Retiring the Maitland Jewish Community Campus debt early – by 2020 – will result in annual savings of $381,400 to the Jewish community.
This annual debt obligation consumes financial resources that could otherwise be invested in programs and services that directly benefit Jews in Greater Orlando.
Continuing to carry this debt means:
A campus that is set free from debt is a campus that can once again grow and thrive as a hub of Jewish life for Greater Orlando. Eliminating the debt will redeploy much-needed funds into our Jewish community. Indeed, the benefits of debt retirement will have a positive ripple effect beyond the Maitland Jewish Community Campus.
A debt-free campus means:
Campus 2020 Advisory Board members and Federation leaders met March 27 on the Maitland Jewish Community Campus. From left: Dick Appelbaum, Ron Shader, Dottie Appelbaum, Mardi Shader, Olga Yorish, Dr. Ed Zissman, Allan Goldberg, Michael Soll, Rhonda Forest and Joe Hara. Board members not pictured: Neal Crasnow and Dr. Susan Drukman; Diane Goldberg; Anita Hara; Mark and Caryn Israel; Julian and Sheryl Meitin; and Phyllis Zissman.
Campus 2020 already has secured commitments of more than $1.3 million in matching funds from The Harris Rosen Foundation and The Jewish Capital Alliance. Your gift to Campus 2020 may qualify for matching funds from one or both grants.
This $1,000,000 matching grant will be applied on a dollar-to-dollar matching cash basis according to the following criteria:
The Jewish Capital Alliance has pledged $300,000 in matching grants for Campus 2020. The $300,000 JCA Matching Grant will be applied at 60 cents per dollar according to the following criteria:
In addition, for each dollar donated to Campus 2020 through a qualified Jewish agency or organization*, JCA will provide an additional 20-cent-per-dollar Matching Gift that will be paid directly to any qualifying agency/organization designated by the donor. JCA will fund this Matching Gift in FULL at the time the
donor makes the initial payment to Campus 2020.
* “Qualifying Agency/Organization” can be any Jewish organization, other than JFGO, that would otherwise qualify as a recipient of a loan or funding provided through JCA.
Q: How much is the debt?
A: The principal balances of the two loans that comprise the debt are $3,692,500 (3.75% interest) and $1,068,000 (2.45% interest), for a total of $4,760,500 as of December 31, 2015. A balloon payment of more than $2.4 million is due in April 2023. If the debt is not retired by then, JFGO will have to refinance it, thus extending campus debt obligations well into the next decade.
Q: If Campus 2020 is a success and the debt is retired, what assurances can you make that new debt will not be incurred?
A: As a condition of accepting certain matching grants for Campus 2020, JFGO has committed in writing that it will not borrow money for any capital improvements for the 10 years following retirement of the debt.
Q: Where did the debt come from?
A: As our community grew in the 1970s and ’80s, the demand for the programs and services offered on campus grew as well. The campus underwent a major expansion from 2002 to 2005, with construction of a new building for the Jewish Academy of Orlando (JAO) as well as renovations to Jewish Community Center (JCC) facilities such as the senior lounge and auditorium. Construction costs totaled $12.3 million. Existing mortgages and associated expenses, such as loan fees, interest and carrying costs on bonds, brought the total expansion cost to $13.86 million.
Q: Didn’t the Capital Campaign
cover the cost of expansion?
A: Not fully. Initial funding of the expansion resulted in a shortfall of $205,000, largely due to construction cost overruns. This amount was covered by JFGO. The capital campaign brought in pledges totaling $9.29 million vs. a total project cost of $13.86 million, a difference of $4.57 million. To make up that difference, campus agencies agreed to take on additional finance obligations through 2028. Finally, of the $9.29 million in capital campaign pledges, only $7.26 million was collected, a shortfall of $2.03 million.
The Jewish Federation of Greater Orlando is a 501(c)3 nonprofit organization. A copy of the official registration (CH326) and financial information may be obtained from the Division of Consumer Services by calling toll-free (1-800-435-7352) within the state or by visiting www.FloridaConsumerHelp.com. Registration does not imply endorsement, approval, or recommendation by the State.