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With CSDC's help the Mountain School of Flagstaff, AZ was able to acquire its existing building and begin construction on a new, 5,580 sq. ft. building with 2 additional classrooms, a computer lab, and a gymnasium/cafeteria that will include a stage for performances and full kitchen.
How the Funding Came Together
Although Mountain School has been in operation for several years, its small enrollment (which is deliberately kept low) resulted in historically tight debt service coverage. Additionally, with the planned new facility not opening until the 2007-2008 school year, there was no chance to increase enrollment - and expand debt service coverage - over the short term. To meet this challenge CSDC established a $200,000 debt service reserve fund for the school, allowing Chase Bank to provide the $2.1 million loan needed for purchase and construction.
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