Update: FSA Can Make Payments on Construction Bond

Fulton Science Academy's Angela Lassetter says Wells Fargo's demand is in attorneys' hands now. A payment agreement, new investor or selling the land for the proposed building are some possible solutions.

UPDATE June 28, 5:30 p.m.: Fulton Science Academy Board of Governors member Angela Lassetter said today the schools can pay back the $18.9 million in bonds.

Lassetter spoke about FSA's future as a private school, a school system audit report and her school's investigation and response to that report in an interview this afternoon.

Wells Fargo Bank, the bond investor, sent out a "Notice of Acceleration" on June 25 by certified mail to the Development Authority and the three schools involved: Fulton Science Academy (middle school), Fulton Sunshine Academy (elementary school) and Fulton Educational Services (Fulton Science Academy High School).

The bank's notice, sent by Virginia Anne Housum, a vice president for Wells Fargo, said the borrowers have breached the loan agreement, which puts the schools in default. The trustee demanded immediate payment of the $18.9 million bonds and interest by June 27.

Lassetter said the issue is in the hands of legal counsel now. She said several solutions are possible:

  • An agreement could be made with the investors over the bonds that may not include the soon-to-be private school.
  • FSA could sell the land on Fanfare Way intended for the new building planned for construction with the bond issue. Lassetter said the 44 acres is worth two to three times the purchase price and the market value will cover more than the approximatley $6 million already spent.
  • The land is worth two to three times the purchase price and its market value will cover more than the approximate 6 million already spent. Grading the land has prepared it for construction, making it a more valuable property, she said.
  • An investor could buy the property and still build a school on it, leasing it to FSA and the others schools for use.
  • Or another investor might come along and buy the bonds, setting up a repayment agreement with FSA and its partner schools–Fulton Sunshine Academy and Fulton Science Academy High School. This last solution would be ideal, because the school could still be built, she said.

"Part of the bond agreement required that we get a charter," Lassetter said. Local and state charter denial put the school in default.

Although the Alpharetta Development Authority approved the bond sale, this demand has no affect on the city.

"With respect to the Development Authority, a move by the investors to call the bonds has absolutely no impact on that body, the City, or our citizens.  By law the debt on the bonds is not an obligation of any of these parties and is solely the responsibility of the FSA schools," said James Drinkard, Alpharetta assistant city administrator.

He doesn't expect any changes in how the Development Authority proceeds with future bond applications. It's the responsibility of the involved underwriters and banks as well as the rating agency(s) that rate the issue to perform due diligence on the bond applicant. The Development Authority's due diligence is limited to is limited to ensuring that the intended use of the bonds is consistent with what's allowed under law and that it advances the economic development goals of the community, he said.

during mid-May and now bondbuyers are asking for the bond to be paid back. The school had .

The demand comes after months of complications for, which failed to get either a or a .

In the May BusinessWire release, Fitch said that lack of management cooperation left it unable to determine if the was feasible and its possible effects on the Fulton Sunshine Academy and . All three schools are obligated for the bonds.

Check back with Patch for updates to this story soon.

For related stories, see:

Karen M July 01, 2012 at 02:11 AM
I am not a teacher and never was a teacher. I respect 99.9% of the teachers. You are not in that 99.9 %. I am not surprised you were found to be not fit to teach. I would not want my kids to be tought by a bully who needs an anger management. Teaching requires love and compassion. I do teach that to my children everyday. You must had the 0.1% group for a teacher or a mother. You have been harrassing people and their wifes and children. What did those people do to you? You need to respect people's rights. You would be a perfect case for FBI to investigate for civil rights violation. You have been writing and writing and writing. This looks like a you are the man and the woman dancing alone. Unfornunately, I have to leave you alone. People communicate two ways. That is why it is called communication. You are like a broken CD scratching my ear. I will pray the Lord to give you peace and humanity.
MarkMunoz July 01, 2012 at 02:28 AM
Sure Karen whatever you say, and we ALL know that the only good education in the USA is taught by followers of a 5th grade educated Imam. Most of which cannot speak English or teach at all . But they sure know how to spin their Science Olympiads, Math Counts, Turkish Olympiad (of which THEIR schools only win at) in the news. Please go away before you embarass yourselves any more in this Country. Fulton County Board of Education and the Georgia State Board of Education disagree with you. That is why you are gone, gone, gone. I communicate the truth my friend and your thinly disgused "proverbs" are of no value to any one in this country not to mention you had your chance with the FBI - when they were in Georgia investigating YOU. You and your group are the ones that continue to violate human rights, there are about 1 dozen EEOC lawsuits on your schools. You don't get to choose in this country who is fit to teach and who is not. Your reputation doesn't give you the right for anything except to pay the loan back. Are you up for it? Or are you going to flake out on that too? Maybe you should call your private school Deadbeat Private School. No one in America will have peace until you are gone from grabbing and stealing our tax dollars. I will prah to Allah to give you the same.
Patrick Schowsky July 01, 2012 at 07:21 AM
Mark! Have you ever heard anything like Georgia CRCT or Blue Ribbon School? On FSA School's website it says best performing school on CRCT tests 4 years in a row in Fulton County Schools. And FSA School is the only blue ribbon charter school in the state of Georgia? Do these make any sense to you? it looks like Science or math competitions are extra achievements which are great for students. And you wrote "Please go away before you embarass yourselves any more in this Country" this is extremely rude. You should apologize for saying that. And you are talking about peace! First of all you should be calm In your heart. Even though you feel like you're right, this kind of talk is inappropriate. And do you really have friends? LOL
Bill July 02, 2012 at 06:49 PM
What does all that have to do with the price of meat in TimBuctu? You could tote all the rewards and ribbons you want. It still does not excuse the fact that you cannot operate a business and is very irresponsible when it comes to handling of public finds. It doesn't excuse the fact that the schools are operated as front to bring in more aliens from Turkey with an interest other than education. It doesn't excuse the idea for breaking the law when it comes to building permits etc. Now that the construction has halted and trees have been cleared you have a public eyesoar and mosquito hatchery infesting the neighborhood. Most of the awards granted to these schools came from other Gulen organisations anyways. Instead of waisting time here on the boards why not do something useful and try to figure a way of paying off the bank before they foreclose on you. .
66chevelle July 04, 2012 at 04:57 AM
Kellie, why would they teach your kid about a movement which they take great pains to deny any association with? Do you really think it would help in furthering their Byzantine scheming to have your son come home and tell you about the wonderful man named Fethullah Gulen? Gulen already has his adherents well-seeded among the staff and management of his schools. The Gulen cult's main thrust is the acquisition of power, not the indoctrination of students, and the acquisition of power comes through the looting of taxpayer money. The co-opting of local media in the furtherance of that goal is what you see on display in all its lurid desperation here in the comments. This is not to say that Gulenists eschew propaganda; Some FSA parents and students might be amenable to the notion, inherent in the subtle propaganda, the trips to Turkey, and the appeal for tolerance, that these are Muslims truly interested in dialogue. That may be true, but in the face of all the lies, subterfuge and manipulations inherent in their enterprise, are you willing to make that leap of faith?


More »
Got a question? Something on your mind? Talk to your community, directly.
Note Article
Just a short thought to get the word out quickly about anything in your neighborhood.
Share something with your neighbors.What's on your mind?What's on your mind?Make an announcement, speak your mind, or sell somethingPost something
See more »