2013-14 School (MCA/MWA) Building Program

Mission/Vision The Minnetonka Seventh-day Adventist Church (MSDAC) is and has long been strongly committed to Adventist Christian Education for our children and other children who may wish to attend an Adventist Christian school. The church sees supporting Adventist Christian Education as one of its primary roles in serving our Lord, to know and share Him, as directed in the Great Commission.

School History Minnetonka Christian Academy (MCA) is the longest established Adventist Christian school in Minnesota, having been started in 1888 in Minneapolis, Minnesota. In January 1968 the school was moved to Minnetonka, Minnesota under the name of Minneapolis Junior Academy. Eventually the name was changed to Minnetonka Christian Academy, reflecting its location in the metro area.

Over the past 20-25 years the MSDAC has operated MCA as the sole constituent church. During these years there have been a number of children from other SDA churches around the metro area as well as the local community who have attended MCA. The MSDAC has felt and been blessed by the opportunity to participate in the Christian education of these children.

Throughout much of its history, MCA has been operated as a K-10 program. In 2000, the 11th and 12th grades were added to encourage young people and families to remain a part of Adventist Christian Education, a step taken because an increasing number of families within the metro area did not want to send their children to a boarding academy. In January of 2011, the MSDAC constituency voted to close the high school program because the financial burden for and debt from operating the school had become so great that the church decided it was a fiscally responsible necessity. That same academic year the possibility of creating a distance-learning educational program through MWA was being considered, the result of which evolved into a presentation at the Minnesota Conference Constituency meeting in April. Believing the distance-learning educational program was God directed and an answer to prayers for continued, vibrant Adventist Education in Minnesota, MCA began to work with MWA, the Minnesota Conference and some of its churches to help bring the program to reality under the name of MWA. When the distance-learning program did not come to fruition that first year due to timing and financial realities, MCA joined with Atlanta Adventist Academy for one year to help form a solid experience to apply to the program now being offered at MWA and its three community campuses. The MSDAC and MCA leadership has been and continues to be enthusiastically supportive of this new program.

Current Status Following the decision to partner with MWA in the distance-learning program, the MSDAC constituency voted to restructure the MCA program to a more sustainable model. The decision was made to lower the tuition rate for MCA grades K-8 and insist on all accounts being kept current. This resulted in a major reduction in school enrollment, but it has also resulted in a realized substantial reduction in the school debt that had accumulated over the years. Due to the decreased enrollment, including MWA’s local enrollment, MCA was left with a facility that exceeded its space requirements and left it with the ongoing higher maintenance and utility expenses of a large building. A decision was subsequently made to offset these costs by renting 50% of the current school building to another not-for-profit school, Nasha Shkola (NS) (a start-up charter school). This has allowed MCA and the local MWA program to operate from a solid financial position.

Because NS was in default of its financial obligations late in 2012, efforts were initiated to find another renter for the school building. In the last few months, NS has become current but has realized their program is growing more rapidly than they originally anticipated and has requested more classroom space than is currently available in the building. Wanting to protect both MCA and MWA, the church Governing Board (GB) has negotiated an early exit to the lease with NS for June 2013.

Extensive negotiations have been conducted with another not-for-profit organization, Minnesota Autism Center (MAC), which will require their control of the entire school building and a portion of the recreation field beginning July 1, 2013. (See below on details related to the organization.) Discussions with MAC have been productive and have now reached a point that MSDAC is taking the next step. Throughout negotiations the GB has been in close talks with both the MCA and MWA administrative teams to ensure that the transitional period is managed appropriately.

Plan for the Future The MSDAC continues to see a very strong need for Adventist Christian Education on our current site and has laid out a plan that will allow MCA and MWA to prosper.

Initial Building Program A GB appointed design committee has been working on the reasonable requirements to initially operate the current and anticipated ongoing MCA and MWA programs. It is likely that the new structure will be attached to the current MSDAC building and will be used, in much the same way that the current school building is being used, for school related programming and for adult and youth Sabbath School activities. Transition Plan While no final decisions have yet been made, it is anticipated that for one year the MCA and MWA programs will be conducted in the current church classrooms and in on-site, temporary classroom units or a restructured building on the church property.

Financial Overview Cash immediately available will total $700,000 ($600,000 prepaid rent, an $80,000 security deposit, $20,000 currently in building fund). Loans and fund raising will be needed for the balance of the amount to complete the project.

Costs for the building, adequate for the anticipated needs (8 classrooms and support spaces) in the near future (5 years) and renovation of the current MCA building and parking are estimated to be approximately $3,200,000. Anticipated rental income over the first five years with an MAC lease is expected to be $2.975,000 (base rent $2,375,000 plus $600,000 leasehold payment).

City of Minnetonka Involvement The potential new tenant has been in contact with the City of Minnetonka and no problems are anticipated for their leasing the building and grounds.

MCA and MSDAC have also addressed the changes being proposed with the City of Minnetonka and no significant issues are anticipated. The changes proposed generally fit within the master plan as previously approved by the city.

The New Potential Leasor/Tenant The Autism Opportunities Foundation/Minnesota Autism Center is a not-for-profit organization “dedicated to the education and treatment” of children with autism spectrum disorders (ASD) from kindergarten through high school. They have a rapidly expanding program with a long waiting list and a very strong financial standing. They receive funding through the state and private donations.

Their program is both “educational and therapeutic” in nature with staffing essentially on a one-to-one ratio to be able to meet the needs of their clients on an individual basis. These children need very special attention and skills to be able to deal with their behaviors and learning needs. The ASD population is rapidly growing and the regular school districts have neither the skills nor the finances to be able to manage this population. This organization's program is very intense and operates seven days a week although not as intensively on weekends and holidays. To provide for the safety and security of the children there will be modifications made to the building along with fencing for the recreational field.

Ongoing Commitment to Adventist Christian Education Christ has made it clear that we as Christians are to go forward working to bring as many people as possible into a saving relationship with Him. We believe that this obligation extends first to our own children and then to all others around us. We also believe that renting to an organization like the Minnesota Autism Center falls directly within the commission for Christians to care for the elderly, widowed, poor and handicapped. Lastly, entering into a lease of this nature will continue to enable the Minnetonka Seventh-day Adventist Church to partner with the Minnesota Conference, Maplewood Academy and our sister churches and schools to offer quality, Christ-centered, Adventist Christian Education to the young people of the Minnesota Conference.