Though Minnesota continues to have one of the worst high school graduation rates in the nation for students of color—and children in our local schools are facing enormous challenges— we’re grateful to see Hope Academy students beating the odds. By God’s grace, Hope Academy has proven to be an effective model in addressing the crisis in urban education.

We were able to negotiate with Allina Health System to purchase the 153,251 sq. ft. Phillips Eye Institute property (including a 550-stall parking ramp) for a well-below market price of $6.55MM, or about $44-$46/sq. ft. (not including the ramp). Comparable properties in Minneapolis are selling for $70- $100/sq. ft. (and nicer buildings in the $200+/sq. ft. range). The cost of building a ramp is estimated between $30-40k per stall. The land value (5.6 acres) is estimated at $22MM.

No. Early gifts have made it possible for us to purchase the building debt free. All renovations will be completed at the “speed of cash.”

As they say—location, location, location! The expansion property is located right next door to Hope Academy—so close that we share a common wall—making it ideal for school expansion.

On average, 40 new students will need partners each year. Student sponsorship and Boaz gifts to Hope’s annual fund remain our top priority. We are asking our current financial partners to make gifts to the Hope Rising Campaign over and- above current annual support. In addition, we are inviting partners to help spread a passion for Hope Academy to family, friends and colleagues as we trust God to provide financial partners for each new student.

Over 10 months, Hope Academy conducted enrollment and campaign feasibility studies and significant due diligence on the property facilities. We developed an acquisition plan and timeline, a 10–12-year operational pro-forma, and a plan to grow our organizational capacity. Moreover, we engaged a third-party “educational expansion expert,” with successful school-growth experience, to review all of our expansion plans. These efforts have all yielded very positive input and results.

We engaged a third-party enrollment expert to conduct an independent research study. The study found that there is a strong market for, and awareness of, Hope Academy in Minneapolis and nearby target cities; and that investing effort and resources in recruiting will yield results. We will hire additional recruiting staff to increase our capacity to engage more target families.

In 2006, we moved into our current 210,000 square foot building with 115 students. For several years after, we carried fixed operational costs related to a building we were not fully utilizing. That changed as our enrollment grew and as God put into place a building partnership with MN Adult and Teen Challenge. Similarly, in the early years of the expansion, we’ll carry fixed operational costs associated with this new space disproportionate to our enrollment and/or cooperative partnerships with other ministries.

To recruit 400-500 more students, effectively manage operations, and support long-term financial sustainability beyond the campaign, Hope Academy will integrate these capacity building resources into our ongoing operational costs. An extensive, annual budgeting process will help ensure maximum cost efficiency as we grow to serve more students and families.