How much was paid for the land?
Kinkaid paid $20 million for the 24.6 acres of land immediately adjacent to the School. The property will expand the campus by more than 60%. Our negotiating team was comprised of administrative and board leadership, business leaders and professional counselors who helped determine an appropriate price for the land. We paid an amount that was virtually the mid point between the values assigned by several independent appraisers. There is significantly greater value to us and our intended use as compared to an outside developer. The value of this property and what it means to our future is inestimable. We are thrilled to be able to consummate a transaction of this magnitude with such an important, transformational impact on the School.
Why did the sale of the property happen now?
The negotiations became serious over the course of the last year. From a historical perspective, the School has been interested in the property for more than 30 years. We have held informal discussions throughout that period. Five years ago, we formally expressed interest in the property. And, one year ago, we initiated serious negotiations. Those discussions and most recent negotiations have involved many different individuals and culminated with a signed agreement in July.
Does the School own all the property today?
We have closed on the land. However, it is a life estate, meaning that as long as the owner wishes to live on the land, she has that right. The closing gives us ownership of the land, but we will not gain full use of it until the former owner chooses to leave the property.
How will the School pay for the land?
Ultimately, a capital campaign will fund the purchase. In the short term, after in-depth analysis of all available options, the Finance Committee, with guidance from external counsel, determined that the best, most cost effective option is to finance the property with a bridge loan. Other options under consideration included borrowing from the Endowment Fund as well as public financing.
The Tomorrow’s Promise Capital Campaign
What is the name of the capital campaign?
The capital campaign is called Tomorrow’s Promise. This theme speaks to the optimism of tomorrow. It speaks to the promise of our children and their future. It also speaks to the promise that our School holds and the role it plays in helping others achieve their promise. The promise begins with the acquisition of the land and ends with the building and improvements on the campus. This campaign is an embodiment of generations of promises made and kept. And, with the new land, Tomorrow’s Promise capital campaign provides new and even greater promise for the future.
How will the Tomorrow’s Promise capital campaign be structured?
The campaign will be conducted in two phases over several years to raise funds to support the immediate and long range needs of the school. The goal for Phase One is $25 million to fund the purchase price, bank financing while gifts are received, property taxes and the development of a Master Plan. Phase One also will cover the costs of some capital improvements next summer to address access issues and parking needs and the early stage of developing the Outdoor Learning Center. Phase Two will begin in a few years after the School develops a master plan and determines the associated costs. Because the previous owner retains the right to remain on the land until she wishes to leave, we are uncertain when we will have full access to the property. So, the cost and exact timing of when work on Phase Two would begin are unknown.
When was the last capital campaign the School conducted?
Throughout our 100 plus year history, Kinkaid has conducted several, highly successful campaigns. The most recent campaign, Building for the Future, was completed in 2004 to build the Lower School, the Kinkaid Theatre, the Center for Student Life, the Quadrangle and to increase the School’s Endowment Fund. Kinkaid is what it is today because of the previous campaigns, and the community’s vision and support for the School.
Will there be other fundraising campaigns in addition to the Capital Campaign and the Annual Fund?
As with all schools, we only develop campaigns when there is a unique opportunity or vital need. We have worked hard to keep our tuition equal to or below that of peer institutions. We do this by managing our resources and utilizing distributions from our Endowment Fund. We also rely on our Annual Fund each year to provide additional opportunities for our children as well as critical resources that are not covered by tuition. A capital campaign is a more rare occurrence and only happens when we have a transformative opportunity, such as we have with the property.
Implications of the Purchase of the Land
What does this mean for the School?
It means everything to Kinkaid! It means immediate improvements to our campus and transformative change for the future. The land, which totals more than 24.6 acres, will eventually increase our campus by more than sixty percent. This is a momentous achievement for Kinkaid and will impact our children today and for generations to come. This significant acquisition provides us with the critical ability to expand and to meet the needs of current and future students with much greater physical flexibility than our current campus allows.
What changes will I see to the campus and when will I see them?
Because it is a life estate, it is difficult to put a specific timeframe on all of the changes to the campus. We do know that by next school year, parents and students will see changes to the ingress and egress of the School, increased parking capacity, the development of a new Outdoor Learning Center, and in the upcoming year or two, possibly even additional improvements to the campus and/or fields. Longer term, the School is will have a new Upper School, new cafeteria, state-of-the-art outdoor learning center, among other necessary campus additions, improvements and innovations. Because of the long-term implication of this acquisition, current parents, future parents as well as alumni will all benefit from the land and the campus of tomorrow.
What are the next steps?
There are a number of next steps, many are happening simultaneously. We are working with our neighbors in Piney Point to ensure that all parties understand the deal and its positive implication to Kinkaid and our broader community. Initial conversation and study have begun on the master plan. And, we continue to build the foundation and support necessary for a successful long-range capital campaign.
Who is involved in the long-range planning?
Initially, there is a small group of administrators and trustees. The Board of Trustees will ultimately develop the long-range plan with a focused working committee comprised of trustees, faculty, staff and other visionary leaders. Our parent community as well as faculty, staff and alumni will have an opportunity to play an important role in helping us identify priorities as we move forward with the planning process. Please remember, today’s planning is preliminary. At the point when we actually obtain full possession of the property, our needs and wants may be different. This process will be inclusive and will be flexible to ensure the School’s ultimate needs are achieved.
Does the expansion of the campus mean growing enrollment?
We understand the importance of and are committed to maintaining the feeling of community that has always been an important characteristic of Kinkaid. At this time, we have no plans for any meaningful increase in the School’s enrollment.
Will the School be conscious of the environment?
Yes. We are all responsible for the environment and Kinkaid is proud of the role it has and will continue to play in this effort. We will ensure ample green space as well as expansion of the Backyard and environmentally focused areas, including new, innovative outdoor learning spaces. Additionally, we have committed, as part of the acquisition, to keep a significant ‘barrier’ or forest between the campus and the neighborhood. This is as much for Kinkaid as it is for the neighborhood. We are also committed to a higher standard with drainage and water retention. There are already very strict requirements and building codes and we will adhere to, if not surpass, each of them as well as appropriately and sensitively address relevant environmental opportunities.