the fledgling Charleston School of Law. The city purchased a property the college wanted for $1,170,500.00 then sold it to the college for $875,000.00 with most of that money not due for repayment for 10 years.
At the time, Riley said the Charleston School of Law might leave the peninsula if the land were not made available for college expansion. The law school found other space, however, and uses the property on the corner of Meeting and Woolfe streets as a parking lot. "
OK so the City of Charleston and the Mayor have pretty bad business skills, ie buy property at $1,170,500, then sell it for $295,500.00 less the same day and not collect interest for ten years on the money let's see at 5.00% that's like $50,000.00 per year for 10 years so that's what?, oh something around $800,000.00 compounded, in lost interest.
Assuming the College pays the 875k back in 2014 not too bad we are only out oh $1,000,000.00 plus..
But hey it's a really nice parking lot for the students.
And we wonder why our property taxes continue to out pace inflation?
Posted by eatmorecollards on August 19, 2008 at 5:35 a.m. (Suggest removal)
Sometimes these puppies grow into the hound from hell and bite you on the azz.
Posted by WhoCares on August 19, 2008 at 5:47 a.m. (Suggest removal)
dumb, dumb, dumb ...close it!
Posted by feb251939 on August 19, 2008 at 5:55 a.m. (Suggest removal)
It won't be long before "The Little King" will be asking for another one of his famous half penny tax hikes.
Posted by justmyview on August 19, 2008 at 6:16 a.m. (Suggest removal)
Why should more taxpayers money go into this venture? If it is a private college why not let investors put money into it.
Posted by DoaMM on August 19, 2008 at 7:25 a.m. (Suggest removal)
This is a pretty retarded idea...Money in the pockets, money in the pockets, etc.
Someone's getting a new yacht out of this, I'm sure...or maybe one of those new homes that's going to be built on the "ever-shifting" inlet on Kiawah that's about to be opened up.
Oh, well! <gotta win the lottery, gotta win the lottery...>
Posted by DoaMM on August 19, 2008 at 7:41 a.m. (Suggest removal)
CB, just make sure it's a wall that doesn't have any ornamental ironwork on it...It may not be constructed properly, seeing as how they haven't graduated yet...
Posted by charleston1960 on August 19, 2008 at 7:52 a.m. (Suggest removal)
Congratulations to all the TAX PAYING citizens who re-voted this tax wasting buffoon back to office to waste more of your tax dollars. It $1.3 million in revenue (most of this is tax money funded grants). Take away the $1.75 million to run the school and (drum roll please) you have a loss of close to $500,000. Who cares if this cash cow leaves the peninsular? There are other opportunities to get an education from ESTABLISHED colleges in this area and around the state. If the arts school is in financial trouble, then sell McLeod to the preservation groups and find an economical piece of property. Or better yet, give the loan to one of the local colleges (Trident Tech) to establish the type of program the Arts College would be teaching. All I see here is progressive wasting of Federal, State and City government’s tax dollars in order to graduate 10 to 15 students. It is no wonder there are a lot of upstart private schools wanting to come into this part of the state. Riley will use your tax dollars to keep them afloat. The economy being as weak as it is and elected officials throwing money into a sinkhole in hopes to fill it up.
BTW CB if Riley does not fund your school you should sue the city for discrimination!
Posted by DoaMM on August 19, 2008 at 9:10 a.m. (Suggest removal)
So true, CB...
Posted by mkris on August 19, 2008 at 9:20 a.m. (Suggest removal)
Is the city going to take back a mortgage on the McLeod Plantation? Guess not..... so when it goies under, taxpayers get to pay twice.... way to go Joe.
Posted by goodkarmasc on August 19, 2008 at 9:49 a.m. (Suggest removal)
Don't we already have one of the top TECHNICAL college systems in the nation? (Thank you Gov/Sen Hollings!)
Why are we reinventing the wheel with a "building arts" college? It simply doesn't make sense.
Posted by oldglory on August 19, 2008 at 9:50 a.m. (Suggest removal)
justmyview, how 'bout the folks that own those homes with all the ornamental ironwork? any of us have that around our homes? doubt it
Posted by coolfreaknbeans on August 19, 2008 at 10:06 a.m. (Suggest removal)
Why couldnt our local colleges just add these classes?They need a whole college for it?These is so stupid.And our buses are flaming death traps.Geez
Posted by goodkarmasc on August 19, 2008 at 10:11 a.m. (Suggest removal)
http://www.sctechsystem.com/facts.htm
For your edification ColdBeer.
Posted by AHLeland on August 19, 2008 at 1:23 p.m. (Suggest removal)
CB - Just to clarify, Georgia Tech and Virginia Tech are not technical colleges. Georgia Tech is actually the Georgia Institute of Technology and the same goes for MIT but with Massachusetts in the name. Apples vs. oranges.
Posted by STREETLAW on August 19, 2008 at 1:55 p.m. (Suggest removal)
But you see we need colleges. Colleges bring us football.
We need football now! And even colder beer!
County schools have already started. Why not colleges?
Why not football?
Does the American College of the Building Arts have a team?
Posted by Neponset on August 19, 2008 at 3:20 p.m. (Suggest removal)
To be frank, I have not read the above posts, but my take on this is: I would rather have a constructive rather than destructive college here at tax payers expense, ie building vice law. In addition to no interest on the loan, lets look at the property tax status of this law school property - are they paying any?.
Posted by eatmorecollards on August 19, 2008 at 6:13 p.m. (Suggest removal)
I must have had it wrong all these years. I always thought that in times gone by, the traditional building trades were learned by being an apprentice to a master of one of the building trades, masonry, plastering, carpentry or whatever. A master builder who himself was once an apprentice, and learned his trade from years of back breaking grueling work. Could they have actually been schooled in the Liberal Arts before becoming tradesmen?
Posted by eatmorecollards on August 19, 2008 at 8:26 p.m. (Suggest removal)
sofa_king-you don't have a single post on the content of any article. If you think your advancing the apeal and ideology of the democratic party, your doing a piss poor job. Keep up the good work.
Posted by NanMcCarthy on August 20, 2008 at 12:17 p.m. (Suggest removal)
Judging from some of the user names I see here, as well as the comments, I would bet that a lot of you wouldn't know the difference between ornamental ironwork and a chain link fence. Then you proceed to make negative and disparaging remarks regarding something about which you have no knowledge. Sad.
Posted by Sinjonsmyth on August 22, 2008 at 9:44 p.m. (Suggest removal)
Seems like people need to start to open their eyes and go out and find out whats going on in your own back yard. If you've seen what the students at this college are doing none of the comments on this page would on here. These students are doing amazing things. Go and check it out and find out what is really happening People.